Concessions Vs. Compensation – Differences Explained

CRMLS VP & General Counsel Ed Zorn discusses and provides examples of the distinct differences between concessions and compensation, why CRMLS planned on adding concession fields even prior to the lawsuits, and some concession usage statistics.

00:00 Intro
01:01 Important Difference #1: Incentive
02:25 Important Difference #2: Who Decides How To Use The $
04:47 Important Difference #3: Concessions Are Not A Replacement For Compensation

Follow us on social media:

[MAZDAKPRODUCTION]

Thanks for trying to explain the difference! Unfortunately, this ruling will actually make future real estate dealings less transparent and raise costs for buyers. In the end, it will decrease sellers' net profits and could lead to more lawsuits. Plus, it will undermine efforts by home ownership advocates to make housing more affordable for veterans, potentially killing many deals before people realize they need to abandon and retract this backward ruling.

[Patrick-US]

Thank you for explaining the distinction. But could the reason behind the use of the new field on the approximately 1000 new listings be that agents know that the old field is going away, so they have started to transition, as their listing period could go beyond Aug. 17, and they are just playing it safe, and not because the new field is preferred?

[canyonlakelivingbyrobertae]

I am open to change. This really makes things muddied.

[HomeBuyingRegistry]

This will be helpful to share with consumers who are confused by the switch - thank you for posting.

[TamaraFarrar]

So if the offer of compensation does not cover the agreed percentage agreed upon between buyer and buyers agent then it cost the buyer more money out of pocket!! Therefore buyers already struggling to put together a down payment and cover the rest of the cost associated with the purchase are at more of a disadvantage . Buyers agents often write multiple offers to try and get an offer accepte, You can sugar coat it however you like i just see a mess in the message.

[shahinjenabi]

I dont see future career for buyer agents with these changes, it wont help buyers too, the inexperienced buyers push prices going up and up.

[canyonlakelivingbyrobertae]

it seems that the way this is communicated is a bit different than the NAR training that I attended on 08/02/2024.

[bhomerealtyfinance]

Why is it that after failing to protect the agents that pay you and NAR, you guys are raising prices?

[ericanicolai]

Could you explain it again. None of it makes sense.