FYI If seller paying a BA commission it's doesn't need to be included as an IPC (Seller Concession) - so if seller willing to pay a BA Compensation best to keep out of the IPC guidelines where applicable.
Commission can be anything, but the what throws a wrench in all this is that the buyer's agent cannot get paid more than what is written in the buyer representation agreement. So, commission is indirectly limited by the buyer rep. agreement.
Great video! How would you handle commission on these forms if you do an off-market deal? Let's say one side ha already agreed to give 5% commission, how do you handle the other side, do you really have to offer them full representation and show them what you're getting from the seller before they even sign? Or, it seems there is a form missing between BRBC and BNA, an option to just represent one party (that is offering full commission) but be able to supply forms for the party that wants to represent themselves.
It depends on several factors. In off-market transactions where the buyer already knows they want to make an offer and bring in an agent to write the offer, I imagine many agents will skip the buyer rep. agreement. It will be interesting to see how the rule will be written. For example, will MLS policy only require a buyer rep. agreement to show homes listed on the MLS? Basically, what will the loophole be for realtors that really don't want to get a buyer rep signed. With commission, if the seller pays the listing broker and the listing broker pays half then I don't see why the buyer needs to know (so long as there is no buyer rep. agreement) but if the seller pays a buyer's agent it should always be disclosed. Keep in mind, NAR and the MLSs and maybe even the DOJ will do everything they can to eliminate as many workarounds as possible.
Great Video! I have a question regarding the seller concessions. How will agents guarantee that they get the concession vs it going towards repairs or other closing costs?
The seller will make a blanket offer of concessions. It's up to the buyer's agent to specify in the transaction paperwork who gets what and what it is applied to. So, ultimately, the buyer and seller will need to agree in writing exactly how the concessions are spent.
I thought the whole point of introducing the ask for agent commission separately from the buyer’s offer through the cbc was to not have the commission be part of the negotiation between the buyer offer and the seller price for the property as to have none as a broker who has that conflict of interest if the Listing Broker wasn’t paying the Buyer broker enough compensation, hence why the cbc was the proper step outside any client contract negotiation?
@@LuisSanchez-wf9zw Using the CBC to address commission outside of the RPA is totally fine, but there are 2 potential issues: 1. what if the listing broker isn't charging the seller enough to pay the buyer's broker? Then the CBC will be rejected. 2. Unless agents want to communicate commissions over the phone, there is no streamlined way to know what is being offered. The MLS is pre-empting this by planning a seller concession field on the MLS to give buyer's agents an idea. All of this is still up in the air and it's quite messy.
There is no doubt that they’ll be situations where buyers end up signing two buyer agreements from two agents, not realizing what they’re doing…..until closing
I didn't even think of this. Of course, there are always provisions (like in listing agreements) that the principal has not entered into an agreement with another broker - but who actually reads the fine print? So, Yes, this will absolutely happen and agents will battle each other when they find their client is in escrow or purchased through another agent. And how bitter will buyers get when their former agent sues them for commission because they bought with another agent? All these changes make everyone worse off.
Hunter. Thanks for the videos as they are great. Question: Does Balboa Real Estate allow for leasing agents to join your Brokerage? Im in San Francisco and want to know if thats a possibility.. Thank you
@@BalboaRealEstate would it be a requirment that i be a sf association member here in order to do leasing here in SF? Im under the impression that I shouldnt have to be
@@gabequezada2066 No, there is no requirement. I just assumed you would be a member. Can you email me at broker(at)balboateam.com with your contact info and we can chat this week? Thanks
I don't agree with the MLS stipulation that states buyer agents are not allowed to receive more than what is stipulated in the BRBC. This is not what is stated in the actual BRBC form. Section 4D 2 states : If third-party payments received exceed Buyer's obligation, the excess amount shall be paid to Broker, or credited to Buyer, or other Agents have the option to keep the excess amount. Where does the MLS come off thinking they can cap our commission amounts!? They have explicitly stated commissions are to be negotiated outside of the MLS. The MLS has no authority in our commission amounts. Let's be brutally honest... The MLS is a website of homes. Nothing more.
I totally agree, but the current BRBC is going bye-bye and will be replaced with whatever is agreed to in the settlement. So, I say to agents, don't use the new BRBC then. I just uploaded a 1-page buyer rep agreement in another video use that one. Agents forget that NAR and NAR-controlled MLS membership is optional. And many agents will opt-out. These restrictions are for realtors, not agents.
Can we put this in MLS: This 2.5 bedroom home will be PERfect for you as it has reCENTly been updated. 😂😂😂 On a Real note I don’t mind buyer agents calling me and asking if I’m offering any commissions. I’m going to still offer 2.5+ percent. 👍🏼
You know there is nothing that says a seller or buyer has to pay any % of commission it can be a flat fee.If the seller's start paying a lower flat fee amount.The buyers if the sellers are not offering to pay any buyers fees then the buyer also offers a lower flat fee amount to buyers agents then thay can afford to buy.Also how is a buyer going to know if the seller is offering to pay any of there buyers agents commission?The buyer could end up paying and the seller paying also what proof is the buyer going to getthat this is not happening?
very good Thank you!
Thanks, Hunter!
Thanks
Thank you for this
This is fantastic info Hunter thank you for doing this video Carolin
Michael and I talked about this like two weeks ago. It’s going to be the Wild West. Thanks Hunter!
It sure is!
FYI If seller paying a BA commission it's doesn't need to be included as an IPC (Seller Concession) - so if seller willing to pay a BA Compensation best to keep out of the IPC guidelines where applicable.
Good point!
Great info!
QQ: What is considered "too low" or "too high" of a commission? How does NAR define this?
Commission can be anything, but the what throws a wrench in all this is that the buyer's agent cannot get paid more than what is written in the buyer representation agreement. So, commission is indirectly limited by the buyer rep. agreement.
Great video! How would you handle commission on these forms if you do an off-market deal? Let's say one side ha already agreed to give 5% commission, how do you handle the other side, do you really have to offer them full representation and show them what you're getting from the seller before they even sign? Or, it seems there is a form missing between BRBC and BNA, an option to just represent one party (that is offering full commission) but be able to supply forms for the party that wants to represent themselves.
It depends on several factors. In off-market transactions where the buyer already knows they want to make an offer and bring in an agent to write the offer, I imagine many agents will skip the buyer rep. agreement. It will be interesting to see how the rule will be written. For example, will MLS policy only require a buyer rep. agreement to show homes listed on the MLS? Basically, what will the loophole be for realtors that really don't want to get a buyer rep signed. With commission, if the seller pays the listing broker and the listing broker pays half then I don't see why the buyer needs to know (so long as there is no buyer rep. agreement) but if the seller pays a buyer's agent it should always be disclosed.
Keep in mind, NAR and the MLSs and maybe even the DOJ will do everything they can to eliminate as many workarounds as possible.
Great Video! I have a question regarding the seller concessions. How will agents guarantee that they get the concession vs it going towards repairs or other closing costs?
The seller will make a blanket offer of concessions. It's up to the buyer's agent to specify in the transaction paperwork who gets what and what it is applied to. So, ultimately, the buyer and seller will need to agree in writing exactly how the concessions are spent.
I thought the whole point of introducing the ask for agent commission separately from the buyer’s offer through the cbc was to not have the commission be part of the negotiation between the buyer offer and the seller price for the property as to have none as a broker who has that conflict of interest if the Listing Broker wasn’t paying the Buyer broker enough compensation, hence why the cbc was the proper step outside any client contract negotiation?
@@LuisSanchez-wf9zw Using the CBC to address commission outside of the RPA is totally fine, but there are 2 potential issues: 1. what if the listing broker isn't charging the seller enough to pay the buyer's broker? Then the CBC will be rejected. 2. Unless agents want to communicate commissions over the phone, there is no streamlined way to know what is being offered. The MLS is pre-empting this by planning a seller concession field on the MLS to give buyer's agents an idea. All of this is still up in the air and it's quite messy.
There is no doubt that they’ll be situations where buyers end up signing two buyer agreements from two agents, not realizing what they’re doing…..until closing
I didn't even think of this. Of course, there are always provisions (like in listing agreements) that the principal has not entered into an agreement with another broker - but who actually reads the fine print? So, Yes, this will absolutely happen and agents will battle each other when they find their client is in escrow or purchased through another agent. And how bitter will buyers get when their former agent sues them for commission because they bought with another agent? All these changes make everyone worse off.
Hunter. Thanks for the videos as they are great. Question: Does Balboa Real Estate allow for leasing agents to join your Brokerage? Im in San Francisco and want to know if thats a possibility..
Thank you
Yes, we do leasing but we are not a member of the SF board. Just neighboring, ie. Contra Costa Assoc.
@@BalboaRealEstate would it be a requirment that i be a sf association member here in order to do leasing here in SF? Im under the impression that I shouldnt have to be
@@gabequezada2066 No, there is no requirement. I just assumed you would be a member. Can you email me at broker(at)balboateam.com with your contact info and we can chat this week? Thanks
I don't agree with the MLS stipulation that states buyer agents are not allowed to receive more than what is stipulated in the BRBC. This is not what is stated in the actual BRBC form. Section 4D 2 states :
If third-party payments received exceed Buyer's obligation, the excess amount shall be paid to Broker, or credited to
Buyer, or other
Agents have the option to keep the excess amount. Where does the MLS come off thinking they can cap our commission amounts!? They have explicitly stated commissions are to be negotiated outside of the MLS.
The MLS has no authority in our commission amounts. Let's be brutally honest... The MLS is a website of homes. Nothing more.
I totally agree, but the current BRBC is going bye-bye and will be replaced with whatever is agreed to in the settlement. So, I say to agents, don't use the new BRBC then. I just uploaded a 1-page buyer rep agreement in another video use that one.
Agents forget that NAR and NAR-controlled MLS membership is optional. And many agents will opt-out. These restrictions are for realtors, not agents.
@@BalboaRealEstate That makes sense. I wasn't aware the new BRBC was changing. You always provide great information. 👍
Can we put this in MLS: This 2.5 bedroom home will be PERfect for you as it has reCENTly been updated. 😂😂😂
On a Real note I don’t mind buyer agents calling me and asking if I’m offering any commissions. I’m going to still offer 2.5+ percent. 👍🏼
You know there is nothing that says a seller or buyer has to pay any % of commission it can be a flat fee.If the seller's start paying a lower flat fee amount.The buyers if the sellers are not offering to pay any buyers fees then the buyer also offers a lower flat fee amount to buyers agents then thay can afford to buy.Also how is a buyer going to know if the seller is offering to pay any of there buyers agents commission?The buyer could end up paying and the seller paying also what proof is the buyer going to getthat this is not happening?
Yes, the buyer will know because any commission received from anyone else offsets the buyer's obligation. There may be times when the buyer pays.
😮