$400 Commission

You may have seen or something like it advertised. Basically someone at an office makes $400 to put your listing in the computer. That process could take 1-2 hours which means they make $200-$400 an hour. Not bad!!!

Then you would pay a brokerage fee, perhaps 3% to have a selling agent sell your house. It would seem that you would save close to 3% by going this way.

Well, you don't get that service from the reduced fee companies. Also note that things are changing for them because they are really using the selling brokers to do their job for them. Here are some recent Multiple listing rule changes:

Legal Bulletin 162 Supplement
September, 16, 2002. Rule 4 has been further amended to require brokers who list property but decline to provide certain customary services to sellers to disclose the nature of their limited services in the Agent Remarks section.

RULE 4: LIMITED SERVICE AGENTS

After further consideration by the Board of Directors, Rule 4 has been amended to require brokers who list property but decline to provide certain customary services to sellers to disclose the nature of their limited services in the Agent Remarks section. In addition, under the amended rule, NWMLS will not accept listings if the listing member will not receive notices, notices of acceptance, and revocations of offers and counteroffers on behalf of the owner. The Rule provides as follows:

4. Listings Not Eligible.

The following listings will not be accepted by NWMLS and shall not be taken on a NWMLS Listing Form:

(a) Net listings;

(b) Open listings;

(c) Undivided interests in property, including tenancies in common, real estate investment trusts, and limited partnership interests, except for timeshares under Rule 5;

(d) Listings for which the listing member will not receive notices, notices of acceptance, or revocations of offers or counteroffers on behalf of the owner; and

(e) Listings for which (i) the listing member requires or desires selling licensees to contact the owner directly to obtain property information, schedule showings, or negotiate contract terms; or (ii) the listing member will not assist the owner in preparation or review of contract documentation, unless the limitations set forth in this subsection (e) are disclosed in the Agent Remarks. Such a disclosure by the listing member will constitute approval of the conduct of any other member consistent with such disclosure.

The amended Rule is designed to require listing members to accept notices, notices of acceptance and revocations of offers and counteroffers as provided in the purchase and sale agreements. It is also designed to help the listing member communicate with the selling member so that both agents know how best to proceed with showing and sale. For example, the Rule makes clear that a selling member can communicate directly with a seller without first notifying the listing member as (as otherwise required by Rule 125) if the listing member discloses that showings should be arranged directly with the owner.