As the real estate landscape continues to shift, some recent changes may have caught your attention. Two of the most significant updates—the removal of buyer agent compensation information from the MLS and the new requirement for buyers to sign buyer agency agreements—are raising questions. In this blog, I’ll do my best to explain how the local markets are reacting to these changes and why I believe they are good news for both home buyers and sellers.
Why Sellers Are Still Paying Buyer Agent Commissions
There’s a common misconception that because commission information is no longer listed on the MLS, sellers no longer need to offer a commission to buyer agents. However, the truth is that it’s still in the seller's best interest to cover this commission, and since these changes have gone into effect, we’ve seen that most home sellers agree with this approach. Here’s why:
As a seller, offering to cover the buyer's agent commission can help attract more potential buyers. This expense becomes part of the closing costs, which buyers can include in their mortgage, lowering the amount of upfront cash they need. By making your property more financially accessible, you're likely to increase interest, speed up the sale, and potentially achieve a higher selling price.
How Buyer Agency Agreements Benefit You
For buyers, signing a buyer agency agreement upfront might feel like an extra step or even a bit uncomfortable at first, but it can actually offer significant advantages. These agreements are highly flexible and can be tailored to fit your specific needs.
By committing to an exclusive relationship with an agent, the buyer provides the agent with the assurance of compensation for their efforts. This allows the agent to focus on a smaller number of clients, ensuring a more personalized and dedicated home search. In addition to accessing homes listed on the MLS, the agent can leverage their network to discover off-market opportunities, such as upcoming listings or properties where owners are open to selling. This approach maximizes the chances of finding the perfect home.
In today’s competitive market, this is a major advantage. Additionally, the agency agreement ensures the agent is working 100% on your behalf, providing transparent advice and guidance at every step
The real estate market is always shifting and I’m here to answer any questions you might have about these updates and how they affect you. And of course, I wish you a very happy Fall season!
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