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
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[@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.

[@Bawkzers]

Exactly. This is going to increase unethical activity. These are band-aid solutions or just a stupid change that realtors never needed.

[@MAZDAKPRODUCTION]

@@Bawkzers America never needed an authoritative ruling light like this that undermines sellers freedom of speech to advertise their Compensation Plan

[@MAZDAKPRODUCTION]

@@Bawkzers this ruling is literally unconstitutional

[@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?

[@shahinjenabi7625]

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.

[@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.

[@lilsmart805]

Thank you 🙏

[@bhomerealtyfinance8179]

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

[@canyonlakelivingbyrobertae1323]

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

[@canyonlakelivingbyrobertae1323]

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

[@OwnItGroup]

00:10 Concessions in Price are different from offers of compensation 01:00 Concessions are distinct from offers of compensation 01:53 Distinguishing between concessions and compensation in real estate transactions. 02:41 Concessions and compensation have different decision-making processes 03:41 Buyer decides on concessions in price field 04:27 Concessions and compensation have key differences in real estate transactions. 05:11 Leveraging CRMLS Concessions vs. Compensation 06:05 Sharing commissions is not a seller concession Crafted by Merlin AI.

[@apartmentinvestingrealty]

👌🏻

[@ericanicolai7568]

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

[@teresale]

i can not view this video.

[@lexvelarde]

So in the end, you failed to represent the value of our work, and we still have to pay your organization.

[@bernardcohen3245]

this is garbage . Just say the business of helping buyer buy a home is over and only listing agents will be in control and make a living. Thats the way its always been but now you've made it impossible for us to make a living.