Vlog
If you've been following real estate news over the past couple of years, you've probably heard that Realtor commission rules changed after the National Association of REALTORS® (NAR) settlement.
Unfortunately, the headlines created a lot of confusion.
Some buyers now believe they have to pay their Realtor entirely out of pocket.
Some sellers assume they no longer need to contribute toward buyer agent compensation.
So... what's actually true?
The answer is a little more nuanced, and understanding how these changes work can help you make more informed decisions whether you're buying or selling a home in San Diego.
There were two major changes that came from the NAR settlement.
1. Buyers now sign a Buyer Representation Agreement before touring homes with an agent.
This agreement outlines the services your agent will provide and explains how compensation works before you begin your home search.
2. Buyer agent compensation is no longer displayed in the MLS.
Instead of advertising compensation within the MLS, it is now negotiated as part of the purchase offer.
While these changes affected the paperwork and process, they did not eliminate buyer agent compensation altogether.
Not necessarily.
Many buyers hear about the rule changes and immediately assume they'll be writing a separate check to their Realtor at closing.
In reality, every transaction is negotiated differently.
In many cases, sellers are still contributing toward buyer agent compensation as part of the overall purchase agreement. However, it's important for buyers to understand their Buyer Representation Agreement before beginning their home search so there are no surprises later.
If you're selling your home, you're no longer making a blanket offer of compensation through the MLS like in the past.
That doesn't automatically mean offering compensation isn't beneficial.
Today's buyers are already balancing higher home prices, elevated interest rates, insurance costs, and closing expenses. If purchasing your home requires them to also pay their agent entirely out of pocket, some buyers may decide to move on to another property or adjust their offer accordingly.
For many sellers, contributing toward buyer agent compensation remains a strategic decision that can help maximize buyer interest and keep their home competitive.
Despite all of the national headlines, the day-to-day reality in San Diego hasn't changed as dramatically as many expected.
The paperwork has changed.
The process has changed.
But in the majority of transactions I'm personally involved in, sellers are still contributing toward buyer agent compensation through the negotiation process.
Every transaction is different, but the goal remains the same: create the strongest possible opportunity for both buyers and sellers to reach an agreement.
In this week's video, I walk through:
Whether you're buying your first home or preparing to sell, understanding these changes can help you navigate today's market with confidence.
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Real estate thrives on human connection and I believe in cultivating relationships that are based on my core values; honesty and integrity. I combine my knowledge of the real estate community with my passion for serving others to help buyers and sellers obtain their real estate goals. I believe in having positive relationships with my clients and as such, I do not outsource important obligations or responsibilities.
