Why Sellers Should Understand the 2024 Commission Changes

Real estate has changed, and understanding those changes matters now more than ever. In August 2024, industry-wide shifts took effect that changed how buyer brokerage compensation is handled. While these changes give consumers more flexibility, they also create confusion, especially around who represents whom and how buyers and sellers are protected.

At Buy Georgia Realty, we believe education is key, so here’s what both sides should clearly understand.

Buyer Brokerage Compensation: Choice, Not Obligation

As of August 17, 2024, sellers are no longer automatically responsible for paying a buyer’s brokerage simply because a home is listed. Buyer-agent compensation is now negotiable and must be agreed upon separately. This gives sellers more control, but it also requires thoughtful strategy.

In a buyer’s market, many sellers still choose to offer buyer-agent compensation as part of their overall marketing plan. This is not because they are required to, but because it can significantly expand the pool of qualified buyers. Many buyers already face costs such as down payments, inspections, appraisals, and closing expenses. If a buyer cannot afford to also pay their agent, they may simply skip homes where no compensation is offered, regardless of how perfect the home may be.

This doesn’t mean sellers must offer compensation. It means it should be considered strategically, just like pricing, repairs, or concessions. A knowledgeable listing agent should guide sellers through these options honestly and without pressure.

What Buyers Need to Understand About Representation

Some buyers believe that choosing not to use an agent saves them money or means they are still “covered” by the listing agent. This is one of the most misunderstood and risky assumptions in real estate.

The listing agent represents the seller as their client. If a buyer is unrepresented, the buyer is not a client - they are a customer. That distinction matters.

A customer is not owed advocacy, negotiation strategy, or protection. The listing agent’s fiduciary duty is to the seller, which includes obtaining the best price and terms for the seller, not the buyer. The agent may facilitate paperwork, but they are not required to advise the buyer on pricing, inspections, contingencies, or risks.

Choosing not to have a buyer’s agent does not mean someone is looking out for your best interests.

Why Representation Protects Both Sides

When buyers are properly represented, transactions tend to be smoother, clearer, and more successful. Buyers understand their obligations, sellers feel confident in the buyer’s readiness, and negotiations are handled professionally rather than emotionally.

For sellers, working with represented buyers often reduces misunderstandings, delays, and last-minute issues. For buyers, representation ensures someone is explaining documents, deadlines, loan requirements, and inspection results with their interests in mind.

The Role of Transparency and Education

The recent changes are not about eliminating agents - they are about transparency and choice. Sellers should know they are not obligated to pay buyer brokerage, but they should also understand how compensation can impact buyer behavior and demand. Buyers should know that representation is not automatic and that declining an agent comes with real risks.

At Buy Georgia Realty, we take time to explain these realities to both buyers and sellers. We believe informed clients make better decisions, experience less stress, and achieve better outcomes.

Real estate is one of the largest financial decisions most people will make. Understanding who represents you, how compensation works, and what protections you do or do not have is essential - not optional.

If you are buying or selling in Georgia and want guidance rooted in clarity, honesty, and advocacy, Buy Georgia Realty is here to help you navigate the process with confidence.