Paying buying agent.

[John Litzenberger]

Hi all! I’m wondering how everyone has been structuring their deals now with the new laws in effect for paying realtors. I’m selling a property and trying to figure out what I want to do for the buyer’s agent.

Any best practices? Are you still paying the buyers agent a split of the 5/5.6%? What can I expect to pay the sellers agent at this point?

[Patrick O'Sullivan]

Hi John

Broker here in Arizona. How I'm doing it here is negotiating the listing commission with the Seller upfront. I also let the seller know that Buyer's agents have agreements with their buyers and what fee the Buyer will pay their agent. Event with that in place, an offer is likely to come with a Seller Compensation Agreement that has how much the Seller is to pay the agent. This is now a negotiable item but keep in mind, if you as a Seller offer lower than the agreement between the Buyer and the Buyer's agent, the Buyer is on the hook to pay the difference. This can be hard on some buyers who can't now finance the commission as part of the purchase price.