Starting August 17th, new policies from a recent antitrust lawsuit will alter how real estate commissions are handled. The big change? Agent commission details will no longer be included on the Multiple Service Listings, also known as MLS, which is the private database that real estate agents and brokers use to share information about local properties.
What’s Changing?
Historically, MLS listings showed how much commission sellers were offering to buyers' agents, though buyers couldn't see this information directly. Historically, this transparency helped buyers and agents know upfront who would cover the agent’s fee. The new policy aims to make commission negotiations more flexible between buyers and sellers.
Will Sellers Offer 0% Commission?
Sellers have always had the option to offer minimal commission, but most have chosen to offer more to attract buyers. With buyers already shouldering down payments and closing costs, covering agent fees in cash out of pocket could be a key factor in their home search. While sellers might test offering less or no commission, many are likely to continue offering commissions even if it's not listed in the MLS. This info will be shared through brokers’ websites, social media, and direct communication.
How Does This Affect You?
For Buyers: Your agent will inform you whether a seller is covering the commission. Most listings will likely still offer commissions, but if you fall for a home that doesn’t, be prepared to negotiate this into your offer.
For Sellers: If your property is in a highly competitive and cash heavy market, removing commission details from the MLS could be a strategic move. It might give you leverage in negotiations and potentially increase your net proceeds. Discuss with your agent if your buyer pool is robust enough to take advantage of this strategy.
Stay informed and reach out to me for any questions on how to navigate these changes effectively!
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