By Deborah Wade
Buying or selling a home has always been a complex and often stressful process. For decades, residential real estate transactions followed a pattern: the seller paid a commission that was split between the listing agent’s brokerage and buyer agent’s brokerage. This practice was upended in August when a new real estate law was implemented, creating a “Wild West”-type atmosphere for sellers, buyers, and real estate agents.
Sellers must now decide whether to pay the buyer’s agent a commission and, if so, how much. Buyers must now negotiate compensation for their agent’s fee rather than relying on the seller to handle it behind the scenes. Some agents may charge flat fees, while others may charge hourly rates. The same services and tasks need to be performed to buy or sell a home but the exact services and what you pay are open to negotiation.
The new law was designed to provide more transparency for consumers but it also means, now more than ever, you need to be a “smart shopper.”
As a seller, it’s critical to understand what services a real estate agent offers; how they plan to sell your home, and how they will advocate for you. Interview several realtors and ask specific questions about their marketing strategies and experience. Have an in-depth conversation with each agent and request a detailed list of services they will provide for their fee.
If you want to buy a home, the same interviewing process should take place. A buyer’s agent can provide considerable value to a homebuyer but unless an agent can spell out exactly what they will do for you, find another agent. Be clear about what you’re willing to pay, what services you expect, and how compensation will be paid.
It’s expected fees and services offered throughout the real estate industry will eventually become more standardized but by taking the time to interview agents, compare offerings, and negotiate terms, you can still successfully sell or buy a home in the new “Wild West” of real estate.
About the author: A Senior Real Estate Specialist with Re/Max Executive, Deborah Wade has helped Central Maryland “boomers” and their families transition through the changes life brings for nearly two decades.
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