Real estate commission changes clarified

Changes in how real estate agents receive commissions, caused by a national legal settlement agreed to by the National Association of Realtors, are now in effect.

A press release sent out this week by the Missouri Realtors seeks to clarify the changes for those seeking to buy or sell a house.

Derek Schriewer, president of Missouri Realtors, says the settlement has led to several changes that benefit consumers, and “we wanted to clearly lay them out for current and prospective homebuyers.”

According to Schriewer, these are the things you need to know:

AS HOMEBUYERS

• You will need to sign a written agreement with your agent before touring a home. This is already part of Missouri’s real estate license law, and the type of agreement will depend on the kind of representation you’re seeking.
• Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent. The agreement should ensure you understand exactly what services will be provided, as well as the cost of these services. This, too, is already required under Missouri’s real estate license law.
• Written agreements apply to both in-person and live virtual home tours. You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services. Again, another element that’s part of Missouri’s current real estate regulations.
• You can still request, negotiate, and accept concessions from the seller, such as offers to pay your closing costs, certain repairs, or your broker’s compensation. If you’re using a mortgage, check with your lender to be sure any concessions agreed to are allowed based on your loan type. 

AS HOME SELLERS

• You continue to have the choice of offering compensation to buyer brokers. You may consider doing this as one of the tactics for marketing your home; however, your agent cannot include such offers on a Multiple Listing Service (MLS). MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale. This data is also often syndicated to public real estate and brokerage websites for consumers to view.
• You can also negotiate requests for compensation to a buyer’s broker if a homebuyer includes that in their purchase offer, similar to other requests they may make to cover closing costs, certain repairs, or other concessions.

PRACTICES NOT CHANGING

• Agents who are Realtors are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.
• Compensation for your agent remains fully negotiable, and if your agent is a Realtor, they also abide by the Realtor Code of Ethics to have clear and transparent discussions with you about compensation.
• You have choices. Work with your agent to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.