09/23/2024
Real Estate Transactions Have Changed Forever—Here's What You Need to Know
For Buyers Working with a Buyer's Agent:
📝Mandatory Contract: Before any showings, you'll need to sign a contract agreeing to pay a negotiated commission to your buyer's agent.
🤑Commission Negotiations: When making an offer, your agent will typically request a commission concession from the seller.
🤕Potential Challenges: Sellers may view this commission as unnecessary, knowing you've already agreed to pay it. This can lead to more complicated negotiations and slower showings.
For Buyers Working Directly with the Listing Agent:
🙅No Pre-Showing Contracts: You won't need to sign a contract until you're ready to make an offer.
🆘Direct Assistance: The listing agent will help present your terms to the seller and handle all necessary paperwork, just like a buyer's agent would.
🔎Finding Listings: You'll source leads yourself using online platforms and local publications, and set up showings or attend open houses.
For Sellers:
🤷Commission Changes: Many brokerages, including eXp Realty, no longer offer compensation to buyer's agents. You'll only need to negotiate your listing agent's commission.
💸Offer Considerations: Some offers may include requests for you to cover the buyer's agent's commission from your proceeds—you can choose to accommodate this or not.
🧠Buyer Options: Buyers can submit higher offers to cover their agent's costs, potentially financing these expenses.
😎Market Shift: As the industry transitions from a buyer's agent-centric model to a seller's agent-centric one, you may have more power to achieve your desired price.
Why the Change?
The National Association of Realtors (NAR) settled a lawsuit aimed at eliminating buyer's agents due to unfair practices. The old system required sellers to pay a commission that was secretly marketed to buyer's agents—a practice deemed inappropriate. This change aligns the U.S. more closely with international real estate norms, where buyer's agents are rare.
Questions?
