As of tomorrow, the landscape of buying and selling property will change for Buyers, Sellers, and Agents. If you listen to the news, they make it sound like real estate agents will bear the full brunt of these changes by way of reduced commissions. This is a bit of an oversimplification. In reality, the operation of selling can be relatively unchanged, or we may see that more of a financial burden is placed on the buyer.
The information below, provided by The National Association of Realtors, lays it all out. In short, here's how it works from tomorrow going forward. The seller and their agent will determine if the seller is willing to compensate a buyer's agent when they bring a buyer. This is how its been up until now. If the seller does not want to compensate the buyer's agent, then it will be the buyer's responsibility to compensate their agent.
Sounds great for sellers, right? Not so fast. There is already a great financial burden placed on the buyer when closing (down payment, inspections, closing fees, etc...). Now, add 2-3% of the purchase price on top of that to be paid by buyer to their agent. It adds up quickly. You can see why buyers may ask their agents to only show them properties that offer compensation to the buyer's agent. This would put sellers who don't offer compensation to both agents at a great disadvantage.
Lots to digest here. In the end, trust your real estate professional to guide you through what practice will ultimately be in your best interest.
After reviewing the information below, please feel free to contact me with any questions you may have.
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