In August, the NAR settlement introduced changes in how commission details are displayed in the MLS. Georgia has two primary MLS services—GAMLS and First Multiple Listing Service (FMLS), the latter primarily used in the metro area. FMLS has opted to continue displaying buyer broker compensation, similar to what other privately owned multiple listing services and some states have done, allowing buyer brokers to see what compensation is offered.
Historically, sellers agreed to pay a commission—usually 5-6%—which was split between the listing and buyer agents. Knowing the buyer broker compensation upfront allowed agents to address any concerns before showing the property. Now, with the new structure, sellers can choose not to offer compensation, and this decision is clearly stated in the agreement.
What we’re seeing in Georgia is that most sellers, having seen the benefits of offering buyer compensation, are opting to continue this practice. Offering compensation helps sellers avoid potential buyer financing hurdles that may arise when the buyer has to shoulder their agent’s fees. Without the seller covering this, buyers may need to increase their loan amount or cover the cost out of pocket, which can impact their loan approval process, result in higher monthly payments, or even reduce the overall affordability of the home. These financing challenges can lead to longer days on the market or, in some cases, result in the loss of a sale altogether. For sellers, offering compensation remains a strategic decision to facilitate a smooth transaction.