Anonymous
Post 03/16/2024 08:39     Subject: New Commission -3%
Anonymous wrote:+1

50 hours on average is enough.

Tippy Toppy agents should get 100 bucks an hour and it will be 5K extra frcition cost for a buyer.

Couple of thousands should be enough in most cases just like all other countries. Agents are not doing anything extra in US for charging that high.


I would have happily paid 2x this for our buyers agent last year. Assuming 50h of work, which feels right, at $200/hr (the going rate for other skilled DMV professionals including our architect), my buyers agent would take home $10k on last years home sale vs the $36k he actually did. So glad we’re finally calling attention to the monopoly racket that has been home buying and closing costs
Anonymous
Post 03/16/2024 08:30     Subject: New Commission -3%
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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.


You can make a free above ask and use the extra money to pay your agent.




Offer above ask*


This would mean that on top of everything else, the buyer would be rolling the cost of the realtor into the cost of the loan and paying it off over 30 years..




Under the current system the buyer’s agent fee is added to the cost of the loan and buyers pay it off over 30 years. Under the new system, buyers will have the option of foregoing some or all of this fee, and having a smaller loan


Let’s all dispel ourselves of the notion that prices will come down. (The Redfin CEO was interviewed yesterday and he said the same). So now the buyer will pay the same price and on top of that will have to pay for or finance representation or go without.
Anonymous
Post 03/16/2024 08:09     Subject: New Commission -3%
+1

50 hours on average is enough.

Tippy Toppy agents should get 100 bucks an hour and it will be 5K extra frcition cost for a buyer.

Couple of thousands should be enough in most cases just like all other countries. Agents are not doing anything extra in US for charging that high.
Anonymous
Post 03/16/2024 07:28     Subject: New Commission -3%
Anonymous wrote:
Anonymous wrote: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.



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.


Sure, you can charge 50-60 bucks an hour or if you think you are really someone special even 100 bucks an hour. 100 bucks hourly rate is very high and most skilled progfessions don't get that.

For 10 hour it will come to 1000 bucks
For 50 hours it will come 5000 bucks

So depending on hours spend you will get paid just like any other labor. It's fair to you because you get paid based on what time you have to sepnd and its fair to buyer as well. Both sides should be happy. yrs, hiring people by opening a broker is not a bad idea. Industry will settle on a lot lower cost of doing transaction for house like it's in most countries. Good agent/broker will still make a good living but time for poecketing 10K for 5 hours of work is over.
Anonymous
Post 03/16/2024 07:24     Subject: New Commission -3%
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.
Anonymous
Post 03/16/2024 07:09     Subject: New Commission -3%
Anonymous wrote: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.


BS, the remuneration of the buyer’s agent will just become another negotiation item when closing the deal. It does not have to be part of the closing costs.
Anonymous
Post 03/16/2024 07:01     Subject: New Commission -3%
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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.


You can make a free above ask and use the extra money to pay your agent.


Offer above ask*


This would mean that on top of everything else, the buyer would be rolling the cost of the realtor into the cost of the loan and paying it off over 30 years..




Under the current system the buyer’s agent fee is added to the cost of the loan and buyers pay it off over 30 years. Under the new system, buyers will have the option of foregoing some or all of this fee, and having a smaller loan
Anonymous
Post 03/16/2024 07:01     Subject: New Commission -3%
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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.


You can make a free above ask and use the extra money to pay your agent.


Offer above ask*


This would mean that on top of everything else, the buyer would be rolling the cost of the realtor into the cost of the loan and paying it off over 30 years.





Which is precisely what they are doing now. Under the new system it will become more transparent to them and they will think more about how much the door opener who fills out a standard form for them is actually worth to them.
Anonymous
Post 03/16/2024 06:57     Subject: New Commission -3%
Anonymous wrote: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.


I wouldn’t worry too much about that. The agents will figure it out. The buyer is always paying the agent but it is baked in the sales price. That can still be agreed between agents during the transaction. You offer say 10k more under the condition that seller pays your agent. It will have a minimal impact on your monthly payment. You can also just look for houses yourself and involve a lawyer at the end. Again, you can bane it into your offer so that you do not need to go out of pocket. I am also sure agents will find other creative ways to help buyers, but overall the cost of their representation should go down. And that is a good thing.
Anonymous
Post 03/16/2024 06:06     Subject: New Commission -3%
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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.


You can make a free above ask and use the extra money to pay your agent.


Offer above ask*


This would mean that on top of everything else, the buyer would be rolling the cost of the realtor into the cost of the loan and paying it off over 30 years.



Anonymous
Post 03/16/2024 06:03     Subject: New Commission -3%
The buyers agents should be happy. They will be able to negotiate their remuneration with their clients. Since it is such a highly skilled job and they work so hard, as we have been hearing, why shouldn’t they negotiate more than 3 percent? Why not ten percent? Everything is to play for. Let’s see how the free market values their ability to scour the MLS.
Anonymous
Post 03/16/2024 06:02     Subject: New Commission -3%
Agent here. The ironic twist here is that it’s actually the buyer who most needs representation. They are the party that assumes a massive debt and needs help and advice to deal with lenders, inspection, title, negotiating, seeing homes etc. They are the party that actually needs expertise and experience.

Anyone can pretty up a home for sale and put it on mls.

When I first started out, someone told me “if you list, you last”. That’s bc you can hang lockboxes on 20 properties and let the offers roll in. Buyer representation is way more time and expertise intensive, and the client has a lot to lose without good respresentation.
Anonymous
Post 03/16/2024 05:23     Subject: New Commission -3%
Anonymous wrote:
Anonymous wrote: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.


You can make a free above ask and use the extra money to pay your agent.


Offer above ask*
Anonymous
Post 03/16/2024 05:23     Subject: New Commission -3%
Anonymous wrote: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.


You can make a free above ask and use the extra money to pay your agent.
Anonymous
Post 03/16/2024 03:24     Subject: New Commission -3%
This seems to be great news for listing agents who get a ton of listings, good news for sellers who can pocket more profit, neutral on home prices, and severely negative on buyers who lost the free service paid from sellers pocket.

Now buyers are going to have to pay their own (usually low value) agent or, even worse, be squeezed by the listing agent to pay them to write an offer. Listing agents are no longer incentivized to rep both sides. They’ll require an upfront contract from any unrepresented buyers.

The old system sucked, but the new one just means closing costs went up for buyers.

The cabal still exists, which always was made up of the small percentage of agents who get the vast majority of listings. There will be fewer agents, but the ones that go away never had market power to begin with.