09/05/2024
Good day real estate enthusiasts. It has been a little while since I have put out little snippets of knowledge. You can decide if it is wisdom or not.
With the lawsuit "settled" Buyers are now wondering "how can i buy a house without having to pay an agent?" Well, its simple. Find an agent who is willing to clearly explain how the new process works. All agents must have a signed agreement in place before they can show you a property virtually or in person. The agreement also specifies buyers agent compensation. The Buyer may have to pay OR make up a difference between the Sellers compensation to the Buyers Agent/Broker and the amount agreed to on the Buyers Representation Agreement. Okay, so since the Buyers compensation is no longer in MLS, does this mean the Seller is not offering Buyers compensation?
Not necessarily. The listing agreement, which Buyers are not a party to, will/should (ours does) state Listing Brokerage compensation and separately the Buyer Agent/Broker compensation. Now we, as Buyers Reps, have to make a phone call to the Sellers agent and ask what, if any, compensation is being offered to the Buyers Agent/Broker. In doing so, we would notify our Buyer that number and then move forward with the showing.
If an offer is tendered for a property that is lower than the agreed upon amount in the Buyers Rep Agreement, the Buyer and Buyer Rep can renegotiate their agreement, ask the Selling Broker to increase the compensation or ask the Seller to increase the compensation.
At the end of the day, am I willing to forego a 2% compensation with a Buyers Rep Agreement at 3%? I would say that we should discuss this.
There is absolutely no obligation of a seller to offer any compensation whatsoever to the buyers representation. This has always been the case, BUT if you want to sell a property and offer no compensation to a Buyers Representative, do you think that is the best strategy to sell a property?
Lastly, one small thing for Buyer’s to know is Buyer’s do not have to have a Buyers Rep Agreement to walk into an open house. Happy house hunting.
Call now to connect with business.