Quote:
Originally Posted by Plinker
On August 17th a new real estate law will go into effect which will no longer allow realtors hired by the home seller to list the commission the seller will pay to the buyers realtor. In short, the seller will negotiate the commission with their realtor and the buyer will negotiate their end of the commission with the buyer’s realtor. Seller and buyer pay their own fees. The savings could be huge.
Instead of the seller paying a 5-6% commission to be split between seller and buyer agent, the seller could negotiate a 2 1/2 - 3% commission with their realtor. On a $500,000 home the seller would pay $25,000 - $30,000 under the old law and “only” $12,500 - $15,000 under the new law. Double this for a $1,000,000 listing, etc.
I spoke with a Village Realtor concerning pre owned homes and was told they are maintaining the 5-6 % commissions.
Will this cause Villagers to choose MLS if selling their home? Will FSBO sellers now be more willing to hire a realtor? How do you think this will play out?
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This cuts in half the commission the seller pays, as the buyer’s agent no longer splits the commission with the seller’s agent 50/50. Great! That saves you a bundle when you sell. But if you then BUY a house, you now have to pay 3% to the buyer’s agent, whereas before the seller paid. So if you both buy and sell, you come out the same. Of course, if you have to pay for that additional 3% by taking out a larger mortgage, you pay off that amount by mortgage for many years.