What happens if I don’t offer a SOC (Selling Office Compensation)?
A new provision provides that the broker shall bring listings to the attention of the buyer, regardless of the amount of the seller’s offer of compensation, unless otherwise agreed by the parties. Similarly, new rules provide that brokers shall not filter listings sent to buyers based upon the compensation offered to the buyer broker, unless specifically requested by the buyer in a written buyer representation agreement. These rules also prohibit a broker from filtering listings sent to buyers based upon the listing firm or broker.
This new legislation also effectively separates the processes of buyer and seller agent commissions, and that is going to have significant changes as well.
Beginning January 1st, the seller and buyer both have control over what they’re going to pay. For the first time ever, a client can turn to their agent and say, ‘Please filter the listings. Don’t show me any homes where the seller is not offering to pay our agreed upon compensation rate.’” And a conversation like that only happens when you demonstrate your value as I described above.
It’s not lost on any agents that this change in Washington law comes in the wake of industry-shifting lawsuits over inflated buyer commissions.