04/07/2024
What's REAL about the recent real estate headlines? April 2024
As usual, the media has done a masterful job of demonizing the self employed and independent contractors, creating click bait and follows a pattern of mainstream media misquoting and misrepresenting information to the general public.
It is common knowledge...follow the money. Who are the corporate interests that could benefit from this upheaval? Let's watch and witness as this unfolds.
As you may have heard there is a proposed settlement by the National Association of Realtors NAR. While the settlement still requires final approval, there have been plenty of headlines in the media causing confusion. To clarify some of the misinformation about the settlement, I want to clarify a few facts.
1) Sellers retain, as they always have, the discretion to offer compensation to buyer's brokers. The proposed settlement does not prohibit their ability to do so. It does propose that compensation will not be a condition required by MLS and will not be posted and advertised in the MLS. Each buyer can request the seller pay their agent fee and that request will be evaluated at the offer level, seller to buyer, buyer to seller.
2) Commissions have always been negotiated and are not set by law. (tip: the amount reasonable for the market in your area) Reduced fee alternatives have been around and will continue to be available for consumers seeking these options.
3) The media has distorted Realtors as if we are part of the Columbian Drug Cartel. Yes, Buyers agents will always be paid, the focus is on HOW we will be paid. (Buyer, Seller, or combination)
4) The proposed settlement would require that every buyer represented by an NAR-affiliated agent sign a Buyer Representative Agreement outlining the relationship between the buyer and broker, and fee, BEFORE touring a property, something that is already required in many states for over a decade.
I have been using these agreements for 10 years, as I prefer transparency, to avoid misunderstandings, and create a low stress environment while we give birth to your new home. Frankly, a written agreement has always considered best practice and part of the required Realtor NAR code of ethics.
5) All perspective buyers deserve representation. It levels the playing field. Think it through. How do consumers benefit without representation? What do you think Seller Agents do with your information and ability to pay, when they are contractually obligated to the SELLER to get the most money and best terms from YOU? Research shows that buyers pay 7% more without Buyer representation.
6) My experience is that Realty Executives Boston West agents offer full service, and provide tremendous value to our clients. As a result we will continue to encourage a transparent commission conversation that reflects the time, effort, expertise and support we invest in each relationship and transaction.
7) My brokerage, Realty Executives Boston West is fully prepared to adopt the changes laid out as part of the settlement. We see these updates as positive both for our clients and brokerage community, as they provide additional transparency and clarity and will encourage the most professional agents to thrive.
My hope is that any changes will provide an opportunity across the country and elevate all REALTORS to the standards that we at Realty Executives Boston West, hold ourselves to.
Real Estate is a relationship based business, and the trust I've earned with my clients is something I greatly value. Together, we will navigate any changes to rules and regulations in our industry while I continue to provide my clients with the same exceptional service that I always have.
Susan Mogren
Realtor
affiliated with Realty Executives Boston West
508-269-7677
www.DoorbellRealty.com
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