Traditionally, seller’s and buyer’s agents have collected a fee of 6% (3% each). However, new regulatory changes require the buyers to pay for their own agent, unless offered by the seller or negotiated by the buyer.
This was of particular interest to my wife and me because we had just started looking for a home. So, we decided, “Why not? We want to learn how this works. Let’s go without an agent and see if we can save some money.” Did it save us (or the sellers) any money? Nope.
The deal was competitive (3 offers after 3 days on the market), so we paid the full list price — we didn’t save 3%. However, what I learned next disturbed me. The seller most likely didn’t save 3% either! But how?
Seller agents/brokerages across the nation have amended their listing agreements. If the seller’s home is sold to an unrepresented buyer, then the agent will take an additional X% (could be 0,1,2,3%) to compensate for additional work and liability.
Yes! The seller’s “fiduciary” could still take 4-6% even if the buyer is unrepresented.
But I ask: What extra work? What extra liability? The seller’s agent didn’t rewrite my purchase contract.
They just treated me like a buyer’s agent. Oh, wait, they did do one additional thing. They sent me a one-page boiler plate “unrepresented buyer’s disclosure” form to sign (so they could collect the additional fee) — that’s an expensive piece of paper! As far as liability goes ... I’m flabbergasted. Please tell me how you are more liable? Que the public gaslighting.
Sellers, please carefully read your listing agreement. Don’t pay extra for selling to an unrepresented buyer! It’s your money! I’m losing sleep because you just paid thousands of dollars extra for no meaningful additional work.
Dane Nielson, South Jordan
