Selling your home can be complex if you are unfamiliar with some of the basic terminology and customs. Having a general understanding of standard real estate practices can make a difference in how smoothly your sale will go. Here are some basic concepts you should know and understand.
Selling Agent versus Buyer's Agent versus Listing Agent
Selling Agent:
A selling agent is the real estate agent who sells the property. They are also called buyer's agents. So, the terms selling agent and buyer agent are the same.
Buyer's Agent:
A buyer's agent is the real estate agent working for the buyer, NOT the seller. They are also called buyer's agents. So, the terms selling agent and buyer agent are the same. For clarity, throughout our website, we use the term buyer's agent instead of selling agent.
Listing Agent:
The listing agent is the real estate agent who lists your home for sale in the MLS. Your listing agent will be our principal Broker, Stephanie Smith, and Select Premium Properties, Inc. will be your Listing Agency, which is the information that will appear in your MLS listing.
Buyer Agent Commission No Longer Appearing in the MLS
In a significant development in the real estate industry, the new nationwide regulations have brought about a change that provides homeowners with more control and freedom in determining the commission they want to offer to a buyer's agent. The central aspect of this change is the prohibition of posting buyer agent's commissions in the Multiple Listing Service (MLS).
Previously, buyer agent commissions were openly displayed in the MLS, thereby limiting sellers' flexibility in deciding the commission they wished to offer. This practice often led to external pressures and constraints on sellers, who felt compelled to adhere to commission rates. However, with the implementation of these new regulations, homeowners now have the freedom to make independent decisions regarding the commission they are willing to offer to agents representing potential buyers.
The freedom from stated buyer's agency commission in the MLS translates into a beneficial opportunity for homeowners to take charge of the selling process. Sellers can now consider various factors such as market conditions, property value, and their individual preferences when determining the commission for buyer's agents. This newfound flexibility allows them to align the commission with their specific needs and priorities, enabling a more personalized and tailored approach to the selling process.
Moreover, the absence of a stated buyer's agency commission in the MLS reduces the influence of external pressures on sellers. Previously, the public visibility of buyer agent's commissions could sometimes create expectations and norms that sellers felt obliged to follow. However, by eliminating this practice, the regulations empower sellers to negotiate commissions based on their unique circumstances without feeling constrained.
Additionally, the change in regulations fosters an environment of transparency and fair negotiation. With the freedom to determine buyer's agency commission outside of the MLS, sellers and their agents can engage in open and honest discussions with buyer's agents, leading to mutually beneficial agreements. This shift encourages a more equitable and balanced approach to setting commissions, where all parties involved can freely express their needs and expectations.
For buyers, this change also holds potential benefits. With sellers having the flexibility to determine the buyer's agency commission independently, buyers may witness a wider range of commission offerings, which could potentially impact their decisions and negotiations. Ultimately, this shift in the regulations has the potential to enhance the overall dynamics of real estate transactions, promoting greater fairness and empowerment for all parties involved.
The new nationwide regulations prohibiting the display of buyer agent's commissions in the MLS represent a positive and empowering change for homeowners. It enables them to exercise greater control, make informed decisions, and engage in fair negotiations, thereby transforming the selling process into a more personalized and transparent experience for all stakeholders.
Overall, this shift signifies a significant step towards empowering sellers with the freedom to navigate the real estate market on their own terms, shaping a more equitable and balanced environment for real estate transactions.
Listing Agreements
Exclusive Right to Sell vs. Exclusive Agency
Regarding listing agreements themselves, there are two main types of listing agreements that you will run into when deciding to list your home for sale with any Real Estate agency. These are the Exclusive Right to Sell Listing Agreement and the Exclusive Agency Listing Agreement.
Exclusive Right to Sell Agreement:
This agreement is commonly found with traditional, full-service real estate agencies. The agreement gives the listing agency the right to be the "exclusive" agency for the marketing and listing of your property. It also gives them the right to collect a commission, even if the owner finds their own buyer. This means you will pay a listing agency commission no matter who sells your home.
Exclusive Agency Agreement:
Under this agreement, the seller still employs one agent (this is what the term "exclusive" means) to list their home. However, the owner reserves the right to sell the property on their own without paying a listing commission.
Select Premium Properties, Inc. uses an Exclusive Agency Listing Agreement, so you maintain the right to sell your home yourself and pay no listing commission to anyone. List your home with Select Premium Properties, Inc. through our website, Express MLS Listings.com, and enjoy the savings!
