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Bright MLS to allow $0 buyer broker commissions

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Summary

Bright MLS, the second largest multiple listing service in the US, will be allowing listing agents to offer a blanket compensation of zero dollars or more to buyer brokers, beginning August 9. This changes the minimum compensation amount previously allowed of one cent. The MLS emphasizes that this change does not impact the impartial system of offers of cooperative compensation, and that all offers are still negotiable. The National Association of Realtors supports Bright MLS's decision, and three class action lawsuits related to buyer broker compensation are currently underway. MLS Property Information Network recently settled the Nosalek lawsuit, agreeing to pay $3 million and to stop requiring sellers to offer buyer broker compensation.

Q&As

What is Bright MLS?
Bright MLS is the nation's second largest multiple listing service.

What is the change Bright MLS is instituting?
Bright MLS is instituting a change that will allow listing agents to put in a blanket offer of compensation for buyer brokers of zero dollars or more, starting on August 9.

How does Bright MLS's change potentially diverge from a National Association of Realtors rule?
The change potentially diverges from a National Association of Realtors rule, which states that listing agents must make an offer of cooperative compensation to buyer brokers in order to list a property on the MLS.

What is the purpose of NAR's policies?
The purpose of NAR's policies is to ensure information is efficiently distributed to facilitate the transaction of real estate to the benefit of buyers and sellers.

What is the significance of the three class action lawsuits relating to buyer broker compensation?
The significance of the three class action lawsuits relating to buyer broker compensation is that they have made the topic a hot one.

AI Comments

👍 Bright MLS is making a huge change in terms of transparency by allowing listing agents to offer buyer brokers zero dollars in compensation. This change is supported by the National Association of Realtors and will provide more flexibility and efficiency to the real estate market.

👎 Despite the changes made by Bright MLS, buyer broker compensation is still a hot topic due to multiple class action lawsuits. This change may not be enough to prevent further issues in the future.

AI Discussion

Me: It's about Bright MLS, the second largest multiple listing service in the US, allowing listing agents to offer a blanket compensation of $0 for buyer brokers. It's causing a stir because it seems to contradict the National Association of Realtors rule that listing agents must make an offer of cooperative compensation to buyer brokers in order to list a property on the MLS.

Friend: Wow, that's a big deal. What impact do you think this will have on the real estate industry?

Me: Well, Bright MLS is saying this is a small change, but it is a big change in terms of transparency. It allows sellers to have more control over the negotiation of their compensation and it also allows buyers to have more access to information about properties. It could also lead to more competition in the real estate industry, as buyer brokers may be willing to work for less in order to get the listing. Furthermore, this could lead to a shift in the balance of power between buyers and sellers, as buyers may have more leverage in negotiations if they are aware of a listing agent's offer of zero compensation. On the other hand, this could potentially hurt buyer brokers, as they may not be able to negotiate the compensation they are used to. However, the National Association of Realtors is supporting Bright MLS's decision, so it looks like it is here to stay.

Action items

Research the three class action lawsuits mentioned in the article to gain a better understanding of the current legal landscape surrounding buyer broker compensation.
Reach out to Bright MLS and other MLSs to learn more about their policies and procedures regarding buyer broker compensation.
Contact the National Association of Realtors to learn more about their rules and regulations regarding buyer broker compensation.

Technical terms

Bright MLS: Bright MLS is the nation’s second largest multiple listing service, serving clients in Delaware, Pennsylvania, Maryland, Virginia, New Jersey, Washington, D.C., and West Virginia and representing 42 Realtor associations.
MLS: Multiple Listing Service, a database of real estate listings that is shared among real estate brokers and agents.
National Association of Realtors (NAR): A professional trade association for real estate brokers and agents in the United States.
Nosalek, Burnett, and Moehrl: Three class action lawsuits related to buyer broker compensation.
MLS Property Information Network (MLS PIN): An MLS serving clients in the New England area.
Anywhere Real Estate, HomeServices of America, RE/MAX, and Keller Williams: Defendants in the Moehrl lawsuit.