The Dark Side Of The Nar Settlement - Homebuyers Beware!

Understanding the NAR Settlement Impact. Join me as I delve into the intricacies of the Buyer Broker Agreement, now mandated following the groundbreaking NAR settlement. In this revealing video, I bring you inside an actual buyer consultation where the details of this agreement are laid bare.
Following recent legal developments in the real estate industry, homebuyers are now required to sign a Buyer Broker Agreement before a real estate agent can show them a property. But what does this mean for you, the buyer? How does it impact your costs, obligations, and ultimately, your home purchasing journey? Watch this video to find out.

[@melaniebrown8052]

Not only was this entertaining, this was very informative. Thank you for highlighting this, it isn’t spoken of for public knowledge! Looking forward to learning more updates from you!

[@NativesunrealtyJacksonville]

When this rule goes into effect in July many people will be surprised.

[@viralsheddingzombie5324]

The settlement simply brings all Realtor members into compliance with the antitrust laws. No more special treatment for NAR and its affiliates. That is a good thing because the law is meant to protect everyone, not just one dominant faction of the industry. The listing broker should have no problem giving co-op compensation to the buyer's broker outside the MLS. If not, the listing broker can compete to get both sides of the transaction (dual agency or divided agency), which is enhanced profitability for the listing broker. No business entity should expect an unfair advantage, which has been the status quo for NAR members for decades.

[@NativesunrealtyJacksonville]

I completely disaagree that the verdict in this case proved allegations of collusion and price fixing. Ketchmark fell short in presenting the facts and law, but excelled in finding testimony that tugged at the heartstrings of jurors. As an accident injury lawyer he is an expert in maximizing the emotional impact of the story being told. Find a victim, show how the injury impacted their life and lives of family members, and cause the jury to feel pity for the plaintiff. It's a formula that works very well. This is the same method used in this case and had a profound influence on the jury's decision.. In the case, Ketchmark brought compelling testimony from ordinary people struggling to buy homes. The jury was composed of people who wanted to or had bought homes. Struggling to buy a home is a story everyone can relate to. And more importantly, everyone would like to blame someone for the high price of housing. Ketchmark was successful in vilifying real estate agents and cited inflated commissions as the reason for high home prices. This was the real reason for the verdict. NAR intended to appeal and most likely would have prevailed, however, NAR lacked the resources to cover the over 5 billion dollars it needed for the appeal bond. Also, once the news of the verdict broke, ccopycat lawsuits began springing up all over the country. NAR really had no choice but to settle since the settlement included protection from these copycat lawsuits. If anything was proven here it is how deeply flawed our legal system really is.

[@chrisstrong2215]

Great post!! Don't listen to agents. Especially this one. He's just butthurt they all have to get a real job.

[@rachaelchambers5482]

I did not realize that VA buyer would not even have the option of a buyers agent. That’s awful. I’m helping first time VA buyers right now. It’s been a ruff transaction. I don’t know how they would have gotten through it with no help.

[@NativesunrealtyJacksonville]

VA Manual M26-7, Chapter 8, page 8-8, Topic 3, Fees and Charges The Veteran Borrower Cannot Pay: "Fees or commissions charged by a real estate agent or broker in connection with a VA loan may not be charged to or paid by the veteran-purchaser". The VA does not prohibit the use of an agent, just paying for it. Since we will have to include our compensation in the Buyer Broker Agreement, and cannot receive payment in excess of the amount contained in the agreement, we would have to work for free.

[@RoryVanucchi]

👍

[@NativesunrealtyJacksonville]

Thank you for the thumbs up Rory. So glad you enjoyed the video.

[@Dave-zl2ky]

Most importantly, sellers will be surprised when very few potential buyers show up. If you can't kick the tires, then they will not show up.

[@NativesunrealtyJacksonville]

I think buyers will just call the listing agent and see the home. Won't be as easy as having a buyers agent arrange showings for them but at least they will be able to see the home.

[@Dave-zl2ky]

@@NativesunrealtyJacksonville Which will turn into silently into dual-agency.

[@mellowllama]

@@NativesunrealtyJacksonvilleLove the video, absolutely hilarious and correct. In my opinion, it will benefit buyer’s agents. Process will change to the following; buyer’s agents sign the agreement upfront for 3% (or more?). If buyer can’t afford, buyers will only be able to buy with concessions negotiated by agent. Agents benefit because now it’s always 3 and 3, or at least transparent to the buyer’s agent and in their control.

[@NativesunrealtyJacksonville]

@@mellowllama Ilike the way you think. I hope you are right.

[@NativesunrealtyJacksonville]

@@Dave-zl2ky Here in Florida, dual agency is illegal. The buyer will simply sign a No Brokerage Relationship Notice.

[@richardtaylor6341]

Ive seen better acting in school plays

[@NativesunrealtyJacksonville]

I hope so. I think it is safe to say we are not on the radar of any hollywood talent scouts. 😆

[@richardtaylor6341]

@NativesunrealtyJacksonville well, based on the info they won't be looking for you when it's time to buy or sale a home either. I entirely disagree with the top comment, which is probably one of your agents....not entertaining and is disinformation. Seems you are butthurt by NAR

[@NativesunrealtyJacksonville]

@@richardtaylor6341 The people that are most hurt by this NAR settlement are home buyers. Not me. Just curious, what information contained in the video do you consider disinformation? BTW, no one commenting here is one of my agents.

[@richardtaylor6341]

@NativesunrealtyJacksonville the lawsuit was brought by a homebuyer. By definition, having the judge rule in their favor means that the buyer is not the one who is hurt most. Who is hurt most is the buyers agent. There won't be anyone who only works with buyers anymore because the old adage of "list to live" is now on steroids. Brokers won't be hurt, sellers agent's won't be hurt, and buyers won't be hurt, because brokers will hire some cute little girl and pay her minimum wage to go open the keybox. The logic used on your part is faulty, the title of your video is based on it...thus, whether intentional or not, it's misleading info. Likely intentional clickbait but I wasn't going to accuse that, i go with the potential for honest ignorance first, but not many of those folks are successful in sales... So to answer specifically, it was nothing specific, it's the entire bs narrative.

[@NativesunrealtyJacksonville]

@@richardtaylor6341 You are wrong about that. The lawsuit was initiated by a home seller in Missouri. The plaintiffs are a group of Missouri home sellers. Better learn about something before making a comment about disinformation. You are also mis-informed. Unless a buyer signs a buyer broker agreement that obligates the buyer to pay a brokerage fee to the buyer broker, they are not getting into a house no matter how cute the door opener is. I will give you the same benefit of the doubt and say you are honestly ignorant.

[@bobjeffrey8863]

OMG,,, Sooo silly and of course FAKE and FUNNY,,,,,, BUT wait.. Just show homes that pay buyers agents,, 50% of "Agents" will quit, That's not bad at all

[@NativesunrealtyJacksonville]

Thank you for seeing the humor in this Bob. 😄 I tried to mix a little levity in with a rather serious subject here to make a point. Thank you for watching.

[@chrisstrong2215]

Untrue video. All this did is having the buyer pay for his own agent instead of the seller paying for the buyers agent. How is it fair that a seller must pay for a buyer who wants an agent? Should a buyer have to pay for his agent and the sellers agent?

[@NativesunrealtyJacksonville]

Thanks for commenting Chris. In reality, under the current rules, the seller is not the one paying the buyers agent. The listing agent pays the buyers agent with a portion of the fee the seller pays the listing agent for selling the home. This makes sense since the buyers agent will be doing the work on the buyers side of the transaction. If the listing agent brings the buyer themselves, then the listing agent does not have to pay a buyers agent and keeps whatever the seller agreed to pay. The new rules mandate that, if a buyer chooses to be represented by a buyers agent, then they must enter into a buyer agency agreement before seeing any homes. This agreement obligates them to pay their agent. Adding more costs to the buyer will reduce the number of buyers able to buy a home. This added expense will, in effect, block them from purchasing their home until they can save up more money to cover the downpayment, closing costs, and now a buyers agent fee.

[@chrisstrong2215]

@@NativesunrealtyJacksonville I don't ever recall a listing agent paying for anything. I don't ever recall any agent paying for anything other than being compensated thousands for what? I recall having to pay 6% in closing costs for something anyone could do on their own. My 12 year old son found my last home online. As far as contracts, any real estate attorney that you have to acquire already can do those. If a buyer really wants an agent to look online for them then they can pay for their own agent at closing. It's included in the loan like everything else. Just like sellers have done for decades. I have dealt with thousands of agents. Haven't met one that can properly negotiate or has sales experience. I'm sorry to inform you but, the internet has made real estate agents obsolete. Happy endeavors.

[@NativesunrealtyJacksonville]

@@chrisstrong2215 Your lack of recall does not surprise me. You should probably get some help with that. Your inability to comprehend my clear and factual explanation may also point to a need for remedial classes in reading comprehension. BTW. I have to ask. If you could have sold your home on your own then why didn't you? Were you just feeling generous. I tell everyone who syas that REALTORs get paid way too much for doing nothing that they should get a license and start making the big bucks. If you do, and you are good enough, I may let you come work for me. I'm sorry to inform you that without real estate agents there would be no MLS. The MLS was created by REALTORs for REALTORs. I personally feel that it was a mistake for NAR to allow sites like Zillow, trulia, homes.com, etc to access our data. Without the MLS all those public search sites would disappear. Then the internet would be useless in finding homes wouldn't it. Real Estate is a relationship business. As long as there are people buying and selling homes there will be a need for real estate agents. Thanks for watching and commenting. Have you subscibed?

[@chrisstrong2215]

@@NativesunrealtyJacksonville Lmao. Typical agent. Ignorant, delusional, mentally ill. Maybe you should get some help for that. The world and the MLS would actually do just fine without agents and politicians alike. Definitely would improve the world. Both are definitely the aforementioned. Btw, agents are the ones that HAD a strangle hold on the industry. They won't show a house for sale by owner. Guess that all changes now. God Bless America! Capitalism does work!