What do I do now, in light of the current industry litigation?
• Explain to buyer and seller prospects what’s going on in the marketplace.
• Tell them about the VALUE you bring to the transaction.
• In the past, you didn’t have to explain the benefits you bring to the buyer with or without a buyer broker contract – for payment, you could rely on the MLS offer of compensation – regardless of your skills and experience.
• There’s a misalignment of interest: the higher the transaction price, the more commission the buyer agent is paid.
• There may be ways to transact around “no offers of compensation.”
• Lenders want to make loans, so we can anticipate that the Housing Finance Industry will consider policy changes.
• Avoid Steering – if seller does not offer enough buy side commission, other agents may not show the property.
• Even in a Seller’s market, the typical buyer side commissions did not come down.
• Know what to say and what not to say. There may be ways to transact around some of the pain points.