NAR LAWSUIT SETTLEMENT - What Does This Mean For Buyers Agents?

In a groundbreaking development, the National Association of Realtors (NAR) has reached a pivotal settlement, reshaping the landscape of real estate transactions. But what does this mean for Buyer Agents? Jennifer Nicely from Pinnacle Real Estate Academy delves into the intricacies of the settlement and its far-reaching implications for professionals in the field.

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💡 Why You Need to Watch 💡

-Discover the Settlement: Learn about the key components of the NAR settlement agreement and its nationwide impact.
-Understand the Changes: What’s changing for Buyer Agents? Jennifer breaks down the new rules and what they mean for your daily operations.
-Adapt and Thrive: Find out how Buyer Agents can adapt to these changes, from negotiating compensation to engaging with clients.
-Navigate with Confidence: Equip yourself with the knowledge to navigate this new era in real estate with confidence and clarity.

🌟 Don’t Miss Out on Expert Insights 🌟
Jennifer Nicely offers her expert insights, ensuring you're well-informed and ready to tackle the challenges and opportunities this settlement presents. Whether you’re a seasoned professional or just starting out, this video is a must-watch to understand the evolving real estate landscape.

👀 Stay Ahead of the Curve 👀
The real estate industry is constantly evolving, and so should you. Watch the full video to get ahead of the game and ensure you’re prepared for what’s coming. This is your chance to turn challenges into opportunities and set yourself apart in the competitive real estate market.

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[CameronFussner]

People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.

[Mrtrainer]

As a real estate trainer and a real estate agent with 25 years of experience, I am surprised, that NAR didn't use the following defense:
"the 6% commission readily shared by the listing agents with agents who bring buyers is a great tool to create much higher exposure of the properties and, thus, selling the properties for much higher prices. Thus, sharing the 6% commission benefits our clients who are the sellers". By not using this point NAR has let its members down.

[justbob]

After 41 years of being a producing, active Realtor, I can say that this video is drastically understating the probable negative impact this will have on Buyer Representatives. She attempts to make it sound as simple as presenting a written offer with an addendum attached that asks the seller to pay the Buyer Broker's commission. What happens when the seller refuses, and the buyer says they absolutely love this home, and they won't pay any commission? The buyer will simply go direct to the listing broker. Most residential buyers WILL NOT sign a Buyer Broker agreement that commits them to pay a commission... Especially experienced buyers. The smart play for buyers will be to contact the Listing Brokers directly and confirm that they won't be charged any commission as a Buyer if they choose to have the listing broker represent them in the transaction (Limited Dual Representation).

[s.j.]

If buyers have to pay the buyer's agent's fee then there will be less buyers in the market. That fee cannot be rolled into the mortgage. It will be an additional 2-3% of the purchase price or a flat fee = either way it will be more money to come up with up front for the buyer.

[thinkbetterhealth]

I agree with some of the comments that this will harm buyers more than we know. So the seller has an agent, but the buyer doesn’t? Most sellers will not want to pay a buyers agent if they don’t have to. Buyers won’t hire an agent for fear of having to pay and will opt to DIY. It might be helpful if buyers agents charge a flat fee so that the buyer will know exactly what they have to pay instead of a percentage, with the added knowledge that the buyers agent will at least ask the seller to pay, but with no guarantee. Also having to negotiate at each offer to a seller. Really? By that time the buyers agent has done quite a lot of work showing houses and possibly writing up offers. Who wants to do that, it’s costly. What’s to stop the buyer from just contacting the seller directly. Seems like a mess to me.

[JillMaurer]

Buyer's agency didn't take place until the early 1990s is true. What used to happen was that both agents worked for the seller without the buyer realizing it. That's why the concept of buyer's agency was started. It was to prevent driving around chatting with a an agent without realizing they were telling everything you said to the seller. The problem with this new plan as I see it is that the buyer's agent will have to negotiate commission every time they go to show a house. It's true that this is the way it has been done in commercial deals, but this why commercial deals are not as transparent and take much longer to close. It's also the reason there is no common listing service in commercial real estate.

[Mario-nkse]

This is free country, if you choose to sell or buy a home on your own then have at it.

If you want a professional to help you navigate thru the buying or selling process then you will need us to help you.

I think change is great, this opens opportunities to negotiating my real estate agent fees just like attorneys.

[sunlite]

Not much experience buying the two houses I owned. Never used a buyers agent. What will a buyers' agent do for a buyer. Negotiate? Inspect? Write a contract? What does a buyers agent do that the sellers can't do? Aren't homes sold as is? Subject to inspection and repair? Is a buyers agent necessary? Seems a listing agent can just live off the listings. If the buyer goes to an RE agency and the agent is the listing agent should a buyers pay a buyers agent?



Reply

[waynesantelli]

It is a huge problem, for the buyers, in my opinion. It is already so hard for a home buyer who is already scrimped and saved for that down payment. Are they going to finance a bac now too? What it means is even less people have access to housing. Ask yourself, how many sellers are reasonable with their pricing expectations to begin with? Now there is blood in the water....

[victorpistone]

I want to know how NAR has $418mil of our money to pay out?

[ab-qnkv]

Virtual showings will create a environment for unvetted & unaccompanied individuals/groups potentially leading to theft and damage. Like my local Target down the street.

[KAZHE]

I’m a VA buyer- this will be a mess! The 6% split commission is already always been baked in the listing price- so are sellers going to drop prices by 3% for buyer’s agent?

[danielbaird]

You seem like a knowledgeable agent and I’m looking for a home in South Carolina. But nothing in your bio says what city you specialize in.

[SC-peir]

You said this so well. I'm a real estate broker in the Bay Area CA and so many agents here are freaking out.

[barbeerealty]

My biggest issue is there will be less buyers I can work with because they are now going to be required to sign a buyer's brokerage agreement and I wont be able to work with them now no matter how good I am. Also, say I have a buyer's agreement signed for 2.5%. If the seller/and or listing agent has initially agreed to pay a buyer's agent 3%, will we be able to get the 3% or when this new law goes into effect, will we only be able to get the 2.5% in the buyer's agreement? Also, will listing agents only work with buyers for their listings if the buyer signs a buyers agreement to pay them a separate commission? Will this be ethical if they turned down a buyer to buy their listing if the buyer doesn't agree to pay them?

[victorpistone]

They can change the rules, but they cant change the game. Realtors will adapt.

[TucsonArizona]

Really good breakdown! Thanks for your level headed approach to this. There will be more opportunity for the best agents that handle this professionally.

[Rexarrow]

Buyers agents can demand more commission now. They don’t have to accept what listing agent offers

[cobrabtc]

Finally. I’m selling my house within the next few months. I’m not paying the buyer’s agent anything. They don’t work for me or my best interests! Let the buyers pay their own agents.

[pl]

No worries, CarMax is hiring....same skill set. The chickens have come home to roost.