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Selling My Broomfield House – Do I Have to Pay Commission

Have you seen the news and are wondering “selling my Broomfield Home – Do I have to pay commissions?”

Some big real estate news broke while I was out of town. In one way it was annoying because I ended up thinking about it a lot while on vacation. In another way it was good because it gave me time to process and listen and read then react. So, bear with me on this long post!

Here is what I am going to say straight up, the media has made this so much worse. They are making up all kinds of sky is falling stories that a set commission we apparently all get paid is gone (That states amount was never a thing for me, commissions have always been negotiable). That realtors are only in it for the money and now that is going away (Not all of us are like this and not all of us are going away). They are saying this is the end of realtors. They are saying home prices will drop. They are saying a lot of crap.

I am going to address all this here in this post. Remember these are just my thoughts, things could change as could my thoughts on things. I am not a lawyer nor do I make the rules for NAR. Also, none of this has been officially approved yet, although it seems likely it will be and that the mid July date for changes will likely stick.

WHAT ARE THE CHANGES?

The sky is not falling. Really, the changes are quite minimal if you truly look at them.

πŸ’΅Commissions – Real estate commissions are not going away. I know the news has made many sellers now think they don’t have to pay a buyers agent. Honestly, you could already pay a buyers agent just 1c if you wanted too or zero if you didn’t want your house listed on the mls (Hello off market deals and For Sale By Owners). Those listing contracts you sign say as much. Why you wouldn’t want to as a seller is because you then ruled out A LOT OF BUYERS.

This got you much less for your home or you end up not selling it at all. This will be the same.

πŸŽ‰Savvy sellers will still realize that the best chance of selling their home is by offering a buyer agent commission. Why? A realtor will still need to get paid, if the seller is not willing to offer a commission back to the buyer’s agent, the buyer will have to pay this. This could lead to a large pool of buyers not being able to afford your home!

Sellers, the buyer really pays that commission anyway. I mean, they are paying you for the house and then you are taking part of that payment and giving it to your agent to pay the buyer’s agent. They are the ones bringing all of the money out of pocket for your home.

‼️The other thing about commissions is that they have ALWAYS been negotiable.

Those of you that work with me know that I offer certain discounts if you have worked with me before or if you both buy and sell etc. I never had a set commission breakdown. In fact, I can count the times on one hand out of hundreds of transactions where I was paid less than assumed by these articles. The number the news is spouting has never been the be all and end all. If you looked at records, you would see many of us realtors have been paid varying amounts for years.

The new ruling they are offering up (IT HAS NOT BEEN OFFICIALLY APPROVED YET) is that the buyers commission can no longer be shown on the MLS. IT CAN BE SHOWN IN A MILLION OTHER PLACES. I intend on showing it on my website (I have been working for a year on a super nice website where my listings show up with everything a buyer or buyer’s agent needs). I could also show it on social media, Real Estate Signs, Postcards, Leave a message on my voicemail with it. Smart agents will find ways.

How About Buyers – How Does it Affect Them?

πŸ“Buyer Representation Forms – The other part of this new ruling is that buyer representation forms will need to be signed. For those of you that have worked with me, every one of you have signed these. I have been using them since the beginning. This is standard in Colorado.

The change is you will now have to sign this before a single home is showed. This is actually good news for sellers. This means now ONLY serious buyers will be looking at your home. Buyers that are willing to sign a agreement on how their agent will get paid will be the ones looking at your home. Buyers you will now know exactly how the person working for you gets paid and how they are representing you.

πŸ‘›Buyers you are also going to have to get used to the thought that you may need to pay your realtor if you love a home, and a seller is not willing to pay a commission. If you work with me, you will know about the compensation whether the seller pays, or you will have to pay it before we enter a home. You will then make the choice.

Your realtor deserves to get paid though! If you have a good realtor, they are working hard in ways you don’t even see. There are hundreds of things a GOOD realtor does to keep your deal flowing, preempt issues so you never need to know about them, fight for you with lenders, sellers, agents for your best interest and keep you from having to face huge legal issues because something goes wrong.

Selling My Broomfield House – What would be the positive of these changes?

Here is what I think the good things will be! Whether selling my Broomfield house or any other house.

Serious agents that have been doing a good job for years will continue to do so. They will be here to continue to guide you through the process and they will be worth their weight in gold.

Fly by the night agents will likely get out of the business. Real Estate will become a more professional environment.

Over the past few years when it was generally easy to do real estate, many people jumped in for the easy ride. Working with these agents and seeing what happens has been scary to me.

πŸŽ‰πŸŽ‰πŸŽ‰Sellers, if you are willing to continue to pay a buyer’s agent you will have a huge advantage in the market. Those sellers that don’t may leave thousands on the table or not be able to sell their home.

Commissions are still negotiable as they always have been, they just may not be able to be listed on the MLS anymore. (We won’t know how this pans out for a while).

😊Buyers you are going to get more qualified agents that will have tough conversations with you about money. The ones that have caused buyers trouble will likely leave the business, giving you better representation!

🏑Home prices will remain pretty stable no matter what. Do you think a seller is going to price their home lower now because of this? Also, our inventory is still very tight so unless that shakes out majorly, I don’t see home prices dropping significantly due to these small changes.

If you have any questions about this and what you have been seeing in the news, let’s chat about it! Those of you that really know me know I am always an open book and will be honest! Those of you that don’t know me that well yet, here is your chance to get to know me 😊 I will continue to update and share my thoughts if things change/progress.

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