Reno Sparks Real Estate Market Update November 2020

To understand the changes, you need to understand how things used to work.

Historically, a seller’s agent (also called a listing agent) charged the seller a fee that was intended to be shared with the buyer’s agent. For example, the listing agent might charge the seller 6%. When a buyer closed on the transaction, the listing agent would share that 6% equally with the buyer’s agent, so that each would get 3%. This is referred to as cooperative compensation.

The amount that would be shared with the buyer’s agent (typically 2.5-3%) was posted on the Multiple Listing Service (MLS) database so buyers’ agents knew ahead of time what amount they would get. Potential buyers, like yourself, would typically work with buyers’ agents without a formal written agreement in place. The practice was that the seller paid the entire commission the buyer got the service of their agent for free. Even though it seemed that way, a buyer’s agent was never free. The fee was paid by the seller.

What Does This Mean for You as a Homebuyer?

Real estate agents are now likely to require buyers to agree to their commission fees in advance, rather than relying solely on the seller to cover these costs. This shift gives you more control, but it also requires you to be vigilant. If you don’t fully understand the terms, you could end up overpaying for services or committing to fees that eat into your home-buying budget.

The Assist2Buy program, we’re here to guide you through these changes and help you make informed decisions. With our expert advice, you can avoid unnecessary fees and protect your wallet throughout the home-buying process.

The Hidden Costs Buyers Need to Watch Out For After the Lawsuit Settlements

Many buyers don’t realize that the commission agreement they sign with their agent can have a profound effect on their total home costs. Here’s what you need to be careful about:

- Upfront Commission Agreements: Most agents will now ask you to sign a contract agreeing to their fees before they even start showing you homes. This can lock you in long term and require you to pay more than necessary.

- Impact on Your Home Price: What your agent charges in commission may not only affect you as a buyer, but it can also influence the seller’s willingness to negotiate. If the home seller has to pay more in fees, they will be less likely to lower their price and pay other costs. Be sure to understand how these fees can drive up the total purchase price of your new home.
- Transparency Is Key: These lawsuit settlements are designed to make real estate commissions more transparent. But with agents now openly negotiating fees with buyers, it’s crucial to understand exactly what you’re signing, how much you are obligated to pay, and if the services are worth the price.

How You Can Avoid Extra Costs in This New Real Estate Landscape

With the recent legal changes, it’s more important than ever for buyers to be savvy about commission fees. Here’s how we help you stay ahead

- Clear Breakdown Of Costs: We’ll walk you through how it affects your home purchase price, and where you can negotiate to save money.

- Protecting Your Budget: Don’t let unexpected fees derail your home-buying plans. Our experts will assist you and review agreements before you sign, ensuring you know exactly what you’re committing to.

- Transparent Guidance for Smarter Home Buying: We provide step-by-step advice to help you navigate this new commission structure and avoid being overcharged.

Contact Us Today For Your FREE Consultation - Here’s What We’ll Cover:

1. Understanding New Buyer Fee Agreements: We’ll explain how these lawsuit settlements are reshaping the way agents charge buyers and how you can protect yourself from hidden costs.

2. The Real Cost of Commission Fees for Buyers: We’ll help you understand how much you should expect to pay in agent fees and where you might be able to negotiate for better terms.

3. Avoiding Overcharges: Learn what to look for in commission agreements so you can ensure you’re not paying more than you should be.

4. How Agent Fees Impact the Entire Transaction: The fees your agent charges could affect not only your budget but the overall negotiation with the seller. We’ll show you how to keep these costs in check.