Thinking of buying a home with the help of a real estate agent? You can no longer take it for granted that a seller will cover the cost of your agent’s commission. Home sellers have traditionally offered a blanket commission to a buyer’s agent when they listed their home on the market.
FILE - A for sale sign stands outside a single-family residence on the market Wednesday, May 22, 2024, in southeast Denver. LOS ANGELES — Thinking of buying a home with the help of a real estate agent? You can no longer take it for granted that a seller will cover the cost of your agent’s commission.
They boil down to two significant changes: Blanket offers of compensation on behalf of sellers to buyers’ agents will no longer be included in listings posted on the MLS, though they can still be made through other means. And homebuyers will be required to sign detailed representation agreements when they hire an agent.
Generally, an agent who represents a buyer typically receives around 2.5%-3% commission based on the purchase price of the home. Agents then share part of their commission with their brokerage. One home shopper she spoke with was put off by the changes and the prospect of covering an agent’s fees, she said.
To address this, homes listed on an MLS will no longer include a seller’s offer to cover the cost of a buyer’s agent’s services. However, they will still be allowed to advertise them practically anywhere else, including the agent’s own website, a display at an open house, or when communicating directly with an agent representing a prospective homebuyer.
In a sluggish housing market where homes are taking longer to move and sellers are having to lower prices, it’s more likely that a buyer will be able to negotiate for the seller to cover their agent’s commission. In a hotter market, where properties are selling fast and receiving multiple offers, sellers will have the leverage to accept an offer from a buyer who isn’t asking for them to cover their agent’s fees.
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