NAR Settlement Update and Practice Changes
You may have heard about the new laws regarding broker practices and real estate commissions. There is a lot of misinformation circulating and we would like to help buyers and sellers navigate these new laws so they can make informed decisions. Below is a quick breakdown of the changes.
Offers of compensation will no longer be permitted through the MLS.
A listing broker can agree to share its commission with a buyer’s broker, but only with the seller’s approval.
A buyer and seller may agree (via purchase agreement) that the seller will cover some of the buyer’s closing costs, including buyer’s broker fees.
Broker commissions are not set by law and are fully negotiable.
Realtors working with buyers must enter into a written buyer’s agency agreement prior to showing homes.
The written agreement must state the amount of compensation to be paid to the buyer’s broker.
Practice changes will be implemented on August 17, 2024.
Bay Realty Michigan Commission Policy Examples
Here is an example of how these changes affect the commission structure of our brokerage and how this structure will net you the most money from the sale of your home.
Old MLS System Example:
Listing Agent Commission = 3%
Buyer Agent Commission offered on MLS = 3%
Total commission paid by seller = 6%
New Bay Realty Michigan MLS System Example:
Bay Realty Michigan listing commission is typically 2.5-3.5%.
Buyers Agent Commission is fully negotiable, not set by law, and can be paid by either the seller or the buyer. The buyer's agent commission can no longer be offered on the MLS and may be negotiated within the purchase agreement when an offer is written. When an offer is received, the seller can reject, accept, or counter the buyer's offer. Buyer’s agents will have a contract in place with the buyers prior to showing the home.
Total commission paid by seller = 2.5%-7% Negotiated to net the seller the most money from the sale of their home.
These new laws and policy changes have caused a lot of confusion. We would like to meet with you to further discuss options to net you the most money from the sale of your home. Please contact us to set up an appointment. We look forward to talking with you and helping you reach your real estate goals!
Lyndsey O’Brien and Ryan Sagady
Realtors/Broker/Owners
Lyndsey O’Brien: 248-838-8564
Ryan Sagady: 989-385-1311