Do I have to pay a commission to the Buyer’s agent?

Yes and No.  Commissions are always negotiable and you do not have to offer a commission to the buyer’s agent if you don’t want to.    That said, our local MLS requires at least a nominal amount and we’ve seen as low as $250.

We usually recommend offering 2.5% or 3% so that agents are fully incentivized to show and sell the home.*  You are free to offer less but understand that at some point it may be counterproductive.  Offering less presents the risk that some agents will avoid showing the listing or will encourage their clients to pursue a different property instead.  There’s also the reality that it’s helpful to incentivize the buyer’s agent to keep their clients focused and on track as we work through inspection, appraisal, underwriting, and other matters.  Offering a low commission can risks diminishing that incentive.

* For homes priced above $1 million, it’s not uncommon from commission rates in our local area to be at 2.5% or lower and we subscribe to common practice at those price points.

Posted in: Selling Questions