Real Estate IS ABOUT Change FOREVER For Buyers!

Buying real estate in the US is about to experience a big change come August of 2024! As a result of the Sitzer-Burnett class action lawsuit settlement, potential home buyers will be required to sign a buyers representation agreement before an agent is allowed to show them any houses. The only way to see a house without signing an agreement will be to wait for an open house or contact the listing agent. Buyers may also have to pay their buyer agent at closing if the seller does not offer compensation. Offers of compensation will also be removed from the MLS making it much harder to determine if a seller is offering compensation which may complicate buyers' home searching budgets. While it has always been optional for sellers to offer compensation to buyers' agents, it is still yet unknown if these changes will lead to more sellers opting to not offer it.
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00:00 Real Estate Is Changing for Buyers
00:12 How The System HAS Been Operating
01:15 Compensation Offers To Be Removed From MLS
01:27 Required Buyer Rep Agreement
02:14 Who Pays the Buyer's Agent?
02:57 Why is Knowing the Amount of Compensation Important?
05:23 Will This Make Homes Prices Decrease?
05:45 Should You Just Go Through the Listing Agent?
06:31 Industry-Wide Uncertainty
06:50 Further Changes and Restrictions Possible
07:52 Viewer Questions
08:17 Are you Prepared (and able) to Pay Your Agent?

[@EmilyFarber]

BUYERS: Are you nervous about these changes to how real estate operates?

[@user-qd3hz5bw5x]

no not nervous but thanks for letting us no how much our system has predatory practices.

[@Ile-De-FranceSheepFarm]

Another profession where it is impossible to know what you will be paid for doing the work is farming. It sucks because we work so hard and then find out after we are done providing everyone food how much money we made or worse how much we lost. Imagine working for a loss and hearing everyone grumble about how much groceries cost. Livestock is 365 days a year work and then find out what you get paid at the end of the year.

[@EmilyFarber]

Great example! Thank you for watching.

[@chuckdawit]

This lady seems pretty ignorant on what the lawsuit did, now when we(buyer) negotiate fees to our agents, they will work for us and not the seller! Part of the lawsuit claimed anti trust violations because once any offer was made to the listing agent, the buyers agent no longer worked for the buyer because the he/she was getting paid by the seller. Generally speaking, this de incentivized the buyers agent. What I foresee happening is buyers agents will start offering flat rate services for paperwork, etc. because showing clients different listings isn't needed and not required by any agent. The roll of the buyers agent will be changed for the better.

[@EmilyFarber]

Actually that’s not correct. A buyer’s agent did not and does not work for the seller once an offer is written, and the seller does not pay the buyer’s agent. The seller agrees to a listing fee with the explicit understanding that the listing brokerage will share a portion of it with the brokerage that brings the buyer. The listing brokerage pays the buyer’s agent through a cooperative agreement. I am curious as to how you envision touring properties without a buyer’s agent? Will you wait for an open house and hope the property doesn’t go into contract by then? Will you contact the listing agent and hope they have time to show it to you? Will you rely on pictures and video walkthroughs?

[@chuckdawit]

@@EmilyFarber I think you need to read through the lawsuit and decision to understand what it was over. The lawsuit revolved around anti trust laws. Just because the seller and buyer's agents have agreements, doesn't make them legal! "I am curious as to how you envision touring properties without a buyer’s agent?" Interesting! So you think standards and norms can't be changed? I guess Realtors like you are different than Realtors like me!

[@EmilyFarber]

​@@chuckdawit I am familiar with the lawsuit, thank you, nor am I making this into a "you vs me type of Realtor" argument. Why are you upset by my questions? Of course norms can change--change is the only constant in this world.Buyer and seller agency agreements are COMPLETELY LEGAL--that fact that you claim to be an agent and you're saying they're not is highly concerning. The anti trust allegations stem from the argument that some listing agents artificially inflated commissions by leading sellers to believe the HAD to offer a commission to the buyer's agent and that there was a minimum that had to be met. There is no requirement for a seller to offer a buyer agent commission...though they often do because it tends to bring the greatest number of buyers.

[@chuckdawit]

@@EmilyFarber Doesn't seem like you really know the lawsuit, you've just read articles on it and listened to others talk about it! "Why are you upset by my questions?" Who said I am? I just put myself into the shoes of my clients, which many Realtors don't and can't because of a biased nature to their job. That's why you hear so many of them on KZbin, X, etc proclaiming nothing will change, while not fully understanding what the nature of the lawsuit was about to begin with.

[@EmilyFarber]

@@chuckdawit Well, Chuck, if not for reading articles, attending continuing eduction classes on the topic, reading the actual settlement and watching the news, how do you suggest other real estate agents becomes educated about the topic? Personally, I've not been proclaiming nothing will change, in fact, the video is ALL ABOUT changes that are quickly coming. Maybe you need to start your own KZbin channel and make videos about the topic so you can get your viewpoint out there.

[@saidchadly4845]

1st

[@sadie9527]

Good im not interested in paying a buyer agent Let them call me fsbo

[@EmilyFarber]

The good news is that has always been possible. Nothing is changing for the type of situation you’re hoping for.

[@user-qy7qx5lu1d]

Good ole home owners putting themself above legitimately everything else in the universe. Par for the course.