Ok agent. lol |
What kind of representation seller’s agent gives? Nothing. They are not lawyers and the contract clearly says that.
Why can’t we negotiate all this at an independent platform and you can let a lawyer look at everything. Much cheaper and safer |
You are paying agent fees as a buyer, don’t you see that? |
If you put things in all CAPS it show you mean business. This just means people have the ability to negotiate fees they deem appropriate. Nobody is preventing you from getting a buyers agent and paying them whatever you both agree to. And yes, in the long run, you do get what you pay for. Some people need more, and are perfectly willing to pay for it, which is great! They can pay 5 or 6% if that is what they agree to. But now if you don't want or need as much, you don't have to pay for it, because the cartel pricing is finally broken. |
Yes, I get that it is that way under the current system, and I agree that change is needed. Although I think it is naive to believe that the a la carte system paid by buyers won't end up advantaging wealthy buyers further in competitive markets. In more balanced markets or in a buyer's market, the a la carte system has more clear benefits for buyers and sellers. |
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. |
As someone who is saving up for a condo, I’m not really happy with this decision. Now not only will I have to have money for a downpayment and closing costs, but also agent costs. Sellers probably won’t want to pay buyers agents, and I don’t want to a first time home buyer without one. It seems to shift more burden onto buyers. But it seems like many are happy with this decision. |
Yes, you will have to save up more money (or purchase a cheaper condo) to pay for the agent to represent you. You may also have to pay per hour unless you want to compensate the agent with a higher commission percentage. As you may not find a home in the end, a buyer agent working on commission will likely want similar to the 2-3pct today. This whole change is penny wise and pound foolish. |
You were paying for agent costs before. The price was just baked into the sales price. Now it's going to be separated and you can negotiate how much you want to spend. The market will settle and there will be standard price points based on service level- just like everything else you pay for. Yes the transition period may take a couple of years to shake out. But that's no reason to extend a horribly inefficient system.. And I am truly sorry for the realtors losing their jobs. Nothing personal, but many of you were just free riding on the cartel overly inflating the prices for your services. The good news is that those who actually can consistently provide value will be able to continue to do so. |
Cartel system is broken.
System will find it's floor like many other developed countries where it cost 1-2% total. Stock brokers used to cahrge useless fees and cartel was broken eventually. About time, americans stop wasting 5% of biggest purchase of their life. Agent can be useful but not as much as 5%. 30-40 bucks an hour is more than enough. 10 hours - 400 bucks 100 hours - 4000 bucks 200 hours - 8000 bucks Hourly contract just like any other work will do fine. |
Buyers agents are going to in overdrive to get closing done before July now to collect easy money.
Number of buyers will dry after July. Anyone waiting to list , should list quickly. |
American home sellers are the population that will benefit from this the most. And the reality is that they needed the least. Home prices continue to be at record highs. It is a great time in America to be selling a home.
From a consumer perspective, the group that is the most currently screwed over is people who are buying homes. Interest rates are high, and prices are at highs. The market is incredibly tight. And now, Buyers will either have to go into this incredibly competitive market with new representation, or they will have even more costs, and what is basically already an untenable market for homebuyers. Buyers who use companies like Redfin, or populations such as veterans who use the USAA referral plan will no longer get rebates. Also, many agents give rebates to their buyers, especially if they are working the sale side of the transaction as well. Those rebates help offset the ever-increasing closing costs. As an agent I do fully recognize that is some markets, the commissions are ridiculous, but I just don’t see how this benefits any homebuyer in America right now. |
My buyer-client is now desperately trying to purchase before July, because I’m giving her a large rebate. I also feel pretty bad for Redfin, who actually tried to have a consumer minded model. This will gut that business model. |
There is no way that I would represent anybody and do 10 hours of work to collect $400. However, I am now thinking about getting a brokers license and starting an hourly brokerage that represents Buyers. I’ll hire a bunch of novice real estate agents and take a cut of their business. |
We pay 4.5% as the seller same as you are lookin to do. How the 4.5% is split b/t buyer agent vs seller agent is up to them. Some deals are 3/1.5, some are 2/2.5. Buyer agents are really on the side of the seller when it comes to price negotiation. They are there to persuade their clients to buy the house at the price that the seller is willing to settle on. Both sides are trying to simply make a deal at a price that their clients can swallow. Buyer agents are on the side of their clients when it comes to researching and finding the right house(s) to present. |