My new Boston condo for sale thoughts on commissions
Boston Real Estate for Sale
My new Boston condo for sale thoughts on commissions
Boston condo for sale commissions for agents who assist the condo buyer used to be listed in the MLS (multiple listing service) for every condominium for sale.
That all ended last year after the National Association of Realtors lost a lawsuit. Sellers often want to negotiate for a lower commission, but when a buyer makes an offer and asks the seller to pay a buyer’s agent commission, sellers are paying it with no negotiation (generally speaking).
As a small Boston real estate company, I don’t have much data for this, and real estate brokers are not allowed to discuss how much they charge or are paid amongst themselves. All I can say is that the commissions that are being paid out to buyers’ agents are pretty consistent and appear to be the same as what they were when they were listed in the MLS.
Redfin reported that the average percentage of commission paid to buyer’s agents has gradually fallen since the NAR settlement was announced, although the decrease “is small and the dollar amount paid to buyer’s agents has held steady.”
It could be that because sellers often pay the buyer’s agent’s commission, buyers don’t feel the need to negotiate. I am not sure why sellers negotiate with their agent for a lower commission and then turn around and pay the buyer’s agent with no negotiation.
Boston Condos for Sale and the Bottom Line
There is a point to this post, and that is that Boston condos for sale commissions are always negotiable, and so are any fees charged by your real estate agent. There are many excellent real estate agents in the area looking for work every day, and it is always alright to negotiate and to pay less.
If you are a Boston condo for sale seller, your agent should not be advertising the fact that you will pay the buyer’s agent commission. There is a better way.
My new Boston condo for sale thoughts on commissions
Some Boston condo for sale brokers have speculated that the Boston condo resale business is heading the way of commercial agents – an arena that has never had an official MLS, and where each listing agent decides their own policy on how to pay the buyer-agents.
Go to Loopnet one of the largest Boston commercial real estate websites of last resort (where agents put their listings after they have exhausted their stable of waiting buyers). You’ll read about cap rates, FARs, NOIs etc. but you won’t find ANY mention of a buyer-agent commission unless desperation is in play.
Why is that?
They want you to make assumptions (in order):
- No commission is being offered to buyer-agents.
- Some commission might be offered, but you have to call to find out.
- The commission they offered over the phone won’t change.
Those are some hasty conclusions, and don’t be surprised if they are a moving target. Even when it gets down to putting terms in writing, the listing agents want to commit to a commission rate “as stated in the listing agreement” and hope you don’t ask questions. One agent this year said that the commission was on a sliding scale, depending upon how much I offer – but wouldn’t commit to any hard numbers.
When and if, MLSPIN that they don’t have to publish any commission rates, soon all will be offering zero (or close) to the buyer-agent – and will only acquiesce if they have no other offers.
A bad market will fix it though.
If the political hysteria over the next seven months freezes up the market, the motivated sellers and listing agents will be forced to pull out all the stops to make a deal – including the offering of a generous commission to buyer-agents. We haven’t seen a buyers’ market for 10+ years, so many won’t remember – but sellers will want to try everything else before they lower their price.
My new Boston condo for sale thoughts on commissions
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