What amount will you pay your buyer agent when new Realtor MLS rules start in August?

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What amount will you pay your buyer agent when new Realtor MLS rules start in August?

Albert Hepp
Real Estate Investor · Minneapolis, MN · Member since 2011 · 49 posts · 19 votes

In August, Realtor/MLS rules change so that buyer agent written agreements are required, and the MLS will no longer state a buyer commission amount. Both buyer and listing agent commissions will need to be agreed to by the buyer and seller as part of the purchase agreement (not simply disclosed after the fact, like under previous rules in most states).

When you are a buyer, and want to view an MLS listed home, you will have to sign an agreement. That agreement has to state the amount the buyer agent will be paid. What amount will you sign on for?

How does your answer change, if:

1. You have already found the property and just need agent to write the purchase agreement?

2. You expect a long home search where the agent will have to schedule lots of showings for you, over a long period of time?

Thank you.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Albert Hepp:

In August, Realtor/MLS rules change so that buyer agent written agreements are required, and the MLS will no longer state a buyer commission amount. Both buyer and listing agent commissions will need to be agreed to by the buyer and seller as part of the purchase agreement (not simply disclosed after the fact, like under previous rules in most states).

When you are a buyer, and want to view an MLS listed home, you will have to sign an agreement. That agreement has to state the amount the buyer agent will be paid. What amount will you sign on for?

How does your answer change, if:

1. You have already found the property and just need agent to write the purchase agreement?

2. You expect a long home search where the agent will have to schedule lots of showings for you, over a long period of time?

Thank you.


 I am selling a property and it will get listed right around this time and we are paying the buyers agent. I have no issues with paying the buyer's agent. 

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  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    It's hard to tell because a large percentage of buyers currently purchasing are using FHA and VA loans and might not have an extra 2-3% to put toward closing. Therefore, they might go for the agent who is willing to offer the lowest fee or go directly with the listing agent.

    For our deals, we will still be offering at least 2% to the buyer's agent because we would rather have a large pool of realtors bringing their clients. 

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  • Livia Adams
    Real Estate Consultant · Miami · Member since 2024 · 53 posts · 18 votes
    2y
    Quote from @David Ramirez:

    It's hard to tell because a large percentage of buyers currently purchasing are using FHA and VA loans and might not have an extra 2-3% to put toward closing. Therefore, they might go for the agent who is willing to offer the lowest fee or go directly with the listing agent.

    For our deals, we will still be offering at least 2% to the buyer's agent because we would rather have a large pool of realtors bringing their clients. 


    I believe an effective approach is to include a seller concession in the purchase contract, specifically as a seller contribution towards the buyer's closing costs.

    For instance, we had a case with VA buyers where we implemented this strategy, allowing a portion of the loan to be disbursed to them in cash. This enabled them to pay their agent.

    This approach is particularly crucial when the listing agent is unable or unwilling to negotiate the traditional 4-6% commission with the seller, leaving no commission to share.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Albert Hepp:

    In August, Realtor/MLS rules change so that buyer agent written agreements are required, and the MLS will no longer state a buyer commission amount. Both buyer and listing agent commissions will need to be agreed to by the buyer and seller as part of the purchase agreement (not simply disclosed after the fact, like under previous rules in most states).

    When you are a buyer, and want to view an MLS listed home, you will have to sign an agreement. That agreement has to state the amount the buyer agent will be paid. What amount will you sign on for?

    How does your answer change, if:

    1. You have already found the property and just need agent to write the purchase agreement?

    2. You expect a long home search where the agent will have to schedule lots of showings for you, over a long period of time?

    Thank you.


     I am selling a property and it will get listed right around this time and we are paying the buyers agent. I have no issues with paying the buyer's agent. 

    7e investments53 Reviews
    WebsiteView Page
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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    2y

    So far I have seen 2-2.5% the only 0% was from a small local commercial brokerage who always had a reputation to lowball buyers agents so most agents just never send out their deals. 

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  • Albert Hepp
    OP
    Real Estate Investor · Minneapolis, MN · Member since 2011 · 49 posts · 19 votes
    2y
    Quote from @David Ramirez:

    It's hard to tell because a large percentage of buyers currently purchasing are using FHA and VA loans and might not have an extra 2-3% to put toward closing. Therefore, they might go for the agent who is willing to offer the lowest fee or go directly with the listing agent.

    For our deals, we will still be offering at least 2% to the buyer's agent because we would rather have a large pool of realtors bringing their clients. 

    I am asking about when you buy a property. you will now need to sign an agreement with an agent, which must state how much they will be paid. Will you agree to 2%, even if you found the property on your own? Thanks.

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  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y
    Quote from @Albert Hepp:
    Quote from @David Ramirez:

    It's hard to tell because a large percentage of buyers currently purchasing are using FHA and VA loans and might not have an extra 2-3% to put toward closing. Therefore, they might go for the agent who is willing to offer the lowest fee or go directly with the listing agent.

    For our deals, we will still be offering at least 2% to the buyer's agent because we would rather have a large pool of realtors bringing their clients. 

    I am asking about when you buy a property. you will now need to sign an agreement with an agent, which must state how much they will be paid. Will you agree to 2%, even if you found the property on your own? Thanks.

    As an agent, I always tell my clients, you do NOT need an agent to do a transaction. Never have, never will. 

    It's a service you pay for, and you typically get what you pay for. Don't want to pay the agent directly? Write it into the offer that the seller pays commission. 

    On the contracts I've done recently, 90% of sellers are paying buyers agent commission and are disclosing the amount via phone. 
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