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IMPORTANT CHANGES THAT IMPACT MORE ON BUYERS THAN SELLERS!

CHANGES IN BUYER AGENT COMMISSION COVERAGE
Traditionally, most San Francisco home buyers have used a Buyer Agent, an easy choice since sellers typically covered the Buyer Agent’s commission. However, as of August 17, 2024, sellers are no longer required to cover Buyer Agent commissions, and commission information for Buyer Agents is no longer displayed on the Multiple Listing Service (MLS).

POST SETTLEMENTS
Sellers can no longer include or advertise any information regarding commission information for Buyer Agents on MLS’s. However, they are still allowed to help buyers with their purchase costs and this help can only be expressed in terms of credits or concessions. Buyers can use this “credit” or “concessions” to cover their closing costs, including covering their Buyer Agent’s commission.

In my dealing so far, most sellers in San Francisco are providing these credits or concessions. In addition, buyers will be required to retain a Buyer Agent first in order to tour properties outside open houses. If you choose to represent yourself, you will be required to sign documents acknowledging that in general terms, you are responsible for your own actions.

NAVIGATING BUYER AGENT COMMISSIONS AND OFFER STRATEGY
When sellers don’t cover the Buyer Agent’s commission through credits or concessions, there is still plenty of room for flexibility and negotiation. This is why it’s essential for you and your Buyer Agent to be strategic in crafting an offer that remains competitive and ensures your agent’s commission is covered within the purchase price. To protect yourself, if you're working with a Buyer Agent, discuss how they intend to bill for their services if the seller does not provide any commission credits or concessions. Remember, realtors don’t work for free, but there’s no fee or commission due to your Buyer Agent if you don’t close on a purchase. If you're representing yourself, check if the property price already factors in a Buyer Agent's commission, which could give you more leverage to negotiate a better price.