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Proposed NAR Settlement: Don't these two points in the proposed settlement seem contradictory? 1. No offers of compensation. MLSs must eliminate any requirements that brokers or sellers make offers of compensation through the MLS and prohibit the same. Similarly, MLSs must eliminate all broker compensation fields and prohibit sharing offers via any other fields in the MLS system. 2. Concessions in MLS permitted. Sellers may offer buyer concessions on the MLS (e.g., for buyer closing costs), so long as they are not limited to or conditioned on the retention of or payment to a cooperating broker.
Eric Flathers
4mo
In today's market with all the technology we really don't need to be offering agents commission if they aren't the ones who found the listing. Many buyers are finding listings on their own. We just sold my mothers condo after she passed and got a flood of buyers simply from putting it on Zillow. The buyers agent asked if we would pay her commission if she showed it to her buyer. He found our listing on Zillow. We felt if we didn't agree she would have told him not to bother with the viewing. I think the system is broken, like how a seller can't list on the MLS with out a broker or all the unnecessary paperwork. The MLS is basically the real estate mob and a monopoly. The buyers agent did nothing and got 2.5%. Our lawyer handled all the paperwork on our end. There is a place for agents, some people want hand holding and that's fine. And some seller agents really push and advertise the property. But for the most part agents are over paid for the small service they are providing. I see them being pushed out of the game over the next 10 years by tech advancements.
Vanessa Saunders
4mo
The two points in the proposed NAR (National Association of Realtors) settlement you're referring to don't actually contradict each other, though they might seem to at first glance. Here's how they are distinct: 1. **No offers of compensation**: This eliminates mandatory offers of broker compensation through the MLS, allowing more flexibility in transaction structures and broker payments. 2. **Concessions in MLS permitted**: Sellers can offer buyer concessions (e.g., closing costs) on the MLS, as long as these aren't tied to broker compensation. This allows incentives directly to buyers, separate from how brokers are paid. These points change traditional broker commission structures and direct buyer incentives without contradiction.
Gary Arnold
3mo
Quit The NAR. Before submitting any offer to purchase Have the seller sign an agreement of compensation for that particular buyer if the seller is offering any. Otherwise buyer will need to pay. I think listing agents will end up with all the business. Since they can show the home WITHOUT an agreement in place with the buyer.
Brian Adams
4mo
The law of unintended consequences. Because compensation offerings are no longer recorded anywhere, how do we educate sellers on what to offer? Instead they are guessing? Doesn't that make it far easier to just go with the traditional amount rather than evidence based insight into the effectiveness of buyer agency compensation?
Eric: maybe an hourly rate or flat fee for buyer agents is on the horizon. They need to get paid for the houses that the buyers don't buy, its time spent. I don't think you're saying they should work for FREE. Time will tell how this shakes out, but the buyers will have many choices of payment as do the sellers, which they've always had. This Class Action should have never been agreed too!
Andrew Nathan
4mo
It will lead to buyers agents asking for more from sellers including closing costs for their clients.
Saul Klein, would the difference be the degree to which the offer of compensation is legally binding on the seller? A seller concession is really no more than a suggestion that if the offering price is high enough, the seller may agree to pick up the buyer's tab for using an agent?
Aimee Vora
3mo
The fact that most of you cannot negotiate compensation from your buyer is astounding.
Vice President of Sales & Operations at Zenlist | PropTech
4moI think the difference is: When it's an offer of comp, it's enforced by the MLS/AoR in a way that when that home is sold, the buyer agent is guaranteed to get the listed comp on the home, regardless of the price sold for. When it's a seller-offered concession, there are 2 differences: 1) this is merely a starting offer from the seller but the buyer still needs to put it in the contract for it to be binding. If the buyer, for example, comes in with a much lower offer price, the seller may say, ok well no concession then. It becomes a starting point for a negotiation. 2) the concession is a pool of money for the buyer to use to distribute across their costs at their discretion. They may decide all of it goes to their agent, none of it goes to their agent, or some portion of it goes to their agent. What that means is that buyer agent A and buyer agent B, even if both of their buyers had a contract on the same home in different universes, are not guaranteed to be paid the same.