What does new realtor fees mean for buyers?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FHA and VA borrowers will probably have to pay commissions out of pocket. It remains to be seen what will happen with traditional mortgages. I think there will be low cost, fee only, buyers agents popping up. It's one thing if the commission is rolled into the closing and the buyer never really feels it, but someone looking for their first home has to cut a $12,500 check for a 500k purchase, the will start to question the value of the service.

I’m sorry but why should realtor commissions be baked into the closing?[b]? And 12,500 is extreme. How many hours and houses did the buyers see? Do you realize how many hours that is? Moving costs can’t be rolled in so I expect realtor costs won’t be either.

I think instead buyers will just use their title company’s real estate lawyer to draft the documents. This is what I’ve done and it was like $1500. Buyers will go to open houses to view and more open houses will be common.

$12,500 is 2.5% on a 500k sale. Once buyers actually feel it instead of having it baked into closing, that number is going to crash

This

[Anonymous]

You don't need a real estate agent to buy property. Everything is done by a lawyer anyway. You can go tour the house on your own: Pey a lawyer and the end. Biggest scam there ever was realtor fees and jobs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I first started looking (a few years ago), it seemed that open houses were the norm. But these days you often need an agent just to walk through the house. Will that will change?

Think open houses will be more important and the days and times may change. Some agents are already doing open houses on Friday from 4 to 6 pm or 5 to 7 pm depending on daylight. Buyers can walk through the houses without paying an agent and then work directly with the listing agent to write the contract if they don't want to pay a buyer agent. NAR has sold the idea that buyers need an agent to represent them to support the current commission structure, but they really don't. I just wrote a contract for a friend who was buying his neighbor's house. I told him what to do and he did it. Maybe it took 3 hours tops. I am a high volume producer, and my broker gives me lots of leeway to do what I want. Rather than pay me, I asked him to donate $1,000 to a charity I support.

Am I correct that the split can’t be listed on the mls, but can still be worked out between agents off of the mls? Most agents deal with buyers, so won’t seller-agents, (concerned about their own futures w/the bulk of their $$ coming from their future buyer clients), “play nice” and agree to split the fees off of the mls? Of course the sellers will have to agree, but I predict not too much is going to change. Obviously, I could be completely wrong here, I guess we’ll see.

Same responder from above. To clarify further, will we see a bunch of links to websites for houses w/the split listed. So, not via mls, but commission splits are still out there?

That would be a very dumb thing to do legally. Just opening yourself up to a lawsuit. The settlement specifically disallows listing commission splits. If you just do it on a separate website, that's still in violation.

What I do think will happen, especially at first, is verbal agreements between agents, especially in smaller or tightly knit areas where they know each other. Nothing written down, harder to collect a body of evidence.

You're wrong. MLS is the only place where buyers' agents' commissions can't be listed. Stop spreading false information when you don't know what you're talking about.

Please point to the settlement language to back up this statement

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I first started looking (a few years ago), it seemed that open houses were the norm. But these days you often need an agent just to walk through the house. Will that will change?

Think open houses will be more important and the days and times may change. Some agents are already doing open houses on Friday from 4 to 6 pm or 5 to 7 pm depending on daylight. Buyers can walk through the houses without paying an agent and then work directly with the listing agent to write the contract if they don't want to pay a buyer agent. NAR has sold the idea that buyers need an agent to represent them to support the current commission structure, but they really don't. I just wrote a contract for a friend who was buying his neighbor's house. I told him what to do and he did it. Maybe it took 3 hours tops. I am a high volume producer, and my broker gives me lots of leeway to do what I want. Rather than pay me, I asked him to donate $1,000 to a charity I support.

Am I correct that the split can’t be listed on the mls, but can still be worked out between agents off of the mls? Most agents deal with buyers, so won’t seller-agents, (concerned about their own futures w/the bulk of their $$ coming from their future buyer clients), “play nice” and agree to split the fees off of the mls? Of course the sellers will have to agree, but I predict not too much is going to change. Obviously, I could be completely wrong here, I guess we’ll see.

Same responder from above. To clarify further, will we see a bunch of links to websites for houses w/the split listed. So, not via mls, but commission splits are still out there?

That would be a very dumb thing to do legally. Just opening yourself up to a lawsuit. The settlement specifically disallows listing commission splits. If you just do it on a separate website, that's still in violation.

What I do think will happen, especially at first, is verbal agreements between agents, especially in smaller or tightly knit areas where they know each other. Nothing written down, harder to collect a body of evidence.

You're wrong. MLS is the only place where buyers' agents' commissions can't be listed. Stop spreading false information when you don't know what you're talking about.

Please point to the settlement language to back up this statement

In fact, page 28, section "v" on that page, specifically addresses this (can't copy and paste because it's an image only):

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://s3.amazonaws.com/jnswire/jns-media/90/0c/15548394/NAR_Settlement.pdf&ved=2ahUKEwjmiv_1lZyFAxXtElkFHZNQC-AQFnoECDkQAQ&usg=AOvVaw2fo_pnOth5YeBT9B-UN12E

"Agree not to facilitate or support any non-MLS mechanism...for any listing brokers or sellers to make offers of compensation to buyer brokers or other buyer representatives"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I first started looking (a few years ago), it seemed that open houses were the norm. But these days you often need an agent just to walk through the house. Will that will change?

Think open houses will be more important and the days and times may change. Some agents are already doing open houses on Friday from 4 to 6 pm or 5 to 7 pm depending on daylight. Buyers can walk through the houses without paying an agent and then work directly with the listing agent to write the contract if they don't want to pay a buyer agent. NAR has sold the idea that buyers need an agent to represent them to support the current commission structure, but they really don't. I just wrote a contract for a friend who was buying his neighbor's house. I told him what to do and he did it. Maybe it took 3 hours tops. I am a high volume producer, and my broker gives me lots of leeway to do what I want. Rather than pay me, I asked him to donate $1,000 to a charity I support.

Am I correct that the split can’t be listed on the mls, but can still be worked out between agents off of the mls? Most agents deal with buyers, so won’t seller-agents, (concerned about their own futures w/the bulk of their $$ coming from their future buyer clients), “play nice” and agree to split the fees off of the mls? Of course the sellers will have to agree, but I predict not too much is going to change. Obviously, I could be completely wrong here, I guess we’ll see.

Same responder from above. To clarify further, will we see a bunch of links to websites for houses w/the split listed. So, not via mls, but commission splits are still out there?

That would be a very dumb thing to do legally. Just opening yourself up to a lawsuit. The settlement specifically disallows listing commission splits. If you just do it on a separate website, that's still in violation.

What I do think will happen, especially at first, is verbal agreements between agents, especially in smaller or tightly knit areas where they know each other. Nothing written down, harder to collect a body of evidence.

You're wrong. MLS is the only place where buyers' agents' commissions can't be listed. Stop spreading false information when you don't know what you're talking about.

Please point to the settlement language to back up this statement

In fact, page 28, section "v" on that page, specifically addresses this (can't copy and paste because it's an image only):

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://s3.amazonaws.com/jnswire/jns-media/90/0c/15548394/NAR_Settlement.pdf&ved=2ahUKEwjmiv_1lZyFAxXtElkFHZNQC-AQFnoECDkQAQ&usg=AOvVaw2fo_pnOth5YeBT9B-UN12E

"Agree not to facilitate or support any non-MLS mechanism...for any listing brokers or sellers to make offers of compensation to buyer brokers or other buyer representatives"

This is going to get interesting, because NAR is already advertising that offers of compensation are acceptable as long as they occur off the MLS:

"NAR agreed to create a new MLS rule prohibiting offers of compensation on the MLS. This would mean that offers of compensation could not be communicated via an MLS, but they could continue to be an option consumers could pursue off-MLS through negotiation and consultation with real estate professionals." (https://www.nar.realtor/magazine/real-estate-news/law-and-ethics/the-truth-about-the-nar-settlement-agreement)

[Anonymous]

You guys are creating a mountain our of a molehill--and I suspect its the agents who trying to keep their business.

You a tour a house with the seller's agent! For free. You do not need a buyer's agent to show you the house.

The seller's agent will have an incentive to show you the house because they want to sell the house. And the seller will be mad if their agent is not showing the house to potential buyers.

Buyer's agent offers very little to no value.

[Anonymous]

Anonymous wrote:You guys are creating a mountain our of a molehill--and I suspect its the agents who trying to keep their business.

You a tour a house with the seller's agent! For free. You do not need a buyer's agent to show you the house.

The seller's agent will have an incentive to show you the house because they want to sell the house. And the seller will be mad if their agent is not showing the house to potential buyers.

Buyer's agent offers very little to no value.

So who writes your offer?

[Anonymous]

Anonymous wrote:

Anonymous wrote:You guys are creating a mountain our of a molehill--and I suspect its the agents who trying to keep their business.

You a tour a house with the seller's agent! For free. You do not need a buyer's agent to show you the house.

The seller's agent will have an incentive to show you the house because they want to sell the house. And the seller will be mad if their agent is not showing the house to potential buyers.

Buyer's agent offers very little to no value.

So who writes your offer?

Dude it's a form with about 10 boxes/blanks to fill out. We didn't have a buyers agent and had zero issues. Asked the sellers agent for the pre -filled form and filled it out, docusigned it and sent it back. Took 30 minutes.

[Anonymous]

Anonymous wrote:You don't need a real estate agent to buy property. Everything is done by a lawyer anyway. You can go tour the house on your own: Pey a lawyer and the end. Biggest scam there ever was realtor fees and jobs.

Our realtor just wrote the contract. An attorney could easily do this. For closing they bailed and the closing company/attorney handled the rest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You guys are creating a mountain our of a molehill--and I suspect its the agents who trying to keep their business.

You a tour a house with the seller's agent! For free. You do not need a buyer's agent to show you the house.

The seller's agent will have an incentive to show you the house because they want to sell the house. And the seller will be mad if their agent is not showing the house to potential buyers.

Buyer's agent offers very little to no value.

So who writes your offer?

Maybe title companies will expand their services to get involved in helping buyers write offers. It will be in their interest for the paperwork to be done right and they will be able to market themselves to the buyers for closing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You guys are creating a mountain our of a molehill--and I suspect its the agents who trying to keep their business.

You a tour a house with the seller's agent! For free. You do not need a buyer's agent to show you the house.

The seller's agent will have an incentive to show you the house because they want to sell the house. And the seller will be mad if their agent is not showing the house to potential buyers.

Buyer's agent offers very little to no value.

So who writes your offer?

Maybe title companies will expand their services to get involved in helping buyers write offers. It will be in their interest for the paperwork to be done right and they will be able to market themselves to the buyers for closing.

Who is going to create all the forms that just need to be filled in? Right now local realtor boards create most of the forms used. Will settlement lawyers create their own forms. Will there be some consistency among them so that you do not have to pay a lawyer to read the form created by Title Company A or Lawyer B?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You guys are creating a mountain our of a molehill--and I suspect its the agents who trying to keep their business.

You a tour a house with the seller's agent! For free. You do not need a buyer's agent to show you the house.

The seller's agent will have an incentive to show you the house because they want to sell the house. And the seller will be mad if their agent is not showing the house to potential buyers.

Buyer's agent offers very little to no value.

So who writes your offer?

Maybe title companies will expand their services to get involved in helping buyers write offers. It will be in their interest for the paperwork to be done right and they will be able to market themselves to the buyers for closing.

Who is going to create all the forms that just need to be filled in? Right now local realtor boards create most of the forms used. Will settlement lawyers create their own forms. Will there be some consistency among them so that you do not have to pay a lawyer to read the form created by Title Company A or Lawyer B?

They already exist!

[Anonymous]

Hopefully we can still be in the 5% range, split equally, to promote the due diligence needed from agents and recognize the value they add to the transaction. We will be lost without them and yearn for the days of high commissions meaning high quality.

[Anonymous]

I imagine dual agency may become popular.

[Anonymous]

Anonymous wrote:Hopefully we can still be in the 5% range, split equally, to promote the due diligence needed from agents and recognize the value they add to the transaction. We will be lost without them and yearn for the days of high commissions meaning high quality.

Dear god they never stop with this BS.