A brave new [real estate] world...

Over the weekend the long-awaited changes to the real estate commission structure went into effect.
 
There are three ways buyers and sellers are directly impacted:
 
Buyers
You will have to sign an agreement with an agent before viewing any properties and most certainly before submitting an offer. This agreement will outline where you are looking for a property, your timeframe, and the agent’s commission.
 
Sellers
Whether or not you are open to paying the buyer’s agent’s commission will no longer be listed in MLS. This means the commission you are offering will no longer be visible to potential buyers using popular real estate apps like Redfin and Zillow.
 
The commission – or seller concession -- can be listed on flyers, brochures, and a property website. It can even be listed in the seller’s disclosure packet as long as the disclosure packet is not linked in MLS.
 
Look for the key phrase: seller is offering or open to buyer concessions.
 
Open Houses
Visitors to open houses will be asked to sign an agreement stating whether or not they have an agent yet.
 
Does all of this mean that buyers will have to pay their agents outright? Most struggle just to find the funds for a down payment and closing costs... Not necessarily.
 
Buyers can fold a request to have the seller pay their agent’s fee into their purchase offer.
 
In a similar way, buyers can negotiate who pays closing costs (escrow fees, city or county transfer tax, etc.) or who pays for government-mandated point of sale items like a sewer lateral inspection or fire hardening/defensible space inspection.
 
What you offer to pay for or do not offer to pay for will of course impact the sales price. For sellers and buyers alike, make sure you look at the net proceeds after a sale and don't focus on offer price or commission as siloed items.
 
The Bottom Line
We have more flexibility and power in our negotiations going forward. Now more than ever crafting a clever offer – and being able to astutely evaluate the array of offers you’re likely to receive – is key to everyone walking away from a transaction feeling like they’ve won. 
 
Reach out to discuss how this may all play out in your own real estate goals.