Dear Seller,
With the new real estate law now in effect, the process of compensating a buyer’s agent has changed. As a seller, you have several options when it comes to handling the buyer’s agent’s commission. Here’s what you need to know:
Why Compensation Matters
Buyer’s agents play a crucial role in real estate transactions. They bring qualified buyers, handle negotiations, coordinate inspections, and guide their clients through the entire purchase process. Since they are doing half of the work, they need to be fairly compensated for their services.
Seller Options for Compensating a Buyer’s Agent
Offer a Commission as a Seller Incentive
While commissions are negotiable, many sellers still choose to offer a buyer’s agent commission as an incentive to attract more potential buyers. This can be included in the listing agreement and disclosed upfront.
Negotiate Commission in the Purchase Agreement (Recommended)
We often recommend negotiating the buyer’s agent’s commission within the terms of the purchase agreement. This allows flexibility and ensures fair compensation while keeping the focus on securing the best deal for your home.
Buyer Pays Their Own Agent’s Commission
Some buyers may choose to pay their agent directly, just like they would for other professional services. However, this could limit the pool of buyers interested in your property, as not all buyers are prepared to cover this cost out of pocket.
Split the Commission Between Buyer and Seller
In some cases, the buyer and seller may agree to share the cost of the buyer’s agent’s commission. This option ensures fair compensation for the buyer’s agent while also reducing the financial burden on either party.
Why Offering Compensation Can Benefit You
Attract More Buyers – Many buyers expect their agent to be compensated for their services, and offering a commission can increase interest in your property.
Smoother Negotiations – A structured commission agreement helps streamline the closing process.
Faster Sale – Homes that offer buyer’s agent compensation often see quicker sales and competitive offers.
If you have any questions about these options or how they may impact your home sale, we’re here to help! Let’s discuss a strategy that works best for you.
