"In the example above (clipped from social media), the listing agent wandered right into it by allowing their sellers to counter the buyer agent commission (BAC) down to 2.25%. But the buyer is contractually obligated to pay their agent the 3% fee. What happens to the remaining 0.75%? If the buyer-agent unwittingly tries to get their buyer to pay the remaining 0.75%, and their buyer doesn't like it, the deal falls apart without notice. Both agents are at fault because they didn't see it coming."
"Most agents grew up in the frenzy era when buyers had to eat everything - higher price, no repairs, free rent, and oh by the way the seller is taking the chandelier, the drapes, and the $4,000 toilet too. For the last six years, sellers and listing agents have expected that the buyer will tolerate everything thrown at them. Not any more."
"Previously, the buyers weren't a party to the commission agreement - it was only between the sellers and agents. If the seller had something to say about the buyer-agent commission, it was handled on the side because we thought it was none of the buyers' business. It's their business now. See it coming. Plan ahead. This is the wild wild west, and the buyer-agent commission is the bounty, or reward, to incentivize the buyer-agents to sell your home. Price it into the deal."
Since August 17, 2024, buyers must hire an agent in writing and agree to pay their buyer-agent commission. Commissions are now negotiable, which gives buyers a direct vote on agent fees for the first time. When sellers or listing agents lower the offered buyer-agent commission below the buyer's contractual obligation, gaps can arise that derail deals. Agents accustomed to seller-paid buyer-agent fees need to anticipate these conflicts and plan ahead. Paying the buyer-agent fee can incentivize buyer-agents to actively promote the sale and reduce the risk of transactions collapsing over commission disputes.
Read at Boston Condos For Sale Ford Realty
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