You've seen the news headlines... "NO MORE 6% REAL ESTATE COMMISSIONS", blah blah blah... Are those articles just  clickbait, or written by people with zero clue as to what is really going on, or are they actually true???

With that said, here is a video I made that kind of breaks down what is going on, and how it will affect us here in Utah. I highly encourage you to watch it. 

Buyer Agreement

Here is the verbiage that is in the current Utah Buyer-Broker agreement that is signed by every buyer in Utah. As you can see, we already let the buyer know that they are responsible for paying their buyer's agent *if* the seller is not offering to pay the buyer's agent. 

Seller Agreement

Now on to the sellers. Here you can see that there are two fees discussed... The TOTAL fee paid to the seller's brokerage, and the amount of that fee that will be paid to the buyer's agent (known as the BAC - Buyer's Agent Commission). As you can see, nowhere does it say that the seller must pay the buyer's agent fees. 

Is it wise for a seller to not pay a buyer's agent commission? That's something only the seller can answer, but of course in my opinion the answer is a resounding "no".

  • Most people are pre approved for a certain amount of money. Tacking on a buyer's agent commission could potentially put that house out of their purchasing range. 
  • Homes that are being financed MUST have an appraisal done. Tacking on a buyer's agent commission on top of the purchase price means you're buying it for more than the purchase price, and it quite possibly won't appraise for the higher price. 

At the end of the day, the seller doesn't really pay the buyer's agent commission, the buyer pays it. After all, the buyer is the one writing the check, not the seller. The commissions are taken from the seller's proceeds that the buyer and/or lender paid for the home. 

Much like you can try and sell your home for sale by owner (FSBO), you can certainly have your home listed on the MLS by an agent and not offer a buyer's agent commission. It is my opinion that you will most likely be more successful selling your home for the maximum amount in the quickest amount of time (each month your home is on the market, you are making mortgage interest payments, insurance, property taxes, HOA fees, utilities, maintenance, etc). A professional, full time seller's agent is going to get you the number you need even if you are paying a buyer's agent fee. 

Questions, comments or feedback? Let us know!