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Don’t all listing contract hav a total commission and a breakout of what the brokerage is paying the other broker? Isn’t it a SOP from NAR. And didn’t the seller/plaintiff AGREE?
Here we go again...people just refuse to read the listing contract. The seller is not paying a penny to the buyer’s broker. The seller pays x% to the listing broker...period. The rest of the language is just a disclosure to the seller that the seller’s broker intends to offer a portion of their fee (the money the seller pays the listing broker) to another cooperating broker, if there is one.
This notion that the buyer should pay or that the seller is paying for the cooperating broker is nothing but a 100% misunderstanding of the contract and the way the system works.
Right now in my MLS, there are offers of buyer compensation from .3% to 5%. I've seen $1 and $100 on the MLS before. Our rules are any number greater than 0, so the sellers unwillingness to call around and interview other brokerages to find out what they charge doesn't seem like an anti-trust issue to me.
I don't see it being successful, but I think this type of lawsuit needed to happen at some point. I believe that sellers don't understand how much variety is actually out there. They interview three agents, don't see a lot of variation, and make assumptions.
Right now in my MLS, there are offers of buyer compensation from .3% to 5%. I've seen $1 and $100 on the MLS before. Our rules are any number greater than 0, so the sellers unwillingness to call around and interview other brokerages to find out what they charge doesn't seem like an anti-trust issue to me.
I don't see it being successful, but I think this type of lawsuit needed to happen at some point. I believe that sellers don't understand how much variety is actually out there. They interview three agents, don't see a lot of variation, and make assumptions.
And more difficult to sell real estate, will often have an 8% or 10% commission.
The public, thinks Realtors are getting rich, getting 6% commissions. Typical sale has 4 people splitting the commission. They fail to realize, the expenses the Realtor has to cover each month and with each listing and sale.
80% of new agents fail out of the business. The agents for the first 2 years according to NAR median income, is $15,000 per year and after expenses will be down to $10,000 per year. Most quit in less than 2 to 5 years as they go broke.
at face value, it seems if this lawsuit was going to be successful, it would have been filed about 20 years ago when Buyer agency became common and we left the "all agents represent the Seller" model.
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