08/19/2024
Sharing what an agent partner simplified for everyone:
If you’ve been watching news headlines and you want to know the real truth of it all…. Keep reading. If you plan on buying or selling real estate (ever) going forward, these points may be helpful.
🚫 Myth: real estate commissions have been set at 6%
✅ Fact: real estate commissions have been negotiable for the entirety of my career. What I charge has nothing to do with what others charge. We have options from 1% all the way to 10% - and have for over a decade.
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🏡 For buyers 🏡
🚫 Old way: you used to be able to call anyone to show you a house. And while they didn’t cover it with you every time… you seeing that house with them and asking questions and getting answers began in GA what was called implied representation and whether you signed anything or not, they could have been entitled to commission if you bought that house. They (not us) often threw in a true buyer listing agreement when you wrote your offer, because they were afraid to confront you early on and ask for your commitment. You were signing the same agreement…. Just later in the transaction with your offer.
✅ New way: you’ll interview agents, and actually agree (in writing) to hire the one you choose BEFORE looking at homes. You still have the right to fire them if you’re not happy, you still have all the benefits of representation, but you do go ahead and sign a document hiring them at the beginning. (Think of this like hiring an attorney - you interview, you hire, you sign paperwork! The great thing is, realtors only get paid WHEN they do the job 😉 )
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🏡 Sellers 🏡
🧐 Old way : you interviewed agents, hired the best one for the job, they negotiated their commission with you at your house prior to listing, and you and the agent decided what portion (if any) commission to offer to outside agents to bring you a buyer. Proceeds came out of the sale, so it comes out of the seller’s proceeds, but that amount is financed for 30 years with interest from the buyer - so in my opinion…. Both parties “paid” for the commissions 😉
✅ New way : nothing changed. Everything listed above is exactly the same.
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🤓 For agents 🤓
🚫 Old way: co-op/shared commission was clearly disclosed in the MLS.
✅ New way: co-op/shared commission is no longer clearly displayed in the mls. Agents will now need to communicate to find out if a co-op is being offered, or they will need to include their co/op commission request in their offer.
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🚫 Myth: commissions are going to be reduced.
✅ Fact : maybe in some markets…. But not today, not in this market where prices are high, interest is high, and inventory is high. Today we are leaning into a buyer’s market. It’s taking far more effort to sell a piece of real estate. Listing agents know their value and will be sticking to their fees, if not offering more value and charging slightly more to provide the service.
✅ Buyers are savvy today. They know they will be charged for a realtors commission if it’s not covered by the seller - so they will ask their agents to only show them homes that they can afford all the costs on (closing costs, sales price, taxes, concessions, commissions, everything!) - so be ready. Whether you offer it or not… they are either going to ask for it in the offer, or they just won’t come see the house.
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🚫 Myth for sellers: my listing agent will just show the house for me, to any buyers that call in.
🚫 Myth for buyers: I’ll just call the listing agent to see it instead.
✅ Fact: Listing agents reserve the right to set their fees for the moment they step into the work for the buyer that was not included in their listing representation scope of work. So this is not a guarantee for a seller to only pay a listing side commission. Not to mention… over 86% of home buyers choose personal representation. Which means you’re shutting out 86% of buyers (potentially) and only being open to 14% of buyers who may choose to call directly (ps - that 14% is usually investors, wholesalers , and your friends and neighbors you already know …. So it’s either a neighbor/friend, or it’s someone who’s going to offer way less than market value anyway).
✅ Fact 2: there’s a fine line between dual representation and customer representation in Georgia. Be aware that the listing agent may NOT offer dual representation, or customer representation on their listings due to the liability. They may open the door for you, but then require that you find someone to represent you outside of them to protect their livelihood. Not to mention… you’re financing the price of this house including the commission for the next 30 years. Do you really want to know that the only person that got paid in the deal was the person negotiating AGAINST you?
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Call me for any of your real estate questions! We are here to help you get a home! 🏡
Matthew Lord
Georgia Real Estate Salesperson
📞678-206-4555
📧 [email protected]
