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Communicating Offers of Compensation

Tue, 02 Jul 2024 19:18:04 GMT

"What the heck is going on with Buyer and Seller Agent commissions?"

The short answer is that a Federal Lawsuit has forced changes to the way consumers negotiate and pay real estate agents.

Starting in August of 2024, home sellers no longer will be responsible for paying both their own agent and the buyer's agent.

The article below from the National Association of Realtors sums it up.

WASHINGTON – Under practice changes that will take effect Aug. 17, real estate professionals will no longer be able to communicate offers of compensation in the MLS. However, offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with their real estate professionals.

MLS policies have been changed to reflect the practice changes under the proposed settlement agreement. The National Association of Realtors®’ legal team has developed a series of “Window to the Law” videos to explain the coming changes, with the first video focusing on compensation—which is and always has been negotiable.

Charlie Lee, NAR’s senior counsel and director of legal affairs, says real estate pros have a variety of ways to negotiate and communicate offers of compensation, including through:

Marketing: If the listing broker or seller is offering compensation for the buyer’s broker, the listing agent can share that offer through their marketing, such as in flyers, signs or emails.

Website displays: “A broker can show offers of compensation for their listings on their website display,” Lee says. Brokers must not display offers of compensation for other broker’s listings on their website display.” You can show other brokers’ compensation on your listings if you don’t get it from MLS data or an MLS feed, he adds.

Seller concessions: Sellers may elect to offer concessions to the buyer, which may be used for items like paying for the buyer’s closing costs or the commission for the buyer’s agent. If the local MLS allows, such concessions can be communicated on the MLS within designated fields. However, any concessions listed cannot be conditioned on the use of or payment to a buyer broker, Lee says.

Negotiations: Buyers may request that their agent include broker compensation as part of the terms of a purchase offer.

Buyer agreements: NAR’s proposed settlement agreement will require buyers and their agents to enter into written agreements before touring homes. These agreements will detail the compensation for using the buyer broker’s services.

Preparing your home for a private viewing

duda@secondgen.com — Mon, 28 Mar 2022 13:38:08 GMT

Preparing your home for a private viewing is essential. These are the things you should focus on...

Clean up

First impression is everything! Clean up your home and make it spotless.

Organize everything, including closets

Don’t forget to check inside your closets and other hidden places. They will want to see everything.

Make Your home cozy and inviting

Add artwork, plants, dried flowers, candles and other things that will make the property feel homey.

Pets
Ask a friend to take care of your pet during the viewing.

How to pack your stuff

duda@secondgen.com — Mon, 28 Mar 2022 13:38:08 GMT

Start packing before you list your home!

Pack up the clutter, out of season clothing and non-essential items. Not only will this give you a head start on packing but it will make your home look better. Also, it keeps your valuables out of sight of potential buyers when they view your home. Store your boxes in your garage if there is enough room but do not fill up the garage with boxes. If you can, get a small storage unit and store your pre-move boxes there.

Features that buyers have come to expect

duda@secondgen.com — Mon, 28 Mar 2022 13:38:08 GMT

Newer appliances, high ceilings, hardwood floors, clean windows, newer roofs, newer AC systems, solid surface countertops, and updated lighting.