Luciano Martinez here with RE/MAX Platinum, your RGV'S STRONGEST REALTOR®.

I'm here to discuss some important changes in the real estate industry, specifically regarding commissions and how they are negotiated and disclosed. There's a lot of information out there, and I want to clarify some key points to better serve you.

Changes in Commission Disclosure

One of the main changes you may have heard about is the way commissions are disclosed on the MLS. The offer of compensation will no longer be allowed on the MLS. This means if you, as a seller, want to offer a specific commission to the buyer's agent, you can no longer include this offer on the MLS. Instead, the buyer's agent will need to negotiate directly with the listing agent.

Listing Agreement and Broker Compensation

The listing agreement now highlights that broker compensation is fully negotiable. Paragraph five of the residential  real estate listing agreement states:

Broker compensation or the sharing of compensation between brokers is not set by law, nor fixed, controlled, recommended, or suggested by the Association of REALTORS®, MLS, or any listing service. Broker compensation is fully negotiable. Brokers independently determine their fees.

This means that you, as a seller, can negotiate the commission with your listing agent. It is important to find a middle ground where both parties are satisfied with the terms.

Negotiation of Commissions

Everything in real estate is negotiable. Whether you are a seller negotiating the commission with your listing agent or a buyer negotiating with your agent, it’s crucial to understand that these terms are not set in stone.

Impact on Buyers

Starting August 17th, REALTORS® will not be allowed to show a home without a buyer's representation agreement. There are two forms for this agreement: the long form and the short form. The short form is a one-pager, ideal for buyers who are just starting their home search and want to see a few homes. The long form is more comprehensive and is suitable for buyers ready for full services from their agent.

Broker Compensation for Buyers

For buyers, broker compensation is also negotiable. If the listing agent offers a lower commission than what you and your buyer's agent agreed upon, you may need to bridge the gap. It's essential to discuss and agree on these terms with your agent upfront.

Conclusion

These changes emphasize the importance of negotiation in real estate transactions. Whether you are buying or selling,  understanding that commission terms are fully negotiable can help you make informed decisions and find a fair agreement with your agent.

If you have any questions about these changes or need assistance with your real estate needs, feel free to reach out to me. My contact information is below, and I’m always here to help.

Luciano Martinez
RE/MAX Platinum
Phone: 956-476-2925
Website: www.martinezrgvhomes.com
✨ Experience the Martinez Difference! ✨