Under the new settlement proposed by the National Association of Realtors (NAR), sellers are no longer required to automatically pay the commission of the buyer's agent. Instead, commissions are now more flexible and negotiable, meaning that buyers and sellers can discuss and agree on who will cover the buyer's agent's commission. This change is intended to create more transparency in the real estate process and give all parties greater control over their financial obligations.
Sellers may still choose to offer compensation to the buyer's broker, but it is not a requirement under the new rules.
If you are a seller and have any queries regarding the implications of this new agreement on you, we recommend seeking advice from your real estate agent or visiting the National Association of Realtors website for further details. Should you require additional assistance, feel free to contact me at 619-453-4513. I am always available to take your call.
Real estate commissions have traditionally been open to negotiation. In California, there existed a standard practice where the seller paid a commission to the listing broker, who then shared a portion of that commission with the buyer's broker. The specific percentage of commission allocated to the buyer's broker was determined through negotiation between the listing agent and the seller at the time of signing the listing agreement. Depending on market conditions, the seller had the option to incentivize the buyer's broker by adjusting the commission amount higher in a buyer's market or lower in a seller's market. The commission designated for the buyer's broker was prominently displayed on each listing.
Effective on August 17th, 2024, the commission percentage due to the buyer's Broker can be negotiated between the buyer and their real estate agent. However, the responsibility of paying the agreed-upon commission for the buyer's Broker lies with the buyer's broker to discuss and settle. The buyer's agent may request the seller to cover the full commission, a part of it, or the buyer themselves can take care of it.
Now more than ever, in today's fast-paced and complex real estate market, the role of a professional Realtor is indispensable. With the constant fluctuations in property values, changing regulations, and evolving market trends, having a knowledgeable and experienced Realtor by your side can make a significant difference in the success of your property transactions. A professional Realtor brings a wealth of expertise, negotiation skills, and industry insights to the table, guiding you through the entire buying or selling process with confidence and precision.
By hiring a professional Realtor, you can tap into their extensive network of contacts, including lenders, inspectors, contractors, and other real estate professionals, which can streamline the process and ensure a seamless transaction. Their market knowledge allows them to accurately price your property for sale or negotiate the best deal when buying, maximizing your financial outcome.
A professional Realtor acts as a trusted advisor, offering valuable guidance and support at every step of the way. They can provide you with valuable information on market trends, neighborhood dynamics, and potential investment opportunities, empowering you to make informed decisions that align with your goals and preferences.
The decision to hire a professional Realtor is not just important; it is crucial in today's real estate landscape. Their expertise, resources, and dedication can help you navigate the complexities of the market, protect your interests, and achieve your real estate objectives with confidence and peace of mind.
Find further information in the article I penned for the Coronado Times
Feel free to reach out to me for guidance.
Raquel Fernandez,
Broker Associate
Coronado Shores Co.
Cell:619-453-4513
BRE#01945891
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