Change Presents Opportunity
There has been significant change in the real estate compensation structure, which has rema ined the same for decades. However, we believe this change presents an excellent opportunity for us to communicate better the benefits we offer our clients and the choices they are empowered to make. Traditionally agents representing home buyers were compensated via a cooperation agreement with the seller and seller's agent facilitated by the multiple listing service. While this practice has worked well for so long because it provides the greatest economic benefits for both buyers and sellers, the MLS is no longer allowed to facilitate this practice. Buyer's agents are now responsible for negotiating their own compensation with clients. We always stand ready to serve you and hold ourselves to the highest standards in the industry!
Understanding Practice Changes and the Impact on the Client
For Sellers
Bottom line, sellers decide what they are willing to pay for their broker's services and how much they want to offer to compensate the agent who represents a buyer in the transaction.
We believe many sellers will continue to offer compensation to the buyer's agent because it may make their home more marketable, creating opportunity to the largest possible pool of potential buyers.
For many buyers, saving for a down payment is difficult enough. If buyers have to pay real estate compensation out-of-pocket on top of closing costs, it may reduce the pool of buyers and potentially impact how much the home sells for and time on the market.
No matter which method of compensation you decide to take, compensation is always negotiable, and you are encouraged to talk to your agent to understand and agree upon how they expect to be compensated.
Seller's Options
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You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers. Y
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Your agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker will make to another broker acting for buyers.
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This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment. T
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You as the seller can still offer buyer concessions on an MLS
For Buyers
As a homebuyer, this changes the real estate experience. It has long been the practice here in Georgia (as required by law) that buyer's agent inform the buyer of agency and explain how compensation worked for their services offered. Recent changes now require buyers to sign a written agreement with the real estate agent in order to see homes.
The buyer's written agreement will formalize your agent's responsibility to you, further protecting your interests. It offers the opportunity for transparent communication with your agent around compensation giving you a clear understanding of the cost of services and how those services benefit you.
We believe these conversations will ultimately set you up for greater success in your home search; providing you with a clear understanding of your strategy, how your agent will support you, and what it will take to get to the closing table.
Buyer's Options
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Buyer's agent compensation paid in full by the seller or seller's broker.
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Buyer's agent compensation paid in full by the buyer at the time of closing.
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Buyer's agent compensation paid as a seller concession like closing costs.
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Buyer's agent compensation paid as a combination of the above.