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House hunters will be required to sign an agreement before touring homes.
The concern was that buyers were steered to homes that landed their agent a bigger fee.
The new rules means home buyers and their brokers must sit down together to agree on money before they start looking at homes. They will take effect on August 17.
Home sellers in Missouri sued the NAR in a landmark case which paved the way for multiple copycat lawsuits.
The case centered around a common practice whereby seller's agents list the commission their client is willing to pay on an Multiple Listing Servicee (MLS).
In theory, the old system allowed agents to 'steer' buyers to homes on which the commission is higher so they can profit more from a sale.
Buyers' agents would be more likely to show a property if they knew the seller was paying higher commission.
On its website, the trade body says agents are required to 'work with buyers' to secure a signed agreement before 'touring a home.' I hope that is an agreement on compensation and not a long term agreement.
Location: Sarasota/ Bradenton - University Pkwy area
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Quote:
Originally Posted by Brandon Hoffman
It was a free market. It's now being dictated how commissions are paid. It was transparent and was in writing what a seller would offer. Now that is being removed creating less transparency. How does that create a free market?
What it does is create confusion and most likely lawsuits by buyers & sellers over the new rules. Win-win for law firms.
2 questions:
1-Are you now expecting listing agents to do more work for less pay?
2-W/O a buyer agent assisting the buyer, what do you think that percentage increases to? 50 or 60% maybe?
1~Not expecting more work, list the house online as usual.
2~I'm sure a Buyers agent is willing to represent at 2% vs. 3% when the inventory is low and the home offers much more than others in the area.
1~Not expecting more work, list the house online as usual.
2~I'm sure a Buyers agent is willing to represent at 2% vs. 3% when the inventory is low and the home offers much more than others in the area.
We would like to sell, don't need to sell.
You didn't answer the questions.
1-Who shows the homes, qualifies the buyer, writes the offer, sits through the inspection, gets the paperwork to the lender and attorney,etc? Would you like to try again or sit pat on dodging a direct answer?
2-You're talking specifically about your home. If you don't see the value in the agent you planned to hire, then get someone else. But don't forget, commission is about to be removed from MLS. In a broad market sense, how do you think this helps consumers?
House hunters will be required to sign an agreement before touring homes....n its website, the trade body says agents are required to 'work with buyers' to secure a signed agreement before 'touring a home.' I hope that is an agreement on compensation and not a long term agreement.
18 states already required agency contracts prior to engaging in client related services before the lawsuit was brought. They are designed to protect the client from unethical agents.
Do you guys really believe everything the media says? Sellers were never forced to pay any commission to anyone, including buyer agents and listing agents. The lawsuit doesn't prevent sellers from paying a buyer agent. The settlement requires MLS to not advertise a co-broke, but it can still be paid. It damages sellers and buyers. If you think this benefits anyone other than the attorney that just got paid $250,000,000 you're fooling yourselves. Go ahead and keep eating what the media is feeding you. The only good I can see from it is it will eliminate some agents and force buyer agents to sign a buyer agency contract that will protect the consumer from unethical agents and force them to be an actual fiduciary. That should have always been the case, and already was in 18 states.
House hunters will be required to sign an agreement before touring homes.
On its website, the trade body says agents are required to 'work with buyers' to secure a signed agreement before 'touring a home.' I hope that is an agreement on compensation and not a long term agreement.
It will be a compensation agreement and likely a 6-month exclusive representation agreement. Agents will want to lock those buyers in as clients. It will be up to consumers to make sure they can terminate or sign shorter agreements.
When we started talking to our realtor about listing our home, we came upon the subject of commission, we asked if she would accept 5%, and she told us she charges 6% and basically refused to accept less explaining all the hard work. We are in a hot market, advertise, it will sell......what is all the "Hard work" that can justify 30-40k ?. She has been pushing a bit to get it listed, maybe because of some new law that takes effect July 1 ?. We are now willing to give 4%, when the time comes, she can walk if she'd like, too many options for sellers in a hot market.
If you have a nice home it will sell itself, especially in a hot market.
Nice homes always sell themselves not agents.
If you have a nice home it will sell itself, especially in a hot market.
Nice homes always sell themselves not agents.
It's true. Agents don't sell homes. They manage transactions. If the home is overpriced it probably won't sell no matter how good the agent is. If the home is priced really low, it will sell no matter how bad the agent is. People hire agents to help them navigate the process. It's a service industry.
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