REAL ESTATE UPDATE

How Buyer’s Agent Compensation Works Under the New Rules

One of the most common questions I get from buyers is, "How do I pay you?" With the recent changes to buyer’s agent compensation, the process may seem a bit different—but overall, these updates bring greater transparency and potential benefits for both buyers and agents.

Before August 17, 2024, the seller’s agent negotiated both their commission and the commission for the buyer’s agent, with both fees typically paid from the proceeds of the sale. While the seller’s agent commission structure remains largely unchanged—still negotiated with the seller and generally based on a percentage of the sale price—the process for buyer’s agents has shifted.

Under the new rule, which stems from a settlement with the National Association of Realtors, buyer’s agent commissions are no longer published. Instead, buyers must now sign a written agreement with their agent before touring homes, clearly outlining the agreed-upon compensation. When making an offer, buyers can request that the seller cover this fee. Many sellers still choose to do so, but this now depends on factors like market conditions, competitiveness, and the specifics of the offer.

One thing that hasn’t changed? My main goal is serving my clients. There’s no charge for emails, showings, or consultations—whether we see two homes or fifty. If you decide not to buy, no worries—I just ask that you keep me in mind for the future and share my name with friends and family. If you do purchase a home, you’ll be responsible for the commission we agree upon upfront—but rest assured, I’ll work hard to negotiate seller coverage whenever possible.

Have questions? Let’s connect! I’m here to help you navigate these changes and make the home-buying process as smooth as possible.