Historically Buyer Agency compensation was established through the Multiple Listing Service (MLS) and paid for from the proceeds of the sale at the time of closing. National real estate policy changes in 2024 altered that process and changed how Buyer's Agents are compensated going forward.
All real estate agents in Ocean City, MD and the surrounding areas are now legally required to have a signed Buyer Agency Agreement in place before showing a client any properties for sale. The Buyer Agency Agreement outlines the legal responsibilities and real estate services that an agent will provide and how they will be compensated for those services. There are three primary ways that Buyer Agency compensation can be covered:
- Covered entirely by a predetermined Offer of Cooperative Compensation from the Seller. Cooperative Compensation from the Seller is determined at the time the Seller lists the property for sale and the Buyer and Buyer's Agent will be aware of the Cooperative Compensation amount prior to touring the respective property. Any offer of Cooperative Compensation from the Seller that exceeds the agreed to Buyer Agency Compensation amount must be utilized to the benefit of the Buyer.
- Partially covered by an Offer of Cooperative Compensation from the Seller. In this situation additional Seller Compensation would be negotiated for in the offer to cover the full amount of the agreed to Buyer Agency Compensation. In the event that additional compensation can not be negotiated for the Buyer will be responsible for any difference between the total Seller Compensation offered and/or negotiated for and the agreed to Buyer Agency Compensation amount.
- There is no Offer of Cooperative Compensation being offered by the Seller. In this situation Seller Compensation would be negotiated for in the offer to cover the full-amount of the agreed to Buyer Agency Compensation. The Seller may agree to cover the entire Buyer Agency Compensation amount, a portion of it or no portion of it at all. The Buyer will be responsible for any difference between the total Seller Compensation negotiated for and the agreed to Buyer Agency Compensation amount.
In the current market a majority of Sellers are offering Cooperative Compensation that covers the Buyer Agency Compensation amount in full. All of my clients are made aware of each properties specific Buyer Agency Compensation situation prior to us touring it. The links below provide an overview of the Buyer Agency services that I provide, my professional resume and an outline of the coastal home buying process:
If you have any questions or would like to discuss my Buyer Agency services in greater detail, feel free to contact me directly anytime at 443-614-9179 or via email below.
About