Currently, when someone sells a home, they meet with a listing agent to determine the listing price and the compensation for both the listing and buyers’ agents. The listing agent advertises the buyer’s agent’s commission in the Multiple Listing Service, so buyers’ agents are guaranteed a fee for bringing a successful bidder.
UNDER NEW RULES, PROMISES OF COMPENSATION FOR BUYERS AGENTS WILL BE PROHIBITED IN THE MLS.
Buyers’ agents are not guaranteed a fee and will have to ask EITHER THE SELLER OR THE BUYER for their fee.
But buyers probably won’t want to pay agent fees.
THE RESULT – PURCHASE OFFERS MAY BE CONTINGENT ON THE SELLER PAYING THE BUYERS AGENT’S COMMISSION (AS IS DONE NOW).
The seller will get two contracts – one for the purchase of the home, the other for the buyers’ agent’s commission.
THIS PLACES A PREMIUM ON AN EXPERIENCED LISTING AGENT’S NEGOTIATION SKILLS.
The Listing agent protects the Seller’s NET PROCEEDS – their bottom line at the end of the transaction. An experienced agent will plan for all expenses in a sale (including commissions) so that the SELLER’S NET PROCEEDS match the seller’s expectations. He will also protect the seller from litigation resulting from chaos in the market.
CALL ME WITH ANY QUESTIONS ABOUT HOW THIS WILL WORK!
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