“Hear Ye, Hear Ye!” yelled the Town Crier in the 1800s. Today’s Crier is the Internet and TV, and they are yelling, ‘Woe is the Real Estate Industry.’ As a real estate firm across the street from Stonecrest, we thought we would help clear up a few headlines and give a behind-the-scenes story.

The suit was filed against a few large companies and then the National Association of Realtors, stating they participated in ant-trust activities. They said that sellers felt taken advantage of by paying a commission for the selling agent and the buying agent. Any of you who have sold know that that has always been an option when sellers sign the listing agreement. There is a space for the total commission to be paid at the closing table.  There is a separate paragraph which states the part of that commission which is paid to the selling agent.

Let’s talk about who is actually paying for the commission. It is truly a cost on the seller’s side of a closing statement, but it is calculated into what the buyer is writing a check for. So, the buyer is paying both sides.

When you have a good agent, they will prepare a seller’s net sheet when they take a listing. This net sheet will include an estimate of the known expenses, including the commission, so that they can calculate the price they need to sell the house for to cover all of the expenses, including the commission. That is the price at which the buyer makes their offer. That is the listing price posted in the Multiple Listing Service, a compensation agreement between the Listing and Selling agencies.

So, the buyer’s offer includes the total commission and the other seller’s expenses, so the seller walks away with what they wanted, minus the expenses. That is the way things happen now.

Starting July 1^st, there will be changes. If approved by the courts, the offer of compensation due to the buyer’s agency will not be in the MLS.  Buyers will be signing a Broker’s Buyer agreement on which their side of the commission will be stated.  It is not that the buyers will be paying anymore since they have been paying the entire commission as part of their offer. Some buyers may insist that the seller pay for their commission.  That would be done on a one-time basis, showing the commission that the seller can either sign or not.  It cannot be put into an offer sheet!  This is a contract between the buyer and the seller, and the Realtors are not part of that contract.

In the past, Florida was considered a Transaction Brokerage state. In most cases, there is no fiduciary relationship between the listing agent and the sellers nor between the selling agent and the buyers. This will most likely change to an agency state, such as in many northern states where real estate attorneys do much of the paperwork instead of the Realtor doing it. That may become the case in Florida. In preparation for this possibility, many firms, including Broker Associates Realty, have a business relationship with an attorney to work with those who desire it.

We are also opening a separate division of marketing specialists for those who wish to select from a menu of services.

We are prepared for whatever comes our way to ensure that all our customers get the service they need and want. If you have any questions, please visit our website at http://www.brokerassociatesrealty.com.