Sellers’ guide to understanding the pros and cons of paying buyer’s fees.

 

With all the hype in today's news about the National Association of Realtors settlement and agent commissions, it’s easy to be confused. That’s why today, I will answer the question that’s on every seller’s mind: Should sellers still pay buyer’s agent’s commissions? The simple answer is yes, and here are three reasons why:

 

1. Setting a rate upfront avoids negotiations. If sellers don’t set the rate you're willing to pay a buyer's broker upfront, it will become part of the negotiation process which can sometimes be challenging and time-consuming. However, by stating upfront that you are willing to pay a certain percentage for buyer representation, you simplify the negotiation process and make your property more attractive to buyers.

 

2. Offering a competitive rate will help your home sell. Offering a competitive commission to a buyer's broker opens your home to more buyers as buyers won’t have to worry about setting aside extra funds or negotiating broker fees themselves, which makes your listing more appealing. Ensuring that buyer's representatives know they will be compensated fairly can significantly expand your potential buyer pool and make your listing more competitive.

 

3. Offering no commission to buyers comes with risks. With the new NAR settlement, buyers’ representatives are required to have a buyer-broker agreement signed before showing homes. This means that if the seller does not offer to pay the buyer's broker, the buyer is legally obligated to do so. If your home is at the top of a buyer's price range, having the buyer pay the broker's fee might put your home out of reach financially. While you technically have the option to offer 0% commission, it is not advisable because it limits the number of buyers who can afford your property and makes your home less attractive in the market.

 

Paying a buyer's broker commission when listing your property ensures your home remains visible to the widest possible audience, simplifies the negotiation process, and keeps your property competitively priced. If you have any questions or if you’re considering selling your home, reach out to me by calling 505-603-2435. I look forward to talking with you!