Real Estate Commission Lawsuit Settlement - Truth vs Hype
Dated: April 30 2024
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I think it is important to put things into perspective. Since March 15th, and even before with all the speculating, it has made Realtor's look either incompetent, crooked, or simply greedy and lazy. There is always room in every industry for policing, and I am a big fan of that, and have been directly involved in Real Estate Ethics, Fair Housing, Representation, and the like for the majority of my 28 year career. I think it is important to shed the light on a number of these Media Spins.
This is the first installment of a series that will most likely be 6 different posts. I would do them all at once, but.... Attention spans can be a tough thing to manage. Feel free to share this if you like.
MYTH 1: The media has stated that the settlement will, for the first time, allow sellers to no longer pay compensation for a buyer’s broker bringing the buyer.
THIS IS FALSE.
There has never been an obligation for a seller to pay buyer broker compensation. However, history has demonstrated that this practice has created healthy buyer interest in available listing inventory and has been recommended by real estate agents to their seller clients as a “best practice”. A past rule requiring an offer of some amount of compensation was a rule of display on a Realtor-owned MLS, yet it could have been as low as $1. That limitation was removed some time ago, and today the MLS accepts all listings, regardless of any inclusion or exclusion of a buyer broker payout. In the end, the decision as to what and how much to offer as a cooperative commission is a decision that the seller client and agent should discuss and strategize about for the best results for their situation and marketplace.
Stieg Strand
Stieg Strand is a husband, father of 3, and grandpa of 2 (Wow are they cuoooot!) and 30+ year career in real estate. Stieg spends his time and energy on building confidence so people can h....
The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity Program of the Regional Multiple Listing Service of Minnesota, Inc. Real estate listings held by brokerage firms other than RE/MAX Results are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (little black
house) and detailed information about them includes the name of the listing brokers.
