Buyer's Agency Cooperation / Compensation - Dee Plucinski

Buyer's Agency Compensation 

what's the big to-do all about?

SKIP TO DEE'S BAC SPREADSHEET


QUESTION:  "I've heard that there was a Real Estate lawsuit - something about buyer-side commissions.  Can you tell me what happened?"

ANSWER:  The National Association of Realtors (NAR) was involved in a lawsuit regarding allegations of antitrust violations. The lawsuit claimed that NAR's rules for property listings on websites restricted competition. As a result, NAR agreed to settle the lawsuit and change its policies to increase competition and provide more transparency to consumers. This settlement has impacted how real estate transactions are conducted, and how Realtors are paid.

QUESTION:  What were these Policy Changes?

ANSWER:  As part of the settlement with the Department of Justice, the National Association of Realtors (NAR) agreed to implement several policy changes. Here are some key changes:

  1. Broker Transparency: NAR agreed to modify its rules to allow real estate brokers to display more information about commissions and fees on websites and apps. This change aims to provide consumers with more transparency regarding the costs associated with buying or selling a home.

  2. Non-discrimination Policies: NAR is committed to adopting policies that prohibit discrimination based on sexual orientation and gender identity. This is intended to promote inclusivity and fair treatment within the real estate industry.

  3. Revised Rules on Property Listings: NAR agreed to modify its rules concerning how property listings are displayed on real estate websites. These changes aim to enhance competition among real estate brokers and provide consumers with more choices and information when searching for homes online. Broker Cooperation / Compensation can no longer be displayed on the MLS.


QUESTION:  What does this mean for me as a seller?

ANSWER:  Not much has changed, actually.  As before, you do not have to offer any compensation to the buyer's agent, it's negotiable when we sign the listing contract.  However, your property will be better received by both buyers and buyer's agents if you do offer buyer-side compensation or concessions.  If you choose not to contribute to the buyer's agent's fees, the buyer will pay the fees to their agent instead.  This will often discourage buyers from choosing your property if there is a similar offering with a buyer's side concession.

QUESTION:  What does this mean for me as a buyer?

ANSWER:  When you first start to look at properties, you will now be required to have a discussion with your buyer's agent regarding their fees.  Agents and brokers have varying fees and often varying levels of service offered inside of those fee tiers.  You will discuss what you are looking for, and the agent/broker will have you sign a compensation agreement form.  Essentially, if you buy a property, the broker will be paid X% of the total sales price.  If you choose a property that doesn't have a seller concession for buyer's agency compensation, you will be responsible for paying your broker directly at closing.  

QUESTION:  Why did this happen?  What was the complaint?

ANSWER:  Many sellers felt they should not be required to pay compensation to buyer's brokers who were actively negotiating against them.  (A valid argument.)

QUESTION:  So how do these new rules fix this?

ANSWER:  Sellers will negotiate buyer's agency compensation in the listing agreement just as before.  The Seller's Agent can not enter this information into the MLS like they used to, but must communicate through other sources such as on their own website, or blog.  The Buyer's Agent will negotiate their compensation inside of the Contract to Buy and Sell.  If the seller will not pay the full amount owed to the buyer's agent, the buyer will be responsible for the balance.  Hence the Buyer's Agent Compensation Agreement Form mentioned above.

Please use the link below to access a spreadsheet detailing the buyer's side cooperation offered by the seller for my listings. The listings are sorted by MLS# High to Low, and - as always - these numbers are negotiable in the Contract to Buy and Sell.  Thanks again.


Dee Plucinski Buyer Side CoOperation Spreadsheet




Steffens & Company Realty South Fork, CO 81154 dee@slvluxuryproperties.com www.steffenscorealty.com/dee

Find Dee on Realtor .com Mountain Moments by Dee: A YouTube Playlist dedicated to Tips, Tricks & Knowledge surrounding Mountain Real Estate Dee is an avid hiker and shed hunter. Check out her hiking website and online course at WomenHike.org.

DEE KNOWS THIS VALLEY - Feel free to reach out and just say hi.  (Pictured above with her Great Dane, Diesel.)

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