1005 Alcyon Dr Bellmawr NJ 08031
+1 484-446-2566
support@bmcpros.com
If your parents or grandparents bought a home with the help of a real estate agent, the seller may pay the real estate agent fee. In today’s housing market, a major legal settlement has changed the provisions of the agency committee. Many potential home buyers are now asking: “Does the buyer pay real estate broker fees?”
After a court-approved agreement with the National Association of Realtors (NAR) last year, home buyers are now responsible for negotiating real estate broker fees directly with buyer agents.
With the help of the top rated experts, we will explain what changes have happened, what you might pay for your real estate expenses as a buyer and the options to avoid this extra fee.
Will buyers pay real estate agent fees?
While it is now expected that home buyers will negotiate compensation directly with their agents, which includes signing a buyer’s broker agreement before visiting the property, signing a formal contract does not necessarily mean you need to pay real estate broker fees. You can still ask the seller to pay for your agency fee.
In fact, as home sales slow down due to higher interest rates, many sellers continue to offer deals that pay buyer real estate agent fees or make other offers to make the deal.
“Buyers seem to think they have to pay the buyer’s committee,” said Al Dirusso, the most popular agent in Charlotte, North Carolina. “And the sellers think they don’t have to pay the buyer’s agency committee at all. Both are correct.”
He added that whether you end up paying change or ensuring the donation from the seller depends on what you and your agent negotiated during the part of the offer. “Experienced agents can show that, in terms of commissions, it can operate as usual.”
Angie Chavez, the top agent who serves the Atlanta area, agreed. “The NAR solution adds another layer of confusion, but has no impact on how to handle the business. Most sellers agree to pay at least some fees to buyer brokerage compensation. They understand the impact it might not do so. They now see it as a marketing tool.”
How much will you pay for a real estate agent?
If you end up being completely responsible for the buyer’s agency fee, the typical fee ranges from 2% to 3% of the home’s selling price. In a home with a median price of $400,000, this could mean $8,000 to $12,000, which is a massive increase in your down payment, settlement fees and mobile fees.
“The changes in (NAR committee) could have unexpected negative impacts on the most vulnerable buyers: first-time and low-income buyers,” said Houston-area agent Angelina Keck, who has 20 years of experience. “At the same time, the luxury market is booming and unaffected, further widening the gap between classes.”
If the seller does not agree to pay your real estate agent’s fees:
| House Price | 3% real estate fee | 2.5% real estate broker fee | 2% real estate fee |
| $100,000 | $3,000 | $2,500 | $2,000 |
| $150,000 | $4,500 | $3,750 | $3,000 |
| $200,000 | $6,000 | $5,000 | $4,000 |
| $250,000 | $7,500 | $6,250 | $5,000 |
| $300,000 | $9,000 | $7,500 | $6,000 |
| $350,000 | $10,500 | $8,750 | $7,000 |
| $400,000 | $12,000 | $10,000 | $8,000 |
| $450,000 | $13,500 | $11,250 | $9,000 |
| $500,000 | $15,000 | $12,500 | $10,000 |
| $550,000 | $16,500 | $13,750 | $11,000 |
| $600,000 | $18,000 | $15,000 | $12,000 |
| $650,000 | $19,500 | $16,250 | $13,000 |
| $700,000 | $21,000 | $17,500 | $14,000 |
| $750,000 | $22,500 | $18,750 | $15,000 |
| $800,000 | $24,000 | $20,000 | $16,000 |
| $850,000 | $25,500 | $21,250 | $17,000 |
| $900,000 | $27,000 | $22,500 | $18,000 |
| $950,000 | $28,500 | $23,750 | $19,000 |
| $1,000,000 | $30,000 | $25,000 | $20,000 |
| $1,500,000 | $45,000 | $37,500 | $30,000 |
The sample amount of 2%-3% in this table is not set with stones. Commission rates are negotiable and your agreement with the agent will outline specific terms. Certain agents or brokers may offer reduced commissions to loyal clients, charge a fixed fee, or agree to collect payments only if the seller does not cover part of it.