What Real Estate Companies/Agents May Not Want You To Know...

Traditionally real estate sales were handled by:
  • An agent- brokerage was hired whose purpose was to market/sell your home for a set commission (5-6%) of the net sales.
  • The agent would post the Multiple Listing System (MLS) your home for sale and place a cooperating commission to any buyers’ agents who bought the home upon closing.
  • If a sale occurred between seller and buyer, then the listing agent would share the commission 50% /50% or thereof.
  • At times when hiring a real estate agent to sell your home you  negotiated a lower commission with the agent say 5% and they would split it 50/50
  • Buyers of your property had to pay $0.00 to the buyer agent they hired to represent them (you paid the commission of both agents)
So how do the new changes affect me as a seller?
  • You should no longer have to pay the buyers fee to their agent from your equity(optional)
  • Every agent who represents a buyer must now have a buyer-agent contract signed before showing a house and it must contain the commission the buyer will pay to its agent.
  • Buyer Agents may attempt to have you pay their fee again on behalf of the buyer through negotiation. (allowed)
  • You may choose not to pay anything to the buyer or agent, but could in turn offer an incentive fee to the buyer but not the agent.
  • The buyer agent fee may be paid by the seller for the buyer if agreed to by the seller in the contract.

 

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