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ast week we covered escrow and title insurance pricing. Today’s focus is on selecting the right buyer’s agent and handling commission negotiations.

    **Choosing a Buyer’s Agent**

    California’s AB 2992 mandates that before submitting an offer, you sign a buyer representation and broker compensation agreement. The contract caps at 90 days, spells out the agent’s duties, and sets the brokerage’s fee.

    If you’ve had a successful past transaction, stick with that agent. For a new experience, ask trusted family, friends, or colleagues for referrals. Pat Veling of Real Data Strategies advises: “If someone strongly recommends their own agent, don’t consider it further.”

    When you have three solid referrals, meet each agent for about an hour. Look for chemistry, clear communication, and a shared vision. Ask questions such as:

    - How do you operate and what can I expect?

    - Describe a recent multiple‑offer win where you didn’t outbid.

    - How do you guard against overbidding?

    - If I’m picky and need many showings, will you still work with me?

    - Tell me about a time you saved a deal from falling out of escrow.

    - Provide references from your last three buyers; call them.

    - What will you do beyond sending listings I could find on Zillow?

    - How can I help make your job easier?

    Verify each candidate’s license status online and check for disciplinary actions. The goal is to find the agent who best matches your needs.

    **Commission Landscape**

    The 2023 Sitzer/Burnett antitrust ruling forced buyers to contractually pay their agent, ending the seller‑paid commission model. Agents now ask for 2–3 % of the sale price. In practice, sellers still offer a “concession” that covers this fee.

    If a seller offers only 2 % while you agreed to 2.5 %, you’re contractually liable for the shortfall unless the broker waives it—something the law disallows. The buyer‑broker agreement must state the exact amount the buyer owes. Some brokers claim they’ll forgive the difference, but this is not legally permissible. Get a clear, written outline of the agent’s fee structure and why it’s set at that level.

    **Mortgage Snapshot**

    Freddie Mac’s 30‑year rate rose to 6.34 % (up from 6.30 %), and the 15‑year fixed climbed to 5.55 %. Mortgage Bankers Association reports a 12.7 % drop in applications.

    Locally, qualified borrowers can secure:

    - 30‑year FHA at 5.375% (1 point)

    - 15‑year conventional at 5.125% (1 point)

    - 30‑year conventional at 5.875% (1 point)

    - 15‑year high‑balance conventional at 5.625% (1 point)

    - 30‑year high‑balance conventional at 6.125% (1 point)

    - 30‑year jumbo at 6.125% (1 point)

    Eye‑catcher: a 30‑year fixed for five years at 5.375% with 30 % down and 1 point.

    For more details, contact Jeff Lazerson, Mortgage Grader president, at 949‑322‑8640 or [email protected].