Website Integration Might Alleviate Compensation Pain Points
The proposed NAR Settlement has raised questions about how it will affect real estate professionals. Compensation remains a hot topic of conversation as everyone seems to find the silver lining of what they can and can't do.
Key Takeaways:
There might be a trend of brokerages or listing agents displaying compensation amounts for their listings through website integration.
Adding compensation on websites may stimulate clarity, understanding, and negotiation around commissions.
Realtors® should be wary of replicating actions that have already been ruled against.
Integrating compensation on brokerage or listing agents' websites may be a game changer in helping buyers' agents understand compensation structure. Website functionality may allow amounts to be displayed quickly, giving buyers' agents a clear understanding of the property's details. This can be highly beneficial to buyers' agents when figuring out the compensation details of a specific property. However, just because a compensation amount is displayed does not mean it's set in stone. Negotiation around commission is still possible. Keep in mind that a Realtor® or Realtor® MLS Participant may display offers of compensation to buyer brokers or other buyer representatives but only on listings from their own brokerage. For example, if the brokerage and the listing agent want to show the compensation amount for 123 Main St., then the broker and the listing agent need to be on the listing agreement. If the broker is not on the listing agreement, then they are prohibited from displaying any compensation for that listing on the broker's website.
Charlie Lee, Senior Counsel and Director of Legal Affairs at the National Association of Realtors®, recently mentioned at a Broward, Palm Beaches & St. Lucie Realtors® Town Hall event that Realtors® should be cautious about duplicating what has been ruled against. The proposed settlement from NAR, which is still awaiting approval, permits brokerages and listing agents to offer compensation off the MLS, but again, they should exercise caution when doing so. If agents or brokerages are unsure about what they should or should not be doing when it comes to displaying compensation on their websites, they should seek advice from their attorneys.
By BeachesMLS Staff
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