My new Boston condo for sale thoughts on commissions

Boston Real Estate for Sale

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.

Boston condos – Ford Realty Inc

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.