Navigating the Changing Landscape of Real Estate Commissions:
What Buyers & Sellers Need to Know beginning August 16, 2024
In recent years, the real estate industry has witnessed significant shifts, particularly concerning agent commissions and buyer representation agreements. With recent updates from Freddie Mac and the National Association of REALTORS® (NAR), buyers and sellers alike are faced with new considerations when navigating the housing market. In this article, we’ll explore these developments and provide insights on how they may impact your real estate transactions.
Freddie Mac’s Policy Update: Freddie Mac’s recent policy change allows buyers to pay their agents directly and finance it into their mortgage. This shift provides a significant benefit to new homebuyers, offering them more flexibility in managing their transaction costs.
Implications for Sellers: Starting from August 16, 2024, sellers will no longer be responsible for covering the buyer’s agent commission within their listing agreement. However, sellers can still offer “buyer concessions” to incentivize agents to show their homes to qualified buyers, facilitating quicker sales.
Implications for Buyers: Buyers should be prepared to sign a “Buyer Broker Agreement” before their agent can represent them, effective from August 16, 2024 (Although the rule will not be enforceable until August 16th, almost every brokerage within California have been implementing these new rules in order to stay within these new guidelines). This agreement may stipulate that buyers are responsible for paying their agent’s commission or a fee for representation. However, commissions and fees remain negotiable, providing buyers with options to manage their costs effectively.
Navigating the Changes: These updates underscore the ever evolving nature of the real estate industry and the importance of informed decision-making for both buyers and sellers. By staying informed and understanding their options, individuals can navigate these changes with confidence.
Conclusion: As the real estate landscape continues to evolve, it’s essential for buyers and sellers to adapt to these changes and make informed choices. Whether it’s understanding new commission structures or negotiating representation agreements, knowledge is key to achieving successful real estate transactions.
Here at Country Estates, inc – we are committed to keeping our clients informed and empowered throughout their real estate journey. If you have any questions or need assistance navigating these changes, our experienced team of Agents & Brokers are here to help.
Article Written by: Jonathan VanLoo – Contact Jonathan below
Jonathan VanLoo
🏠 REALTOR® | 🇺🇲 US Army Veteran
“Creating Lifelong Memories & Friends, One Home at a time!” | 👨🏼💼 Jonathan VanLoo | 👼🏼 Father of a Daughter | 🇺🇲 US Army Veteran | 🏠 REALTOR® | 📲 707.365.5290 | 🪪 CalDRE#02214790 | 🍇 Brokered by: Country Estates, Inc