National Association of Realtors agrees to end 6% commissions

ok, so are they going to charge 8% instead?

Houses with higher commission to the buyers agent will almost always sell faster, imo. Agents, largely, don’t care about their clients and will push whatever deal makes them the most money.

So they can compete with each other on commissions and you could potentially see lower rates, especially in slower markets with expensive stock. However the houses that go through the realtors with the lowest rates will magically be harder to sell because that's how that little mafia works.

When you buy a house, you'll usually have to pay an inspector that crawls through the attic and documents everything - trying to find any major red flags. And your bank will usually hire a closing attorney that pulls up the property history and tries to sniff out any tax, easement, or boundary issues. Both of those entities work much harder than most realtors and earn much less out of that transaction.

The realtors I've had to work with are generally competent. But they don't work that hard.

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ok, so are they going to charge 8% instead?

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Let’s say they switch to a flat rate.

15k per transaction.

On a 100k house, that is 15%.

On a 200k house, that is 7.5%

Or they could do like most every countries and charge an hourly rate for their services depending on how much you use them.

This economy is about to be brutal to anyone in real estate. hate to say it but its true.

Buffet has always been right regarding real estate.

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If rates drop anywhere into the 5s, there is going to be such a massive sellers market.

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I'm biased, but I don't know if it cuts exactly that way. It'll be advantageous to sellers with pent up demand, but it should increase inventory a lot which is the biggest disruption right now.

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Riiiiiiiiiiight. They still make their money on a percentage basis, where is the motivation for bringing the costs down?

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You can be sure it wasn’t their idea.

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settlement of landmark antitrust lawsuits

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ETA: More from the article in OP:

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In November, a federal jury in Missouri found the NAR and two brokerages liable for $1.8 billion in damages for conspiring to keep agent commissions artificially high. The NAR had pledged to appeal the case, but other brokerages settled — and, eventually, so did the NAR on Friday.

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If rates drop anywhere into the 5s, there is going to be such a massive sellers market.

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IDK. If there is that many people looking to sell, they'd have a downward pressure on the pricing right?

There's not much inventory where I am. Not sure if there really is that much pent up demand to sell.

with the average home price in DFW 450K + do they really do enough to justify $27,000 ?



Put a sign out, post it on social media, drive some people around then hand it off to Title Company