Nation’s largest MLS now allows listings to show concessions
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The California Regional Multiple Listing Service has implemented changes that now allow subscribers to include any concessions a seller is willing to consider in a listing, including for broker commissions.
Previously, information about concessions was only recorded at closing, but now sellers have the option to advertise concessions in price, such as escrow or title fees, lender fees, property improvements, and most importantly, broker fees, directly in the listing.
According to CRMLS, about 40% of closed listings on the MLS included concessions even though they were not previously advertised. With the new update, sellers can now specify the total amount of concessions offered as a percentage or dollar figure, which can be used for various transaction costs.
The update aims to provide transparency and help buyers understand which listings offer concessions to assist with closing costs. It also gives sellers and listing agents the ability to showcase their willingness to consider concessions at the listing level.
CRMLS Vice President Edward Zorn emphasized that the changes were made to align with settlement agreements and Department of Justice demands, ultimately benefiting consumers. The Department of Justice has indicated a desire to see commissions “decoupled,” shifting the responsibility of negotiating broker commissions to buyers.
Overall, the update aims to balance transparency and limit potential negative aspects in the real estate industry, benefiting both buyers and sellers in the process.
CRMLS will make the concessions information available to real estate portals, allowing them to decide whether to include it in their consumer-facing listings.
