If you're buying or selling real estate now...or soon...you could have a problem that you will need to deal with. While I'm in Lynchburg Virginia, this is something that is happening across the country. Paying Real Estate Agents. Who pays them???
In this video will break down how Real Estate Agents have been paid for over a century. And what changes could be in the works. Did you know that since 1913 it was industry standard for a Seller to work with an agent to sell their house...and agree to have that Agent split the commission the Seller paid with an agent who represented a Buyer? For over a century this is how it worked. And the professional fee, or commission, that a Seller agrees to pay an agent (technically the Agent's Broker) has changed over time. It is not a rate fixed by law or any regulation. It is, and has always been, negotiable.
So what is this potential problem that Sellers and Buyers need to know about when selling or buying a house? There have been several lawsuits recently against the National Association of REALTORS and a few brokerages that accuse these organizations of artificially keeping commissions high and therefore housing prices high.
The Department Of Justice has said they want real estate commissions to be decoupled; separated between the Seller and Buyer. Everyone should pay their own agent. They even suggested the Buyer could just increase their offer on the price of a house and ask for the money back for their agent. (That doesn't really change things then, does it?)
A big problem is that most Sellers have a lot of equity in their homes, but many Buyers don't have a lot of money. Not for a down payment...for closing costs for their lender...and for a professional fee for their Agent. (60% of Americans are living pay check to pay check.) Sellers want to have as many potential buyers as possible looking at their house they are selling. But if they don't offer any commission to a Buyer's Agent (Broker), or offer a very reduced commission, many Buyer's won't be able to be represented. This could hurt the people that need representation the most. And it could shrink the pool of buyers for Sellers by a lot.
Sellers and Buyers will need to continue to do what they have always done; find an agent you can count on and trust. Talk with them at the beginning of your time together about how they will be paid. It's imperative that customers / clients and real estate agents all understand how the systems works, how people are represented, and mutually decide what is in their own best interest.
🏡 If you're even thinking about...dreaming about...or contemplating...a possible move to the Lynchburg VA area...give us a call (or text or email). We serve a pretty wide area, from Wintergreen to Danville, and from Roanoke to Farmville. And, if it's out of our area, we can connect you to a REALTOR who will be happy to help you. 🏠 You may have heard it in a video, but we really do love connecting with people and helping where we can.♥️
We'll definitely talk about the professional fee. I can't work for zero. ;)
CALL - TEXT - or EMAIL. Whatever is easiest for you.
I look forward to hearing YOUR story soon! - JD
📞📱 434-993-8776 📱📞
✉ 💻 JDMillerRealty@gmail.com 💻 ✉
9 мар 2024
