Should Home Sellers Pay The Buyer's Agent Commission?

As a home seller it's an appealing thought to NOT pay the buyer's agent's commission--it could save you thousands of dollars! After all, why should you pay a buyer's Realtor to negotiate against you? But, is this cost savings an effective strategy when trying to sell your home? There's several compelling reasons why, as a home seller, you may want to incentivize a home buyer with a buyer's agent to write you an offer...and offer to pay the compensation for that Realtor. There are a lot of big changes happening in the real estate industry as a result of the Sitzer-Burnett class action lawsuit and NAR's settlement with the DOJ, and, unfortunately, a lot of misinformation being perpetuated by mainstream media for what it means to consumers. Before you decide upon your home selling strategy and whether or not to offer compensation, watch this video to find out about the pros and cons of paying for the buyer's agent's commission!
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[@parthppatel28]

I as a buyer I don't want my agent to be paid by seller. I'm getting the loan and I'll get a cash back from my loan to pay my agent or I'll pay them of my savings or downpayment money. I'll reduce the price of house by 3% cause I'm paying the commission and my commission structure will incorporate a percent of how much the price is negotiated down (just as on seller side is proportional to how much price is negotiated up). NOW WE HAVE A BALANCE ON BOTH THE SIDES.

[@MrGrand2000]

Im confused,,if Im selling my house and my agent is charging me 6 percent,don’t they just split it with the buyers agent

[@EmilyFarber]

That has been the way the typical real estate model has worked for the last several decades in the US, but now the model is changing due to the DOJ. When you list a house for sale now, there will be a bigger conversation with your agent, and if you want to offer compensation to the buyers agent, your listing agent will have to find alternative ways to communicate that to potential buyers…that particular info can no longer be included with your listing information on the MLS. You can still offer money to the buyer’s agent as a way to make your property appealing to the greatest pool of buyers.

[@Mark-x4z]

Hi Emily. Great video! After the change can sellers put the fact that they are offering to pay the buyer's agent commission in the listing (not in any field but in the actual description of the house) and list the percentage? Thanks!

[@EmilyFarber]

@@Mark-x4z No, no mention of any offer of commission can be ANYWHERE on the MLS or on any website/app connected to the MLS (like Showingtime…the app many agents use to schedule showings). How this is not considered a violation of sellers’ freedom of speech I’m not sure…

[@Mark-x4z]

@@EmilyFarber 100% agree. Crazy that, like you said, they claim this provides greater transparency. Doublespeak at its finest! Anyway, thanks for the reply!

[@parthppatel28]

​@@EmilyFarber cause it's bribing buyers agent to come show that property to the buyer. It should be highly illegal. Thank God they are bringing this in.

[@EmilyFarber]

@@parthppatel28Bribing? Lol. No. I have looked at thousands of houses that I am not interested in whatsoever but saw nonetheless…because my clients wanted to look at them.

[@user-nl9ny3zz6t]

Steering your customers to sellers homes who provide the buyers commission??? New rules just made this supposed illegal action a silent reality????

[@EmilyFarber]

I’m not sure I’m following you. My buyers sign an agreement a before ever even looking at homes in which my rate for my real estate services is specified. They know how much it costs to hire me. As of Aug 17th the field in the MLS that states the amount of compensation offered to the buyer’s brokerage will be gone, and as such, if my buyer wants to know if there is anything being offered, I will try to find out if there is compensation offered prior to scheduling a showing. The buyer makes the decision if they want to see the home or not and/or at that point, and write an offer or not. We can always write the request for my fee to be covered by the seller into the purchase agreement, and if the seller says no…well, then at that point the buyer makes the decision to move forward with the deal or not knowing they will be paying my fee. The buyer is the one “steering” themselves towards or away from properties. I am not steering anyone.

[@10hxxt]

Nobody should pay a commission. Realtors artificially inflate the prices for an unnecessary service. Get rid of them and home prices fall 5% over night.

[@EmilyFarber]

Realtors are not inflating prices. Sellers set their price. Every single appraisal you read states that the price is the price is the price regardless of if real estate agents are involved in the transaction or not. If real estate agents inflate prices, why then are FSBO listings not listed at 5-8% off market value?

[@edmundohillary]

​​@@EmilyFarberum, they usually are. Fsbo typically have a price for if the buyer is represented and if they aren't represented. All up to the buyer then if they want to pay their own agents commission as part of a higher asking price. This isn't hard.

[@rvandoom]

You’re an agent no one listening to you!! Do not listen to her ! Paying a buyers agent is BAD!!! Just say NO sellers let the buyer pay their own agent

[@EmilyFarber]

lol. Right. I’m plain BAD. That’s why I put so many educational videos about real estate on KZbin to help people make informed decisions about their real estate goals. I’ve only helped hundreds and hundreds of people buy and sell, but what could I POSSIBLY know about marketing real property that someone who buys or sells one house every 10 years or so would know better? 😂

[@rvandoom]

@@EmilyFarber you know you’re wrong ! ADMIT it ! Does that make sense to you ? That a seller pay a buyers agent??? The buyer should be paying their own agent! Simple as the seller is paying their agent to market and sell their own home! The chickens have come home to roost!