For Home buyers

I shouldn’t be surprised, but so far, I have not noticed any negotiation on commissions paid to a buyer’s agent. Commissions for agents who assist the home buyer used to be listed in the MLS (multiple listing service) for every home for sale.

That all ended last year after the National Association of Realtors lost a lawsuit.  Sellers often want to negotiate for a lower commission, but when a buyer makes an offer and asks the seller to pay a buyer’s agent commission, sellers are paying it with no negotiation.

As a small company, I don’t have a ton of data for this, and real estate brokers are not allowed to discuss how much they charge or are paid amongst themselves. All I can say is that the commissions that are being paid out to buyers’ agents are pretty consistent and appear to be the same as what they were when they were listed in the MLS.

Redfin reported that the average percentage of commission paid to buyer’s agents has gradually fallen since the NAR settlement was announced, although the decrease “is small and the dollar amount paid to buyer’s agents has held steady.”

It could be that because sellers often pay the buyer’s agent’s commission, buyers don’t feel the need to negotiate. I am not sure why sellers negotiate with their agent for a lower commission and then turn around and pay the buyer’s agent with no negotiation.

There is a point to this post, and that is that real estate commissions are always negotiable, and so are any fees charged by your real estate agent. There are many excellent real estate agents in the area looking for work every day, and it is always alright to negotiate and to pay less.

If you are a home seller, your agent should not be advertising the fact that you will pay the buyer’s agent commission. There is a better way.

The bookcase to the left of the fireplace in the picture is part of the house and included in the sale. It is built-in, which makes it a fixture. The shelves to the right of the fireplace are free-standing and therefore personal property and are not included in the sale.

In Minnesota “fixtures” are included when purchasing a home. A built-in dishwasher and the kitchen sink are both fixtures. The washer and dryer are usually not built-in and are considered personal property. Personal property can be included in the home sale, but the buyer needs to specifically ask for it.

How do we know if an item is a fixture or personal property? There are some gray areas, but we can usually work it out by negotiating and then putting it in writing.

Light fixtures are sold with the house but sometimes the homeowner wants to keep the fixture. In that case, I recommend removing it before the house goes on the market.

Here is a list of items that are considered fixtures:

Built-in fireplace, whether indoor or outdoor, or a built-in fire pit.

Built-in microwave oven.

Shelves attached to brackets or screwed into the walls for stability

TV attached to wall (in some cases, the TV may be removed if it’s on brackets and not built in, but the brackets may not removed)

40-pound built-in fountain

In-ground pool

Built-in hot tub

Bathroom mirror on a bracket

Custom-designed window treatments and draperies; rods screwed into the wall

Plants and landscaping

Bathroom towel rods and hooks

Window Blinds

Built-in refrigerator

Built-in dishwasher

Children’s play area set in concrete

Dog kennel attached to house

Door knocker, door knobs

Light fixtures

Built-in sandbox

Garage door opener (and remote controls)

Painted mural