soon come to realize this lawsuit created all kinds of problems that could drastically hurt the housing market. Of course there will still be more sellers than not who will still offer the buyer agent fee because they don't want to limit the amount of buyers who can purchase their homes. Even with those options, some buyers may still need to come up with some money to make sure their agent gets paid what they are due as in many cases it can be months of showing homes, submitting offers, preparing paperwork, negotiating, arranging inspections and the list goes on and on. As part of the lawsuit settlement, which went into effect August 17, 2024, buyers are now required to sign a buyer agent representation agreement that that spells out the agent's fee and what each party's responsibilities are. In any case, this will be an important discussion to have with your agent to make sure everyone is on the same page as to how your agent will be compensated. Also, no realtor can show ANY property to any person until this buyer agency agreement is signed. Most of us are in the business to help people, so it is not just about the money. You should also understand that we (the individual agents) do not get that full 2.5% or whatever the percentage ends up being as a commission. We must share that with our brokerage so we only end up getting a portion of that commission. Also, because we are considered self-employed, we have to pay additional self-employment tax on the net commission as well as cover all of our expenses. We don't see a penny of commission until the deal closes and that can be months or even years of showing homes submitting offers etc. for a buyer before they find one they like and actually get it under contract. Some of these buyer agency agreements starting in August may also require buyers to pay their agents upfront and ongoing for showings, drawing up paperwork, negotiations and so on. Every agreement is different and every fee is negotiable. I have prepared a comprehensive HOME BUYER GUIDE that
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