Two specific changes will go into effect starting in mid-July :

1.  A new MLS rule prohibiting offers of compensation on the MLS. This would mean that offers of compensation could not be communicated via an MLS, but they could continue to be an option consumers could pursue off-MLS through negotiation and consultation with real estate professionals.

2.  A new rule will require MLS participants working with buyers to enter into written agreements with their buyers before the buyer tours a home. NAR has long encouraged its members to use written agreements to help consumers understand exactly what services and value they provide, and for how much.

What was the basis for this lawsuit?  There was a determination that there was some type of collusion between brokerages to establish a standard commission rate of six percent.  When I first began my real estate career, a six percent commission was a norm, but certainly not a standard.  In fact, during my very first week of post-licensing training, we were repeatedly told that there was not standard commission and that we should negotiate with the sellers to determine what we as agents were willing to work with and what they as sellers were willing to pay.  What I quickly learned was the more experienced agents were able to command (not demand) a higher commission than those of us who were new to the business.  One agent in my office routinely negotiated a seven percent commission while several newer agents had to accept a five percent commission.  This was strictly, “you get what you pay for”!  While I never quite proscribed to it, a lot of experienced agents would say something like, “Would you prefer to pay a little more to get a more experienced surgeon?”  I do have to agree that much like a medical procedure, its okay to have a less experienced agent in your corner as long as things go accordingly.  It’s when things get complicated that you really need someone who knows how to handle things.

So, what does that mean coming down the road?  Despite the news media’s uninformed reporting, the only
people who will significantly gain from these lawsuits are the attorneys.  I have represented buyers for whatever commission was being offered in the MLS.  I have always represented
my buyers and sellers with their best interests in mind.   For the past several
years, I have had to accept buyer agent commissions of one or two percent on a
good percentage of sales.  And a
commission of 2.5 percent on the remainder.  Not once in the past 3-4 years have I been able to do what the news
media called a standard three percent commission. 
With the new way of doing business, all my future buyer offers will include a
seller concession to cover the cost of the buyer side commission.  I don’t believe home prices will be affected
downward nor will the costs of a transaction go down.  It will simply be reshuffled and those of us
who are experienced and very capable will ultimately be able to secure higher
commissions.  Those agents who are not
capable and nervous about their value added will simply go away. According to NAR
statistics 75 percent of Realtors fail in the first year and 87 percent fail
after five years.  I do believe these numbers will be even higher.   Consumers will be left with a lower number of agents with whom to work and may ultimately have to pay more for these services.

Please join us for our next Seller Seminar scheduled for the morning of Saturday, March 21st at 9:30 am at the Old Brogue in Great Falls.  

We ask that you please RSVP for the seminar by registering below:

Hope to see you at next month’s MAM dinner in support of the CIA Officers Memorial Foundation.

Bob and I just took a new listing for a 4 bedroom 5 bath home on Navy Drive in the Oak Hill Section of Herndon.  The nearly 6,000 square foot home backs to parkland and provides a WOW factor at every turn.  Priced at $1,095,000 the home boasts numerous updates to include a recently updated kitchen, huge sun room that will surprise, a fabulously designed backyard coy pond with waterfall, a fully finished basement with game room, gym, billiards room, arcade, new roof, HVAC and much more.

Let us know if you or any friends would like to see this before it hits the market. 

Those who attended heard from U.S. Army Major General (Ret.) Alan Salisbury about the impact that COSF has been having on the lives of our veterans.  He explained that 75 percent of those who return to civilian life adapt with little or no need for assistance.  COSF helps our veterans work through the myriad organizations that are there to help.  With approximately 40,000 non-profits looking to help, this can be a daunting task.  Please click on COSF to learn more about the organization, to contribute or to volunteer.

A special thanks to all our recent cosponsors:  Black Family; Bozell Family; Clark Family; Copito Family; Liz Foley; Grossman Family; Kirkwood Family; Kuzmick Family; Morissette Family; Moxley Family; Nelson Family; Mannix Family; Parisot Family; Ramsey Family; Wolverton Family; Woodward Family; Young Family;   Al’s Towing and Storage; AOG Wealth Management; Dr. Basil Maghak; Double Eagle Title; Dr. Gary Kaihara, DDS; Great Falls Creamery; Gil Lunsford, GMH Mortgage Services; and of course The Old Brogue.  

With everyone’s support last month, we raised slightly more than $25,000 to help Stop Soldier Suicide!  Our best ever.

Veterans are at a 22 percent higher risk of suicide than those who have not served.  SSS is working to change this and your support will help immensely.  For those who have been part of the MAM dinners for many years, you will remember that we provided one of the first serious fundraiser for SSS and raised over $12,000.  This served as a springboard to get them were they are today. 

Simply join us for dinner and approximately 150% of your dinner tab will be donated to Stop Soldier Suicide.

Please be sure to thank our recent cosponsors:

Bozell Family; Clark Family; Liz Foley; Grossman Family; Kuzmick Family; Parisot Family; Al’s Towing and Storage; Dr. Basil Maghak; Double Eagle Title; Dr. Gary Kaihara, DDS; Great Falls Creamery; Gil Lunsford, GMH Mortgage Services.