You've no doubt seen national headlines on the topic of buyers' agent commissions, and there will be some necessary changes to the industry as a result. The one that we're looking most forward to is an increase in transparency! Who pays who how much, and for what service?
For now, as Zip Code East Bay Broker Josh Dickinson said in the most recent SFGATE article: "It’s going to be messy for a while..."
Here is what is currently happening:
1. Commissions are negotiable, as they always have been! There has never been a predetermined fixed fee to sell a home (at 6% or any other number), and the market will continue to determine what to pay real estate professionals for their expertise in listing homes and/or representing buyers.
2. I am encouraging my sellers to continue offering compensation to the buyers' broker, which is paid out of closing through the purchase price. The way commissions are paid is likely to change, whether it becomes a credit from the seller, payment offered outside of the MLS, or even some cost-shared compensation between parties. For now, my sellers are offering fair market compensation to the listing and buyers' agent, and my spring listings have performed very well with record sales across a variety of price points. Low inventory is continuing to drive price appreciation!
3. We are communicating our value to our buyer clients, as well as running through possible compensation scenarios if and when changes occur this summer. A market research study by T3 Sixty estimated that a buyers' agent spends an average of 184 working hours with their buyers: from the initial meeting, analyzing disclosures, education on forms and market trends, negotiations and ultimately closing...as well as everything in between! We'll begin seeing more Buyer Representation Agreements, which outlines the relationship and compensation for buyers and their agent.
Please stay tuned as we enter into this "messy" phase, with more updates to come!
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