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By Gary Kelley
I miss my summers with my kids at home. While they had events and friends occupying their time, it always seemed like a lighter time at work, without a need to rush home to do homework. We could run to Uhlmans and grab an ice cream. It was a kinder, gentler time.
Alas, the kids have grown up and are now bringing their kids to Uhlmans. One thing dramatically changing this year is a new approach in real estate prompting most agents to learn new ways of doing business. The fuss has to do with the fees for professional services due residential real estate agents at closing.
Starting Aug. 17, Sellers will no longer set the commissions for real estate agents who represent buyers. Buyers and the buyer’s agent will negotiate how much the buyer agents will be paid. Even when sellers are willing to pay some or all of the commission for the buyer’s agent, the amount will no longer appear on the multiple listing service.
In the past, sellers would set a percentage and work with their agent on how to divvy it up between the listing and buying agents.
Now we can no longer see in the listing if the seller is offering buyer’s agent compensation…. going forward buyer agents will need to call the listing agent to see what, if any, compensation is offered.
Mind blown?
It gets more fun. The central MA MLS, the MLSPIN (MLS – Property Information Network) has announced “MLS PIN cannot enter into an agreement to ban the publication of free-market compensation offers without offending the very antitrust principles DOJ claims to be protecting,” the response says. “To impose such a ban through a federal injunction would also suppress speech that is protected under the First Amendment. DOJ never denies that sellers have the right to compensate buyer brokers; it only advocates arbitrary restraints on the communication of compensation offers.”
Real estate evolves like any industry, and this is just part of the evolution.
One thing absolutely changing is a buyer will now need to sign a buyer contract before seeing a home. We’ve needed to get an agency disclosure for years…this is one more layer. Also, any seller choosing to represent themselves rather than hire a real estate agent needs to be very cautious as to what they say or don’t say to a Buyer as this could be used against them before or after closing on the sale of the property.
Real estate agents are in school this summer. One of the challenges is the book isn’t fully written.
These things will sort themselves out…. they always do. It’s another reason to use an experienced agent valuing professional development.
Need tools for home search: MoveWithGary.com
Gary is heard on WCRN AM 830 and “All Things Real Estate Podcast” on all the major podcast outlets.
If you need advice on selling your home or buying a new one, give us a call 508-733-6005.
This is a short piece on a complicated topic. Refer to NAR.REALTOR for up to date and complete information.
Gary
