If you’re purchasing a house on or after Aug. 17, your approach will need to change. This shift is a result of changes in rules following the settlement of an antitrust lawsuit.
One significant change is that you, as the buyer, will have control over how much your real estate agent is compensated. Gone are the days when the seller’s agent paid your agent. Instead, you will likely negotiate with the seller to cover your agent’s fee.
Here’s a breakdown of how the new process will unfold.
Agreeing Before Touring Homes
Before you step inside a house for a tour, you’ll need to sign an agreement outlining your agent’s responsibilities. This agreement can be short-term or longer-term based on your negotiation.
Whether it’s a physical or virtual tour, you’ll need to sign this agreement. Open houses and tours by the seller’s agent don’t require a signed agreement.
Formalizing the Relationship
When you’re ready to commit to a buyer’s agent, you’ll sign a detailed contract specifying the agent’s duties and payment terms. This agreement will be required in most cases.
Negotiating the agent’s payment is a key aspect of this contract. Whether it’s a flat fee or a percentage of the purchase price, you have room to negotiate.
Negotiating Terms and Costs
Aside from the agent’s pay, you’ll also negotiate the contract’s duration, additional fees, and the geographic coverage. Understanding these elements is crucial before signing.
Seller Concessions
When making an offer, you can ask the seller to cover your agent’s commission. This seller concession can ease your financial burden during the home buying process.
Negotiating a better deal with your agent can give you a competitive edge in landing your dream home.