Changing Agent Commissions and How To Keep Up

An in-depth guide to understanding changing buyer commissions today. 

As a result of the recent lawsuits against the National Association of Realtors and brokerages, there are some changes coming up in the real estate industry that might affect how you are doing your real estate transaction. Whether you're a first-time homebuyer or have bought or sold homes in the past, it's important to be aware of these changes. Today, I will be talking about the biggest change in real estate—how agents get paid.

A recent ruling from the lawsuits against the National Association of Realtors and other brokerages has mandated a restructuring of how real estate agents are compensated. While the way we communicate with our clients at FYKES Realty Group remains the same, the industry as a whole has been criticized for lacking transparency about agent payments. Moving forward, the process will be more straightforward, which will encourage more upfront conversations between you and your real estate agent.

Traditionally, the listing agent negotiated the commissions, which the seller paid. Part of this commission would go to the buyer's agent, meaning the buyer indirectly paid for their agent through the home's purchase price. However, this system is shifting.

"The new system encourages upfront conversations about agent rates for smoother transactions."

Under the new rules, buyers will negotiate directly with their agents regarding their fees. Sellers will compensate the listing agent, while buyers will be responsible for compensating their own buyer's agent. While some agents will grapple with this change, for our team at Fykes Realty Group, this essentially formalizes the practice that we've always followed. Our team has always negotiated with buyers on agent fees and sought to have sellers cover as much of these costs as possible, minimizing out-of-pocket expenses for buyers.

Despite the changes, rest assured that our commitment to minimizing costs for buyers remains unchanged. We continue to negotiate effectively to ensure buyers are not burdened with unexpected expenses. Sellers, for their part, should also recognize the value of a competent buyer's agent, who can help bring more buyers and offers for the property, but will keep the transaction smooth and from falling apart.

The upcoming changes in the real estate market may seem scary to some, but with a trusted real estate agent by your side, navigating this evolving landscape becomes much simpler. At FYKES Realty Group, we excel in alleviating buyers' concerns about agent fees. Our extensive experience in negotiating with sellers ensures that this process is seamless and worry-free for our clients. While sellers may see some changes in how they offer compensation, they still have the flexibility to choose the level of participation and service they desire from us at FYKES Realty. We're here to guide both buyers and sellers through these changes with expertise and confidence. Call us at (615) 315-9223 - we are here for you every step of the way!