Savvy Way Realty, committed to keeping you informed about pivotal shifts in the real estate sector, opposes protectionist measures that hinder the free market dynamics of home transactions. As a brokerage, Savvy Way Realty is obliged to engage with the Realtor system, to provide homeowners with a compliant-based Flat Fee MLS listing service across its markets (Texas, Georgia, Florida, and California).
Understanding the National Association of Realtors (NAR) is fundamental. NAR serves as a union for real estate licensees, including Agents and Brokers, who join for benefits and to establish industry standards. Adherence to NAR’s Rules of Ethics grants access to the Multiple Listing Service (MLS), a crucial tool syndicated by state-specific branches of NAR and major real estate platforms like Zillow. Compliance with MLS regulations is mandatory, with potential fines for non-compliance.
The recent NAR Settlement suggests changes in commission structures. Contrary to popular belief, NAR has not historically mandated a 6% commission. The NAR President states, “NAR does not set commissions, and commissions were negotiable long before this settlement. They are and will remain entirely negotiable between brokers and their clients. And housing prices are dictated by market forces beyond members’ control.” The requirement typically involved offering a commission to the buyer’s agent, negotiated between the Seller and Listing Agent. However, under new regulations, commission details won’t be displayed on MLS listings, potentially leading to separate negotiations between Listing and Buyer’s Agents. This shift may burden buyers with additional costs if the Listing Agent offers zero or reduced commission, exacerbating already high market expenses.
For Sellers, this change presents an opportunity to reduce payments to the Listing Agent instead of following the traditional commission structure. However, it’s crucial to ensure compliance with MLS rules, which remain unchanged despite the NAR Settlement. The Flat Fee Method of listing offers a significant discount from the Listing Company, allowing Sellers to save on commissions. Instead of paying an agent 3%, Sellers pay a flat fee to the listing company. It’s worth noting that many Flat Fee Companies do not adhere to MLS compliance rules and may not effectively assist in selling the home. Opting for a compliant Flat Fee MLS Company can be advantageous, potentially saving Sellers around 3% compared to traditional 6% commissions when managed by a compliant Flat Fee Company. With a portion of the commission withheld by the Flat Fee company (typically around 0.5%), the majority (2.5%) goes to the Buyer’s Agent. This arrangement may eliminate the need for buyers to cover any commission themselves, thereby incentivizing them to choose your home over others.
Seizing this opportunity requires Sellers to act strategically. By utilizing a compliant Flat Fee MLS Company, Sellers can optimize savings and enhance their home’s appeal to buyers. This proactive approach positions Sellers to benefit from the changing landscape of real estate transactions, even before final court approval of these regulatory adjustments.
Dr. Will Puente
Complaint Flat Fee Broker in Texas, Georgia, Florida, and California
https://www.linkedin.com/in/doctor-will
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Company Name: Savvy Way Realty
Contact Person: Dr. Will Puente
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Phone: 972-674-9914
Country: United States
Website: https://www.savvywayrealty.com/