Lawyer Reviews EVERY Change in the NAR Settlement

[@TheRealEstateLawyer]

Seeing a lot of first-time visitors on this one! If we haven’t met yet, I’m Tiffany, a Real Estate Attorney from North Carolina. I’ve got some more videos coming about these changes. Would love to have you subscribe!

[@Detached_AZ]

DONE and I'm not even in Real Estate, but an "informed citizen". Thank You Tiffany

[@RichFlemingRealtor]

Great video! Do you do your own video editing? Looks great!

[@TheRealEstateLawyer]

@@RichFlemingRealtor gosh no. I have a marketing team.

[@joeyloprete]

Subscribed! I just got my RE license just in time for these shenanigans! Lol

[@InvestingWithAdamK]

Hi Tiffany. I’m Adam. Thank you for posting the video

[@rickchumsae7974]

27 year Realtor-Broker here. Tiffany, you and I share the same dark cloud worry about unrepresented buyers. It is not just a worry but it is sure to become a reality and maybe even the norm for future US residential real estate transactions. In a twisted way, it will probably become something of a boon for lawyers because the new rules will just as surely bring more lawsuits as the certainty that fewer buyers will be represented. Thank you for your insightful summary of the upcoming rule changes.

[@user-xc7iq4cm8t]

we already have enough dishonest, compromised lawyers. They’ve been given much too much power without oversight. Our Land Records reveal everything

[@brianbelgard5988]

If your value can’t survive telling your customer how much they’re paying you, are you actually providing any value?

[@rickchumsae7974]

@@brianbelgard5988 That is not the problem at all. My point is many buyers are hitting their limits on cash-to-close to include down payment on their loan, title company fees and title policy costs, and loading up their escrow accounts. Adding a commission to pay their buyer agent may not be feasible.... even if they see the value of representation, which many buyers fully grasp. Sadly, one roadblock in presenting our value is a seller's or buyer's prior experience with agents who have not done a good job.

[@rickchumsae7974]

@@brianbelgard5988 If your doctor, or lawyer, or auto mechanic, or priest spent too much time justifying their existence, would you be just a little worried? We are sure they are providing value, but just how much and how much will it cost me and how good are they? In short, it is a rathole one does not want to go down.

[@tinasmith8241]

Agents all try to make buyers think it is difficult or dangerous to self represent...absolutely false. It is easy to do and all the years we sold/bought FSBO it was much easier and less confusion. Going through a middleman (agent) always, always, always created problems with miscommunication for our transactions. Agents often lie or leave out important information so the buyer does not back out of the sale. Getting accurate information was like pulling teeth.

[@LucasBenjamin-hv7sk]

People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.

[@leojack9090]

The government will have no choice but to print more notes and lower interest rates.

[@LucasBenjamin-hv7sk]

@KarlyNoorda this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

[@fadhshf]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@melaineanderson6022]

Smart Selllers will continue to pay a market rate

[@wealth53]

I do not think this will influence prices in the long run, seller always wans to get the most, the balance was to have agent buyers protecting the buyer negotiating, but with this law, less agents will want to be on the buyer side, so that representation is basically gone, at least for now.

[@carriew92]

We have been desperately trying to buy our first home for years. We finally have not only good credit, but great credit. We have a solid downpayment that we saved up throughout our entire 20s and early 30s. JUST WHEN we are in a good position to try pulling the trigger again in this market after Covid already moved the bar further away, the rates went back up above 7% and NOW we have to pay our agent commission too….That’s even more money that we now have to scrape up just to get our foot in the door. The asking prices are crazy. And we “make too much” to qualify for a FHA loan or first time home buyer grants. Combined we make $121,000 without OT. If this was 2019 we would be looking at getting a modest middle class, decent, and safe home in our area. Today, we are stuck with resorting to these horrible properties in unsafe neighborhoods with minimal land that are located in horrible school districts. The bar keeps moving and it’s breaking my heart. What was the point of all of these years of sacrifice and saving?? We wanted to provide a stable and middle class life for our future kids. So we have been waiting to have them. It feels like that dream is gone.

[@girlonlaptop]

Even if the seller paid the commission before in reality the buyer pays for everything so you aren't actually paying anything extra that you would have in the first place.

[@lanialost1320]

You don't need to use a buyer's agent. Just take your offer straight to the listing agent. That's the way many buyers already bought their homes. Virtually every country in the western world has NO buyer agency involved in a home purchase -- the real estate process in USA is a giant money-milking con! Glad it's been dealt a kick in the teeth. In the UK, the commission at close of sale is typically 1% TOTAL, with NO buyer agent involved at any stage of the sale.

[@brianbelgard5988]

You have always paid your agents, they just have to explain that now.

[@egc04]

@@lanialost1320 if you dont know anything about houses you can always hire a property inspector your buyers agent doesnt always have your best interests in mind he wants the deal to go through so he gets paid

[@dinabraun8706]

@@girlonlaptop correct. it's in the price of the home.

[@rapp-in1mz]

My dividend journey began when I realized that two particular expenses in my budget were always going to go up and never go down. The two expenses were taxes and insurance. I realized that the dramatic rise in both will need some added income. So, I started buying shares paying dividends. I can now see that this will be the path I need to take to make sure those two expenses will not overtake my future income.

[@rapp-in1mz]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.

[@rapp-in1mz]

Thanks a lot for this recommendation. I just looked her up, and I have sent her an email. I hope she gets back to me soon.

[@rickkinne7433]

Thank you for doing this. Us Realtors appreciate you taking the time to do so...

[@TheRealEstateLawyer]

Absolutely thanks for watching

[@INOV8RealEstate]

Absolutely the best and most complete understanding if the Nar settlement.

[@TheRealEstateLawyer]

I sure hope so. I'd be a pretty terrible attorney if I couldn't interpret a legal document well. 😁

[@kentzotter]

As a practicing real estate agent in NC, I would appreciate you producing a video that would walk us through, from start to finish, how a transaction might flow under the potential new rules. Your service to the Realtors of NC is very much appreciated. As a BIC, I recommend that our agents use your KZbin channel as another resource for sound real estate law and interpretation. Thank you!

[@bbanks108]

Amen

[@TheRealEstateLawyer]

Once the NC Association of Realtors gives their recommendations and guidance, I will for sure make this.

[@mr.medina4967]

Again, how can you agents understand anything when you are asking KZbin to tell you how to do your job? Please educate yourself. This is why a lot of you will end up quitting the field. You have to be smarter than the next guy.

[@bobmatrix1]

I'm a realtor in NC. I've pieved together most of this from other sources but this is BY FAR the best, most comprehensive, and well laid out source of information. Thank you so much for doing this. I really appreciate this video! In North Carolina this is so much of the stuff we already do in practice. It's frustrating to think this is to increase transparency. Removing compensation from the MLS seems to me like the opposite of transparency. While I understand the not allowing for compensation over the agreed upon amount I do think this will work to standardized compensation because agents will not want to miss out on the extra percent so they will most likely write compensation to the highest they can get away with. Once again I really appreciate this video it is by far the best video I've seen on the subject. However I don't think this judgement will help the industry with transparency like it seeks to do.

[@YakMotley]

It is more about the vagueness and problems caused behind the intent of the settlement. The lower end buyers will be without representation. It is now a pay to play world.

[@TheRealEstateLawyer]

Correct

[@Master35320]

Unless we can start allowing buyers to finance their agent fees and change the rules for VA buyers.

[@harrydestaffano565]

Do you really believe a buyers agent represents just their buyer? In my opinion NO they do not because their commission from a sale generally is the ONLY way a buyers agent is reimbursed. A buyers agent has, in my opinion, an automatic conflict of interest ....the buyers agent wants his/her thousands of dollars commission so the buyer is on his own. Before showing a home the Buying Agent will I believe need a legal document signed by the buyer agreeing that they should receive a specific percentage of the purchase price, or a specific amount of money, from the proceeds upon the sale. Not only that, the seller will need to agree in writing to that too. This all needs to be done before showing the home. Maybe the selling agent can have his/her seller agree to allow him/her to sign for the seller, but why should a selling agent agree when he can sell direct. Selling agents I think are going to be competing with more brokers for each and every listing, driving their commissions down. In my opinion the number of realtors is going to fall dramatically and quickly.

[@harrydestaffano565]

@@pia9343 Why should a buyer use a buyers agent? For thousands of dollars maybe tens of thousands, what does a buyer agent offer, especially when they have a conflict of interest because they only get paid if a sale is completed?

[@TheRealEstateLawyer]

@@CeruleanSky1111 Possibly. BA has a choice of what they'd like to do...it will be interesting to see the models that come from this. Sure, a buyer can go unrepresented. Already happens. It's usually a painfully difficult transaction.

[@heybrowhatup]

I’m in California and practice commercial real estate. I started in residential and noticed NAR sold old out their members years ago when Zillow, Trulia, etc. we’re on the rise. Other than the MLS and purchase and other forms, there’s no reason to be associated with NAR. And that is where the problem lies. Residential agents all use the local association forms because they are all familiar with them. The solution I see is form another association and create new standard forms and MLS.

[@heybrowhatup]

@@albundy3929 what’s your alternative?

[@heybrowhatup]

@@albundy3929 There are 3 reasons Agents continually waste their money on NAR: 1. Their Broker forces them to. They can't do that now, but they can still terminate their relationship with the Agent. 2. It's the only way to gain access to the MLS and the contracts. 3. The ability to call themselves a "Realtor". I do commercial real estate and it's the wild wild west. Nobody was forced to belong to organizations and we don't have to rely them supplying contracts. We can purchase contracts without being a part of the organization that supplies them. This is the problem I see for residential agents as they are trapped staying with NAR. They don't want the hassle of creating contracts and all the disclosures for their transactions.

[@eliterealty3771]

100% agree

[@ryan_hakes]

The DOJ and these greedy attorneys have disregarded WHY Buyer Agency Representation cane about in the first place. Remember the days of Let the Buyer Beware? What about Low income buyers, FHA buyers, etc. The News and these greedy attorneys are telling them they are going to have to pay for their own agency representation and if they can't afford it and the seller refuses to help ... oh well, let the buyer beware. Sellers who refuse to share will simply have their homes sit stagnant on the market with high days on market and will end up with price reductions equal to or surpassing the amount they think they save refusing to offer compensation not to mention if those sellers need to buy another home they will need to pay their buyer agent fee? Would that not be a total wash? Who benefits from all this? The attorneys and plaintiffs who used Realtors to sell their homes (which sold thanks to the agents). Who loses? Homebuyers who already have been abused by the corrupt federal reserve international banking cartel.

[@user-xc7iq4cm8t]

So true. The amount of unlawful dispossessions stemming from fabricated, forged documents fabricated and forged by law firms and attorneys. These docs are filed in our Registries across the country and used for the sole purpose of stealing homes.

[@raew3655]

This is the most comprehensive video that has been made. Very informative. Thank you!

[@mariacristinacarvalho6904]

What you say about how transactions flow depends on the quality of the agents is absolutely true. Thank you for mentioning that. Right now I have a difficult transaction just because the other agent is terrible. He ignores emails and messages, react too late creating problems that would not be there if he knew what he was doing. I wish the clients of this type of agent knew the damage they bring to their own clients. Thanks for the review!

[@TheRealEstateLawyer]

You’re exactly right, we see it all the time in our firm. So many avoidable issues.

[@HilltownClips]

Lets be Honest . Anyone with a brain or who doesn't like to lie knows that the real estate game is extremely prejudice. It's racist. has nothing to do with skill more to do with who The buyer or seller likes and want to share their money with . Most likely it will be with a white person because they own the most real estate. That was purposely done a long time ago.No need to lie about that or ignore it... So I can see the only possible positive thing Is the mandatory buyer's agreement that way A buyer can't get all the information from one agent and then go work with another one ,because they like them for whatever reason.

[@missylearned9821]

I’m confused about the practice changes in section 58 terminating in 7 years. What happens after that point? Things revert to what it is currently? What’s the point of all this then?

[@BobJohnson648]

Right...this was not explained

[@jon9103]

I think it's not known, all we know is that NAR isn't obligated to follow the agreement after 7 years but that doesn't mean they will want to go back completely. My guess is they will end up somewhere in between. One thing they will likely keep in mind is that if they aren't careful, they could end up getting sued again.

[@BobJohnson648]

@jon9103 Local, state and national Realtor dues were about $700 annually when I retired in 2018.

[@caitlinkirk6297]

They are laying ground work for the big corporations to take over the market and the mls to become irrelevant as well as agents in general. The government is not your friend.

[@kevinrushton2906]

Great explanation, I have watched many and this one is a lot more clear and direct to the points then most.

[@michellesilverman4969]

Excellent video! I’ve been a realtor for 16 years and I’m not excited about some of these changes. Thank you for simplifying everything and explaining it so well! I really appreciate your video! One of the best I’ve heard!

[@elizabethandrews4199]

NAR needs to buy a lot of ads educating buyers the value of an agent.

[@istandcorrrected2661]

NAR committed suicide!

[@dinabraun8706]

@@istandcorrrected2661 representation was not good. It's going to cause more law suits when sellers can't sellers will complain against agents not showing based on commission again. UGH!

[@waynethompson1461]

Can you have open houses or do you have to stop them at the door to sign a buyer's agreement since you can not show a house without it? Unfortunately lower income/ first time buyers and people trying to sell a home will be hurt, hurts fair housing.

[@1985youngdre]

An open house is just that, an open house. You don't need representation to view the house. It's often used to capture a buyer. Where a buyers agreement is needed is if a real estate agent is searching out properties and actually opening the door that you don't have access to. Hope this helps.

[@melaineanderson6022]

@@1985youngdre disagree, an Open House IS a 'showing'. The listing agent can't show the home without a buyer's agreement. Yes, the buyer will have to sign at the door or go away.

[@1985youngdre]

@melaineanderson6022 I disagree because I have hosted many open houses individually as well as with my team where neighbors, potential clients, friends, family, and mortgage officers have came in to view the house without having a buyers agreement signed. An open house is designed to give property exposure as well as get potential buyers.

[@jackwilson3121]

I retired 5 yrs ago after being a Realtor for 40 years. I am glad I am out of the business.

[@jonlj77]

So tell me from your perspective do you really think it’s fair that your fellow American pays $18k of there hard earned money on a $300k house to a middle man?

[@vitalikv1984]

I am glad you retired. Changes always scare weak professionals. We need less of those in our industry

[@augustoliver2779]

You are lucky. Younger generations are struggling. This is another example of how life here in the USA is becoming harder for all.

[@paroffice]

​@@jonlj77it's all negotiable, but I've netted my sellers and fsbos more than what they would have realized. If it wasn't for our guidance, sellers unknowingly leave a lot more on the table than they thought.

[@megansullivan9377]

@@jonlj77yes. Just like anything, it costs money to do business.

[@Dave-zl2ky]

As a potential buyer, I suggest using an agent and subtracting 3% from all offers made.

[@dhanvantimoore8365]

I've been a broker since 2008. I've been preparing my agents for these changes for 2 years. Not that I saw these specific changes coming but I felt agents needed to add other lines of business to their services. We're all so glad I took these steps so they'd be prepared for these shifts.

[@ShelliStinson]

Excellent explanation. I think its important to also emphasize that this settlement does not mean NAR has done anything wrong.

[@RobertKnauerUnfiltered]

THANK YOU for making this informative settlement, as I know there will be SO MANY agents that are naive or not-knowledgeable about how to operate going forward.

[@marthamaclin-reynolds9328]

What about first-time buyers who are short on funds. They barely have the down payment???

[@dpky7333]

Most definitely agreements will be worded in such a way that commissions are rolled into the price of the home so it can be financed much like when a buyer rolls closing costs into their offer. Only time will tell if banks and appraisers play along.

[@sandralenins4094]

@@dpky7333 The only way that Buyers "roll closing cost " into the price of the house most of the time today, is to offer more than listing price and ask for the seller to pay the closing cost and hope it appraises for that extra money. Banks are not going to make loans for more than a home is worth.

[@LetsTalkMortgagePro]

Excellent video and description of the settlement. Thank you for this. I agree. Most of this isn’t a huge shift it comes down to agents educating and disclosing.

[@Yourdreamrealestate]

Great info, thanks for explaining it, I loved the part about relying on uncle Jim's experience instead of hiring a Realtor.

[@rojo9954]

Nice job , thank you for providing the detail on the settlement.

[@TheRealEstateLawyer]

Thank you, I hope it helped!

[@BobPenzien]

I know exactly what is going to happen. Buyers who are unwilling to commit to paying any dollar amount toward their agent's commission will not sign a buyer/broker agreement and will attempt to buy a property on their own without represention. This means buyers will contact the listing agent directly to buy the property leaving the buyer's agent without a job.

[@buyingandsellingland]

And listing agents will then have the additional legal liability of dual agency or assisting an unrepresented buyer...crazy.

[@Annd75575]

Exactly! Buyers may just pay for a lawyer if the state does not have promulgated contracts to review and skip the buyers agent totally. The sellers agent does not have to take on dual agency if the buyer represents themselves. We’ve been doing this for years on homes we buy and even selling we have had buyers just make us an offer, we accept it and get everything to our title company and close the deals. It’s been easy.

[@JCMasterCraftsman]

Or just cut out the listing agent as they should? Use an attorney instead. They don’t charge as much as realtors!

[@bobb7918]

@@JCMasterCraftsman for something as important as buying a home a lawyer needs to be involved. This law paves the way for that.

[@JCMasterCraftsman]

Yes I agree. And comparatively a lawyer for a several hundred or a thousand dollars brings value not matched by tens of thousands of dollars spent on commissions to agents. 😢

[@barryhometeam8734]

Great video!! The actual language from the agreement was very helpful, thank you!

[@TheRealEstateLawyer]

Glad it was helpful!

[@ccillo1]

An excellent presentation. By far one of the most clear and really nailing the topic from all sides. I also do agree that the buyers (who were one of the parties actually supposed to be helped here) may end up being harmed inadvertently in the process. I think the buyer agency situation should have been thought through a little better so as to ensure buyers don’t miss out and pass up on potentially amazing buyer agent representation ensuring they close on a property and helped from beginning to end, and now either opting out of that representation and or can’t afford that representation and then getting stuck along the way with no one to help them and worse case even losing a deal.

[@HomeportResidential]

Thanks for this awesome and comprehensive video on the NAR settlement! If I don't practice dual agency, and I do not wish to be a party to a real estate sale with an unrepresented party am I allowed to tell a seller that there is No requirement for them to compensate a buyer's agent but that they will have to find another brokerage to handle their sale, because I'm not willing to incur the additional liability that comes with dual agency or an unrepresented buyer? Thanks for your time, and the great video!

[@Starfish2145]

Of course you can. You don’t have to work with anybody

[@TheRealEstateLawyer]

This is a great question and unfortunately one I’m not sure how to answer yet. I think we have a lot more questions than answers from the settlement document alone. I think if your local association doesn’t address this specifically it is an amazing question to pose to your commission to get an official stance.

[@HomeportResidential]

@@TheRealEstateLawyer Thank you very much. Unfortunately, the 2 real estate agents I have seen debate Mr. Ketchmark regarding this class action lawsuit were both terrible. I wish I could ask Mr. Ketchmark one very simple question... Would he be willing to tell every single seller in his class action lawsuit and all potential home sellers across the country that having an unrepresented buyer when selling their home will not increased the liability they could face after their home sale? I would love to hear him dance around that answer. Oh well thanks again.

[@buyingandsellingland]

Why not take the listing and advise buyers that they must hire and pay their own agent? I'm struggling with this dual agency/unrepresented situation too, and would value your thoughts on this.

[@info781]

@@HomeportResidential Another person on there saying we need 3% + 3% or disaster will result. A buyer can choose to pay for a agent, and there will be many flat fee agents to help out, assuming the buyers have picked the house and the price.

[@Pidos04]

Sad that this removes transparency and we will now have these underground discussions of compensation, makes homeownership harder, shrinks buyer pool for sellers and makes an already low inventory market even lower primarily for the low to middle income buyer, FHA, VA and low down payment buyers. The codeword is CONCESSION or CREDIT. Thats the new codeword for compensation which again is removing transparency. WHo is NAR or anyone to tell a seller who owns a asset that they cannot publicly state what they what to offer an agent who brings a buyer. How does that make a seller feel about this being the best vehicle for the sale of their largest asset. This is so poorly thought through and doing the very opposite of what the settlement is saying it is doing.

[@scientificapproach6578]

Let me help your transparency. Talk to your buyer and ask them how much they will pay you because the seller will no longer pay for the buyers agent. This is so simple.

[@gabrielahiggins6965]

@scientificapproach6578 my understanding is that the Seller can still choose to pay the Buyer's agent...it just can't be stated on the MLS.

[@scientificapproach6578]

@gabrielahiggins6965 you are correct; the seller can pay for the buyer up to the amount you, the buyer, contracted with your agent. But given the choice, sellers will default to not paying for the buyer's agent. Of course, the buyer can ask for concessions, but the seller paying for the buyer's agent will not be the default. Buyers will soon realize that if they are to become competitive with their offers, they will seek out the lowest-cost buyer's agents. Ultimately, the seller paying for the buyer's agent will become the exception, not the rule. So what I said still stands.

[@samtoustube]

I totally agree with you 100%. This settlement is going to hurt consumers, both buyers and sellers, more than helping consumers in the long because most buyers are not willing to pay agents to represent them. If you don't believe me, ask around among your friends and family; you will find out that over 90% of them will say "NO" to paying a buyer's agent a commission to represent them even if you tell them that " You're worth it" like what the industry is trying to tell agents to say to buyers right now. For the sellers, they will lose dearly on the outcome of the purchase price because this settlement will eliminate a lot of buyers including first-time buyers, FHA, VA and even middle-income buyers if sellers are not willing to pay the buyer's agent commission. Currently and in reality, the buyers set the fair-market purchase price and pay for the commission, NOT the sellers. For the industry, there's no incentive for people to become real estate professionals and therefore, NAR will lose current members and fewer future members. I think NAR did a poor job of defending the industry which has been in practice for over 100 years. NAR did not do anything to protect the image of its members because they were too busy dealing with recent scandals.

[@n8n8n8n8n8]

Ditch the buyers agent. Problem solved. This will be the future, just watch.

[@Johnny_Utah]

It’s good you guys are already so honest and God-fearing in North Carolina (and I believe it!) but I’ve seen all the shenanigans listed and more in Boston and NYC. This was long overdue

[@user-yb6yq7fz1d]

In the NAR handbook, an offer of compensation IS required. "In filing property with the multiple listing service, participants make blanket unilateral offers of compensation to the other MLS participants and shall therefore specify on each listing filed with the service the compensation being offered by the listing broker to the other MLS participants"

[@cliffvictoria3863]

Won't be long until IT entrepreneurs put together websites not connected with NAR or MLSs where listing agents can post their buyer Realtor compensation offers. All I see from this ruling is more buyer/seller confusion and more complications for Realtors. Thanks a lot NAR and big RE companies. Your greed hurt the entire industry AND consumers. IMO, it's time to shake up the NAR and get some better people in control.

[@rolandawhite5609]

Wow!! just what I was thinking. 🤔 they say it’s about the Realtor, but the realtor didn’t make the rules in the MLS. It’s falls on the members. Also who’s responsible to pay the settlement in 4 years Also what about dual agency.

[@LetsTalkMortgagePro]

100% agree

[@anita34d]

I agree with your first sentence. I was thinking that myself. However, how were NAR and big RE companies greedy?

[@cliffvictoria3863]

@anita34d IMO, the big real estate companies skirted or ignored the rules and the NAR did not crack down on them.

[@anita34d]

@@cliffvictoria3863 But which rules were skirted or ignored? The NAR is nothing more than a trade association. They also lobby on behalf of their membership at all levels of government. They have no legal authority over companies or agents. That is borne by the states. However, what they do well is to encourage a code of ethics amongst their members. Only those agents who are aligned with the NAR and constantly take and pass their code of ethics classes have the right to call themselves "Realtors". If one of its realtors was found to have committed something unethical, through an investigation and review, they could be sanctioned in various ways from re-education, fines and/or expulsion. If illegality was found, they could even refer the findings to the state for further legal review and possible repercussions.

[@Annd75575]

I tend to think buyers won’t sign an agreement and will go direct to the listing to see the home.

[@InvestingWithAdamK]

Then they can’t see homes. It’s a requirement at this point

[@scientificapproach6578]

​​@@InvestingWithAdamKwrong, it's not required for a buyer to use an agent. Buyers self represent all the time.

[@InvestingWithAdamK]

@@scientificapproach6578 Not starting end of July. Of course they do currently.

[@scientificapproach6578]

@@InvestingWithAdamK a buyer is not required to work with an agent before or after this takes affect. If you disagree please provide why you disagree.

[@Annd75575]

@@InvestingWithAdamK it is not required to use an agent to list a home. Worst case someone can pay a flat fee listing service to pop it in the MLS for them. We’ve used flat fee services. $600 and it’s on the mls the same way as a Realtor would list!

[@Gainesvillerealestateagent]

I am a Realtor in Florida. How are we supposed to find out what the seller is willing to pay on a listing if it is not allowed to be posted. The settlement is a nightmare because it mat allow listing agents not to be truthful about the amounts the seller is willing to pay. When it is in writing, unless changed based on the offer, it is usually written. Now they are going away from disclosure, and not punishing the people who caused the problem.

[@melaineanderson6022]

you have to contact the listing agent and have them send you something in writing. just will take longer now. Your buyer agreement, make sure you have the buyer sign a document (drafted by your real estate attorney) that says he does not want to see any homes where he will have to pay more than x% to you

[@richardschlosser1007]

You’re not working for the seller! Why do they need to pay you at all? You’re working for the buyer. That is who should pay you. Stop ripping sellers out of their equity.

[@jasonlandrum8668]

Most likely a silly question but I am curious--- since the buyer representative (Agent) is most likely paid outside of the closing, under the change does that representative have to be a licensed real estate agent any more? If the charge is not coming from the seller and is no longer really part of the closing documentation (CD). Will this create opportunities for different types of service providers that support the buyer?

[@MsElaine122]

Souinds like I can't work with the listing agent direct?? I'm an investor and haven't used a buyers agent for years..

[@InvestingWithAdamK]

That is correct. If you want to save work a low commission because you buy a lot of property as an investor. Probably should have done that already. You’ll have a good agent committed to you. I think people do themselves an injustice thinking reaching out to listing agent saves them

[@AK47tez]

In Maryland you could work directly with the listing agent. A buyer isn’t required to have representation. If a buyer wants to be represented by a REALTOR, they have to enter into a buyer agency agreement before touring the home. The details of this may vary slightly from state to state. Dual agency laws vary from state to state, and it’s important to understand how that works in your state or the state where you want to purchase the property.

[@ErikStenbakken]

I became a broker associate two years ago. Before that, I bought over 10 properties and sold 5 (personal and investment ). During that time I can honestly say I have no recollection of any agent ever telling me that fees were negotiable on either end. That doesn’t mean somebody didn’t mention it in passing. But I have no conscious recollection of the fact that as a buyer or seller that this was negotiable. Maybe I need to be a better listener. But I certainly need to be a better explainer now. After becoming an agent I have had other agents point-blank tell me if I didn’t offer 3% commission on their end they wouldn’t even show the property. So how did we get here? This is how.

[@TheRealEstateLawyer]

More people need to read this...because this is exactly how we got here.

[@Jadorlamodebonjor]

Absolutely. A Berkshire Hathaway agent in Pinehurst, NC told me he would not bring a buyer to my home for a 2 % buyer fee - sighting 2% on a $795k home was just not enough. RIP buyers agents fees - finally you are getting what you deserve.

[@keithlehman2764]

This is the wrong take. A commission rate doesn’t need to be negotiable by any agent in particular. A listing agreement and/or buyer agency agreement simply contractualizes the terms of compensation. An agent has the right to stipulate how much money they are willing to work for. (Sometimes the negotiation looks like this: Seller: “what’s your commission rate?” Agent: “6%” Seller: “will you do it for 5%?” Agent: “no”) Are we going to sue attorneys and doctors because no one told us their fees were negotiable? This hurts the sellers as much as it hurts the buyers. If a seller is unwilling to pay the buyer brokerage fee, they will have a much smaller pool of buyers, which creates less competition and ultimately less offers and lower offers. If sellers want to have their cake and eat it too, home values in the US just lost 3% of their value. This is because a buyer who would have previously paid $200k for a home wherein they had no out of pocket expense for representation will now only value the home at $194k once they factor in the buyers brokerage fee. Dumbest lawsuit ever.

[@Jadorlamodebonjor]

Interesting , that’s exactly why the DOJ is saying commission should be negotiable. What ever was published in in secretive MLS was in in fact CARVED IN STONE. Agents were mining the data base and showing only those homes that met THEIR commission standards.

[@mikesmith1702]

spoken like a real life realtor@@keithlehman2764

[@bobnye5459]

Thank you Tiffany. Very well laid out presentation that is clear and articulates what the NAR settlement entails.

[@jennifernodine8781]

Thank you for providing such a clear translation of the settlement. I share your concerns that FTBs are going to be the most harmed.

[@marcschneider2052]

I have a question. I am Goosehead insurance agent from NY and I do a lot of homeowners insurance for closings. If the seller and his agent already have an agreement on compensation set up prior to finding the buyer, and the buyer and his agent now also have an agreement prior to finding the seller, then what happens if the two separate deals aren’t congruent? If the seller has already agreed to pay 6% and the buyer has an agreement to pay his agent say 2%, then shouldn’t there be some ability for the seller to change his compensation arrangement? Maybe I’m not understanding but the mechanics going forward seem a little awkward going forward if sellers can’t communicate the available compensation to the buyer going forward. Does my question make sense?

[@suziespurdis869]

That is a question I would like answered as well.

[@simi72100]

I was told buyers agent has to call sellers agent and ask what they offer

[@marcschneider2052]

@@albundy3929 So, if the agreed sales price of the house was $500,000, the buyer’s agent would only get $10,000 and the buyer would get a $5,000 credit toward the purchase?

[@ATimelessFamilyJourney]

My frustration is that I am a seller going to be selling within the next month and I literally have had multiple agents tell me I have to list with 6%. If I offer less than 3% for the buyers agent that my house won’t have enough buyers and agents won’t sell the house because the buyers won’t want to pay the difference between the amount offered and 3%

[@ATimelessFamilyJourney]

The of course in the last few days they cover and say at the end but of course it is negotiable

[@KateEarley]

I do 4.5%, half to the buyers agent- 3.5% if someone from my team brings a buyer and 1% if the buyer calls you and we still do everything. Commission is always negotiable

[@ATimelessFamilyJourney]

@@KateEarley do you get to decide your commission without getting it approved by your broker

[@realfiction6558]

Commission can be negotiable, but just as it's up to you to accept a number with the agent, the agent has to be willing to work for that amount as well. If you don't offer a commission to a buyers agent, then that means buyer would have to pay. A majority of buyers don't have more cash to pay for an agent. So, you can, not offer one, but the buyer may choose to look at other homes that do offer it instead of yours. Note I said BUYERS not agent.

[@coreybryhan]

Use a lawyer to draft a sales agreement , done ☑️

[@TheInformedHomebuyer4rb]

I live in NCcan you point out where in the sellers listing agreement where it says seller does not have to pay a buyers agent commission I do not see it stated? An agent may say it is negotiable that is not the same as stating it is not the law or mandatory that the seller pay a buyers agent.Thank You!

[@TheRealEstateLawyer]

Sellers listing agreements aren’t standardized. Each firm or broker has their own.

[@noellecms]

The commission you paid your agent is negotiable and your agent has the freedom to share the commission with a cooperating agent who brings a buyer. In the old days term, the cooperating agent is a sub-agent of the sellers. The seller’s agent is the listing agent and the buyer’s agent is the selling agent. Why do do you think buyers have to pay your agents commission by paying your price?

[@TheInformedHomebuyer4rb]

I know which is which what iwas saying is that the listing agent gets his or hers commission and also some of the buyers agents commission what ever they negotiate between each other.If the seller does not offer a buyers agents commission then the listing agent only get his or her commission from the seller. @@noellecms

[@TheInformedHomebuyer4rb]

@@albundy3929 You know that most agents are now going to become listing agents.Buyers are not going to want to sign buyers agent agreements just to see a house.They are going to go to the listing agent and pay nothing.The buyer can use an attorney listing agent will still get his or her commission.They can go thru open houses and deal with FSBO.Listing agents will probably charge a small % commisson to seller for writing a nonrepresented buyers contract.Im sure on the new listing agreements it will be stated sellers do not have to pay a buyers agent like it should have been stated always.A buyer also needs something in writing from the listing agent or from the listing agents office that the seller is not paying any of the buyers agents commission or concession as it may be called now.Something other than the agents word.

[@alexprinsrealestateagent1263]

I’m all for change. I’m ready to see what the future holds, but this whole law suit just feels backwards. I can’t believe NAR settled. I don’t understand why an MLS wouldn’t disclose to participating members if there is a commission being paid. Now this will turn into a sh*t show for buyers and buyers agents. I feel bad for them. There is going to be a lot of uncertainty. Buyers won’t be able to pay a realtor.

[@Guam.Realty]

Nailed it. Definately taking a step backwards.

[@JimVollandt]

The commission was always baked into the cake. And BTW the brokerage takes a HUGE chunk so it is not like the agent gets a $15,0000 check on a $500K sale. But what will happen now is a 300K house that used to offer 6% to pay both sides will now get an offer for 291K since the other 9K has to be paid by the person making the offer - Even if the buyer goes without representation the seller is going to see 3% less so this just makes it more complicated for homebuyers and not going to save anyone money buying a home... just my two cents...

[@scientificapproach6578]

Less money going to the agents = more for the seller.

[@scottantonucci]

This was a wonderful. Here in Los Angeles, I've heard much of what's in this video, but you break it down so simply and clearly. As just one of the vast majority of "good" agents in this business, I'm very grateful for this content. Thanks!

[@TheRealEstateLawyer]

Glad it was helpful!

[@mikefeir]

Can’t real estate brokers collectively decide to use another website like Zillow or anything else other than the MLS for listing properties and doing business so as to avoid these NAR settlement rules?

[@TheRealEstateLawyer]

The NAR is "The National Association of Realtors"

[@DrSchor]

we know that. what is your answer?@@TheRealEstateLawyer

[@realfiction6558]

I believe there is a line in the settlement that states brokerages cannot aggregate commissions on any sites. I don't see why individual brokerages can't display the properties they are personally marketing with compensation on their own individual sites though.

[@buyingandsellingland]

@@realfiction6558 Wouldn't that violate the paragraph that says we can't make blanket, unconditional, or unilateral offers of compensation?

[@shelleyswift1170]

No, it states that the MLS and the NAR cannot create websites that allow for the aggregation of this information. There are already independent website owners who are adding this information Jared James talks about it here: kzbin.info/www/bejne/a5i7epV-itp1i7s

[@alyross2850]

Here’s the problem that agents are having. We aren’t talking about the difference between having a buyers agent or not being a few hundred dollars, at least historically. It’s like you blow out your tire, have a spare in the trunk. If I have AAA, it’ll cost me $20 to get it changed. If I don’t, I have to consider whether it’s worth it for me to pay $450 or do I suck it up and watch a KZbin video and figure it out myself? Sure, $20 is worth it. But $450? I can do it myself. This is the problem for buyers agents. They aren’t worth what can often be tens of thousands of dollars. Maybe if they are paid a flat rate it may be worth it to some people. I have done it. It’s not that hard.

[@InvestingWithAdamK]

You bought for sale by owner or you reached out to a listing agent who then represented you and the seller?

[@sandralenins4094]

Well I agree with your paying for the service or doing it yourself and you can also shop around for the best deal. That is exactly what you have always been able to do with Real Estate......Commissions have always been negotiable, you chose the Company/Agent you want to work with, if not happy with what they charge, then go to another one, NO one forced you to work with a certain company or agent. No one even Forced you to work with an agent period. Sale it yourself. Just for the record I work a lot harder, spend more time with buyers than I do Sellers. Buyers look at multiple homes, sometimes for months. It is a business You CHOOSE to use, not like the stuff we have to have and have no choice!.

[@livingcalifornia66]

What do you mean about the items termination 7 years after the class action notice date? What will terminate?

[@bobbic9868]

The terms of the settlement agreement. I think…

[@RobertKnauerUnfiltered]

My question for you about buyer agency agreements is as follows: What if I myself as a buyer do not want to go and use a buyers agent and have an agreement with them, but in stead as an independent BUYER want to contact the listing agent directly to view a property for the possible purchase and do not want to have a buyer's agent, can I as in the past just contact a LISTING AGENT or Broker and ask to view it?

[@InvestingWithAdamK]

The listing agent would require you to have a buyers agreement to view the home. They cannot just open the door for you to see it.

[@RobertKnauerUnfiltered]

You can, just have an Atty. review it if you are not sure of what you are doing. As a Sr. Contracting Officer for 40 years....I know what I am doing wen reading them. Most do not. Never trust any listing agent unless YOU KNOW THEM WELL AND TRUST THEM. Code of Conduct means zip

[@AK47tez]

@@InvestingWithAdamK That’s not true in Maryland. The listing agent represents the seller and CANNOT also represent the buyer. If the buyer doesn’t want representation, there is a State-issued form called “Understanding Whom Real Estate Agents Represent.” The listing agent would ask the buyer to sign that form (which clearly says “I represent the seller, not you, if you want representation you need to get a buyer agent and sign a buyer agency agreement “) and the listing agent could then show the home to the unrepresented buyer.

[@InvestingWithAdamK]

@@AK47tez after the new legislation goes through or currently?

[@carriew92]

Thank you for creating this video so that the changes are digestible.

[@NedaNavidnia]

Thanks for explaining it and making the whole document this easy to understand

[@EddyLifeLaughs]

Do you have a link to the document?

[@McCollim-YT]

In my humble and experienced opinion, the vast majority of buyers have little available cash to pay commissions and are dependent on seller commission splits with buyer agency. Otherwise, they will be dependent on lenders agreeing to roll such obligations into loans. This settlement represents a revolutionary change in the industry because a significant number of low to middle income buyers will lose representation and protection. Although it may seem easy just to switch the expectation of buyer agency commission from the buyers, that switch has severe financial issues.

[@InvestingWithAdamK]

I’m not sure you listened to video. Seller can still pay it

[@scientificapproach6578]

​@@InvestingWithAdamKonly if it does not exceed what they buyer previously agreed to pay their buyers agent. The buyer can not even make an offer with their agent until they agree on the price they will pay their agent.

[@amapnamedpam]

@@InvestingWithAdamK can and will are two very different statements

[@InvestingWithAdamK]

@@amapnamedpam Sure. But if seller doesn’t want to pay, not sure many buyers agents will bring their clients to see that sellers property

[@CMarkR]

They really should outlaw the % based fee for buyers agents due to the conflict of interest. Since they should be acting in the buyer’s best interest, shouldn’t the buyer’s agent make more if they do a better job negotiating a lower price?

[@TheRealEstateLawyer]

Interesting thought

[@DrSchor]

you totally missed the point. this is not about what the agents make. its is about saving money for the buyer

[@chrisz7083]

The buyers get screwed with the new settlement. More money out of pocket if they use an agent. Most will have to go without an agent even if they don't want to. Europe doesn't use buyers' agents, I believe.

[@InvestorVentures]

@@DrSchori believe you mean seller

[@mommom3172]

The reason it is percentage based is because that agent is gambling on this buyer being ready, willing and able to purchase a house and be on call to assist them should a house come on the market & also spending time looking for pre-market properties for them. If that buyer changes their mind because they got a job offer in another state, they owe NOTHING to that agent. Do you have any idea how many buyers end up not actually buying? A lot. I'm open to a flat-fee, but it would depend on how much time individual clients need from me. Most buyers want unlimited access to their agent & a lot of wasted time seeing homes they have no intention of buying, so a flat-fee paid upfront for me for 6 months - would be a set number of showings per month that do not roll over, a bank of hours per month for consultations, unlimited market research, permit searches, phone calls/texts to other agents on their behalf for information on prospective properties, unlimited offer prepararion, a set number of hours of negotiations, a set number of hours for transaction management & attendance at inspection, walkthrough inspection. Most buyers I have spoken with do not want to pay upfront. So, how do we solve this dilemma of the people who actually do follow through on a purchase having to subsidize the countless hours of free work, gas, tolls and wear & tear on my vehicle that I'm never compensated for? I'm not against buyers paying upfront for services, I just know very few either HAVE the money or are not 100% sure they are going to buy and won't do it. There is a difference between "shoppers" and buyers. Perhaps the new rule requiring the brokerage agreements be signed for buyers will weed out the people who are just "thinking" about buying and allowing them to sit on the sidelines and not waste professional time. They can go to Open Houses and do their own research before interviewing and engaging a buyer agent.

[@KatKatz11]

I'm reading a lot about home buyers hiring an agent to show them homes... but if you're selling your house what will be the standard commission to sign up with a realtor to sell it be? Normally, it's 5-6% in FL, but if buyers are already agreeing to pay their buyers agent, wouldn't the commission to sell a house now be 2.5-3%??

[@robertkozlowski9328]

Thank you for this! What a great explanation! The sky is not falling, it will just be a different shade of blue. If we all continue to practice the way we have been with just a couple procedural changes the market will not have to change in a huge way.

[@tier1solutions28]

This is disastrous. Lower income people are going to be pushed out.

[@TheInformedHomebuyer4rb]

Listing agents come to get your listing and have no intensions of selling your home they know a buyers agent will sell it and they will get a commission and some of the buyers agents comission.Now all the agents will do is call each other or text to find out what the sellers are offering in comissions to decide if they will show the house sterring.Agents are worried that because of these lawsuits more people are going to know that they do not have to pay a buyers agent and agents are going to lose some commission.

[@jonlj77]

Yup. The 6% gravy train ride is over!

[@davidmckinley5343]

Any time I have bought and sold houses, I was never told about not having to pay something. It was just written up as if it was required.

[@Annd75575]

Exactly!! We’ve bought and sold many homes in various states and we’ve been ‘told’ “if you want this house sold you must offer the buyers agent 3% no less or else you won’t have showings” we switched to selling now using flat fee listings on the mls to save the sellers agent and have more control over what we choose to offer the buyers agent. We’ve offered 1-2% and had no issues selling the homes.

[@augustoliver2779]

Generosity generates more generosity.

[@JoseLuis-t1r9w]

Commissions and anything related to the transaction have always been negociable . You just didn’t read what you signed.

[@melaineanderson6022]

did you not read what you were signing?

[@davidmckinley5343]

@@melaineanderson6022 does anyone read the 500 pages in the sales contract. I expect the realtor that is working for me to be honest and open.

[@SC-sh6ux]

great video! we met with a buyer agent the other day and my husband thought she worked for the seller agent because they were saying all the same stuff. Like “the price seems fair”. if i’m going to pay for a buyer agent they are going to need to represent my interest, not the sellers.

[@JaniceRountreeRealtor]

The “price seems fair”?! 😂 There are comps that factually determine if the price is fair!

[@giog6181]

Perhaps the comps did show the price was fair. Hence helping you understand that if you want the house , you need to offer more not less. You want your agent to tell you its overpriced , when it isent? Than you offer less and you loose the house?

[@JCMasterCraftsman]

Taking a sales person’s word for what is fair is not advisable. That’s what the big picture of this case is all about.

[@shelleyswift1170]

That is why you walk through each of the comps you go through all of the photos you compare all of the different aspects with the client as they review each of them, they ask questions you answer questions. Ultimately, they can choose for themselves by their own facts and eyes, which property is most similar to the one their purchasing, and what it closed for.

[@JCMasterCraftsman]

That would be one expensive photo review slideshow, that most people can and would do themselves if they had to pay 3% of the purchase price, meaning they would save $15k on a $500k property if they reviewed the public info themselves.

[@38Flyer]

Great video, but I disagree that "not much will change." This is a MASSIVE change in the way transactions will be conducted---MASSIVE. Buyers will be shocked that THEY now have to agree to pay an agent, before they even look at a house. Many will not do that, and many agent will accept SUBSTANTIALLY less than before, because it's either LESS than before, or nothing. (This is the opinion of someone with three decades in the business).

[@ourearealty]

I agree with you. I commented to our local page exactly to these points. It certainly will create a better salesperson. Back to old school real estate. I also created a backend compensation website in less than an hour as example. Thanks for the accurate detailed info!

[@RachelsRealty]

Great explanation without all the panic! Thank you!

[@katrinamadewell]

FANTASTIC JOB! You did an extraordinary job breaking down this suit on this video :)

[@lindabordeaux4882]

Video is very informative and easy to follow. Keep up the good work.

[@RealEstateExamQuestions]

If you are the seller's agent, do you have to get a buyer to sign a buyer's representation agreement before showing the buyer a house you have listed?

[@DCockey]

Is there anything in the proposed agreement which would prohibit the prospective buyer's offer including a clause that the seller will pay the buyer's agent a specified fee upon closing from the proceeds? Whis would eliminate the buyer needed to have the funds for their agent's fee. The buyer's agent' fee would be paid from the proceeds essentially the same as current practice. The buyer and their agent would agree on a fee in advance, whether it be 2.5% or $5000, and that amount would be included in the buyer's offer. The seller could agree or make a counter-offer.

[@sunnyday3539]

Yes, I agree it should be part of the purchase offer, for the buyer to receive a rebate at the time of closing. And then the buyer uses this to pay their own agent, based on their original Buyer Broker agreement.

[@Guam.Realty]

I've heard this same suggestion on several podcasts. Unless it's otherwise prohibited, I feel like the buyer's representation agreement could indicate a percentage of the purchase price or a flat rate, with the stipulation that if the seller agrees to compensate the buyer's agent, the buyer's portion of the commission will be reduced by that amount. Put the compensation in the offer. Just my thoughts.

[@JillChristyGroup]

@@Guam.Realty That's the way the Buyer's Rep Agreement is already designed. Most agents have not used it properly and inaccurately stated the percentage as 0% in the BRA rather than a specified amount.

[@OrlandoDiaz-lc6jn]

Great video 🎉 You explained it well and got clicks without all the fear mongering I’m seeing from KZbin agents for clickbait. I would like to say, I see more lawsuits coming for failure to perform, where’s the appliances? I need to get out of my contract!!! type of suits. Some buyers will go it alone and really it won’t be fair to go against a seller AND professional agent guiding them on the sellers side.

[@solmustafa]

Thank you for this Tiffany; the information you provided here confirms my views on this lawsuit…not much changes in terms of how REALTORS practice except in the perceived value that the buyers agents now need to be able to communicate to their clients as well as the sellers who agree to compensate them in a transaction.

[@CoastalKat]

This video is excellent. She mentions NC several times

[@TheRealEstateLawyer]

Yes, that’s where my law office is

[@BobPenzien]

Keep in mind, these new rules will not apply to a buyer's agent who is not a member of both NAR and MLS. This means a buyer's agent could ignore all these new rules and still represent their buyer in purchasing a property as long as he/she is currently licensed in their state and in good standing.

[@HilltownClips]

But how are they gonna get paid from the transaction?

[@cremephoto]

@@HilltownClips in writing, agency disclosures.

[@finefloridahomesbyfrancis]

Thank you for such a great video. For the commission section of the settlement-where you stated that a buyer's agent has to outline their stated commission but can not receive more than stated? So if a home builder is offering say 4% to a buyers agent, but you agreement with the buyer says 3% you can collect the other 1%? What if you state in your contract with the buyer up to 6% could you collect all the commission from the home builder than?

[@realjaredlaster]

I wish we had an attorney like you here locally in Mississippi. Great video and breakdown!

[@JH-bq9zr]

I would love to have a video of what questions to ask a buyer and seller agent prior to engagement. Or how to spot an incompetent and sometimes lazy agent. As you said if you have a good agent the transaction can go smoothly

[@sparksmcgee6641]

No, what you want is a video of the actual steps needed to transact the sale of a single family home. A first-time buyer could do it themself if they had a step by step document from each state.

[@douglasdonia8508]

This was a great summary, thank you for posting.

[@TheRealEstateLawyer]

Glad you enjoyed it!

[@RobertKnauerUnfiltered]

but me, myself and I don't need to pay any$$$ to see a property if we don't use a buyers agent. We can always just call up the lister and say "I want to see it, in order to make a possibe offer."

[@melaineanderson6022]

then the listing agent must have you sign a buyer's agent agreement, the listing agent can not show the property without a buyer's agent agreement in place.

[@njprepper8601]

What about viewing it at an open house?

[@elizabethandrews4199]

What do you do with current contract listings? And listings already in the mls?

[@briddickwebb2271]

What will be the penalty for showing a home before a buyers agreement is signed? How would “they” know? A DOL audit?

[@georgelynnerhodes9045]

Hi Tiffany how do I become a part of this settlement?

[@angis4965]

Maybe someone has asked my question. If so, I apologize. But what if a broker requires their agents to get 2.7% (minimum) on their leads? If the seller doesn't pay the buyer's agent commission of 2.7, I have to get it from the buyer. Is this legal?

[@elizabethandrews4199]

It’s a huge change Having the buyers own the compensation in Chicago as currently the compensation always comes from the seller side.

[@InvestingWithAdamK]

The seller can still pay it.

[@daraluxurygroup]

EXCELLENT explanation! Thank you from TEXAS!

[@HuberRealEstateGroupofFlorida]

Thank you for breaking it down! I had to reread this agreement a few times so this help clarify the verbiage in real words. How will this affect builders in offering compensation and /or bonuses?

[@TheRealEstateLawyer]

You're very welcome

[@dewholdingsllc1050]

Please let me know what real estate sub markets where it was NOT the industry standard practice for listing brokers to demand and dictate a 5-6% commission from the seller and offer to share the total commission with the buyer agent? (And many times listing brokers would wear two hats and do the entire deal) expect the entire commission paid at closing from the sale proceeds. My experience has always seen 5-6% commission in AZ UT NM CO TX OK. Other than the flat fee listing brokers.

[@GeorgeDeVillar]

Excellent Presentation! With your permission, will add it to my website. Any thought on how the DOJ intervention may impact the settlement, if at all?

[@KMTPOneLife]

Thank you for this! For an off-market deal.. What do you think of the BNA? Can you just represent the seller, get full commission from seller, and let the buyer on their own (but maybe just provide them with forms)? Or do you have to clarify with the buyer what commission the seller has offered you?

[@johnsalkowski3532]

What was the topic about 7 years that you mentioned?

[@evianevans292]

How do you not pay the buyers agent? Like what do you have to say or do because when me and my husband sold our house the buyers agent commission came from our house sale

[@rack9458]

They can still do that but as a seller I would refuse to pay the buyers agent from my sale proceeds.

[@jnatale55]

Thank you Tiffany for this awesome presentation. It is very informative

[@evianevans292]

Also where i live north west Indiana we are told get a buyers agent because you don't have to pay and if you don't get one very few sellers agents will actually show you a house

[@rack9458]

Yeah, a seller agent refusing to show someone a property? Are you serious? If that was my property the agent would be fired immediately!

[@AlexAlex-wl6fi]

As an MRP designated Realtor, I'm very concerned Sellers will stop accepting VA loans under their terms on MLS. For those who don't know, a VA loan restricts the Buyer from compensating their Agent. In the past I've had issues with sellers not wanting to deal with USDA loan backed buyers and in a few instances FHA, too. I can see it now... sellers on MLS will have to accept all terms: Cash, Conventional, FHA, VA, USDA... and Seller carried. 😉 Even though I'm on the West Coast, I enjoy your content!

[@ashdav9980]

VA buyers are terrible buyers for multiple reasons that make them less competitive against other buyers. I won’t even bother explaining because the comment will be removed…..but I don’t using the “poor and disadvantaged” trope is going to work this time. Agents are jumping all over this “poor little VA buyer” angle to deflect from the fact they are just upset their house of cards has fallen.

[@No-turbo]

DOJ will likely completely disallow payment from the seller to the buyers agent. VA buyers won’t be at a disadvantage in that outcome. They’ve stated that complete decoupling is the end goal.

[@noellecms]

@@No-turboso you are saying VA buyers will have no chance to buy in this situation unless they go to FSBO otherwise who would pay for their commission if neither the seller or buyer?

[@No-turbo]

@@noellecms No, I’m saying that the DOJ isn’t going to accept NAR’s settlement proposal. Their goal is a complete decoupling of commissions ie no payment to the buyers agent from the seller. This will mean the defacto end of buyers agents since no one will have the funds to pay out of pocket. VA buyers will be just like other buyers if buyer agents are gone. The US is the only country in the world where buy side agents are the norm and their goal is to eliminate them to bring us in line w everyone else. Here is their SOI on a smaller case last month and they’ll have another for the NAR case shortly you can be sure. www.justice.gov/d9/2024-02/420087.pdf

[@rider8067]

Question and sorry if I missed this. Does this include agents under the same broker?

[@loripoirier-realtor8338]

Am curious to know, since you’re an atty, could NAR have stated that mls is proprietary and for members only? And can brokerages go back to the book in an online version? It would be beneficial in so many ways if that could happen. Real estate agents could retain their data and no more being sold back our leads from funnel companies.

[@B_Trott]

I’m very grateful to have your input! Thank you.

[@TheRealEstateLawyer]

My pleasure!

[@chrishoermle2621]

Thank you for doing this! I have heard in other videos about this settlement that😮😮 part of it will include no longer mandating Realtor membership with MLS membership. In other words, has this settlement addressed allowing non realtor members, but still licensed salespeople, access to the mls?

[@LilitheAmara]

Having worked for multiple brokers, some are DEFINITELY more ethical than others. One broker that I worked for promised training, but all the training was essentially how to get clients and had essentially no information on how to actually be an effective fiduciary for clients and ensure that you are providing value as an agent. I had to switch to another broker to actually learn how to effectively advocate for my clients, what to do to protect my clients, and to make sure my clients are adequately informed about what is in the contracts they sign. So I can fully see agents not being trained well enough to actually help their clients adequately.