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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.
While you probably know by now that one result of the commission lawsuit settlements is the end of cooperative compensation being posted on NAR-affiliated MLSs, you may not realize that there’s still a lot of back and forth about if, where and how offers of compensation can or should be posted.
In May, Department of Justice attorney Jessica Leal said, “We believe offers of compensation should not be made anywhere, but certainly not on the MLS.” More recently, Jason Abrams, Keller Williams head of industry and learning, said, “Sellers can still decide to specifically offer cooperative compensation, and it can be marketed any place other than the MLS. This could include things like newsletters and text messages and carrier pigeons. Or a broker or agent’s own website.”
So since we’re out here just trying to figure this stuff out, we asked you: If you plan to offer cooperative compensation on behalf of your sellers, where do you plan to do so? Will you update your website for each new listing? Will you communicate one-on-one with buyer agents? Will you send out an email or text blast? Are you looking for some other workaround or is your MLS providing alternatives? Here’s what you said:
- Website
- I don’t really plan on any changes at this time. I do have conversations with my buyers and sellers as to what is happening in the industry just to keep them informed. I am listening and watching to see what others are doing, but at this point in time, no change.
- Have a conversation with the buyer of all costs — down payment, closing costs, contract costs and commission. Discuss different ways to pay for these items — their own cash, down payment assistance programs, ask seller for concessions and any other source that comes out in this new market.
- I’m predominantly a listing agent (who will not do dual agency aka the next big lawsuit!) My fee for service will go up as my time will be spent one-on-one discussing the options or negotiating the buyer agent fee — many will not know what to do and I see this strain on time as a huge drain on agents. I think it will be one-on-one. Email blasts: I hope not. Websites: wouldn’t that be the same as publicly posting? Communication is key, and that means conversations, which are a lost art today. Maybe it’s best to go back to basics and actually talk to people. If it’s in an email or a website, no one reads it anyway. Thank you to all the lawyers who have made our lives hell. Your 30 percent-plus of this is way more than what we make all day long.
- To start with, I intend to send out an email blast with a brief explanation for clarity, and also prepare a YouTube video to explain in more detail, providing the link to that video along with a link for more information. This is just a start.
- On our website and in our non-MLS advertising, as well as broker-to-broker direct conversations
- Agent to agent remarks in the MLS:
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- 1. Seller is offering X% concessions.
- 2. Seller offering X% concessions and/or any typical buyer-paid fees.
- 3. Seller willing to negotiate concessions up to X%.
- 4. Seller willing to offer/negotiate concessions.
- I will respond to calls, texts and emails with my sellers’ commission. If our RE Commissioners make a form for us to use, I’ll do that as well. Easy breezy
- I plan to ask agents to text me for info. I also think that we can communicate that internally at our brokerage, so I will take advantage of that as well. I wonder if it will be “allowed” to have an internal database that agents can update as they get compensation data for a house listed by another brokerage. For example, I contact the listing agent for 123 Main St. I ask about compensation. I share that with my buyer and then update an internal shared document. I also wonder what I can communicate in an e-mail blast to local agents. Since compensation can’t be listed on the MLS, can it be stated in an e-mail?
- Flyers, website
- Advise buyer agents when they inquire or request a showing. Do this in the form of text, email or phone conversation.
- Eblast, if it’s legal
- A lot of agents don’t answer their phones, so I believe that will become a frustration point for agents. My buyers will simply negotiate it in the purchase offer. Clean and simple.
What did we miss? Please share your thoughts in the comments section below.