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Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
Do you need a buyer agreement for open house attendees? Do we have finalized forms yet? Can we post offers of compensation on our websites or through a workaround app? There are plenty of questions floating around out there as we draw closer to the Aug. 17 implementation deadline for the terms of the NAR settlement.
So we asked (and you answered): What looming NAR settlement questions do you still have? Do you have a plan in place for working with buyers, sellers and cooperating colleagues? Has your brokerage provided enough training, or have you gotten your information straight from the local association? Do you feel confident that you have a handle on the day-to-day post-Aug. 17, or are you still struggling to catch up? Here they are:
- Our state association is stating that we should not include agent compensation as part of the purchase agreement. We should send a compensation agreement ahead of sending the offer and have that signed. However, I can see where sellers will be reluctant to sign without knowing the full terms of the offer. They have also stated that the compensation agreement should only be signed by the seller if it is a FSBO. If we are decoupling the commissions, wouldn’t the seller be the party offering compensation to a buyer’s agent on a compensation agreement, not the listing broker?
- We belong to several MLSs. Not all of them have provided guidance at this point. Some are now offering a “concessions” field in the MLS that is not supposed to be interpreted as compensation-related, but we never had that before. Seems to me like it’s an attempt to skirt around the new compensation rules. Also, new listing forms still have sellers agreeing to pay compensation in advance of a contract which seems to me to be in conflict with the spirit of “competition.”
- Why are people still talking about sharing of compensation?
- How is hiding an offer of compensation from the seller in the MLS supposed to make things more transparent?
- Do we need buyer’s reps at open houses?
- NAR direction seems to be different than state-level associations, such as CAR. There seems to be utter confusion around what is required per the settlement and what the DOJ wants, can NAR/ CAR leadership not go directly to the DOJ to hammer this out rather than leaving the entire industry questioning every move? Is it possible to share/market a seller wanting to offer a concession? The messaging here is so mixed…
- I’ve always worked with a buyer-broker agreement that stipulates what I do, how I work and how and what I get paid. If a buyer doesn’t want to work my way, they always have other options. I’ve never had pushback on this with the exception of a few that I didn’t care about working with anyway. All of the talk about a workaround further shows that our profession needs to step it up and run what you’re doing like a business or buyers will continue to run us.
- If a buyer comes unrepresented and the listing agreement states X percent to list agent and X percent to buyer agents and facilitators, I would think we need to have additional verbiage in the listing agreement to state X percent to listing agent if a buyer comes unrepresented. Is that correct?
- Where can we post commission splits?
- For a lead that comes in for a showing, what is the plan for a BBA?
- As a listing Broker, are we required to ask the buyer’s agent showing our listings if they have a signed BBA before showing the property?
- Should listing agreements still have a buyer agent (broker) compensation field?
- What is the best language to state in the MLS that the seller is willing to pay a commission? Do we say up to a certain number?
- Can I say “call for buyer’s agent compensation” in the private remarks?
- Can offers of compensation be included on social media ads for my own listings?
- Can a person go unrepresented into an open house?
- In New Jersey, our changes start from Aug 1. No, we are not prepared. Not really our broker’s fault. It is an implementation that is taking place prior to all of the missing pieces being provided to us. This is a stressful situation for buyers and for agents.
- Are we allowed, or not allowed, to let clients know up front if there is not a concession offered (California here and messaging is very unclear if this is a good practice or considered steering .)
- Can commission be shared in other vehicles besides the MLS e.g. company website, property statement, etc? I am in California, messaging is very unclear. Similarly, can you have an addendum to your listing agreement to allow for seller concession?
- Some type of showing form ( buyer rep, one-time showing, etc.) must be signed before showing a home to an unrepresented buyer. This does not include open houses and may not be required if showing your own listing (seller is being represented on both). Since the listing is the broker’s, and in a dual agency state, does this apply for the same brokerage agent who is holding an open/showing a buyer all listings of the broker’s? Or just their own personal listings?
- How will co-op commissions be easily offered to buyer’s agents? in property notes? on a separate text or email from LA upon inquiring?
- As a buyer’s agent, how do we absolutely confirm that the seller is willing to compensate the buyer broker? How can we confirm this? I am not speaking about seller concessions.
- Will agents actually call you back?
- Do I have to represent buyers when showing houses?
- Do you need buyer broker agreements to let people in an open house?
- Can a buyer specify they only want to view homes where the buyer agent brokerage is paid by the seller/listing brokerage? Buyer doesn’t want to participate in any out-of-pocket commission.
- Situations where buyers can’t pay buyer commissions out of pocket
- Can I still be a transaction broker in Florida? I sell a lot of my own listings. What forms do I need to fill out, if any, to show my listing to a buyer?
- None of them. Our state association has done an excellent job with the forms. My brokerage is on top of training. I am more concerned about the number of Realtors that have no clue to what is going on.
- What is happening?
- My Montana local and state boards have yet to provide any forms or training.
- Discrimination
- There is no guidance on property management. If the MLS does not allow compensation in the system for any property type, then how does a lease agent fee get disclosed? There is no guidance from anybody on this property type.
- I have tons, but here goes: Can we use a name rider on our For Sale signs with seller offering 3 percent compensation?
- Can closing concessions in the MLS have much detail surrounding how they were applied? i.e. for buyer’s agent compensation, etc?
- Must I have a separate buyer-broker agreement for each property that I show as has been told to me by others but no findings of the answer?
- I want to better understand the liabilities of implied agency. An unrepresented buyer asks a zillion questions: How much should I offer? Tell me about the comps in the area. Can you recommend an inspector? What should I ask the seller about for the inspection? What special stops should I add to contract? I would like to see the term customer eliminated and replaced with unrepresented buyer. This is more transparent and accurate. We as a society believe that the customer is always right. So someone who is a customer will think they are always right. Sadly, we won’t know how this will play out until a couple of months into the new process. I am also concerned about fair housing issues. And my list goes on and on. I do not feel my office is adequately preparing agents. I am a 27-year seasoned agent and I have concerns. Especially, will my broker have my back if things get dicey?
- Can MLSs publish offers of compensation on rentals and commercial listings?
- Can buyers walk away from the escrow, and not pay their Realtor but close the sale?
- Open Houses. What if a prospective buyer will not sign the buyer’s agency agreement? Do you not show the home to them? What are the open house guidelines, as I have not seen anything on them?
- If a potential buyer comes directly to me as the listing agent, can a member of my team show the house without a written agreement?
- Will commission rates be dropping due to the new settlement?
Editor’s note: These responses were given anonymously and, therefore, are not attributed to anyone specifically. Responses were also edited for grammar and clarity. Inman doesn’t endorse any specific method and regulations may vary from state to state.
What did we miss? Please share your thoughts in the comments section below.