If you’re affiliated with Better Homes and Gardens, Century 21, Coldwell Banker, Corcoran Group, ERA, or Sotheby’s International, your company will be among the first to implement changes that are most likely to result in buyers having to negotiate their own commissions.
The question is what will this brave new world look like? In July of 2021, the NWMLS implemented a series of changes that address this issue and apparently meet with the DOJ’s approval. Here’s the explanation from the article I did back in July of 2022 about what they did and how this may look for anyone selling a property listed by the firms above.
The NWMLS made two significant changes that allow the buyer and the buyer’s agent to negotiate directly with the seller the amount of the buyer’s commission.
The first step in killing future commission bombshell litigation involves ending the current model of sharing commissions. Instead,
“The compensation the seller offers to the buyer broker will be determined by the seller, rather than commission sharing between the two brokerage firms.”
The second step clearly allows commissions to be negotiated between the buyer, the buyer’s agent, and the seller.
The compensation the seller offers to the buyer broker will be prominently stated on the first page of the NWMLS purchase and sale agreement, with an opportunity for the compensation to be accepted by the buyer and the buyer’s broker or modified by the parties in an addendum.
This week’s CoachingClues ** is vital to your business if you intend to continue to represent buyers. Use this column as a starting point for how you will create your personal buyer value proposition Second, if your local or state board of realtors, MLS, or your company offers “buyer broker” training, sign up for it now.
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