Buyers' real estate agents must now have a written agreement with their clients before showing homes, clearly stating compensation terms. This ensures transparency and avoids surprises during the process. However, no agreement is needed for general inquiries or open house conversations. Before August 17, 2024, sellers typically paid both the buyer’s and listing agents' commissions, usually splitting the total fee. Now, it’s important to confirm whether the seller will cover your agent’s fee or if you, as the buyer, will be responsible. Compensation Listings on MLS Also beginning August 17, 2024, offers of compensation can no longer be listed on multiple listing services (MLS); these are centralized databases used by real estate agents to share information about homes for sale. Compensation can still be listed elsewhere or discussed directly with your real estate professional. What Are Your Options for Paying Your Agent’s Commission? As a homebuyer who now may be required to cover your buyer’s agent’s commission, you have a variety of options. Cash. After negotiating and determining the commission amount, you may choose to pay your agent's commission in cash. This would be paid as an additional closing cost. Reduce Your Down Payment Amount To cover your agent’s commission, you could reduce your mortgage down payment amount. For example, let’s say you were planning on putting 10% down on your home and you negotiate a 3% commission for your Realtor. You could put 7% down, and re-allocate that additional 3% toward the buyer’s agent commission.
Your loan originator can discuss different scenarios and ways to
7
Powered by FlippingBook