In May 2024, the California Regional MLS (CRMLS) launched a new feature on its website called, “Concessions in Price.” This allowed listing agents to input and advertise the concessions, and contributions to the buyer’s cost burden, that their seller is willing to make. There were three value fields: a simple “yes or no” indicating if the seller would consider concessions, how much the seller would concede and a specification if this was a percentage of the sales price or a flat dollar amount.
CRMLS CEO Art Carter said at the time the system was meant to spur easier and more transparent communication between the parties in a transaction.
But no more.
Two months later, on July 30, CRMLS has walked back Concessions in Price. The “yes or no” field related to whether a seller will offer concessions is remaining, but the two fields specifying the amount are gone.
Earlier this month, the California Association of REALTORS® (CAR) updated its Residential Listing Agreement (RLA) form to remove mentions of broker-to-broker compensation and seller concessions. The Multiple Listing Service Addendum form in turn mentions that even if the seller permits their broker to advertise their willingness to make concessions on the MLS, no amount of potential concessions can be listed.
In a statement to RISMedia, CRMLS said that the change to CAR’s RLA form is what prompted their own shift on Concessions in Price.
“(CAR) removed all seller instructions to support concessions. Therefore, the CRMLS Board of Directors voted to remove the two fields that specify dollar and percentage amounts from CRMLS,” says a CRMLS spokesperson.
“In the two months following implementation of the three new (Concessions in Price) fields, only approximately 50% of the 3,000 listings that used the (Concessions in Price) fields specified a dollar or percentage amount,” adds CRMLS.
CAR declined to comment.
As part of the National Association of REALTORS®’ (NAR) settlement in the Sitzer/Burnett class-action lawsuit, affiliated MLSs are no longer permitted to list offers of cooperative compensation. This change goes into effect on August 17. Cooperative compensation itself has not been outlawed; the ability for listing agents/brokers to advertise it has merely been restricted. (It has been claimed that this will reduce alleged “steering” to properties with offers of higher commission for the listing broker.)
CRMLS is the largest MLS in the United States, with 110,000 members. The Mid-Atlantic based Bright MLS had followed its lead and offered similar features as Concessions in Price this past May.
RISMedia has reached out to Bright MLS for comment on the seller concessions field.
Follow RISMedia for updates on this developing news.
