Big Changes in Listing Agreements & Buyer Brokers Compensation Agreements

Starting August 14th, there will be a significant change in the listing agreements with sellers and also how compensation is paid to buyers' brokerages for residential real estate transactions.

Previously, the home seller would commit to pay a total commission fee at the close of their sale, which would be split between the Seller and Buyer’s brokerages. This fee would be accounted for in the final purchase price of the property.

The new change requires home buyers to have their own Buyer:

1. The home seller can still offer compensation from the proceeds of their home sale to the buyer's broker or they can offer a concession to the buyer.

2. The home buyer can pay the compensation to their agent's brokerage.

3. A combination of the above methods.

Additionally, the MLS will no longer display the commission amount provided by the home seller for the buyer's agent's brokerage. Instead, there will be a simple indication of whether the home seller is willing to give concession to the buyer.

These changes make it even more important to choose the right real estate professional. We are dedicated to you having an extraordinary home buying and questions you may have regarding these changes.