P.O. Box 738, Salado, TX 76571
The REAL Report - Explores Real Estate, Living & Luxury
Let’s dispel some of the headline myths regarding the NAR commission settlement.
1. No CNN - it is not “seismic” - instead of a buyers agent commission being set by the seller and listing agent and posted to MLS, the buyers agent commission becomes part of the sale negotiations.
2. 6% was NEVER the set deal. That would be a violation of the 1890 Sherman antitrust law. The commission level was negotiated between the seller and the listing agent at listing. If it was 4% - the listing agent usually would then post on MLS 2% for the buyers agent. Some listing agents would negotiate 5% with the seller and still only offer 2% to the buyers side.
3. This changes nothing for the buyer. In Texas, a buyer’s agent who knows the regs and their worth will have had their buyers sign a representation agreement BEFORE placing the buyer in the car.
Headline Upheaval
EDITORIAL COMMENT BY DEBBIE STEVENSON
Why?
I. Without a representation agreement, the
buyers agent by default represents the seller.
II. This means in Texas the unrepresented buyers agent is a SUBAGENT - and usually per the listing entry on MLS is NOT entitled to ANY compensation. For the record, I always enter ZERO for a subagent on my listings because:
III The last thing I need in a complicated real estate transaction is an unrepresented buyer or an agent whose lack of competency brought a lack of representation to the table. These are the offers most likely to default and not make it to closing - a scenario that costs BOTH sides.
So what is the big deal?
The change now means more agents will require a buyer to sign a representation package that sets a geographical area with minimum amount of commission they are prepared to accept as their fee for their time, mileage and expertise.
For my buyers, absolutely nothing has changed. I am an independent contractor (just like your doctor, dentist, lawyer or tax accountant). The commission is my income.
Debbie Stevenson
WHILE NAR's LAWSUIT SETTLEMENT CHANGED NOTHING, HEADLINES DID
THE DEBBIE STEVENSON GROUP
But unlike those professionals, if I don’t get you to the closing table - I don’t get paid - my expenses are not covered.
So long before this lawsuit was filed, I calculated my worth, skills and cost of living expense.
My buyer agreements stated I will be paid 3 percent of the sale price at closing and funding. That meant if sellers only agreed to 2 percent - my buyers agreed to pay the remaining 1 percent.
My listing agreements set my commission at the same level, based on the same calculations - and will continue to do so.