Recently perceived changes to the structure of real estate commissions haven’t really changed things much at all. This was noted in the Professional Insights article published in the Dec. 18, 2024, issue of the Hopkinton Independent. Many home buyers have long had the misconception that it benefits them to negotiate directly with the seller’s agent rather than use their own buyer’s agent.

Some buyers believe that by cutting out the buyer’s agent, they can get some or all of the offered buyer agency commission. That’s not necessarily the case, as it creates extra work for the listing agency. Licensed agencies are never obligated to share a commission with an unlicensed buyer. After all, kickbacks are illegal, and buyers who believe they’re entitled to a licensed agent’s commission are mistaken.

When buyers feel entitled to that commission, they may make lowball offers to make up the difference, which can lead to them losing out in multiple-offer situations. It may be hard for them to understand that the listing agency already has pre-negotiated the commission with the seller of what they will be paid if the buyer comes direct, as now the agent has more work to do to keep the deal together when having to manage and oversee a buyer’s process and expectations.

Buyers are advised to keep their existing relationships with buyer agents, to explore the benefits of having an agent and to consider making fair market value offers in order to “win” the house in multiple-offer situations.

It’s unwise for both buyers and sellers to underestimate the value of their agents to keep the deal together. Statistics show that buying or selling a home can be as stressful as a death in the family. It’s the real estate agent’s job — and their goal — to manage stress and expectations by educating their clients; helping them understand their rights as well as understanding and communicating the working of home systems; understanding well and septic systems that may be foreign, scary or overwhelming for buyers who never had them; doing due diligence when it comes to meeting health, conservation and building departments’ requirements; understanding the condition and risks of the home; dealing with inspection and safety issues; determining the value of the home; and working with attorneys and mortgage companies to ensure a smooth transaction and get you to the finish line.

Buyers and sellers may go through the home sale process once a decade, but your agent navigates the process on a daily basis. Rely on their expertise and experience, as those are invaluable to help you prepare and price a home, create a competitive offer and keep the transaction together, especially when dealing with difficult clients and unexpected snags such as home inspection and title issues.

Homes sell for what the buyer is willing to pay and the seller is willing to accept. Paying your agent fairly gives them incentive to work hard for you. There is no standard commission rate, so if an agent’s rates are different than others, ask what services their rate includes or cuts out.

Hard-working real estate agents who know the value they bring to the table and refuse to compromise their high level of service deserve fair compensation, and they’ll ensure you have an enjoyable home buying or selling experience.

Kim Foemmel 

Foemmel Fine Homes

1 Lumber Street, Suite 207 C

Hopkinton MA

(508) 808-1149

FoemmelFineHomes.com 

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