Arlene Salcedo’s Post

Here's what you need to know about the recent NAR settlement: → Going forward (from mid-July 2024) buyer broker compensation can’t be listed on the MLS. → Sellers and their agents could still make offers of buyer broker compensation via off-MLS negotiations and consults (meaning seller-paid buyer agent commissions are still an option). → NAR also agreed to a new rule that would require MLS participants—specifically those working with buyers—to enter into written representation agreements with their buyers. What this means if you're a buyer: Buyers would benefit from buyer broker agreements, increased clarity regarding the services their agent provides, and more variable commission structures. What this means if you're a seller: Sellers may enjoy more control over commission negotiations, potentially leading to cost savings and more personalized service agreements. What this means if you're a real estate agent: Agents have an opportunity to showcase their value more transparently, potentially leading to stronger client relationships and a more tailored service approach. Have questions? Comment below or send me a message – I’m here to help! 𝐁𝐮𝐲 𝐰𝐢𝐭𝐡 𝐁𝐫𝐢 • 𝐋𝐢𝐬𝐭 𝐰/ 𝐋𝐨𝐦𝐛𝐚𝐫𝐝𝐨 914.907.9173 bri.lombardo@korman-realty.com LET'S PLAN YOUR NEXT MOVE®

Here's what you need to know about the recent NAR settlement: 👉 Going forward (from mid-July 2024) buyer broker compensation can’t be listed on the MLS. 👉 Sellers and their agents could still make offers of buyer broker compensation via off-MLS negotiations and consults (meaning seller-paid buyer agent commissions are still an option). 👉 NAR also agreed to a new rule that would require MLS participants—specifically those working with buyers—to enter into written representation agreements with their buyers. ✔️ What this means if you're a buyer: Buyers continue to benefit from buyer broker agreements and increased clarity regarding the services their agent provides. ✔️ What this means if you're a seller: Sellers will continue to consult and negotiate with their professional agent on what is most viable regarding buyer agent co-op compensation and/or buyer concessions. ✔️ What this means if you're a real estate agent: Agents have an opportunity to showcase their value more transparently, potentially leading to stronger client relationships and a more tailored service approach.

Here's what you need to know about the recent NAR settlement:⁠ ⁠ → Going forward (from mid-July 2024) buyer broker compensation can’t be listed on the MLS.⁠ ⁠ → Sellers and their agents could still make offers of buyer broker compensation via off-MLS negotiations and consults (meaning seller-paid buyer agent commissions are still an option).⁠ ⁠ → NAR also agreed to a new rule that would require MLS participants—specifically those working with buyers—to enter into written representation agreements with their buyers.⁠ ⁠ What this means if you're a buyer:⁠ ⁠ Buyers would benefit from buyer broker agreements, increased clarity regarding the services their agent provides, and more variable commission structures.⁠ ⁠ What this means if you're a seller:⁠ ⁠ Sellers may enjoy more control over commission negotiations, potentially leading to cost savings and more personalized service agreements.⁠ What this means if you're a real estate agent:⁠ ⁠ Agents have an opportunity to showcase their value more transparently, potentially leading to stronger client relationships and a more tailored service approach.⁠ ⁠ Have questions? Comment below or send me a message – I’m here to help!⁠

As a 🏡 seller in CA, beginning Aug 17, the way you contract an agent will change. In the past, you usually would have hired a broker for x%, and then that broker would’ve shared a portion of that compensation with the buyer’s brokerage, for procuring a ready willing and able buyer. Most often, that shared % was pre-negotiated on the listing contract, and displayed publicly via a field on our MLS. Beginning 8/17 (or sooner on some MLS’s), your listing contract will only outline the fee that you’re paying the listing agent. There will be no more pre-negotiated buyer broker compensation on the listing contract.

I'm seeing lots of comments out there on the recent NAR settlement - particularly, agents with ideas about other places outside of the MLS that listing agents/sellers can post commissions. These comments are misguided and are missing the point: The DOJ doesn't want a unilateral offer of commission for the Buyer's Agent. They want Buyer's Agents to have to compete by negotiating directly with their buyer for a commission. Once the rate is agreed upon between the Buyer's Agent and the buyer, 𝘵𝘩𝘦𝘯 the buyer can request the seller cover the cost as part of the contract negotiation. In other words: the practice under attack by this suit and the DOJ isn't the seller 𝘱𝘢𝘺𝘪𝘯𝘨 𝘧𝘰𝘳 the BA commission. The practice under attack is when anyone but the buyer 𝘥𝘦𝘵𝘦𝘳𝘮𝘪𝘯es the BA commission and 𝘰𝘧𝘧𝘦𝘳s 𝘪𝘵 𝘶𝘯𝘪𝘭𝘢𝘵𝘦𝘳𝘢𝘭𝘭𝘺 to all BAs. What does this mean to you as an agent? Well, breathe a sigh of relief. Things can still operate largely as they always have. The difference will be: you talk to your buyer upfront and agree 𝘣𝘦𝘵𝘸𝘦𝘦𝘯 𝘵𝘩𝘦 𝘵𝘸𝘰 𝘰𝘧 𝘺𝘰𝘶 what your rate is. Then, you'll negotiate a seller concession/credit in the offer (I'm sure you've done this before already anyway) and some portion (or all) of that concession will go towards your agreed-upon commission. This will actually be a win for the experienced and highly professional agents who are good at conveying their value to their clients.

We want to update you on the recent changes announced by the National Association of REALTORS® (NAR) regarding broker commissions and MLS practices, effective August 17, 2024. Key Changes: 🔹 𝗘𝗹𝗶𝗺𝗶𝗻𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀: Offers of compensation between listing brokers, sellers, and buyer representatives will be eliminated from MLS. 🔹 𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗗𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲: Brokers must disclose compensation details to sellers, prospective sellers, and buyers. 🔹 𝗪𝗿𝗶𝘁𝘁𝗲𝗻 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀: Agents working with buyers must enter into written agreements before property tours. NAR members and MLSs have until August 17, 2024, to implement these changes. MLSs that opt into the settlement agreement must comply by September 16, 2024, to be considered released parties. For more detailed information, please visit NAR’s Settlement FAQs. (https://lnkd.in/eTbEdivy)

You may have come across discussions regarding a proposed settlement from the National Association of REALTORS® (NAR) which will go into place mid-July. While this settlement is pending final approval, it has sparked some confusion due to various media reports. To address any misconceptions, we'd like to clarify what this settlement means for buyers and sellers below. ⬇️ 🏡 How does this impact sellers? 1️⃣ Compensation has always been negotiable, this lawsuit clarifies that. 2️⃣ Compensation to buyers brokers will not be advertised on the MLS. 3️⃣ The structure of your listing compensation could have an impact on the buyer pool. 4️⃣ Sellers need to understand the advantages and disadvantages of offering compensation to the buyer's broker. 🏡 How does this impact buyers? 1️⃣ Buyers will be required to sign the representation agreement. 2️⃣ Buyers need to understand the benefits and implications of having qualified, exclusive representation. 3️⃣ Buyers need to be aware that they may have to compensate their agents. Should you have any questions or concerns regarding how this settlement may affect your specific situation, please don't hesitate to reach out. We deeply value our ongoing partnership and eagerly anticipate the opportunity to continue serving and advising you.

So once sellers lose the ability to announce cooperative compensation offers on the MLS, how do you think buyer brokers will adapt? a. Only show buyers properties where the seller has agreed to pay a buyer commission outside of the MLS. (Business as usual. Sellers will maintain a shared 5-6% status quo) b. Add "pay-my-broker contingencies" to purchase offers (I'll pay $250,000 IF you pay my broker 2.5%) c. Ask for (larger) generic closing cost credits that buyers can apply towards brokerage commission, prepaids and other expenses. (I'll pay $250,000 but only if you give me a $6,250 credit). d. Write offers with the commission priced out. "Just" offer what the home is worth without any seller contribution. (I'll give you $242,500 and pay my own broker, thank you). e. Its going to be situational. Every deal is going to be different. We'll test different models and see what works.

A great link straight from the source. As mentioned, NAR has never set commissions. It is up to the real estate professionals and buyers/sellers to negotiate and agree upon a set amount. There have always been some that charge less for their services, and there are some that charge even more. The most important thing to remember is to protect your equity and choose someone who will go above and beyond for you. As a seller, you want someone who will get you the most amount of money in the shortest amount of time and walk you through the process. It also is a benefit to you as a seller if you have a buyer who is properly represented and keeping track of their financing. Buying and selling is a full time job, and we go above and beyond for our clients to ensure they have a smooth transaction with the least amount of stress. Contact Megan Lyons and I if you have any questions, and we will continue to update our network on the real facts as they continue to come out.

New Blog Post: "Brokers Have Some Decisions to Make ... FAST …" 🚨 Attention Brokers! 🚨 Our latest blog post covers crucial changes in agent commissions. Key Points: By August 17: MLS systems must remove compensation offers to buyer's agents. New Forms Needed: Decide on new Buyer’s Rep & Listing Agreements. Client Conversations: Prepare scripts to discuss compensation changes. 📅 Stay informed and prepared! Read the full blog now. https://lnkd.in/gaNFHmka #RealEstate #BrokerUpdates #AgentCommissions #IndependenceTitle