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My MLS officially decoupled commissions. Listing agents are no longer allowed to offer a co-op. Buyer agent compensation can be offered by the seller and is negotiable in the contract just like closing costs. We are required to tell buyers that they are responsible for the buyer agent compensation, which can be offset by a seller's offer.
We are an indie MLS so we don't have to wait for NAR to create policy.
What is your listing agent commission? As you know, few listing agents end up being the selling agent. If you are the typical 5 to 6% commission now the seller has to pay any buyers commission, typically 3% so now the seller is looking at paying 8 to 9% commission. No thanks. I will pass on this.
What is your listing agent commission? As you know, few listing agents end up being the selling agent. If you are the typical 5 to 6% commission now the seller has to pay any buyers commission, typically 3% so now the seller is looking at paying 8 to 9% commission. No thanks. I will pass on this.
As always, Buyers pay all commissions, so that issue is not an issue.
Negotiable, as always.
But, yes. People are so incredibly naive about commissions, and personal economics in general, some folks will end up paying huge fees before things get settled.
So there is no offer of co-op listed in the MLS at all, or only if the seller decides to offer one? How have the changed your listing agreement to correlate with the MLS?
I'll be interested to see how this plays out, but it sounds like it's about to become a disaster for buyers.
There is only a compensation offering if the seller decides to offer one. Our MLS has a standard listing agreement that we can use and it was changed before our member meeting. I have my own and will use the MLS one until I get mine changed and uploaded into Skyslope.
We have a legislative short session coming up and buyer agency agreements will be mandatory probably starting in the spring. They are just hammering out when they will be required, at a buyer consult, before a showing, etc.
What is your listing agent commission? As you know, few listing agents end up being the selling agent. If you are the typical 5 to 6% commission now the seller has to pay any buyers commission, typically 3% so now the seller is looking at paying 8 to 9% commission. No thanks. I will pass on this.
No sane seller will agree to 9%. That's craziness. There are two lines on the listing agreements. Line one is the seller paid compensation to the listing agent. The other line is the seller paid compensation to the buyer agent.
The listing fee always included the buyer agent compensation and for my MLS it will no longer be that way.
Negotiable, as always.
But, yes. People are so incredibly naive about commissions, and personal economics in general, some folks will end up paying huge fees before things get settled.
It will be interesting where the market takes this... having lived both sides of these transactions through "sellers" and "buyers" markets, I've seen sellers pay closing costs to bidding wars with due diligence checks bigger than I would have ever guessed.. in the end, it's all negotiable.
I suspect a good, hustling agent will find ways to continue getting paid on both sides of the transactions... likely to ebb and flow as the market determines who wants it enough to pay a little extra for it... at any given time the emotions of a consumer in a RE transaction will justify paying a little extra to get what they want.
There is only a compensation offering if the seller decides to offer one. Our MLS has a standard listing agreement that we can use and it was changed before our member meeting. I have my own and will use the MLS one until I get mine changed and uploaded into Skyslope.
We have a legislative short session coming up and buyer agency agreements will be mandatory probably starting in the spring. They are just hammering out when they will be required, at a buyer consult, before a showing, etc.
Could you just negotiate your total commission and choose how much you want to offer as a co-broke? I know it's semantics, but just curious.
Ex- There is no split offered on the listing agreement, only what they pay you at closing. Sellers agrees to pay you 6%. Out of your 6% you offer a 2.5% co-broke on the MLS but that is your commission being offered to another agent to bring a buyer. If there is no buyer agent you just keep the whole 6% as that was the agreement. That way you are splitting your commission as you see fit and not the seller offering a co-broke split out on their papwer work?
Again, semantics, but that's largely what this lawsuit has been from day 1.
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