Real estate commission change questions answered

HOUSTON – New rules for real estate commissions took effect last weekend in the wake of this year’s $418 million settlement between the National Association of Realtors and consumer advocates. The Houston Chronicle recently answered some of the more common questions.

What if I’m a homebuyer who wants to work with a real estate agent but can’t afford to pay one?

Homebuyers will have to pay their own agents, which could mean more upfront costs. No one is required to hire an agent, but there are options for those who do: Negotiate a lower commission; hire an agent for more limited services such as showing properties; in negotiations, ask the homeseller to pay the buyer agent’s commission.

Can homebuyers finance their real estate agent commissions?

A buyer cannot finance agent commissions through a mortgage, but a buyer could ask a seller to pay the commission of agents on both sides of the deal and raise the sale price appropriately.

Can a buyer agent take me on home tours without a signed contract?

No. Under the new rules, prospective buyers must contract with an agent before they’re taken on tours of properties.

What should buyers know before contracting with an agent?

Buyers should make sure they know what services they’re paying for, as well as the commission rate, and the market areas and time period covered by the contract. Homebuyers can sign short-term agreements spanning a weekend or just one home tour, said Holden Lewis, spokesperson at NerdWallet.Then, if it’s a good fit, the buyer can sign a longer-term agreement.

Can sellers still pay for buyer’s agents commissions?

Yes, and through Multiple Listing Services, sellers can advertise their willingness to contribute to concessions. The exact amount is publicly visible on HAR.com listings.

Can buyers’ agents find out how much a seller is willing to pay in commissions?

Yes, but buyers’ agents must contact sellers’ agents to confirm information about compensation, because it cannot be shared through Multiple Listing Services. Sellers are free to post information about the amount they’d pay buyers agents’ on personal websites or social media.