Posted on 04/25/2024 9:29:22 AM PDT by where's_the_Outrage?
Starting in July, the real estate industry is bracing for a sweeping shake-up thanks to a $418 million settlement offered by the National Association of Realtors to overhaul its long-entrenched commission structure for agents and pay compensation to the sellers and real estate brokerages who sued.
The NAR got a further blow on April 5, when a federal court cleared the way for the Justice Department to reopen an antitrust probe into the group and its rules regarding home-sale commissions.
While the settlement awaits final approval later in the year, a preliminary sign-off by a federal judge on Tuesday means that the outcome is highly likely. In addition, the NAR has already started planning to change some of its policies starting this summer. Although these will likely affect home buyers more than sellers, both sides will have to make some adjustments, including how they work with agents......
The new changes could prompt more buyers to go without hiring an agent at all. That would mark a departure from current practice, with more than 90 percent of buyers and sellers working with an agent, according to the NAR.
If they do opt for an agent, buyers might vet several candidates first to compare services and costs, since they have flexibility to negotiate the agent’s commission. But they should also remember they probably won’t know in advance of making an offer whether the seller will pay the commission of the buyer’s agent — so that payment is likely to become part of purchase negotiations, Luong said.
(Excerpt) Read more at msn.com ...
The only reason I used a buyer agent was because the home was listed by an agency. I once had a buyer's agent that got angry with me when I bought a For Sale By Owner house (that she didn't find or show), so I didn't use her to in any part of the deal, and we didn't have contract between us.
I have never had a good experience selling with an agent. Maybe just me.
There is too much regulation and insider activity with other “in” agents and clients.
Eventually, the government will just tell you where to live.
The new changes could prompt more buyers to go without hiring an agent at all. That would mark a departure from current practice, with more than 90 percent of buyers and sellers working with an agent, according to the NAR.
If they do opt for an agent, buyers might vet several candidates first to compare services and costs, since they have flexibility to negotiate the agent’s commission. But they should also remember they probably won’t know in advance of making an offer whether the seller will pay the commission of the buyer’s agent — so that payment is likely to become part of purchase negotiations, Luong said.
1. Good luck going FSBO. You do all the work, even though you already have a job.
2. Commissions? You will pay them and nothing changes
3. See point #1
“Good luck going FSBO.”
You article quote references buyers’ agents.
Using a real estate agent is one of the biggest rip offs ever!
Some of these people expect tens of thousands for taking some pics, listing a home on the Internet and doing some paper work. Many times the home is sold in a week or so, and these people collect $20,000, $35,000 and much more depending on the sales price. For many agents, all they do do is collect listings and sit around and wait to collect big bucks!
LOL. Having lived in communist countries, I can tell you, to get allocated a "good" place, the string-pulling, under-table-dealing, connection-using nonsense multiplies 100X.
What about the money lawyers get in a settlement?
My prediction is that within five years you’re going to see fixed real estate commissions — just like you have fixed legal costs for closings, fixed brokerage fees for securities trades, etc. In fact, they won’t even be called “commissions” anymore, but realtor fees.
I smell BlackRock.
I can’t imagine buying or selling without an agent. The agent is the one who goes to the various classes and learns everything about real estate. The agent is the one who can hook me up with property inspectors, repairmen, and so forth. The agent helps to provide the proper documentation to the lender. Those kinds of service are invaluable, especially if (as I have done several times) I am buying a home in another state.
I don’t want to have to take a real estate law course just to buy or sell my own house.
“Some of these people expect tens of thousands for taking some pics, listing a home on the Internet and doing some paper work.”
##################
In some fairness, they find the buyers. That IS a benefit they bring to the table, perhaps the most important one.
It's the agent who already has a job. Numerous other houses -- and that's probably just a part time job. I don't sit around wondering how much attention an agent gives my property, or whether he gives it none until someone happens to notice it. FSBO is all I do, and it doesn't require luck, unlike hiring an agent.
And with FSBO I don't have to sit around wondering if the bank will approve of the buyer or the property. No bank wastes my time and no agent wastes my time and money.
No they don’t. In many cases the buyer finds the home, and the agent sits around and collects big league commissions. Anyone can go on realtor.com and find a home. You don’t need a RE agent to do that. Then there is the problem of the buyers and sellers agents colluding to maximize commissions, expedite the sale in an effort to collect those commissions quickly..on and on...
Sold our first house with FISBO. Paid an attorney a small fee for the contract stuff. Saved thousands with no agent. Good experience. Can’t imagine giving an agent tens of thousands to sell our current house. Spouse is pretty sure she wants to do FISBO again. I’m not so sure, but yeah, that commission is ridiculous.
Um, the title and mortgage company takes care of all that. Not the agent. An agent simply puts your house on the MLS, stands there while prospective buyers look at it, and then helps write up the offer. All for up to 6% of selling price. Plus, they put a sign in your yard advertising their agency.
We have sold 4 homes FBSO, the last one with a simple 1% agent to handle the listing and contract. We did all the rest. Have saved at $50K in unnecessary fees.
“Paid an attorney a small fee for the contract stuff.”
I’m curious about that. I have bought and sold by owner and never had to get an attorney. The mortgage company always handled the closing through a title company. Was it a cash purchase?
I sold my home via Zillow. Very easy and saved $10k in Commissions.
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