You may be aware of a new rule change from the Northwest Multiple Listing Service regarding “Offering” a Buyer’s Agent Compensation (We no longer use the term Commission). While it’s a confusing topic for both consumers and real estate agents alike, The Cascade Team has put together some Questions and Answers on the topic.
What is a “Fair” amount to pay for real estate compensation?
“Fair” is whatever you and the agent decide is fair, and just as you are not under any obligation to pay more than you want, the agent is not under any obligation to do business with you if they are not going to earn what they expect.
The Cascade Team will charge a total of 2% compensation to sell your home if the buyer comes unrepresented.
This includes full marketing, photography, negotiation and everything in this presentation. For an unrepresented buyer we will also coordinate with the lender, both sides of escrow, attend any inspections, clear full title and handle all details on both sides of the transaction all the way to closing.
You can offer whatever compensation you feel is “Fair” for the buyer’s broker.
That can be a % of selling price, it can be $0.0 or a flat fee such as $500, $5,000, $10,000 or even $20,000.
If the Buyer’s agent doesn’t think that is a fair amount, they have every right to ask for more (With their buyer’s signed permission). You can then agree to that amount or counter with a different or the same number.
If the buyer’s agent asks for more and the offer is less than asking price on your home, you can even counter back with LESS than you originally offered.
Buyer Broker compensation is now fully negotiable just like it was always meant to be!
Why was this rule change put into effect?
Do I have to offer a Buyer’s Agent compensation?
Who pays the Buyer’s Agent compensation?
Is compensation negotiable?
What happens if I don’t offer a SOC (Selling Office Compensation)?
Can I “Test” the waters with no SOC and then change my mind a few weeks later?
What happens when a Buyer’s Agent has a Buyers' Agency Agreement?
Can the Buyer’s agent “Ask” for higher compensation?
If the buyer’s agent asks for more but the offer is lower than asking, can I offer a lower compensation?
Many Buyer’s Agents offer “Rebates” to their clients. How does this rule change affect that?
Can a Buyer’s Agent reduce their compensation to make the offer more favorable?