NAR Lawsuit Settled! Offering Buyer Agent Commissions in the MLS now Illegal!!!
Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes
NAR Lawsuit Settled! Offering Buyer Agent Commissions in the MLS now Illegal!!!
Most Popular Reply
Real Estate Broker 路 Coppell, TX 路 Member since 2011 路 5k+ posts 路 4k+ votes
2yHorrible day for consumers.
I will increase my commissions to sellers and encourage everyone left to do the same, to account for all the extra work we will now have to do. It was an awesome system for buyers to be represented as they got stuck so many times in the past, when they thought the listing agent was working for them, but they were really working for the seller.
Transparency was awesome, but now will be a "hidden" part of the transaction.
209 Replies
- 2yMelanie P.Pro MemberRental Property Investor 路 Member since 2023 路 1k+ posts 路 922 votes
It will be good for the industry. Commissions are too high and Realtor's do not do what they once did. Now the buyer does most of their own research.
All of the online home sites aggregate the data from MLS so it will be interesting to see if seller's agents actually stop listing on MLS as the NY Times predicts. I seriously doubt this will be a huge boon to the real estate market. Eliminating fees will not immediately translate to reduced prices. The market is just not that efficient. Nobody is thinking their home is worth less now, just that they can sell it more cheaply than before the settlement.
This will hurt a lot of long time Realtors who have built a business around this model and might not be ready to adapt.
- Real Estate Agent 路 Washington DC 路 Member since 2016 路 847 posts 路 656 votes2y
Quote from @James Wise:
The NAR settled all of their lawsuits for $418 million today. Lots of stuff to dig through in regards to all of it, but the biggest takeaway and change to the industry is that fact that buyer agent commission can no longer be offered through the MLS by the seller &/or listing agent.
My take; this is great. The real estate industry has long been plagued by 1,000's & 1,000's & 1,000's of low to no skill part time agents who do a handful of deals per year. I think this should wipe the majority of them out. Being a part time agent is no longer a viable "side hustle" because it requires a much higher level of skill to get listings than it does to tell your friends "work with me, it's free, sellers pay me"
I love it.
You can tell by the lack of response鈥檚 to this thread just how dominated by agents bp has become 馃ぃ
- Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes2y
Quote from @Jack Seiden:
Quote from @James Wise:
The NAR settled all of their lawsuits for $418 million today. Lots of stuff to dig through in regards to all of it, but the biggest takeaway and change to the industry is that fact that buyer agent commission can no longer be offered through the MLS by the seller &/or listing agent.
My take; this is great. The real estate industry has long been plagued by 1,000's & 1,000's & 1,000's of low to no skill part time agents who do a handful of deals per year. I think this should wipe the majority of them out. Being a part time agent is no longer a viable "side hustle" because it requires a much higher level of skill to get listings than it does to tell your friends "work with me, it's free, sellers pay me"
I love it.
You can tell by the lack of response鈥檚 to this thread just how dominated by agents bp has become 馃ぃ
Cutting the fat bro, it's gonna be good for those of us who operate on an elite level.
- Real Estate Broker 路 Coppell, TX 路 Member since 2011 路 5k+ posts 路 4k+ votes2y
Horrible day for consumers.
I will increase my commissions to sellers and encourage everyone left to do the same, to account for all the extra work we will now have to do. It was an awesome system for buyers to be represented as they got stuck so many times in the past, when they thought the listing agent was working for them, but they were really working for the seller.
Transparency was awesome, but now will be a "hidden" part of the transaction.
- Real Estate Broker 路 Coppell, TX 路 Member since 2011 路 5k+ posts 路 4k+ votes2y
It will also kill a lot of agents who were dependent on 3rd party lead providers for their business. I've always preached you better be figuring out a way to do your own lead generation and not to be dependent on someone else to do this for you. Poof that whole model goes away.
- Real Estate Agent 路 Los Angeles, CA 路 Member since 2018 路 2k+ posts 路 1k+ votes2y
It has it's pros and cons.
Having separate representation on both sides does make sense. You can make an argument that buyers pay the commissions anyways. It is the Seller net proceeds, but the Buyers give them the money to do it. And before people start saying that the Seller will just net more, that also isn't accurate. Anecdotally in my market when a Seller offers little to no buyer's agent commission, the home sits and sells for less.
There is also an economic perspective. If the Buyer's agent is left out, that's less "jobs" available.
Really what should be going on is there needs to be a higher barrier to entry to becoming an agent. I've worked with some great agents and I've worked with horrible agents. The horrible ones shouldn't be in the business, yet here they are.
The other problem is we are making all of these issues go across the board when each state works differently. For example, in California, a Buyer has to actively release contingencies throughout the process. Other states it happens automatically. Part of the reason why the first $1.8B lawsuit happened was because of poor disclosures in that state. California's forms are a little more detailed, which would have avoided the lawsuit altogether.
- Investor 路 Las Vegas, NV 路 Member since 2013 路 8k+ posts 路 10k+ votes2y
I didn鈥檛 have much of an opinion and actually skipped replying until I came up with a question.
Will be able to tell how this actually affects prices by studying new build homes?
.
The reason I ask is I bought my first new home last year and a few things stuck out.
1) My realtor made his easiest $18k EVER. I walked the model, said I want this I signed the builder鈥檚 contract and closed a month later. He has definately earned his pay selling my homes or helping me buy existing homes, but this was the higher pay and the least amount of work.
.
2) The price was exactly the same if I didn鈥檛 have a realtor and the builder kept the $18k.
.
So the question is will the houses be $18k cheaper or will it go straight to builder鈥檚 bottom line? I assume no buyer鈥檚 will use realtors on new builds? - Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes2y
Quote from @Bill B.:
I didn鈥檛 have much of an opinion and actually skipped replying until I came up with a question.
Will be able to tell how this actually affects prices by studying new build homes?
.
The reason I ask is I bought my first new home last year and a few things stuck out.
1) My realtor made his easiest $18k EVER. I walked the model, said I want this I signed the builder鈥檚 contract and closed a month later. He has definately earned his pay selling my homes or helping me buy existing homes, but this was the higher pay and the least amount of work.
.
2) The price was exactly the same if I didn鈥檛 have a realtor and the builder kept the $18k.
.
So the question is will the houses be $18k cheaper or will it go straight to builder鈥檚 bottom line? I assume no buyer鈥檚 will use realtors on new builds?Dude's like your Realtor will lose out and the builder's are going to increase their profits. For you, business as usual unless you want to pay someone like your Realtor to provide those services to you. But it doesn't look like you think he provided you with $18k worth of value so he's prolly gonna be SOL.
This is why I love this so much...Waaaaaay to many bottom feeders in the industry making $5k, $10k, $25k per year are all gonna be wiped out and those dollars are gonna roll right back up to Daddy where they belong.
- 2yEngelo RumoraBusiness MemberInvestor 路 Toledo, OH 路 Member since 2013 路 4k+ posts 路 2k+ votes
Quote from @James Wise:
The NAR settled all of their lawsuits for $418 million today. Lots of stuff to dig through in regards to all of it, but the biggest takeaway and change to the industry is that fact that buyer agent commission can no longer be offered through the MLS by the seller &/or listing agent.
My take; this is great. The real estate industry has long been plagued by 1,000's & 1,000's & 1,000's of low to no skill part time agents who do a handful of deals per year. I think this should wipe the majority of them out. Being a part time agent is no longer a viable "side hustle" because it requires a much higher level of skill to get listings than it does to tell your friends "work with me, it's free, sellers pay me"
I love it.
In Aussie we don't have such a commission structure.
There is only a listing/sellers agent commission.
Get's paid 2-3% and most homes are $1m+ as Aussie is expensive as F#$@
"Buyers agents" exist in Aussie and do "voodoo guru" promo with "Buying below market value" spiels, etc... and charge $10,000 - $15,000 AUD to help source off market deals, etc... and only get hired by investors that are looking for a "hidden" opportunity per se.
Might be a good idea picking up some EXP stock or HOUS stock on this news.
I'm sure over time they will find another way to charge and make up margin - Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes2yyou stole my Daddy quote from our texts lol.
Quote from @James Wise:
Quote from @Bill B.:
I didn鈥檛 have much of an opinion and actually skipped replying until I came up with a question.
Will be able to tell how this actually affects prices by studying new build homes?
.
The reason I ask is I bought my first new home last year and a few things stuck out.
1) My realtor made his easiest $18k EVER. I walked the model, said I want this I signed the builder鈥檚 contract and closed a month later. He has definately earned his pay selling my homes or helping me buy existing homes, but this was the higher pay and the least amount of work.
.
2) The price was exactly the same if I didn鈥檛 have a realtor and the builder kept the $18k.
.
So the question is will the houses be $18k cheaper or will it go straight to builder鈥檚 bottom line? I assume no buyer鈥檚 will use realtors on new builds?Dude's like your Realtor will lose out and the builder's are going to increase their profits. For you, business as usual unless you want to pay someone like your Realtor to provide those services to you. But it doesn't look like you think he provided you with $18k worth of value so he's prolly gonna be SOL.
This is why I love this so much...Waaaaaay to many bottom feeders in the industry making $5k, $10k, $25k per year are all gonna be wiped out and those dollars are gonna roll right back up to Daddy where they belong.
District Invest Group545 Reviews - Flipper/Rehabber 路 CA 路 Member since 2023 路 1k+ posts 路 1k+ votes2y
Quote from @Bruce Lynn:
Horrible day for consumers.
I will increase my commissions to sellers and encourage everyone left to do the same, to account for all the extra work we will now have to do. It was an awesome system for buyers to be represented as they got stuck so many times in the past, when they thought the listing agent was working for them, but they were really working for the seller.
Transparency was awesome, but now will be a "hidden" part of the transaction.
So now you're gonna charge more than 6% to sell? (genuine question, I have no opinion)
- Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes2y
Quote from @Russell Brazil:
you stole my Daddy quote from our texts lol.Quote from @James Wise:
Quote from @Bill B.:
I didn鈥檛 have much of an opinion and actually skipped replying until I came up with a question.
Will be able to tell how this actually affects prices by studying new build homes?
.
The reason I ask is I bought my first new home last year and a few things stuck out.
1) My realtor made his easiest $18k EVER. I walked the model, said I want this I signed the builder鈥檚 contract and closed a month later. He has definately earned his pay selling my homes or helping me buy existing homes, but this was the higher pay and the least amount of work.
.
2) The price was exactly the same if I didn鈥檛 have a realtor and the builder kept the $18k.
.
So the question is will the houses be $18k cheaper or will it go straight to builder鈥檚 bottom line? I assume no buyer鈥檚 will use realtors on new builds?Dude's like your Realtor will lose out and the builder's are going to increase their profits. For you, business as usual unless you want to pay someone like your Realtor to provide those services to you. But it doesn't look like you think he provided you with $18k worth of value so he's prolly gonna be SOL.
This is why I love this so much...Waaaaaay to many bottom feeders in the industry making $5k, $10k, $25k per year are all gonna be wiped out and those dollars are gonna roll right back up to Daddy where they belong.
I redistributed it. Much like I'm going to redistribute the commissions of 1,000's of hack agents right back into my pocket.
- Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes2y
Quote from @James Wise:
Quote from @Russell Brazil:
you stole my Daddy quote from our texts lol.Quote from @James Wise:
Quote from @Bill B.:
I didn鈥檛 have much of an opinion and actually skipped replying until I came up with a question.
Will be able to tell how this actually affects prices by studying new build homes?
.
The reason I ask is I bought my first new home last year and a few things stuck out.
1) My realtor made his easiest $18k EVER. I walked the model, said I want this I signed the builder鈥檚 contract and closed a month later. He has definately earned his pay selling my homes or helping me buy existing homes, but this was the higher pay and the least amount of work.
.
2) The price was exactly the same if I didn鈥檛 have a realtor and the builder kept the $18k.
.
So the question is will the houses be $18k cheaper or will it go straight to builder鈥檚 bottom line? I assume no buyer鈥檚 will use realtors on new builds?Dude's like your Realtor will lose out and the builder's are going to increase their profits. For you, business as usual unless you want to pay someone like your Realtor to provide those services to you. But it doesn't look like you think he provided you with $18k worth of value so he's prolly gonna be SOL.
This is why I love this so much...Waaaaaay to many bottom feeders in the industry making $5k, $10k, $25k per year are all gonna be wiped out and those dollars are gonna roll right back up to Daddy where they belong.
I redistributed it. Much like I'm going to redistribute the commissions of 1,000's of hack agents right back into my pocket.
SummerSlam is in Cleveland this year. We going?
District Invest Group545 Reviews - Real Estate Broker 路 Coppell, TX 路 Member since 2011 路 5k+ posts 路 4k+ votes2y
Might be a good idea picking up some EXP stock or HOUS stock on this news.
Brokerage stocks are going to get trashed. EXPI down 10% today. Compass down 14%. HOUS down 11%, Z down 13%. If anything, maybe pick up homebuilder stocks, when they don't have to put up with savvy realtors negotiating hard on behalf of their clients and encouraging them to do inspection and negotiate repairs and reworking bad workmanship and trying to pass that off as industry standard work. Plus if they're not paying commission, they probably just add 5% to their 5% margins.
- 2yEngelo RumoraBusiness MemberInvestor 路 Toledo, OH 路 Member since 2013 路 4k+ posts 路 2k+ votes
Quote from @Bruce Lynn:
Might be a good idea picking up some EXP stock or HOUS stock on this news.
Brokerage stocks are going to get trashed. EXPI down 10% today. Compass down 14%. HOUS down 11%. If anything, maybe pick up homebuilder stocks, when they don't have to put up with savvy realtors negotiating hard on behalf of their clients and encouraging them to do inspection and negotiate repairs and reworking bad workmanship and trying to pass that off as industry standard work. Plus if they're not paying commission, they probably just add 5% to their 5% margins.
Did well with Toll Brothers and picked them up during Covid.
SEO and key-word will be vital now moving forward for "buyers agents".
Picked me up some domain names also lol
One for the Columbus Cartel also hehe
Who wants it? hehe
Along with all other most expensive suburbs in the US 馃檲
- Real Estate Broker 路 Coppell, TX 路 Member since 2011 路 5k+ posts 路 4k+ votes2y
Quote from @Bill B.:
Sounds like your agent didn't do you any favors. I normally save my clients thousands on new builds. They must build way better houses in Vegas than they do in Dallas. I'll bet in most of the new homes I've sold here, there is thousands of $ worth of rework needed that a buyer without a great realtor would get suckered with as "standard" for the industry. When the client has a picky and demanding realtor that work gets redone....and most of the inspection callouts get fixed or discounted. Recently sold resale that was 2 years old. Now out of the main warranty. I can tell the seller didn't have a realtor when they bought it and didn't do an inspection and they got to do thousands worth of fixes to sell it to my buyer....and that is all stuff I would have had the builder fix if they would have been my client when they purchased.
- 2yJay HinrichsBusiness MemberReal Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
Quote from @Bruce Lynn:
Quote from @Bill B.:
Sounds like your agent didn't do you any favors. I normally save my clients thousands on new builds. They must build way better houses in Vegas than they do in Dallas. I'll bet in most of the new homes I've sold here, there is thousands of $ worth of rework needed that a buyer without a great realtor would get suckered with as "standard" for the industry. When the client has a picky and demanding realtor that work gets redone....and most of the inspection callouts get fixed or discounted. Recently sold resale that was 2 years old. Now out of the main warranty. I can tell the seller didn't have a realtor when they bought it and didn't do an inspection and they got to do thousands worth of fixes to sell it to my buyer....and that is all stuff I would have had the builder fix if they would have been my client when they purchased.
well being a broker for 50 years I am still confused what this all means @James Wise when i started in the business in 75 I only sold land and I never did co op deals I sold my own listings.
as a builder currently half of our sales come from other agents.. My wife sells the others ( which is nice of course). So does this mean we have to remove the BAC ( other brokers commish) from the MLS.. ?? And hope that the buyers find us ?
Bruce I am going to brag a little.. WE had a home inspection yesterday on one of my new builds my wife attended along with her buyer so she is double ending it.. The client was there as well the whole time and he is in the industry Appliances sales. The Inspector could not find ONE defect or item for us to correct.. Said it was the best built home that he has ever inspected and felt bad charging the buyer the inspection fee . We usually get a few small items from the inspectors but its nothing like the production builds and I agree what I have seen in TX MS and other southern states.. Just sayin.
But still confused on this ruling.. I am in DC right now so will call the wife and ask her if her brokerage put out a memo today.
- 2yEngelo RumoraBusiness MemberInvestor 路 Toledo, OH 路 Member since 2013 路 4k+ posts 路 2k+ votes
Quote from @Jay Hinrichs:
Quote from @Bruce Lynn:
Quote from @Bill B.:
Sounds like your agent didn't do you any favors. I normally save my clients thousands on new builds. They must build way better houses in Vegas than they do in Dallas. I'll bet in most of the new homes I've sold here, there is thousands of $ worth of rework needed that a buyer without a great realtor would get suckered with as "standard" for the industry. When the client has a picky and demanding realtor that work gets redone....and most of the inspection callouts get fixed or discounted. Recently sold resale that was 2 years old. Now out of the main warranty. I can tell the seller didn't have a realtor when they bought it and didn't do an inspection and they got to do thousands worth of fixes to sell it to my buyer....and that is all stuff I would have had the builder fix if they would have been my client when they purchased.
well being a broker for 50 years I am still confused what this all means @James Wise when i started in the business in 75 I only sold land and I never did co op deals I sold my own listings.
as a builder currently half of our sales come from other agents.. My wife sells the others ( which is nice of course). So does this mean we have to remove the BAC ( other brokers commish) from the MLS.. ?? And hope that the buyers find us ?
Bruce I am going to brag a little.. WE had a home inspection yesterday on one of my new builds my wife attended along with her buyer so she is double ending it.. The client was there as well the whole time and he is in the industry Appliances sales. The Inspector could not find ONE defect or item for us to correct.. Said it was the best built home that he has ever inspected and felt bad charging the buyer the inspection fee . We usually get a few small items from the inspectors but its nothing like the production builds and I agree what I have seen in TX MS and other southern states.. Just sayin.
But still confused on this ruling.. I am in DC right now so will call the wife and ask her if her brokerage put out a memo today.
Mate,
It will probably be like in Aussie where folks that want a buyers agents will need to source 1 themselves and negotiate a fee with the buyers agent.
Buyers agents will also have to start promoting their services independently instead of "feeding" of info and commission split from listing agent.
I need to buy more domain names haha.
What are some high end suburbs in your neck of the woods mate?
I believe a common search moving forward will be (Region name "buyers agent") like it is in Aussie.
And we will know how important that 1st page of Google search can be
Kiss - 2yNicholas L.Pro MemberFlipper/Rehabber 路 Pittsburgh 路 Member since 2018 路 6k+ posts 路 5k+ votes
yep i'm confused too. i only buy off market and i only sell on, so i'll continue to not use agents on the buys, and i'll continue to use agents on my ~1 a year sells. i am not too big a fish though (yet)
- Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes2y
@James Wise my knee-jerk reaction when I read the e-mail this morning was "Huh, so your telling me it's about to get a whole lot easier to negotiate for seller contributions".
I see the opportunity in it. But I know what I'm doing. I honestly didn't even get to thought of how at least 50% of agent's are probably in a corner crying right now wondering what they will do, or calling Starbucks to see if they can get there job back, lol.
The buyer agency thing is a non-issue for me, I always operated in a manner where I deliver supreme value that client's seek-out and are happy to pay for, knowing I take it as a personal mission to keep it ROI and deliver a negotiated deal that meets and exceeds that expectation. Those like us operating this way, just just gave us back the keys to the kingdom.
I'm excited for this improvement. I'm excited to have this empowerment in negotiations.
The "Zillow-babies" are gonna be howling though.
Gonna be a lot of "fake-news" on what this all means as retail sheeple-agents freak out over having to use there heads for more than a hat rack, and doing what they do, blame the market....
- Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes2y
Quote from @Nicholas L.:
yep i'm confused too. i only buy off market and i only sell on, so i'll continue to not use agents on the buys, and i'll continue to use agents on my ~1 a year sells. i am not too big a fish though (yet)
The big impact on your sell side is it REALLY matters who is listing, how there listing, because they can't just throw it up on MLS and sit back and wait for $ to fall from the sky. There gonna have to do actual WORK for it now. Comprehending dual agency, driving buyers not buyer agents but BUYERS, and doing those interactions.
Your going to see real fast in results who is good at this and who was only good at getting listings under contract.
I'd suggest for an early insight to know who's-who int his regard, look at listing agents % of transactions sold off-market. Anyone ~50%, there is a reason for that, good chance it's because there good at driving buyers not just posting a listing.
- Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes2y
Quote from @Russell Brazil:
Quote from @James Wise:
Quote from @Russell Brazil:
you stole my Daddy quote from our texts lol.Quote from @James Wise:
Quote from @Bill B.:
I didn鈥檛 have much of an opinion and actually skipped replying until I came up with a question.
Will be able to tell how this actually affects prices by studying new build homes?
.
The reason I ask is I bought my first new home last year and a few things stuck out.
1) My realtor made his easiest $18k EVER. I walked the model, said I want this I signed the builder鈥檚 contract and closed a month later. He has definately earned his pay selling my homes or helping me buy existing homes, but this was the higher pay and the least amount of work.
.
2) The price was exactly the same if I didn鈥檛 have a realtor and the builder kept the $18k.
.
So the question is will the houses be $18k cheaper or will it go straight to builder鈥檚 bottom line? I assume no buyer鈥檚 will use realtors on new builds?Dude's like your Realtor will lose out and the builder's are going to increase their profits. For you, business as usual unless you want to pay someone like your Realtor to provide those services to you. But it doesn't look like you think he provided you with $18k worth of value so he's prolly gonna be SOL.
This is why I love this so much...Waaaaaay to many bottom feeders in the industry making $5k, $10k, $25k per year are all gonna be wiped out and those dollars are gonna roll right back up to Daddy where they belong.
I redistributed it. Much like I'm going to redistribute the commissions of 1,000's of hack agents right back into my pocket.
SummerSlam is in Cleveland this year. We going?
- Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes2yMy questions are after reading this (excerpt at bottom)
Quote from @James Hamling:
Quote from @Nicholas L.:
yep i'm confused too. i only buy off market and i only sell on, so i'll continue to not use agents on the buys, and i'll continue to use agents on my ~1 a year sells. i am not too big a fish though (yet)
The big impact on your sell side is it REALLY matters who is listing, how there listing, because they can't just throw it up on MLS and sit back and wait for $ to fall from the sky. There gonna have to do actual WORK for it now. Comprehending dual agency, driving buyers not buyer agents but BUYERS, and doing those interactions.
Your going to see real fast in results who is good at this and who was only good at getting listings under contract.
I'd suggest for an early insight to know who's-who int his regard, look at listing agents % of transactions sold off-market. Anyone ~50%, there is a reason for that, good chance it's because there good at driving buyers not just posting a listing.
1. If the MLS cannot list the buyer agent commission, but it appears it can be made known,
2. If a seller is not paying a buyers agent fee or limits it to say 1%, then would the buyer will need to come out of pocket to that buyers agent?
I can see less buyers agents, and some may require an upfront fee.
As James mentions, this will separate the good agents from the poorly trained ones.
n addition to the financial payment, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals
7e investments53 Reviews - Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes2y
Quote from @Jay Hinrichs:
Quote from @Bruce Lynn:
Quote from @Bill B.:
Sounds like your agent didn't do you any favors. I normally save my clients thousands on new builds. They must build way better houses in Vegas than they do in Dallas. I'll bet in most of the new homes I've sold here, there is thousands of $ worth of rework needed that a buyer without a great realtor would get suckered with as "standard" for the industry. When the client has a picky and demanding realtor that work gets redone....and most of the inspection callouts get fixed or discounted. Recently sold resale that was 2 years old. Now out of the main warranty. I can tell the seller didn't have a realtor when they bought it and didn't do an inspection and they got to do thousands worth of fixes to sell it to my buyer....and that is all stuff I would have had the builder fix if they would have been my client when they purchased.
well being a broker for 50 years I am still confused what this all means when i started in the business in 75 I only sold land and I never did co op deals I sold my own listings.
as a builder currently half of our sales come from other agents.. My wife sells the others ( which is nice of course). So does this mean we have to remove the BAC ( other brokers commish) from the MLS.. ?? And hope that the buyers find us ?
Bruce I am going to brag a little.. WE had a home inspection yesterday on one of my new builds my wife attended along with her buyer so she is double ending it.. The client was there as well the whole time and he is in the industry Appliances sales. The Inspector could not find ONE defect or item for us to correct.. Said it was the best built home that he has ever inspected and felt bad charging the buyer the inspection fee . We usually get a few small items from the inspectors but its nothing like the production builds and I agree what I have seen in TX MS and other southern states.. Just sayin.
But still confused on this ruling.. I am in DC right now so will call the wife and ask her if her brokerage put out a memo today.
Big winners in this are going to be Zillow and people like me or @Russell Brazil , elite brokers who have an elite level of skill and offer an elite level service but expect to be paid accordingly.
Big losers here are going to be the NAR and the mega brokerages like Keller Williams & Re/Max etc....The NAR and these brokerages make their money on the fees collected from the 1,000's & 1,000's & 1,000's of side hustle agents who are producing minimal revenue. Current setup right now is friendly enough for 1,000's & 1,000's of these side hustle agents to pay their dues and fees and give it a go. Granted the annual fail rate is already about 90%, it's easy enough to earn a couple bucks to keep the next crop of hopefuls coming in every year to replace last year's failures. The skill it takes to play the game has increased enough to stop a lot of that so NAR and the mega brokerages are going to have a lot less folks to get those fees from.
- Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes2y
Quote from @James Hamling:
@James Wise my knee-jerk reaction when I read the e-mail this morning was "Huh, so your telling me it's about to get a whole lot easier to negotiate for seller contributions".
I see the opportunity in it. But I know what I'm doing. I honestly didn't even get to thought of how at least 50% of agent's are probably in a corner crying right now wondering what they will do, or calling Starbucks to see if they can get there job back, lol.
The buyer agency thing is a non-issue for me, I always operated in a manner where I deliver supreme value that client's seek-out and are happy to pay for, knowing I take it as a personal mission to keep it ROI and deliver a negotiated deal that meets and exceeds that expectation. Those like us operating this way, just just gave us back the keys to the kingdom.
I'm excited for this improvement. I'm excited to have this empowerment in negotiations.
The "Zillow-babies" are gonna be howling though.
Gonna be a lot of "fake-news" on what this all means as retail sheeple-agents freak out over having to use there heads for more than a hat rack, and doing what they do, blame the market....
Same, I've been operating on the model of making buyers pay to work with me for years. The sheep are gonna get slaughtered and we're gonna get fat bro. As a savage and unapologetic capitalist, this may be my favorite day in my real estate career.
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