2024 Big Real Estate Shake-Up: Who Pays the Buyer Agent?
March 17, 2024
By Elena Garrett, March 15, 2024
Hey folks, big news in the real estate world, and you’re gonna want to lean in for this one. Home buyers and home sellers are about to get front seats on a never-before-tested rollercoaster ride, and boy, are things about to get interesting.
Starting this June, we’re looking at a shake-up that hasn’t been seen in quite a while. Here’s the lowdown: Realtors who’ve been coasting on the fact that sellers pay their commissions are bracing for the changes brought about by the recent commission-related lawsuit.
From June onwards, the agents working to help the buyers buy the properties will need to strap on their thinking helmets and figure out a new game plan that would make a logics, financial, and legal sense for all parties involved.
Remember the good old days when buyers only had to worry about the laundry list of fees like inspections costs, appraisals, surveys, origination fees, interest rate buydown fees; credit report fees; preparation of loan documents fees; loan title policy fees, endorsement fees, loan-related inspection fees; one-half of escrow fees, upfront prepayment of interest and insurance premiums, reserve deposits, ad valorem taxes and special governmental assessments; final compliance inspection fees; courier fees; underwriting fees; wire transfer fees; expenses incident to any loan fees; Private Mortgage Insurance Premium (PMI) fees, and other miscellaneous home purchase expenses? Not to mention moving costs and remodel costs?
Well, the buyers will need to add another item to that laundry list because now, they might need to directly pay thousands of additional dollars their agents too. This could mean much more out-of-pocket expenses upfront, making the dream of homeownership a bit pricier or a bit more (logistically) hard to obtain.
This will all start to gain steam in June, smack dab in the middle of peak house-hunting season, with families looking to move while the kids are on summer break. And with these changes, there’s a cloud of uncertainty looming over buyers, sellers, lenders, and yes, us agents.
There will be a variety of challenges that will need to be resolved, both legal, logistical, and financial.
Now, here’s the silver lining. These ripples in the market are bound to settle down eventually, leading to new norms for brokers and lenders alike at some point in the future. But until then, it’s going to be a bit of a wild ride for everyone involved (and not just the agents!)
So, what’s your best move?
If you’re thinking of buying or selling your pad this year, my hot tip is to get ahead of the curve and aim to seal the deal before June rolls around. Avoiding the initial confusion and potential extra costs seems like a no-brainer.
For Home Sellers
If your home is in top shape and in a perfect location with a huge buyer demand, or you’re not in a rush at all, selling your home post-June might actually work in your favor (assuming that you do not need to buy a home for yourself, in which case you may yourself scrambling just like the rest of the home buyers out there).
But if quick and smooth is your motto, beating the June deadline could save you a headache or two.
For Home Buyers
These June changes might sting a little (or a lot) and change your calculations of when to move and how much to set aside for the move.
If possible, consider moving your plans up to dodge those higher costs.
Feeling unsure about how all this affects you?
That’s what I’m here for. Drop me a line, and we’ll figure out the best path forward together, making sure you’re set for success in this new real estate landscape. Let’s navigate these changes like pros and keep those home dreams alive and well.
