As you may know, there have been some major changes happening lately in the real estate industry. Much of it has to do with the way we as brokers do business. The 1st major change is that the Multiple Listing Service, MLS, no longer can have the commission displayed for how much the Buyer’s Broker will be paid. The 2nd major change is that before you see a home with an agent, the agent needs to have a signed Buyer Agreement with the Buyer stating the compensation that will be paid to the agent if they procure a property for them.
These two structural changes have made it much different from what we as agents have been used to and how we operate with our clients. Previously if we showed a property then we would have “procuring cause” which made it so we would get paid whatever the amount was listed on the MLS. Now that there is no compensation on the MLS, the agent has to have the Buyer sign a Buyer Agreement outlining the compensation that the Buyer will owe for the agent’s services and this has to be signed prior to showing the home. This is ultimately a fee the Buyer will have to pay but most agents are including an addendum in their offer on the property to have the Seller pay their fee. If the Seller refuses to pay the Buyer Broker fee then the Buyer may move on to a property where the Seller will pay it or the Buyer will have to take on that expense.
There is a misconception that now Sellers will not be asked to pay the Buyer’s Broker. The difference now is that it is a negotiation point when the offer is presented as opposed to a predetermined amount being offered.
Bottom line is Sellers still want to sell and Buyers still want to buy so that will not change. How we as brokers communicate our value with Buyers and Sellers will change but we will all adapt to this new reality.
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