Welcome to August clients and friends. August, typically a busy real estate month when buyers and sellers choose to move before the new school year begins. However, due to high interest rates and increased cost of living expenses, this August sees fewer buyers and sellers than in previous years. People are of the belief that the Feds will be lowering interest rates in September, hence the August moves could just be delayed to September.
One thing is for certain, however. A recent National Association of Realtors lawsuit addressing compensation to buyers’ agents means that soon there will be changes in how Realtors will be working with clients in selling and buying real estate and conducting business. As a result of the settlement, the Multiple Listing Services (MLS) will be precluding sellers and their listing agents the ability to offer a prospective buyer’s agent compensation. Simply put, previously the Seller would pay both the Listing Agent’s and the Buyer’s Agent commissions. Now the term ‘commission’ cannot be used; rather it’s termed ‘compensation’ and it is no longer part of the standard form in listing agreements. It’s now up to the Seller whether or not they choose to pay the Buyer’s Agent commission. Most listing and purchase forms have already been changed while others are in the process of being changed. Have no doubt this change will affect how many potential Buyers will be shown or told of a listing by their agents if said agent may not be receiving compensation for his work should a deal close. It turns into yet another negation points for the Listing Agent and his or her clients. After all, Buyer’s agents should not be expected to work for free. The compensation payment could potentially fall on the Buyer.
I will be sending an Addendum to my clients with whom I have an active listing agreement. This should provide full transparency, clarity and specific instructions regarding how the seller wishes to advertise their willingness or unwillingness to consider offers seeking buyers’ agents’ compensation.
Changes become effective on August 13th or August 17th, depending upon which MLS has the listing advertised.
Realizing these changes may be confusing, please feel free to reach out to me for further clarification or with questions. My goal and position remain the same, to help you in your sale or purchase while keeping it as smooth and transparent as possible for you.
Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708
Comments(30)