I think people will really need to educate themselves and truly start reading the agreements. Seems like some agents could be sneaky and try to double dip and get paid in full by both the seller and the buyers if they play dirty.
Starryeyedcathy
I’ve always felt that many buyer agents don’t do shit! I actually found houses and they called the seller agent so I can see the house. Glad this is happening.
ebelen
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
JacobPaul-np
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
Pat_laura
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
nicolasbenson
Its hard to feel bad for agents. Every single one ive used has been a nightmare to deal with and i do everything myself better even as a first time buyer and then seller. They literally get paid to ignore you and do nothing. Especially new construction. As soon as i signed the build contract he ghosted me and i couldnt fire him since his name was in the contract. Scam artists.
vytis
Best to just sell it yourself. The majority of agents I've met and talked with have NO CLUE what they're doing. Why pay an agent to do what a lawyer can do for you for way less? I've sold a house on my own. Easiest process ever. You can do it!
kenrichmond
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
kortyEdna
With the emergence of of Zillow and Redfin … what value does a buyers agent really bring … they help with paper work but thats not worth 3%
xXCozyJxX
Too complex. In simple terms “the industry” baked in a 6% commission through omission, training and practice over the last four decades, when commissions are and always have been negotiable. The NAR suit was a bunch of sellers realizing just how much 6% really is (i.e. too much) and entered a class action against a number of brokerages and NAR.
Buyers just need to be very specific in their agreements. Yes, you control the wording in the agreement. You can say “I will pay X commission on X home or homes upon successful closing. Do your due diligence prior to talking to an agent.
All in all this is just another step to flat fee services and the inevitable dematerialization of the agent role in the “median” market because the reality is in this competitive market most sales do only require a showing and a basic template contract that all realtors have stored in their lap top waiting to fire off at a moments notice. Essentially you’re paying them to be bothered and distracted from whatever they may be doing with their time when you call them, but consider that in light of 6% on a $500, 000 home is $30, 000. You decide…
patmagic
Bro, the best thing to do for investing. Everybody in this country should do. Is every time you're gonna go buy a property? Or you're gonna go do business like that. You're gonna pay 500 bucks, tops. And if the real estate agent doesn't like it. They can quit, cause you're the one with the money to buy the house. You're the one with the credit. You're the one that's ready to do this. If they want to eat, they take their little 500 bucks and go. But there's no way that we should allow these real estate agents to make more than 500 bucks. Purcell, because people like us have to go to work the next day after we get paid. And these people can go to cabo for a week after a sale.I don't think so
kiamike
Such a dumb system, here in the UK the seller registers their house with an Estate Agency, which is like a shop a buyer can go into and there will be the details of hundreds of houses organised by region and price. You can still organise viewings and everything else via the Estate Agent. The seller pays the Estate Agency 1.5-2% end of conversation, buy pays nothing.
cariad
3% is an insane amount for the actual work and time that is actually invested. In my opinion they should get paid based on time
ThatCarGuyEddie
The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that or generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 48.
Duttonmuffins
Soon the buyer will pay open houses 🏘 😂😂
damirzeric
Happy you have 100K+ subs, keep providing value for the little guy !
foopanther
The problem with framing that the seller is “saving” this commission is that you have to assume that the commission arrangement prior to this settlement was fair and market which clearly is was not.
EatonZ
Sellers think they had a big win but they really didn’t. I think they will be hurt by the changes. I think foot traffic to the homes will decrease. I am not paying anyone to open a door for me. I will wait for the open house. If I like it ad want a second look or I want to make an offer then I will contact a buyers agent. If they don’t have an open house I will pass on that house.
I suspect a lot of others will do the same.
ahamlet
1. Don’t sign anything you don’t read.
2. Don’t sign anything you don’t agree to or is not in your best interest.
3. Always negotiate a contract.
What is happening here is to the benefit of the buyer, no one else. For the longest time, the buyer has been left out of the information and due to that lack of information has been at a disadvantage. The truth is for people who are lazy, they are going to continue to get taken advantage of by real estate agents. If you take the time and put in the work, you will come out on top.
If an agent isn’t willing to modify the contract so that it is in your interest as well, walk and find one that will.
I see a lot more effort needing to come from real estate agents in the future when it comes to negotiating in the best interest of their clients and not just trying to sell solely for the commissions.
Knowledge is NEVER going to hurt you. Your ambivalence will.
pederrottiger
This is just a final nail in the buyer agents coffin. The pay scale to open doors has been way too high for decades.
Buyers will simply start contacting sellers agents directly or simply hire a Real Estate Atty.
