MLS Fees - Important Update

We’re all aware that there are many different business models in the market. Some offer USP’s with Warranties and Guarantees, others offer reduced fees for the consumer.  This is not an anti-competitive conversation...just an educational one.

When a brokerage’s USP is lower fees for the seller, they probably have a toolbox full of techniques to help achieve that.  One company instructs in their listing comments for cooperating REALTORS to send in the offer and the seller may enter into a fee agreement.  Too late. Once you write the offer you must present it and it’s too late to effectively negotiate your commissions.

It’s important that prior to writing an offer on a property that offers a commission that is lower than the fees you’ve agreed to with your buyer in the BRA, or fees that do not reflect the value you feel you’re bringing to the transaction, you must first have the MLS Fee Agreement signed.  

Do not deal with the commissions in the body of the offer (in the terms), there are a couple of reasons for this but the important one for today is that you open yourself to messy negotiations that make your commissions an obstacle to your buyer getting the property they want...you’ll receive a counter offer like “seller accepts $350,000 at the posted commission or $365,000 at 3.5 / 1.5%.

Also, you must be careful not to discriminate showing properties based on the commissions offered...its deemed as anti-competitive and a breach of fiduciary duties.

When you find yourself in this situation call Nathan, David or Kris before writing the offer and we’ll walk you through the dialogues and process to secure your commissions.

This is an in-house form and is not on webforms or realtorlink...find it on resource site and facebook.

You can find the form in our Company Resources Section - click here!