With the historic changes of how consumers pay for real estate services, more transparency is hopefully on the way.
The agent you, as a seller, hire to put your property up for sale is called the “Listing Agent” who works for the Listing “Agency”. The agent who brings the buyer is called the “Selling Agent” who works for the Selling “Agency”.
In the past, a seller might have agreed to pay a PRESET 5% total commission. The contract they signed with the listing agent/agency most likely said that amount would be split equally with the buyer’s agent/agency (the agency is the one that gets paid and then they pay the agent.)
Going forward, Sellers DO NOT HAVE TO AGREE to pay the agent/agency who brings the buyer. Buyers can choose to use an agent, or not, and THEY decide how much to pay the agent. The buyer can, in an offer, always ask you to pay for their agent, just like they can ask you to pay for their closing costs.
This may seem obvious to many sellers but we suggest that you make certain that the agent who you hire to sell your home will show it to potential buyers without charging you more than the listing commission. They stand in your shoes and most likely buyers (as would you) would want to see the inside of the house. It should be a “given”. In fact, sellers of higher priced homes often require that their listing agent be present. This should not be considered unusual by the agent.
You may even want to suggest and agree to put a second lockbox on the property for buyers who do not want to use an agent and pay big commissions. This may require the approval of the local Multi-List, so be sure to check.
The advantage to you the seller should be clear, if you only have to pay one-half of a commission, why would you pay double? And if you agent wants to be paid more, the buyer has to agree to the amount because, presumably the amount will be added to the sale price.
DON’T get trapped into paying a commission meant to cover the payment to your agent and to the agent for the buyer, if the buyer isn’t using an agent. This could be an Unfair Trade Practices and Consumer Protection Act Violation.
