At Long Realty, our mantra is Smart Move. We do this by informing, educating, and advocating for consumers using our almost 100 years of experience and expertise. Recently, you may have heard news stories about significant changes in the real estate industry relating to real estate commissions. We’d like to share some information about what this news means for you, and how we will continue to support you.
The recent headlines relate to three new practice changes the National Association of REALTORS® (NAR) agreed to implement in connection with the settlement of anti-trust lawsuits. These changes have now gone into effect in our local markets. The changes relate to: 1) the compensation payable to buyer’s agents, 2) what can and cannot be displayed in the MLS relating to agent compensation, and 3) the written agreement a buyer’s agent will need to have before you can be shown properties that have been listed for sale and represent you in your real estate transaction.
Sellers still have the option to offer Buyer’s Broker Compensation.
Real estate commissions have always been negotiable, and the amount of compensation paid to the listing broker that is shared with a buyer’s broker is at the discretion of the Seller. Under the new practice changes, Sellers must now be notified they are not required to have their listing broker offer to compensate a buyer’s broker.
The MLS will no longer collect and display the compensation being offered to buyer’s agents.
As a result of the NAR settlement, the MLS’ will no longer collect and display the compensation being offered to buyer’s agents. This new practice will change the mechanics of how real estate brokerages will share this information. Therefore, going forward, we can expect to see public-facing advertising by the listing brokerage/agent that indicates the compensation being offered to buyer’s agents. In fact, we have already implemented the display of buyer broker compensation offerings on our listings on our website longrealty.com.
As in the past, offers of compensation to buyer brokers, while not required, may make your property more attractive to a wider audience and this is something your agent will want to discuss with you when you list your property for sale.
Buyers and agents must have a signed buyer broker agreement before showing homes.
Under the new rules, buyer’s agents will need to have a signed buyer broker agreement before they can show you a home that has been listed for sale and represent you in connection with your lease or purchase of a home. That agreement must specify the commission that will be due to your buyer’s agent upon closing and how it can be paid.
We at Long Realty have long been proponents of greater transparency and education about what buyer agency is, and all of the financial aspects of a home purchase including the buyer agent’s compensation. We believe that buyers benefit by having an agent who is acting in their best interests and establishing that relationship early.
How This Affects You
As your real estate resource, we are here to navigate these changes with you and ensure that your interests are protected. Whether you are buying or selling, we will provide the same level of commitment and expertise to help you achieve your real estate goals.
If you have any questions or concerns about how these changes might affect your specific situation, please do not hesitate to reach out. We are here to provide clarity and assist you every step of the way.