Choosing an Agent…
You’ve heard about the lawsuits and the media has provided you with half-truths. Commissions have ALWAYS been negotiable between the Seller and the real estate company.
The Designated or Principal Broker is responsible for setting the policies of the company which includes the desired pay-for-work for the listing company, with a percentage of that amount offered to the buyer’s agent for bringing in a buyer. Some brokers allow their agents to negotiate further, while others do not. When the listing agreement is executed, the listing goes into the Multiple Listing Service (MLS) and it will state an offer of compensation to a buyer’s agent.
That was then…this is now…
Brokers and Sellers will continue to negotiate a commission amount for the listing broker but it may or may not include an amount for the buyer’s agent. In approximately July, all MLSs will NOT show a cooperating commission. That does not mean that the listing broker does not have a listing agreement whereby the seller is offering an amount to the buyer’s agent. Soon, all buyer agents will have to ask the listing agent if there is a buyer broker commission offered by the seller on all properties shown to the buyer before showing the properties, unless the buyer’s agent and the buyer have entered into an agreement and the buyer intends to pay the buyer broker’s commission.Choosing a buyer’s agent is now very important.
Consider your options:
You can pay the agent with your own funds
You can enter into a buyer broker agreement and hope the seller of the property you are going to see will pay the buyer’s agent
You can find a property and ask the seller to pay your buyer agent through a “seller concession” area in the offer you make to the seller
You can go directly to the listing broker to see the property and be represented as a dual agent or be unrepresented
You will have to sign a buyer broker agreement just to see a property with a buyer agent
Now, more than ever, you need someone who knows and understands the issues.