The Day the Real Estate World Stood Still
So, as of today, the MLS (Multiple Listing Service) has removed the offering of commission from its computer.
Yesterday, and for the last 50 or so years, if you wanted to go see houses, you would call up your agent or pop into a real estate office. You would announce that you wanted to see a house, and agents would trip on each other to take you out, operate the lockbox and show you the house of your dreams. If the subject of commission or compensation came up, your agent would say something like, “Don’t worry about it, the seller pays me through their offering on the MLS.”
Not anymore.
As a result of several lawsuits you may or may not have heard about this year and the involvement of the U.S Department of Justice, there are now new rules in place. Can you hear it? This is the calm before the storm. This is the day the real estate world stood still and tomorrow the chaos begins.
Let’s see:
An agent must now explain how they get paid and have any potential buyer sign a Buyer Broker Agreement before that agent can touch a lockbox.
Any potential buyer who refuses to sign, now becomes an “Unrepresented Buyer” acting on their own behalf. Just think Abraham Lincoln, “Anyone who represents himself has a fool for a client.”
Sellers may still offer to pay the buyer’s agent compensation, just not published on the MLS and buyers must now negotiate with the seller for that compensation as a concession on Page 2 of the contract.
This is supposed to make commission or compensation negotiable, which they always were, it should make everything more transparent because this must now be discussed up front, before you see a house and before you even know if this is the agent you want representing you for the next six months.
We will be further exploring these new rules, new forms, new procedures, and all the new confusion through this weekly email for the month of August. Then we will see what the month of September holds.
If you have an immediate need to buy or sell a house, call me 24/7 at 602-796-5751. I would love to answer your concerns and hopefully bring calm to your situation. All is well. We can get through this together.
Call me,
Joseph Callaway
P.S. We will be offering short-term, non-exclusive Buyer Broker Agreements for as few as just one house and for as little as just one day.