NAR Settlement VS Commissions: What you need to know
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- Опубликовано: 10 июн 2024
- The NAR just settled a massive case that could greatly affect how real estate agents do business. If you're a realtor and are wondering how this could affect your commissions, in this video I break down my initial thoughts about how this landmark shift may affect sellers, buyers, and their agents.
Tiffany Webber is a real estate attorney and owner of Thomas & Webber, a real estate law firm in Mooresville, North Carolina. They handle both commercial and residential real estate closings, estate planning, and business formations.
If you'd like to work with Thomas & Webber, please email info@thomasandwebber.com
00:00 -- The Settlement
02:25 - Impact for Realtors
04:45 - The Path Forward? 
Развлечения
The Seller is not paying the buyers fee, the Listing Agent is. It is very similar to a general contractor hiring a sub- contractor. The owner pays the general the general pays the subs. That is it. Is the fee to the Selling Agent negotiable, yes it is. This should have never gone to trial.
This couldn't be further from that truth.
I was studying to take my test. Not now!
I don't see how listing agents will be able to lower their commissions...if they have to do all the showings, help confused buyers navigate getting a loan, deal with looklilous, etc...maybe initially but after the first year the agents left will start negotiating for additional commission for a buyer agent or to compensate someone on their team that does deal with the buyers.
This will be an interesting few months to here what the Real Estate Commission says
Do you think this will lead to more dual agency transactions?
Things will work themselves out. May be a silver lining for buyers agents in that they could charge a flat fee that would guarantee them some income regardless if a home is bought. I'd be willing to pay a few thousand to a sellers agent as a fee if he reduced his commission on any sale.
This could really hurt the VA buyer that can’t bring money to closing even if they want to
We’ve been talking about this A LOT behind the scenes. I think something will have to change with how VA loans are currently working.
If a person doesn’t even have 5k in savings the last thing they should be thinking about is buying a house. Commissions need to cut drastically. There is not a realtor alive worth 6% of a 4-500k purchase. Agent commissions should be 1500-2500 each. Tops. This system of commissions needs broken.
Total compensation to the buyer from the seller on an FHA loan is 3% max. If buyer needs closing cost assistance and commission assistance to their buyer agent, this will not work.
Sure it does. The buyer’s agent gets paid less.
Negotiate seller concessions
Perhaps the biggest take away from this event will be that buyers and sellers will be more aware of the fact that sales contracts are negotiable, as are offers and counter offers during the process. Realtors often abused their knowledge by implying to their clients that certain aspects of the deal were not open to negotiation.
That is what I believe the main goal of the settlement is.
This will be good for real estate attorneys who can do a flat fee to guide buyers through the buying process because most buyers find the house they want online and don’t really need to pay an outrageous amount of money to a buyers agent.
Possibly...It could also have A LOT of work fielding questions and calls
@@TheRealEstateLawyer , yes, many real estate agents are so "concerned" that buyers won't have representation. I think hiring a real estate lawyer would be a much better option than hiring a real estate agent (who I think isn't even supposed to give any legal advice) to help with buying a house. Most people are quite capable of viewing houses on the internet and checking those houses out. If they're interested in a house, then they would retain a real estate attorney to guide them through the process and also possibly negotiate with the seller.
I think an hourly fee structure would make more sense than a flat fee. Even at $500/hr, it would take 12 hours of billing time to get to about $5,000 in fees, and probably a real estate law office like this would have lower paid paralegals (or some type of assistants) who could handle a lot of the questions.
Compare $5,000 in billing to a real estate lawyer to 3% of $1,000,000 house sale price of $30,000!! No comparison and you would get better advice from an attorney.
This is going to be a cash cow for attorneys.
If a buyer needs a Buyer Guide they need an agent.
A buyer wont afford an attorney for the amount of time it can take.
We already have transaction coordinators! They do paperwork
Some do, not many.
Most tc organize paperwork & check timeline & email your contract out for signatures. They dont decide for u which document to use for what & the verbiage to input & negotiation abilities
There is no incentive for buyers agent to show the property of the seller that’s not offering any compensation! Duh
Yeah there is…it’s called a fiduciary duty to the buyer when they enter an agreement.
@@TheRealEstateLawyer Under the new practice, if my low income buyer can't really afford to pay me but agrees to say 1% in the Buyer Rep Agreement, they won't want to see houses where seller won't help them pay me. Viewing a zero pay properties will be a fruitless fight unless the buyer has deep pockets. I'll tell them and let them decide, but the viewing likely won't happen.
There is no standard commission!!!!
There’s common practice but not a regulated set amount
So list the comp to buyer elsewhere. This won’t change anything.
I believe it will change a lot.
Realtor here. I think this has opened the festering wound of our allowing "bimbo" agents and poor PR to turn public opinion against agents. Those same plaintiffs won't fuss about their attorneys eating a huge piece of the settlement pie tho. We'll have to deal with a time window where the public may learn the hard way what the real estate transaction is like without compensated advocates. Will wait and see