BIC TIP #1249: Listing Agents, Stop It

Listing agents, stop it. Seriously. Stephen Long has a direct message for anyone still preparing a Form 220 at the listing appointment: with the new forms, that is no longer your job. The responsibility is shifting to the buyer agent and the new buyer compensation addendum.

The Old Habit

Many listing agents have gotten into the routine of reviewing the Form 220, the cooperative compensation agreement, at the listing appointment and having it ready to go. It made sense under the old way of doing things.

That routine is about to change. With the new forms, there is no need to prepare that agreement preemptively.

The New Way: The Buyer Agent Brings It

Going forward, it will be the buyer agent’s responsibility to execute what is now called the buyer compensation addendum. The buyer agent attaches it to the contract, and that is how they agree to get their compensation.

For listing agents, that is one less form to chase. You are no longer the one setting up the compensation paperwork before an offer even exists.

You Can Still Advertise an Offer, Just Not in MLS

Stephen clarifies that a seller can still offer compensation to a buyer agent, and you can still advertise it, just not through MLS. He notes that ShowingTime is also not the place for it.

Instead, it can appear on your social media, your flyers, or wherever else your firm allows. Check with your broker-in-charge about your firm’s policy on where and how compensation offers may be advertised.

The Practical Takeaway

Listing agents, you do not need to prepare a Form 220 in advance anymore. The buyer agent will attach the buyer compensation addendum to the offer. If your seller wants to offer compensation, advertise it anywhere your firm permits except MLS. Stay tuned for more forms updates as the changes roll out.