Buying a home these days may seem like an impossible task to most homebuyers. 
Now, with MLS rule changes, buyers may need to pay their Broker’s fees,
as sellers may no longer offer compensation to buyer’s agents.

Three Buyer Options

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Why Would Buyers Pay for Brokerage Services?

The traditional model of sellers paying the buyer agent’s commission has been questioned for several reasons, over many years. In the NAR Settlement, the Court believes that it will lower housing costs overall. We considered this decision in Cornering the Real Estate Market. Here are some points to consider about why home buyers might prefer to pay their agents directly.

Alignment of Interests
Buyer agent’s motivation is re-aligned to the interests and satisfaction of the buyer-client, rather than being focused on the seller’s interests and compensation.

Incentive for Better Service
Direct payment to your agent provides incentive to provide better service and work harder for the buyer, knowing that their compensation depends on your satisfaction with their services.

Stronger Negotiation Power
Buyers have more leverage to negotiate the commission rates with their agents if they are paying directly, rather than favoring home sales that only offer the best buyer commission. Additionally, taking on the buyer commission opens the seller negotiations as the seller is saving that portion of the deal, which leads to more competitive pricing and potentially lower costs for both sides.

Flexibility in Choosing Services
Not all buyers need or want a full-service brokerage. Buyers can choose the level of service they want, and pay accordingly. This could range from full-service representation to more independent service options, giving buyers more control over their costs.

The coming shift in the real estate market may foster a more competitive, consumer-friendly environment that offers better options and better pricing. You can be part of this shift with your next home.