The Real Deal

Let’s talk about something that’s been showing up in headlines—and might be showing up in your conversations too: real estate commissions.

If you’re thinking about buying or selling a home in California, you may have heard there's been a shift in how real estate commissions are structured and disclosed. And while change can feel confusing, especially when it involves legal terms and fine print, I’m here to break it down in plain language so you can feel confident, not overwhelmed.

🔍 So, What Changed?

In short:
New regulations and court rulings are putting more emphasis on transparency—especially when it comes to how buyer’s agents are compensated.

Here’s the old norm (what most people are used to):

• When you listed your home for sale, you and your listing agent agreed on a total commission.

• A portion of that total was offered to the buyer’s agent as part of the deal.

• This was usually all baked into the final sale price—and buyers didn’t directly pay their agent out-of-pocket.

Now, with recent changes, the industry is being asked to be more upfront and flexible about how these commissions work.

💡 What Buyers Need to Know

If you’re buying a home in 2025:

• You may be asked to sign a written agreement with your buyer’s agent upfront, clearly stating how they’re getting paid and what services they’re providing.

• In some cases, you may negotiate directly with your agent about their fee—especially if it’s not being offered by the seller.

• You still have the right to choose an agent you trust—just be aware of how and when they’re being compensated.

This doesn’t necessarily mean more money out of your pocket—it just means more clarity and choice.

🏡 What Sellers Should Know

If you’re listing your home:

• You can still offer compensation to the buyer’s agent—and in many cases, it’s still a smart move to attract more buyers.

• These terms now need to be clearly outlined and agreed upon in writing.

• You have more flexibility in how you approach commissions, based on your needs and goals.

🤝 Why This Isn’t a Bad Thing

At the heart of these changes is a simple idea:
Real estate works best when everyone’s on the same page.

✅ Transparency builds trust
✅ Clear agreements reduce surprises
✅ Informed buyers and sellers make better decisions

These changes aren’t about adding complexity—they’re about adding clarity.

✅ Bottom Line

The way we talk about commissions is changing—but the value of working with an experienced, ethical agent hasn’t.

Whether you’re buying, selling, or just want to understand how this affects you, I’m here to help.

The changes to real estate commission structures in California have been implemented in two key phases:​

1. August 17, 2024: Following a nationwide settlement by the National Association of Realtors (NAR), new rules took effect that:​

   • Prohibit listing agents from offering compensation to buyer's agents through Multiple Listing Services (MLS).​

   • Require buyers to sign a written agreement with their agents before touring properties, detailing the agent's compensation and services.​

2. January 1, 2025: Assembly Bill 2992 mandates that all buyer's agents in California must:​

   • Enter into a buyer-broker representation agreement with their clients no later than the execution of the buyer's offer to purchase.​

   • The agreement must specify the agent's compensation, services provided, payment terms, and have a maximum duration of three months.​

These changes aim to enhance transparency in real estate transactions, ensuring that both buyers and sellers are fully informed about agent compensation and services.

Call me today for a personal market update or to schedule a consultation:

Deborah Jacobs DRE 01905167
REALTOR® | Matrix Estate Group Inc.
(909) 503-5960
myeastvalleyrealtor@gmail.com
1255 W. Colton Ave Ste 100
Redlands, CA 92374

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