How Buyers Can Prepare for the 2024 Commission Changes
With the upcoming changes in real estate commission rules, buyers will need to approach their home purchase differently. The days of relying on the seller to cover the buyer’s agent commission are ending. In this blog, we’ll provide practical tips for buyers to prepare for this new reality and ensure they get the best deal possible.
Understanding the New Responsibility
Starting in August 2024, buyers will need to negotiate and pay for their agent's commission directly. This means that when budgeting for a home purchase, buyers should account for this additional cost. Traditionally, this fee was wrapped into the overall cost of the home, but now it will be an upfront expense
Strategies for Negotiating Agent Fees
With the shift in responsibility, buyers now have more power to negotiate their agent’s fees. Here are a few strategies:
Fixed Fees vs. Percentage Fees: Consider negotiating a fixed fee for your agent’s services instead of the traditional percentage-based fee. This can provide more predictability and potentially lower costs.
Hourly Rates: Some agents may be willing to work on an hourly basis, especially if your needs are more limited. This could be a cost-effective option for experienced buyers who need less guidance
Budgeting for the Additional Cost
It’s essential to factor in the agent’s commission when budgeting for your home purchase. Consider how this will impact your overall financial plan, including your down payment and closing costs. Discuss with your agent what services are included in their fee to ensure you’re getting value for your money.
Bottom Line
By understanding and preparing for these changes, buyers can enter the market with confidence. In our next blog, we’ll turn our focus to sellers and discuss how they can adjust their strategies in light of the new commission rules.