NEW MLS Rules change how we buy & sell real estate!

The way we buy and sell real estate is changing in a major way. You may have heard that sellers no longer have to pay buyer’s agent fees.

In the past, sellers paid a commission to the listing agent, which was split with the buyer’s agent through the MLS. However, the new MLS rules prohibit commission sharing and impose a $2500 fine for non-compliance.

This change places more financial responsibility on buyers but also gives them greater control over how their agent is compensated.

With buyers now responsible for agent fees along with other closing costs—such as escrow, title, inspections, loan fees, and moving expenses—properties that offer concessions for closing cost credits will be more attractive to buyers who can use these credits to cover their agent fees and other expenses.

The key difference between a commission and a concession is that a commission benefits the agent, whereas a concession benefits the buyer. By shifting the incentive from the agent to the buyer, concessions are intended to empower buyers to negotiate their agent’s compensation.

Although the MLS prohibits any mention of buyer agent compensation, this can be advertised through social media, flyers, and websites with written seller approval.

Under the new rules, buyer representation agreements are required before touring properties. Agreements must clearly specify fees, services, and duration. Agent fees can be negotiated as percentages, flat fees, or even hourly rates but cannot be open-ended or exceed the agreed amount. The duration of these agreements can vary, ranging from per property, per day to 90 days with options to extend. Buyers are still free to attend open houses without a formal agreement.

As the real estate market evolves, adapting to changes will be crucial for a successful transaction. If you’re planning to buy or sell a home, let me show you how my unique services can provide exceptional value and a winning strategy tailored just for you.

I’m a realtor, professional organizer, and Seniors Real Estate Specialist based in North County San Diego. I streamline the entire real estate home sale process for a seamless transition.