Selling agent who lists the house for sale gets paid 3%(ish) by the homeowner.Any suggestions about how agents *would* be compensated?
Currently the Buyers agents who takes a buyer around to 30 different houses used to be paid their 3%(ish) at closing by the seller. In the future the closing paperwork would change so that they would then be paid but the buyer. This model would require that the buyer has 20% mortgage to avoid PMI and another 3% to pay the real estate agent unless the PMI rules change. The selling price of the house would also be reduced by 3% so a $100K house would now sell for $97K but the buyer would also need to pay about $3K to their agent as commission.
Basically it might not mean a lot except how the paperwork is filled out.
Where it gets interesting is that the buyer would now have the option to find the house directly at an open house or on the internet and make an offer on it without using their own agent. They might use a lawyer instead to make the offer or handle it on their own.
It was decades ago but I actually found a house at an open house without using an agent but when the negotiations went back and forth the listing agent quickly offered to take less commission because there was not a second agent involved but she was not required to do that unless that was in the listing agreement that the seller had signed and that is common. When I have sold a house there was a clause in the listing contract for a reduced commission if there was not a second real estate agent involved.
Statistics: Posted by Watty — Fri Mar 15, 2024 11:34 am — Replies 23 — Views 1181