Adapting to Real Estate’s New Norm

It’s been a month since the major changes took effect on August 17, altering how real estate professionals handle compensation. Gone are the days of communicating offers of compensation via the MLS. But don't worry—buyers and sellers still have plenty of ways to navigate these crucial details off-MLS with their agents.

To keep everyone on track, the National Association of REALTORS® (NAR) has rolled out a series of “Window to the Law” videos. The first one serves as a reminder that compensation has always been a negotiable element in real estate transactions.

So, how can agents and consumers adapt to this new landscape? Charlie Lee, NAR’s senior counsel and director of legal affairs, shares some innovative strategies to ensure smooth compensation negotiations:

Get Creative with Marketing: If a listing broker or seller wants to offer compensation to the buyer’s broker, they can use marketing materials such as flyers, signs, or emails. This approach keeps everyone informed without needing the MLS.

Leverage Your Website: Brokers can feature compensation offers for their listings directly on their own websites. However, they cannot display offers for other brokers’ listings unless they obtain the data outside the MLS.

Consider Seller Concessions: Sellers might offer concessions that cover expenses like closing costs or the buyer’s agent’s commission. While these concessions can be listed in the MLS if permitted, they shouldn’t be tied to using a buyer broker.

Negotiate Smartly: Buyers can include broker compensation as part of their purchase offer terms. This empowers buyers and sellers to handle negotiations directly.

Solidify with Buyer Agreements: Under the new rules, buyers and their agents must enter into written agreements before touring homes. These agreements will outline the compensation structure for the buyer broker’s services, ensuring clarity from the start.

These changes aim to enhance transparency and fairness by shifting compensation negotiations off the MLS. The goal is to foster more direct, personalized conversations between buyers, sellers, and their agents, leading to better deals and more satisfied clients.