The real estate industry is evolving, and Gibson Sotheby’s International Realty is at the forefront of these changes. Recent class action settlements have brought significant shifts in how real estate transactions are conducted, particularly regarding compensation for Buyer Agents. While these settlements did not involve our agents, they have reshaped industry practices in two key ways:
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Clear Contracts with Buyers: Realtors must now establish a formal agreement with Buyers before showing properties, detailing the terms of service and fees.
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No MLS Compensation Display: Buyer Agent compensation can no longer be displayed in Multiple Listing Services (MLSs).
In response, we have dedicated extensive hours to training our associates on the new guidelines. Our approach has been to revise our agreements to ensure clarity and transparency, detailing who we represent, our fees, and transaction expectations for both Buyers and Sellers.
In Massachusetts, where two MLSs have yet to comply with these changes, we are advising our Sellers about three important changes to the offer of Buyer Agent compensation in our largest local service, MLSpin:
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Seller-Directed Compensation: Offers of Buyer Agent compensation now come directly from the Seller rather than the Listing Agent and Broker, placing them at the center of commission disputes.
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Negotiable Offers: The compensation offer can be altered or removed during negotiations, which may be confusing for some.
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Arbitration Clause Removal: The absence of the arbitration clause means disputes are more likely to be settled in court.
Given these complexities, we have chosen not to advertise offers of Buyer Agent compensation. However, we encourage Sellers to consider offers that include such compensation and advise Buyers to factor it into their offers. This strategy has been well received, with Sellers often selecting offers that provide Buyer Agent compensation, reflecting the best terms for their needs.
At Gibson Sotheby’s International Realty, we are proud to lead in Massachusetts with the highest average sale price and pledge to provide transparent and honest communication to guide you confidently through this new landscape. Our local advisors and their knowledge are what make us exceptional. Reach out to us anytime—because expertise matters.
— Colleen Barry, CEO
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