How to structure your listings post NAR settlement changes
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Lets START w/ the COMMISSION LAWSUIT & end with a HEATED PROSPECTING DEBATE
BUYER AGENT Commissions To Be DECOUPLED By DEPARTMENT OF JUSTICE
Mano Kamgang
Queue the angry buyer agent comments
I’m still using your original model for compensation. I just changed the language from us paying the buyer agent to the advantage/disavantage of paying a buyers agent. Everything else remains the same.
I agree. I have always used that model, so there is nothing to change for me.
My market in Vegas started aug 1st with the new setup
Excellent breakdown Brandon as usual, thank you for this. And I should know this from watching your videos but what market are you in? I’d like to refer to this video & explanation for our broker meeting next week.
Our MLS is broker and not board owned so we have been instructed to inform sellers that offering buyer’s agent compensation is optional. If they opt out, we just check off no compensation. However, trying to do business without a buyer’s agent is like trying to clap with one hand.
Where in this video did I mention doing business without buyers agents?
@@BrandonMulrenin Nowhere. As it should be.
They want to opt out in the beginning but will they deny a reasonable offer with a buyers agent requesting their commission to be paid by the seller? Probably not…
Someone has been paid by the NAR….
Who?
Well thought out. Although I don’t agree with everything you said, I agree with 95%. Your logic is sound. Appreciate you diving into this topic. Thanks, Brandon.
It’s just what’s happening in my market. It’s no longer my opinion.
Interesting take. Sitting with my sellers I’ve been setting expectations. I’ve had two upfront say they won’t pay. And for my buyer clients, most are shopping for homes they can afford. And for many first-time home buyers, adding my commission reduces what they can potentially “afford”. Which just means on the buying side I have to be that much better and negotiate my value.
– Sirrom Alizem
Bay Area California
In NC the offer to purchase contact can NOT even mention agent compensation. We now have a separate buyer agent compensation form that all parties must agree to and sign BEFORE an offer is even submitted.
Before all the buyer agents make their arguments, remember, this video is about representing sellers and being their fiduciary. I’ll make another video about representing buyers.
I would be curious to know your thoughts regarding the very real possibility that a buyers agent compensation will stand between the Buyer and their dream home? This would crush the relationship between the agent and their client. I want to be paid fairly and I would hate to see my paycheck be the reason they can’t afford the home they love. 🫠
Thank you Brandon. This video helped me visualize how to structure my listing this weekend. I was going to intitially suggest to the seller an amount to offer a buyer’s agent if they ask, but the way you out it makes sense.. It may not be in the sellers best interest. They did agree and are open to compensating a buyers agent
I 99% of the time agree with you Brandon. But saying that this changes the net to the seller, or at least the expectation, would suggest that you never calculated the net to that seller under the previous model. Either way, I think this move is good for those who can communicate their value on either side of the transaction. Great video as always!
We’re just seeing a lot more buyer agent commissions, less than 3% which we have not seen ever in my market. This is how we are impacting the sellers net.
I’m not a buyers agent lol so it’s not that important to me. I agree with everything you said except I think buyers agents are going to get their commissions cut in half due to this.
I just don’t see buyers caring that much to stick up for more than 1% commission or 2 at the most.
This is why listing are king. If you want to get paid. Be a listing agent.
Thanks for the video!
What a great video 💯 Thank you Brandon!
New way: Listing agent earns whatever they can negotiate for themselves from their principal. Buyer’s agent earns whatever they can negotiate for themselves from their principal.
In time I believe this will be the way. Only the strong survive….
I think many will go directly to listing agent in the short term.
I have seen no buyers comp and I’ve seen buyers and sub agents comp. In all it will work out. I’m not gonna stress the my brain😂😂😂. Brandon wonderful explanation. I’m ready for the buyers negotiations.
You nailed it. I’ve been saying it should be this way for a while now. I don’t think the seller needs to establish a buyers agent compensation from the outset. I would suggest to the seller, when I give my listing presentation, to not establish a co op and have the buyers put it in the offer. I feel that this will make it easier for the sellers agent and the listing presentation. Thanks for this video. Denver Colorado.
I’m ready for the buyer side breakdown! This vid was extremely helpful!
Read this anecdote and you’ll get it: back in 1986 as I sat a builders trac sales office, a well known and highly regarded agent brought her buyer in to see my models. At the end of the tour she whipped out her purchase agreement (not mine) along with her “requirements” for compensation and the free upgrades we were to add for her buyer! When I hesitantly presented the offer to the builder/seller he said to me “give her whatever she asked for because she has done all of her work preparing a strong offer and a fully prequalified buyer”. I learned that Her reputation as a professional and expert buyers agent carried the weight needed to assure the seller a solid sale. Let’s all do that!
That was amazing. Thankfully our MLS opted out of the settlement, but there’s so much I picked up from this that I’m going to start applying today.
What is going to happen when buyers that are tied down to these longer term brokerage engagements that get pissed because the lost their dream home because they were unable to negotiate a buyer’s broker compensation? This is only the tip of the iceberg of lawsuits we are about to see just off this one settlement.