New Commission -3%

[Anonymous]

No one except very old folks were paying 5%.

3.5-4% was standard.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Woo hoo, about time!! I look for real estate listings myself and I contact listing agents myself. Why do I still need to pay someone $60,000 (3% of $1 million) for that service? I was going to do FSBO but if the commission goes down to 1% I might consider using an agent.

NAR will also no longer get exclusive access to MLS.

Just the fact that you wrote this explains how ignorant you are about the process. You will still be paying that 60k. Do you really think that sellers are going to cut their price 60 K for you? The only difference is now you will be paying that baked in commission without actually having an agent.

Also, you could have always paid one percent. The commissions are not fixed and have never been.

Well, there was enough funny business going on with commissions that there was a successful lawsuit over it that is forcing a big change in business practices — as well as a $400+ million settlement. You can’t deny the obvious.

Unfortunately, uninformed buyers don’t know what they don’t know and will forego representation for a perceived upfront savings. They will then deal with a listing agent that is required to be honest, but not fair working on behalf of their principal, the seller. After they realize they don’t get a good deal and didn’t do their due diligence, they will cry wolf and regulation will need to be added. It will be a mess and so short-sighted.

C’mon, both agents are paid by the seller under the outgoing system. Most “buyer’s” agents work for the deal, the best interests of the buyer are secondary at best. The buyer’s agent does not get paid for achieving the best outcome for the buyer; they get paid for making sure the deal closes.

This. We already stopped using buyer agents after getting sick of the corrupt, lying realtors and bought our last home without one. We're about to sell a home and expect whichever realtor we select to show the house and help write offers for any interested buyers without a realtor. This is really basic service for a seller's agent who has the fiduciary duty to do everything they can to sell the home. It's not "extra work" - it's their job.

Exactly, it's the job of srellers agent to show the house and if they can't do tjhat then what are they doing? Job is to sell and as part of selling job is to show anyone who wants to see the house. If you can't do that then you shouldn't take the job of selling a house.

There's a saying that the job of agents is to sell themselves, not to sell houses. They are typically more concerned with drumming up new business, rather than doing what's best for their clients. Unfortunately, their clients are not smart enough to know better -- e.g., if your house sells in one weekend in a bidding war, how do you know that the agent did a good job versus leaving money on the table? Remember, studies have shown that agents price their own houses higher and take longer to reduce the price, than when they sell other people's houses.

[Anonymous]

I'd negotiate down to 1.75%

[Anonymous]

Anonymous wrote:Looking to sell my house in Fairfax. It is $1M+ and spoke with a few agents. I have been quoted 3% total commission for buyer and seller agent by 4 different relators. I mean it's great but is this the trend anyone else is seeing as well?

All in 3% for sellside and buyside realtors plus the taxes then?

That’s still got but better than 4-6% all in.

[Anonymous]

Agents commission is one of the main reasons prices are high. In addition, agents don't let buyers offer low or you have to be savvy to against their recommendation. Having no agents is an easier and cleaner transaction.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So we are about to list our house and have a listing agreement (not yet signed) giving our agent 5%, split with the buyer's agent. Should I counter now with 4% in light of this NAR ruling? My inclination is to give 4% and tell her to split it however she wants.

4% is pretty standard even now.

Why are you guys so afraid of your agents? Offer 2% to be split between the buyer and seller agent. At current prices, that's a lot of money already.

This is what happens in the rest of the world so not sure why Americans pay so much. This had to happen and some of the worthless agents have been making a lot of money

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Woo hoo, about time!! I look for real estate listings myself and I contact listing agents myself. Why do I still need to pay someone $60,000 (3% of $1 million) for that service? I was going to do FSBO but if the commission goes down to 1% I might consider using an agent.

NAR will also no longer get exclusive access to MLS.

Just the fact that you wrote this explains how ignorant you are about the process. You will still be paying that 60k. Do you really think that sellers are going to cut their price 60 K for you? The only difference is now you will be paying that baked in commission without actually having an agent.

Also, you could have always paid one percent. The commissions are not fixed and have never been.

Well, there was enough funny business going on with commissions that there was a successful lawsuit over it that is forcing a big change in business practices — as well as a $400+ million settlement. You can’t deny the obvious.

Unfortunately, uninformed buyers don’t know what they don’t know and will forego representation for a perceived upfront savings. They will then deal with a listing agent that is required to be honest, but not fair working on behalf of their principal, the seller. After they realize they don’t get a good deal and didn’t do their due diligence, they will cry wolf and regulation will need to be added. It will be a mess and so short-sighted.

C’mon, both agents are paid by the seller under the outgoing system. Most “buyer’s” agents work for the deal, the best interests of the buyer are secondary at best. The buyer’s agent does not get paid for achieving the best outcome for the buyer; they get paid for making sure the deal closes.

This. We already stopped using buyer agents after getting sick of the corrupt, lying realtors and bought our last home without one. We're about to sell a home and expect whichever realtor we select to show the house and help write offers for any interested buyers without a realtor. This is really basic service for a seller's agent who has the fiduciary duty to do everything they can to sell the home. It's not "extra work" - it's their job.

Exactly, it's the job of srellers agent to show the house and if they can't do tjhat then what are they doing? Job is to sell and as part of selling job is to show anyone who wants to see the house. If you can't do that then you shouldn't take the job of selling a house.

There's a saying that the job of agents is to sell themselves, not to sell houses. They are typically more concerned with drumming up new business, rather than doing what's best for their clients. Unfortunately, their clients are not smart enough to know better -- e.g., if your house sells in one weekend in a bidding war, how do you know that the agent did a good job versus leaving money on the table? Remember, studies have shown that agents price their own houses higher and take longer to reduce the price, than when they sell other people's houses.

Sue them. It's not difficult to prove their gross negligence and I was able to do that to recover some cost. They know they do it wrong and the agreement they make you sign doesn't protect them either. Hire good lawyers to sue them if you know they didn't act in good faith.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Woo hoo, about time!! I look for real estate listings myself and I contact listing agents myself. Why do I still need to pay someone $60,000 (3% of $1 million) for that service? I was going to do FSBO but if the commission goes down to 1% I might consider using an agent.

NAR will also no longer get exclusive access to MLS.

Just the fact that you wrote this explains how ignorant you are about the process. You will still be paying that 60k. Do you really think that sellers are going to cut their price 60 K for you? The only difference is now you will be paying that baked in commission without actually having an agent.

Also, you could have always paid one percent. The commissions are not fixed and have never been.

Well, there was enough funny business going on with commissions that there was a successful lawsuit over it that is forcing a big change in business practices — as well as a $400+ million settlement. You can’t deny the obvious.

Unfortunately, uninformed buyers don’t know what they don’t know and will forego representation for a perceived upfront savings. They will then deal with a listing agent that is required to be honest, but not fair working on behalf of their principal, the seller. After they realize they don’t get a good deal and didn’t do their due diligence, they will cry wolf and regulation will need to be added. It will be a mess and so short-sighted.

C’mon, both agents are paid by the seller under the outgoing system. Most “buyer’s” agents work for the deal, the best interests of the buyer are secondary at best. The buyer’s agent does not get paid for achieving the best outcome for the buyer; they get paid for making sure the deal closes.

This. We already stopped using buyer agents after getting sick of the corrupt, lying realtors and bought our last home without one. We're about to sell a home and expect whichever realtor we select to show the house and help write offers for any interested buyers without a realtor. This is really basic service for a seller's agent who has the fiduciary duty to do everything they can to sell the home. It's not "extra work" - it's their job.

What if there is more than one unrepresented buyer?

[Anonymous]

I never use buyer's realtors. Last time I used, I made him share his commission with me. I do all the work, why should they get to keep the gravy.

[Anonymous]

Anonymous wrote:I never use buyer's realtors. Last time I used, I made him share his commission with me. I do all the work, why should they get to keep the gravy.

Why use one at all then? Doesn’t quite add up - I “never” and “last time”.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I am reading correctly, this new system will become effective July. Would some people intending to put their house on the market choose to wait until July to do it? If so, inventory could fall even further, and prices climb more in the next few months.

If anyone lists their home in the next few months, I’d expect it to say “no buyer agent commission will be paid” in big letters in the listing.

Exactly what will happen and there will be no co-op commission shown in the MLS.

So sellers get all the benefit of having representation and buyers get none? Cue the lawsuits in a few years from buyers who are like lambs to the slaughter having to use the sellers agent because they can't afford to pay for representation. T The sellers agent LEGALLY REPRESENTS the SELLER so the buyer claims their interests weren't protected - which they weren't, because - the sellers agent represents the SELLER! Duh. Buyers will have to settle for greedy listing agents who will work both sides of the deal (this shouldn't even be legal - it's not in Maryland). THERE IS A REASON BUYER AGENT COMPENSATION WAS INTRODUCED IN THE 90's pushed for by consumer advocacy groups that recognize buyers were at an unfair position. So the upshot of this will be that wealthy buyers will be okay, the average person and lower income buyers are going to be screwed.

We shall see what all the unintended fall out for this is. Some prices will come down rather than go up. Who do you think is bringing all these buyers to homes?? And yes, some crappy agents will start opening doors for a per door fee, but you get what you pay for. Many buyers will not be able to pay for a seasoned agent who understands the contract and can protect the buyers interest AND afford a higher price for a home. So the frenzy that drives the price so high because there are 20 offers on a home will subside because there will not be as many offers. And what about VA buyers who are expressly not allowed to pay for representation??? Again, thrown to the wolves of having to use the SELLERS agent. Yes, we are in a hot sellers market now, but all these sellers who think they don't need buyers agents to show their homes and guide buyers through making offers will be crying when the market shifts some day.

This is a stupid decision that will hurt everyone in the end.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I am reading correctly, this new system will become effective July. Would some people intending to put their house on the market choose to wait until July to do it? If so, inventory could fall even further, and prices climb more in the next few months.

If anyone lists their home in the next few months, I’d expect it to say “no buyer agent commission will be paid” in big letters in the listing.

Exactly what will happen and there will be no co-op commission shown in the MLS.

So sellers get all the benefit of having representation and buyers get none? Cue the lawsuits in a few years from buyers who are like lambs to the slaughter having to use the sellers agent because they can't afford to pay for representation. T The sellers agent LEGALLY REPRESENTS the SELLER so the buyer claims their interests weren't protected - which they weren't, because - the sellers agent represents the SELLER! Duh. Buyers will have to settle for greedy listing agents who will work both sides of the deal (this shouldn't even be legal - it's not in Maryland). THERE IS A REASON BUYER AGENT COMPENSATION WAS INTRODUCED IN THE 90's pushed for by consumer advocacy groups that recognize buyers were at an unfair position. So the upshot of this will be that wealthy buyers will be okay, the average person and lower income buyers are going to be screwed.

We shall see what all the unintended fall out for this is. Some prices will come down rather than go up. Who do you think is bringing all these buyers to homes?? And yes, some crappy agents will start opening doors for a per door fee, but you get what you pay for. Many buyers will not be able to pay for a seasoned agent who understands the contract and can protect the buyers interest AND afford a higher price for a home. So the frenzy that drives the price so high because there are 20 offers on a home will subside because there will not be as many offers. And what about VA buyers who are expressly not allowed to pay for representation??? Again, thrown to the wolves of having to use the SELLERS agent. Yes, we are in a hot sellers market now, but all these sellers who think they don't need buyers agents to show their homes and guide buyers through making offers will be crying when the market shifts some day.

This is a stupid decision that will hurt everyone in the end.

+1

Ma’am this is an Internet forum where people swap links for listings. I think people will be able to find listings just fine without their realtor sending them the Redfin link that they got a notification about two days ago

[Anonymous]

I love when agents act like only they can help with the contract -- they're typically not even lawyers. The reason they can help with the contract is that even a robot can do it -- you fill in a few blank spaces, check a few boxes, and that's it.

If someone with only a high school education is entrusted with filling in the real estate contract for you, you can be sure it's not that difficult. Frankly, I would trust a computer program that asks a series of programmed questions (similar to Turbotax for my taxes) than I would trust an agent.

[Anonymous]

Anonymous wrote:No one except very old folks were paying 5%.

3.5-4% was standard.

MLS contradicts your assessment

[Anonymous]

I would still pay 6%. Better service and will stand out to buyer's brokers.