Skip to main content

MLS Removal of Compensation Offers

Comments

2 comments

  • Dan Brogna

    It's confusing 😕,who gets pd whenever you sell your u

    0
  • Jonathan Minerick

    Hi Dan, the way it works now is that buyers must sign a compensation agreement with their agent before viewing any homes. For example, the compensation agreement often states that the buyer will pay their agent a commission (e.g. 3%) for helping them purchase a home. The compensation agreement also states that the buyer agent will request in any offer that the seller pay the commission instead of the buyer.

    When an offer is then submitted to a seller, it includes the request the seller pay a commission to the buyer's agent (e.g. 3%). The seller can decide if they want to accept, counter, or decline the offer. If the seller agrees to pay part of the commission (e.g. 2%) it is then up to the buyer to decide if they want to pay the difference (e.g. 1%) or not. If the buyer decides to pay the difference, then there is a binding contract, otherwise there is no contract.

    I'll add this to the article. Please let me know if you have any questions. 

    0

Please sign in to leave a comment.