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Other than publishing the buyer's agent commission on the public MLS it doesn't appear to be any different than how my MLS is run now. Sellers have always had the power to refuse to pay anything more than $1 to the buyer's agent.
I wish that more consumers would ask, "How do you get paid?"
I get the question a couple of times a year.
They need to know what they are paying, IMO, and I disclose it on every house I show.
When NC made buyers agents disclose their expected compensation, and any variances from it such as bonuses, cruise credits, high or escalating commissions, the mewling and grunting and groaning were revealing.
"How is it THEIR (my client I am serving as a trusted fiduciary) any business how much I am making?!!!" was very revealing.
It's interesting to see the different treatments in other states/markets.
As MikeJ said, in NC we have had disclosure of compensation to Buyers:
1. in our Buyer Agency Agreement
2. ANYTIME it varies from that, including bonuses etc, at time of writing the offer.
Why, just the other day, I chuckled with a Buyer client telling them "Now, if you buy this home, and make an offer this week, then they say they'll give me an extra $1,000 bonus." This would be about a 8% bonus.
Do WA listing agreements NOT spell out what the listing broker would pay cooperating agents?? . Must have, otherwise it couldn't be a "long held secret"
speaking of customs, I assume the article has it wrong with their cute graphic of the Seller handing the Buyer's Agent money. I've never heard that happening, when they have a listing agent.
It's interesting to see the different treatments in other states/markets.
As MikeJ said, in NC we have had disclosure of compensation to Buyers:
1. in our Buyer Agency Agreement
2. ANYTIME it varies from that, including bonuses etc, at time of writing the offer.
Why, just the other day, I chuckled with a Buyer client telling them "Now, if you buy this home, and make an offer this week, then they say they'll give me an extra $1,000 bonus." This would be about a 8% bonus.
Do WA listing agreements NOT spell out what the listing broker would pay cooperating agents?? . Must have, otherwise it couldn't be a "long held secret"
Bo we have the same disclosures above when we sign buyer agency agreement.
We also have always spelled out what the buyers agent will make in the listing agreement... that’s not a change either.
The changes to our system from the way it was before are that:
- The MLS used to require that the buyer’s agent be paid *something*. Now evidently it will not.
- The amounts or percentages of compensation have never been published to the *public* before.
Technically speaking, sellers have always been able to refuse to pay buyers agent commission. FSBO is one way. Another is when listing find an agent that will work on your commission amount. You may have to pay a $1 for some MLS' but that may as well be free.
So far that’s how I am looking at the panic about this. There will still be smart reasons to be fair.
It’s too soon to tell for sure.
I guess I think it will sort itself out that we will be still able to sell homes and not starve to death.
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