DMV home sellers can save some cash, if they speak up
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Illustration: Natalie Peeples/Axios
When headlines broke about the National Association of Realtors settlement, sellers called their agents wondering: Am I off the hook to pay you?
Why it matters: Sellers never technically had to offer compensation to the buyer's agent — and that number has technically always been negotiable — but it's certainly status quo.
Catch up quick: The idea behind the settlement is that buyers should be paying their agent, but sellers can still offer some form of compensation.
The big picture: Most agents say that each transaction is going to involve a lot more back and forth with consumers come August. However, many are still urging sellers to offer some form of compensation to buyer's agents.
- Steve Brobeck, a senior fellow at the Consumer Federation of America, is recommending sellers offer no more than 2% of the sale price to the buyer in concessions. The buyer can choose to use those funds to compensate their agent, or pay out of their own pocket.
What they're saying: DMV home sellers are savvy, and many have already started asking about commission structure changes — especially since buyer agreements are already in place here, Chris Suranna of Metro DC Houses tells Axios.
- A good agent knows their reputation is on the line and is incentivized to ensure their client is clear on compensation structure before signing a deal, he says.
- There's going to be more upfront communication, "which I don't think is a bad thing," Suranna says.
Reality check: According to a 2023 NAR report, 15% of consumers didn't know they could negotiate a commission. That share is much larger (31%) among younger buyers, ages 24-32.
What's next: By Aug. 17, listings on the MLS won't include offers of compensation.
- "[Change] will take place slowly, and unevenly, with lots of confusion," Brobeck predicts.