What’s Going On With Real Estate Commissions in Georgia?

If you’ve been following the news about real estate commissions or if you’re a bit unclear on recent changes in Georgia, you’re not alone. The real estate landscape is shifting, and it’s important to understand how these changes can affect your buying or selling experience.

In Georgia, sellers have traditionally had the discretion to decide how much, if anything, they would offer as commission to a buyer’s agent (also known as a buyer’s broker). Here’s what you need to know if you’re looking to buy or sell a home in today’s market:

1. Written Agreements Required

One of the key changes is that buyers must now sign a written agreement disclosing how their agent will be compensated before viewing homes. This is a positive shift for both agents and buyers. For agents, it reduces the chances of working with buyers who either already have representation or aren’t serious about using their services. For buyers, it provides transparency about agent compensation, ensuring they understand how their agent is paid from the outset.

2. No More MLS Advertising of Buyer Agent Commissions

Another significant change is the prohibition of advertising buyer agent commissions on the Multiple Listing Service (MLS). This could mean extra work for both buyers and listing agents, especially in a competitive market where multiple offers are common. 

3. Consumer Approval Required for Commissions

Commissions must now be approved by the consumer and cannot be altered after the agreement is made. This change underscores the importance of clarity and agreement from the start of the transaction.

Current Market Insights

What are we seeing in the North Atlanta market amid these changes? So far, there hasn’t been a dramatic shift. Sellers are still offering buyer agent compensation in all the transactions our team has completed in 2024 so far.

According to an August survey conducted by The Real Brokerage:

• 55% of agents reported no significant change in commissions.
• 83% of agents indicated that buyers expect sellers to cover 100% of commissions.
• By region, the likelihood of sellers covering buyer agent fees varies, with the Midwest leading at 67%, followed by the South at 64%, and the Northeast at 59%.

What Buyers Need to Consider

The old adage, “you get what you pay for,” holds true in real estate. Buyers must now evaluate whether they are willing to compensate their agents if sellers are not offering full commissions. 

Many consumers think they simply need a buyers agent to open a door, but we have seen a number of instances over the last 12 months where buyers lost earnest money and were even obligated to pay the commission on a failed transaction, simply because their Buyers Agent lacked experience and did not educate/protect the buyers. Experience matters and consumers really need to understand who they are hiring when it comes to engaging in what may be the largest financial transaction of their lives. 

For example, our 2023 analysis of the North Atlanta market revealed that experienced top real estate teams, like Robin Martin & Associates, were able to sell their listings three times faster and achieve over 4% higher on the median list price vs. sold price compared to the average.

Understanding these shifts in real estate commissions is crucial for both buyers and sellers in Georgia. Being informed will empower you to make the best decisions in today’s evolving market. Whether you’re buying your first home or selling a long-time residence, having the right information can make all the difference.

If you’re looking to buy or sell in the North Atlanta area, let us put our experience and expertise to work for you! Call us today! 678-665-0202