Navigating Change: How Gibson Sotheby’s International Realty Adapts to New Industry Practices

The real estate industry is evolving, and Gibson Sotheby’s
International Realty is at the forefront of these changes.
Recent class action settlements have brought significant shifts in
how real estate transactions are conducted, particularly regarding
compensation for Buyer Agents. While these
settlements did not involve our agents, they have
reshaped industry practices in two key ways:

1. Clear Contracts with Buyers: Realtors must now
   establish a formal agreement with Buyers before showing properties,
   detailing the terms of service and fees.

2. No MLS Compensation Display: Buyer Agent
   compensation can no longer be displayed in Multiple Listing
   Services (MLSs).

In response, we have dedicated extensive hours to training our
associates on the new guidelines. Our approach has been to
revise our agreements to ensure clarity and transparency, detailing
who we represent, our fees, and transaction expectations for both
Buyers and Sellers.

In Massachusetts, where two MLSs have yet to comply with these
changes, we are advising our Sellers about three important changes
to the offer of Buyer Agent compensation in our largest local
service, MLSpin:

1. Seller-Directed Compensation: Offers of Buyer
   Agent compensation now come directly from the Seller rather
   than the Listing Agent and Broker, placing them at the center
   of commission disputes.

2. Negotiable Offers: The compensation offer can
   be altered or removed during negotiations, which may be confusing
   for some.

3. Arbitration Clause Removal: The absence of the
   arbitration clause means disputes are more likely to be settled in
   court.

Given these complexities, we have chosen not to advertise offers
of Buyer Agent compensation. However, we encourage Sellers to
consider offers that include such compensation and advise Buyers to
factor it into their offers. This strategy has been well received,
with Sellers often selecting offers that provide Buyer Agent
compensation, reflecting the best terms for their needs.

At Gibson
Sotheby’s International Realty, we are proud to lead in
Massachusetts with the highest average sale price and pledge to
provide transparent and honest communication to guide you
confidently through this new landscape. Our local
advisors and their knowledge are what make us exceptional.
Reach out to us anytime—because expertise matters.

—
Colleen Barry, CEO

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