Brokerages are at the crossroads – they can either encourage sales with all buyer-agents, or go the same way as C.A.R. and make it harder on them (which promotes single agency) and add blustery headlines. I think brokerages should stand up for all buyer-agents; not only because buyers deserve representation but it also gives us more qualified buyers for our listings!
eXp Realty has in recent days taken the notable step of updating its much-discussed listing agreement with language stating the company “does not share commissions with a buyer’s broker” — language that has prompted a flurry of debate online.
The brokerage published its new listing agreement internally on Friday. In a conversation on Wednesday with Holly Mabery — senior vice president of brokerage operations at eXp — she said that the document was updated because “we wanted to make sure our agents are best protected.” She added that “we’re not going to do broker-to-broker compensation.”
“We’re not going to do pre-determined compensation,” she continued, adding that instead, eXp listing agents will provide their clients with “a menu of options.”
The document reflects this approach, stating on the first page that the “broker (eXp) does not share commissions with a buyer’s broker.” However, that language does not mean buyers’ brokers can’t collect compensation from sellers. The document goes on to state that buyers may request concessions from sellers, and those concessions could be used to pay for brokers among other things. Homesellers using eXp agents are free to offer compensation as they see fit.
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Everyone will be able to see the seller-concession amounts on Compass listings:
Compass Technology Platform Enhancements:
On August 15, we will be rolling out enhancements to the Compass technology platform that will empower Compass listing agents to effectively communicate offers of Buyer’s Agent compensation for their listings without relying on data from the MLS.
- Compass Listing Agents can open their MLS listing in Listing Editor to add Buyer’s Agent compensation offers for display on Compass.
- Compass-entered Buyer’s Agent compensation offers will be displayed on agent and consumer Compass listing pages.
- Compass-entered Buyer’s Agent compensation offers will be displayed in agent search results.
Publicizing the seller-concessions amount will make it easier for buyers and their agents to know what to expect, and it feels more like a promise. Those who say they don’t do broker-to-broker compensation or ‘just negotiate it in the offer’ are giving the middle finger to buyer-agents because without some sort of commitment up front, any possible seller concessions during negotiations will be little or none (it’s too late/too easy for seller to say no).
Compass is doing it – can’t every brokerage who believes in buyer-agents at least publicize the seller-concessions amount on their company website? If the seller or agent doesn’t want to disclose, fine – they don’t have to. But buyers and their agents will be flocking to those that do!
Save the buyer-agents!
