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Is this issue going to pop up on basically every residential real estate transaction now?
Posted on 7/20/24 at 5:11 pm
Posted on 7/20/24 at 5:11 pm
quote:
Just so everyone is on the same page, there are TWO parts of the NAR settlement:
1. MLS can't publish offers of compensation the seller is willing to pay to buyers agents (if anything)
2. Agents (starting August 17th) cannot show homes unless they have signed agreement with the buyer (this agreement outlines compensation the buyer is signing up for)
Point 1 gets all the attention bc it will probably lower commission rates over time
Point 2 is probably going to cause some issues potentially?
LINK
17
Posted on 7/20/24 at 5:14 pm to hikingfan
I sold my last house FSBO. I offered the buyer agent 2% which was more than adequate.
Posted on 7/20/24 at 5:14 pm to hikingfan
Sounds like he needs to find another buyers agent
The market will work itself out like all free markets do
The market will work itself out like all free markets do
Posted on 7/20/24 at 5:19 pm to stout
I would expect most buyers agents to reduce to what seller is offering. Under the new rules, an agent can accept a reduced commission from what their buyers agreement states, they just can’t accept more.
So if a buyers agent gets a contract signed with her buyer for 3% but the house they are making an offer on is only offering 2.5%, the buyers agent will be allowed to reduce. But if the contract was signed at 2.5% but the specific house is offering 3%, they won’t be able to increase to 3%
So if a buyers agent gets a contract signed with her buyer for 3% but the house they are making an offer on is only offering 2.5%, the buyers agent will be allowed to reduce. But if the contract was signed at 2.5% but the specific house is offering 3%, they won’t be able to increase to 3%
Posted on 7/20/24 at 5:21 pm to hikingfan
Sign an agreement with the real estate agent that they are responsible for negotiating their commission with the seller.
Posted on 7/20/24 at 5:23 pm to hikingfan
No. The listing broker would be told to negotiate with the buyer's broker. If they can't come to terms, fire your buyer agent.
Posted on 7/20/24 at 5:23 pm to LSU1018
quote:
I would expect most buyers agents to reduce to what seller is offering. Under the new rules, an agent can accept a reduced commission from what their buyers agreement states, they just can’t accept more.
So if a buyers agent gets a contract signed with her buyer for 3% but the house they are making an offer on is only offering 2.5%, the buyers agent will be allowed to reduce. But if the contract was signed at 2.5% but the specific house is offering 3%, they won’t be able to increase to 3%
I imagine that intelligent agents will draft their contracts roughly as follows:
"Buyer's agent commission 3%, to be reduced to match Seller's offer down to X%, with any remaining balance paid by buyer."
Posted on 7/20/24 at 5:26 pm to hikingfan
Why on god’s green earth are we still paying brokers/agents a percentage anyway?
Should be an hourly rate.
Should be an hourly rate.
Posted on 7/20/24 at 5:37 pm to JohnnyKilroy
quote:
Why on god’s green earth are we still paying brokers/agents a percentage anyway?
Should be an hourly rate.
Sell FSBO if you like. Knock on doors as a buyer after looking at realtor.com and negotiate away.
Posted on 7/20/24 at 6:06 pm to hikingfan
Frick Realtors laziest bunch of bums ever
Posted on 7/20/24 at 6:25 pm to hikingfan
quote:
2. Agents (starting August 17th) cannot show homes unless they have signed agreement with the buyer
the length of this agreement can literally be for 24hrs, this is just paperwork and not something that buyers should be concerned with
Posted on 7/20/24 at 7:03 pm to Joshjrn
quote:
I imagine that intelligent agents will draft their contracts roughly as follows:
"Buyer's agent commission 3%, to be reduced to match Seller's offer down to X%, with any remaining balance paid by buyer."
you actually cannot do that.... the portion of compensation has to be explicitly clear and defined
now, they could re-do the buyer's agreement to a larger percentage, if one is being offfered and they lowballed the first agreement... but you can't have "my rate is X, unless it's Y, then it's Y"
Posted on 7/20/24 at 7:16 pm to armsdealer
quote:
Sign an agreement with the real estate agent that they are responsible for negotiating their commission with the seller.
unfortunately, that's not the way the Buyer's Agreement works... it's essentially a contract of employment, which specifies that the buyer will pay the agent a certain percentage, or set fee, in return for helping them through the homebuying process...
that being said, yes, buyers will still look to have the seller assist with their costs of buying the home, and paying for their agent is another added cost that they will ask for, if it's not already being offered up front... they'll just ask for it in the terms and agreements portion of the contract, along with whatever else they want to include in the deal
Posted on 7/20/24 at 7:21 pm to Joshjrn
quote:
I imagine that intelligent agents will draft their contracts roughly as follows: "Buyer's agent commission 3%, to be reduced to match Seller's offer down to X%, with any remaining balance paid by buyer."
I would not sign that contract and find a new agent.
Posted on 7/20/24 at 7:22 pm to georgia
quote:
this is just paperwork and not something that buyers should be concerned with
no, it's a fully enforceable contract, that would absolutely hold up in litigation
Posted on 7/20/24 at 7:24 pm to lynxcat
quote:
I would not sign that contract and find a new agent.
again, no agent can do that... the contract would null and void, right off the bat... it has to be a clearly defined percentage or set rate/amount of compensation...
again, if they lowball the initial, the agent could always go back to the buyer and ask them to sign it again, for the higher co-op percentage, and being they buyer isn't the actual person coming up with the money at closing for it, they'd likely sign it, as it's no consequence to them
Posted on 7/20/24 at 7:32 pm to JohnnyKilroy
quote:
Should be an hourly rate.
you can, and always have been able to negotiate the terms of compensation for ANY real estate agent... you've always had the option to try to negotiate employing an agent for an hourly rate... nothing stopping you, literally
Posted on 7/20/24 at 7:43 pm to JohnnyKilroy
quote:
Why on god’s green earth are we still paying brokers/agents a percentage anyway?
Should be an hourly rate.
Maybe not an hourly rate...but a fixed negotiated number for sure. Its the same amount of work for million dollar properties as it is 100k properties
Posted on 7/20/24 at 7:47 pm to scottydoesntknow
No it’s not. Your buyer pool is much more limited on a million dollar property.
Posted on 7/20/24 at 7:50 pm to Sao
quote:
Knock on doors as a buyer after looking at realtor.com and negotiate away.
That's exactly how I bought my first house. Saw a house I liked and talked to the owner. You never know what kind of plans people have until you talk to them.
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