08/18/2024
As a local real estate agent serving our beautiful Sierra Foothills, and El Dorado County, I can help you stay informed about how the nationwide changes in commissions transparency, effective this weekend might impact YOU as a buyer, or seller.
Traditionally, home buyers haven't paid any sales commission directly. Instead, the buyer’s agent was compensated by the seller, typically receiving half of a 5% or 6% commission nationwide. One factor that has kept these commissions high is the practice of advertising these rates on the Multiple Listing Service (MLS), the computerized catalog of homes for sale. Sellers who tried to offer a lower commission often found their homes received less attention from buyer’s agents.
However, starting this weekend, a significant change is taking place due to a legal settlement. As of August 17, commission offers will no longer be listed on the MLS. This shift means that any shared commission will now have to be negotiated on a case-by-case basis. Some sellers might even question why they should pay the buyer's agent at all.
While it might still be in the seller’s interest to compensate the buyer's agent to attract more potential buyers, if sellers choose not to pay, the responsibility may fall on the buyers. This change could be particularly challenging for first-time buyers who are already stretched thin with down payments. Despite the initial discomfort, this shift is expected to bring more clarity and transparency to the process, ultimately benefiting all parties involved.
It’s also advised that both buyers and sellers negotiate commissions upfront, ideally in dollar terms rather than as a percentage of the sales price. Another new requirement starting this weekend is that buyers will have to sign an agreement with their agent before touring any home. It’s crucial to read this agreement carefully, and if there’s any uncertainty, it’s okay to decline and seek another agent.
These changes are expected to lead to more competitive pricing in the real estate market, which could ultimately save home buyers and sellers billions of dollars annually in lower commissions. Although it may take time for everyone to adjust to this new landscape, the end result is likely to be a more transparent and flexible real estate market, with more options available to consumers.
______
Feel free to reach out to me with any questions. I am always available to offer assistance and ensure that your real estate journey is smooth and informed as possible. Together, we can navigate the process and find the best path forward for your real estate needs, whether you are the buyer OR the seller. I look forward to assisting you!
AmericanHeritageLandAndHomeCA.com.
Shirlree George | American Heritage Land And Home Inc
6276 Main St #126 Georgetown CA 95634
Call, or text, (530) 334-0369.