I'm now offering $3,000* Flat Fee Representation for Home Buyers in Florida & Virginia
(*Plus brokerage fee of $395)
On March 15, 2024, the National Association of Realtors (NAR) put out a press release detailing the settlement it hopes to reach in the lawsuits that have been filed against it regarding how Realtors get paid and who pays real estate agent commissions.
According to NAR, they have "agreed to put in place a new rule prohibiting offers of compensation on the MLS. [...] This change will go into effect in mid-July 2024." It is anticipated that this will lead to a change in the way buyer's real estate agents receive compensation.
Previously, home buyers did not need to worry about paying their own agent directly, as all real estate commissions were paid for through the seller at closing. While it's up for debate whether this means the buyer or seller ultimately paid, it is generally accepted that this meant the seller was paying for the buyer's real estate agent. And that's how it looked and felt to home buyers as there was no extra line item on their closing cost disclosure about paying a Realtor fee.
What does all this mean for future home buyers?
If home sellers decide to stop offering buyer's agents a commission, that cost will be passed onto the buyers. Buyers will have to make the choice: pay an agent out of their own pocket or buy a house without any professional representation. The buyer could still try to negotiate that the seller still pay for their agent's commission, but it may make their offer less competitive or the seller may just not be willing to pay it. Home buyer's will have to go into the process understanding that a seller may not be willing to pay their agent.
While there is no "standard" commission, many buyer's agents have agreements with their clients that the home buyer will pay anywhere from 1% to 3% of the home's purchase price. On the average home price in Virginia, that could be up to $10,000 or more, depending on the area.
Why pay for a buyer's agent?
Anyone who has worked with an unsatisfactory Realtor in the past knows how important it is to work with someone credible and experienced. A great agent will help you start the mortgage process, keep you on track, help you understand your legal obligations under the contract, advise you on how to proceed, negotiate on your behalf, help coordinate inspections, and more. Without an agent, you could lose your escrow deposit or more if something goes wrong during the transaction.
What options will buyers have?
A buyer will either be able to pay their agent a flat fee or a percentage of the home sale price. The amount they will have to spend depends on the kind of services they want included. Every agent will have different pricing options, but I am outlining mine below.
FLAT FEE
For $3,000 (plus a $395 brokerage fee), I offer an affordable flat fee option for buyers anywhere in the states of Virginia or Florida. If you want a professional, experienced real estate agent to write your contract, advise you on terms, help you through home inspections and negotiations, get you connected with a mortgage lender, and help you smoothly and successfully close on your home, I can do that for a flat price.
That sounds like a pretty comprehensive list of things to offer, so what's the catch? In an effort to save you money, I will not be available for home showings or other in-person meetings. A large portion of a buyer's agent's expenses come from the travel and time associated with showing homes and being present in person. By offering my services virtually, I can cut down on my expenses and pass that savings along to my clients. I love what I do and believe in the power of homeownership, and do not want someone to have to forgo representation because they cannot afford a percentage based commission fee.
As needed, I can help you find a local agent that you can pay directly per showing, or you can attend open houses or contact the listing agent or seller to show you the property. If something else requires the presence of a licensed real estate agent (for example, a home inspection), I can help you coordinate that.
PERCENTAGE OF SALES PRICE COMMISSION
I also offer full service options that include everything mentioned above, plus me meeting my client in person for showings, inspections, and closing. I charge 2.5% of the purchase price for homes over $350,000 and a flat fee of $8,000 for any home under that price. I offer this service in Arlington county, Alexandria county, and east Fairfax county in Northern Virginia.
In either situation, I will always try to negotiate that the seller cover my fee. But if they won't, the fee must be paid by the buyer.
Why are you offering a flat fee buyers Realtor services?
I do not want to see home buyers take the risk of going unrepresented because they couldn't afford an agent. I have been fortunate in my real estate career to have helped almost 300 clients and sold $100+ million of real estate. I have been in the real estate business since 2014, and I'm passionate about this industry and love helping people obtain the American Dream of homeownership. So I am offering my services at a much reduced rate in hopes that it helps those buyers who have no other options.
What should I do if I want to hire a flat rate Realtor?
If you are interested in hiring me as your real estate agent to buy a home anywhere in Virginia or Florida, please reach out to me today and you should hear back from me within 24 hours (even on the weekends). If you are in another state, still reach out to me as I can put you in touch with a qualified colleague.
What are your actual thoughts on hiring a set price real estate agent when buying a home?
While I would always prefer a home buyer get the chance to work in person with their Realtor, I understand that there will be a need for affordable and flexible professional help for home buyers as we transition to the "new normal" of real estate agent commissions. Having your own representation, even with a virtual-only service agreement, ensures that your interests are prioritized throughout the transaction. This can protect you from potential conflicts of interest that may arise when dealing solely with the seller's agent.
In a perfect world, home buyers could have full service representation from a full time real estate agent and not have to add to their upfront closing costs to do so. But as that may start to change in the near future, it is more important than ever that home buyers be aware of their options for representation and the true costs of being professionally represented when buying a home.
Is there anything else I need to know?
In order to make sure this program will be the right fit for you, I require a phone consultation to make sure we can work together in a way that you will ultimately be happy with.
If you have been working with another real estate agent, we will need to discuss what agreements you may have signed with them to see if I can help you. You may have obligations under a prior agreement to pay them.
Also, please note that as of April 2024, federal lending laws currently prohibit VA buyers from paying their real estate agent directly. So if a seller cannot cover the cost of your buyer's agent commission, you cannot use a service where you have to pay your Realtor directly.
Questions? Contact me at any time to see if this service would be a good fit for you, or if you are thinking of selling your home in Florida or Virginia.