I feel so good after listening to this,that my interpretation of our change was right, I'll share this with the office. Just subcribed and can't wait to watch some more of your pod casts...I just read some of the comments below, many still don't get it. This allows for a Free Market, the public buyer/seller and market conditiions will decide, it's a Good Thing! I think many need to read what Antitrust/Sherman Act/etc. mean... anyhow got to move on or this will drive me crazy...
Because it’s a fraud law suite that NAR could not convince the jury, the agents are going to get squeezed and some are thinking it’s better lol , buyers will argue that why am I paying 2.5% on a 100k house then a 4million home u still have to do the same work and bring the same value… what they won’t get is average realtor makes 50k a year it’s nothing
Several decades ago there were major law-suits brought by Buyers who sued because they felt they were not represented when they purchased (there was no buyer representation back then, agents were either listing agents or sub agents) and got a bad deal because of lack of representation. When buyers start going to listing agents thinking they will get a better deal....then finding out the truth of the lack of representation they received they will get upset and we will see buyers bringing lawsuits.
I have been a professional, full-time Realtor 31 years now. Firstly, It has always been a huge no-no to negotiate commissions into the offer. Now it’s 180° the opposite? Secondly, can’t tell you how many young, first-time home buyers I have (happily) worked with (who typically call me when time to move up). Pay the Buyer Broker? Are you living in some alt-universe where they have the funds to do so? Most are barely able to scrape the funds together and many rely on Seller concessions. Another push to beat down the low-to-middle class.
Your kind of truth actually tethered to reality is what’s gotten lost in this whole matter. And these guys see gouging buyers more as the solution to “getting paid”??
Hi. Not sure if you listened to the whole episode or not but we’ve never said a seller couldn’t or shouldn’t pay the buyer agent commission. I imagine it will still be the norm going forward. What we’ve said is it should be pre negotiated and offered. Hope that clarification helps.
Heard it from start to finish. Yes, I understand the listing agent and seller should agree on issues, put it in writing, then place on MLS preferably. But the push is on buyers agent to “do a better job” I.e., place value on their services and buyer will no doubt gleefully pony up for the fine job performed by their agent. Again, big assumption that buyer can afford the services rendered.
@@superstockamx9064 why in the world are they overlooking affordability and its impact that’ll reverberate throughout the industry and of course leaving many w/o representation??
James and Keith...thanks once again...I have noticed so many agents from social media groups that are expelling so much unnecessary energy trying to work around. Just rise above and work with it.
The seller actually didn’t pay it, the sellers agent/broker shared its compensation with the buyers agent/broker. Even now the buyer continues to finance everything including what the seller and buyer agents receive in compensation whether it’s from the seller or buyer.
Let's get real here. NOBODY is going to pay out of their own pocket for a buyer's agent. I'm a buyer and I'm gonna go straight to the listing agent. Of course there are drawbacks, but the first pain point of paying out of pocket is as real as it gets. Buyer's agency is dead dead dead.
What about ... don't you normally charge 6% and keep it all if there is no buyers agent ? So how are you discussing the buyers agent's half and then keep it
I'm just trying to figure out why Realtors are the only animals on the planet that don't get to put a price sticker on their work. The attorneys behind this storm probably don't even blink when they give the the NON NEGOTIABLE 33%.
In Georgia you can't ask for compensation in the offer. You can ask for closing cost and that can cover the buyers brokerage agreement $ already agreed to with buyer.
So that would mean if the commission was written into the offer as part of the offer, and the seller chose not to participate, the buyer will lose the opportunity to buy the home because up to that point it is unknown, whether or not the seller will accept the commission. That seems very problematic.
That has always been true. Buyer's have been asking for a seller to pay for costs through seller concessions, requests for repairs, etc. forever. It's nothing new and in a vast majority of cases, it is completely unknown whether a seller will make repairs or give a seller concession. Much of the time, the buyer will have to ask for it. It is more important than ever for a buyer agent to do their due diligence on a property in order to formulate an offer that gives their client the highest probability of acceptance.
@@benvigilrepro Due diligence is the legal responsibility of the buyer, assisted by the buyer’s agent. That aside, the “highest probability of acceptance” relates to the lowest cost for the seller. Paying a buyer’s agent is another cost borne by the seller. As such, the new reality is suppressed buyer’s agent commissions, which is already being reported by NAR.
@@movetochattanooga I agree with your conclusion but not totally on your other points. Due diligence is defined as the care that a reasonable person exercises to avoid harm to other persons or their property. An agent has that responsibility to their client. Yes, “highest probability of acceptance” CAN relate to the lowest cost for a seller but it can also be other motivations of the seller. Perhaps, a seller needs to stay in the property for a month or two after close. Maybe the seller needs to close very quickly due to a financial need. I've had clients in the past that had moved to another State and just needed to dump a property because the two house payments were eating them alive. Another was in foreclosure proceedings and had a hard date in order to sell. Thanks.
The seller hasn't really chosen not to participate - they just didn't accept your offer because your offer's NET wasn't want they wanted. Ask the LA agent to counter your NET and you can talk to your buyers about how to structure the deal to get the seller their NET - it could still include your compensation.
At the end of the day, they all feel like just more workarounds. I believe the reality is very much glass half empty. I think it will be a much shorter period of time than people expect before by agents as a distant memory. There is just too much information available to buyers, if they think they can save money by going straight to the seller broker, they will and the US will go the same way as the UK Australia and others who experience the same types of changes. I looked at property in the UK last year and then three different viewings were with three different brokers, in every case the listing broker. at no point was a buyer agent a possibility. This is the reality. I think it’s only a matter of time before brokerages start paying salaries with a much smaller commission and working in real estate will be much like working in other industries.
I agree with everything you are saying. Change is difficult. I think a podcast roleplaying different scenarios would help. I envision four or five that would make your head curl.
A home seller hires an agent to represent them to sell their house , the seller negotiates a price with the agent for this service . Now a buyer hires an agent to represent them in buying a home , shouldnt the buyer and that agent determine a price for that service and since the buyer hired them , the buyer pays them ?
Why can you not put on your website that your seller is willing to to pay 3% to a buyers agent, why does the seller not have a right to pay an agent 3% to the buyer agent, you guys talking about cars, can a car dealer say hey all buyers with car brokers we are will to pay them $1,000 fee…: Let’s be clear sellers that I have spoken to want to pay buyer agents because they want those agents pushing there homes saying it’s great etc, let’s not forget all realtors are sales people
Listings agent has ALWAYS negotiated their total commission, and offered a co-op fee of THEIR COMMISSION to a buyer agent procuring a buyer. This is all being so misrepresented you guys don’t know which way is up.
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