Gwen Fowler Real Estate, Inc.®

How Agents Get Paid--Prepare for July Its all about form 120

Posted By Gwen Fowler @ Apr 22nd 2024 9:37am In: 60 Second Insight

  • MLS Commission Changes: Have you heard about the new changes coming to how commissions work in real estate? The MLS is updating its policies, and we have until July 15th to get up to speed.
  • New Rules Explained: So, here's the deal: instead of sellers paying commissions to buyers' agents, buyers themselves will agree to pay a set commission when they sign with their agent.
  • Options for Buyers: Buyers now have a few options for paying this commission. They can either pay it out of their own pocket, negotiate with the seller for a concession, or, if they're not on board, move on to another property.
  • Benefits for Sellers: You might wonder why sellers want to pay the commission. Well, it's all about attracting more potential buyers to the property. The more exposure, the better chance of selling! 
  • Importance of Exposure: How do Zillow and other real estate websites showcase properties? It's all about getting as many eyes on the listing as possible. More visitors mean more potential buyers.
  • Form 120 Details: Let's talk paperwork. There's this thing called Form 120. It's a simple agreement between agents that a commission will be paid, agreed upon before showing the property.
  • Buyer-Initiated Conversations: Now, here's the exciting part. The buyer needs to start the conversation about commission amounts with their agent. It's all about open communication.
  • Adjusting to Changes: Yeah, it's a bit of a detour from how things used to be, but we're all in this together. The industry must adjust its business models to adapt to these changes.
  • Opportunity for Questions: If you have any questions or need clarification, now's the time to ask. It's important to understand what you're getting for your money.
  • Embracing the New Way: Today marks a new chapter in real estate. We're moving forward, navigating these changes, and still serving our clients to the best of our ability. Exciting, right?

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