How Buying and Selling Homes is About to Change

A major shift is coming to the Bay Area real estate market on August 17th. The way buyer agent commissions are paid is undergoing a dramatic overhaul.

How does it work now?

Traditionally, the seller covers the commission for both the listing agent and the buyer’s agent.For example, on a 5% commission, the listing agent typically keeps 2.5% and shares the other 2.5% with the buyer’s agent.

What’s changing?

Starting August 17th, the rules are changing:

• Seller’s options: Sellers will have more flexibility. They can choose to pay all, part, or none of the buyer’s agent commission.
• Buyer’s responsibility: Buyers must now sign a Buyer’s Brokerage Agreement with their agent, similar to the seller’s listing agreement.
• Transparency: The buyer’s agent commission will no longer be publicly displayed on the Multiple Listing Service (MLS).

Impact on you: These changes will significantly impact both buyers and sellers. To understand how this affects your specific situation, schedule a free consultation today.

Don’t get caught off guard.  Contac Ramesh to learn more about how to navigate this new landscape.