Navigating Realtor Commissions: What Buyers Need to Know – Stress Free Mortgage

As a seasoned loan officer in the mortgage industry, I am deeply rooted in the changes to the real estate market. The recent settlement between the National Association of Realtors and stakeholders has sparked significant changes in commission payments, impacting both buyers and sellers alike. I thought it would be beneficial to give a loan officer’s perspective and how this affects buyers.
Traditionally, sellers have the responsibility of compensating both their listing agent and the buyer’s agent for services. This long-standing practice, spanning over eight decades, has formed the cornerstone of real estate transactions. When a client asked me about paying their realtor, I would tell them that they do not pay for them, that they are paid by the seller. However, with the evolving landscape, this norm is no longer set in stone. What does this mean for a new buyer later this year?
Buyers must now anticipate the possibility of signing a buyer’s agreement with their realtor, realizing that their financial obligation has changed. Their realtor will likely ask the seller to pay their commission as part of the offer. While sellers retain the discretion to refuse this, I anticipate that paying the buyer’s agent commission will once again become the customary practice, it just won’t be listed in the Multiple Listing Service (MLS). But, in instances where sellers opt out of covering the buyer’s agent commission, buyers must be financially prepared to shoulder this expense themselves. This additional financial burden, on top of the down payment and closing costs, highlights the importance of working with an experienced loan officer.
Working with a realtor is important and they are the professionals. While it may be tempting to seek out agents offering discounted services, such decisions often come at the cost of comprehensive support and guidance throughout the homebuying journey. At Stress Free Mortgage, we value our relationships with professional and knowledgeable realtors. Whatever your situation, we’ve got you!