There are many rumors and misunderstandings regarding recent changes to the real estate industry. It is true there was a settlement agreement of a class-action lawsuit in the Spring which imposed quasi-new requirements and procedures for both Realtors and MLS organizations. It is NOT true that the buyer’s broker is no longer entitled to a real estate commission. The mandated practice changes simplify the compensation process, making it more intuitive and transparent to the buyer and seller.  

The “new” system emphasizes direct payments and direct negotiations. Just like the “listing agreement” between sellers and their broker, buyers are now required to enter into a written representation agreement with their broker. The agreement fixes the broker’s compensation and memorializes the rights and responsibilities of the buyer and the broker. Previously such agreements (depending on the local custom) were not very common.  

Many buyers will not wish to pay the broker’s fee directly out of pocket, and will instead prefer to wrap the fee inside the mortgage. *This is effectively what buyers have always done. For these buyers, you can expect to receive a “conditional offer” shifting the obligation to pay their commission obligation onto you, as the seller.  Regardless of the structure of the offer, your consideration remains the same — WHAT IS THE NET purchase price offered.  

When the time comes, we will assist you in weighing and comparing offers and calculating your “net.”  In the meantime, we will focus our efforts on the presentation and preparation of the property, and on executing our marketing plan. We are confident that our combined efforts will yield top-dollar results.