NAR failed us all!

[Elvis Occ]

NAR capitulated and settled. Billions of dollars gone! Membership money? On top of that, NAR have not said or sent any instructions to his members on how to safely proceed with a real estate commission beginning July 2024. Do's and don'ts? New Forms? Regulations?

[Marcus Auerbach]

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

[Marcus Auerbach]

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

Really? Is she getting a lot of questions about the settlement or just pro-active? I bareley get asked and our clients don't seem to care much (at the moment). I think we have to wait and see how this shakes out, but I don't think sellers are very wise to cut buyer agency fee. That's like a car dealership not offering financing anymore. Wisconsin has always been very transparent, maybe that's why..

I also think that buyers have a greater need for an agent than sellers. Both emotional and factual/analytical support. One thing it will not do is lower home prices. It will make it harder to buy for sure. And it may wipe out a lot of hobby agents, which is a good thing.

[Guy Gimenez]

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

I believe the simplest answer is for the VA to make changes to their rules for veterans who are buying. If they truly want to help veterans, they shouldn't put them at a disadvantage in the free market system. I think there will be many changes to come on the loan side of the equation for all types of financing.

[Guy Gimenez]

NAR didn't fail the industry...the industry failed the industry by fighting change and the free market system at every turn. As a broker and investor, I believe the changes will, in the long term, benefit the consumer and make the industry better. Free markets work...let the consumer decide.

[Jay Hinrichs]

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

 Let's be honest, in most situations like this, is the buyer Agent really providing all that much value that the buyer would not get if they just wrote the offer through your wife? Most won't admit it, but the reality is no, not really. The Vets who do find value in buyer representation can pay for it if they feel it's worth it, but I would imagine most won't and they'll just go to the listing Agent like people do in most every other country and it's probably going to work out just fine.

90% of the time the buyer Agent is really just doing everything they can do to push the buyer to sold. It's not like the majority of them are out there pulling their buyers out of bad deals due to some extreme level of skill they have. And guess what, the few that are doing things like that, they aren't the ones who care about these NAR suits. They are the ones looking forward to bottom feeders getting worked out.

JIm I think the issue especially in todays market buyers might look at 10 15 20 houses before they pull the trigger are they really going to call 15 to 20 listing agents ??? when on buyers agent can get them into all those houses.  I see the issue one of functionality of how is this really going to work.

 I don't see how this is a problem. Buyers have a choice, call 20 Agents, or if they want the convenience of 1 Agent, pay for it. No different than cooking your own dinner or paying for the convenience of having a Chef at the restaurant cook it.

ya sounds good but your changing culture that has been going on for the buyers entire lifetime. I am talking resi now not investor or commercial .. The person/family that might buy 2 3 homes in a lifetime. 

[James Wise]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

 Let's be honest, in most situations like this, is the buyer Agent really providing all that much value that the buyer would not get if they just wrote the offer through your wife? Most won't admit it, but the reality is no, not really. The Vets who do find value in buyer representation can pay for it if they feel it's worth it, but I would imagine most won't and they'll just go to the listing Agent like people do in most every other country and it's probably going to work out just fine.

90% of the time the buyer Agent is really just doing everything they can do to push the buyer to sold. It's not like the majority of them are out there pulling their buyers out of bad deals due to some extreme level of skill they have. And guess what, the few that are doing things like that, they aren't the ones who care about these NAR suits. They are the ones looking forward to bottom feeders getting worked out.

JIm I think the issue especially in todays market buyers might look at 10 15 20 houses before they pull the trigger are they really going to call 15 to 20 listing agents ??? when on buyers agent can get them into all those houses.  I see the issue one of functionality of how is this really going to work.

 I don't see how this is a problem. Buyers have a choice, call 20 Agents, or if they want the convenience of 1 Agent, pay for it. No different than cooking your own dinner or paying for the convenience of having a Chef at the restaurant cook it.

ya sounds good but your changing culture that has been going on for the buyers entire lifetime. I am talking resi now not investor or commercial .. The person/family that might buy 2 3 homes in a lifetime. 

 Change is good. If we didn't change culture Rosa Parks would still be stuck on the back of the bus.

[Jay Hinrichs]

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

 Let's be honest, in most situations like this, is the buyer Agent really providing all that much value that the buyer would not get if they just wrote the offer through your wife? Most won't admit it, but the reality is no, not really. The Vets who do find value in buyer representation can pay for it if they feel it's worth it, but I would imagine most won't and they'll just go to the listing Agent like people do in most every other country and it's probably going to work out just fine.

90% of the time the buyer Agent is really just doing everything they can do to push the buyer to sold. It's not like the majority of them are out there pulling their buyers out of bad deals due to some extreme level of skill they have. And guess what, the few that are doing things like that, they aren't the ones who care about these NAR suits. They are the ones looking forward to bottom feeders getting worked out.

JIm I think the issue especially in todays market buyers might look at 10 15 20 houses before they pull the trigger are they really going to call 15 to 20 listing agents ??? when on buyers agent can get them into all those houses.  I see the issue one of functionality of how is this really going to work.

 I don't see how this is a problem. Buyers have a choice, call 20 Agents, or if they want the convenience of 1 Agent, pay for it. No different than cooking your own dinner or paying for the convenience of having a Chef at the restaurant cook it.

ya sounds good but your changing culture that has been going on for the buyers entire lifetime. I am talking resi now not investor or commercial .. The person/family that might buy 2 3 homes in a lifetime. 

 Change is good. If we didn't change culture Rosa Parks would still be stuck on the back of the bus.

ya know digging back into my memory ( which becomes harder and harder these days) I recall there is a specific listing term.. Like "exclusive agency" where no commission is being offered by the listing broker.. So that already exists. at least in the fill in the blank MLS forms. just very rare to see them. I think in other words telling agents if you want to get paid to sell this particular listing your client has to pay you.

[James Wise]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

 Let's be honest, in most situations like this, is the buyer Agent really providing all that much value that the buyer would not get if they just wrote the offer through your wife? Most won't admit it, but the reality is no, not really. The Vets who do find value in buyer representation can pay for it if they feel it's worth it, but I would imagine most won't and they'll just go to the listing Agent like people do in most every other country and it's probably going to work out just fine.

90% of the time the buyer Agent is really just doing everything they can do to push the buyer to sold. It's not like the majority of them are out there pulling their buyers out of bad deals due to some extreme level of skill they have. And guess what, the few that are doing things like that, they aren't the ones who care about these NAR suits. They are the ones looking forward to bottom feeders getting worked out.

JIm I think the issue especially in todays market buyers might look at 10 15 20 houses before they pull the trigger are they really going to call 15 to 20 listing agents ??? when on buyers agent can get them into all those houses.  I see the issue one of functionality of how is this really going to work.

 I don't see how this is a problem. Buyers have a choice, call 20 Agents, or if they want the convenience of 1 Agent, pay for it. No different than cooking your own dinner or paying for the convenience of having a Chef at the restaurant cook it.

ya sounds good but your changing culture that has been going on for the buyers entire lifetime. I am talking resi now not investor or commercial .. The person/family that might buy 2 3 homes in a lifetime. 

 Change is good. If we didn't change culture Rosa Parks would still be stuck on the back of the bus.

ya know digging back into my memory ( which becomes harder and harder these days) I recall there is a specific listing term.. Like "exclusive agency" where no commission is being offered by the listing broker.. So that already exists. at least in the fill in the blank MLS forms. just very rare to see them. I think in other words telling agents if you want to get paid to sell this particular listing your client has to pay you.

 Think about this, the commission on a $500k house is probably like $30k. That is a tremendous amount of money for 2 agents. If you can make that kind of money per transaction you're going to be filthy freaking rich right? Then why are so many agents poor?

Reason so many agents are poor even though they can make that kind of money on a closed deal is because the buyers and sellers who do close are just subsidizing the market for all of the buyers and sellers who don't close. When you hire an agent you aren't paying for your deal to close, you are paying for all of the time, money and effort the agents put into all of the people who did not close as well as getting your deal to close. 

As of right now, 90% of agents still fail even though current buyers and sellers who do close subsidize all of those who don't.

Now conversely, you've got someone like me. I started my agent career in 2013 as a part time agent. I lived in an 900 sq ft house. Today I've got an 11 car garage. BUT during this whole time my average commissions on each deal have only been about $5,000.

Why was I able to turn $5k commissions into millions but most agents can't turn $30k commissions into a viable middle class career? Efficiency. I figured out early on how to eliminate the buyers and sellers who would take up time and not lead to income. Most agents cannot do this due to how the current system is setup.

The new system will solve this problem. Thus making things better for those who are actually closing. Thus making it so actual buyers and sellers no longer need to subsidize those who steal time from agents.

[Jay Hinrichs]

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

 Let's be honest, in most situations like this, is the buyer Agent really providing all that much value that the buyer would not get if they just wrote the offer through your wife? Most won't admit it, but the reality is no, not really. The Vets who do find value in buyer representation can pay for it if they feel it's worth it, but I would imagine most won't and they'll just go to the listing Agent like people do in most every other country and it's probably going to work out just fine.

90% of the time the buyer Agent is really just doing everything they can do to push the buyer to sold. It's not like the majority of them are out there pulling their buyers out of bad deals due to some extreme level of skill they have. And guess what, the few that are doing things like that, they aren't the ones who care about these NAR suits. They are the ones looking forward to bottom feeders getting worked out.

JIm I think the issue especially in todays market buyers might look at 10 15 20 houses before they pull the trigger are they really going to call 15 to 20 listing agents ??? when on buyers agent can get them into all those houses.  I see the issue one of functionality of how is this really going to work.

 I don't see how this is a problem. Buyers have a choice, call 20 Agents, or if they want the convenience of 1 Agent, pay for it. No different than cooking your own dinner or paying for the convenience of having a Chef at the restaurant cook it.

ya sounds good but your changing culture that has been going on for the buyers entire lifetime. I am talking resi now not investor or commercial .. The person/family that might buy 2 3 homes in a lifetime. 

 Change is good. If we didn't change culture Rosa Parks would still be stuck on the back of the bus.

ya know digging back into my memory ( which becomes harder and harder these days) I recall there is a specific listing term.. Like "exclusive agency" where no commission is being offered by the listing broker.. So that already exists. at least in the fill in the blank MLS forms. just very rare to see them. I think in other words telling agents if you want to get paid to sell this particular listing your client has to pay you.

 Think about this, the commission on a $500k house is probably like $30k. That is a tremendous amount of money for 2 agents. If you can make that kind of money per transaction you're going to be filthy freaking rich right? Then why are so many agents poor?

Reason so many agents are poor even though they can make that kind of money on a closed deal is because the buyers and sellers who do close are just subsidizing the market for all of the buyers and sellers who don't close. When you hire an agent you aren't paying for your deal to close, you are paying for all of the time, money and effort the agents put into all of the people who did not close as well as getting your deal to close. 

As of right now, 90% of agents still fail even though current buyers and sellers who do close subsidize all of those who don't.

Now conversely, you've got someone like me. I started my agent career in 2013 as a part time agent. I lived in an 900 sq ft house. Today I've got an 11 car garage. BUT during this whole time my average commissions on each deal have only been about $5,000.

Why was I able to turn $5k commissions into millions but most agents can't turn $30k commissions into a viable middle class career? Efficiency. I figured out early on how to eliminate the buyers and sellers who would take up time and not lead to income. Most agents cannot do this due to how the current system is setup.

The new system will solve this problem. Thus making things better for those who are actually closing. Thus making it so actual buyers and sellers no longer need to subsidize those who steal time from agents.

but do you actually have 11 cars ??  :)  congrats on the new digs.. for me where I am contemplating getting back into sales as my building career winds down. ( my capital partner program continues of course) But that is, like you and very efficient .  I want to go back to my roots.. I want to get back into selling Ranch lands in the West. You know big trophy ranch's and I have to think buyers that are buying 5 to 50 million dollar ranch's will not have a problem with a buyer broker arrangement It takes a ton of time and effort to sell those bad boys and its for sure a specialty niche.. you have to know a lot about Old western land laws  Water rights Timber rights Mineral rights you have to be very good with surveys and how to read USGS quad maps ( although google earth helps a lot) U have to understand hunting and fishing regs etc etc. . And of course cow calf carrying capacities. As Opposed to cap rates and are the tenants paying 900.00 a month going to trash my cash flow rental :) We are of course on the same page regarding agents I have had hundreds come through my brokerages and 80 /20 has been alive since day one.. 20% make 80% of the revenue.. And of course the last 25 years saw the rise of the team concept. So mega agents  like you that created a team within a brokerage became  or are very well off running a bizz inside the business.. My wife will probably just hang it up after the great run she has had as a resi agent and will be my daughter in Vegas team member and assist her in selling all those big time props she sells..

[James Wise]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

 Let's be honest, in most situations like this, is the buyer Agent really providing all that much value that the buyer would not get if they just wrote the offer through your wife? Most won't admit it, but the reality is no, not really. The Vets who do find value in buyer representation can pay for it if they feel it's worth it, but I would imagine most won't and they'll just go to the listing Agent like people do in most every other country and it's probably going to work out just fine.

90% of the time the buyer Agent is really just doing everything they can do to push the buyer to sold. It's not like the majority of them are out there pulling their buyers out of bad deals due to some extreme level of skill they have. And guess what, the few that are doing things like that, they aren't the ones who care about these NAR suits. They are the ones looking forward to bottom feeders getting worked out.

JIm I think the issue especially in todays market buyers might look at 10 15 20 houses before they pull the trigger are they really going to call 15 to 20 listing agents ??? when on buyers agent can get them into all those houses.  I see the issue one of functionality of how is this really going to work.

 I don't see how this is a problem. Buyers have a choice, call 20 Agents, or if they want the convenience of 1 Agent, pay for it. No different than cooking your own dinner or paying for the convenience of having a Chef at the restaurant cook it.

ya sounds good but your changing culture that has been going on for the buyers entire lifetime. I am talking resi now not investor or commercial .. The person/family that might buy 2 3 homes in a lifetime. 

 Change is good. If we didn't change culture Rosa Parks would still be stuck on the back of the bus.

ya know digging back into my memory ( which becomes harder and harder these days) I recall there is a specific listing term.. Like "exclusive agency" where no commission is being offered by the listing broker.. So that already exists. at least in the fill in the blank MLS forms. just very rare to see them. I think in other words telling agents if you want to get paid to sell this particular listing your client has to pay you.

 Think about this, the commission on a $500k house is probably like $30k. That is a tremendous amount of money for 2 agents. If you can make that kind of money per transaction you're going to be filthy freaking rich right? Then why are so many agents poor?

Reason so many agents are poor even though they can make that kind of money on a closed deal is because the buyers and sellers who do close are just subsidizing the market for all of the buyers and sellers who don't close. When you hire an agent you aren't paying for your deal to close, you are paying for all of the time, money and effort the agents put into all of the people who did not close as well as getting your deal to close. 

As of right now, 90% of agents still fail even though current buyers and sellers who do close subsidize all of those who don't.

Now conversely, you've got someone like me. I started my agent career in 2013 as a part time agent. I lived in an 900 sq ft house. Today I've got an 11 car garage. BUT during this whole time my average commissions on each deal have only been about $5,000.

Why was I able to turn $5k commissions into millions but most agents can't turn $30k commissions into a viable middle class career? Efficiency. I figured out early on how to eliminate the buyers and sellers who would take up time and not lead to income. Most agents cannot do this due to how the current system is setup.

The new system will solve this problem. Thus making things better for those who are actually closing. Thus making it so actual buyers and sellers no longer need to subsidize those who steal time from agents.

but do you actually have 11 cars ??  :)  congrats on the new digs.. for me where I am contemplating getting back into sales as my building career winds down. ( my capital partner program continues of course) But that is, like you and very efficient .  I want to go back to my roots.. I want to get back into selling Ranch lands in the West. You know big trophy ranch's and I have to think buyers that are buying 5 to 50 million dollar ranch's will not have a problem with a buyer broker arrangement It takes a ton of time and effort to sell those bad boys and its for sure a specialty niche.. you have to know a lot about Old western land laws  Water rights Timber rights Mineral rights you have to be very good with surveys and how to read USGS quad maps ( although google earth helps a lot) U have to understand hunting and fishing regs etc etc. . And of course cow calf carrying capacities. As Opposed to cap rates and are the tenants paying 900.00 a month going to trash my cash flow rental :) We are of course on the same page regarding agents I have had hundreds come through my brokerages and 80 /20 has been alive since day one.. 20% make 80% of the revenue.. And of course the last 25 years saw the rise of the team concept. So mega agents  like you that created a team within a brokerage became  or are very well off running a bizz inside the business.. My wife will probably just hang it up after the great run she has had as a resi agent and will be my daughter in Vegas team member and assist her in selling all those big time props she sells..

 lol na, just 2 cars. Not even a car guy. But we've got a lot of acreage & a whole bunch of kids so we need to store a lot of toys......ATV's, dirt bikes etc...

[Account Closed]

Quote from @Glen Wiley:

Didn't a number of large brokerages settle as well? My understanding was that NAR was one of many:

[Dana Georgiou]

Quote from @Jay Hinrichs:

Quote from @Marcus Auerbach:

What would have been the point? It was the right thing to do. We have always been very transparent in Wisconsin, but it was not fair to experienced agents getting the same % as someone who just got licensed or is a hobbyist. 

Now we get to set our own buyer side comission, which is great! As long as it was "free" buyers often worked with a family member, now that it costs money buyer agents will have to interview to get the job, which means a lot of agents will be gone. The old system has protected the incompetent and kept them alive. That's gone.

Who looses? First time buyers. Sellers are not going to make their listing 3% cheaper, which means to save up 3% more. For an FHA buyer that's double. That means more renters.

And also new investors. Quite frankly, we do so much coaching with new investors under the umbrella "buyer representation" and not getting paid for it. I am basically giving away 15 years of experience away for free. Contractor connections, which have cost me thousands to build, because I had to go through a lot of bad ones. Rehab tips I have accumulated over 15 years or BRRRR.

Now the market can decide if they want to work with someone who has a lot of personal experience as an investor, or - if they want to be self representing and don't need an agent at all. 

my wife's company has had no less than 2 webinars a week addressing this and how to manage it they had the Lawyer for the Oregon association give a one hour presentation.  What I want to know is how are we going to get our veterans into homes ????  right now we have a buyer for one of our homes and my wife listed their home and the buyer is VA .. so its fine today but that VA buyer is buying a 950k home my wife has listed and then the client is buying one of my new builds at 850k. take the buyer and put them on the side line and now you have almost 2 mil in transactions that dont happen.. MS Lori is listing agent and will double end the house they are buyer ( well its our own house :)  but anyway you get the point.. Veterans need to be protected here.. I know Jim Wise thought on FHA buyers and thinks they should save more money.. But our Veterans No way they sacrifice to much to not let them use their VA loan because of this lawsuit.

There is already a work in progress that the VA lending guidelines will need to be changed to allow for a buyers sales commission to be paid out of seller concessions. But, as we all know, the government agencies do not work at a fast pace, and I would expect there will be a delay in the guideline changes to the enactment of the new commission requirements of the settlement.

I'm also @Elvis Occ concerned that you haven't received any information, webinar or otherwise from your broker.  My husband is a licenesed realtor in the state of Texas and the Brokerage he works for has had weekly updates via email as well as webinars on what they think can be expected and how they will proceed.  Hold your broker accountable.  

I agree at @Marcus Auerbach this most definitely will weed out Realtors who are hobbyists or not invested in being an educated professional in their field of choice.  I actually see that communication between listing agents and buying agents get engaged much sooner and that can be good for all parties.