NAR Provides New Guidelines and Clarifications for Settlement Changes
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- Опубліковано 30 вер 2024
- www.thepaperles...
On April 24th, the judge in the Sitzer Burnett class action lawsuit granted preliminary approval of the settlement put forth by the National Association of Realtors.
Now that the settlement is moving forward, NAR is slowly starting to provide greater clarity and guidance around the new rules, timelines, and terms. In the latest update to their FAQ, NAR provided greater clarity around open houses, home tours when you represent the seller, where you can advertise seller compensation, and more.
We break it all down in this episode of the Chris and Garry Show!
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I feel sorry for anyone wanting to buy real estate now. If you thought things were a mess before (they were) you're going to be shocked by the levels of agent desperation we'll be seeing in the future. I look for corruption to skyrocket in the coming years.
This lawsuit sounds like the sellers agent did a poor job of effectively conveying how commissions are paid and distributed in a real estate transactions. 6% is split between the two agents and is distributed at closing which is usually covered by the loan the buyers obtain.
Exactly
6% is not the set amount generically, nor is 50/ 50 split . All of that ALWAYS has had to be negotiated case by case. Now it must be done OFF the MLS. Since Seller can split OR pay " closing costs by Buyer" there is great opportunity for discrimination in assist that a blanket compensation avoided. Unintended consequences...seat belts fastened?
The 6% is not covered by the loan. It's a direct reduction of the sales proceeds to the seller.
@@rack9458 and it ALL comes from the BUYER
@@rack9458 reduced from the proceeds that are coming from the loan lol
So much unknown right now, however, I have already seen sellers in my area listing with 0% buyer agency commission. I have yet to see any viable solutions to assist buyers from a financial standpoint. The most effected by this are first time buyers who are usually already strapped for cash. Makes an already tough market even harder from first time buyers.
Completely confusing for buyers, especially when it comes to specific buyer's agent commission amounts. Completely confusing.
FHA and VA are both willing to have buyers' agents comp on top of allowed Seller closing cost aid. Gonna be FUN!!!
Easy solution.....buyers will just work directly with the sellers agent.
@@rack9458 Conflict of interest, obviously.
It's not only about compensation, it's about representation. This is going backwards. Bringing back sub agency, and what about the CIS? Before speaking with a client at all!
It is a race to the bottom for the industry for sure!
I’ve got hundreds of videos on UA-cam. Property walkthroughs.
But you're not directing them to a particular buyer. If you're worried about running afoul of the new rules, I don't see any reason why we can't continue to walk through houses online. These rules are about your direct relationship with one buyer. Anybody who wants a follow-up showing from your video certainly would need to sign an agreement because they've approached you about services now.
Thanks for the information! 😀
The lawyers make millions and people who sold their homes get $13. People selling a house in the future will make money by not having to pay the buying agent saving thousands.
This whole thing is a disaster.
a lot of agents will still encourage it. somebody has to let them in; the listing agent can’t always be available.
no, it is not a disaster. Those who do it right and have real negotiating skills will remain and prosper. Learn how.
@@teleskopossomniumIf you don't have time to show my listing to a qualified buyer you can consider yourself fired!
Until the first lawsuit by an unrepresented buyer or underrepresented buyer hits a seller. Let's see if that makes big splashy headlines. Something tells me there will have to be a whole lot of these lawsuits before anybody is paying attention. Everybody keeps assuming that once a deal is done, the deal is done. Buyers can come up with all kinds of reasons to tie up listing agents and sellers in litigation. It's not going to be pretty.
It is a great OPPORTUNITY
What is the name & source of the document you are discussing? how do you obtain the list of points regarding buyers you are discussing ? TY
Is there an agent/buyer script that agents can use to roleplay in regards to getting buyers to sign the buyer's agreement?
Buyers won't be signing any agreements after this kicks in! Buyers can view all listed homes online and will simply contact the sellers agent directly.
@@rack9458 Who will represent buyer and what specific commission will be paid to buyer's rep?
Show your value. They WILL use us.
Good thing Garry's definition of working with a buyer isn't the standard. Then there would be no online lead generation. We're all sending listings working toward getting the kind of meeting Garry talks about. Also, I think the practice changes slipped in timing because they were tied to preliminary approval of the settlement, which slipped. Now that preliminary approval has been granted, I don't expect to see any more sliding in the schedule.
So if your a listing agent and a buyer comes to you, how does that work?
I do not do dial agency. I will offer Buyers, in that case , a referral to another agent, or will handle the deets for Buyer as non- represented. They are free to choose another agent.
Dual
UNCLEAR AND CONFUSING FOR BUYERS --- in cases where the seller doesn't pay the buyer's agent, how are buyers supposed to negotiate with their agents and decide upfront on buyer's agent commission when the industry hasn't established what the new norms are?
You’ll need to work that out before you’re able to tour and see any homes. Sellers/listing agents cannot put any commission amounts they are willing to give on the MLS. So, the buyers agent will need to communicate with the listing agent. I’m mostly a sellers listing agent and I assume that there will be more listing agents doing both sides of the transaction. I’m in California so things are pretty quick to change and be updated.
@@ScottSellsSoCal Thanks, but it's still confusing for buyers, and how on earth can a buyer negotiate with a buyer's agent for a specific commission amount when norms have not been established? And your comment reveals no specific buyer's commission amount/range because everybody is actually confused and unclear about how this situation will play out.
there is NO NORM... that is the point!!. In fact, it has ALWAYS been negotiable.
There’s going to be some confusion until we have this fully rolled out and people adjust and adapt to them.
As far as the commissions you mention, surely you’re seeing the commission amount offered to buyers agents now, on properties you’re searching? It says buyers agent compensation and a percentage usually from 1.5 to 2.5%.
So if you’re a buyer and the realtor you’re speaking with is saying they want 3% know that’s a lot.
Dual agency, which is a contradiction, will be banned and I think that is excellent. MOST Buyers NEED someone to represent them...dual is just transaction agent w prior allegiance to one side.
California law will be you must have an agreement prior to writing an offer.
Quit NAR!
no, just do it right!
Quit NAR they are useless
Not if you are working directly with the sellers agent.
What a nice sound bite! And where are you going to get your CAR documents to write your offer and move through escrow? Are you going to wade into the uncharted waters of commercial real estate? That's a silly answer and certainly not one that can be practically implemented anytime soon.
@@tracythrowerconyers Buyers will be looking towards Real Estate Attorneys going forward. The buyers agent will either need to greatly reduce their commission or will be looking for a new line of work