3/20 Update: NAR Proposed Settlement | Addressing Common Questions, Statements and Misconceptions
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- เผยแพร่เมื่อ 12 ก.ย. 2024
- 1:05 What Changes are happening NOW?
2:20 Proposed Settlement Rule:
Agent working with a buyer must enter into a written agreement before the buyer tours any home with at least these terms.
3:00 Proposed Settlement Rule:
Any MLS Rule and any existing Offer of Compensation field requiring blanket, unilateral offers of Compensation must be eliminated.
3:27 Proposed Settlement Rule New MLS Rule that prohibits Listing Broker AND Sellers from making Offers of Compensation on the MLS to Buyer Brokers, or disclosing on the MLS Listing Broker Compensation or Total Broker Compensation
5:17 What do the proposed settlement rules NOT prevent?
7:46 Proposed Settlement Rule:
Agent working with a buyer must enter into a written agreement before the buyer tours any home with at least these terms....
11:08 Common Question:
"How can NAR do this to us?"
17:00 Common Statement We've Been Hearing:
"Real estate as we know it is coming to an end."
20:29 Another Common Statement We've Been Hearing:
"Buyer agents are going to suffer the most."
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As a listing agent I disagree. A good listing agents spends a great deal of money on each listing. The listing agent hires the professional photographer, works the listing to get it sold at open houses, broker previews, pays for brochures and etc. Please do not make light of the value of a good listing agent. After 32 years in RE, most as a listing agent, I do not take my job lightly. I advertise in the Wall Street Journal and abroad to keep my listings in front of buyers worldwide. This has always come out of my commissions, and I spend my money upfront to represent my clients homes in the most positive light. I Do Not jus put it in the MLS and put up a sign.
Hi Nancy, I haven't spoken to you in years. Nice to see you are still selling real estate. I agree with you about listing agents working very hard to sell their clients homes. I met you on 3 Lucania Dr., Newport Coast. Let's connect again. Shirley Cameron, Coldwell Banker Platinum Properties
I agree Zorn's comment came off cavalier and maybe even a bit smug but maybe it's just his way. Buyer or seller, it seems i never get "easy" deals. Guess that's just the way it goes.
Not to mention negotiating saving sellers money due to our know how and skillset. Knowing which finances/loans are good ones and reading the buyers agent and their clients desire to actually close. Saving time.
Agree! All I do is stick a sign in the ground and take offers? Please...This is why buyer agents think they should get as much as we do. Both sides work (or should work) hard for their clients! As a listing agent I pay for many things up front.
yes he has a very picturesque idea of what a listing agent has to do
The seller is not paying the buyer’s agent. The brokerage fee is negotiated by the listing agent. The listing broker then offers compensation to other brokers for assisting in selling that listing. The payment is between the brokers.
Yes! I will die on this hill.
Maybe NAR should have negotiated the end of the syndication of our hard earned listings. End it now. Suddenly the buyer's agent would have real leverage with their clients. They would bring our listings to the buyers like the pre-syndication days. Versus buyers feeling entitled to our data as they scroll endlessly on their sofas. Duh. But, of course, NAR missed the boat on this critical piece.
How is this good for the consumer? I think MLS should go the other way, towards mandatory disclosure. But that's only me.
It sounds good to have a buyer sign a buyer’s broker agreement. However, the majority of first time homebuyers that I have worked with during my 16 year career have never had extra money for a buyer’s agent’s compensation and neither do they have it now. We do not have a workable solution for lower income first time homebuyers. Sure the rich well-off buyers will be just fine. But even my $2million buyer didn’t want to pay or sign a Buyer’s Broker Agreement b/c she said the seller had factored into the sales price that amount of commission. True or not true? This is what buyers believe.
Edward Zorn is a lawyer. In this video he said that because he's a lawyer he should be paid more than an Realtor who is not licenced by the bar. Edward and Art were sugar coating what's happenning with this decision. This is going to be devastating to buyers and realtor's. I'm ashamed of the NAR and it's lawyers for throwing all of us real estate agents under the bus. This is nothing more than the legal profession trying to eliminate the realtor. They both acted like the NAR had no choice. They actually had the gaul to tell all of us the NAR would have to file bankruptcy if it chose to fight this decision. I reiterate I'm ashamed of the NAR and it's lawyers for throwing all of us real estate agents under the bus.
Thanks Ed and Art! So much info to unpack, my gut feeling is that yes it will be a change, but the sky isn't falling. Know your value, explain it, and have a contract with your buyer so that everyone understands the process. It's just another layer of our negotiation with the seller.
Sounds like double talk. Transparency is more important. This if we are not allowed to disclose or tell how much the seller is offering BEFORE it closes is important. Plus Zillow can disclose. But MLS can not?
AGENTS LEAVE NAR AND LEAVE THE MLS !!!
This by far has been the best and most informative video I have seen to date. Thank you!
Thank you for tuning in! We're glad we can help clear the air. We will be providing more updates as they come in, so stay tuned.
There has been a lot of communication from NAR, CRMS, Brokers, etc., all of which have a positive twist on why the court decision will be good... I would really like a straightforward conversation about what this decision may truly mean without all the sugarcoating.
You just told bus that there is a clause that prohibits the buyers agent from receiving any out side or more compensation than the sellers is offering. You guys are blowing smoke up our rear ends! I've been in this industry for almost 40 years.
Thanks for the information Art and Ed. I guess it feels like it flips the script. As I buyer's agent I could have "redlined" listings with low published offers of compensation, which I guess this addresses, but I can see a scenario where every offer will be an opportunity for negotiating my compensation and my clients being "redlined" by the sellers/listing broker in preference to lower offers of buyer broker compensation. I see this as hurting both buyers and sellers in the long run, but buyers will bear the brunt. What has made the system work is the direction of flow of funds. Many, many residential buyers are not in the position to pay my compensation up front. The analog to commercial transactions provided here is somewhat tangential. Most of my buyers are scraping up what they need to close now, and getting the bulk of the purchase price from a lender. Paying a commission or fees may not be workable for many or even most. I see a big increase in dual agency, buyers trying to negotiate and manage their own deals, or simply under represented buyers. Time will tell, I suppose.
I'd also like to know if the Buyer Agent is neglecting his/her fiduciary responsibility to their client by not showing certain homes due to non-compensation. Fiduciaries are legally bound to put their client’s best interests ahead of their own. BUT, you say, the contract is breached when the buyer can't pay a commission. Is it? Anyone see another class action lawsuit here?
More Dual agency which is often a tricky situation. Who is looking out for who?? Nearly every homeowner to date hade a seller that paid their buyers agent commission . No complaints about that?/
@@mrsdals potentially, yes. I've heard some people suggest that if the listing side won't pay cooperating broker comp, and buyer can't, for whatever reason, pay my comp, but still wants to purchase the home, then I'm beaching my duty if I decline to do the deal for free.
And dual agency? Something that should never have been legal here in CA.... a conflict of interest no matter how you sugar-coat it. Is Dual agency still legal?
You guys say, (as I am now hearing this a lot) show the buyers your worth, and they will pay the compensation. They will not, nor do I blame them. They will simply work with the listing agent. I foresee corruption in the future, unethical listing agents using this to their advantage.
Listing Agents as well as Buyers Agents are independent Contractors and work hard to achieve the sale of the property. We are going through changes and need to find a way to pivot and continue in the business.
The seller can offer ANY COMPENSATION to anyone they want. Ever heard of the US CONSTITUTION? I guess not.
Seems like the California Listing agreement is pretty clear regarding seller compensation to the buyer agent, and overall our contracts and disclosures are pretty good in comparison to other states. Two questions- 1- C.A.R./CRMLS is large enough, what is the benefit of being part of NAR? 2- Seems like the new rule of law will create more dual agency which may lead to more lawsuits. Is it beneficial at the same time to end dual agency?
Thank you for your time. Great information.
Actually, the buyer is paying for the listing agent's commission but not getting automatic representation. All the dues and fees we pay, the Realtor lobiests spend the most in DC and yet could not hire competent lawyers to defend all future buyers?
Buyer agency will go away. Seller agent will become buyer agent and close the deal. There should be rule that seller agent or there assistant won't represent buyer. Then things will ok. Otherwise buyer agents are gone.
will listings agents be aloowed to represent buyers as well in the same transaction, in other words will listing agents be allowed to double end deals? Or will there be a restriction on that? Can buyers be able to buy without an agent altogether?
Both these things are true now and should still be true until otherwise stated by the association. dual agency is allowed in CA, and buyers can choose to have representation. I hope this means that Buyer's agents will have to step up their game!!
- why wouldnt a buyer just always go straight to the listing agent now so they dont have to pay a commission to a buyers agent ???
A potential for conflict of interest that in the end may affect not only the buyer but also the Listing Agent as buying a property is a negociated event.
the listing agent is getting a commission to sell the house ! are you suggesting to the listing agent to represent the buyer for free.
Yep....thats a no brainer
Wow so I guess the MLS now OWNS the listings. Not the broker since you are going to CONTROL what I can put on MY OWN WEBSITE.
Great job Art and Ed. Very informative.
Thank you for tuning in. We're looking forward to providing further updates as things develops.
Completely untrue on almost every point. Is the MLS your lord and savior?
I have dropped NAR Membership & CAR. I am MLS only, and will drop CRMLS and look for an MLS not asscocaited with NAR.
How does making a buyer responsible solely for their agent's fees help them in any way with affordability? Negotiation with a seller comes after an agency agreement... so if they are like many buyers, they will only want to be shown properties where the seller will pay the fee. And that's now an easter egg hunt to find those situations. Stupid. NAR doesn't look out for anyone but NAR.
Can't wait for renters to coming into my office. Hi Mr/Renter how can I help you? We are looking for a rental approx budget is $5,000 a month... ok cool that will be $2,500 to my brokerage...
Question, Is CRMLS independently owned? Or is there any or partial ownership in the CRMLS by the Boards that you serve?? Apparently Independent MLS's are exempt from this settlement?? Would like to know. Thank you
Lots of word salad here...bottom line your dues is paying for this settlement....
So if a new home builder has a "agent rewards program" where as we get a bonus for selling another home to a client in that development is gone?
New home builders will continue to try and steer everything in-house with their "buyer incentives."
Is there anything in writing from this video?
It's not what we are hearing it's what we are seeing... I hope my brokerage drops out of NAR...
Is there going to be a field on MLS for buyer compensation for seller to give for incentive?
How will this affect the holding of open houses?
What if buyer refuses to pay me?
You would provide the agreement to escrow and it would be part of their closing costs
After listening to this, I don't think you guys understand what it is to be a real estate agent. You must have been trained at NAR.
Thats the BEST NAR can do??? So Sad
I am very confused. Will broker cooperation be removed from the listing contracts or no? Because it sounds like nothing will change realistically. Only thing that will change is mandatory buyer broker agreements and listing agents can't advertise commissions.
Yes, I believe it absolutely will be removed.
Listing contracts as of now have not discussed removing the compensation for buyers agents from the listing contracts. I truly think people are freaking out but buyers agents will be able to reach out to the listing agents when making the appt and ask if compensation is being offered. I know that personally I am still advocating for compensation for buyers agents with my sellers as we need professional agents on both sides in order to truly help our clients.
@@jenniferhiggins2495 If true that reaching out to LA to see if compensation is offered when scheduling a showing, and LA says no, I guess we go back to the buyer and ask them to pony up per the Buyer/Broker Agreement, or no showing. Also sets up potential "redlining" by LA. Could allow showings only to no/lowest compensation. It remains to be seen how sellers and buyers respond to this new paradigm. I still think buyers will be under represented as a group.
No it will not be removed, but the wording will change. A new addendum will also be instituted to cover the impending changes.
Both agents are to be compensated.
Plus it seems that the agents and brokers are better off not being in NAR and CAR. The end of being a Realtor. Sad times.
What has NAR and/or CAR ever done for you besides collecting fees from you?!
Great job! Thank you!!
AGENTS: Sell your listing OFF MLS !!!!
Here what you folks are missing, the CRMLS days are numbered, Zillow is chomping its teeth on this.
They are going to push towards their own platform taking out the MLS as a whole.
Zillow is playing 3D chest while the folks at the MLS are playing checkers.
I don't see how this will give Zillow an additional boost. btw redfin can continue to promote commission on their website and we have so many different ways to advertise besides the MLS to relay value. I'm thinking those of us that can adapt will be fine.
maybe this is true, but where's the evidence this is the case? The fact that something is plausible doesn't make it probable.
I have been in Real Estate since 1998, I’m a broker, I remember when Zillow had their big meeting with the brokerage I worked for at the time. Bla bla bal we will never do that! And what did they do once they commanded market share?
They are not real estate agents friend, they are direct competitors for the same clients. They take brokers listings, put a platform together that is better than anyone else and sell leads back to agents.
Their Ibuying fell flat on its face because they don’t really understand how real estate works as a whole and why a housing tract a street over will sell for hundreds of thousands of dollars more.
I've had the number of the zillows and redfins for years. I've believe they are the disrupters of the industry of both agents, boards, and mls etc...but what to do? I have no sympathy for the sharks who are now getting cut up by the newer bigger fatter sharks. they deserve it. they been getting fat for decades and selling delusions to the average agents trying to carve out a living and leaving us fighting for scraps. @@jamesharvey8838
This reminds me of Obama care...
YOU DO NOT HAVE AUTHORITY TO MAKE BUYERS SIGN A CONTRACT. The MLS is NOT God.
Hahahaha
It is a requirement to have a buyer representation agreement signed before doing any activities with the buyer. You are right, buyer does not have to sign anything.
If we as individual agents do not follow the settlement , then we are not covered by the settlement and can be sued individually, per Gov Hutchinson.
Also this form will protect you with procuring cause cases.