Starting this past weekend, a major settlement with the National Association of REALTORS®
(NAR) goes into effect. I’ve heard and seen a lot of misinformation about it so I thought I would explain it to you in the most simple terms I can provide.
(NAR) goes into effect. I’ve heard and seen a lot of misinformation about it so I thought I would explain it to you in the most simple terms I can provide.
Here’s what you need to know:
Home Sellers:
- You have the choice of offering compensation to buyer brokers. This was true in the past as well, but moving forward it should be more transparent.
- How do you offer compensation to buyer brokers? In the form of a concession fee noted in your Listing Agreement and paid at closing.
- Why is this important? Buyers who have to pay the buyer broker’s fee out of their own pocket may be less inclined to see or make an offer on your property.
- Your listing agent cannot include the concession fee amount on the Multiple Listing Service (MLS). The concession fee will be shared directly between brokers.
Home Buyers:
- You must have a signed Buyer Representation Agreement prior to touring a property with an agent.
- Within the Buyer Representation Agreement, the buyer broker’s fee should be clearly stated.
- The buyer broker’s fee is now the sole responsibility of the buyer to be paid at closing.
- Buyers cannot roll the buyer broker fee into their financing.
- Sellers may offer a buyer’s broker concession which can be applied to your buyer’s broker fee at closing.
- Your buyer’s agent may ask the seller prior to your touring a property what if any, buyer concession fees the seller is offering.
- You do not need a Buyer’s Representation Agreement to visit an open house.
As you review this information, please let me know if you have questions. I would be happy to discuss them with you further.
As we look to the future of real estate representation, clear transparency is the goal, with higher levels of communication and documentation to protect the interests of those we serve. I am continually striving to provide better expertise and service and my hope is that these changes provide consumers with clear options in real estate services.
Sincerely,
Carl
