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[quote=Anonymous][quote=Anonymous][quote=Anonymous]NP.  Can someone explain how the new rules would impact buying?  Could we offer say a flat fee or 1% to a buyers agent?  [/quote]

Sellers no longer commit to a percentage paid to a buyers' agent in advance.  Buyers can request concessions in their offer, including to pay an agent.  Offers requesting lower concessions will be more attractive to sellers.  This benefits buyers because a buyer can forego using an agent or use a discount agent and make a more attractive offer at a lower price.  For instance, if buyer A offers $1M and requests a 2.5% seller concession to pay her agent, A's offer is really $9,750,000.  If buyer B foregoes an agent B can offer, say, $980,000 with no concession and the seller will likely accept B's offer over A's, even though it's nominally for a lower price.  B could also, say, offer $1M and request a $20,000 concession to be paid towards the buyer's closing costs and would still beat A's offer by $5K.

If B wanted to use an agent, B could find a discount agent charging, say, 1%, and could, for example, offer $990,000, request a $10K concession for the agent, and still beat out A's offer.

[/quote]

So basically do exactly what anyone who has bought a house during the internet age has said it should work!

ie I should be able to put an offer in on a house without a realtor getting in the way, and have my offer be 2.9% less than the next best offer, and still be the most attractive offer for the buyer.  But instead, when i posted that question in like 2005 on dcum (which I'm sure I did!! Because this is the obvious answer of how things should work when all houses are available online) I was told there was absolutely no rationale for doing this approach, and under the seller agent contract, the seller agent would just get to keep 6% total commission from the sale. Absolute insanity.  [/quote]

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