Explain your fee before anyone has to ask
In most cases buyers now sign an agreement that states your fee before they tour a home with you. A one-page handout that explains it in plain words, with real dollar figures, makes that conversation shorter and calmer.
What the handout says
- Your fee, as a percentage or a flat amount, and what it comes to on an example price.
- That it’s negotiable and not set by law.
- Who pays. Sellers often agree to pay some or all of it, negotiated home by home. Never promised.
- What happens if a seller offers less, with the dollar difference and the buyer’s three options.
- What you do for it.
What to keep off it
- “Free” or “no cost to you”. You can’t describe your services that way if anyone pays you.
- “The seller pays my fee” as a blanket statement.
- “Standard” or “typical” rates. There is no standard rate, and talk of one can raise antitrust questions.
Make sure every line matches your actual agreement, and have your broker approve the page. New Jersey requires “In New Jersey commissions are negotiable” wherever rates are mentioned, and the handout adds it for you. More wording is in how to explain your commission to buyers.
Questions agents ask
How do I explain my commission to a buyer?
State the fee as a specific amount, show it in dollars on an example price, say it is negotiable, and explain that sellers often pay some or all of it but that this is negotiated on each home.
Can I tell buyers my services are free?
No, not if you will be paid by anyone. Under the REALTOR® Code of Ethics you can’t describe brokerage services as free unless you receive no compensation from any source.
What happens if the seller won’t pay the buyer’s agent?
The buyer can ask the seller to cover it in the offer, pay the difference at closing, or agree with their agent in writing on a different amount.