New Real Estate Commission Rules: Buyers to Pay Agent Fees

Real estate fees used to be paid by the seller, but as of August 17, 2024, buyers will be paying their agent’s fees. As a seller, you can choose to compensate the buyer’s brokers, but keep in mind these NAR guidelines:

Your agent must clearly disclose to you and get your approval for any payment or offer of payment that a listing broker will make to another broker acting on behalf of buyers;

This disclosure must be made in writing in advance of any payment or agreement to pay another broker acting on behalf of buyers, and it must specify the amount or rate of such payment.

If you choose to approve an offer of compensation, there are changes to how this can happen.

You as the seller can still make an offer of compensation, but your agent cannot include it on a multiple listing service (MLS). An MLS is a local marketplace used by both buyer brokers and listing brokers to share information about properties for sale.

You as the seller can still offer buyer concessions on an MLS. If you choose to compensate a buyer’s agent When the sellers set a listing price for the home, they usually take the real estate agent’s commission into account and consider it the cost of doing business.

Do you have to pay a real estate agent commission?

You can forgo the fee by selling or buying a home without an agent, but it’s important to note that agents are the experts in this scenario, working on your behalf while ensuring the process is as stress-free as possible.

Also keep in mind that real estate deals often take weeks, if not months though most agents won’t see a dollar of it until a property closes.

Can you negotiate real estate agent commission fees?

Commission standards can vary from state to state and among brokerages. Another option you can explore is a transactional agreement, in which the listing agent will help you set an asking price, facilitate communication between you and the buyer, write the contract, and move the process along to closing for a flat fee or lower commission but you won’t receive anywhere close to the agent’s full services. Not all agents offer transactional agreements, so you might have to shop around to find one.

What do closing costs cover?

Closing costs are the miscellaneous fees separate from the real estate agent fees that must be paid at closing. They cover the following things:

• Loan processing
• Title company fees
• Surveyor costs (if needed)
• Recording of the real estate deed
• Insurance
• Any taxes or homeowners association fees, which might need to be prorated if they’re already paid