08/17/2024
CHANGES TAKE EFFECT REGARDING COLORADO REAL ESTATE COMPENSATION
AUGUST 17, 2024.
The president and news media cannot get the information correct.
Commission has always been negotiable with Sellers!
ALWAYS!
BUYER agency has always been available as well.
The compensation change will not make it easy for a buyer to purchase a home if they only have funds for the down payment and closing costs for their loan.
The seller will need to pay the compensation or the listing company.
The change now means a buyer may be obligated to pay the Realtors compensation instead of the listing company.
If I listed a house for X with the Seller, my company would choose how much to compensate the buyer's agent or transaction broker.
My company would pay the buyer's real estate company a certain amount of what was negotiated with a seller and the amount to be paid was available in the mls. NO longer.
EXAMPLE:
X% compensation to MRPM that was negotiated with the
seller at the time of listing to be paid at closing.
A X% of the compensation agreed on would be paid at closing to the company working with the buyer.
Paid by MRPM, not the seller.
The seller never paid compensation to the buyer's agent company.
The lawsuit came out of Missouri from a few sellers.
Compensation must not have been explained well to them.
This change will not change home prices as the media has mentioned.
This could be a burden on many buyers trying to come up with more funds to buy a home.
It will burden VA buyers unless the VA changesitsr policy or the seller pays the compensation.
Buyers using a VA loan are not allowed to pay certain closing fees or compensation to a Realtor.
Who wants to work for free?
Sellers need to understand what a buyer is able to pay to a Realtor.
I've been a Realtor for 29 years and first time buyers struggle to purchase a home. They save for a down payment and closing costs for the loan and struggle to come up with that.
The (MLS) Multiple Listing System was set up to offer compensation to the real estate company that has a ready, willing and able buyer to close on the home.
A buyers Realtor knew what they would be paid for bringing a ready willing and able buyer when it was listed in the mls.
No more!
This ruling will make our jobs a bit more difficult but Realtors will use their skills to negotiate great offers.
Compensation is no longer offered in the MLS.
I've always worked as a buyers agent or sellers agent and explained how I am paid through my company or the listing company.
Being a Realtor is a lot of work.
People may think we make too much money.
That is not the case.
I've spent hours with a buyer only to find out they purchased a home through someone else.
No compensation to me.
I've listed a home that had numerous showings and paid thousands of dollars out of my pocket to market it.
The listing expired and the sellers listed with another Realtor at a lower price and it sold within a short period of time.
No compensation to me.
I've also listed a home that had multiple offers the next day.
It depends on the market.
Sellers then question if they listed it too low.
No they didn't, it was priced well.
I make a good living but I've worked hard to earn it.
My clients have appreciated what I've done for them over the years and I'm fair and I care about them. I've earned some great friends along the way as well. I appreciate all my clients.
I received feedback from a seller that was a shock to me.
I didn't show their home since I didn't have a buyer.
They thought I was too busy working with other clients.
Why wouldn't I show their home if I had a buyer?
I held 2 open houses and it closed within 2 months.
I may not have a buyer to purchase your home but I market it to sell.
I was shocked by the feedback, I thought they were satisfied. I negotiated a good price so they could move out of state in a timely manner.
As a listing agent "I may never show your home". I explain that to every seller.
I market my listings on numerous websites and directly through the MLS to 800+ Realtors in Mesa County as well as other areas. Another Realtor is working for a buyer that may want your home.
I have sold 2 of my listings to a buyer in 29 years. Buyers are typically working with a Realtor and want to be represented.
Make sure you are represented.
Is your a Buyers Agent or a Transaction Broker?
Do you know the difference?
With the new ruling Buyers must sign the
EXCLUSIVE RIGHT-TO-BUY LISTING CONTRACT
prior to viewing a home.
If you have questions please call me if you are selling or buying or just want to ask questions. 970-270-3640
[email protected]
