NAR LAWSUIT-WHAT IS FACT AND WHAT IS NOT FOR YOU THE CONSUMER!
Most important thing you need to know as a consumer:
As a realtor, there are NO standard commission fees and everything is negotiable with our clients. Its up to us as agents to communicate our services and our value we are offering to our clients. Important conversations and communication need to happen proactively BEFORE working together. A couple of years ago, I had a listing appointment and the seller had a girlfriend join us. She was not from Texas. She was not familiar with how we do things here or why. When I went through my fees and explained that I am offering 3% to a buyer’s agent she was not happy about “paying the buyers fees”. I said I would not waste their time or mine. I helped them find a discount agent and informed them what I would do. Friends, they called me back the next year an apologized. The house did not sell and their expectations were not met. I have market strategies that work and negotiation skills and experience that have value. Buyer’s representation came about to offer a fair representation to the buyer and get more attention to the listings for the sellers. Buyer’s interest rates, closing cost and down payment are already high and buyers need an agent. Representation is not going to be for free folks. I know it is going to be crazy for a little while but buyers are going to start becoming very creative on how these fees are going to be paid from the proceeds of the sell of the house through the contract. ABOR has done a fantastic job informing us and I just went to a conference this week to get the update. Nothing is going to really change and a lot is going to change.
Here’s what has been agreed to -
Compensation for buyers will no longer be posted on MLS. IT STARTS IN JULY 2024.
Buyer’s agents will be required to have a buyer rep agreement. This is a good thing! I have done a buyer’s presentation sit down with my buyers for years because it’s important conversations and communications that need to be had. Commissions and how I get paid is one of them. I review my representation agreement and get it signed by first meeting. NAR implemented a mandatory policy this year. Nothing is really changing for my flow of business as a full service agent. I am sure this will be major for agents that are not doing there job, but as I said many people thought being a realtor is big easy money. Well it has been a great career and I feel very blessed. I love what I do and all my client relationships, but no, not easy and it is a lot of work, training and liability.
The settlement also goes though the list of brokerages that are off the hook and which ones are not by the average sales per year amount.
Now what this DOES NOT mean and the misconceptions:
1.“Buyers should pay their own agent commissions not the sellers”. This is not a factual statement. The commissions are coming from the proceeds of the sell of the house not directly from the seller. The seller is agreeing to pay the listing agent and the listing agent is agreeing to pay the buyers agent, why? Because it is in the best interest for the seller to do it this way. Less mistakes, more fair negotiations for both parties. That’s why things changed in the 90’s. Here in Texas it was better to have buyer’s agents and that’s how the buyer’s agent evolved adn it has been very good for our industry and the consumer.
2. “Buyers wont be able to be paid by sellers” - Thats not true. In fact I suspect that buyers will become very creative on the contract to include compensation for the buyers agent if it is not offered. Buyer’s agent will not work for free.
3. “Realtors agree to axe the 6% commission” has been the headline on several news outlets. Not true. There is good reason why as a listing agent I charge 6% and I agree to give half of my commission to the buyer’s agent and I will continue to do so, but I have charged more then 6% and I have charged less depending on the situation.
