Seller Brokerage Agreements in Georgia

Do you need an agent to sell a home? Of course not. However, you don't know what you don't know - and real estate is easy until it's not. Then, it becomes stressful and potentially very expensive. The internet and "advice" sites can be helpful, but expecting them and AI to handle things as effectively as a full time, professional agent is foolhardy. In GA, there is NO FIDUCIARY responsibility for agents and agents here handle every aspect of the transaction, including writing the contracts. Lawyers conduct the closings, that's it. The complexity and chaos surrounding a real estate transaction has never been greater. There are more traps and hurdles than ever before, that’s simply the reality of the process. 

The NAR Lawsuit Settlement

The law suit settlement by the National Association of Realtors institutes and reinforces certain compensation guidelines. As a practical matter, nothing in Georgia changes as far as agent compensation. It has always been, and continues to be, entirely up to the seller what, if anything, they want to pay agents involved in their transaction. Compensations are not set by law and are fully negotiable. The settlement reinforces this and adds additional transparency into the listing agreement. CLICK HERE for the Ansley Real Estate seller overview. 

As a reminder, what home sellers in GA need to know:

• Compensations are not set by law and are fully negotiable
• Home sellers are not required to offer compensation for a buyer’s agent
• Most multiple listing services (MLSs) will no longer include offers of buyer agent compensation
• Buyers can request the seller pay compensation to their buyer's agent when an offer is written
• Buyers may be obligated to cover the difference if offered compensation is less than that agreed to in their buyer brokerage agreement

The fundamentals of buying and selling a home remain the same, the issue of compensation has simply become more transparent. The settlement reinforces what has always been in effect in GA, all offers of agent compensation are completely negotiable. For sellers, it's a question of deciding if offering buyer agent compensation will ultimately result in the best possible outcome. Every situation is different and that is a discussion best had with the listing agent. 

What is a Seller Brokerage Agreement?

An exclusive seller brokerage engagement agreement establishes a client relationship between seller and real estate broker. The seller gives permission for the broker to exclusively represent them in listing and selling the identified property following the terms and conditions set forth in the agreement.  The real estate broker is required to represent and look out for the client’s interests at all times – as long as those interests are not illegal.

Why is This Valuable to Sellers?

Agents are not required to sell or buy a home. However, a professional agent is a major asset to a seller at every level from prep, pricing, marketing, negotiation, contract writing, and contract management. It's possible the compensation changes will result in an increase in buyers without agents, experienced guidance would be critical in that case. However, it's imperative that home sellers be careful not to allow dual agency - where the listing agent represents both parties. NEVER - NEVER - NEVER ALLOW DUAL AGENCY!

What Does a Listing Agent Do?

A professional listing agent should handle every aspect of the transaction. From the moment the agreement is signed, they should take control. This includes but is not limited to will analyze information such as comparable market data, assist with required disclosures, advise during negotiations and write the purchase agreement. In general, they act as the client’s advocate during the purchase process. See what a listing  agent does by clicking here.

 What if There is No Buyer Agent?

If the buyer is unrepresented, the listing agent is required by law to represent the interests of the seller. If there is no buyer's agent, the listing agent then effectively manages the entire transaction. They will not advise or counsel the buyer, they can advise for procedural or ministerial matters only. Transactions without buyer agents tend to be more difficult as there is no guidance and filter to walk the buyer through the process. It is reasonable to expect this to become more common post lawsuit settlement. That makes vetting a listing agent even more important as it's possible they may incur unexpected work.  

How Much Does a Listing Agent Charge?

Recent (2023/2024) lawsuits and projected settlements surrounded transparency of listing and buyer broker compensation. In GA, compensation has always been fully negotiable, there are no set fees.  Listing agent compensation is negotiated between the agent and the seller. That is spelled out in the listing agreement. The seller IS NOT required to offer buyer agent compensation. Every situation is unique, and agent compensation, including any for the buyer broker, is discussed and agreed upon prior to signing a listing agreement.

What are Seller Responsibilities?

In this agreement, sellers agree to handle all real estate concerns through the agent. Sellers agree neither to seek real estate information from nor work with any other agent. Sellers agree to make their home available for showing, to have it promoted as detailed by the agent, to have any self generated marketing directed toward the agent and to cooperate with the agent during the listing period. In short, when sellers sign the exclusive listing agreement, everything concerning the home needs to be directed to the listing agent. The agent will work with the seller on all aspects of the transaction.

Is an Agent Required to Sell a Home?

An agent is not required to sell a home. As has always been the case, agents provide everything from full service to ala carte services. If one is desired, sellers should decide on a level of service then thoroughly research and interview at least three agents before selecting one. 

What About Other Options?

Some sellers feel competent to act unrepresented. They may feel money will be saved or that an agent isn't "worth" it. Some may simply not be able to pay an agent. The internet will offer options; sites will discuss things from ala carte brokerages, pay as you go brokerages or iBuyers and investor options. Sellers should very carefully review and research options as these recent changes have opened up many untested but heavily marketed schemes. The iBuyers lost hundreds of million of dollars during insanely robust times. Zillow, and especially Redfin, continue to be epic failures; unable to adjust to the current landscape. Choose wisely.  

Is That Agent a Pro?

Professional listing agents make a real estate transaction look boring. The swan appears gracefully cruising across the water, no one sees those feet working hard to keep things moving.  A boring, uneventful experience is the desire of every seasoned agent. It cannot be repeated often enough, research any agent under consideration. There are no standards in real estate. In GA, there are NO lawyers writing, reviewing or managing contracts - it's ALL on the agent. Take a few minutes and GOOGLE an agent. Call for references, check production. Everyone knows at least 5-7 agents, resist the push to use inexperienced friends or relatives. This is a business transaction, a very significant one, treat it that way.