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Will Buyer Agents be Compensated ?

By
Real Estate Agent with KW Elite

.   I saw a post yesterday on a FB Instructors Group ,

where an Agent drove 25 miles to show a house 

and afterward found out the Listing offered Zero

compensation to Buyer Agents. The Agent was 

peeved . But is there a new reality when showing 

houses ?

      The answer is yes . Because Buyer Agent $ is no 

longer allowed to be published in the MLS , an 

agent must be proactive about potential compensation.

It seems that we will now have to track down( text) 

the Listing Agent before scheduling a Showing, to

verify If there is or not any compensation.  If the

answer is NADA , we will have to implement Step

#2 ( taught in NAR’s ABR Class) and call our Buyer.

Today, it is NOW assumed that you have an executed.  

Buyer Agency Agreement . We will need to tell them

that for this Listing they will be financially be 

responsible for our Fee . And then say “ Based on this,

do you still want me to schedule a Showing for this 

Listing  ? “ ( taught in ABR) .

The Takeaway - Do not start your Car until you have 

a Signed Employment Contract and confirmation of

your Compensation. 

       

Posted by

 

Michael J. Perry

KELLER WILLIAMS Elite

www.lancaster4sale.com  

 

1280 Plaza Blvd. , Lancaster, PA 17601

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Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for sharing this advice.

It will take some time for some to be comfortable with the new practices.

Apr 20, 2024 06:55 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Michel,

Good post on buyer agent's commission procedure now. We've been using Buyer Agency Agreements for over 12 years and is the first thing I go over in a buyer consultation with a new buyer is review how real estate works in Texas and have them sign a Buyer Agency Agreement. They know from the get go that if the seller is not paying a commission I'm charging the buyer will make up the difference. Buyer's Agents will now learn to check for compensation prior to showing a home and follow your suggestion before starting up their car to show any property.

Apr 20, 2024 07:20 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Great advice Michael J. Perry and so true. Even though the MLS rule is not in effect yet, we can still publish CBB% until July 2024 (assuming the settlement sticks). But, agents should have ALWAYS been practicing what you're advicing. I have for 25 years all buyers. I never work for anyone without a signed agreement period.

If you never take a listing without an agreemnt, never take a buyer without one or you deserve to work for free. 

Apr 20, 2024 07:50 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Michael, time will tell of how this will shake out in our business.  Did not know it is starting already.

 

Apr 20, 2024 07:57 AM
Michael J. Perry

My understanding is 7/1

Apr 20, 2024 08:17 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

25 miles is from one bridge to the other in my area, all part of the service area. But gas is expensive. I would have checked first, and made sure buyers understand that I gotta get paid somehow. Having said that:
A: I RARELY work with buyers except on my own listings. Buyer's agents bust their asses. mad respect for them.
B: ALL my listings always have, and ALWAYS WILL offer a fair split. PERIOD. 
That seller offering zero is cutting their own hair without a barber unless the pickings are so slim in that area there are no alternatives, why limit the buyer's pool? 

Apr 20, 2024 09:40 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Nobody should be expected to work for free and for a buyer to expect that is not practical. Buyer's agency forms have areas to write in compensation and that should be pointed out to the buyer and initialed. 

Apr 20, 2024 11:51 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Michael J. Perry the new compensation model is going to make it more difficult for Buyers to come up with the necessary funds for closing costs.

Apr 20, 2024 12:31 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Afternoon Michael J. Perry 

It is my belief, that no matter what, if you are acting in the capacity of a buyer agent your conversation with them should include the potential for them to compensate you for your services.

Apr 20, 2024 12:38 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Michael- this is a wake up call for agents who have not been accustomed to using Buyer Agreements. As Candice A. Donofrio gas is expensive and so is your time!!

Apr 20, 2024 02:35 PM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Unlike in the past, there is no guarantee the seller automatically pay buyer agent's compensation moving forward.

Because Buyer Agent $ is no longer allowed to be published in the MLS, an agent must be proactive about potential compensation. It seems that we will now have to track down( text) the Listing Agent before scheduling a Showing, to verify If there is or not any compensation.  

Apr 20, 2024 03:11 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Apr 20, 2024 06:31 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Let's be clear I tell my clients (mostly sellers) if we do not compensate the buyers' agents it will take longer to sell the property and in turn for less money... so with that said all my clients are willing to pay the buyer's agent. As to this situation... seriously??? I get calls from buyer's agents what is the commission, and I am thrilled to let them know I am not like other land listing agents I get top dollar:)Endre

Apr 20, 2024 10:19 PM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Cicadas are coming! Cicadas are coming!

There's a whole lot of new to absorb.  Yes, we will have to be very proactive in these new days of real estate, but these new rules have not yet taken effect.  And they don't take effect 7/1... according to the settlement, they don't take effect until mid-July but even that it vague... is that July 14th, 15th, 16th... we don't even have a cut-off date, yet.

It also will not be assumed that the buyer's agent will have an executed buyer's agency agreement... it will be legally required.

There are still plenty of ways for the listing agent to advertise the co-operative buyer's commission.  They could publish it on their own website, hang it on their sign-rider, put it on brochures, flyers or a billboard.  Or, as you point out, you could reach out to them by text, e-mail, even phone to find out if they're offering a buyer's commission.  It is, indeed, a brave new world.

Apr 21, 2024 03:54 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

To answer the subject line "Will" buyer agents be compensated? If they aren't they won't be in business long, so they're going to have to be proactive.

Apr 21, 2024 04:45 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Buyer agents need to get accustomed to using a buyer-broker agreement before showing homes.

Apr 21, 2024 06:20 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Time to get ready for a whole new world, Michael. Fortunately this MLS rule doesn't go into effect for a few more months, which gives agents plenty of time to figure out their approach to showing homes.

Apr 21, 2024 06:43 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Michael,

Glad to see your post featured in Kathy Streib Sunday series. I commented initially but good to read the comments. I especially liked Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets comment: If you never take a listing without an agreement, never take a buyer without one or you deserve to work for free. 

Apr 21, 2024 07:36 AM
Kathy Streib

Thank you Dorie Dillard Austin TX 

Apr 22, 2024 02:47 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

This is going to become an issue agents learn to deal with very quickly.

Apr 22, 2024 07:44 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

It sounds to me like calling the listing agent won't be enough. You'll need confirmation in writing. Hopefully a saved text or email will suffice. 

Apr 22, 2024 01:23 PM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

I am sure there will be a solution on the horizon at some point.  Not sure which way to lean on any recommendations. I wish good luck to all and hope we all get paid.

Apr 23, 2024 08:14 PM