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.

Anonymous wrote:3 years from now when total commissions (seller and buyer) are 2%, people will look back and wonder how the real estate agent industry, which is almost exclusively comprised of mediocre, unimpressive people, was able to take advantage of the public for so long and at such great cost. Watching that "profession" disintegrate over the next few years is going to be enjoyable.

people are sheep and aren’t bright. Remember the Covid cloth masks?

I’m so happy I’m no longer forced to go along with such a scam.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Anyone who can "scrape together" a down payment on a home these days also has discipline and is smart enough to pay the buyers agent directly. Geez. I agree that if you can't do that, you have no business buying a house.

An FHA down payment is 3.5%. VA loans are often zero down. In neither case is that buyer going to have another 3% sitting around. We're going to shift to low cost fee only agents, just like the rest of the world. There is no justification for paying a buyer's agent 3% when most buyers find their homes on zillow and are perfectly capable of going to open houses themselves

The apparent justification according to previous posters on this thread:

Buyer agents are entitled to live in neighborhoods with million dollar homes.
Buyer agents are entitled to work with buyers regardless of whether or not the buyer needs/wants the agent.
Buyer agents are entitled to 2.5% commission regardless of the value they bring to the transaction.

Scrutinizing these buyer agent entitlements will lead to the collapse of our society.

Try and negotiate on your own and see what happens. When you are making the largest financial purchase of your life might you want representation from a professional who does this every single day? Who is looking out for a buyer's interest? The listing agent will be paid more and buyers will not have any representation or advice.

god I wish I could have negotiated on my own. I hated playing a game of telephone with the largest financial purchase of my life. I don’t think any buyer’s agent I’ve used has ever had my back or wanted me to pay the best price. I hated being forced to go through at agent and for one transaction, did it on my own and it wasn’t difficult at all.

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.

3 years from now when total commissions (seller and buyer) are 2%, people will look back and wonder how the real estate agent industry, which is almost exclusively comprised of mediocre, unimpressive people, was able to take advantage of the public for so long and at such great cost. Watching that "profession" disintegrate over the next few years is going to be enjoyable.

Anonymous wrote:

Anonymous wrote:Try and negotiate on your own and see what happens.

Certainly not everyone but many people are capable of negotiating large purchases.

Anonymous wrote:When you are making the largest financial purchase of your life might you want representation from a professional who does this every single day? Who is looking out for a buyer's interest?

That’s a reasonable justification for a competitive marketplace of agent services (fee-for-service, commission, etc...) for buyers who feel more comfortable delegating negotiating responsibility.

What’s being taken to task here is the fixed fee buyer-broker scheme and the idea that this along with compulsory buyer representation is necessary for every real estate transaction.

Exactly. Imagine if all the stock brokers came together and said they wanted all stock purchases and sales to go through them for a 1% commission, because otherwise people might make bad investments, might make mistakes, might get taken advantage of, etc. That would be crazy. But that model exists for anyone who wants it, and many people do use full-service brokers and wealth managers. But there are much lower-cost options for people who want less handholding, and many people use those also. Choice is a great thing.

Anonymous wrote:Try and negotiate on your own and see what happens.

Certainly not everyone but many people are capable of negotiating large purchases.

Anonymous wrote:When you are making the largest financial purchase of your life might you want representation from a professional who does this every single day? Who is looking out for a buyer's interest?

That’s a reasonable justification for a competitive marketplace of agent services (fee-for-service, commission, etc...) for buyers who feel more comfortable delegating negotiating responsibility.

What’s being taken to task here is the fixed fee buyer-broker scheme and the idea that this along with compulsory buyer representation is necessary for every real estate transaction.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Anyone who can "scrape together" a down payment on a home these days also has discipline and is smart enough to pay the buyers agent directly. Geez. I agree that if you can't do that, you have no business buying a house.

An FHA down payment is 3.5%. VA loans are often zero down. In neither case is that buyer going to have another 3% sitting around. We're going to shift to low cost fee only agents, just like the rest of the world. There is no justification for paying a buyer's agent 3% when most buyers find their homes on zillow and are perfectly capable of going to open houses themselves

The apparent justification according to previous posters on this thread:

Buyer agents are entitled to live in neighborhoods with million dollar homes.
Buyer agents are entitled to work with buyers regardless of whether or not the buyer needs/wants the agent.
Buyer agents are entitled to 2.5% commission regardless of the value they bring to the transaction.

Scrutinizing these buyer agent entitlements will lead to the collapse of our society.

Try and negotiate on your own and see what happens. When you are making the largest financial purchase of your life might you want representation from a professional who does this every single day? Who is looking out for a buyer's interest? The listing agent will be paid more and buyers will not have any representation or advice.

I think this article is correct- we'll move closer to fee for services as low cost services push prices down https://www.cnn.com/2024/03/20/business/realtor-settlement-low-commission-uk/index.html

I've used discount agent with my past two purchases. I found the houses myself on zillow. Arranged for a tour with the agent. The agent submitted the bid and showed up to closing. After closing, I got a check for 75% of the buyer's commission. I'd expect it to be more open and less opaque going forward

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Anyone who can "scrape together" a down payment on a home these days also has discipline and is smart enough to pay the buyers agent directly. Geez. I agree that if you can't do that, you have no business buying a house.

An FHA down payment is 3.5%. VA loans are often zero down. In neither case is that buyer going to have another 3% sitting around. We're going to shift to low cost fee only agents, just like the rest of the world. There is no justification for paying a buyer's agent 3% when most buyers find their homes on zillow and are perfectly capable of going to open houses themselves

The apparent justification according to previous posters on this thread:

Buyer agents are entitled to live in neighborhoods with million dollar homes.
Buyer agents are entitled to work with buyers regardless of whether or not the buyer needs/wants the agent.
Buyer agents are entitled to 2.5% commission regardless of the value they bring to the transaction.

Scrutinizing these buyer agent entitlements will lead to the collapse of our society.

Try and negotiate on your own and see what happens. When you are making the largest financial purchase of your life might you want representation from a professional who does this every single day? Who is looking out for a buyer's interest? The listing agent will be paid more and buyers will not have any representation or advice.

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?

You must be talking with discount brokerages if the total fee is 3%

Anonymous wrote:

Anonymous wrote:
Anyone who can "scrape together" a down payment on a home these days also has discipline and is smart enough to pay the buyers agent directly. Geez. I agree that if you can't do that, you have no business buying a house.

An FHA down payment is 3.5%. VA loans are often zero down. In neither case is that buyer going to have another 3% sitting around. We're going to shift to low cost fee only agents, just like the rest of the world. There is no justification for paying a buyer's agent 3% when most buyers find their homes on zillow and are perfectly capable of going to open houses themselves

The apparent justification according to previous posters on this thread:

Buyer agents are entitled to live in neighborhoods with million dollar homes.
Buyer agents are entitled to work with buyers regardless of whether or not the buyer needs/wants the agent.
Buyer agents are entitled to 2.5% commission regardless of the value they bring to the transaction.

Scrutinizing these buyer agent entitlements will lead to the collapse of our society.

Anonymous wrote:

Anonymous wrote:
Anyone who can "scrape together" a down payment on a home these days also has discipline and is smart enough to pay the buyers agent directly. Geez. I agree that if you can't do that, you have no business buying a house.

An FHA down payment is 3.5%. VA loans are often zero down. In neither case is that buyer going to have another 3% sitting around. We're going to shift to low cost fee only agents, just like the rest of the world. There is no justification for paying a buyer's agent 3% when most buyers find their homes on zillow and are perfectly capable of going to open houses themselves

This

Anonymous wrote:
Anyone who can "scrape together" a down payment on a home these days also has discipline and is smart enough to pay the buyers agent directly. Geez. I agree that if you can't do that, you have no business buying a house.

An FHA down payment is 3.5%. VA loans are often zero down. In neither case is that buyer going to have another 3% sitting around. We're going to shift to low cost fee only agents, just like the rest of the world. There is no justification for paying a buyer's agent 3% when most buyers find their homes on zillow and are perfectly capable of going to open houses themselves

Anyone who can "scrape together" a down payment on a home these days also has discipline and is smart enough to pay the buyers agent directly. Geez. I agree that if you can't do that, you have no business buying a house.

Anonymous wrote:I don't think you understand. First-time homebuyers have to scrape to come up with cash for down payment. Now they'll be expected to pay their buyers agents directly?

You falsely assume the buyer agent is a requirement. At the least all they need is a few thousand in attorneys fees.

Anonymous wrote:If you think this is going to cut buyer agents out of these transactions entirely, I think you're likely mistaken.

Why would every transaction require a buyer agent? First-time homebuyers would perform buyer-agent tasks. It's extra work, but that's a personal financial decision.

Anonymous wrote:Otherwise, it'll become like people trying to buy cars at dealerships.

What's your point? Should sellers of automobiles pay for agents to represent buyers? No because that would be absurd, right?