Do homebuyers now have to pay for their buyer agent's commission?

The short answer is NO, homebuyers are not required to pay for their agent's commission fee. And quite frankly, they should never have to do so under any circumstances.

With the new National Association of Realtors (NAR) ruling, real estate agents and brokers are now required to have their home buying clients sign a "Buyer Representation & Broker Compensation Agreement" that outlines the amount a homebuyer must pay if the agent/broker successfully helps them buy a home. This is a standard industry document that cannot be altered, but it can be amended in an addendum.

Most new homebuyers will read the Buyer Representation document and be overwhelmed, not really know what it means, and just end up signing. That is usually going to be okay, but they should actually take some time to really comprehend the agreement and request to have any of the terms adjusted to their preferences. The terms may be pre-written, but they are all negotiable.

If there are any sections that you as a homebuyer do not agree to, you have the right to request an addendum be included that outlines the terms you would like to be changed in your favor. If your agent/broker refuses to agree to your request, then you may want to consider getting another one that will.

The specific sections that outline the compensation the buyer's agent are Section 2E(1) & Section 16. The amount will likely be 2.5%, as that is pretty standard in the Bay Area. Prior to the NAR ruling, it was common practice that the seller would pay for both agents'/brokers' commission fees from their sales proceeds. Now, this has become an unknown whether the seller will offer to pay or not. So far, sellers mostly still do, but the Buyer Representation Agreement is supposed to help ensure that the buyer's agent still gets paid, either from the seller or buyer.

SO WHAT CAN YOU DO TO ENSURE YOU DON'T PAY THE COMMISSION FEE?

Get it in writing. Request an addendum that clearly states that you as the buyer will not be responsible for paying the buyer agent's commission in the event that the seller does not offer to do so.

Again, some agents/brokers may fight you on this and disagree, but that should be a red flag. You don't want your agent/broker to filter out potential homes that may fit your criteria because the seller doesn't pay a commission. As the agent, of course they want to get paid for their time & service - but as the buyer, it's not your obligation to be the one to pay them.

When you buy a home through Reebate, we never charge you any fees and do not expect you to pay us for representing you. As a homebuyer in the Bay Area, you're already paying enough to get the home, you shouldn't have to be worried about having to pay your agent or broker too.