An in-depth explanation of the key benefits of paying buyer agent rates.
Are you considering selling your home and wondering if you should still pay the buyer’s agent commission? The lawsuit against the National Association of Realtors has challenged how buyer’s agents get paid, leaving many sellers confused. A court recently ruled that the traditional structure of buyer’s agent commissions was illegal and needed to change.
While buyer’s agent commissions have always been negotiable, the upcoming changes in the market mean sellers may offer not to pay any of the buyer’s commission at all. This raises an important question: Should you still offer to pay the buyer’s agent commission when selling your home? In my opinion, yes, and here are three key reasons why:
1. Setting a rate avoids negotiations. Since buyer commissions are negotiable, it’s best to agree on a rate before negotiations begin. If you wait until closing to settle the buyer commission rate, it could become a sticking point that slows down the sale or jeopardizes the transaction altogether. You might even end up paying more just to satisfy the buyer and their agent. To avoid this, I recommend communicating upfront what you’re willing to pay, which will prevent confusion and unnecessary negotiations.
“Buyers may avoid your home if they believe their agent won’t be compensated.”
2. Offering a competitive rate helps your home sell. A competitive commission rate signals that you are serious about selling your home, which can attract more buyer’s agents and reduce your time on the market. Work with your agent to find a balanced rate that isn’t too high nor too low, and look at similar rates in your market area.
3. Offering no commission to buyers comes with risks. Listing your home with a 0% commission doesn’t mean you’ll avoid paying buyer commissions entirely. Buyers have a tight budget, so they might avoid your home if they believe their agent won’t be compensated. Additionally, offers presented will likely include a commission for the buyer’s agent, which will then be negotiated and included in the final sale price.
Navigating these changes can be confusing, so if you have any questions, please feel free to contact me at ted.holmes@raveis.com or call 914-548-6179. I would be more than happy to walk you through the home-selling process. I look forward to hearing from you!
