Call

(732) 845-1991

Email

[email protected]

Schedule a Call

calendly.com/pinkymortgage/dreamsandgoals

Application

pinkymortgage.com/apply

Add To Contacts

Download vCard

  

Consumer’s Guide to Navigating Buyer Agent Compensation

Navigating Buyer Agent Agreements and Compensation

The recent settlement involving the National Association of Realtors (NAR) is significant and could have considerable implications for consumers in the homebuying process. 

Here's a breakdown of the potential ways that your compensation can be navigated and you can still have professional representation. If you want to review your scenarios, we are happy to provide time to help you understand your options. You are welcome to schedule your dreams and goals call to discuss your individual situation using this link.


1. Seller Compensates Both Agents Equally (Same as prior to NAR Settlement)

  • Description: The seller agrees to compensate the listing agent and the buyer's agent individually
  • Key Point: This compensation structure must be disclosed to both parties. Unlike previous practices, it clarifies that the seller is paying both agents directly.

 

2. Buyer Reduces Down Payment to Pay Buyer's Agent Commission (Finance in Mortgage Balance)

  • Description: As a buyer, you offer a fair purchase price but reduce your down payment by using these funds to pay the buyer's agent commission.
  • Financing Adjustment: Your lender will help you adjust your financing to allocate funds for the agent's commission from your down payment.

 

3. Buyer Increases Purchase Price to Cover Buyer's Agent Commission (Built into Purchase Price)

  • Description: As a buyer, you increase the offer price and request that the seller pay this increased amount as the buyer agent's commission.
  • Mechanism: The increased purchase price covers the buyer's agent's commission, effectively transferring the cost to the seller through the transaction.


4. Buyer Pays Buyer's Agent Compensation in Cash

  • Description: The buyer agent negotiates the best purchase price and you pay your agent's commission in additional funds to close.
  • Buyer's Action: As a buyer, you directly compensate the buyer's agent without increasing the transaction amount which means you’ll need additional funds to close.


5. Seller Compensates Listing Agent and Partial Buyer Agent (Blended Option)

  • Description: The seller pays the listing agent's full compensation and only a portion of the buyers agents agreed upon compensation.
  • Buyer's Responsibility: As a buyer, you sign a Buyer Broker Agreement agreeing to a total commission for their agent and the seller isn’t willing to pay the full amount. You will cover the remaining difference using options 2, 3 or 4 above.



Conclusion:

The NAR settlement has the potential to significantly shift how real estate transactions are conducted, with greater transparency and possibly lower costs for consumers. As the market adapts, there will be bumps as everyone learns to operate in this new environment. Homebuyers and sellers will need to be more informed and proactive in understanding these changes to maximize the benefits during their home buying or selling process, and work with professionals who can help you navigate this new landscape. Schedule your dreams and goals call to discuss your individual situation using this link.



Your Partner in Success,

Pinky Shah, Certified Mortgage Planning Specialist & Certified Mortgage Advisor





Share

Reviews

"The Pinky Shah Mortgage team is the literal definition of a team. I started my home-buying journey when I was selling my NYC apartment. My agent passed along Pinky’s contact info, and it was likely the best recommendation I’ve ever received. That may sound like a big statement, but Pinky has proven it to be 100% accurate. From our first Zoom call to my post-closing follow-up meeting, I knew I had found someone truly worthy of the term “team”. I jokingly called Pinky and everyone at the Pinky Shah Mortgage Team my “adult supervision”… because let’s face it, when purchasing a home, which is probably the largest investment I will ever have, it’s nice to know I have someone to hold my hand and guide me through not just the steps it takes to get to the finish line, but continue to guide me through what comes next and beyond. Throughout my year-long home search, there were a few homes I made offers on. In this volatile market, those offers didn’t pan out, however, her team never missed a beat, making sure I had not just a pre-approval but a strong offer with underwritten proof of my mortgage so that I could go to the table as strong as any cash offer. One year later, after I found my home, Pinky’s team was there to get my loan secured and clear for closing a week earlier than projected. No review is complete without a pro/con list: PRO: -Her team is incredibly responsive and kind! -There is no such thing as a dumb question (and I had many). -I never felt in over my head (because anyone buying a home in this crazy market can very easily start to feel that way). -Our work together will continue beyond my closing date, and I am set up to pounce on a new mortgage rate for a refinance if and when the rates drop. CON: -If I come across one, I’ll share it, but in our time together over the past year, I have yet to encounter one. In a nutshell, you won’t be disappointed by going with Pinky and her team! "

ademeo1

"I had an excellent experience dealing with Pinky Shah and her team of NEO Home Loans powered by Better Mortgage from pre-approval to final closing process of our house. The whole team is very professional and helpful. They educate us with specific example of all the steps of the mortgage process. They answered and explained in details with clarity all our questions. After submitting the application with all supporting documents on their very friendly and excellent website, the approval process was very quick and smooth. This helped us to grab an excellent opportunity to become a house owner in this very competitive market. In fact, team of NEO Home Loans made our experience very smooth. We are grateful for their excellent service. I highly recommend Pinky Shah and her team of NEO Home Loan to anyone who is looking for their reliable and trustworthy services."
"Pinky has been with us for 2 mortgages and she is always an invaluable member of the team. Her communication is always when you need it. She literally left her son’s basketball game to answer a question once. Also, I never asked Pinky a question she didn’t have answer to. She explained to me exactly why the mortgage rates are going up and down and knew the time to lock in so we got a lower rate. Pinky and her team are the best, and if you are looking for a mortgage, you should 100% use her without giving it a second thought. Thanks again Pinky."

zshelby

"As a first time home buyer, working with Pinky and her team is a dream! She made buying a house as stress free as possible. She is super knowledgeable, accessible and best of all, she’s kind! She takes her time to explain things and made sure I was making educated decisions on such a big step in my life. I am so thankful I chose Pinky and her team."

peter bugbee

"I couldn't say enough good things about Pinky Shah and her team at NEO Mortgage. As first time home buyers and buying from out of state (VT to NJ), we naturally had lots of fears and questions on what the home buying process will be like for us. We were so thankful we went with Pinky and NEO Mortgage! Every step of the process felt less-transactional and so much more personal for us -- catered to our family's unique needs and goals. That I think is what set them apart from others and our deciding factor to go with NEO Mortgage. Spearheaded by Pinky, her amazing team (Kristi, Darlene!) worked in a very cohesive fashion that really made the whole process smooth, seamless, and hassle-free for us. Even after closing, she has lots of tools we could use as now homeowners that we will find useful. Thank you so much, Pinky and team! Kudos and more power to you! You guys are a great team! You made our family achieve this milestone of being a FTHB a great one!"

zuser202207081924560

"We are so glad that we were recommended to work with Pinky and her team. As first time home buyers we knew very little and were very nervous. Pinky and her team are always available and willing to explain everything and anything. They made the process so smooth and you can tell they really care. Their process is more than just finding you the right mortgage, it is building your future wealth and setting up your family to succeed. "

nic0880

"An absolute seamless and professional experience. I recommend Pinky to anyone looking to purchase a home. In addition to qualifying for a mortgage, I received financial education about building wealth and managing my finances. In addition, I received support from a kind and professional team every step along the way. Forever grateful for this experience and helping me purchase my home!"

lisa marra

"We had a great experience with Pinky and her amazing team (Kristi, Darcy and Darlene). What they offer is not just mortgage service; they offer a wholesome, well thought out strategy right from the stage when we started thinking about buying a house through closing and ... post closing as well. They had our best interest in mind and guided us thoroughly well through the process. Their VIP program is amazing, where you are pre-qualified and underwritten ..thus making you ready to put in an offer and close in really short time. This was hugely beneficial in current competitive market. Further the tools and technology offered is great too ... the documents submission, signing etc. was all online, thus no wasted time. Their App is great and helps to keep tab on the next steps. Finally, the team regularly checked in with us and kept us posted every step of the way. We highly recommend Pinky and her team ... its like having another friend work alongside you ... making it happen for you !! Thank you Pinky .. our best wishes to you and your team, as you help other home buyers. Regards Deepa and Bhavesh "

bhavesh soni

"She's amazing. The team is amazing. Absolutely recommend. Excellent service. She's amazing. The team is amazing. Absolutely recommend. Excellent service. "

kkjb