If you’re diving into the real estate market in Walnut Creek, the East Bay, or anywhere in California, you may have heard about recent changes to real estate agent commission rules. These updates are designed to bring more transparency and fairness to the home buying and selling process, but what exactly do they mean for you? Let’s break it down.

What Are the New Commission Rules?

Two major changes have shaken up the traditional real estate commission system:

1. Sellers Can No Longer Advertise Buyer Agent Commissions on Listings:
   Previously, sellers could list on the Multiple Listing Service (MLS) the specific commission percentage they’d pay a buyer’s agent, like 2.5% or 3%. Now, that’s no longer allowed. This means the commission offered to buyer’s agents is no longer publicly posted.

2. Buyer Agents Must Have a Written Agreement with Buyers Before Showing Homes:
   Buyer’s agents now need to have a signed agreement with their clients before taking them to see properties. This contract spells out exactly what the agent will do, how they’ll be paid, and who will pay them.

What Does This Mean for Buyers?

If you’re a buyer searching for homes in Walnut Creek or the greater East Bay, you’ll notice a new step: before your agent shows you houses, you’ll likely be asked to sign a buyer-agent agreement. This agreement clearly states the commission you owe your agent—typically between 2% to 3%—though this is negotiable.

Here’s the good news: most of the time, buyer agents still ask sellers to cover their commission from the sale proceeds, just like before. So you probably won’t pay out of pocket upfront. However, if a seller refuses to offer a buyer agent commission, then you, the buyer, could be responsible for paying your agent.

What Does This Mean for Sellers?

Sellers in Walnut Creek and across California care most about their net proceeds—the amount they walk away with after the sale. Under the new rules, everything is negotiable. If a seller receives a full-price offer, they may agree to pay the buyer’s agent commission as part of the deal. But if the offer is below asking price, the seller may hesitate to pay the commission, leading to tougher negotiations.

This change encourages more open discussions about commissions, which can benefit sellers by potentially lowering selling costs if negotiated well.

Why Are These Changes Good for Walnut Creek Real Estate?

The real estate industry has long operated with fixed, sometimes opaque commission practices. These new rules foster transparency and fairness for everyone involved—buyers, sellers, and agents alike. Buyers know exactly what their agents expect, and sellers can negotiate terms that best fit their goals.

Need Help Navigating These Changes?

If you’re getting started in the Walnut Creek or East Bay real estate market and want to understand how these new commission rules might affect your buying or selling strategy, I’m here to help. Feel free to reach out with any questions.

Navigating real estate in California can be complex, but with the right information, you can make confident decisions. Thanks for visiting Ask Brendan — your go-to resource for Walnut Creek real estate FAQs!