NAR JUST SAID WHAAAAT ABOUT STEERING?
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Ricky Carruth 💎 Real Estate Broker, Coach, Investor, Father & Husband! He travels around the county with his amazing wife & daughter speaking on the biggest stages about real estate & success.
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The language in our new buyer agency agreement in NJ gives the buyer the option to opt out of seeing homes where they have to pay above X commission out of pocket.
would you be willing to share that section/para/clause. Great option to add
So true Ricky! Buyers will steer themselves. If two identical units are for sale and one of the listings is offering a commission to the buyer agent, that listing will sell faster bc the buyer isn’t going to voluntarily pay their agent a commission. Buyers will steer themselves.
That’s exactly what I was going to say. I’ve been showing homes at 0% because buyers have signed my buyers agreement.
Buyers have been voluntarily paying commissions in the listing price!
@@realtorjuanita sort of, indirectly. The seller is the one who signed the listing agreement with the listing broker who pays the other side. If the funds at the table are not enough to cover commissions, the seller has to bring it. Seen it several times in the 2008 years… not in short sale.
Yup.
@@SusanLowesRealtor Bottom line is that the buyer has been paying for both sides of the commission in their loan, otherwise the buyer and seller would individually pay their broker/brokerage from their own funds. Paying for both sides of the commission in the loan also inflates the home value. Why should a buyer have to get a loan that includes both agents commissions, if they can pay for their agent’s commission outside of the loan or only their agent’s commission in the loan. The same could be said for the seller, therefore lowering the purchase price. Lots to think about in the coming months.
I don’t understand how a world where less transparency benefits any buyer or seller. I am glad to meet with a buyer and get employed, but I don’t think that the buyer’s agent fee being offered by a seller should be obscured anywhere. It should be clear and transparently shared.
Correct, but they have to bastardize the system to support the conspiracy verdict and make it appear that sellers are not paying the buyers agent.
How are CMAs done now, since we will not know if the price included buyers comp 🤔
The fact that the commission cannot be anywhere on the MLS where will agents find out what the commission per home is? Will the brokers have a separate web page where commissions will be posted? Calling each agent to ask will be a nightmare.
Maybe we’ll help us all get along more by talking to each other more
@@nevasellsrealestate majority of the agents don’t pick up their phone.
I always call agents anyway about the houses. So maybe now, the agents will pick up the phone 😅
What I’m wondering is if when we are researching comps to get this data, will the mls have the info on what commissions were paid after closing?
Good question. Im sure appraisers would appreciate not getting screwed inadvertently out of this mess.
They need to. This is wild
This is so stupid you all need to quit NAR
Think through this scenario… You take a listing, a buyer without an agent asks to view and then make an offer on the property. They refuse to pay any buyer compensation. Are you as the listing agent going to work for free and help the buyer write a psa and complete the transaction? Are you obligated to?
If you want to get paid you will. You’re the listing agent, you only get paid when the home sells. So tell me, if that’s your one offer, what are you going to do?
Could you go over that possible scenario with your seller upfront at listing agreement signing to get an extra x% if you assist the buyer as well? Someone that’s already seeing your value as a listing agent would want you to be compensated for additional work.
@@k0cab the seller is back to paying more commission in that scenario. May as well offer the buyer commission upfront and get more offers.
My listing agreement states upfront what the seller owes me if I have to pay another agent , if I bring the buyer, or if the seller brings the buyer. No surprises.
NAR has left the chat
I’ve been calling it economic steering since the settlement came out but no one thought it would happen. Oops…
We gone be alright.
The settlement is such a JOKE!! CLASS ACTION ATTORNEYS ARE CRIMINALS.
That’s who won 🤦🏾♀️
They are and they make a killing! Look it up! There are even documentaries on how these class action lawyers work – no comparison as to how agents works
NAR is a laughable collection of clowns. The plaintiffs had no idea how this industry operated and they, and every seller who ever thought they were going to save money on their listings, is going to regret the day this was ever started.
“What we do now is worth more than the amount of money we get paid.” 👍
It’s getting crazy…it looks like with all these changes they are trying to create a market crash…here in Maryland they just passed renter rights where the security deposit is limited to the 1st months rent.
Best explanation I’ve seen on exactly how screwed up this settlement and the ultimate new rules are going to be for our industry.
– removes transparency
– creates real steering
– confuses the consumer
– frustrates brokerages
Real question…. Why can’t we have our buyer client sign a waiver/disclosure stating they do not want to pay any commissions out of pocket and do not wish to see any properties where the seller isn’t paying their buyer agent’s full commission agreed to in the buyer rep agreement. Wouldn’t that eliminate any possibility of buyer agent steering?
Also….why not have different versions of buyer rep agreements with the same buyer client? The only difference is in the BAC.
And finally…. If the buyer rep agreements can be amended…..NONE OF THIS EVEN MATTERS!!!
There’s a big difference between a listing agent advising a seller of economic abilities of buyers in certain markets and price points to pay agent compensation and saying “you better offer compensation or else nobody will look at your house.” One is exactly what we should be doing and the other is why we got sued and lost. The nuance in that matters and is important. The FAQ is clear that you can advise sellers on how buyers may react to different compensation models. But you can’t say, “offer compensation or buyers agents won’t show your property.” This was at the heart of the lawsuit and agents need to understand this.
Agents need alternative MLS and break up the NAR monopoly.
I must work in la la land…. I have worked with buyers and sellers — did many relocations for a large Bio Tech company — never in my years did I see STEERING… commissions were factored into the sales price which was fully understood – so in essence BUYERS were paying their agents commission as it was included in purchase price…. I never once did NOT show a home that had a say 2% commission when standard of market was2.5%. . I never once saw a group of realtors having a COLLUSION meeting… The MLS MADE the commissions transparent…. Now its a “behind the scenes” with phone calls to listing agents—. Who is to say what those phone calls will disclose??? The are fixing what at least in MY market was NOT broken. And BTW multi million dollar homes MOST OFTEN HAD NEGOTIATED COMMISSIONS ALREADY!
Ricky, your insights have shaped my real estate journey immensely. Your focus on relationships over transactions is transformative. Despite NAR’s changing rules, your adaptability shines. You should lead as the president of real estate agents, representing our needs. Thank you for everything!