Buyer’s Agent Commissions - What should I offer?
In a typical real estate sale with a full service agent, the seller pays the listing agent a 6% commission, and half of that, or 3%, goes to the buyer's agent. With HomeLister, you get to decide how much you are willing to pay a buyer's agent. When you create your listing, you'll be asked how much you are willing to pay to a buyer's agent.
Part of the agreement to list on a Multiple Listing Service (MLS) is that you are stating upfront how much of the sale of your home will pay a cooperating buyer's agent. In order to be listed on the MLS, you must agree to show to buyer's agents, and pay buyer's agents a commission (if your buyer has an agent). You only pay this amount if you accept an offer from a buyer with an agent.
The buyer’s agent commission can range from 1% to 4%. We recommend offering 2.5%. Offering less than 2.5% will result in fewer showings and activity on your listing. We have seen that offering less than 2% results in a significant drop in showings. If your buyer doesn't have an agent and isn’t an agent themselves, you don't pay this commission to anyone, and it never comes to us.
It is always your choice who to accept an offer from. We recommend the 2.5% commission to increase the likelihood of offers from all buyers, and you can simply accept the offer that gives you the most cash at closing. We recommend receiving offers from buyers with and without agents and then choosing whichever gets you the most cash at closing. About two out of three buyers still use a buyer's agent, so a buyer’s agent commission helps get you the most buyers to consider your home for purchase.
It is important to note that you never have to accept any offer.
If you aren’t sure whether you want to pay a buyer’s agent commission on an offer, we recommend offering 2% to start, and then you can compare the offers made with agents and without and see which one gives you more cash at closing. If an offer from a buyer’s agent does not get you enough cash at closing, you are not obligated to accept the offer.