All the realtors here pedantically lectured us that commision fees were ALWAYS negotiable, even through they really weren't since the system was set up to bias against anyone not paying the standard 6%.

As of Saturday, we can pay our agent whatever we like, the other party can compensate their own agent, and it can be whatever the heck we want it to be and not be shunned or biased in the MLS for doing so.

https://www.cnn.com/2024/08/14/business/realtor-commissions-nar-nightcap/index.html

Quote:

---

Starting this Saturday, the days of the standard 6% commission two to three times what agents make in other developed economies are effectively over.

Sellers, who historically have paid both the listing agent and the buyer's Realtor, will be on the hook for their agent's fee. Buyers and their agents will negotiate a compensation plan upfront.

---

Of course, this doesn't change anything at all, as we were lectured, which is why thousands of realtors are fleeing the industry. Now realtors can be compensated for that which they bring to the table, which admittedly is usually just trying to get both sides to pay as high and amount as possible in order to maximize commissions.

Let freedom reign!

Quote:

---

which is why thousands of realtors are fleeing the industry.

---

RIP Facebook

Listen closely at your screen and you'll hear the sound of thousands of C class being turned in and shipped to eastern Europe.

Quote:

---

All the realtors here pedantically lectured us that commission fees were ALWAYS negotiable, even through they really weren't since the system was set up to bias against anyone not paying the standard 6%.

---

You couldn't be farther from the truth.

First, commissions have always been negotiable, at least they are where we live.
Commissions haven't been at 6% for a very long time, at least where we live.
While I don't disagree that changes needed to be made, any prospective 'looker' will have to sign a contract up front with a licensed realtor just to walk in a place.

The law went to the other extreme.

Quote:

---

Now realtors can be compensated for that which they bring to the table, which admittedly is usually just trying to get both sides to pay as high and amount as possible in order to maximize commissions.

---

Is this part really true though?

6% of $300K is $18K.
6% of $325K is $19.5K.

Significant difference for the buyer/seller, but not so much for the agent. If I was an agent I'd be fine w/ the lower sales price b/c it likely means a larger buyer pool and a quicker sale/quicker commission check. Move on to the next one.

my house up north is for sale. Does that affect homes currently on the market? we did sign a form about the 6% so I'm probably sol but thought I would ask

Even before this, why would any seller agree to 6%????

Hill08 said:

---

Even before this, why would any seller agree to 6%????

---

I think this covered 3% each for buyer and seller agent, not 6% for each, but I haven't bought in 8 years and have never sold.

fc2112 said:

---

Now realtors can be compensated for that which they bring to the table, which admittedly is usually just trying to get both sides to pay as high and amount as possible in order to maximize commissions.

---

The current system actually has the representatives' compensation at odds with the parties they represent. A seller's agent is incentivized to find the lowest price their client is willing to accept while a buyer's agent is incentivized to find the highest price their client is willing to pay in order to increase the likelihood of a transaction.

Next thing to be dealt with needs to be outlawing "Bonus to Selling Agent" (BTSA).

In what world is ethical for the seller to be able to bribe the buyers agent?

Talk about a donkey show. Take a look at that little gem.

NoahAg said:

---

Quote:

---

Now realtors can be compensated for that which they bring to the table, which admittedly is usually just trying to get both sides to pay as high and amount as possible in order to maximize commissions.

---

Is this part really true though?

6% of $300K is $18K.
6% of $325K is $19.5K.

Significant difference for the buyer/seller, but not so much for the agent. If I was an agent I'd be fine w/ the lower sales price b/c it likely means a larger buyer pool and a quicker sale/quicker commission check. Move on to the next one.

---

Freakanomics had a great chapter on this. Realtors consistently held on to their own property longer to get top dollar while negotiating down with their seller so they could earn a commission and move on to the next deal

About to be a flood of new momtographers, substitute teachers and remote marketing professionals.

Guess we were idiots. When we sold the ranch in Texas I paid our realtor 6% to do so. Our buyer paid 0%. I thought that's the way it's always been unless it was a billion dollar place or so?

Gunny456 said:

---

Guess we were idiots. When we sold the ranch in Texas I paid our realtor 6% to do so. Our buyer paid 0%. I thought that's the way it's always been unless it was a billion dollar place or so?

---

This is not directed at you, but there is so much idiocy on this thread.

The new rules will help no one. It will only mean that buyers have to come up with more money at closing in order to compensate their agent (who serves a legitimate purpose and will continue to be compensated).

More money due at closing means that your pool of buyers is smaller.

Or, you can choose to compensate some or all of the buyer's agent commission which makes the home more affordable for relatively cash-poor buyers, but then guess what? Appraising it becomes a problem. Apples to apples comps have now become harder if not impossible now that commissions have been sent haywire.

No one knows how this will shake out. A bunch of theoretical part-time economists who read Freakonomics 20 years ago do not understand the practical consequences of scrambling the system without a coherent plan to reform it.

Reform is fine. There will be a new equilibrium reached in the industry. But this was not the way.

The way this is handled in other services transactions is through rebates. I'd expect to see more deals where the buyer makes an offer that includes a rebate from the seller at closing to cover their realtor fees. You get to the same place as today through a different mechanism.

I wil be interested in the down stream affect on this. The commission has always been baked in the sales price I understand that the thought of the buyers getting a "free" service seems unfair but they are paying more for the house to cover the fees. Mentioned above but are comps going to have to be adjusted based on the commissions. This house sold for 500k with 6% but the neighbors was 495k with 5.5%

ToddyHill said:

---

Quote:

---

All the realtors here pedantically lectured us that commission fees were ALWAYS negotiable, even through they really weren't since the system was set up to bias against anyone not paying the standard 6%.

---

You couldn't be farther from the truth.

First, commissions have always been negotiable, at least they are where we live.
Commissions haven't been at 6% for a very long time, at least where we live.
While I don't disagree that changes needed to be made, any prospective 'looker' will have to sign a contract up front with a licensed realtor just to walk in a place.

The law went to the other extreme.

---

Nonsense. Absolute nonsense. It's been 6% long before you were born. Huge scam that 6%.

There'll be no contract signing. The change is huge and, ahem, used car salesmen real estate agents are significantly going to have to up their game. The free ride is over, and it's a long time coming.

And, it's "further".

Milwaukees Best Light said:

---

About to be a flood of new momtographers, substitute teachers and remote marketing professionals.

---

One of my favorite pass times is looking up the realtors on billboards and seeing how far removed from reality their ad pictures are.

gabehcoud said:

---

Quote:

---

which is why thousands of realtors are fleeing the industry.

---

RIP Facebook

---

Unrealtors?

JamesPShelley said:

---

ToddyHill said:

---

Quote:

---

All the realtors here pedantically lectured us that commission fees were ALWAYS negotiable, even through they really weren't since the system was set up to bias against anyone not paying the standard 6%.

---

You couldn't be farther from the truth.

First, commissions have always been negotiable, at least they are where we live.
Commissions haven't been at 6% for a very long time, at least where we live.
While I don't disagree that changes needed to be made, any prospective 'looker' will have to sign a contract up front with a licensed realtor just to walk in a place.

The law went to the other extreme.

---

Nonsense. Absolute nonsense. It's been 6% long before you were born. Huge scam that 6%.

There'll be no contract signing. The change is huge and, ahem, used car salesmen real estate agents are significantly going to have to up their game. The free ride is over, and it's a long time coming.

And, it's "further".

---

Thanks for your unbiased opinion on realtors and real estate transactions.

gabehcoud said:

---

Quote:

---

which is why thousands of realtors are fleeing the industry.

---

RIP Facebook

---

RIP Glamour Shots

IIIHorn said:

---

gabehcoud said:

---

Quote:

---

which is why thousands of realtors are fleeing the industry.

---

RIP Facebook

---

Unrealtors?

---

The New Reality

Question, we are looking to move my mother to a home near us. As lookers, what is best practice at open houses and can we approach a selling agent without a realtor contract?

I have a realtor I would use if forced to but we do not have a contract with her.

I haven't done the realtor thing in 20 yrs.

Milwaukees Best Light said:

---

About to be a flood of new momtographers, substitute teachers and remote marketing professionals.

---

We DESPERATELY need more subs.

The contract, I believe, is exclusive for that house you are seeing. I've already signed a couple of those looking around lately.

Or I have 2 agents under contract and neither is calling me. Haha

Get a solid Title Company and Mortgage guy and you don't even need agents.

Current home we live in we bought straight from the owner; all paper work was done at the Title company. Knowing that 30K was on the table; we used that savings to negotiate paying less on the house. We paid less; seller made more; no annoying agents pretending to care about offers or counters or other crap paperwork I swear they create just to make you feel like they are actually doing something besides chauffeuring you around.

OriolePete said:

---

The contract, I believe, is exclusive for that house you are seeing. I've already signed a couple of those looking around lately.

Or I have 2 agents under contract and neither is calling me. Haha

---

Eileen Dover is going to be looking a lot this weekend.

Quote:

---

Starting this Saturday, the days of the standard 6% commission two to three times what agents make in other developed economies are effectively over.

---

We shun what other economies do because capitalism / America / freedom / etc, so why would we frown at this?

This is a weird move.

swc93 said:

---

Get a solid Title Company and Mortgage guy and you don't even need agents.

Current home we live in we bought straight from the owner; all paper work was done at the Title company. Knowing that 30K was on the table; we used that savings to negotiate paying less on the house. We paid less; seller made more; no annoying agents pretending to care about offers or counters or other crap paperwork I swear they create just to make you feel like they are actually doing something besides chauffeuring you around.

---

Yes, when thousands of dollars are saved, it's worth a little research.

If you don't feel comfortable, hire an attorney. Paying an attorney for a few hours is still way cheaper than a realtor when you get into an adult house.

It's the same 6%. Now it's just going to be paid 3% by sellers and 3% by buyers. In the past it evened out if you were selling and buying the same number of times.

swc93 said:

---

Get a solid Title Company and Mortgage guy and you don't even need agents.

Current home we live in we bought straight from the owner; all paper work was done at the Title company. Knowing that 30K was on the table; we used that savings to negotiate paying less on the house. We paid less; seller made more; no annoying agents pretending to care about offers or counters or other crap paperwork I swear they create just to make you feel like they are actually doing something besides chauffeuring you around.

---

This is my plan for when we sell.

I said it on another thread. When I took Dr Lard's Realty class at A&M (early 80s) he taught that the agent represents the one who pays him. If the seller is paying the commission, the buyer's agent really represents the seller. Forty years ago, so that may not have been true more recently.

taxpreparer said:

---

I said it on another thread. When I took Dr Lard's Realty class at A&M (early 80s) he taught that the agent represents the one who pays him. If the seller is paying the commission, the buyer's agent really represents the seller. Forty years ago, so that may not have been true more recently.

---

Have you read the standard TREC contract?

Clearly not.

BSD said:

---

swc93 said:

---

Get a solid Title Company and Mortgage guy and you don't even need agents.

Current home we live in we bought straight from the owner; all paper work was done at the Title company. Knowing that 30K was on the table; we used that savings to negotiate paying less on the house. We paid less; seller made more; no annoying agents pretending to care about offers or counters or other crap paperwork I swear they create just to make you feel like they are actually doing something besides chauffeuring you around.

---

This is my plan for when we sell.

---

So you plan to sell without an agent? Nothing on MLS? No Realtor handling showings, lockbox, etc?

What incentive does an agent have to bring you a buyer? If you aren't willing to pay a commission to the agent bring the buyer, do you think his buyer is going to pony up?

LOL