The Condo Mania Team
Phoenix Condo ManiaNews > What Sellers Need to Know About Commissions
2024-11-02
In Arizona, both a buyer's agent and a seller's agent are frequently involved in real estate transactions to give representation to both parties. The amount you agree to pay your Realtor® when you choose to sell your home, condo or townhome is stated in the contract you sign with that agent. What some sellers find confusing however is why they might be asked if they would like to cover the buyers agent's compensation rather than the buyer paying for it.
Beginning in August 2024, Realtors® are not permitted to post in the MLS or on any other public real estate website the amount that a seller is willing to pay a buyers agent for a closed transaction in which the buyer is represented. Also, buyer agents must sign an agreement with their buyer clients before a first showing that spells out the compensation to be paid to the buyer's agent upon closing. During contract negotiations, buyers will consider how they want this cost to be paid and may ask the seller to pay that compensation.
First, know that sellers are not required to pay the buyer's agent commission at closing. Paying compensation to a buyer agent could be one of the many negotiated terms sellers can negotiate in a purchase contract. If and how much you wish to pay the buyers agent is up to you. Your listing agent can help you make a wise decision on all negotiated items based on your goals.
So why would a seller want to offer to compensate the buyers agent? Total closing costs and a down payment can add up for the buyer and prevent first-time and low- to middle-income buyers from buying a home. A compensation offer is only one component of the entire package that can be negotiated with a buyer along with other things like the purchase price and loan closing costs, so even if the buyer can pay for their own closing costs, the seller may offer to cover a portion of the buyer's closing costs in order to sweeten the deal for the buyer.
For a free estimate of the value of your condo or townhome and any other questions you may have about the selling process, contact our team of knowledgeable and experienced condo agents. We can assist you in selling your townhome or condo in accordance with your objectives.
Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.
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The Fair Housing Act prohibits discrimination in housing based on color, race, religion, national origin, sex, familial status, or disability.
Information Deemed Reliable But Not Guaranteed. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This information, including square footage, while not guaranteed, has been acquired from sources believed to be reliable.
Last Updated: 2024-11-20 00:46:21