Real estate has been in the news a lot lately due to a recent settlement in which the National Association of Realtors agreed to make some changes.
- The first change is the real estate agents who list a home on any of the databases affiliated with the NAR are no longer allowed to include offers of compensation for a buyer’s agent.
- The second change is that buyer’s agents will need to enter into a written agreement with the buyers they represent.
The reason this settlement has garnered so much attention is that people are wondering how the buyers will pay their agent—especially first-time home buyers.
The answer is that it will vary from transaction to transaction. Some sellers will choose to negotiate the buyer’s agent compensation outside of the MLS listing. Other sellers may offer a set amount to the buyer who can then use that money to pay their agent (or even buy down their interest rate). And buyers may have to pay out-of-pocket for buyer’s representation.
No matter how this is negotiated, rest assured, our buyers will always receive the same high level of advice and representation. We know that buying a home can be stressful and often the most significant financial transaction of your life.