What to Pay Your Real Estate Agent
A settlement that stands to do away with real estate commission rules is rewriting the playbook for home buyers.
Home buyers have long been told they have one way to work with a real estate agent. Starting this summer, they are poised to have many.
Buyer Options
One option is to select an agent’s services a la carte, paying them to help negotiate or find listings.
Others will still pay for a full-service agent who manages the entire process.
Some buyers will try to save money by forgoing an agent altogether and doing the work themselves.
No one knows yet how much some of these options will cost buyers. Figuring that out will involve answering some key questions: What do I need a real estate agent for, and what are those services worth to me?
A home is the largest purchase a typical family makes. With surging home prices and high mortgage rates it has gotten larger. The purchase process stands to change because of a March settlement by the National Association of Realtors. This could unravel the long held 5% to 6% commission sellers paid to the agents.
What an Agent Does
It’s important for buyers to understand what an agent will do for them. They help buyers find desirable homes, negotiate the sales price, write the offer and close the deal. An agent also connects buyers to other professionals, such as inspectors or insurers. They are trained to ask questions about potential pitfalls, such as a poor septic system, and know the local market. That could help the buyer land on a reasonable price.
Figure out What You Need
No matter what, it can be costly. Buyers might agree to pay thousands of dollars out of pocket to hire a real estate agent. Or they could wind up overpaying if they go without an agent and don’t negotiate the home price.
Some tips for DIY buyers:
- Have a clear understanding of why a home priced significantly more or less than comparable homes in the area.
- Sellers are typically required to disclose any known issues with their home. Also to disclose any remodeling work they have done.
- You might need to find a closing attorney to review the contract and oversee the closing. Attorney fees vary.
- Get an inspection. An inspection might uncover problems with major systems of the home.
There is definitely a VALUE to hiring an agent when purchasing or selling your home.
