Yesterday in Raleigh, an 11-person committed voted unanimously to recommend that NC real estate agents provide written disclosure of bonuses they receive from sellers before their clients make a decision to buy a home. This recommendation will be presented as early as next month to the NC Real Estate Commission.
As you probably know, real estate agents earn a commission by helping either a buyer or seller with their transaction, typically 6% which is split 50/50 between the buyers and sellers agents. In some cases however, home sellers will often offer additional incentives ON TOP of the usual commission such as cash bonuses, cars, trips, or anything else of value.
The committees reason for approving this recommendation was to simply create some transparency in the transaction since it’s possible the agent could be motivated by the additional incentive.
According to the article in Charlotte Observer:
The bonuses, which are legal, are common in North Carolina, committee members said. They are used to help sellers move property in slow markets. “We see it as a way to make sure the broker is thinking of us as they do their home tours,” said committee member Hampton Pitts of Raleigh, a division president of Centex Homes.
Committee members worried, however, that buyers might be unaware of agents’ motivation in showing them properties.
“I think a buyer needs to know you’re steering them to a particular house because there’s some sort of bonus,” said Harriet Worley, an N.C. assistant attorney general in the consumer protection division.
I personally think it’s a fantastic idea since as a real estate agent it’s our responsibility to be your trusted advisor. If we’re not willing to disclose any additional compensation we could potentially receive as a result of your purchase, then my intentions aren’t in line with what I’ve committed to provide.
