Is Paying Your Buyer’s Agent Worth It?

By Mike Gray

When it comes to providing peerless customer service and fulfilling the needs of his clients, if Michael Gray tells you that “the sky’s the limit,” he’s not kidding. Formerly an airline pilot, where attention to detail and focus are crucial and following a process is absolutely necessary to achieve proper results, Mike learned early in his real estate career how well those skills transfer and how important they are to the buyers and sellers with whom he works.

In case you haven’t heard, the real estate market has shifted significantly. A court recently ruled that the existing buyer’s agent commission structure was unlawful. Traditionally, the seller would pay full commission to their agent, who would then share that with the buyer’s agent. This meant that buyers didn’t have to pay out of pocket for agent representation.

This brings us to the question: Do sellers still need to pay the buyer’s agents when selling a home? Technically, no, but it’s negotiable. However, offering a buyer’s agent commission has several advantages. Today, I will share the five key benefits of paying buyer’s agent commissions:

1. Prevent complications. Making it clear that you are willing to pay the buyer’s agent upfront and agreeing on a rate early can avoid delays, potential sale issues, or possibly paying much more later. Clear communication will help in avoiding confusion and unnecessary negotiations down the line.

2. Competitive pricing. Working with a buyer’s agent can help you set a competitive sale price as you list your home. Looking at what buyer’s agents are paying in the area gives you valuable insights into whether your house is priced accurately, leading to a faster home sale.

3. Signal seriousness. A higher commission rate will show that you are committed to selling your home quickly and effectively. Working with your agent to determine a balanced and competitive buyer’s agent rate can increase your chances of a timely sale.

4. Strategic move. While you may think that negotiating with a lower commission later could save you money, this approach can backfire. Potential buyers may be less likely to show interest if their agents won’t be compensated, delaying the process and limiting your negotiating power.

5. Attract more buyers. Offering to pay commissions incentivizes buyer’s agents to show your property, increasing buyer interest and multiple offers. This can potentially lead to a higher selling price.

If you’re confused about the changes, we’re here to help. If you have any questions about commission as a buyer or a seller, contact me at (832) 428-6453 or mike@themikegrayteam.com. I’d be happy to talk with you.