One of the requirements for gaining access to MLS as a For Sale by Owner or as any full service real estate client is an offer of commission. It can be as low as one dollar (as with List2Move.com) but you have to make a blanket offer of commission and it has to be documented in the listing agreement (Contract)! This “offer” basically says, “if you (a Realtor) bring me an offer that I accept, I will pay you (that Realtor) “x” amount of dollars or percent!!!! It is contractual, it is specified in the MLS and only Realtors who have access to the MLS database can see it!!!!! Again, it is contractual because we are dealing with money….which should make cents, right?
Negotiation of the commission can only happen before the contract is signed!
Real life story….
I got a call this morning from an agent who has an accepted offer with a seller. She tells me that the seller who is offering 1.5% says they are going to pay less because the buyer came in before they put the home on the MLS without a Realtor, however, the contract was drawn up by a Realtor with the Realtor’s name on it naming the Realtor’s company as the procuring cause of the sale.
I looked up the offer of compensation on our listing agreement, and it read 1.5%. Seller didn’t renegotiate with Realtor before accepting the offer and therefore, most likely, the Realtor will be paid the full 1.5% commission.