They’re saying this is necessary because of the new law that passed and he wants me to sign one for every single house we view together. Is this standard? I’ve never heard of this in my life.
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It starts on 8/17/24.
The new rule means that buyer’s commissions have to be negotiable. Most listings still have the seller covering the commissions, but the wording has changed. Instead of lowering commissions, it’s more about making sure everyone knows who’s paying what.
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Correct, and if you see a listing is not paying your agent, it means they agree that their house should be priced 3% less than what they are currently asking.
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Not necessarily. Some listing agents have adopted the strategy of not offering SA comp upfront to see what is offered and how it is structured.
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There’s some early info that suggests selling agents might actually be making more money because of this new rule. Now, the selling agents are setting their own value for the buyer, instead of the listing agent deciding that value with the sellers.
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Now, if the seller doesn’t give the full 3% commission, you’ll have to make up the difference. I’m not sure what your budget is for a house, but if it’s a big amount, that 3% can add up. Unless you really want to work with a specific realtor, I’d suggest going with whoever offers the lowest percentage. Buyer’s agents usually don’t do enough to justify that 3% unless the home price is on the lower side.
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The agreement is required, the rate is negotiable. How much are these listing brokerages/sellers offering?
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How would I know what percentage the seller is offering the buyer’s agent? I don’t know how to find out that information.
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It’s not always in the Zillow/online listing, but it should be clear on MLS along with disclosures, which you can look at with/through your agent.
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This is the new normal. The lawsuit settlement has some unfortunate features for buyers now, especially first time buyers.
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