New rules for commissions and their disclosures have gone into effect this month, but what do they mean for buyers, sellers and their Realtors? Berkshire Hathaway Broker Henri Gourd explains:

“Ready or not, here it comes. Effective August 17, the primary tool Realtors use to share listings is no longer disclosing the amount of commission the seller’s side will be sharing with the buyer’s agent. This will affect both buyers and sellers. Historically, buyers paid their agent through the sale proceeds, which were channeled from the seller through the listing agent. After August 17th, a buyer’s agent will have to contact the listing agent to determine how much, if anything, the seller is willing to pay toward the buyer’s agent’s commission. To the extent that the seller does not cover the buyer’s agent feeds, the buyer will then be directly responsible for paying the difference.

Failure to offer compensation to the buyer’s agent may feel like a money-saving move, but it may also reduce the number of potential buyers who see the property. Some buyers may not have the additional funds to pay their agent out-of-pocket, and if the buyer’s agent is not getting paid, there is no incentive to show the property. All is not lost. A buyer can still request their agent be paid from sale proceeds when making an offer—or that certain concessions be made to at least partially compensate the buyer’s agent. Time will tell how the new disclosure practice will affect the industry, but we know for certain that an agent skilled in negotiation will be in even greater demand.”

Have a question for a local Realtor? Ask it here: welcomehome@theday.com

Henri Gourd, Broker Associate

Berkshire Hathaway Home Services

New England Properties

Mobile: (914) 954-3897

henrigourd@bhhsne.com