What The NAR Settlement Means for Real Estate Agents

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Ricky Carruth brings the fire of his 21 years of real estate industry experience to the table everywhere he goes. He eats, sleeps and breaths real estate. Some of his achievements includes a three-time #1 RE/MAX agent, the top agent in his county for eight straight years and two-time author. In 2016, he became the first completely free real estate coach in the industry helping reduce the failure rate one agent at a time. He has had one of the loudest voices on the internet when it comes to the strength of the housing market since the pandemic. His presentations are energetic and full of the most recent housing data. You aren't going to want to miss his next event or video. And, as Ricky says, "Let's GOOOOO!"

[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.

[KarenLavia]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[JebSmith]

Agree with your cream will rise to the top as it always does 💯

[BabyFunTime]

2 things in my mind: 1. Won't be more listings on the market since sellers will pay less money to sell?? and won't that drive home prices down?? 2. whoever wants to sell, needs to buy, so sellers will end up paying the 6% or whatever is agreed on, seller will end up paying their % but on 2 phases

[arthurcox]

Love it Ricky!!! Right on brother!! 🔥🔥🔥 great info!!!

[SarasotaHomesGrp]

I completely agree with you Ricky. The full time pros are going to come out ahead.

[VioletGrae-to]

For us transaction agents/Realtors, change is NOT happening when we "get both sides" -- we represent both Buyers and Sellers of this transaction.

[HeatwaveHD]

Many buyer reps are going to quickly realize that the only way they can be assured of a paycheck is to focus primarily on getting listings. As more and more agents pile into the “listing” game, you can be assured listing agent commissions will plummet. With 1, 000, 000 real estate agents looking for a paycheck, the competition for listings will be fierce. The days of 2.0-2.5% listing commissions will quickly drop to 1% or even fixed fee listings deals.

I see lawyers offering deals of “5 offers for $500” for actual buyers and then handling the closing costs for the buyers in a separate deal. Disruption is about to be enormous in the real estate transaction game.

[TheBoilingWater]

To me the future should be Seller’s agent conduct OPEN HOUSE (right now it’s buyer’s agent); and buyers can contact seller’s agent directly (don’t have to go through a buyer’s agent) to setup a viewing appointment. Once buyer wants to buy the house, they can go to a service to help them going through the paperwork.

[Daretoshi]

Agents in general have been living pretty fat on the 6% percentage for decades!! lol welcome to the club, long-term mortgage broker. Here we used to be able to set our fees and now we are minimized to a small fixed percentage no matter what the deal is., hard or small. Databases and websites do most of the shopping work and half of the viewing work these days. The law does not say they can’t pay a buyers agent. It’s just that they don’t have to. So good luck guys.

[tangodown]

Now we can charge buyers before closing for our services by the hour. Like lawyers. You pay them ahead of time for their services doesn't matter if they win for you or not. Start having a set price for contract work, emails, phone calls etc.

[Tobias-Carlos]

In theory, buyers always paid payed the commission., Yes, the sellers gave us the money, but that money was given to the sellers by the buyers purchase. Ultimately, this will only be more transparent to the buyers by them, knowing that they are paying the commission. In my career there were times that I represented both the buyer and the seller in Colorado. It was called transaction Broker. And both buyers and sellers did not have a problem paying the commission because they knew they were being well represented. I can see this being pushed by Real Estate online companies, I would hope that these online companies were held more accountable for buyer/sellers if things go south on their deals.

[joelballard]

It’s all very interesting. I almost never use a agent when selling one of my properties, but I do occasionally use a agent when buying. I have always thought that the buyers agent should never receive compensation of any kind from the seller. I think it’s a conflict of interest for the buyers agent to get any money from the competitor selling the property. I would be all for paying a buyers agent out of pocket to negotiate down prices and get me the cheapest best deal. I think the lawsuit should have made it where the commissions can never be based on the sales price, but on the services provided by the seller agent, or buyer agent. who knows where it ends.

[MonteMitchell]

I’ve been buying houses going straight to the agent for years. I own 17 homes & I hire an attorney to look over the contract. Done deal!!!

[gilborealty]

Thank you for a reasonable view. Too many videos online spewing disinfo due to lack of knowledge. It helps to have experience selling and we are already going through every buying scenario we can think of in our office so our agents know how to handle it.

[daltonlake]

I bought a house and didn't use an agent and I can speak from experience that a buyers agent is best! It's not an easy prosses on your own. If you don't fully understand the prosses you can end up in legal trouble

[LianeJamason]

I love the idea of charging to write a contract and give them a non-representation agreement. Even writing the contract, we still have liability and need to be paid as such.

[christianhcevallos]

Bro prices are coming down for the reason you just explained. Less representation, will create less demand, which will lower prices drastically.

[modernmillennial]

lol imagine an agent telling their seller "hey i had someone who wanted to buy your house but they walked because I was going to charge them 3k to draw the contract you're paying me for already anyway" #fired

[nathanbenich]

Hey Ricky - I 100% concur with you and what you're saying. I'd also like to add potential unintended consequences. Buyers will now have an opportunity to go directly to the Listing Agent to write the offer on their behalf. This will create a Duel Representation and "Double-Ending" the deal. This is illegal in 8 states. What then? Is a Realtor willing to represent a Buyer for 0% commission? I think this is going to spark a chain reaction in law suites from the unintended consequences of the current settlement at hand. Nobody is perfect, including lawyers and courts and I feel they all got this one wrong.