COMING CHANGES THAT IMPACT BUYERS

BUYER AGENT’S FEES

Traditionally, most San Francisco home buyers use a Buyer Agent. This is usually an easy decision because the seller pays the Buyer Agent‘s commission. In March, 2024, however, a proposed settlement between the National Association of Realtors (NAR) and a group of sellers meant that from August 17th, 2024, sellers are no longer required to cover Buyer Agent commissions, nor is buyer agent commission information allowed to be shown on Multiple Listing Services (MLS). In addition, buyers will be required to retain a Buyer Agent first in order to tour properties. 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.

After 17 August, 2024
At the time of writing this chapter, it’s believed that most sellers will still provide credits or concessions to help buyers cover their closing costs, including covering their Buyer Agent’s commission but they cannot advertise anything related to commission information this on MLS’s. I believe that most sellers in San Francisco are likely to provide concessions for covering Buyer Agent’s commissions through concessions or credit because if they don’t, they are likely to attract fewer qualified buyers.

Coming Changes That Impact Buyers
Before 17 August 2024 - No Change If you are planning to buy a property before 17 August, current arrangements will likely still stand, ie, the majority of sellers are still covering Buyer Agent’s commission.

Buyer Agent’s Fees

While it’s considered likely that most sellers will cover the Buyer Agent’s commission through the concessions offered to the buyers, if they are unwilling to do so, there’s still a lot of flexibility and room for negotiation. It's therefore crucial for you and your Buyer Agent to be strategic when making an offer, to ensure that it’s both competitive and that your Buyer Agent’s commission is still covered in the price offered! However, for your own protection, if you are using a Buyer Agent, you should discuss how they plan to bill their service if the seller does not offer any types of credit or concession. Remember though, no realtor is going to work for you for free!