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Realtor Compensation and what I charge for services.

Here’s a breakdown of how Realtors get paid, what I charge, why you need a Realtor, and different scenarios of how a purchase or sale can play out. The new compensation rules, effective August 1, 2024, can make things complicated, so I wanted to clarify everything. Below, you’ll find an overview of how we got here.

Here’s an example of how a seller and a listing agent work together to structure a commission for both the listing agent and a potential buyer’s agent. This process is still evolving, but I have a plan. Most buyers will have their own agent, but when a buyer comes directly to the listing agent, it can become complicated. The listing agent must carefully balance fiduciary duties. While this scenario is less common in Arizona, it may occur more frequently in the future. Listing agents typically won’t draft a contract for a buyer without going through the entire process, as this adds significant responsibility and regulatory risk.

The 1st page of the Listing Contract when selling your home.

When navigating the real estate market, hiring a professional Realtor is essential to ensure you’re not taken advantage of by companies like Opendoor, savvy investors, wholesalers, or even well-meaning friends and family. While selling directly to a buyer might seem appealing, the reality is often less favorable. As someone who regularly monitors the MLS and assessor’s office websites, I’ve seen firsthand how homeowners who opt for off-market deals often receive far less than their property’s worth.

Homeowners who are hesitant to have people in their homes, lack alternative housing options without the proceeds from the sale, want to avoid repairs, or seek a quick cash transaction are particularly vulnerable to being underpaid or even scammed. While there have been instances where companies like Opendoor have offered competitive prices, it’s important to note they charge as much as 7% in fees.

Additionally, the complexity of real estate forms and contracts has significantly increased, making it harder for sellers to navigate the process alone. By hiring a trusted Realtor, you can focus on the net amount you’ll receive—a figure that, after commissions, is often higher than what you’d get by selling on your own. Plus, a Realtor handles all the work, giving you peace of mind and ensuring a smoother transaction.

When selling your home, take the time to interview Realtors and find someone you trust. A good Realtor will not only protect your interests but will also help maximize your financial outcome.

Since the new compensation laws took effect in August 2024, buyer agents’ compensation will no longer be listed on the MLS. Now, buyer agents must have an agreement in place with their buyers to show the property. What does that mean for you? When receiving an offer, the compensation for the buyer’s agent will be included as part of the offer package, so it will vary depending on the offer. This can get complicated, but when discussing whether to accept an offer, we’ll focus on the entire NET amount you’ll receive. I’ll walk you through all of this during the listing presentation.

Learn about the new laws affecting compensation, effective August 17, 2024.

Realtor compensation has always been negotiable. If you’d like to explore all these scenarios to maximize the amount in your pocket, let me create a personalized plan and discuss it with you. Call or text me at 480-466-4917.

Let’s get your house sold so you can move on to the next chapter of your life.

Sincerely,
Jay Bru
jay@jaybrugroup.com
480-466-4917

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