There’s a misconception that you need to call every listing agent to verify the compensation or concessions being offered, since your MLS won't publish
the CBB% after 08/17/2024.
This isn't necessarily true, and here's why below...
To be completely transparent, I have called almost every listing agent before almost every showing for the last 25+ years because I almost always have pre-showing questions that may determine whether or not the property will work for my buyers. Adding the compensation question to my usual inquiries is no big deal since I'm calling ahead anyway. But...
Once you agree to work with a buyer, you must show them all homes in their price point regardless of compensation or concessions to avoid steering. So the conversation you have up front is very important to setting expectations.
When your buyer commits to your fee upfront in your state's Buyer/Broker Agreement and you inform them that you will attempt to secure that fee from the sellers first in each of their offers, this establishes clear expectations and ensures you are compensated for your work. This also assures the buyers that your fees only fall to them in the event you are not completely compensated by the seller. They also need to know it's just the shortage, in many cases, not the full fee. So, you can show all properties regardless of compensation because you're covered and (bonus) you do not risk steering your buyer-a big no-no!
I'll state this again: Once you agree to work with a buyer, you must show them all homes regardless of compensation or concessions to avoid steering, unless the buyer explicitly states in writing not to show them homes that would cost them any of your compensation fees.
Moving forward, you would submit your compensation request with each offer to verify what is being offered from the listing side and to show your buyer you tried to get the listing agent or seller to pay, but the fee was declined and is now theirs to pay—which they agreed to do by signing the Buyer/Broker Agreement.
Buyers only cover what sellers' concessions or listing agents' compensations do not offer. Therefore, you technically only need to call ahead for showings your buyers are interested in writing an offer on so they (and their lender) are aware of any additional closing costs; since it doesn’t matter what the compensation is for the ones they pass on.
If a buyer upfront states they won’t pay your fees no matter what, you can choose not to work with them up front and eliminate the risk - or take the risk and still represent them and request/negotiate your compensation in the offers per usual. If the seller doesn’t pay and the buyer can’t, the new Buyer/Broker has provisions that allow you to cancel that specific deal, not the buyer relationship, but just the deal, and then move on to the next property.
So you do have options—at least in California you do—and it's not as laborious as some are complaining it is. In fact, the Buyer/Broker Agreement has not changed much in principle or procedure, and most of our tour of homes preparation is standard operating procedure as most experienced agents would agree.
I hope that information helps calm the hype.
Cover Photo by Moose Photos
2nd Photo by energepic.com
3rd Photo TJN
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