The NAR Settlement Reversed Decades of Real Estate Progress

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@beachbumchix6399 9 ай бұрын

Hey Andy. You can’t say 0% and still collect BA or rental agent commission if the landlord/seller offers one. Whatever you put in the buyer agreement is the max you will be allowed to receive even if co-op is offered. I do like your idea of making the agreement non-exclusive if that is permitted. I think it takes some of the pressure off.

@samrei6223 9 ай бұрын

I think the key will be IF you can put say for example 6% commission, if the seller will not pay I’ll only charge you $X…but no one know yet until its official

@beachbumchix6399 9 ай бұрын

The way it has been explained to us at eXp is that you have to be specific and whatever is in the agreement is the max you can receive, even if the seller/landlord is offering more.

@AndyColeman 9 ай бұрын

Wait who said that? My understanding is the buyers agreement will be between you and the buyer, not the seller. So if the seller decides to pay you then that has nothing to do with the buyer agreement. I'm curious where you heard that you can't collect a commission based on the buyer agreement?

@AndyColeman 9 ай бұрын

Yeah you can just put language in that says if seller pays a commission then buyer does not have to. That should solve that problem

@samrei6223 9 ай бұрын

@@AndyColeman yeah if you’re allowed to just leave it open ended like that it won’t really change much..just have to see what the new docs look like in July I suppose. It’s going to be weird to have to have a rental person sign a “renters agent agreement” that part I wonder if anyone will even think about doing that or not…I feel like we live in a forgotten piece of the industry 😂

@cyberspace1175 9 ай бұрын

Andy in my market the landlord won’t pay the commission. They expect the tenant to pay it along with the deposits. The tenants have an incentive to find apartments without a brokers fee. Do you have any clients that are successful when the tenant has to lay the broker fee?

@AndyColeman 8 ай бұрын

Actually yes, in Massachusetts the tenants pay the broker fee which is typically half a month's rent commission. So it just depends on what Market you're in. I personally think it's going to stay the same for every Market. So whatever's the norm in that market. I don't think anything's going to change. Like in Texas or South Florida? For example. We get half a month's rent commission so I think that's just going to be the same but we're just going to have to add it to the contracts

@kitbiggz6135 9 ай бұрын

Good strategy man. Will be interesting to see how everything pans out. Could be chaos for the first couple months.

@AndyColeman 9 ай бұрын

Thank you! I think this will be the best way to still make money as an agent but we'll see what actually happens in July. A new norm will eventually happen and yeah I think it might take at least 6 months to level out

@obscurehero 9 ай бұрын

The cost was always on the transaction. Assuming commissions were completely independent from home price, it would still cost the average buyer $150/mo for the 6% levied by agents on their new home. They always paid. It just wasn't transparent. You're right. It won't bring prices down in the short term, but it will reduce rent seeking. Agents will have to work for the commissions they're asking. "If all the listing agents stick together" kind of like the NAR? This is the very thing that was demonstrated to be anticompetitive and will open you up to legal action.

@AndyColeman 9 ай бұрын

I believe what screwed over the NAR was brokerages that had specific policies in place that they couldn't go under 6% for their commission. That was wrong. It's a negotiation and there should be no rules in place by brokerages dictating commission. I personally only do 5% so if my brokerage told me I had to do 6% i would not stay at that firm because I feel like that is actually collusion.

@jenniferramer 9 ай бұрын

Thanks. They’ve made such a mess. How do you have an open house! Every buyer will have to sign before entering…?!! lol 🤦‍♀️

@AndyColeman 9 ай бұрын

I actually never thought about an open house.... I wouldn't imagine that applies since you aren't representing them at the time they are attending your open house so that I wouldn't worry about. But yeah everything else will be extra work and more of a headache

@tracydayton7403 9 ай бұрын

My thoughts exactly, ty

@AndyColeman 8 ай бұрын

Agreed!

@rulistening7777 9 ай бұрын

In reality... The Seller should pay the Buying Agent. And the Buyer should pay the Listing Agent. Why ? Because without buyers there is No Sale. The seller needs buyers to be shown their property. The seller needs the buyers agent to convince the buyer to make an acceptable offer. And... The buyers need the listing agent to convince the seller to accept the buyers' offer. One hand washes the other. And this is why the 50/50 split has worked so well for about fifty years. It is silly to insist on fixing what isn't broken.

@AndyColeman 8 ай бұрын

Exactly, I agree 100%. It's just a cycle that goes around. Eventually the buyer becomes the seller and has to do what the seller did before. They actually made it this way for a reason before there were buyer agents. The listing agent would represent both parties and there was a conflict of interest so that's why they started doing this in the first place, so they're basically just reversing 60 years of progress

@solidunsprage5164 9 ай бұрын

Can you do a video dedicated to how it will affect rentals?

@AndyColeman 8 ай бұрын

Absolutely I can. It will only be speculation though because I'm really not sure how it will. I don't think much will change though

@mindfulmusic7931 9 ай бұрын

Dude your not getting 6% anymore. Good luck

@AndyColeman 9 ай бұрын

I actually never ask for 6%, only 5% because I believe that is fair. And usually it's split so I only receive 2.5% which I Believe is also fair. You don't agree?

@GeorgeMiller-yf8ly 9 ай бұрын

there is no reason I need to pay a 6% commission on my 1.5 mil home. Explain how you deserve $90K? WTF do you even do? You should get paid minimum wage like a guy working the fryer at McDonalds. Most buyers are finding the properties themselves. Then they contact a realtor. Who most of the time screws up the contract and the lawyer has to re do it.

@AndyColeman 9 ай бұрын

That's interesting you think that way. You can list the house yourself, you don't have to use an agent. I can make an entire 45 min video on everything an agent does and your mind would be blown by the amount of work and effort it takes to list a house and to work with a buyer to sell a house. I do agree though that 6% is too much, I feel 5% is more reasonable. Some agents put hundreds of hours into a sale stretched out over a year or two (working with a buyer). We lose deals all the time so we work for free. The average agent annual pay is $50k, if agents were overpaid why is the average annual pay so low?

@paytonreid5077 9 ай бұрын

I’m a broker and people don’t need to pay 6%. Attorneys do just as much work and get paid much less. Change and adapt bro.

@solidunsprage5164 9 ай бұрын

Will this affect doing rentals?

@AndyColeman 8 ай бұрын

From everybody I've talked to including executives of exp Realty and brokers. They seem to think that rentals are going to become more essential than ever.

@solidunsprage5164 9 ай бұрын

Are they going to stop paying me half a months rent in commission if i bring them renters?

@AndyColeman 8 ай бұрын

It's ultimately up to the owner of the property. I don't think they're going to because tenants cannot afford to pay the commissions so the properties would just sit on the market for a lot longer meaning it would cost the owner even more anyways