Deborah: The real estate industry is implementing changes to increase transparency regarding
buyer’s commissions. We expect to see 8 main practice changes to go into effect in our market
August 17 th , 2024. We are going to break them down for you:
Michelle: The first change is that offering commission to the buyer’s agents is no longer
required through the participation of the Multiple Listing Services (MLS). The second change is
commissions can no longer be listed on MLS.
Deborah: However, sellers can still offer commission to buyer’s agents and listing agents can
advertise these commissions being offered in their marketing and on their agent and
brokerage websites. Sellers may elect to list concessions on our local Bright MLS. While
compensation is no longer required at all, sellers are free to offer concessions towards a buyer’s
closing costs including commission for the buyer’s agent.
Michelle: Also, buyer’s may request sellers pay for their broker’s compensation but it has to
be written in the contract. Concessions are subject to open negotiations in the purchase
contract.
Deborah: That’s right. In addition, Buyer-Broker written agreements are required before
touring a home. This is already a standard by Virginia Law that specifies how the buyer’s
broker compensation is earned and received, but now these agreements are required
prior to touring a property.
Michelle: With the new changes, what sellers offer will be a maximum commission. Even if the
seller is offering more commission, buyer agent commission can only be as much as what
is written in the Buyer-Broker agreement and contract.
Deborah: Changes made because of lawsuits and the 2024 settlement release National Association of Realtors (NAR), over one million NAR members, all state/territorial and local REALTOR® associations, all REALTOR® MLSs, and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions.
Michelle: It’s important to know about these changes and we are happy to explain anything
further as we all navigate this new landscape.
If you’d like to discuss buying, selling or investing, reach out to Michelle
at [email protected] or 703-568-7868.
Michelle Stanko is a licensed Realtor in Virginia; Deborah Davis is a licensed Realtor in
Virginia and DC; and Laurie Perl is licensed Realtor in Virginia, Maryland and DC. The Pearl
Team at RE/MAX Allegiance, 3319 Langston Blvd, Arlington, VA 22207, 703-522-1940. This is
not intended to solicit properties already listed. No financial or legal advice provided. Equal
Housing Opportunity.