Published July 10, 2024
Do I Still Need to Pay the Buyer’s Agent’s Commission?
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Three reasons why you should still pay a buyer’s agent commission.
The recent NAR lawsuit changed how buyer’s agents get paid, and many are wondering whether they should still pay the buyer’s agent’s commission. Today, I’ll discuss some of the elements of these changes that might be confusing and explain why offering a commission is still a smart move when selling your home.
First, I’ll give you an overview of what happened in the NAR lawsuit. A court recently ruled that the old way of paying buyer’s agents was illegal. Meaning, buyer’s agent commissions are now negotiable. With that, the big question is: Should you still offer to pay a buyer’s agent commission when selling your home? I say yes, and here are three good reasons why.
1. Set a rate upfront to avoid negotiations. As mentioned earlier, buyer’s agent commissions are negotiable. However, if you’re setting a rate upfront, you can avoid having lengthy negotiations only to end up paying more. These negotiations could slow down or jeopardize the sale of your home. It is better to be clear about what you’re willing to pay right from the beginning.
"Even if the rules have changed, offering a buyer’s agent commission is still a good idea. "
2. It helps your home sell. Just like how you look at similar homes to decide on a price for your house, you should also look at what other sellers are offering for buyer's agent commissions. Offering a competitive rate shows buyers and their agents that you're serious about selling. This could help your home sell faster. However, don’t make the rate too high to avoid paying unnecessary fees. Make sure to work with your agent when looking at and setting competitive rates.
3. Offering no commission comes with risks. You might think it's smart to offer no commission and negotiate later. But this can actually turn buyers and their agents away from your home because their agent isn’t being compensated for their representation. In fact, homes listed with no buyer's agent commission often sell for 10% less than homes that do offer a commission. It is best to offer a buyer’s agent commission to avoid selling your home for less. Plus, homes that offer a commission usually sell faster.
Hopefully this clears things up a bit for you. Even if the rules have changed, offering a buyer’s agent commission is still a good idea. If you have any questions or want to know what a good commission rate is in your area, feel free to reach out to me. You can text or call me at (360) 868-8648 or send me an email at jason@munozhomegroup.com. I’m here to help.
