How does the Buyer’s Agency Commission change effect you as a Buyer?
If you are a Buyer here is the breakdown of what you need to know:
-
Signing a Buyer’s Agency Agreement with your Agent/Advisor is now a REQUIREMENT! If you are working with an Agent and have not signed an agreement you are not being properly represented per the law.
-
Negotiating a Fee For Service - you have the right to negotiate what you pay your Agent. This can be a flat fee or a percentage depending on the Agency you are working with. Beware of the Agent who tells you the Seller will pay and misrepresents what the new laws require. You are responsible for the commission, period.
-
You can ask the Seller to include your Buyer’s Agency Commission in the purchase of the home. How do you do this? You sign a form that can be submitted with your offer that requests the Buyer’s Agent Commission to be included in the purchase price being offered and the Seller to pay at closing.
-
What happens if the Seller says no or will not pay for all of it? Then you are responsible for the fee/commission all or in part. However, this can be rolled into your mortgage amount just like any other closing costs. Or, you can write a check at closing.
Please keep in mind that some Sellers are still offering to pay for some or all of the Buyer’s Agent’s commission. Your Agent will discuss this with the Seller’s Agent before you submit an offer.
However, if they are not willing to pay, you will need to know ahead of time in order to anticipate how you will present an offer. You don’t want to leave these conversations until you have already found the home of your dreams and then have to make a decision under pressure. A good Agent/Advisor will discuss this with you at your first or second meeting so you understand the process and your rights as a consumer. Knowing up front will assist in a smoother transaction and a better experience overall.
Our Advisors are well educated on how to negotiate on your behalf. Working with us is the best first step you can take.
