What You Need to Know

Real Estate Commission Lawsuit

Breaking News in the Real Estate World

Let's talk about the breaking news in the real estate world regarding commissions and how it affects you!

But don't worry, it is not that scary... in WA, we have already been very transparent on who pays for their representations when making a HUGE purchase with legally binding documents.

 

Need to be updated on the current lawsuit? Here's the skinny -

Defendants: National Association of Realtors (NAR), Keller Williams, Home Services of America (there were two other defendants - Anywhere Real Estate & ReMax but they settled prior to going to trial)

Plaintiffs: Sitzer/Burnet et all (Home sellers) - State Missouri

What: Focused on whether a conspiracy was taking place to keep commission fees for buyer agents inflated limited to the state of Missouri for the trial.

Result: Currently ruled in favor of the Plaintiffs to the tune of $1.78 Billion, however, this case will go on for a very long time.

 

How does this impact you?

In Washington, we have already been using updated contracts and language that inform sellers where fees go and that they are 100% negotiable. In January 2024, they will become even more transparent for the buyers with the requirement that you must have a buyers agency agreement in order to work with a real estate agent.

Buyers Agreements & Transparency that's what the conversation is all about right now in the world of Realtors. Here's the low down of what will change come Jan 1st-

As of Jan 1, it will be required to sign a Buyers Agency Agreement with your agent prior to you receiving any real estate services (i.e. seeing homes).

We love this because it elevates the relationship. YOU are a known priority and you share in mutual expectations. It matters who you hire and they should work for your business, your real estate agent IS a knowledge broker. Hire someone who knows the areas you are shopping in to help you net the most money OR save money if you are a buyer. You are also paying for their connections and insight into the community market statistics.

This makes the real estate agent hiring decision more intentional and we love that.

💰 The cost of buyer agent is ultimately the buyer's responsibility, but it hasn't been clear and it is typically wrapped up in the cost of the home, and compensation is most often paid by the seller offering a commission. This new agreement will show you how it all breaks down.

💴 The buyer's agency agreement will now clearly line out what YOU are willing to pay your agent for their services and expertise - not all agents are created equal and the power of setting your price is more clear.

🏡 Listing agreements are also very clear now. It accounts for different scenarios that come up during transactions and allows more clarity upfront. It also breaks out the buyer agent compensation and listing agent compensation - you do not have to offer the same compensation for each agent. This has always been the case but sometimes not clearly understood with the former forms. Just remember, compensation is always negotiable!

✨ In WA state, agent compensation has already been published on listings for what a buyer broker is being offered by the seller since 2019. We are ahead of the changes here - cause we are awesome 🤩

🙌🏻 All of this is very good for the industry and good for you as consumers. 

Have questions? Give us a call at 347-989-5267. We are professionals and leaders in the industry, and would love to help guide you in successfully achieving your real estate goals amid these drastic changes in the marketplace!