Selling
09/18/24 | Liz and Ellie Local
You may have heard or read about a recent settlement between the National Association of Realtors (NAR) and the Department of Justice that resulted in several significant changes to how real estate commissions are handled. We’d like to address how we are responding to the settlement, and how changes may affect you.
For a comprehensive look at the specific changes, we recommend you read this summary.
As you consider selling what is most likely your largest asset, it is essential to understand the role of your real estate agent and all associated fees. Specifically, we want to be clear and transparent about:
Please read on to learn more.
An Overview of Compensation
The first thing you should know is that you have choices regarding compensation, which is always negotiable—you can choose the levels of service and compensation you desire and select a listing broker accordingly. Before you sign a contract with us, we will discuss the services we provide, as well as our fees. We will also discuss how much you would like to offer to compensate a buyer broker.
The second thing you should know is that there are no standard commissions. The free market organically establishes fees within local real estate markets based on service, competition, and what the market can bear.
The third important concept to understand is that our market operates with a Multiple Listing Service (MLS), which consolidates listings across brokerages rather than forcing buyers to go from agency to agency to search for homes—a time-consuming and impersonal process. Seller and buyer brokers cooperate freely, sharing information within a highly structured platform of complete, transparent, and accessible data. Sellers may also make explicit any offers of compensation to buyer brokers.
Seller Agent Compensation
Our fee is 2.5% of the net sale price of your home. Our full services are outlined elsewhere, but generally we provide essential guidance as you navigate the legal, financial, and logistical aspects of your sale. We are paid only if the home sells, and our fee comes from the proceeds of the sale.
Buyer Agent Compensation
You have the option of also offering compensation to the broker who supplies a buyer for your home. Why would you choose to do that? There are two overarching reasons.
Summary
You have options for compensating both your listing broker and the buyer broker who completes a transaction with a ready, willing, and able buyer. Our recommendation is that it is in your best interest to offer compensation to buyer brokers out of the proceeds of your sale. Please note that our compensation is not affected by this decision, so this recommendation is based on maximizing the value of your home.
You may have heard or read about a recent settlement between the National Association of Realtors (NAR) and the Department of Justice that resulted in several significant changes to how real estate commissions are handled. We’d like to address how we are responding to the settlement, and how changes may affect you.
You may have heard or read about a recent settlement between the National Association of Realtors (NAR) and the Department of Justice that resulted in several significant changes to how real estate commissions are handled. We’d like to address how we are responding to the settlement, and how changes may affect you.
As urban areas continue to expand and temperatures rise due to climate change, the need for effective shade in cities has become too much to ignore. Cambridge, Somerville and suburban towns have begun the strategic use of trees and canopies. I think these options offer a powerful solution to provide relief from excessive heat and sunlight.
With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.
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