Navigating the world of real estate as a buyer can be a daunting task, especially when it comes to understanding who covers the costs of your agent. With recent changes following the NAR settlement, the dynamics of agent commissions have shifted, and buyers are now required to agree to their agent’s fee in writing before touring homes. In this ever-evolving real estate landscape, it’s important to grasp these changes for a smoother buying process.
How buyers’ agents get paid:
1. Previously, sellers typically paid commissions to both their listing agent and the buyer’s agent. However, since August 17, 2024, buyers must agree to their agent’s fee upfront. This new norm makes it common for buyers and sellers to negotiate the buyer’s agent fee as part of the offer. The final decision on who covers the fee will be determined through discussions and negotiations.
Redfin’s approach to commissions:
1. Redfin aims to ensure consumers get the best deal possible. The commission fees for buyers at Redfin vary by market, but they are competitive to give you an edge in securing your dream property.
- Additionally, Redfin offers extra savings for buyers who commit to hiring them after their first tour. Through the Sign & Save program, if you decide to hire your Redfin agent before the second tour, the fee will be reduced by 0.25%. Customers’ satisfaction and value are what drive Redfin’s business model forward.
Can buyers be asked to pay agent commissions?
1. Yes, buyers can be requested to pay either part or all of their agent’s commission. The recent industry changes have made it more common for buyers and sellers to negotiate these fees as part of the offer process. While buyers can still ask sellers to cover the commission, it’s no longer a guaranteed aspect and is subject to the terms that both parties agree upon.
What to expect as a buyer:
1. As a buyer, anticipate that agent fees could now be part of your negotiation process. While some sellers may still cover the buyer’s agent commission to stay competitive, this is not guaranteed. It’s important to stay flexible and discuss these details with your agent to navigate these changes effectively. Partnering with a knowledgeable real estate agent is essential to ensure the best outcome for your home purchase.
Remember that the NAR settlement primarily influences listings on an MLS, and MLS rules can vary. Rules for listings not on an MLS also differ widely from state to state. Consult with your agent to gather more insights and make informed decisions.
In conclusion, by understanding how buyer’s agents get paid and the implications of recent changes in the real estate industry, buyers can make more informed decisions when entering the real estate market. Stay informed, stay flexible, and work closely with your agent to secure the best possible outcome for your home purchase.
