The Truth About Who Pays The Buyer’s Broker When Buying a House in Foreclosure. Paying Buyer’s Agents in Distressed Property Transactions I recently came across an insightful video discussing changes in how buyer’s agents are compensated, especially in distressed property transactions like short sales and foreclosures. The video makes some excellent points about the confusion surrounding this topic and how it can negatively impact homebuyers. In the past, listing agents would openly state on MLS listings what the offered compensation was for a buyer’s agent who brought a ready, willing and able buyer. However, new regulations that are coming up in August 2024, prohibit listing this information. Additionally, buyers must now sign buyer brokerage agreements with their agents, spelling out representation duties and responsibilities. This has led to uncertainty around how buyer’s agents will be paid, especially on distressed properties where banks and sellers are less motivated to offer compensation. The video host stresses this does NOT mean buyers necessarily have to pay their agents out of pocket. Buyer’s agents can still try to negotiate their commissions with banks and sellers. As a buyer, you can also negotiate your agent’s fees separately in your buyer brokerage agreement. The key takeaways according to the host: – Commissions and fees were always negotiable, there were never “set” prices – The changes mainly impact what information listing agents can display publicly – Buyers should sign buyer brokerage agreements to clearly define representation – Confusion around these changes hurts consumers more than anyone – Professional realtors will help buyers understand their options. I agree this is an evolving issue that warrants more clarity. As the host emphasizes, realtors should focus on guiding clients to understand the different scenarios instead of making outright recommendations. Well-informed buyers and sellers can then make decisions aligned with their goals. The video ends with an appeal to homeowners facing foreclosure to reach out for assistance. Given the host’s expertise in distressed properties, their services could greatly help those struggling with pre-foreclosure or short sales. If you found this breakdown valuable and want to hear the full discussion, you can find the video here Who Pays The Broker FEE When BUYING A FORECLOSURE House. I welcome any additional thoughts or insights in the comments below.
Who Pays The Buyer’s Broker When Buying a House in Foreclosure
Esphir Popilevsky
Published on May 28, 2024
