The world of real estate is shifting, and with new changes to how buyers and sellers work with agents, things can feel more confusing than ever. Whether you're buying or selling a home, understanding the role of each agent—and how their compensation works—is key to making informed decisions.
What Does a Buyer’s Agent Do?
A buyer’s agent represents the homebuyer’s interests throughout the purchasing process. Their primary responsibilities include:
- Finding properties that fit the buyer’s criteria
- Scheduling showings and attending tours
- Analyzing market value to help with offer strategy
- Negotiating terms and conditions
- Coordinating inspections and contingencies
- Guiding the buyer through the closing process
Traditionally, the buyer’s agent was compensated through the seller’s proceeds at closing. However, new changes require buyers to negotiate and agree to their agent’s compensation upfront. This means buyers may need to pay their agent directly unless other arrangements are made.
What Does a Seller’s Agent Do?
A seller’s agent (also known as a listing agent) represents the homeowner in selling their property. Their responsibilities include:
- Advising on pricing and market conditions
- Marketing the home through professional photos, online listings, and open houses
- Negotiating offers and terms with potential buyers
- Handling paperwork and legal disclosures
- Guiding the seller through the closing process
The seller’s agent’s commission is still typically paid from the proceeds of the home sale. However, sellers now have more flexibility in deciding whether to offer compensation to the buyer’s agent—something that was once a standard practice.
How Do These Changes Affect You?
Recent updates in real estate policy have made it necessary for buyers and sellers to have clear agreements with their agents before moving forward. Here’s what you need to know:
- Buyers now need to negotiate their agent’s compensation upfront and may be responsible for paying them directly.
- Sellers are no longer required to offer compensation to the buyer’s agent, though they can still do so as an incentive.
- Agent agreements must be signed before home tours begin, ensuring transparency in services and fees.
What Should You Do Next?
If you’re buying a home, discuss compensation with your agent early to understand your options. If you’re selling, consider how offering a buyer’s agent commission might impact your home’s marketability.
While these changes may seem overwhelming, working with an experienced real estate professional can help you navigate this new landscape with confidence.
Still have questions? Let’s chat! Whether you're a buyer or a seller, I’m here to ensure you understand every step of the process.
