As of August 17, 2024, Realtors are no longer allowed to show any paid fee (compensation) for the buyer's Realtor in the Realtor's MLS system. This does not mean fees are not being paid. It just can't be advertised on the MLS system. It can however be advertised anywhere else the seller chooses. This rule is not being placed on sellers, it is being placed on REALTORS, and for now, ONLY in the MLS system. Listing Realtors can however advertise seller paid concessions in the MLS system. Concessions may or may not be used for compensation.

What is Compensation?

Compensation is the amount of money paid to a Realtor for the work they do to get a property marketed, under contract and closed, whether you are the listing agent or the buyer's agent. This is money that is being paid to the Realtor's brokerage for work the Realtor does. Simply showing a property does not get a deal to closing. There is a lot more work that is done behind the scenes where most buyers and sellers have no idea what is actually being done.

Sellers have already agreed on an amount they are willing to pay to their listing agent prior to listing their home. As an incentive to possibly sell their home faster, the seller may also offer to pay concessions for the buyer. Examples of concessions include; closing cost, pre-paid loan interest, pre-paid taxes, points, interest rate buydowns and yes, the buyer's Realtor fee.  It is up to the BUYER to decide how they want to use the concessions that are being offered by the seller, if any. If the seller offers zero concessions, it makes it harder and maybe less desirable in terms of cash for a buyer to purchaser their property.

The Department of Justice made an agreement with the National Association of Realtors that went into effect on August 17, 2024 mandating that no property can be shown by a Realtor without a Buyer's agreement PRIOR to showing. It must be determined up front prior to any showing what amount the buyer is paying the Realtor. The buyer can also stipulate in this agreement for the buyer's Realtor to not show the buyer any homes unless the seller is offering concessions on that home. This would be done in cases where the buyer does not have the money to pay, or wants to save their own money to purchase to obtain a better interest rate, buydown cost, etc.

Regardless of what is being offered or not, as always, compensation, concessions, prices, appliances, outbuildings and furniture have been and always will be negotiable in every deal.

 

For questions about compensation, please click the link and Georgia will answer your questions.  CLICK HERE