Selling your house? A key question is who pays the buyer’s agent commission. Traditionally, sellers covered the buyer’s agent commission. However, the recent NAR legal settlement has opened the door for further negotiation. While all realtor commissions have been and continue to be negotiable, sellers will still establish a fee with their listing agent(in their listing contract) that typically equates to a percentage of the sale price. This fee can include an amount paid to the buyer’s agent. There are several reasons why sellers might choose to cover a buyer agent’s commission despite it not being mandatory. Below, we walk through some of the benefits.
Wider Net, Bigger Catch: By covering the commission, you open your property to a larger pool of potential buyers. This is especially helpful in competitive markets where more interest can drive up offers.
Price Advantage: When buyers don’t need to factor in an agent’s fee on top of their down payment and closing costs, they might be more willing to offer a higher price for your home.
Speedier Sale: A larger pool of buyers translates to potentially faster offers. Eliminating the time buyers spend calculating extra costs associated with paying their agent.
Smoother Negotiations: With the commission issue off the table, negotiations can focus solely on the property price and other transaction details, simplifying the process for everyone.
Building Trust: Sellers who cover the commission are often seen as more flexible and cooperative, attracting serious and qualified buyers.
Avoiding Dual Representation: Your listing agent works for you, and their priority should be getting you the best deal. If buyers pay their own agent’s commission, it might affect their ability to negotiate or offer the best price. Buying your home may mean they have no buyer’s agent and potentially are unrepresented. While agents have a fiduciary responsibility for all parties, most agents would prefer, and sellers should too, that agents aren’t negotiating on both parties’ behalf. This minimizes potential legal issues post-close.
By covering the buyer’s agent commission, you’re investing in a smoother, faster, and potentially more profitable sale. So, consider it an expense that could lead to a bigger return! Real Estate is a changing landscape! Click here for the latest news on the results of the NAR settlement.
