If you`re a real estate agent, you`re probably familiar with the listing agreement, the legal document that outlines your relationship with a seller. This agreement spells out the terms of the sale, including the commission percentage, the duration of the listing, and other important details.
Recently, there has been a change in the listing agreement that agents need to be aware of. The change relates to the commission percentage and how it is displayed on real estate websites.
In the past, real estate websites would typically only display the commission percentage offered to the buyer`s agent. This means that if the seller agreed to pay a 6% commission, for example, the website would only show the 3% commission offered to the buyer`s agent, not the 3% commission offered to the listing agent.
This practice has been criticized by some for being misleading, as it could give buyers the impression that the seller is only offering a 3% commission when in fact the total commission is 6%. To address these concerns, some real estate websites have started to display the total commission percentage on their listings.
This change may not seem like a big deal, but it could have important implications for real estate agents. If you`re used to only seeing the commission percentage offered to the buyer`s agent on listings, you`ll need to adjust your expectations and be prepared to explain the commission structure to buyers.
You may also need to have a conversation with your sellers about the change and make sure they understand how their listing will be displayed online. Some sellers may not want the total commission percentage displayed, as they may feel it puts them at a disadvantage in negotiations.
Overall, this change in the listing agreement is a reminder that the real estate industry is constantly evolving, and agents need to adapt to stay ahead of the curve. By staying informed about changes like this, you can continue to provide the best possible service to your clients and stay competitive in a rapidly changing market.