What Buyers Need To Know
Real estate rules have changed in that Selling and Buying Agent fees have been “decoupled”. In theory – to ensure they are both fairly represented – sellers and buyers each pay their own agents. What is happening however, sellers are usually paying the buyer agent fees at closing, just like before. National Association of Realtors® (NAR®) and associated MLS members must abide by new rules. Realtors® who are working with a Buyer must have a written Buyer Brokerage Agreement before showing any property to a potential buyer (in-person or virtual.) This also applies to tenants looking for rentals. It’s the law in Illinois.
While there have been procedural changes to how we do business, the end result is pretty much “business as usual.” What is happening is most buyers are asking the sellers to pay for their agent fees within the purchase price – just as they have done in the past.
Frequently Asked Questions:
Q: What is a Buyer Broker Agreement?
A: Buyer brokerage agreement identifies what services a Broker will provide to the Buyer, along with how the agent will be compensated. It ensures transparency and helps Buyers understand their financial responsibilities. Any client wanting to use a Realtor® to buy or lease a property must have a signed contract with that Realtor®.
Q: How will I pay my Broker when I need all my money for the down payment?
A: Sellers are aware of Buyers financial obligations which includes earnest money, the down payment, the closing costs and now paying their Realtor®. That’s why most Sellers are willing to pay the Buyer Broker fees (and sometimes even closing costs) as part of the overall purchase price. As your buyer agent Realstar will make every effort to collect the compensation of the Buyer Brokerage fee from the Seller.
Q: Are there other Buyer Broker fees I have to pay?
A. Not when you choose Realstar. We don’t charge a retainer fee like other Brokers. We don’t add on junk fees like other Brokers either. We only get paid upon a successful purchase and closing, and we only get paid the one agreed upon fee. Your lender will talk to you about loan related fees and other closing costs.
Q: The Seller agreed to pay my agent, can I still get some closing cost help?
A. Yes. We have seen sellers pay Buyer’s broker commission, and thousands more to help offset overall buyer costs. Of course, the total amount a seller is willing to cover is dependent on the final sales price. Discuss options with your Realstar agent and your lender.
Realtors® remain committed to being the trusted advisor to homebuyers and provide their expertise to guide them in navigating the complex path to the largest and most significant financial transaction in their lives. More information can be found at facts.realtor