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Confused about whether you should still pay the buyer’s commission when selling your home? In case you haven’t heard, the real estate world has recently been turned upside down. A lawsuit against the National Association of Realtors challenged the traditional way buyer’s agents are paid, leaving many people confused. This raises the question: should you still offer to pay buyer’s agent commissions when selling your home? In my opinion, it’s still a good idea. Today, I will share with you the three key reasons why:
1. Setting a rate upfront avoids negotiations. Since commission rates are negotiable, it’s best to agree on a rate upfront. Waiting until closing to negotiate the buyer’s commission rate will slow down your sales process and jeopardize the transaction altogether. By taking this route, you may end up paying more just to keep the buyer and their agent happy. By being upfront about what you’re willing to pay, you can avoid unnecessary confusion and lengthy negotiations.
2. Offering a competitive rate will help your home sell faster. Just as you compare similar homes in your market to determine your listing price, you should also look at the current buyer’s agent rates to decide on your commission offer. A higher rate can signal to buyers that you’re serious about selling, and they will be able to bring in more buyers to view your home. However, you have to be careful—setting the rate too high means you might pay more than necessary. Work with your agent to find a rate that’s just right—not too high, but competitive enough to attract buyers.
3. Offering no commissions brings risks. You might think that offering zero commission is a good move, but this approach may not be in your best interest. Offering zero commission doesn’t mean you won’t pay any buyer compensation. Most buyers are on a limited budget, and will likely avoid your home if they think their representation won’t get paid. What will happen instead is you’ll end up negotiating at closing, which can lead to a prolonged process and potentially higher commission costs than if you had set a reasonable rate from the start.
Buying or selling a home is a tedious, lengthy process, which is why sellers and buyers opt to pay for representation. If you’re worried about costs, don’t worry because I offer a flexible menu of commission options for affordable representation costs that will suit any budget.
So, if you have any questions about agent commissions and real estate, call (602) 793-8627 or email kaludio.tuku@kw.com. I would be more than happy to walk you through the home selling or buying process. I look forward to hearing from you!
