Navigating Buyer's Agent Commissions: A Seller's Guide to Maximizing Property Value

By Ron & Eva Cedillo

Ron and Eva Cedillo Broker/Owners of Home Buyers Realty that has 20 Top Producing Agents selling over 400 homes per year. They personally sell over 150 homes per year with their aggressive marketing campaigns that net sellers Top Dollar Fast. “If we don’t sell your home in a time we agree upon we will buy it.”

Discussions about real estate lawsuits have become a hot topic, prompting questions from both industry insiders and those on the periphery. One common question is, “Who foots the bill for the buyer’s agent?” Let’s dive into this aspect of real estate transactions and shed light on the current landscape.

First and foremost, it’s essential to note that California contracts stand out for their clarity on this matter, unlike some other states grappling with ambiguity. Presently, the traditional arrangement prevails – the seller bears the cost of both the buyer’s agent and the listing agent, a fact explicitly outlined in our contracts.

Viewing the buyer’s agent commission as an amenity for the property is a helpful perspective. Just like a renovated kitchen or a modern bathroom, compensating the buyer’s agent contributes to the overall value of the property. Opting out of this customary practice, while within your rights, means forfeiting this amenity and potentially diminishing the perceived value of your home.

In essence, not compensating the buyer’s agent is akin to having one less feature, like a pool or a stylish kitchen. This decision may impact the desirability of your property, as potential buyers might be less inclined to explore a home where their agent isn’t financially incentivized.

Moreover, it’s crucial to consider the current real estate landscape, which has been significantly influenced by manipulated interest rates. With limited inventory and a relatively low number of active buyers, sellers must carefully weigh the decision to withhold payment for the buyer’s agent. Doing so could potentially reduce the number of showings and limit the overall market exposure of the property.

In light of these considerations, it’s evident that sellers should approach the question of buyer’s agent commissions carefully. While we are transparent and forthcoming about this matter, our goal is to educate sellers so they can make informed decisions when the time comes to sell their homes. Sellers should recognize the value this compensation adds to their property, weigh the potential consequences of not participating, and make decisions that align with their goals in the ever-evolving real estate market.

If you have any questions, don’t hesitate to reach out to us by phone or email.