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Hidden commission offers in images of freshly mowed lawns, yard signs and key chains have cropped up to an alarming degree ahead of Saturday’s deadline for rule changes, according to real estate leaders and a new analysis by Inman.
Executives from the nation’s largest brokerages and multiple listing services issued warnings about the workaround tactics leading up to changes enacted by the National Association of Realtors settlement agreement, including an aerial image that appeared in a faux listing photo with “3%” mowed into the backyard.
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Art Carter
“In the backyard, they had taken a drone, flown it up about 150 feet over the house, they had the gardener cut the [buyer broker] commission into the grass, and it could be seen on the multiple listing service in the photo,” Art Carter, CEO of the California Regional Multiple Listing Service, the largest MLS in the nation, told thousands of real estate professionals who joined a webinar before the deadline.
The image also caught the attention of Brian Donnellan, CEO of Bright MLS, who shared the same story in an interview with Inman on Aug. 13.
But there’s a catch: the image is an apparent joke, created by Louisiana eXp agent Tyler Polk and shared across Facebook groups dedicated to real estate.
Tyler Polk
The image has been shared thousands of times in social media groups. Bright MLS spokesperson Christy Reap confirmed Polk’s image was what Donnellan was referring to.
“I literally cut this out in my grass,” Polk told Inman on Thursday. “In the next two weeks I’m gonna share another one, but I’ve gotta wait till my grass grows back again.”
“I told my wife and she goes, ‘Why am I seeing our house everywhere?’” Polk added. “I said I might as well put it on the market now — free advertising.”
Other workaround techniques touted online ranged from unique landscaping to slipping a note card with a proposed buyer broker commission in a lockbox.
One meme shared the words “3 percent” in Braille, the tactile writing system used by people who are visually impaired. “What 3 percent looks like in Braille! Just a thought,” the user wrote.
Many of the memes sparked debate among real estate agents who disputed whether the practices would violate terms of the settlement agreement. They even prompted responses by high-ranking MLS and brokerage executives.
During a webinar viewed by around 10,000 real estate professionals on Thursday, The Real Brokerage President Sharran Srivatsaa took aim at agents considering similar workarounds.
Sharran Srivatsaa | Real Brokerage
“These are all really cute. Stop being cute,” Srivatsaa said. “You can’t do this stuff. Don’t do this. Do not be cute.”
Srivatsaa went on to clarify that some of the memes actually showed practices that would technically be allowed under the terms of the settlement. For example, the notecard that read 3% that was slipped into a lock box might be allowed so long as nothing is conveyed through the MLS. But Srivatsaa recommended agents take a different approach.
“Stop thinking about cute ways of getting buyer agent commission advertising out and start thinking about a better strategy in this process,” Srivatsaa said.
Those who try to find a loophole but violate MLS rules in the process could find themselves facing steep fines.
CRMLS warned that violators would be fined $2,500 for “offering or conveying” buyer agent commissions.
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The warnings didn’t stop agents, brokers and coaches from sharing memes widely online.
Another photo, clearly generated using artificial intelligence, showed a home with a front yard that had been landscaped to also show 3%.
“Well, that’s legal. As long as the photo isn’t on the MLS,” one Los Angeles-based agent wrote.
One more, which may not have been a joke, showed a for-sale sign with a note on top of it that read “2.4 percent buyer agent commission.” The image generated dozens of comments, with agents debating whether it was allowed under the terms of the settlement agreement.
“The DOJ coming to visit. Contempt of court. Get real,” one member wrote.
What remains to be seen is whether the memes inspired agents to follow through in attempts to deceive MLS leaders by creatively advertising offers of compensation via the MLS after Aug. 17.
On Friday, the day before the deadline, at least one agent appeared ready to follow through on an apparent attempt to signal commission in her listing.
When an eXp team leader prepared to list her home in Michigan on Wednesday, she had an idea for the perfect price.
The four-bed, three-bath home in Pinckney, Michigan, was listed for $490,003. Inman contacted the brokerage Friday morning to ask about the conspicuous pricing and didn’t hear back. The price was later cut by $3, to $490,000, and is listed as pending.
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