There have been many misunderstandings and speculations surrounding recent changes in the real estate industry. While it’s true that a class-action lawsuit settlement earlier this year introduced new guidelines for both Realtors and MLS organizations, some of the information circulating is inaccurate. One common misconception is that buyer’s agents are no longer entitled to a commission—this is not the case. The changes aim to simplify the compensation process and more transparent for all parties involved.
1. Key Changes in the Compensation Process
The revised system now places a greater focus on direct negotiations and payments. Much like the listing agreement that sellers sign with their agent, buyers are now required to sign a written representation agreement with their broker. This document outlines the broker’s compensation, as well as the roles and responsibilities of both the buyer and the agent. In the past, these agreements weren’t as common, depending on local customs, but they are now mandatory.
2. How the Payment Process Works for Buyers
Many buyers may prefer not to pay their agent's commission directly out of pocket. Instead, they may opt to roll the commission into their mortgage, which is essentially how commissions have been handled in the past. In these cases, you, as the seller, may receive an offer that includes a request to cover the buyer’s agent commission within the overall purchase price. Regardless of how the offer is structured, the key factor for you to consider remains the same—what is the net amount being offered for your property.
3. Evaluating Offers and Maximizing Your Sale
When the time comes, we will be there to help you carefully evaluate and compare any offers, ensuring that you have a clear understanding of the "net" value of each one. For now, our focus will remain on preparing your property for sale and executing a strong marketing strategy to attract top-dollar offers. With our combined efforts, we are confident that we’ll achieve the best possible results for your sale.
Let us know if you have any questions or need further clarification as we move forward!