NAR Settles Commission Lawsuit... Now What?

[@texasnative]

Instead of having numerous MLS’s and boards of Realtors in every city, we need a state wide MLS that is not part of NAR. This is an opportunity for agents to form a new type of trade organization.

[@dougwallace2210]

Couldn't agree more

[@floridaelkhunter]

The voice of reason.

[@dajw7540]

I agree! And we need to get rid of the NAR! They do nothing for us; their advertisements say NOTHING about what we bring to the table as a valuable asset, and they threw us under the bus on this lawsuit and they take too much in dues from us already.

[@larrysnyderthecandorealtor]

I think it's stupid we are required to pay NAR dues, state NAR dues , and local NAR dues. It should be optional to pick only one. They all have the same benefits, and they suck anyway.

[@royalgreenlantern]

@@larrysnyderthecandorealtor I dont know about your state But in GA many brokerages have NAR and NON-NAR sides of the same brokerages. I am with homesmart Atlanta on the non-NAR side . I pay non of those dues.

[@rozm1774]

I read a post by the attorney who started this who said that the purpose of this suit was "consumer protection". How is a buyer who needs financing who already can't afford closing costs protected? The outcome is that these buyers will not be able to afford a house. As you said, the only "winners" are the plaintiffs' attorneys.

[@whips8]

Does anyone else here believe that this whole thing was part of a deeper plot to make it harder for people to own homes and force them to rent and live in apartments?? Just a thought.

[@WcJ31]

Yup 100 percent

[@janettecerra8936]

I hate that we have to think that way but yes, that thought definitely has crossed my mind. Especially with all of these large industrial buyers buying up all these loans in default. Too many weird things going on.

[@ashleymatoso8127]

I had the same thought because this directly affects buyers more than anything else. Lenders may start programs that cover there commission dues.

[@luismonroyRealtor]

Yes, I’ve been playing with this idea as well

[@msconnleon]

Definitely

[@carolroeske9654]

Will it be harder for a buyer's agent to get an offer accepted if buyers are asking for a credit to help pay for their agent? The offer will look less appealing than an offer that is not asking for anything. Try explaining to your buyer then how much you are worth.

[@Starfish2145]

Yes it will

[@soniaahmed9377]

I think the listing agent has one more reason to doblend the deal.

[@BiancaMMM]

Yes it’s the same as asking for a sellers concession for closing costs. In todays market for example, it’s pretty much not happening

[@carolroeske9654]

Since buyers might be going directly to listing agents, I think commission stated in the Listing Agreement would go up maybe 1 or 1.5% for Dual Agency instead of discounted.

[@rhondadubois1604]

Agree 100%

[@SA-xu5oo]

I believe that the point you made around the 15:30 mark is the way it will truly be: The seller will continue to pay the listing agent's commission, and the buyers will negotiate to have their agent's commission paid by the seller. One question that listing agents will need to get used to asking is, "Are you willing help pay the buyer's agent commission if they ask for that concession? If so, how much are you comfortable with paying?" In many ways this is how it is today but with a little more empowerment for the seller.

[@casspower]

This is like a layoff for realtors

[@mikewright2858]

I won't pay for the buyers' agent's commission.

[@antcaruso3465]

Exactly! I think most sellers are not going to offer buyer compensation. Also, as a buyer agent, what are you going to do when you have buyers you are working with and they want to see a house? Reach out to every listing agent to see if they can figure in a buyers commission.

[@InsideAZHomes]

@@antcaruso3465 Yes, that's exactly what they want us to do. Since a buyer-broker commission cannot be anywhere on the MLS, it appears that it's ok for it to appear on a brokerage's own website or a single-property site. Of course the typical broker's website just pulls an IDX feed direct from the MLS, so something will need to be done on the back end to allow it to be posted on their private website.

[@InsideAZHomes]

@@mikewright2858 If you listed your home with a broker (assuming you're not an agent here), how would you compensate the buyer's agent, if at all? If you say 'no', then why not just sell it yourself or hire a 'limited service broker' who simply sticks in on the MLS with your cell phone photos of the interior and turns you loose. Then YOU as the seller get to handle ALL aspects of the transaction, from receiving offers, negotiating the contract, navigating the inspection, ensuring all contract timelines are met, following up with the buyer's lender to ensure they're on track, monitoring the appraisal and 'hoping' it comes in at value, coordinating repairs (or credits back to the buyer if you can't do any repairs, just to keep the deal together), basically everything up to closing.

[@livinginoklahomacityofficial]

I think those of us who work with buyers who have built a business from a position of specialty, will be fine. If you are a buyer's agent and you're struggling to understand how to communicate your value in this industry shift, you're going to have to face the reality that you need to create something about your business that sets you apart.

[@mincollagroup]

Absolutely and there will be a little back and forth negotiation on the commission mother, may I etc.

[@nelsonsantiago651]

What sets me apart is I have been. Property Manager for 15 years. If I were to have an agent representing me to buy a home in this environment, I would choose a Property Manager. They show more properties than regular agents, know neighborhoods better in a city and most importantly know houses and view them as mechanical systems and what to look for under the hood before people start getting emotionally attached to the house. The truth is a house can be an asset. It should be taken care of as an asset. It can also be a liability because of deferred maintenance.

[@rhondadubois1604]

When it comes down to qualifying, don't you think it difficult enough with the higher interest rates? Would you pay an agent out of pocket to represent you? I would not. Just being honest.

[@livinginoklahomacityofficial]

@rhondadubois1604 you don't have to, that's certainly within your rights as a consumer. I fully intend to do everything in my power to negotiate a buyer's commission in the offer. But I don't blame anyone for not using a realtor, buyer or seller. I will say however, not having representation can often be more expensive in the long run.

[@bernadofelix]

fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.

[@Suleferdinand]

Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.

[@hersdera]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

[@ScottKindle-bk3hx]

nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?

[@hersdera]

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne’ for the last five years or so, and her returns have been pretty much amazing.

[@GeorgeDean-km3wm]

I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.

[@carolroeske9654]

Me, personally, I am going to have a very difficult time asking buyers for compensation. Also, first time buyers certainly do not have those extra funds.

[@antcaruso3465]

Exactly. Picture a young newly married couple, looking to make their first purchase, asked to pay many thousands. They can't rub two nickels together most times

[@barttracy88]

VA buyers will not be able to at least under current VA rules

[@hpain6261]

If from the origin of meeting your buyer you present your value it’s easier. I’ve always done this. At the very call to represent a buyer I ask why did they chose me, then immediately before I meet them they receive my buyer package I created. Not the brokerage. I give them so much information about the process and the people that will be involved in the transaction. It becomes immediate they need me. The information in my package clearly tells the buyer without their offer I don’t get paid meaning they pay me indirectly and my fees can increase or reduce based on current mls listing commission and or other agreed commission. Most buyers will need buyer agent rep because listing agents will be held responsible if they are not honestly performing dual agency.

[@LoanShoppingExpert]

So add "buyer's agent compensation X%" to your offer.

[@Seattle_Real_Estate]

In Seattle we already have to sign a buyer's agency agreement since January, and to make the conversation less awkward because we have to specify the commission that the buyer will pay (if the sellers won't) is I just put it at 0% and hope that the seller offers commission. If our MLS adopts the changes to where the buyer's agent cannot be compensated or have the commission displayed on the MLS then I will become strictly a listing agent.

[@JacobRady]

Genuine question here: What separates us as realtors from that of a wholesaler? If the MLS becomes unnecessary because of buyer agency compensation. Why does one need to be licensed? If all we will be doing is acting as a advertising agency. Personally I see value in having a license and ethically representing a client. However, I am having difficulty seeing how it will be needed in the future.

[@tevausa1820]

Curious by what you mean as unnecessary? I have not read much about an MLS service being open to the public

[@JacobRady]

@@tevausa1820 the only reason agents use the mls is to upload listings to the database and display commissions. If we get rid of the buyer agency commission and listing agents don’t need to display their commission. There is nothing really unknown about the property. The mls could essentially be eliminated. Listings could be facilitated on Zillow or another marketplace. Therefore there’s no real reason to have a license anymore if an agent is just acting as a middleman advertising agency. I’m sure there is some legal loophole I’m missing. However, I don’t see what stops this from happening.

[@kellyhaggerty5222]

@@JacobRady This is actually what I hope will happen. I hope Sellers start using Zillow and an attorney. Sorry, but at this point I really do.

[@Kitnkaboodle_64]

@@kellyhaggerty5222… If the Agent/Broker is nixed completely and you paya flat fee to both Zillow and your attorney at closing, the $$ savings will be big, as compared to paying 6% commission. But bare in mind that you’ll be writing your own description, taking your own photos and showing your home yourself. Will you want to require proof of funds documentation prior to any showing? Will you be setting showing time windows that accommodate your schedule, Open House style? Or will you greet potential buyers every day for days or weeks on end, after work and on weekends? It does depend upon your circumstances and the value you place on your time, your organizational skills, your desire to juggle your home life routine with now being your own selling point personality. It can be done, of course, but go into it with your eyes wide open. I do agree that commissions are wayy extreme with all of the digital ease of doing business. Type info into a box, click on some loaded photos and boom! the home is online for the world to see. An offer, you say? Type some more on an app and email it along its way….back and forth we go digitally. Now, with a great agent, the answers they have to most questions that are asked aren’t always easily accessible by Googling them yourself, if you’re going sans agent, but your attorney you’re using will know. It really does come down to what you’re most comfortable doing. As for this deal of not listing the commission info in the MLS write-up,…well duhh. Does anyone believe that agents can’t make a call or send a text, or like someone else wrote in a different comment section, create a “code” of some sort in the description of the home that discloses what the % is.? Or is this just another diversion tactic to get everyone all riled up so that more Bill passing insanity can be snuck by us while we’re typing out our opinions here🙈

[@rhondadubois1604]

Good questions. Very interesting.

[@ibelievecommunity8571]

Buyers that go directly to the listing agent will still need to pay for their services unless offered by seller. No realtor will work for free. Maybe the seller (in their need to sell) will offer 4-5% if the realtor represents both sides? If the buyer agent writes an addendum for the seller to pay commission aka concession we are back where we started. Sellers who need to sell will do what it takes in the end; including paying the realtor fee.

[@huntertherealtor0.o]

Exactly! That's what I've been trying to tell everyone at the office that's panicking over this..

[@HulaShack1]

Imagine how many back door deals will be happening now which is not allowed now but after this mess, it will be SOP. This is going to be lawsuit waiting to happen.

[@lyndastarwriter]

Yeah, it's called 'wholesaling', 'Subject to', No licensure required - just money. Buyer's will be seeking online deals that don't involve agents at all.

[@ChristieWilkes]

Yes- Hula: I do. I do believe this is a big step-forward for the New World Order and accomplishing their goal of no homeownership and everyone lives in government/Corp. owned (Black Rock) apartments. Welcome to “1984.”

[@michaelagile333]

Why would anyone think that going to the listing agent saves money??? Which listing agent would do both sides of the deal for one commission??

[@kellyhaggerty5222]

Ding ding ding. Funny how when I said this earlier I was called ignorant.

[@InsideAZHomes]

@@kellyhaggerty5222 As an agent of 18+ years, I've only done four transactions where I represented both parties, and the only reason was that those buyers begged me to do it; the last one being probably over a decade ago. When I write up an agreement with a seller, I tell them I'll reduce the agreed upon commission IF I find an unrepresented buyer, however, that buyer needs to understand that my fiduciary duty is to my SELLER first, and they must agree to that. I truly doubt I'll ever do another one because I believe it's an inherent conflict of interest in so many ways, but each seller and their particular situation is different. Sadly yes there are unethical agents who will gladly rep both sides and charge a higher commission to do so, and you can argue that the buyer may not get a fair shake, but if you know anything about the history of 'agency' and how buyer's agents came to be, then you know that it was due to the high number of lawsuits during the latter years of 'sub-agency'. It appears that with this settlement, we may be taking a major step backwards.

[@dallasstudent1605]

I don't think a listing agent is covered legally if they only get paid from one side. I heard someone mention this in another video.

[@kellyhaggerty5222]

@@dallasstudent1605 I believe it varies by state. It is allowed here but a lot of brokers hate to do it because the liability is high.

[@ml9557]

buyers are going straight to the listing agent to avoid paying any Buyer agent fees at all.

[@agentjeff]

Great discussion and thought provoking. I have been an agent for 35 years in the Atlanta market and I fall into the camp that there will be some changes for sure however, at the end of the day I think most sellers will still choose (as they do today since there is no requirement) to pay compensation to the Buyer's agent. Sellers will want to have full exposure to the market pool of buyers and not just the buyers who have deep enough pockets to pay for Buyer Agent representation. Also keep in mind that all markets shift and when it swings to a buyers market the Sellers will not be so confident and more willing to offer compensation to get their home sold. Commissions have been coming down since prices have gone up steeply since 2020 in many markets. This might make it tougher for Buyer's Agents since they will have to justify their worth but I do not see overall commissions dropping to much less than 5% total. Real estate agents a hearty bunch and we will find the ways to make it work.

[@Realtor_Ray_eXp_Realty]

Another great video with some excellent information. We all need to keep in mind this is a "proposed" agreement The DOJ has the last say in this. Overall serious fulltime realtors will do even better. Unfortunately the BS that home prices will come down is complete nonsense

[@JenJenLiu]

Home price will go even crazier!

[@sabrinas8965]

The buyer is penalized has the sellers agent will not cut his commission to 3 % but will still charge in the range of 5 - 6 % ...and then on top of it, buyers if they want an agent representation, they have to also pay a commission

[@mincollagroup]

What about VA buyers? They are not supposed to pay a buyers agent.

[@johnsciara9418]

When a seller lists their home, the agent lists which types of financing the seller is willing to accept. They could list it as cash only, conventional, FHA, or VA. If the seller wants to have buyers that are eligible for VA financing, then the listing agent should be able to identify to the seller that they will need to cover the buyers agent commission. Very little will actually change

[@reasonablecomments2538]

Va buyers get shafted imo unless they change the law. Alot of sellers are iffy to work with a va loan already. This will put the nail in thr coffin

[@natesellselpaso]

@@reasonablecomments2538 I agree. I’m VA and during Covid I didn’t have a chance. I ended up buying my own listing to avoid competition. You aren’t wrong. It’s really up to the sellers. If they’re greedy it will be exposed in the business. However FHA is much stricter than VA.

[@jackwilson3121]

A VA buyer cannot pay a buyer agent commission period. The buyer agent commission must be paid by the seller.

[@jackwilson3121]

@@reasonablecomments2538 I was a realtor for 40 years. A VA loan & house condition is not that much different than a conventional. FHA is a little stricter on property condition.

[@yosef_adde]

Great video. I wish NAR also said that listing agents can't represent buyers... but rather to force buyers to go retain a buyer's agent or go unrepresented. I do wonder if listing agents will still have the option to pay a cooperating broker X% to be negotiated between the 2 agents??? Rather than bringing that request for concession to the seller? Like if the Listing Agent takes the listing at 4% ... can he split 2% to a Buyers Agent or does that request for 2% have to go to the seller for a concession for a total cost of 6% to the seller?

[@carolroeske9654]

It's my understanding that that could be negotiated with seller, however, compensation to buyer's agent can not be in the MLS but can be listed on your brokerage website.

[@isabelcrespo8589]

I don’t feel we realtors had the support from NAR in this settlement

[@PropertyWalkThrus]

We rely on an MLS to provide standardization and efficiencies we wouldntnhave without them. How will agents, appraisers, etc efficiently and effectively access historical sales data for comps and valuation purposes. Agents would be intentionally making their job more difficult, unless there was an alternative every agent and seller would choose to host this data.

[@Bizzy-Bumble1131]

The comment I was writing was getting way too long. Is there someone we can call or write to about this lawsuit because no one asked for the feedback of local agents.

[@BiancaMMM]

Yes let’s do our own class suit

[@viaggi3945]

What’s there to stop me as a seller to list my house for 15% higher Thant the market, then add a note in the listing that I will pay 5% to the buyer agent, all the buyers closing costs plus a set amount for his/her moving to gain an advantage over other sellers? What I just did will keep raising the prices. How is this new law helping lower prices?

[@livinginoklahomacityofficial]

Because appraisals are a thing? Lol I love that sellers think that Realtors (or anyone) can just raise the price to whatever they want. Respectfully, it doesn't work that way. I think this is part of the reason so many people have misdirected their frustration with realtors by conflating the rising costs of homes with "greedy realtors". We don't get to control the sale price of homes, nor does the seller. Further more, if your home is overpriced by 15% - it WILL NOT SELL. You'll simply help competing homes sell theirs, while yours gets virtually no showings.

[@BiancaMMM]

In Florida, maybe it will. A lot of cash buyers from up North actually bought properties here in the past few years for 30-50% more than actual value

[@JazminSante]

@@BiancaMMMtrue but ppl in a highly desirable area will always be an exception to the majority. Only ppl who have legal access funds/$$ will be able to afford to offer above appraisal price, thus you would be eliminating most fha, va, usda (if properties qualifies) from being able to financially participate in making an offer on your property. Meaning the ball will be in the ppl with the equity, access funds, & strong financial strategists, who will already have a surplus of options, including foreclosures to wait out. With wealth buys access to resources so why rush to buy a property not guaranteed to hit or make appraisal? Without a specific circumstance or buying due to a highly desirable area, that guarantees them their return on investment..(in case they need to quickly off load the property)… they wouldn’t entertain buying your property if already starting off upside down on the equity.

[@cremephoto]

Home prices CAN be affected by this, with slowing buyer demand down over time-

[@nowyouknowrealestate5703]

Realtors make 2-3% of the sale. Attorneys make 33% of settlement. 🤔

[@superjock28]

Apples and oranges. Your comparing someone who went to school for 7 years and has to work months or years on a lawsuit to jimmy who didn't graduate hs who spends 15 hours working on a deal

[@donbuyshousescash4765]

​@@superjock28Just because Lawyer's have a degree doesn't mean they can just charge what ever they want CLOWN..Agents deserve to make money for the work they do. NOBODY WORKS FOR FREE.

[@iselldfw]

Hummm... I have 40 yrs of transactional knowledge. Not equivalent at all!😂

[@jake-tg1yh]

@@superjock28you realize we don’t get the full 3% right

[@Ty.88]

@@superjock28 33% of 418 million is definitely reasonable for years of work (sarcasm)

[@johnsciara9418]

I don't know why listing agents would look at discounting their commission. Currently if you list the property and you are the one to find a buyer, you get both splits of the 6% commission. Why would an agent offer to list the property at 3% if you are now going to have to do the work of both sides? If you list the property and show the property and then write up an offer from the buyer to present to the seller, you would only be paid for half the work that you put in. Do you want to take a pay cut? If you explain to the seller why it is in their best interest to agree to a 6% commission, understanding that there will be buyer agent compensation included, it would open the property to additional buyers who would not be able to come with an additional amount to bring to a closing providing better service to the seller. In my case I'm not included in this settlement, although the MLS rules will still apply to me.

[@DolceIbarra]

Remember when buyers had to go from brokerage to brokerage to brokerage to see all the inventory? Yeah, me neither because that was 100 years ago before the concept of the MLS came about to streamline the process of exposing homes to buyers and streamlining the buyer experience. It was a genius and efficient evolution in the industry. Remember when buyers were told “buyer beware” because that agent they thought was working for them really had legal obligation not to them but to the seller? I don’t because that changed as well in the early 90’s with the advent of buyer representation. This is is a big step backwards for buyers that will cost them money and time and the opportunity to be homeowners. It will cost sellers money as well since any commission savings will be offset by lowered prices. Yes, I said that. Break up the MLS into hundreds of smaller compositories where not all homes get the same exposure and tell me that won’t lower demand. 🤦‍♀️ All that said, we will not die. Sellers will still sell and buyers (those with the means to do so) will still buy. And I’ll still do my best to serve them at the highest level the industry allows me to.

[@Mike-ys5qd]

Spot on. This ruling increases inefficiency in the market. However, Zillow already has replaced the MLS to a degree. NAR is trash for letting this happen.

[@maumellehomesforsale8744]

Well put!!!!!

[@nowyouknowrealestate5703]

Double dipping, pocket listings, a new wild, wild West in real estate is on the horizon. Thank you DOJ. Figured another way to make it look like you really care for the little guy while you bend him over and rob him blind.

[@JazminSante]

It will make buyers more vulnerable to becoming prey. Especially to a very hungry seller's agent, who has the marketing and communication skillset to market their words to target a better negotiated outcome for their seller.. which is literally suppose the be the sellers agents job, to have a sense of agency to their *clients* not their customers.

[@marcsavoie5306]

Buyers will likely either go unrepresented if they are FTHB or don't have the money to pay an agent. Or, more experienced and/or wealthier buyers will pay their attorney just to review the contracts for them. Paying an attorney $500/hr. for 5 or 6 hours of document review and council is way cheaper than paying an agent $15-30k. The rich get richer. The poorer get screwed.

[@101realtor]

Let me know where you’re finding attorneys at $100/hour.

[@marcsavoie5306]

@@101realtor My post clearly states $500/hr. It is impossible to impress upon a buyer your value when you can open a few doors and expect them to pay $15k. Too many portals for them to use. Buyers tell me all the time they get listings from Zillow, Realtor, etc. They are only interested in pocket listings or coming soons in MLS from their agent. But those are few and far between that fit them in this market.

[@kellyhaggerty5222]

@@101realtor Why $100? The ones I use charge from $500 to $800/hr but that would still be orders of magnitude cheaper than 6% of purchase price on a $600k house. I would need about 3 hours from an attorney on the buy side, max $2400. Half of the commission on a house would be $18,000.

[@jilljones5903]

@@kellyhaggerty5222 Yes the attorney, will look over the contract initially, but will he/she "babysit" the process, making sure you get all your repairs within your due dilligence time frame, watch and fight for your appraisal, protect your earnest money - a skilled Realtor will!

[@kellyhaggerty5222]

@@jilljones5903 I can do that or hire it done. I would prefer that. My earnest money is with the escrow company, I can work with the bank on my appraisal. I am already paying others for all of this.

[@EmphaticAds]

One question, that seems pretty basic, that noone is asking is who is going to show the homes if most of these buyers go unrepresented? Are sellers going to want to let people walk through their homes without a licensed agent? Are listing agents really goong to service all of these buyers and show evey buyer that calls about a listing? Are we going to just have massive open houses and pick a buyer from there?

[@Starfish2145]

Here’s another thing that’s going to happen. When a buyer goes directly to a Listing agent, the first thing out of their mouth is going to be “since I don’t have an agent, I want the seller to discount their price by 3%”

[@ceebaby5651]

and the answer will be.... NO!

[@shantie007]

Great point.

[@ml9557]

lolz. you're confused. the buyer is going to go straight to the listing agent to avoid paying ANY BUYER AGENT FEES.

[@LiveInOrlandoFlorida]

Buyer still do this today thinking they get a better price and it doesn’t … sometimes it can but I think we will all get through this change.. stay on top of it all and make sure you show your value of what you provide to the buyers.

[@joeg4306]

If that does happen then doesn't that prove the plaintiffs were correct in saying there was an inflated sales price to pay buyers agents?

[@alanharajli5134]

What also can happen is the buyer will deal directly with the listing agent and get screwed because the listing agent is really looking out for the sellers best interest meaning he can easily have multiple buyers against each other and work a deal with the seller and increase his own commission by forcing buyers to pay more with their loan. At the end of the day this just hurts buyers period!

[@DavidVsGoliath-vu5jq]

Not really, the buyers agent does not really have the buyers best interest because it is the seller who is paying him and not the buyer, you work for the person that pays you, is that simple.

[@katiesheehan4334]

@@DavidVsGoliath-vu5jqur a moron. Buyers have their clients best interest to have the best deal. Price difference doesn’t do much to the commission

[@DianaPolo_Realtor]

Buyers will be suffering from this the most. The buyers agents were introduced in 1996, not that long ago for the exact reason of protecting buyers. Also, it’s harder for buyers to save up money in addition to all the money they will have to bring to the closing.

[@dallasstudent1605]

Agree! I'm unsure how the consumers are coming out ahead in this and where the transparency is. At least the MLS kept on the cards on the table and it provided checks/balances.

[@vincenzodavey6914]

I am a US citizen who grew up in Australia. Down under there has only ever been a sellers agent and depending on the state the commission is around 2.5% plus a set amount for the first $18000 of the sale price.

[@shantie007]

So how does a buyer’s agent in Australia get paid?

[@vincenzodavey6914]

There is no buyers agent 😎

[@vincenzodavey6914]

You solely deal with the listing agent.

[@MyButtercup]

Buyers have always paid for their agent, it is in the purchase agreement. Where did the seller get the closing funds?

[@tanyacrawford]

Brandon, don’t forget about Dual Representation that listing agents are happy to my opinion simply deceive buyers saying that dual representation is of a great value or same just like an exclusive buyer representation! One of the listing agents already got mad at me when I said that Dual representation is essentially no representation for the buyer, because of the conflict of interest when representing sellers best interest! Dual representation in this situation should become illegal in ALL STATES! But I don’t think it will…so yes, buyers are the ultimate losers here in this market of short inventory and inflated prices.

[@calvinj6526]

I agree with your comment, you can’t give both what they truly want if you have dual representation

[@DavidVsGoliath-vu5jq]

How was the buyer represented by the buyer agent when it was the seller paying the buyer agent commission? Don’t you work for the one that pays you?

[@nowyouknowrealestate5703]

@@DavidVsGoliath-vu5jq same way a litigant is represented in court. Each side always has their own representative. Just as each side in a RE purchase should. The attorneys collecting their fees from NAR right now did a great job for their clients and are getting paid from NAR (NAR would have been the seller in RE transaction scenario.)

[@calvinj6526]

@@DavidVsGoliath-vu5jq technically you right but the seller is paying ye commission of the seller agent and the seller agent/broker is splitting this said commission with the buyers broker because they helped them close the deal, the seller can always negotiate the commission with their representative. We can go into why it’s like this but they will draw it out way more

[@mdonace]

So when you say that people will wanna work directly with the listing agent, are you feeling that the listing agent is going to work with a buyer for free or that gonna be another negotiated commission to do that on the other side? And does this bring in to play dual agency? And what about you know in the past we were not allowed to negotiate our commissions within the sales contract due to the lendingrequirements not wanting that part of the contract. It’s gonna be part of the contract? This is very confusing.

[@Daniel-32822]

What is the difference between having a contract with buyers or wholesaling (selling the contract to the end buyer)

[@jefflee5620]

If I refer 3 real estate attorneys to a non-commission paying buyer as an agent should I establish a referral fee with the attorneys in advance for one of the three recommended attorneys I provided?

[@LivingAtlanta]

In Georgia it already has splits with buyers agents on the listing contract.

[@rebelde84]

Sucks for buyers because they will have to navigate the process without rep if they don’t have the $ to pay buyer agent

[@DavidVsGoliath-vu5jq]

The buyers agent was never really representing the buyer because you work for the one that pays you and the one paying the buyers agent was the seller.

[@theblondebomber]

CO’s like Redfin that left NAR can start advertising buyer commission for listings on Redfin listings advertised solely on their site. No more local MLS. It’s co’s w brand recognition or smaller ones that pay for advertising to reach consumers/buyers nationwide. They can use this as leverage to be the value proposition of why sellers should list w them. Local mom and pop shops that dominate the local market will have to explain how they can duplicate a buyer pool that reaches every possible buyer without an MLS/restrictions on advertising buyer agent compensation

[@carolroeske9654]

In the scenario where the buyer goes to listing agent, then dual agency comes into play? There is no additional commission for doing both sides of the transaction unless negotiated up front in the Listing Agreement, I'm assuming how that will go.

[@ml9557]

buyer can be represented by the listing agent at no additional comp to listing agent, or use flat fee service to represent them at a much reduced cost. (we will probably see this pop up soon).

[@Good-day-Diego]

Ultimately, buyers were always paying their agent’s commission, it was just embedded into the prices of the house they bought. It was kind of like a hidden tax, like most businesses, that ultimately gets passed on to the consumer (buyer). As a result, Buyer’s Agents didn’t have to overtly show their value (or lack thereof). Now, that hidden cost will be out in the daylight, and BAs will have to be on their game.

[@KAZHE63]

Exactly ~ the buyer pays the commission bc it’s been baked in the listing price. Anyone who has sold a house with a realtor knows this.

[@joshbryant7363]

How does overall commission get compressed? Most people have “5-6 percent” in their head NOT understanding completely how that is split…NOW getting a listing at 3.5-4 percent should be EASY (at least for a while, until this sorts itself out)…on the buy side, (personally), I’m not negotiating for any less than 3, and will try to get 3.5 where I can (and provide THAT level of service. At that point the commission paid out on a house is going to be 6 or MORE. Furthermore, the seller is saving nothing, (unless they go unrepresented when they go to buy…which I personally don’t see happening). The only way this saves anyone any money is if someone brings a whole new format of (particularly buying) to the market, where the transaction is handled almost like a title company transaction. Someone reviews the paperwork, gives their stamp of approval, and you’re done.

[@Technotranceism]

I can understand you as a buyer's agent wanting what you want, but I want to know how much is the seller's agent getting, because I'm not going to pay for them in the asking price. Example if the seller's asking for $275 taking into account 5% is going to their agent, I'm going to want to know this, and ask for the price reduced by 5% minimum.

[@TheBritishBlokeRealtor]

If a buyer has a buyers broker agreement signed surely that means they can't go directly to the listing agent?

[@BevinsGroup]

Some risk in listing agents writing offers for non-represented buyers... potential for litigation there if buyer is unhappy with the home or the process. Need very clear buyer non-representation agreements similar to the ones used in California to protect the listing agent. It's very easy for a buyer to assume implied agency through the actions of the listing agent if they're not careful what they say and do. In states that allow dual agency, then the listing agents worth their salt will charge buyers appropriately if the buyer says represent me.

[@InsideAZHomes]

Totally agree. If as a listing agent, we advise our seller that each party has it's own representation, and representation gets compensation, then we could negotiate the same amount that any other buyer's agent could obtain. In that scenario, it makes sense for a seller to go ahead and offer a co-broke up-front, giving them a competitive advantage over other sellers in their neighborhood who aren't offering anything. (I heard this very thing today on a great webinar from Sharran Srivatsaa, CEO of REAL Brokerage.)

[@BevinsGroup]

@@InsideAZHomes so true. And if it becomes a buyers market again sellers will be looking for anything they can do to incentivize buyers and agents to take a look at their homes.

[@InsideAZHomes]

@@BevinsGroup 100%. Gonna be a while before we see the next buyer's market, but if you've done this long enough then you know there'll be one coming down the pike eventually. 😉

[@realestatesalesatlantallc8763]

If buyers are unrepresented a lot of deals will fall apart for the sellers... Its the buyers agents that keep the deals together... Also as a listing agent we need to have the seller prepared for buyer concessions because that is to much work for the listing agent without compensation.a

[@MichelBron_]

Hey Brandon, what do you think of this? Let's all get together and ask our respective State Realtor Association to lobby our State Dept of Real Estate to DISALLOW DUAL REPRESENTATION like in Wyoming, Alaska, Vermont, Colorado, Florida, Maryland, Texas, and Kansas. Many buyers who cannot afford to pay commission will go to the seller agent who's seller may or may not agree to dual representation ? or whether the listing agent will get paid for also representing the buyer? or whether they even want to have the double liability? Either way, I personally believe buyers are always better served by having their own representation. Wyoming, Alaska, Vermont, Colorado, Florida, Maryland, Texas, and Kansas are the states that do not allow dual representation, and for good reasons. And these states are a huge precedent ! Soooooo, I think all Realtors together with their own State Dept of Realtors to lobby their Dept of Real Estate to disallow dual representation. This will protect the buyers and the sellers from any increasing listing agent's wrong doing and it will ensure that buyer agents continue representing buyers and get paid for their work and expertise. If 2 sellers and one attorney were able to completely overall our industry, why couldn't millions of Realtors and their rich state associations be able to do this, especially if the primary goal is to protect the sellers and the buyers from any wrong doing due to dual representation that will for sure explode in numbers and do will the law suits! What do you think?

[@Practitionher]

How do you all plan to assist the VA buyer , who can’t benefit from seller incentives?

[@jefflee5620]

If a buyer goes directly to the listing agent, can the LA ask for a commission from the buyer, and if the buyer declines to offer a commission, can the LA reject to represent the buyer but still honor an offer on the buyer's own recognicent? And is Dual agency optional for the agent?

[@Pug318]

Great podcast I’m glad I got to listen to. It definitely gave me a different perspective and I feel like this will be positive for full-time agents or for realtors that want to be full-time like you said a professional only industry with at first point of contact and agreement presented on both sides of the deal.

[@MinusEighty]

Why can't there be a non mls website that shows all the sellers offers to buyer's agents?

[@valleynomad]

Buyers will directly go to the listing agents? Is this called dual agency? Will the listing agents still ask buyers to pay the commissions for writing the offers?

[@justinsantos]

The car industry actually does have people who pay someone to represent them. They call them “leasing brokers” & sometimes those brokers will negotiate a fee with the dealership & other times they collect a fee from the customer. The leasing broker will pretty much do all the work & the customer doesn’t step foot in the dealership. It’s actually probably a pretty good example.

[@danborn2670]

Confused by the statement buyers with have no legal representation. So the agent acts in the capacity of attorney? Can they not hire a realestate attorney?

[@MrHealthfiend]

Real estate laws are serious and felony charges if violated... Licensed Realtors are legally culpable if something happens... So yes, we are a form of legal representation

[@michaelmurphy2067]

who shows the buyers the house and who nego. the deall while the attorneys are in court and off on the weekends

[@jeannotnelson4048]

does this apply in all Countries? I am in South Africa. When i work on other agents listings when i want to show a buyer, i always discuss the split with the listing agent. this works!

[@yuliya212]

NAR is indicating that buyer's agents have to have a written agreement. It always had to be that way, but ok, they are trying to make it more clear for some buyer agents and to stress the importance. My question is: how does this particular written agreement protect the agency, when we are now facing the fall-out of ignoring the previous written agreement - all those sellers had their listing agreements signed, and yet they won, therefore completely rendering those written listing agreements useless.

[@bcartertx]

Nothing is going to change, sellers will still pay buyer agents 2% - 3% commissions to bring them buyers and 5% - 6% commissions to sell overall. If you pay attention to the details, the only change is that agents cannot list the buyers agents commission in MLS. Listing agents are still able to share the commission they charge sellers and offer buyer agents commission to bring buyers. Nothing has been stated that commissions need to be lowered or that buyers need to pay their own commission, that is not going to happen. The only thing that will change is there will be a new way that listing agents communicate how much commission buyers agents are receiving. That will be the only change. Also New Construction Builders will continue to pay commissions to buyers agent to bring them buyers, so the resale market will need to stay in line and pay buyers agents as well. No major changes will happen.

[@rhondadubois1604]

No they won't. Who do you think started this Lawsuit?

[@thegreatestpursuit]

Or maybe you’ll have to find a real job that isn’t based on taking advantage of people while simultaneously adding zero value to the world

[@thundertagtur]

@@rhondadubois1604 the attorneys my friend. They started it. Not the home buyers. Attorneys will take 40% of the settlement. It was an obvious money grab

[@HomesWithAudri]

Yep! And for the sellers who struggle with this, they have always had the option to go FSBO. ✌️

[@HomesWithAudri]

Did you see the President's speech asking realtors to lower their fees to make more affordable housing? 😂

[@RubenMartinez-xg4gy]

I don’t see any listing agents representing buyers for free when they know that buyers agents can charge a commission

[@7SideWays]

Wait. BAs have been telling the public they are free for decades. Now they'll have to disclose and be exposed? Boo-hoo😅

[@alexdiazll]

Brandon, I think this will be very similar to wholesaling real estate where whole seller or realtor must have a realtor database

[@ryancarlsen5203]

I suggest that we look to the commercial real estate space. CoStar exists nation wide and does not have a procuring agent commission yet functions just fine and "buyers agents" are well compensated. Your comments regarding buyers agents also seem to suggest that there will never be a buyers market again. Right now listings are king but i remember a time when having real buyers was all that mattered, when every agent was carrying ten listings and hadn't had a single closing in months. By they way, i appreciate what you do and thank you for your work. No one has the answer right now on this issue, but i hope you are wrong on this one...

[@LIVECOLUMBUS]

These insights are excellent. Thanks Brandon!!

[@ciaracorr6015]

As a buyer I will tell you I would likely go directly to the agent. Reason being agents can write up the documents but I find they never are good at the follow up. When I put in my own offers I’m very organized and follow up at least once a week on every offer . Agents put in the offer and drop the ball.

[@adamblacketter]

It would be interesting to hear a commercial agent’s perspective on this.

[@davidburck8700]

It’s like this in the commercial space, some landlords/sellers pay buyer broker fee, some don’t. Just gotta figure it out. Granted, commercial actors have attorneys review contracts etc…. But these are savvy people, not end consumers.

[@ml9557]

many commercial brokers do not share commish fees at all. buyer agent fees are much less common in commercial. depends shop to shop.

[@MrHealthfiend]

You guys forgot to mention New Construction! Builders always take care of buyers agents and their clients... I believe the sellers shot themselves in the foot as new constructions will be much more desirable and it will be business as usual at Taylor Morrison and Lennar... So Sellers will have to compete on not offering incentives and ultimately the prices will drop or listing agents will struggle to close if new constructions are nearby...

[@InsideAZHomes]

Uhhhmmm, here in the PHX Valley a few years ago, almost ALL of the builders STOPPED paying an agent co-broke. They didn't need us to bring them a buyer, thus they cancelled us like yesterday's mail. Fast forward to post-pandemic in the past couple of years, guess what came back? The co-broke to buyer's agents, plus bonuses in some instances. Funny how supply and demand works that way. 🤔

[@BushyTop08]

The hidden bonuses to buyer brokers, paid by sellers/new constructions, will be a thing of the past.

[@SamanthaH]

In Texas our listing agreement requires us to put even the sold data in the MLS even if it’s off market, so I do wonder how this is all going to change and affect contracts/agreements… I would love to see the MLS done away with and have some better system… But at the same time I do wonder how would affect getting comps and good appraisals etc. etc. without one specific place to find data especially in a place like Texas which is a non-disclosure state

[@ASAP-Uncut]

Does this make “for sale by owner” properties obsolete? If I’m selling my own home, very few offers will come through.

[@rack9458]

No it doesn't. This changes nothing in regards to FSBO properties.

[@billaustin3827]

Buyer agency was established in the early 1990s after states passed laws to create it. Before then, the concept of "buyer beware" was prevalent, leaving buyers vulnerable to exploitation and without representation. In 1983, an FTC study found that 72% of buyers mistakenly believed the agent showing them homes represented their best interests. In the early 1990s, a class action lawsuit against Edina Realty in Minnesota also helped spur the establishment of buyer agency. In this case, buyers were working with agents in the firm to purchase a home, while other agents in the firm listed the property. At the time, the agent working with the buyer was technically considered a "Subagent to the Seller".

[@michaelhurley545]

Most buyers will simply contact the listing agent. Why would they pay thousands of dollars if they can get they're offer presented for no cost to them. Sense the listings agents are going to be working with the seller and the buyer what are agents and brokers going to charge to take a listing. Is the commission going to be the normal 4 to 6% or will it be like 3% now working with the buyer and seller..

[@JeepdudeFL]

Dual Agency is illegal in 8 states and the final DOJ approval could disallow it everywhere if they want to?

[@HomesWithAudri]

If buyers want to go to listing agents, listing agents either want nothing to do with limited agency or it's illegal in their state. For the agents who will do limited agency (needs to be agreed to by seller) they would want to get paid for the additional work they need to do on the buyer side anyway. That's separate two jobs.

[@glennp2938]

Sellers agents are the key to help from being a driver of low buyer agent compensation. If they can relay the importance of allowing a buyer compensation, then there will be more buyers seeing the house. The difficulty is to get a buyer to sign a compensation agreement without even stepping into a house. I have found Buyers without the knowledge of what that compensation agreement would be has been very apprehensive. They want to know the transparency as well without feeling that they need to foot the bill.

[@thefirm-yourrealestateconc2405]

The most important thing you said was this: If two buyers write offers for the same price and one is requesting 2.4% to pay their buyers agent and the other one is unrepresented, on a $500,000 home the difference between the two offers in terms of the seller's bottom line is $12,000. It's a no brainer which offer will be accepted. PLUS the listing agent won't have to negotiate vs another professional, so they will push for it as well. Buyers will NOT pay a buyer's agent when it HURTS their chances of winning a listing! I'm a strong believer that we ALL need to be able to articluate our value and show the consumer that we are on their side and that they have a better chance for success with us in their corner. But the buyer broker fee covers actual work being done on behalf of the buyer, only some of which has an impact on the bottom line of the transaction, but does cost the agent significantly in time and resources. Buyers will be happy to put the listing agent in charge of double paperwork so their offer can be worth 2.4%.

[@robertcalkins6120]

Shout-out to the DOJ for increasing listing agent pay as dual agency increases 😀👑😀👑

[@BethAnnLong]

however, dual agency isn't allowed in many states. It is here in Washington, but if the premis of the law suit was to save money, how does encouraging dual agency help them ? so many questions

[@robertcalkins6120]

@@BethAnnLongI'm in WA state too and I agree. Hopefully the NWMLS recent changes to be in the forefront of this help to mitigate any of these type of changes.

[@ml9557]

good point. but even if they collect a buyers fee it will be a small fraction of the seller's fee as the seller won't be paying it. In fact I will be adding that to my listing agreement. in case of dual agency seller will not be crediting any buyer agent fees..

[@holylabs]

So basically can have the same fee structure just cant advertise the fees on MLS. I don’t think much will change.

[@yoecardoza2764]

brother good video, just a quick note you interrupt a lot your guests, let them finish their statement

[@joelballard4955]

In the current process what incentive is there for a buyers agent to negotiate down the price? There isn’t. And that needs to be eliminated. I’m all for dedicated buyers agents who I pay out of pocket to negotiate the price down, and I will pay them a flat fee for service provided not off the price of the house. Same for selling a house. I’m all for a flat rate to a sellers agent to sell my house. Both the seller and buyer commissions need to be completely separated and have nothing to do with the actual house price. These ridiculous commissions need to go away.

[@Starfish2145]

You have had the option to hire a flat fee broker or discount broker for the last 30 years!

[@joelballard4955]

@@Starfish2145 I see no value in the system. A buyer, should pay for the buyers agent to negotiate down pricing and maximize the deal for the buyer. The buyers agent should never receive any compensation from a seller. It should be like two teams competing to get their client the best deal. Not the most money for their commissions.

[@InsideAZHomes]

How about a non-refundable, flat-fee retainer, up-front, at the time of listing? That covers the agent's time, marketing money (for YOUR home), etc. Then IF it sells, you pay them the remainder of the 'flat fee'. Sound fair? See, we're in one of the strangest industries there is; we can work for hours, days, weeks and months trying to get your home sold, pay for marketing, advertising, photos, open houses, etc. etc. and should you decide not to sell, for whatever reason, we get NOTHING. Does that sound fair?

[@kellyhaggerty5222]

Won't work unless buyers and sellers are equal in power. Right now the agents primary relationship is with one another and their second is with institutional money and big investors. We don't matter a fig.

[@DavidVsGoliath-vu5jq]

Exactly, the buyer’s agent was always working for the seller because it was the seller who was paying his commission and not the buyer. With the current commission structure the buyer was never really represented. Gaslighting the buyer at its finest.

[@kaystinebrink1220]

Selling home in late April early May ($400.00?). We had planned on 6% seller/buyer agent fee. We are old school and see a benefit to us for our buyer having a buyer agent. Should we still do this as a plus to the buyer so the house sells faster. Our thought is then to say we are giving little to none for repairs. Our seller agent says our home is move in ready.

[@livinginoklahomacityofficial]

Nothing will have changed by April / May. July when these changes take place, the only notable change is that buyer agent compensation simply can't be listed inside the MLS. Even then, nothing will stop a seller from offering a buyer's agent compensation in a variety of ways. Buyer's agents are NOT going away. My prediction is, that still a large amount of Sellers will be willing to allocated some funds to a buyer's agent who brings a buyer. It's the best marketing dollars that any seller could spend, in my opinion.

[@ml9557]

do a 3 month contract under current rules. if house does not sell, get a new agent or renew with current agent paying listing commish ONLY. gives you flexibility and time to adapt to the new rules. DO NOT DO A CONTRACT FOR MORE THAN 3 months in this type of environment.

[@livinginoklahomacityofficial]

@@ml9557 what exactly is this advice based on?

[@ml9557]

@@livinginoklahomacityofficial based on the new rules. listing agent fees in the listing agreement. no buyer agent fees will be stipulated as this is negotiated later if needed.

[@livinginoklahomacityofficial]

@ml9557 buyers' agents fees have literally never been stipulated. The only change currently proposed in the NAR proposal, is that any compensation to a buyer's agent cannot be advertised within the MLS. The commentor has said they are "old school", and see the value in paying for a buyer's agent. Sellers can do as they wish with this, as they always have - but this seller seems to believe that allocating compensation for a buyer's agent (in the event they produce a buyer who can close) has a benefit to their ability to sell. I happen to agree with that. Regardless, this is getting so distorted by the media that it's frankly causing confusion.

[@Amanda-yz1ib]

You hit the nail on the head at minute 11!! Buyers, especially first time home buyers, are the ones who will be effected the most. They can't afford to pay a buyer's agent out of pocket and if they can only ask up to a certain percentage in concessions it limits them to decide if they are going to pay an agent or buy down their interest. The Buyers are also caught again in the offer scenario because if they ask for the seller to pay their agent then they could lose to an offer that doesn't ask for that. The Seller ends up on top by having the entire upper hand in this scenario and kicking new buyers out of the game which they are already struggling to make it with these rates and inflation. Not to mention the lack of understanding what rights the Buyer has, how to properly select the right home, understanding the value of a home and the asking price, and knowing if an existing home is worth the expense based on the condition vs. value.

[@Technotranceism]

As a buyer, they should be buying within their means, and not at their maximum allowance for a loan. Example is, if you are able to get a $250k loan maximum, buy a home for $200k, or less.

[@rhondayoung8180]

28:41 Transparency is great, so that the buyer can decide if they want to hire you as an agent. There is another buyer to consider, the buyer who doesnt have the additional money to pay the commission. This buyer will be excluded from the honebuying process.

[@funwithoutstress]

You can't share the information ON THE MLS, but buyer's agents are going to call listing agents ahead of time and find out their compensation, or it could be shared off the MLS. Also, commissions could go up if Listing Agents charge 4-5% to list and then the Buyers Agent asks for an additional 2-3%. I can see first time home buyers getting screwed because of this, and landlords who own multiple properties being the biggest winners.

[@adamblacketter]

Commissions will not go down. In my opinion listing agents will charge the same. Most exclusive listing agents are listing agents by choice because they don’t wanna hop up and go show homes at all times of the day. They won’t do it for free. Buyers will have to get used to being interrogated to be sure they’re serious and qualified buyers before a listing agent will jump up and show the listing.

[@_ChristianVillarreal]

How do you think it will affect agents who do open house’s for other agents?

[@theowl3756]

Open house is BS anyways. The serious buyers make appointment. By the way, agents who do open houses for other agents can be paid by the hour.

[@mamabear8641]

So buyers can gain the home buying assistance and sign up with an agent with MLS access, could buyers agents request a referral fee from the seller agents if the compensation for buyers agent can't otherwise be negotiated? Both seller and buyer would loose representation, but it could possibly help buyers who really can't afford the cost. It obviously comes out of sellers agent compensation, anyway, but do consumer protections and ethics help to support that scenario?

[@mamabear8641]

This was an excellent review of the change, by the way. Thank you.

[@mincollagroup]

You know who doesn’t negotiate commission? Mortgage brokers ! (They don’t even have to disclose their commissions.)

[@ShulaTheDon13]

The Buyers don’t even know they are paying the Mortgage broker! So the seller can pay closing cost and pay the Lenders organization fee?! But not a buyers agent fee

[@mincollagroup]

Oh and Attorneys. 😉

[@dallasstudent1605]

They will be next! Keep in mind that we have another big lawsuit from the buyer's side and then an EXP lawsuit that will decide what category recruiters will be in. Is the company liable for recruiters? All this is far, far from over.

[@Technotranceism]

True, but I believe they are capped.

[@jbranche8024]

Sellers will learn about Redfin and Flat Fee MLS listing services and be tempted to try because of the attraction of saving thousands. That would be equal to saving 2.5%. That means sellers would be paying 3.5% and just have to do a little work. There will be more services to help sellers determine the FMV and understand the offers specifics.

[@kellyhaggerty5222]

From your lips to God's ears my friend!

[@michaelmurphy2067]

discount brokers come and go remember foxtons and help u sell both out of business wait till the comming buyers market

[@denisejaskot931]

It will be a win for sellers, until they become the buyers. I also believe homes will be on the market longer, it will be confusing for both parties at first. There will definitely be a bit of a messy transition. I also think sooo many agents will be exiting the industry, which will affect the crazy amount of marketing and coaching professionals. Also, most sellers will want to pay the lowest commissions possible. I definitely think commissions rates will go down. I also think that the MlS and other boards are going to suffer. However, for most, forms are the major reason for the boards. If you aren’t a member of NAR, etc. It is around $1,500 to get forms. There is so much. We will see. Since 2020 there have been major changes every year, so this is just another hit. Keep your head up, get the right mindset, and keep going. 😊

[@Pew_Meister]

Does it sound unrealistic for a situation where buyers add an agent commission to the loan?

[@Technotranceism]

I believe they've been doing that anyways, along with the brokerage fees.

[@michellegill1738]

In my opinion, I believe the buyers are going to go to the listing agent because they are already looking for first time homebuyer programs. The buyers agents are already asking for sellers concessions or seller credit. So you mean to tell me that buyers with no money that want the American dream are going to all of a sudden have that 2 to 3% to pay their agent on top of the 6% that they’re paying to close on the property, no way it’s going to come a time where only those who have money will be able to buy a house which kinda should be the thing if you have money then you should be in the area of purchasing a house, but if you don’t have money, you should be saving money to be able to purchase a house.

[@samueltaylor7447]

These are some chaotic times. My prediction is that a lot will happen with different companies, brokerages and associations trying different things. Though the low inventory will prop it up some I believe that amidst the chaos values will fluctuate drastically. I am glad I am not an appraiser going into this.

[@ashoksahu2642]

How much hours ( average) a buyer’s agent spends from starting to closing of a house by looking at last 10 settlements? Why not an agent can not work on hourly rates? I think all agents should consider working on an hourly basis rate. They should get paid for actual hours they work not a % of the settlement price .

[@ColeyColeMCole]

If I'm a listing agent, I'm still asking seller to pay buyer's agent. I'm also still putting in the MLS, please call with your buyer's agent questions. Ultimately paying buyer's agent from seller, all because I have no interest in representing both sides. I don't care for the extra legal liability that would make for a dual agency... more risk for the agent.

[@DarrellEssexdoubleteam]

I could see the buyers will negotiate the buyer commission into sales price. Say it’s 100k house. They offer 102500 with 2500 go to agent.

[@Technotranceism]

It's something along the line of how I paid for closing costs. I simply offered more than asking, and the seller agreed to cover the closing costs. Seller was compensated, and used the extra money over asking, instead of it directly coming out of my pocket. All I had to pay, was for the inspection, and appraisal, and the appraisal didn't even cost me anything.

[@citruscountyrealestateagent]

You show a home to your buyer, you have a buyers agreement with them, they find a home they can't live without and you write the offer with concession for your "fees" and the seller says no way, the list agent says I've already taken this for 2% I can't afford to split and it can't be financed. Now what?

[@QuaiChandler-nn5du]

Seller realizes if they wanna sell their home they have to pay more. Simple as that

[@KAZHE63]

As a buyer, I walk away. Not playing that game.

[@lyndastarwriter]

In house MLS - Brandon, you just hit the nail on the head. Two listings or 200 in house, agents in house can play the game.

[@sharz9439]

I totally agree. It's a great point at the 27.50 mark. !

[@WesleyDavis-j9o]

To the point of the possibility of having multiple listing platforms outside of the MLS. Wouldn't that open the door for more sellers to do a for sale by owner instead of having a listing agent... I feel like that's a big possibility.

[@shahkurk3103]

Hi, I need more podcasts or conversations like this Brandon. I am eager to hear more like this. Regards.

[@Isalazarcubillos]

I have a hard time when in a for sale by owner. All the buyer’s agents don’t care about anything else but the commission. They are not really looking for the buyers best interest as they only show them the homes where they get the highest commission.

[@BethAnnLong]

Brandon, so true. The public has NO idea what the commissions cover... how it all works. AND Do these same sellers who do not want to pay a buyers agent think they will be happy to pay a buyers agent when the show is on the other foot?

[@gr1629]

Another loser: Discount brokers. They now offer listing services for a flat fee knowing that they'll receive a 2.5% to 3% commision when their clients buy another home. That option is changing.

[@SO-vq7qd]

Good. They can go to helpp lol

[@kellyhaggerty5222]

"Aunt Sue" here. I will gladly negotiate with a knowledgeable professional for the services I want at an hourly rate, not commission. But, I just lost two houses where I would have paid $30k more than the house sold for, but the LA did the usual of set asking at 90% of comps, hold an open house, and find the unrepresented buyer where she can double her commission. So, the Seller got screwed but the LA gets to move on to the next. I have also had LA refuse to allow my BA to show properties unless I agreed to use certain financing companies or other vendors, or just refuse to let her show them at all. So long as that continues, we will be forced to just go to the LA, or not be able to buy. Alternatively, if there is collusion and LA refuse to show houses to unrepresented buyers, the opposite can happen. The problem is the industry functioning as a cartel, not just the commission structure.

[@SO-vq7qd]

Sounds like you didnt want to pay the commission and have it your way. It's interesting how the rest unfolded for you.

[@101realtor]

Need more details. Was the final offer chosen cash? Were there concerns about appraisal at higher offers? Timelines to get the deal closed that were advantageous to the seller? If that listing agent isn’t a broker, go direct to their broker. Unless he’s just as shady as you think the LA is, most brokers don’t want to be sued.

[@kellyhaggerty5222]

@@SO-vq7qd Nope, was more than willing AND was working with a buyer's agent. But I would have had to offer well, well over the value of the home to match an offer where the LA was getting a double commission, so $1.2, on a $600k house. If I had worked without a Buyer's agent, or been willing to screw my agent and just go around her to the LA, I could have gotten the house.

[@kellyhaggerty5222]

@@101realtor No, just double commission for the LA, nothing complicated. It happens over and over and over and the information is out there for anyone to pull from the county records office and a quick chat with one's network.

[@CaramelExpress]

@@kellyhaggerty5222 This is why real estate consumers should not comment on how Real Estate Professionals conduct business. You have a false view of the industry and it shows because you are not educated on it.

[@Dawn-tv1bk]

Does this new ruling also effect Canada?