Welcome to our real estate blog, designed to keep the public informed about the latest real estate trends within the Hudson WI and the 54016 zip code area.
As real estate professionals dedicated to serving the greater Hudson WI community, we understand the importance of providing clear and reliable information, especially considering the legal challenges currently shaping the future of how realtors will conduct business. Because of the constant confusion and miscommunication found in media reports, we want to clarify what this means for you.
The impact of the national lawsuits and what this will mean here in Wisconsin:
In simple terms, the national antitrust lawsuits mandate a shift with the ‘decoupling’ of commissions on the MLS, which means buyer agents now are to negotiate compensation fees directly with clients upfront (FYI – this was always supposed to have been done) rather than anticipating guaranteed compensation from the seller. Compensation for buyer agents will no longer be identified on the MLS but sellers still retain the right to compensate a buyer agent should they believe it is in their best interest. NAR’s recent proclamation states that any realtor showing a buyer a home is required to have the buyer sign a ‘buyer agency disclosure’. Remember at the time of this being written the state of Wisconsin is still in the process of interpreting the National Association of Realtors settlement agreement and the outcome is yet to be determined. At a minimum, a buyer agency disclosure of one form or another will be required to be signed by the buyer before seeing houses.
Historically what sellers have done regarding commissions:
In Wisconsin, the current listing contract includes two key components that allow for transparent negotiation of commissions, which is why WI has not been named in the national lawsuits to date.
- Line #26 of the WB-1 Residential Listing Contract – Exclusive Right-To-Sell allows the homeowner and agent to negotiate and record the agreed commission.
- Line #51 – Compensation to Others enables homeowners and listing agents to discuss the pros and cons of whether a seller should offer compensation to the buyer’s agent.
These provisions in the current Wisconsin listing contract show compensation was always negotiated by the seller for the listing agent, as well as for the buyer agent from the very outset. For additional insights, visit our blog at: www.durhamexecutivegroup.com/blog/page/3/.
Forthcoming changes that will impact sellers:
Sellers will need to evaluate the importance of offering the buyer agent compensation as there will be a direct correlation between the length of time a home is on the market and whether a seller can realistically achieve their desired sale price. It is anticipated most buyers once they realize a seller will not compensate their realtor (as they would now be forced to compensate their realtor themselves) will instead schedule showings at properties where the seller has agreed to compensate the buyer agent.
Changes that will impact buyers:
The National Association of Realtors and the state of Wisconsin will require every realtor to first obtain a signed agency disclosure or a WB – 36 buyer contract from buyers before allowing them in a home. The disclosure would ideally outline compensation with agency roles and duties explained. Any realtor, even the listing realtor who simply opens the front door for a buyer and who does not have the buyer first sign an agency disclosure will most likely violate either Wisconsin real estate law or even possibly the local MLS requirements as they are now tasked with policing realtors showing homes. It is important to note should the buyer not sign the WB-36 Buyer Agent Agreement the buyer ‘is not’ legally represented. In situations where the buyer has not signed the WB-36 and is being shown homes without any buyer agency disclosure signed, the buyer is not the realtor’s client, subsequently, state statute requires the realtor to represent the seller’s interests, not the buyers. This is powerful as it means any information the buyer shares with the realtor financially or otherwise, may legally be shared with the seller possibly to the buyer’s detriment. A signed Disclosure to the Customer would at least allow buyer confidentiality.
John and Becky Durham work tirelessly to keep our Hudson WI and Troy Burne Golf Village neighbors informed of real estate happenings, as well as to ensure transparency and fairness in every transaction reaffirming the importance of working with knowledgeable and ethical professionals. Should you have questions about recent or any upcoming developments resulting from the national anti-trust lawsuits and how they might affect your real estate decisions, or if you know someone looking to buy or sell a home in WI or MN, contact us at 651-231-2191. Our commitment to honesty, integrity, and superior service continues to remain steadfast.
Durham Executive Group Email Us Today: john@durhamexecutivegroup.com
Website: www.durhamexecutivegroup.com
Phone: (651) 231-2191 or (651) 231-2192
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