One common question buyers ask when entering the real estate market is whether they are responsible for paying their agent. Traditionally, many sellers have covered both the buyer’s and seller’s agent commissions, but recent changes in the real estate industry following the NAR settlement have shifted the dynamics. Now, buyers must agree to their agent’s fee in writing before touring homes, and it’s becoming more common for buyers and sellers to negotiate who covers the buyer’s agent fee as part of the offer. Understanding how these changes impact the buying process is crucial for navigating today’s real estate market.
In this Redfin article, we’ll break down how buyer’s agents get paid and what buyers should expect in today’s evolving real estate landscape.
How does a buyer’s agent get paid?
Traditionally, many sellers have paid commissions to both their agent (the listing agent) and the buyer’s agent. However, as of August 17, 2024, buyers must agree to their agent’s fee in writing before touring homes. These recent changes make it more common for buyers and sellers to negotiate the buyer’s agent fee as part of the offer. Buyers can still request that the seller cover the fee, but it’s no longer guaranteed. Sellers will discuss compensation with their listing agents, and the final decision will depend on negotiations between both parties.
How is Redfin different when it comes to commissions?
At Redfin, we’ve always believed that consumers should get the best deal. Our fees when serving buyers vary by market, but are competitive because we know they could make the difference in your winning or losing an offer.
We also offer additional savings for buyers who make a commitment to hire us after the first tour. With our Sign & Save program, if you commit to hiring your Redfin agent before the second tour, we’ll reduce our fee by 0.25%. We earn customers’ business by providing the best service and value.
Can buyers be asked to pay their agent’s commission?
Yes, buyers can be asked to pay their agent’s commission, either partially or in full. Commissions are fully negotiable, and the recent changes in the real estate industry have made it more common for buyers and sellers to negotiate the buyer’s agent commission as part of the offer. Buyers can still ask the seller to contribute to or cover the fee, but it’s not guaranteed and depends on the terms agreed upon between both parties.
What to expect as a buyer
As a buyer, be prepared for the possibility that agent fees could become part of your negotiation. While some sellers may still cover the buyer’s agent commission to stay competitive, this is no longer a certainty. Each transaction will vary, so it’s important to stay flexible and discuss these details with your agent. Working with a knowledgeable real estate agent can help ensure you’re getting the best possible outcome for your home purchase.
The NAR settlement primarily applies to listings on an MLS, and MLS rules may vary. Rules regarding listings not on an MLS also vary widely from state to state. Talk to your agent to learn more.
The post How Do Buyer’s Agents Get Paid? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
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