What's All This Talk About Commissions?

Background on the NAR Lawsuit

Over the last year a significant legal case made waves in the real estate industry and sparked some heated public conversation regarding Realtors and how they get paid. The outcome of the lawsuit can be summarized with the following changes:

1. Multiple Listing Services (MLS) platforms can no longer advertise if a buyer's agent commission is being offered by a seller. 

2. North Carolina made clarifications to existing verbiage on our listing agreement documents to reiterate that sellers are not, and have never been, required to pay the commission of a buyer's agent.

What does this mean for sellers?

Since Lime Rock Realty has always been willing to negotiate our listing fee, the way we conduct business never changed. We have always been transparent with sellers by explaining that a 6% fee is split equally at closing between us and the firm who represents the buyer.

What happens if a seller doesn't want to pay a buyer's agent?

Since buyers are expected to already have a down payment of approximately 3-20% as well as their own additional closing costs, which typically range from 2-6% of the purchase price, it is common to see sellers paying the agents on both sides of the transaction. Most buyers are not always in a financial position to cover an additional 3% for their agent, so if this fee can be covered by the seller, it will increase the potential for more showings. More showings = more possible offers = a greater chance of selling quickly.