New real estate rules pushed for separate compensation for agents.
The real estate industry is experiencing major adjustments this year, including changes to how agents are compensated. If you have heard about this but are unsure of the details, I’m here to simplify what’s happening now that these changes are in full effect.
I’ll start by telling you where it all started. About a year ago, our trade organization, the NAR, lost a lawsuit that resulted in a significant payout and required changes to certain practices in our industry. Here are three changes that you should be aware of:
1. Signing a Buyer Service Agreement. This change affects buyers the most, who must sign a service agreement before an agent may show properties. This is different from before, when buyers could view houses with any agent they wanted. One way to handle this agreement is to set a term or timeline for working with the agent and agree to compensate them for it.
“Many sellers are still asking agents to show their homes and bring them offers.”
2. Decoupled compensation. Before, listing agents and buyer’s agents negotiated their compensation together. Now, these fees are decoupled, meaning the seller and buyer each agree to pay their respective agents. This separation can provide more transparency and flexibility in the negotiation process.
3. Negotiated compensation. Compensation for buyer’s agents is now negotiated at the time of offer rather than being predetermined or advertised on the MLS. A buyer can pay their agent in full, but often they’ll ask the seller to help them shoulder the buyer’s agent compensation. Sellers can choose to pay none, some, or all of the buyer’s agent’s compensation.
This is a little different from what we’re used to, but it doesn’t mean buyer’s agents are going away. Many sellers are still asking agents to show their homes and bring them offers. I hope this explanation was helpful. If you have further questions, please don’t hesitate to contact (503) 804-1466 or Anne@SellingPortlandHomes.com.
