Home Buyers Guide -v.3

BUYER COMPENSATION Ways realtors get buyer compensation

With the recent NAR changes, buyers now have several options for compensating their agent if the seller does not cover the buyer’s agent commission. Here are the main options:

Cash Payment at Closing: The buyer can pay their agent’s commission directly as part of their closing costs. This would be a separate payment from the down payment and other fees. Reducing the Down Payment: Buyers can adjust their down payment amount to allocate funds for the buyer’s agent commission. For example, if they planned a 10% down payment but need to pay a 3% commission, they could opt for a 7% down payment and use the remaining funds for the commission. Negotiating with the Seller: Buyers may negotiate with the seller to cover all or part of their agent’s commission, particularly in a competitive market. This can be structured as part of the purchase offer, where the seller pays a portion of the buyer's agent fees. Rolling into the Loan: Depending on the lenders’ policies and the loan structure, buyers may be able to finance the commission by rolling it into their mortgage. This option depends on the buyer's financial situation and the loan terms.