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[Homeowners Corner]
The recent National Association of Realtors (NAR) settlement involving $418 million has sent shockwaves through the real estate industry. While the focus is on potential commission reductions, a crucial conversation needs to happen on the seller's side of the equation. Here at My Home, My Sale, we believe in transparency and informed decision-making. So, let's delve into the issue of commissions and seller responsibility.
Commissions: Negotiable, Not Fixed
It's important to understand that real estate commissions have always been negotiable. Regardless of the MLS or standard practices, listing agreements typically have a section outlining compensation structure, usually as a percentage of the sale price or flat fee. Also there is typically a section specifically outlining Buyer's Agent Compensation. This is where the negotiation power lies.
The Seller's Role: Beyond Accepting the "Standard"
While the NAR settlement highlights potential collusion, some blame falls on sellers who haven't exercised their right to negotiate.
Here's why:
Passive Acceptance: Many sellers simply accept the "standard" commission rate (around 5-6%) without question.
Lack of Education: Sellers might not be aware of their negotiation leverage or the potential for alternative commission structures.
Fear of Upsetting the Agent: Some sellers hesitate to negotiate for fear of jeopardizing their relationship with their realtor.
Empowering Sellers: Knowledge is Key
Sites like My Home, My Sale exist to empower sellers with the knowledge and tools they need to navigate the real estate journey confidently.
Here's how:
Understanding Compensation: We educate sellers on commission structures, including flat fees, tiered commissions, and discount brokers.
Unbiased Advice: We offer a neutral perspective, free from the potential bias of a realtor aiming for a higher commission.
Moving Forward: Shared Responsibility
The NAR settlement is a turning point, potentially leading to lower commissions. However, sellers must also take responsibility for their financial well-being. By educating themselves and actively participating in the negotiation process, sellers can ensure they receive the best possible representation at a fair price.
Listing Agreement Examples:
We found listing agreements with a simple google search from Arizona, California, New Mexico, and Wisconsin just to find a few in different states. (see downloads below) these listing agreements clearly state compensation is negotiable.
Don't settle for the "standard" rate. Review these agreements and others in your state to understand your rights and negotiation leverage.
Arizona
California
New Mexico
Wisconsin
My Home, My Sale
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