New Commission -3%

[Anonymous]

Can't get over the agents on his acting like they are providing some kind of specialized service like lawyers or architects. YOU UNLOCK DOORS for a living.

[Anonymous]

How much money do realtors stand to lose now? I seem to know a few realtors in this area who have been making good money for years and it seems their income will be drastically cut

[Anonymous]

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.

Yes the only way to fix this sort of thing is obviously price fixing. As if there aren't plenty of buyer agents who don't know what they are doing, and have buyers relying on them to do due diligence that they don't actually do. Because they are gonna get their 2.5-3% either way! Now they won't.

[Anonymous]

Anonymous wrote:How much money do realtors stand to lose now? I seem to know a few realtors in this area who have been making good money for years and it seems their income will be drastically cut

Hard to say exactly- over time things will shake out and probably some sort of standardized pricing tiers will emerge. Personal bet is that the combined commissions will drop to somewhere between 3-4%, depending on size of the deal, complexity, etc.

[Anonymous]

Anonymous wrote:Can't get over the agents on his acting like they are providing some kind of specialized service like lawyers or architects. YOU UNLOCK DOORS for a living.

Also acting like it's some sort of divine law that commissions are fixed.

Imagine going to a few architects and describing what sort of house you want to build, and every one saying "well, standard price for a home design, per the National Association of Architects, is $100k".

[Anonymous]

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.

You know, a lot of people would retort that a lot of buyers are taken advantage of every day under the current rules because they may not be savy enough to catch on the conflict of interest inherent in a system where the person purporting to represent me is actually being paid by the guy who is supposed to be against me in the transaction.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If this settlement goes through it is a big deal and will upend the whole real estate industry. Winner in the end will be Zillow, CoStar/homes.com and other listing portals.

Buyers will be alone and at the mercy of listing agents working for sellers again. We will have lawsuits and more regulation, making it more expensive for everyone to transact real estate. For example, there will likely be the need for “transfer insurance” purchased by the seller to protect themselves against lawsuits from unrepresented buyers (as is the case in many countries abroad.)

Regardless, short term the pain will be felt by Realtors and brokerages. The high interest rates, low volume of transactions and a loss of 50pct of the commission pot, will make more than half the real estate agents leave the industry and let their licenses expire. Buyer agency is dead - nobody but some of the well off will want to pay enough to make it worth it for the agent. The ones that need the buyer agent the most will be the ones least able to afford one.

Agents on this board are understandably frustrated - their current careers are likely over. Hopefully the economy doesn’t go into full recession as well.

Wrong. Look at zillow stock price today when the news came out.

Zillow is done. They make a lot of money selling buyer leads to agents which no agent in their right mind is going to pay for now.

[Anonymous]

Anonymous wrote:It’s ideal if you’re selling your house and then buying new construction — not much of a need for a buyers agent with new construction from a builder imo.

Because builders never try to take advantage of buyers, lol.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If this settlement goes through it is a big deal and will upend the whole real estate industry. Winner in the end will be Zillow, CoStar/homes.com and other listing portals.

Buyers will be alone and at the mercy of listing agents working for sellers again. We will have lawsuits and more regulation, making it more expensive for everyone to transact real estate. For example, there will likely be the need for “transfer insurance” purchased by the seller to protect themselves against lawsuits from unrepresented buyers (as is the case in many countries abroad.)

Regardless, short term the pain will be felt by Realtors and brokerages. The high interest rates, low volume of transactions and a loss of 50pct of the commission pot, will make more than half the real estate agents leave the industry and let their licenses expire. Buyer agency is dead - nobody but some of the well off will want to pay enough to make it worth it for the agent. The ones that need the buyer agent the most will be the ones least able to afford one.

Agents on this board are understandably frustrated - their current careers are likely over. Hopefully the economy doesn’t go into full recession as well.

Thanks for this tidbit. Listing soon.

You know, it is not hard to buy a house without a buyer's agent? We did this more than 10 years ago (before this new policy) and it was easy, and the seller's agent accepted a lower price because she did not have to pay the buyer's agent. Worked out for all parties.

Good luck getting a house under ask in this market lol.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The new deal…whatever it will be….. will reduce the number of realtors substantially. For many it is part time work with little expertise needed so if you sold a few houses a year you could make decent money. What will be interesting is if someone comes up with a new model that really revolutionizes the industry the way internet travel sites disrupted the travel agent business.

Yes, completely agree. I recall a Shark Tank episode several years ago where someone had developed an app that allowed a prospective home buyer to come across a home for sale and, using the app, unlock the lockbox and tour the home without the buyers agent physically there. Barbara (who is a realtor) was dead set against it. I don't think it got a deal. But that's an example of innovation that was stymied because real estate agents wanted to make sure buyers agents weren't being cut out. It's going to be really cool to see how AI and automation change this up.

Or maybe bc letting random people into your home with no accountability is a stupid idea?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The new deal…whatever it will be….. will reduce the number of realtors substantially. For many it is part time work with little expertise needed so if you sold a few houses a year you could make decent money. What will be interesting is if someone comes up with a new model that really revolutionizes the industry the way internet travel sites disrupted the travel agent business.

Yes, completely agree. I recall a Shark Tank episode several years ago where someone had developed an app that allowed a prospective home buyer to come across a home for sale and, using the app, unlock the lockbox and tour the home without the buyers agent physically there. Barbara (who is a realtor) was dead set against it. I don't think it got a deal. But that's an example of innovation that was stymied because real estate agents wanted to make sure buyers agents weren't being cut out. It's going to be really cool to see how AI and automation change this up.

Or maybe bc letting random people into your home with no accountability is a stupid idea?

Huh? I am sure that the company running the app would have liability if anything went wrong. The point is that there are probably a whole lot of different ways to buy and sell homes that have been stymied by these archaic and illegal rules.

[Anonymous]

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.

You know, a lot of people would retort that a lot of buyers are taken advantage of every day under the current rules because they may not be savy enough to catch on the conflict of interest inherent in a system where the person purporting to represent me is actually being paid by the guy who is supposed to be against me in the transaction.

+1

[Anonymous]

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.

Your example could work for so many things -- buying a used car, hiring a contractor to renovate your kitchen, doing your taxes, getting a divorce. If "uninformed" people want to do these things on their own, they can. If they feel like they need representation, they can pay for it. And if there are enough problems, regulation can happen. None of this requires that everyone in these situations pay a mandatory, fixed fee for someone to represent their interests.

[Anonymous]

Anonymous wrote:
The new deal…whatever it will be….. will reduce the number of realtors substantially. For many it is part time work with little expertise needed so if you sold a few houses a year you could make decent money. What will be interesting is if someone comes up with a new model that really revolutionizes the industry the way internet travel sites disrupted the travel agent business.


Yes, completely agree. I recall a Shark Tank episode several years ago where someone had developed an app that allowed a prospective home buyer to come across a home for sale and, using the app, unlock the lockbox and tour the home without the buyers agent physically there. Barbara (who is a realtor) was dead set against it. I don't think it got a deal. But that's an example of innovation that was stymied because real estate agents wanted to make sure buyers agents weren't being cut out. It's going to be really cool to see how AI and automation change this up.

This is how Tesla sells its cars. You use the app, go to the parking lot, unlock the car, and test drive it (you get an hour) and then return it. Someone texts you to ask how it went and if you have any questions. That's it. Guess what? There is no middleman (dealer) and they actually sell cars this way. You go to a warehouse to pick up your car that you ordered. No papers. Everything is done online. Easy and it works. As someone said, it's hard to change old habits and systems, but it is definitely possible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
The new deal…whatever it will be….. will reduce the number of realtors substantially. For many it is part time work with little expertise needed so if you sold a few houses a year you could make decent money. What will be interesting is if someone comes up with a new model that really revolutionizes the industry the way internet travel sites disrupted the travel agent business.


Yes, completely agree. I recall a Shark Tank episode several years ago where someone had developed an app that allowed a prospective home buyer to come across a home for sale and, using the app, unlock the lockbox and tour the home without the buyers agent physically there. Barbara (who is a realtor) was dead set against it. I don't think it got a deal. But that's an example of innovation that was stymied because real estate agents wanted to make sure buyers agents weren't being cut out. It's going to be really cool to see how AI and automation change this up.

This is how Tesla sells its cars. You use the app, go to the parking lot, unlock the car, and test drive it (you get an hour) and then return it. Someone texts you to ask how it went and if you have any questions. That's it. Guess what? There is no middleman (dealer) and they actually sell cars this way. You go to a warehouse to pick up your car that you ordered. No papers. Everything is done online. Easy and it works. As someone said, it's hard to change old habits and systems, but it is definitely possible.

But for housing? Maybe for vacant new builds or otherwise vacant existing homes. Otherwise, as a seller, I would want someone physically there....