{"id":96295,"date":"2024-08-22T12:23:38","date_gmt":"2024-08-22T19:23:38","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96295"},"modified":"2024-09-12T15:43:54","modified_gmt":"2024-09-12T22:43:54","slug":"real-estate-commission-changes","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/real-estate-commission-changes\/","title":{"rendered":"Real Estate Commission Changes: What You Need to Know"},"content":{"rendered":"

There are important changes happening in the real estate industry this month. The National Association of Realtors and multiple listing service (MLS) have <\/span>implemented new rules<\/span><\/a> about how real estate agents communicate about real estate fees. The changes provide greater transparency and competition around fees\u2014goals that Redfin has always supported.\u00a0<\/span><\/p>\n

We know this can be confusing, but Redfin agents are prepared to answer any questions you have and expertly guide you through your buying and selling journey.\u00a0<\/span><\/p>\n

So, what is changing exactly?<\/h2>\n

<\/b>It has been customary in most transactions for the home seller to pay a commission to both their agent (the listing agent) and the agent who represents the buyer (the buyer\u2019s agent). While it has always been the seller\u2019s choice to decide whether and how much compensation to offer the buyer\u2019s agent, the process around it has changed in two main ways:<\/span><\/p>\n

    \n
  1. Disclosure of buyer’s agent fees<\/b>: A buyer will now need to agree to their agent\u2019s fees before touring homes. This sets the maximum amount that your buyer agent will be paid when you purchase a home.\u00a0<\/span><\/li>\n
  2. Advertising of buyer\u2019s agent fee:<\/b> Offers of buyer agent compensation are being removed from many MLSs, the databases agents use to share and market listings. A seller can still pay the buyer\u2019s agent, but they cannot advertise any offers of compensation in the MLS unless expressly allowed by local rules.<\/span> \u00a0As a result, buyer\u2019s agent fees will increasingly be negotiated as part of the offer.<\/span><\/li>\n<\/ol>\n

    What does this mean for sellers?<\/h2>\n

    <\/b>Sellers will still have conversations with their listing agents about any compensation they would like to offer to the buyer\u2019s agent. We expect that in many cases, buyers will continue to ask sellers to help cover the buyer\u2019s agent fee as part of their offer. Sellers will evaluate offers and negotiate, like they would with any other terms.\u00a0<\/span><\/p>\n

    What does this mean for buyers?<\/h2>\n

    As a buyer, you will have an upfront conversation to learn what your agent will charge. Your agent will ask you to sign an agreement about their fee before touring homes.\u00a0 You can still ask the seller to cover your agent\u2019s fee as part of your offer. Depending on how you structure your offer, the seller could agree to compensate your agent directly or could offer closing concessions that you could allocate to pay your agent at closing.\u00a0<\/span><\/p>\n

    Here’s Redfin’s Chief of Real Estate Services, Jason Aleem, to explain further<\/h2>\n