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Message
re: National Association of Realtors agrees to end 6% commissions
Posted on 3/16/24 at 11:33 am to rundmcrun
Posted on 3/16/24 at 11:33 am to rundmcrun
quote:
Hourly rate. No reason this shouldn't happen.
Unless you’re a lawyer or a doctor, this doesn’t work for brokers or real estate agents
You’d have to change hats and call yourself a consultant and then you can bill by the hour or a flat fee
0
Posted on 3/16/24 at 12:02 pm to lsuconnman
quote:
buyers agents will intentionally ignore any MLS listings where the seller declines to engage in the customary process.
They can ignore them all they want. But buyers essentially have access to the MLS thanks to Zillow, Realtor, etc.
Even if you are relocating to a new town, and you’re asking an agent for location and school district advice, I’m sure almost everyone is doing their own search through one of the major listing websites.
Zillow and electronic/keyless lockboxes have made realtors virtually unnecessary. You need a photographer, an inspector, attorney and title company, which combined cost a small fraction of what you pay in commissions to realtors. The day they are essentially obsolete can’t come soon enough
This post was edited on 3/16/24 at 12:03 pm
Posted on 3/16/24 at 1:44 pm to deltaland
quote:
There shouldn’t be a set standard or rate.
A realtor who is established and provides exceptional service should be able to charge 10% for it. A new realtor looking to get a foot in the door and find customers should be able to charge 2%
I agree.
quote:
One new rule prohibits agents’ compensation from being included on listings placed on local centralized listing portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers
This is laughable.
I never even looked at the commission rate when selecting properties' to show clients. If they are approved for 400K why the frick would anyone in their right mind show them a 500K home??
It doesn't matter if the 500K home was 99.9999 % commission, they can't get financed for the purchase.
This post was edited on 3/16/24 at 1:47 pm
Posted on 3/17/24 at 8:08 am to TitleistProV1X
quote:
Or they could do like most every countries and charge an hourly rate for their services depending on how much you use them.
Man you would lose 80% of realtors. The fact of the matter is they are paid an asinine amount of money per hour
__________________________________________________
If they go to an hourly rate, then realtors will be charging for every minute that they are on their laptop at the coffee shop, playing on Facebook.
Or they could do like most every countries and charge an hourly rate for their services depending on how much you use them.
Man you would lose 80% of realtors. The fact of the matter is they are paid an asinine amount of money per hour
__________________________________________________
If they go to an hourly rate, then realtors will be charging for every minute that they are on their laptop at the coffee shop, playing on Facebook.
Posted on 3/17/24 at 8:09 am to rundmcrun
quote:
Hourly rate. No reason this shouldn't happen.
Just to be clear, hourly rates are terrible ways for people to get paid, in any profession.
Posted on 3/17/24 at 9:23 am to Supermoto Tiger
As mentioned above, I agree that many more legal issues will be popping up for dual agency because this will force cash strapped buyers to enter in to agreements without representation. Can't wait for threads about how the seller screwed them on a deal and they are now seeking legal help.
Why would anyone enter in the to biggest financial transaction in their life without some sort of consultative help? Similar to the agency professional athletes enter in to. Is the current percentage based approach flawed? Yes...but this approach is throwing the baby out with the bath water.
This change, however well intentioned, will hurt the buyers AND sellers. Posters on this board have no idea how dumb the general population is when it comes to financial intelligence....much less a complex transaction like buying a house. It's unfortunate but it's true.
(bring on the downvotes)
Why would anyone enter in the to biggest financial transaction in their life without some sort of consultative help? Similar to the agency professional athletes enter in to. Is the current percentage based approach flawed? Yes...but this approach is throwing the baby out with the bath water.
This change, however well intentioned, will hurt the buyers AND sellers. Posters on this board have no idea how dumb the general population is when it comes to financial intelligence....much less a complex transaction like buying a house. It's unfortunate but it's true.
(bring on the downvotes)
Posted on 3/17/24 at 9:30 am to rmc
quote:
About to be? shite it's been brutal for over a year now.
Ok. I've sold two houses in Houston the past 5 years.
If you mean to the buyer I'll agree. The last deal was not very smart for the buyer imo, and it was my house. They overpaid.
Posted on 3/17/24 at 10:54 am to TejasHorn
I always giggle at the realtors who try to justify the 6% because of their “skill”. shite should be by the hour like every other profession.
Posted on 3/17/24 at 11:06 am to kennypowers
quote:
I agree that many more legal issues will be popping up for dual agency because this will force cash strapped buyers to enter in to agreements without representation. Can't wait for threads about how the seller screwed them on a deal and they are now seeking legal help.
Why would anyone enter in the to biggest financial transaction in their life without some sort of consultative help?
They still can, just for less. A more market-based compensation amount.
Posted on 3/17/24 at 10:48 pm to LSUGUMBO
Real estate consulting rates would never make it because the entire system is free for the average home buyer and seller.
Good in theory. But won’t ever make it!
PLUS, only 10’ish % of Realtors truly & actually know the real estate game, laws etc… and those are the ones that make 90€ of the money in it
Good in theory. But won’t ever make it!
PLUS, only 10’ish % of Realtors truly & actually know the real estate game, laws etc… and those are the ones that make 90€ of the money in it
Posted on 3/18/24 at 7:49 am to SlowFlowPro
quote:
They still can, just for less. A more market-based compensation amount.
I always think it’s a little funny when people in a profession act like a free market / removal of anticompetitive practices will mean that their profession no longer exists (in this case, buyers’ agents).
I mean.. if the argument is that the market is too stupid to see your value and therefore needs to be protected from itself, maybe you need to rethink the value you’re providing in the first place. Maybe it’s just that the actual value, while nonzero, is simply less than you think it is.
Posted on 3/18/24 at 9:11 am to lostinbr
The industry has only done it one way, so changing the fundamental way they have worked is scary to them. The smart ones will figure out how to explain and demonstrate their value, while the ones who can't will suffer.
I really don't believe it's going to impact them as much as they think.
For example: If I agree to list my house with an agent at 5%. I'm paying them to sell the house. They sell the house and get the 5% fee. How they want to split that fee is up after the transaction is up to them.
The other scenario for the buyer agent is to just negotiate a referral fee rather than a commission on the transaction since they referred the buyer to the listing.
Both cases require cooperative selling agents and since most all of them do both buyer and seller rep deals, it's to their advantage to offer mutually beneficial conditions.
The whole non-requirement to pay buyer agent commission is really just semantics.
I really don't believe it's going to impact them as much as they think.
For example: If I agree to list my house with an agent at 5%. I'm paying them to sell the house. They sell the house and get the 5% fee. How they want to split that fee is up after the transaction is up to them.
The other scenario for the buyer agent is to just negotiate a referral fee rather than a commission on the transaction since they referred the buyer to the listing.
Both cases require cooperative selling agents and since most all of them do both buyer and seller rep deals, it's to their advantage to offer mutually beneficial conditions.
The whole non-requirement to pay buyer agent commission is really just semantics.
Posted on 3/18/24 at 10:09 am to Piebald Panther
I can guarantee you that if a listing agent has a house on the market and a buyer comes along and tells them they have to show them the house and if they decide to purchase that the listing agent just needs to fill out the purchase agreement for them and they’ll get an extra 1% of the sale every realtor would do that in a heartbeat. The paperwork can be done in 15 minutes through an app in your cell phone. Can also send them a quick contact for a great local inspector and mortgage company. Pretty simple for 1%. That is where I see this going. The people who are doing all the looking on Zillow and such will benefit greatly.
I’ve been looking online to buy a beach house for a while. You better believe I will tell that listing agent I expect them to deduct whatever her client wanted to give to a buyers agent and I’ll handle everything myself on that side.
I’ve been looking online to buy a beach house for a while. You better believe I will tell that listing agent I expect them to deduct whatever her client wanted to give to a buyers agent and I’ll handle everything myself on that side.
Posted on 3/18/24 at 10:21 am to The Torch
quote:
with the average home price in DFW 450K + do they really do enough to justify $27,000 ?
Add to that if in a high demand area, that house will sell quickly most of the time.
Posted on 3/18/24 at 10:57 am to lostinbr
A couple of other thoughts after more digging into the terms of the settlement:
1. As I understand it, there’s nothing in this settlement that says sellers can’t pay the buyers’ agents’ commissions. They will simply no longer be able to include a “split” as part of the MLS listing.
It will be up to sellers and their agents to determine whether they still need to pay the commissions for the buyers’ agents in order to move properties. It’s kind of funny how for years, sellers have argued that they were being forced to pay the buyers’ commissions by the system while NAR has argued that it’s always negotiable. But now that the buyers’ commissions aren’t posted with the listing, realtors are arguing it’ll hurt buyers because they’ll be stuck paying out of pocket. You can’t have it both ways.
2. Probably the biggest deal with this settlement is the requirement that buyers’ agents enter into agreements with the buyers beforehand. Which, combined with point #1, should eliminate situations where an agent has a fiduciary duty to the buyer but has their compensation dictated by the seller (or more accurately the seller’s agent).
That said, this will also mean that the buyer’s agent will not know how much of their commission will be covered by the seller simply from looking at the listing. So at least in theory this could lead to a scenario where the buyer has entered into an agreement for 2.5% commission, but after looking at the house finds out that the seller is only willing to pay 1%. This leaves the buyer on the hook for the other 1.5%. To that I would say.. so what? The market will adjust.
I constantly see realtors (including in this thread) saying they don’t steer their buyers towards certain properties based on the commission split. We have a poster saying he never even looked at the splits before bringing a house to a buyer. If that’s the case, those realtors either A) had already entered into agreements defining their commissions, in which case this doesn’t really change anything for them anyway as they’d be in the same situation regardless or B) were pitching houses to buyers with no idea how much they would make on the transaction, in which case they’re full of shite.
1. As I understand it, there’s nothing in this settlement that says sellers can’t pay the buyers’ agents’ commissions. They will simply no longer be able to include a “split” as part of the MLS listing.
It will be up to sellers and their agents to determine whether they still need to pay the commissions for the buyers’ agents in order to move properties. It’s kind of funny how for years, sellers have argued that they were being forced to pay the buyers’ commissions by the system while NAR has argued that it’s always negotiable. But now that the buyers’ commissions aren’t posted with the listing, realtors are arguing it’ll hurt buyers because they’ll be stuck paying out of pocket. You can’t have it both ways.
2. Probably the biggest deal with this settlement is the requirement that buyers’ agents enter into agreements with the buyers beforehand. Which, combined with point #1, should eliminate situations where an agent has a fiduciary duty to the buyer but has their compensation dictated by the seller (or more accurately the seller’s agent).
That said, this will also mean that the buyer’s agent will not know how much of their commission will be covered by the seller simply from looking at the listing. So at least in theory this could lead to a scenario where the buyer has entered into an agreement for 2.5% commission, but after looking at the house finds out that the seller is only willing to pay 1%. This leaves the buyer on the hook for the other 1.5%. To that I would say.. so what? The market will adjust.
I constantly see realtors (including in this thread) saying they don’t steer their buyers towards certain properties based on the commission split. We have a poster saying he never even looked at the splits before bringing a house to a buyer. If that’s the case, those realtors either A) had already entered into agreements defining their commissions, in which case this doesn’t really change anything for them anyway as they’d be in the same situation regardless or B) were pitching houses to buyers with no idea how much they would make on the transaction, in which case they’re full of shite.
Posted on 3/18/24 at 6:45 pm to LSUminati
got my house at 2.9%. I will die in it, or do renovations/ addition on a loan that doesnt touch that rate ??
Posted on 3/18/24 at 7:13 pm to TejasHorn
Leave to the media to frick update the facts.
Scumbags
Scumbags
Posted on 3/18/24 at 7:20 pm to fofuh4
quote:
got my house at 2.9%. I will die in it, or do renovations/ addition on a loan that doesnt touch that rate ??
Yeah…. You are making a case for realtors getting paid because no one in here is talking about interest rates.
Posted on 3/18/24 at 7:31 pm to Lake08
I don’t understand why people don’t do this themselves. It is so easy!
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