Earlier this month, the National Association of Realtors agreed to a historic deal that could change the entire industry. It eliminates the standard 6% sales commission.
We asked our friends at KMS Team at Compass for their thoughts. They say:
Since the March 15 announcement of the proposed settlement of lawsuits
against the National Association of Realtors, assessments of its impact on
commission rates and even home prices have been making headlines.
Right now, we know three things:
First, beyond the 1.5 million Realtors in the United States, millions of
people are interested in or passionate about real estate, fueling
interpretations and predictions about the impact of this proposal. It is all
speculation until the Department of Justice opines on the settlement offer.
Second, real estate is local. Buying and selling of homes is conducted
differently throughout the United States.
In Connecticut, for example, Buyer Brokerage Contracts were first introduced in 1990, which was among the earliest in the nation.
Agreements, now titled Exclusive Right to Represent Buyer, are required to provide clarity of services a buyer can expect from us and transparency regarding our fees.
Third, commission rates are and always have been negotiable in Fairfield
County. While discount brokerage models have existed for some time, our
community has embraced professional, full-service representation.
This 5-bedroom, 5 1/2-bathroom house at 50 Compo Mill Cove is on the market for $13,500,000. It is 3,915 square feet, on 0.39 acre.
As part of the proposed litigation settlement, NAR plans to modify certain
practices. For example, sellers may, but will not be required to, offer a
commission to the buyer’s representative. Any such offer will not be
included in its Multiple Listing Services.
We believe this may change how agents are compensated for representing home buyers. But the underlying reasons why they are compensated remain.
Like many real estate agents in town, the KMS Team at Compass is and has always been client-focused.
We all see ourselves as partners in achieving clients’ real estate goals. We do everything in our power to find buyers a home — a place where they feel comfortable physically, emotionally, and financially.
To achieve this we ask about, listen to, empathize with and anticipate our
clients’ needs and wants.
We search, evaluate, compare and present properties, and explain their towns/neighborhoods. We offer suggestions, propose alternatives, and recommend competent, trustworthy professionals for all
house-adjacent needs.
We handle paperwork, answer questions, and attend to details. We are on call nearly 24/7/365 for our clients.
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