What The NAR Settlement Means for Real Estate Agents
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So you don’t think listing agents are still gonna take five and 6% commission listings after this. Why would a listing agent lower their commission if they’re gonna have to do double the work work with the buyers?
Because once a few sellers do it at 2-3%, it’ll be a chain reaction and if you don’t adjust yours, they will go with another full service agent who is getting deals done at 2.5%. Same reason you can’t get 8% now.
Great answer to a great question 💪
@@RickyCarruth y’all are agreeing to be poor. Fools.
So, Agencies like Just 2 1/2% Realty might be the catalyst to make this a thing. Kinda like a “yardstick ” that other Agents from other Realities will adjust to…
Why does anyone think that NAR is gonna stay in business? They are going to raise fees for the 1 million agents and are these agents gonna pay?
The only thing I’m concerned about is when Zillow turns the switch and starts taking listings. I guarantee that’s gonna happen.
That would be awesome!!
The whole industry is going to go to automation and AI like many others, making more and more humans obsolete.
@@JimboGrace81In this business every single deal is different. Is a like 3 dimensional puzzle that can transcend into other dimensions. lol. There is no absolute way to systemize it. They are trying but is going g to back fire on them. This that is happening now although is not necessarily wrong by moral standards. It will definitely hurt everyone. The buyers, the sellers and the real estate professionals. Oh and the Realtors. I don’t understand what is so wrong with a sellers realtor willing to split their commissions with the buyers realtors for bringing a buyer and creating a space between the buyer and the sellers agent so the sellers agent can concentrate of doing good by the seller?
@@JimboGrace81
this past year I have read about different corporations downsize or sell off assets to invest & implement AI into their business.
they already tried this didn’t they? or were they only buying homes from owners? thought this had failed hard.
Many states are attorney states. Agents don’t write the contracts
Massachusetts is an attorney state – I was a broker there – agents write contracts there – offers – then the attorneys turn it into a purchase and sales agreement – in California now – we are an escrow state
New Mexico Realtors have all documents from New Mexico Association of Realtors (NMAR). We are deemed transaction brokers no agency. The state is non-disclosure.
I love your mindset on being positive! If life gives you lemons, right? However, I disagree with your thoughts on prices. If less people can afford to buy a house even more than the market is right now, that’s going to shrink the buyer pool even more. Supply and demand will take effect. While I am going to focus on the good and crush some listings, this is a sad day for the consumer.
Great. Let’s go. I also wonder what type of pivots Mortgage Lenders may make. Will they come up with Loan products that allow for Buyer’s Agent compensation to be included in the loan….. This is interesting. I am already a Listing Agent so I will need to double down and identify more training on the implications of this new model. Thanks Ricky
Most likely there will be some sort of mortgage reform. It’s already brutal for buyers to purchase now. And now they’ll have the shop for a cheap rate agent and also wrap the buyers agent commissions into their loan that they barely qualify for. All of this sounds horrible. 😢
This is how its done in the commercial real estate industry. The market will adjust appropriately. Buyer’s agent commissions aren’t going away. It’ll be wrapped into the purchase price or rolled into the mortgage payment alongside closing costs. You’ll see a lot more buyer’s agent require exclusive representation agreements with clauses that stipulate a buyer is to cover their commission if the seller does not. Again, that cost will be wrapped into the total closing costs.
In PA we are required to sign an exclusive BA agreement. The commissions already were enrolled in mortgage. Buyers deserve representation and if they can’t pay cash and the seller gets more net for not paying buyer commission that’s unfair and descriminatory.
How will lenders roll those cost into the mortgage payment because the house will only appraise for x.
@@albundy3929 Mortgage payments consist of principal, interest, and any associated closing costs (not paid at the time of closing). Appraisal is only tied to the principal portion of the loan. The commissions could likely roll into the total loan amount.
@@nicklaessig appraisal is based on the “principle” plus commissions because in residential real estate commissions are factored in the “principle” 🤦♀️
@@MariaKoroleva.Realtor Depends on the approach used for an appraisal. Cost based appraisal will not include commission. But for the majority, yes, the market value of a property assumes commissions. The thought is that if the seller will not pay the buyer’s agent commission then the buyer will be responsible. It’s unlikely the buyer will come out of pocket 2-3% for that (in addition to standard closing costs), therefore it’ll be rolled into the loan.
Thanks for the motivation Ricky! This was great!
When the market flips to buyers sellers will be begging to get buyers and will post on listings “buyer agency plus bonus offered.” The only people who won were the lawyers.
there isn’t enough inventory in the pipeline for this to happen (any time soon).
@@carlosrodriguez-hv5px not today, but I’m here for a long time. I’ll wait….
Lol good luck buddy
Not allowed to market buyer broker compensation in the mls now.
exactly!
Listing Agents:
Get ready to negotiate the buying agent’s commission with your seller, as it appears that starting in July, it will be included in the purchase agreement.
We have had it in the California Purchase Agreement since Dec of 2022 – must it admit and hasn’t been used much – but it will be soon 😁
Sellers won’t lower asking prices just because commission system changed. They will want to pay 3% to listing agent and pocket the 3% buyers agent’s commission
In CA, never seen it@@gregboudreau5778
Yup exactly @@michaelvargas2005
All the people saying “great, agents have been screwing us all this time” you should know that this change reverts the industry back a few decades. The reason it changed into what it is today is because people just like you felt they didn’t have enough representation when buying homes so they started bringing lawsuits to real estate companies who represented the seller. So for decades homes have been selling faster and buyers have had more representation during the process all while significantly reducing the amount of lawsuits for misrepresentation by buyers. It will take longer to sell your home with these changes, you’ll sell for less most likely due to less offers. The current system is the absolute best for all parties. It’s the most efficient because of the law of supply and demand. You put thousands of agents to work for you by incentivizing them to bring you a buyer. Pay them $0 and see how many buyers they bring you.
Everything that happens, happens for a reason.. the above you said is probably is what is needed to shake up the sellers and make it a buyers market eventually.
Church!!!
Agreed on everything you said. Only part I didn’t was that homes will sell for less – In the Bay Area, the demand is through the roof and supply is still historically low, the supply won’t be catching up to the demand for a decades. Prices won’t change here to due to this.
Nailed it!
@@MrBayAreaRealEstate Agreed! Cash offers and unrepresentative buyers (a new majority I’m sure) will continue to drive prices up. Here cash buyers outbid financed sales on the left on the right all day 10-20% over asking with zero interest rate, working class will take the hit once again. The market will get even more stagnant and we all get a bad reputation fighting for sellers with more sellers going on DNC and DNM lists.
Exclusive buyers agreement is great until they close and don’t have the money to pay you .
Bingo. It’s already started to happen to some of my colleagues.
Please elaborate @@brianfitzrealty
so true! Also the buyers who think we get paid to be tour guides…..and not purchase.
Not to mention the nay sayers who say to pay agents an hourly fee? That’s not going to work either.
@@JaredNealeRealtor I think that having a retainer is a great idea for buyers……….,months of work then they show up at the inspection in a brand new car….lol
Exactly or they will simply cut you off and then lawsuits like the commercial side
Them: “Can I see the house today?”
Me: “Yes, if you have an agent. Our seller doesn’t want unaccompanied buyers just walking around their property.”
You need a new script. Become their agent genius.
@@albundy3929 he was referring to unaccompanied buyers who don’t want to pay for an agent
Me: OK , Ill call your seller and tell him you wouldnt show me the house.
Seller: Hey Nick, youre fired
So you’re asking a listing agent to do the showings too?
don’t agents love two commissions in one transactions? if you state doesnt allow dual, then you have a referal partner to represent them. did i really have to say this@@JannelleCT
I personally don’t like the idea of forcing my buyer to sign an agreement. I prefer to let my service speak for itself. But I honestly don’t see Sellers NOT offering a buyer commission either. And I don’t see how Dual Agency would work with the fiduciary & confidentiality components. Will we see a surge in facilitators?! Interested to see what the new norm is.
I don’t work with a buyer unless they sign an agreement exclusively. I’ll meet with them one time with no agreement and show a house just for the face-to-face meeting, after that, they wont see or hear from me again unless they sign exclusively. Too many buyers in the Bay Area who believe they can manipulate others, multiple agents at a time, to work for free.
Buyers will want to cheap out your great service. That’s for sure.
Yup, they already try to out here. Even sellers do as well. Had a listing appointment last week and sellers now want to try and sell themselves just for the sake of saving 2.5%, even though the seller net sheet that I had drafted from my escrow colleague shows they would be netting over $1.5M hah! They are worried about 2.5%. @@michaelvargas2005
I think that we will see a lot more flat fee listing prices to cut out the higher priced commissions….and why shouldnt someone? I mean it’s worth it to me to list 20 houses for 5k flat fees, than it is to sell 20 @ a % rate.
What about condos at 130k? That’s too steep.
Looking forward to seeing local associations backing out of NAR.
So as listing agents do we charge buyers for showings on our listings? Do we charge them to write the contract?
I would say, let’s charge them the tipical comission split just as transaction agents do.
Agent here. I dont think people realize how this is actually going to backfire on sellers and buyers. Very interesting on how this plays out.
I agree this is interesting. I’m not afraid however I do realize how the cure system help move properties.
Sounds just like the taxi companies warnings about the perils of Uber and Lyft. Anybody here miss taxis? I sure don’t.
Most agents need to think about a new career path. The “agent” role will join the ranks of milk delivery, diaper services, telephone operator, and web designer.
@@joepetreng471 You’re not an agent so I understand your ignorance.
Real Estate is a very lucrative business. But if that’s your opinion, go ahead. Everyone is entitled to their own.
@@joepetreng471Respect your opinion. But it’s clear you aren’t an agent 😂😅
I agree 100%
buyers already pay both sides of the commission because sellers built commission in the sale price.
So, this change won’t make buying cheaper to buyers, if anything it will cost them even more.
ABSOLUTELY! THE MONEY IS WHAT MAKES THE HOUSE WORTH ANYTHING! The buyers have the money, the sellers have the house. Why change an efficient system that pushes the sale of the house, and has ton’s of realtors wanting to push the sale of the house.
*The corruption that runs through this administration is getting more scary. I feel for people with disabilities not getting the help they deserved. Anyone who is not investing now is missing a tremendous opportunity. Imagine investing $2000 and receiving $11,300 in 4days.*
How can we generate more revenue during quantitative times? I can’t afford to see my savings crumble to dust.
Getting Yetta Cox to help me really helped me clear all my debts. I started with what I have left and it’s been the best decision I ever made.
You’re right! The very first time I tried, I invested $1000 and after a week, I received $5,500. That really helped us a lot to pay up our bills.
I am grateful to her. though I started with as low as $1,500 actually because it was my first time and it was successful she’s a great personality in the state..
My financial status needs growth, how do I contact her please???🙏
Don’t forget this is also a proposed settlement that won’t won’t be accepted by the courts anytime soon
As a former Real Estate appraiser, I have learned that for the most part, you over value your position in the transaction.
That’s why your a failed appraiser
How?