Logos Stick said:

---

johnnyblaze36 said:

---

The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

---

So if they are not fixed, then why the anxiety by the agents over this?

---

The last thing they want is for sellers and buyers to start questioning the status quo commission structure and negotiate commissions instead.

StandUpforAmerica said:

---

aggiez03 said:

---

When houses cost $80-$150K, then 6% commissions made sense.

When houses cost $500k+, $30K is ridiculous for a single listing, I don't care how many times it is split.

If the average realtor makes 2%, that is $10,000. If they sell one house a month, they are making a good living.

My BIL in Katy sold his house in 1 day and had 3-4 offers. What did the realtor actually do?

Especially in new construction, the realtor drives the client around to look at 3 neighborhoods to visit showcase homes and then collect 3% commission for a single day of driving and 30 mins at closing.

I told my realtor friend about 6-7 years ago that with everything going online, that the days of 6% commissions are going away. Not soon after you had OpenDoor and places like that start setting up shop and doing it for half the price.

They should have adjusted down when their jobs got easier and the prices went up, but they were content staying at 6% and let competitors come in.

---

Not always true. My neighbor used one of OpenDoor competitors when they sold their house, and they were charged 7% for the convenience. Now did they make a bad choice using them... that's debatable.

---

I was just meaning that realtors were used to NO competition besides Other Realtors. Now there is online competition. I am not debating the merits, I just know there are way more options. Had a friend that worked at one of them. If you sold to them, they let you close and then move out, but I think it did end up costing a bit more than a realtor, but had other benefits. No showings, move out after closing, etc.

One on the radio gives you an offer, you sell to them, they then sell your house, and if it sells above X, then you get another payment from them as well. Pretty smart. Have no idea on the fees.

If you are a seller, you do not have to offer what is known as Cooperative Compensation (3%) to a Buyers Agent.


Three fundamental choices for sellers:
[ol]

Authorize it.

Don't authorize it, but be willing to consider it.

Don't authorize it, and don't consider it.

[/ol]
1. Authorize to offer it.

I want to generate the widest pool of buyers that bring me the best price and terms with the least amount of hassle. I accept the potential risk that I could be offering more compensation than the buyer has agreed to pay the buyer's agent because I want to attract the largest pool of buyers. It's estimated as much as 40% of the market would be challenged to pay the buyer's agent out of pocket. Many first-time buyers and move-up buyers would be challenged. And anyone using a VA loan would be currently denied that option.

--

2. Don't authorize it, but be willing to consider it in an offer.

I am willing to keep my options open to paying it (cooperative compensation) or not. I accept the potential risk of exposing my property to a smaller pool of buyers because some buyers who need it (cooperative compensation) may not ask if it's available and assume it's not. Additionally, I accept the potential risks, if a buyer doesn't have representation, of encountering more hassles and more delays.

--

3. Don't authorize it, and don't consider it.

I am unwilling to pay it. I accept the potential risk of exposing my property to a smaller pool of buyers because a buyer who needs it (cooperative compensation) may not make an offer. Additionally, I accept the potential risks, if a buyer doesn't have representation, of having more hassles for some interested buyers and more delays.

93MarineHorn said:

---

Logos Stick said:

---

johnnyblaze36 said:

---

The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

---

So if they are not fixed, then why the anxiety by the agents over this?

---

The last thing they want is for sellers and buyers to start questioning the status quo commission structure and negotiate commissions instead.

---

Yup. Its clear that panic is setting in.

That case in Missouri literally found that they were conspiring to keep commissions high.

As always, low level realtors (there are some truly great ones), are the effing worst.

Houston Lee said:

---

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

---

How do you think this one will play out? Buyer's agent won't want to show homes if the sellers won't pay a commission.

Tex117 said:

---

Houston Lee said:

---

befitter said:

---

johnnyblaze36 said:

---

befitter said:

---

Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

---

This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.

---

How is it not accurate?

---

-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

Quote:

---

For Sale By Owner (FSBO) Statistics

• FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• FSBO methods used to market home:
  
  • Friends, relatives, or neighbors: 20%
  • Yard sign: 19%
  • Third party aggregator: 14%
  • Social networking websites: n/a
  • For-sale-by-owner website: 5%
  • Open house: 7%
  • Online classified ads: 4%
  • Multiple Listing Service (MLS) Website: 5%
  • Other website with real estate listings: 1%
  • Video hosting websites: 1%
• Most difficult tasks for FSBO sellers:
  
  • Preparing/fixing up home for sale: 4%
  • Getting the right price: 15%
  • Understanding and performing paperwork: 7%
  • Selling within the planned length of time: 7%
  • Having enough time to devote to all aspects of the sale: 4%
  • Attracting potential buyers: 4%
  • Helping buyers obtain financing: 5%

---

---

Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

---

Of course change is coming and commissions have always been negotiable. The cases were based around the fact agent commissions were published on the MLS and thus allowed supposed "steering" away from properties that were offering less commission to buyers agents. Cooperative compensation is not illegal and has not been found by any court to be illegal.

StandUpforAmerica said:

---

Houston Lee said:

---

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

---

How do you think this one will play out? Buyer's agent won't want to show homes if the sellers won't pay a commission.

---

The Buyers Agents will still show homes if the Sellers wont pay a commission. It will be the responsibility of the buyer to pay their agent based on the amount specified in the Buyers Representation Agreement. The buyer could make an offer that included the amount of the Buyer Agents commission in the offer as a "Sellers Contribution". But, chances are, the buyer will elect not to buy a home from a seller unless they are offering it. It would make sense for a buyer to find a home where the seller was offering it.

Sellers that dont offer cooperative compensation are at risk of limiting the pool of buyers that can buy their home...

StandUpforAmerica said:

---

Houston Lee said:

---

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

---

How do you think this one will play out? Buyer's agent won't want to show homes if the sellers won't pay a commission.

---

I am guessing over time Buyer's agents will figure out how to get paid for other things they do or the Buyer's agent as we now know it will go away.

For example..

Pre-Qualification moves online and you will have to show a document or code to see listed houses

Buyer's agents contract with big companies consolidating locations (Exxon in the Woodlands, Tesla in Austin, etc) to represent ALL their buyers for a monthly / flat percentage fee

Buyer's agents charge a rate fee for their services. Hourly or Daily Rate

Buyer's agents are paid by homebuilders to bring people to their subdivisions

etc

Houston Lee has a good point. Some buyer's Agents will just refuse to show those homes as well.

Tex117 said:

---

93MarineHorn said:

---

Logos Stick said:

---

johnnyblaze36 said:

---

The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

---

So if they are not fixed, then why the anxiety by the agents over this?

---

The last thing they want is for sellers and buyers to start questioning the status quo commission structure and negotiate commissions instead.

---

Yup. Its clear that panic is setting in.

That case in Missouri literally found that they were conspiring to keep commissions high.

As always, low level realtors (there are some truly great ones), are the effing worst.

---

Yeah, I would expect a certain amount of "blackballing" of properties/owners that don't want to pay the normal commission rates. That would be the main reason I might reconsider FSBOing my condo down the road. I've experienced realtors making negative comments about FSBO properties when I was a buyer.

Tex117 said:

---

Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

---

Exactly.

aggiez03 said:

---

StandUpforAmerica said:

---

Houston Lee said:

---

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

---

How do you think this one will play out? Buyer's agent won't want to show homes if the sellers won't pay a commission.

---

I am guessing over time Buyer's agents will figure out how to get paid for other things they do or the Buyer's agent as we now know it will go away.

For example..

Pre-Qualification moves online and you will have to show a document or code to see listed houses

Buyer's agents contract with big companies consolidating locations (Exxon in the Woodlands, Tesla in Austin, etc) to represent ALL their buyers for a monthly / flat percentage fee

Buyer's agents charge a rate fee for their services. Hourly or Daily Rate

Buyer's agents are paid by homebuilders to bring people to their subdivisions

etc

Houston Lee has a good point. Some buyer's Agents will just refuse to show those homes as well.

---

why do I need a buyer's agent to show a home? why cant I simply contact the listing broker?

93MarineHorn said:

---

Tex117 said:

---

93MarineHorn said:

---

Logos Stick said:

---

johnnyblaze36 said:

---

The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

---

So if they are not fixed, then why the anxiety by the agents over this?

---

The last thing they want is for sellers and buyers to start questioning the status quo commission structure and negotiate commissions instead.

---

Yup. Its clear that panic is setting in.

That case in Missouri literally found that they were conspiring to keep commissions high.

As always, low level realtors (there are some truly great ones), are the effing worst.

---

Yeah, I would expect a certain amount of "blackballing" of properties/owners that don't want to pay the normal commission rates. That would be the main reason I might reconsider FSBOing my condo down the road. I've experienced realtors making negative comments about FSBO properties when I was a buyer.

---

I've had realtors comment that they don't like FSBO because they end up being the Realtor for both sides....because the owner doesn't know what he's doing in a certain % of the sales.

Houston Lee said:

---

Tex117 said:

---

Houston Lee said:

---

befitter said:

---

johnnyblaze36 said:

---

befitter said:

---

Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

---

This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.

---

How is it not accurate?

---

-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

Quote:

---

For Sale By Owner (FSBO) Statistics

• FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• FSBO methods used to market home:
  
  • Friends, relatives, or neighbors: 20%
  • Yard sign: 19%
  • Third party aggregator: 14%
  • Social networking websites: n/a
  • For-sale-by-owner website: 5%
  • Open house: 7%
  • Online classified ads: 4%
  • Multiple Listing Service (MLS) Website: 5%
  • Other website with real estate listings: 1%
  • Video hosting websites: 1%
• Most difficult tasks for FSBO sellers:
  
  • Preparing/fixing up home for sale: 4%
  • Getting the right price: 15%
  • Understanding and performing paperwork: 7%
  • Selling within the planned length of time: 7%
  • Having enough time to devote to all aspects of the sale: 4%
  • Attracting potential buyers: 4%
  • Helping buyers obtain financing: 5%

---

---

Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

---

Of course change is coming and commissions have always been negotiable. The cases were based around the fact agent commissions were published on the MLS and thus allowed supposed "steering" away from properties that were offering less commission to buyers agents. Cooperative compensation is not illegal and has not been found by any court to be illegal.

---

Why would change be coming if they've always been negotiable?

Logos Stick said:

---

aggiez03 said:

---

StandUpforAmerica said:

---

Houston Lee said:

---

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

---

How do you think this one will play out? Buyer's agent won't want to show homes if the sellers won't pay a commission.

---

I am guessing over time Buyer's agents will figure out how to get paid for other things they do or the Buyer's agent as we now know it will go away.

For example..

Pre-Qualification moves online and you will have to show a document or code to see listed houses

Buyer's agents contract with big companies consolidating locations (Exxon in the Woodlands, Tesla in Austin, etc) to represent ALL their buyers for a monthly / flat percentage fee

Buyer's agents charge a rate fee for their services. Hourly or Daily Rate

Buyer's agents are paid by homebuilders to bring people to their subdivisions

etc

Houston Lee has a good point. Some buyer's Agents will just refuse to show those homes as well.

---

why do I need a buyer's agent to show a home? why cant I simply contact the listing broker?

---

You can contact the listing agent directly... but that's always been the case.

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

This sounds like realtor propaganda. Maybe if you own property that is difficult to place a value on, but I'm pretty sure, living where I do, that I could pretty quickly come up with market value for my home and price accordingly.

It may be a little more difficult to get enough people interested in looking at my home without a realtor, but there are ways to do that as well.

Paying 6% of the sale price always felt like way more than it was worth to me.

When we sold our first home in 2004, we hired a selling agent (older woman with many years of experience in our market) and she suggested an asking price that my wife and I felt was way too low. We ended up pricing it well above (almost 15% higher) the agent's suggested ask and we got our price and it sold rather quickly too - about 4 weeks. We did quite a bit of "sprucing up & de-cluttering" to get the home ready to show from the time the agent first looked at the home until it was placed on the market, but nothing too expensive - mostly just interior painting, which I did my self for the most part.

Logos Stick said:

---

Houston Lee said:

---

Tex117 said:

---

Houston Lee said:

---

befitter said:

---

johnnyblaze36 said:

---

befitter said:

---

Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

---

This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.

---

How is it not accurate?

---

-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

Quote:

---

For Sale By Owner (FSBO) Statistics

• FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• FSBO methods used to market home:
  
  • Friends, relatives, or neighbors: 20%
  • Yard sign: 19%
  • Third party aggregator: 14%
  • Social networking websites: n/a
  • For-sale-by-owner website: 5%
  • Open house: 7%
  • Online classified ads: 4%
  • Multiple Listing Service (MLS) Website: 5%
  • Other website with real estate listings: 1%
  • Video hosting websites: 1%
• Most difficult tasks for FSBO sellers:
  
  • Preparing/fixing up home for sale: 4%
  • Getting the right price: 15%
  • Understanding and performing paperwork: 7%
  • Selling within the planned length of time: 7%
  • Having enough time to devote to all aspects of the sale: 4%
  • Attracting potential buyers: 4%
  • Helping buyers obtain financing: 5%

---

---

Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

---

Of course change is coming and commissions have always been negotiable. The cases were based around the fact agent commissions were published on the MLS and thus allowed supposed "steering" away from properties that were offering less commission to buyers agents. Cooperative compensation is not illegal and has not been found by any court to be illegal.

---

Why would change be coming if they've always been negotiable?

---

The change that is coming is what I explained above. The MLS Cant publish agent commissions and buyers cant see a property unless they sign a buyers rep agreement before seeing it.

StandUpforAmerica said:

---

93MarineHorn said:

---

Tex117 said:

---

93MarineHorn said:

---

Logos Stick said:

---

johnnyblaze36 said:

---

The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

---

So if they are not fixed, then why the anxiety by the agents over this?

---

The last thing they want is for sellers and buyers to start questioning the status quo commission structure and negotiate commissions instead.

---

Yup. Its clear that panic is setting in.

That case in Missouri literally found that they were conspiring to keep commissions high.

As always, low level realtors (there are some truly great ones), are the effing worst.

---

Yeah, I would expect a certain amount of "blackballing" of properties/owners that don't want to pay the normal commission rates. That would be the main reason I might reconsider FSBOing my condo down the road. I've experienced realtors making negative comments about FSBO properties when I was a buyer.

---

I've had realtors comment that they don't like FSBO because they end up being the Realtor for both sides....because the owner doesn't know what he's doing in a certain % of the sales.

---

I did a FSBO and there was no realtor on either side.

Not following you.

Houston Lee said:

---

Logos Stick said:

---

Houston Lee said:

---

Tex117 said:

---

Houston Lee said:

---

befitter said:

---

johnnyblaze36 said:

---

befitter said:

---

Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

---

This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.

---

How is it not accurate?

---

-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

Quote:

---

For Sale By Owner (FSBO) Statistics

• FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• FSBO methods used to market home:
  
  • Friends, relatives, or neighbors: 20%
  • Yard sign: 19%
  • Third party aggregator: 14%
  • Social networking websites: n/a
  • For-sale-by-owner website: 5%
  • Open house: 7%
  • Online classified ads: 4%
  • Multiple Listing Service (MLS) Website: 5%
  • Other website with real estate listings: 1%
  • Video hosting websites: 1%
• Most difficult tasks for FSBO sellers:
  
  • Preparing/fixing up home for sale: 4%
  • Getting the right price: 15%
  • Understanding and performing paperwork: 7%
  • Selling within the planned length of time: 7%
  • Having enough time to devote to all aspects of the sale: 4%
  • Attracting potential buyers: 4%
  • Helping buyers obtain financing: 5%

---

---

Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

---

Of course change is coming and commissions have always been negotiable. The cases were based around the fact agent commissions were published on the MLS and thus allowed supposed "steering" away from properties that were offering less commission to buyers agents. Cooperative compensation is not illegal and has not been found by any court to be illegal.

---

Why would change be coming if they've always been negotiable?

---

The change that is coming is what I explained above. The MLS Cant publish agent commissions and buyers cant see a property unless they sign a buyers rep agreement before seeing it.

---

Uh, that's not going to fly in court.

I once tried to negotiate down the buyers fees with a starter home. I was told in no uncertain terms: "You can find a new realtor then.". The agent explained that the fees were visible on the MLS, and that the clear reduction in commission would strongly incentivize buyers agents to dissuade their clients away. I asked if this would work in reverse, and was told that people are way more receptive to negative reactions than positive ones.

The only buyers agents I've ever felt were worth more than an hourly rate on the level of fast food have been sellers agents who I retained after selling.

There are so many terrible agents that basically cap out at providing a Rolodex that I'm shocked this hasn't blown up sooner.

Hungry Ojos said:

---

My house in Austin would probably sell for $1.4 mill if I listed it today. Someone please try to tell me, with a straight face, why a realtor should be entitled to $84k for filling out a fill in the blank earnest money contract.

---

Apparently you didn't read the propaganda posts earlier in the thread from the realtors. Man, this thread is like a bat signal for them. The FSBO stats are right out of some talking points brochure that goes around to realtors to try to convince people to hire them and fork over their cash.

johnnyblaze36 said:

---

The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

---

This is a tired argument. REALTORS represent a monopolistic practice where a home owner who wants to sell and use a real estate agent signs a 6% commission agreement for the right to represent the seller for a set period of time. The sellers agent then has boilerplate agreement to split that commission with any REALTOR agent that comes to represent the seller.

The issue at play is that the seller ultimately sets the commission for a buyers agent, which is not a free market practice and creates conflicts of interest between the buyers agent the buyer and the seller. You are having to negotiate with someone who is not at the table, nor representing your interests. Furthermore, buyers commission percentages are put on the MLS, allowing agents to pass or not pass on listings that do not maximize their commission even against their clients goals.

Any 'negotiation' you have been able to do in the past has been modifying this huge anchor of a commission structure and usually done privately to preserve the looks of the 3/3 commission on the MLS.

NEWS FLASH: If you are a Buyer this is what is coming:

SIDE NOTE: Just to be clear. When a showing of a property is booked, the Seller is supposed to leave the home for the showing. Sellers are not going to keep doing this for unverified "curiosity seeker" buyers that may or may not be pre-approved for a mortgage loan.

1- Buyers can't tour a property unless they first sign a Buyers Agent Representation Agreement. This agreement will detail how much the buyer or the seller will have to pay for the Buyers Agent commission.

2-Or the buyer can wait for the listing agent to host an Open House

3-If you are an unrepresented buyer a listing agent is probably not going to waste their time kicking their seller out of their home and showing you their listing in a private showing because you will come across as a curiosity seeker or a buyer that may not be pre-approved for a loan.

I sold a house in McAllen back in 1999. My agent came up with a $229K selling price based on what had recently sold in the neighborhood. I wasn't itching to sell because I hadn't found a house to buy and move, so I told her to list it at $255K. I'll be damn. A buyer came along within 5 days and met my asking price. Talking to my agent I found out the buyer agent agreed to 1.5% commission because buyer met my price. I then ask my agent if she'd accept 1.5%. She did.

Ag06Law said:

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Hungry Ojos said:

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My house in Austin would probably sell for $1.4 mill if I listed it today. Someone please try to tell me, with a straight face, why a realtor should be entitled to $84k for filling out a fill in the blank earnest money contract.

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Apparently you didn't read the propaganda posts earlier in the thread from the realtors. Man, this thread is like a bat signal for them. The FSBO stats are right out of some talking points brochure that goes around to realtors to try to convince people to hire them and fork over their cash.

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No. The stats are real. Sorry that facts get in the way of your arguments. You can look them up yourself.

https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

Logos Stick said:

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Houston Lee said:

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Logos Stick said:

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Houston Lee said:

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Tex117 said:

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Houston Lee said:

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befitter said:

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johnnyblaze36 said:

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befitter said:

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Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

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This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.

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How is it not accurate?

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-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

Quote:

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For Sale By Owner (FSBO) Statistics

• FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• FSBO methods used to market home:
  
  • Friends, relatives, or neighbors: 20%
  • Yard sign: 19%
  • Third party aggregator: 14%
  • Social networking websites: n/a
  • For-sale-by-owner website: 5%
  • Open house: 7%
  • Online classified ads: 4%
  • Multiple Listing Service (MLS) Website: 5%
  • Other website with real estate listings: 1%
  • Video hosting websites: 1%
• Most difficult tasks for FSBO sellers:
  
  • Preparing/fixing up home for sale: 4%
  • Getting the right price: 15%
  • Understanding and performing paperwork: 7%
  • Selling within the planned length of time: 7%
  • Having enough time to devote to all aspects of the sale: 4%
  • Attracting potential buyers: 4%
  • Helping buyers obtain financing: 5%

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Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

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Of course change is coming and commissions have always been negotiable. The cases were based around the fact agent commissions were published on the MLS and thus allowed supposed "steering" away from properties that were offering less commission to buyers agents. Cooperative compensation is not illegal and has not been found by any court to be illegal.

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Why would change be coming if they've always been negotiable?

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The change that is coming is what I explained above. The MLS Cant publish agent commissions and buyers cant see a property unless they sign a buyers rep agreement before seeing it.

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Uh, that's not going to fly in court.

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That is what is in the NAR settlement. A Realtor acting on behalf of a buyer can't show a home to a buyer unless they have signed a buyers rep agreement prior to the showing.

When we bought a home, we paid for our real estate agents time directly in showing a home. Was an easy transaction. I found the house, called up Jamie, he came out, showed the house to us, I paid him for his time, we parted ways, and I decided to not buy that house. We did that same process again, but then I used Jamie to put an offer on the house and we bought it.

Whats the problem with this set up? I completely understand needing supervision to walk through someone's home without them there. Why can't the free market set the going rate for 'supervised walkthrough?'

Jamie clearly knew his stuff and we gained a lot of knowledge by having him there. I was happy to pay for his time. If the market became more fractured and someone just wanted to offer 'door opening service' without any insights into the building quality - I'm sure there is a price for that.

Houston Lee said:

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Logos Stick said:

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Houston Lee said:

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Logos Stick said:

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Houston Lee said:

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Tex117 said:

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Houston Lee said:

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befitter said:

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johnnyblaze36 said:

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befitter said:

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Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

---

This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.

---

How is it not accurate?

---

-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

Quote:

---

For Sale By Owner (FSBO) Statistics

• FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• FSBO methods used to market home:
  
  • Friends, relatives, or neighbors: 20%
  • Yard sign: 19%
  • Third party aggregator: 14%
  • Social networking websites: n/a
  • For-sale-by-owner website: 5%
  • Open house: 7%
  • Online classified ads: 4%
  • Multiple Listing Service (MLS) Website: 5%
  • Other website with real estate listings: 1%
  • Video hosting websites: 1%
• Most difficult tasks for FSBO sellers:
  
  • Preparing/fixing up home for sale: 4%
  • Getting the right price: 15%
  • Understanding and performing paperwork: 7%
  • Selling within the planned length of time: 7%
  • Having enough time to devote to all aspects of the sale: 4%
  • Attracting potential buyers: 4%
  • Helping buyers obtain financing: 5%

---

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Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

---

Of course change is coming and commissions have always been negotiable. The cases were based around the fact agent commissions were published on the MLS and thus allowed supposed "steering" away from properties that were offering less commission to buyers agents. Cooperative compensation is not illegal and has not been found by any court to be illegal.

---

Why would change be coming if they've always been negotiable?

---

The change that is coming is what I explained above. The MLS Cant publish agent commissions and buyers cant see a property unless they sign a buyers rep agreement before seeing it.

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Uh, that's not going to fly in court.

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That is what is in the NAR settlement. A Realtor acting on behalf of a buyer can't show a home to a buyer unless they have signed a buyers rep agreement prior to the showing.

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You said "buyers cant see a property unless they sign a buyers agreement before seeing it". That's not the same as your second statement.

I can contact the broker and see it.

Can I short REMAX? Woof. Been on a downward trend since 2017. If Remax had sold oilfield tools out of the back office, they would have at least had some up years.

Logos Stick said:

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Houston Lee said:

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Logos Stick said:

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Houston Lee said:

---

Logos Stick said:

---

Houston Lee said:

---

Tex117 said:

---

Houston Lee said:

---

befitter said:

---

johnnyblaze36 said:

---

befitter said:

---

Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

---

This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.

---

How is it not accurate?

---

-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.

Quote:

---

For Sale By Owner (FSBO) Statistics

• FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• FSBO methods used to market home:
  
  • Friends, relatives, or neighbors: 20%
  • Yard sign: 19%
  • Third party aggregator: 14%
  • Social networking websites: n/a
  • For-sale-by-owner website: 5%
  • Open house: 7%
  • Online classified ads: 4%
  • Multiple Listing Service (MLS) Website: 5%
  • Other website with real estate listings: 1%
  • Video hosting websites: 1%
• Most difficult tasks for FSBO sellers:
  
  • Preparing/fixing up home for sale: 4%
  • Getting the right price: 15%
  • Understanding and performing paperwork: 7%
  • Selling within the planned length of time: 7%
  • Having enough time to devote to all aspects of the sale: 4%
  • Attracting potential buyers: 4%
  • Helping buyers obtain financing: 5%

---

---

Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.

---

Of course change is coming and commissions have always been negotiable. The cases were based around the fact agent commissions were published on the MLS and thus allowed supposed "steering" away from properties that were offering less commission to buyers agents. Cooperative compensation is not illegal and has not been found by any court to be illegal.

---

Why would change be coming if they've always been negotiable?

---

The change that is coming is what I explained above. The MLS Cant publish agent commissions and buyers cant see a property unless they sign a buyers rep agreement before seeing it.

---

Uh, that's not going to fly in court.

---

That is what is in the NAR settlement. A Realtor acting on behalf of a buyer can't show a home to a buyer unless they have signed a buyers rep agreement prior to the showing.

---

You said "buyers cant see a property unless they sign a buyers agreement before seeing it". That's not the same as your second statement.

I can contact the broker and see it.

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That's always been the case.

Logos Stick said:

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StandUpforAmerica said:

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93MarineHorn said:

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Tex117 said:

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93MarineHorn said:

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Logos Stick said:

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johnnyblaze36 said:

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The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

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So if they are not fixed, then why the anxiety by the agents over this?

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The last thing they want is for sellers and buyers to start questioning the status quo commission structure and negotiate commissions instead.

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Yup. Its clear that panic is setting in.

That case in Missouri literally found that they were conspiring to keep commissions high.

As always, low level realtors (there are some truly great ones), are the effing worst.

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Yeah, I would expect a certain amount of "blackballing" of properties/owners that don't want to pay the normal commission rates. That would be the main reason I might reconsider FSBOing my condo down the road. I've experienced realtors making negative comments about FSBO properties when I was a buyer.

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I've had realtors comment that they don't like FSBO because they end up being the Realtor for both sides....because the owner doesn't know what he's doing in a certain % of the sales.

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I did a FSBO and there was no realtor on either side.

Not following you.

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If the seller doesn't know anything past how to put it on a FSBO site, they'd look to the buyer's agent to answer questions and manage the closing process.

befitter said:

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Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

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This. My wife is a realtor and she has earned the hell out of her commissions. No way the vast majority have the time or wherewithall to go through the process themselves. Trying to explain to the common person the concept of a waiver of appraisal and things like that is like speaking a diff language to most people.

Representing buyer's is infinitely more difficult and painstaking than repping seller. There is no way these people would have (a) landed the homes they wanted without her, or (b) been able to navigate the process, while saving money or getting certain concessions. No way lol.

one MEEN Ag said:

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When we bought a home, we paid for our real estate agents time directly in showing a home. Was an easy transaction. I found the house, called up Jamie, he came out, showed the house to us, I paid him for his time, we parted ways, and I decided to not buy that house. We did that same process again, but then I used Jamie to put an offer on the house and we bought it.

Whats the problem with this set up? I completely understand needing supervision to walk through someone's home without them there. Why can't the free market set the going rate for 'supervised walkthrough?'

Jamie clearly knew his stuff and we gained a lot of knowledge by having him there. I was happy to pay for his time. If the market became more fractured and someone just wanted to offer 'door opening service' without any insights into the building quality - I'm sure there is a price for that.

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You can still do that. Just need to sign a Buyers Rep Agreement that states the compensation (% or Amount) you are paying prior to the agent showing you the property. The problem is that when you do a showing, the sellers are supposed to leave the home. Sellers do not want to get their home prepped and cleaned for a showing and have to leave to an hour at a time for buyers that may not be pre-approved for a loan or represented by an agent. A good listing agent is going to pre-screen the buyers agents that book appointments to make sure the buyer is qualified to complete a potential contract.

Too many clowns have done this on their own without a realtor for it to be an impossible task.

Bat **** crazy.