The new real estate model post NAR settlement agreement

▶ ▶ ▶ WANT ME AS YOUR COACH ?

▶ REAL ESTATE LEAD GENERATION

▶ FOLLOW BRANDON

▶ KEEP 100% OF YOUR COMMISSION

▶ ABOUT BRANDON MULRENIN
Brandon is a real estate broker in Michigan and is the CEO of Brookstone Realtors. Real estate coaching is Brandon’s passion. He teaches real estate agents at his company and around the country how to get listings using his reverse selling lead generation system. His mission is to teach real estate agents how to sell without being salesy, he calls it reverse selling.

▶ MY GEAR

Note this description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. While this channel may earn minimal sums when the viewer uses the links, the viewer is in NO WAY obligated to use these links. Thank you for your support.

[garrydye]

Funny story. I just listed my house today. Sellers agent tried to present all this stuff you just stated. I asked him these questions and here was his response. Do you take the pictures of the property? No, we have somoene come in to do that. Do you do the title work? No, the title company does that. Who will be writing up the contract...you or an attorney? An attorney. Will you be listing it on the internet? Yes. So basically you don't take the pictures, you don't do the title work, you don't write the contract, you don't even sell the property...the internet does that. How much do you want in commission again?

[dukebeach]

I’ve watched probably 10 videos on the changes due to NAR settlement and this is the only one that clearly and concisely explains the possible environment.
Thank you.

[coltynmindysimmons]

I don’t like your pitch to Sellers. It sounds like you’re reassuring them. They don’t have to pay a buyer commission.
I think listing agents now more than ever need to be an advocate for their industry unlike NAR and weak listing agents
And listing agents need to explain that offering a Buyer Agent compensation is the best possible marketing tool a seller can use to bring as many buyers as possible which then gives them the best chance of getting top dollar this is how 93% of all homes are sold, and is by far the strongest marketing tool you can use to get a ready willing buyer that’s Buyer Agent compensation!

[jeffzicker]

I went on a listing pitch Tuesday where the seller doesn’t want to list until July, thus they’ll be in the very early weeks of this new model. I explained the options they had between listing at 3% on my side, and then knowing a buyers representative may request 2, 2.5, 3% etc making their total costs between 5-6%, or listing at 5% and I automatically cooperate half to an outside broker. The sellers still opted to want to list at 5% as they felt it created a fixed cost, and gave them the best potential for attracting a buyer with representation vs. a variable unknown cost. Give your sellers the options, thoroughly explain the pro’s and con’s of each commission structure, and let them decide.

[Alaine.Rochon]

After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!

[Starfish]

You are forgetting the big problem. Buyer agents are not going to be showing homes unless they absolutely know upfront that there is seller compensation, because most buyers cannot pay their own agent. How is that going to happen? Are they going to have to be a gazillion places that a buyer agent has to look to see if their seller compensation? And then how are they going to tell their buyer “I won’t show you this home because I can’t get paid “how is that going to go? The whole thing is so screwed up.

[robertdarcey]

Just came across your video - you make some excellent points. I believe you are glossing over major themes. 1. The public at large was uneducated on the real estate process as a whole (this is just how its done) - now disclosure of compensation is negotiable & not a requirement. 2. Economics/competition will put pressure on sell side commissions (mandatory in place sell side agreements will allow property owners to opt out buy side compensation) this is the whole basis of the lawsuit making it illogical to assume prior buy side compensation will go back. 3. It will be much harder to conduct business from the buy side with buyer compensation field being eliminated from MLS. (a purging of brokers can be expected) & that side has never paid a commission & will resist. 4. Getting buyside clients to sign the required agreement that has to explicitly outline compensation - no open-ended wording is allowed (your pre-show agreement will not be compliant) is going to be extremely challenging to brokers, especially new ones. 5. Buyers will seek homes from listing agents/agencies direct - paying (2) fees for (1) transaction will be a thing of the past in time. 6. Listing agents will be unwilling/can't compensate the buy side because it commission compression as you articulated.

[PaulKatrina.]

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[rickstone]

Excuse me, all this nonsense that changing the commissions will make homes more affordable. This is complete and utter nonsense. A home is worth what the market conditions are and a buyer will agree to pay for it. If anyone believes a Seller will not want to get as much for their home as they can, you are as mistaken as the attorney who brought this case. The ONLY person who may save money is the Seller as they may pay less in commission but the buyer, will NOT see any price reduction in the home because the seller prices the home to get as much as they can.

[michaelgranados]

In Washington State we saw this coming when the lawsuits started and given that our MLS is not owned by NAR we have already started doing some of these things you are talking about...not much has drastically changed the course of business sellers that are not offering compensation to buyers stay on the market longer then ultimately pay the buyers broker compensation. It comes down to communication, transparency, and as you said setting expectations!

[janchester]

Why are you using 5%? You need to use 6% because that is what is normal. That's the whole point. High commissions were the problem.

[jerrybuffington]

An important point that this lawsuit/ settlement reminds us of is that contracts are literally just the starting point for anyone that wants to litigate. Why are listing agents going to want to take on the extra risk of dual agency or even acting just as a "transaction coordinator" for a buyer when it just seems too easy to sue anyone for anything no matter what's in writing. Maybe we will see an unrepresented buyer class action lawsuit in a couple years.

[MBRMBR-nojg]

I will not allow my agents to take a listing unless the Seller offers a buyers side commission.

[JeepdudeFL]

Great vid, BUT everyone has lost sight of the fact that the whole purpose of the MLS listing is to advertise to the 10K+ Agents in your city that you are offering an "incentive" (the Commission) if you bring a successful buyer! There's a reason New Home Builders pay Agents to bring clients! The new rules are going to create countless variations on the compensation model and confuse the consumer. Most of the negotiations will be focused on who pays the buyers agent vs. the actual price of the home.

[augustoliver]

We chose to pay the buyer’s agent because we didn’t want agents to not show our house to their clients. I don’t know why this is an issue. It’s not like agents are thriving financially anyways. 90% of them fail within 5 years and you need money to live in America so it’s quite sad to see this non issue become an issue to favor Wall Street investment firms.

[kerrybyers]

So the avg “sale price” creeps up, reassessments go up accordingly, property taxes go up, insurance goes up…. supporting the “percentage” take, regardless how it’s structured, leads to artificial housing inflation….IMO. Sellers and Buyers should insist on FLAT fees for services rendered, regulated at the State level, and not included in recorded sale price.

[nosaoyemade]

Has it occurred to anyone that the buyer technically pays the commission? If a property is listed for 500k with a 6% commission, a buyer who offers full price or more had added 30k or more to the actual value of that property which is actually worth 470k. Think about it sellers, when you say you will not pay for the buyer’s agent’s commission.

[bethw]

the whole industry should be flat-fee or hourly rate. I've got 2 places for sale right now - one is twice the price of the other. the paperwork is the same. but commissions will be double for the higher priced property. that just pisses me off. Lawyers are hourly - hire a lawyer to do the paperwork and save

[FLHometownAgent]

The sellers were never obligated, comm was always negotiable. Ive always advised the seller what i get paid & ask what they would like to offer a BA.

[atlhomeguide]

Whole thing is a joke. If your a seller and don’t want to pay a buyer commission that’s fine. Just don’t expect your house to sell anytime soon. Or better yet you could go do FSBO and procure your own buyer.

New construction builders offer buyer agent commission all the time but you have resale home owners that don’t want to.

I get it, you’re going to save 3% but your home will take 100+ days to HOPEFULLY bring a buyer. By then your home value will tank by more than 3%.

Not to mention you’re going to end up paying 3% on your next transaction when it’s time for you to buy so you’re not saving anything. In fact, you’re waisting your time. You’re better off selling your home to open door for half of what’s it’s worth.