If you are trying to understand Washington real estate broker commissions, the key question is usually simple: can seller-offered compensation appear in a listing, and if not, how is the buyer’s broker paid? This article explains how broker compensation may appear in Washington listings, what the NWMLS changed, and why buyers and sellers should pay attention before moving forward.
Because these rules affect how compensation is disclosed and negotiated, they can shape offer strategy, buyer-broker conversations, and the funds a buyer may need to close. Below, we break down the Washington-specific NWMLS changes in plain language and explain what to verify in practice.
In the State of Washington, the Northwest Multiple Listing Service (or NWMLS) updated how real estate broker commissions can appear on home listings. The changes were officially announced on July 22, 2019, and took effect on October 1, 2019.
These changes increased the level of transparency and flexibility in real estate transactions in the WA State marketplace. Among a few other things, the changes allow the broker’s firm (the firm representing the buyer) to publish how much the seller is offering the broker in commission on its public website and on the WA home listing.
As mentioned, one of the changes which the NWMLS implemented relates to the disclosure of real estate broker commission. Now, broker’s firms may disclose the real estate broker commission offered by the seller on their public websites and on the WA state home listing.
Broker’s firms were already able to publish other information about the property for sale, including square footage, bedrooms, bathrooms, and other important details. Now, they will be able to include the commission offered to the buyer’s broker (referred to as the SOC, or selling office commission).
What’s more, the changes also remove the requirement that home sellers must offer a real estate broker commission to the buyer’s broker. Now, in cases in which the seller doesn’t offer a set commission to the buyer’s broker, the buyer and the buyer’s broker may negotiate compensation as a part of the offer to purchase. Again, these changes were announced in July, 2019 but took effect on the 1st of October, 2019.
The change which allows firms to disclose real estate broker commissions on their public websites and Washington home listings gives buyers and sellers more visibility into how a transaction may be structured. When compensation is shown, buyers and the brokers who represent home buyers can better understand the seller’s offer to the buyer’s broker before an offer is written.
That added visibility can make it easier to plan conversations with agents and lenders early in the process. It also gives sellers more flexibility in how compensation is handled while making the structure easier to evaluate.
Before writing an offer or agreeing to a listing strategy, it helps to confirm how broker compensation is being handled in that specific transaction.
Buyers should ask whether seller-offered compensation is shown in the listing and, if it is not, how their broker expects to be compensated. That is important because compensation terms can affect how an offer is structured and how much cash a buyer may need to bring to closing.
Sellers should confirm whether any compensation being offered to the buyer’s broker will be shown through the listing and how that decision may affect negotiations with buyers. If no set compensation is being offered, sellers should understand that compensation may instead be addressed as part of the purchase offer.
Both sides should confirm details early with the real estate agent involved and revisit them with the lender when budgeting for the transaction. If the compensation structure changes what the buyer needs to pay directly or changes the way the offer is written, that can affect affordability and cash-to-close planning.
As stated directly by the CEO of the NWMLS, Tom Hurdelbrink, transparency is something desired by everyone in the real estate marketplace: sellers, buyers, agents, and brokers. More openness means that sellers and buyers can make better-informed decisions, and this produces a more equitable marketplace characterized by healthy competition.
The CEO of Redfin, Glenn Kelman, reiterated this sentiment when he commented on the changes made by the NWMLS. Given the rise of the internet and public websites, sellers and buyers want the information to be as available and searchable as possible. Given the financial stakes involved in the real estate industry, sellers and buyers are perfectly justified in this attitude.
A home is usually one of the largest, most significant purchases a person will make in his or her lifetime, and so it makes sense that all involved parties want full transparency and flexibility.
These changes made by the NWMLS were implemented to improve the industry. To the uninitiated, the real estate industry and the market can seem overwhelming in their complexity. This is why it can be useful to reach out to an experienced mortgage professional.
Before moving forward, make sure you understand three things: whether seller-offered compensation is disclosed in the listing, how the buyer’s broker will be compensated if it is not offered there, and whether that structure could affect the buyer’s budget or cash to close.
If you want help planning for the financing side of a purchase, Sammamish Mortgage can help you evaluate affordability and prepare for next steps. Contact us to learn more, View Rates, get a Rate Quote, or Apply Now.
Yes. Under the NWMLS rule changes described here, a seller may offer compensation to the buyer’s broker, and the buyer’s broker firm may disclose that offered compensation on its public website and on the Washington home listing.
No. The changes allow buyer-broker compensation to be shown publicly, but they do not require every listing to display it. Buyers should confirm whether compensation is shown in the specific listing they are considering.
If no set compensation is offered by the seller, the buyer and the buyer’s broker may negotiate compensation as part of the offer to purchase. That makes it important to clarify payment expectations before an offer is written.
Yes. The compensation structure can affect how an offer is written and how much money a buyer may need to bring to closing. Buyers should review those details with their real estate agent and lender early in the process.
The main changes described here are that broker firms may disclose seller-offered compensation to the buyer’s broker on public websites and Washington listings, and sellers are no longer required to offer a set commission to the buyer’s broker.
The changes were announced on July 22, 2019, and took effect on October 1, 2019.
SOC stands for selling office commission. In this context, it refers to the compensation offered to the buyer’s broker.
These rules matter because they affect how compensation is disclosed, how a buyer-broker relationship may be structured, and how much a buyer may need to budget for closing. Knowing the compensation setup early can help with offer strategy and affordability planning.
These rules give sellers more flexibility in how buyer-broker compensation is handled. Sellers should understand whether compensation will be shown through the listing and how that decision could influence negotiations with buyers.
Not necessarily. This page discusses Washington-specific NWMLS listing rules, so buyers and sellers should not assume the same disclosure and compensation practices apply in every market outside Washington.
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