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I think it is a disadvantage! Reason being a member of NAR should be an option not required by your local MLS and state. Very good question on why the other 49 states are just following the MASSES! Nice deal for the agents and brokers in Colorado that their state was smart enough to differentiate themselves from everyone else and NAR!
Unfortunately Jared, I believe you are spot on. I have embraced my Realtor membership for over 25 years, past president of my local association and a strong supporter of Realtors. Now however, the NAR settlement is making it much more difficult for our buyer AND seller clients; and places undue pressure on Realtors that is not placed on state licensed real estate brokers/agents even here in Colorado.
It’s great hearing from someone with your experience. Would love your thoughts on what you think the endgame will be? If we all go rogue would the DOJ, be able to push us around easier?
I’m getting an ulcer over all this! In my 20 years of Real Estate I have never seen such non-sense. How is it in the best interest of the consumer to have to sign an agreement to pay you KNOWING FULL WELL they don’t have the money to do it, just so you can collect what the seller or cooperating broker is paying (assuming they are)? Talk about BS. I would never sigh something saying I’m going to pay knowing I didn’t have the money to do it, and we have to convince our buyers to do it. What has our industry come to?😢 Now the public is going to hate us even more. Want to come off as a money grubbing door opener…well making them sign this crap does just that!
If I could get MLS access without being a part of NAR, I 100% would That’s the only benefit I can think of that was worth paying $1,700, UP FRONT, as a brand new agent
Sales associates will definitely have an advantage over Realtors. In a recent Broker/Owner zoom meeting with our association attorneys going over the new "forms" they made mention that our state real estate commission is looking to make it a requirement for ALL licensed individuals to comply, but kind of like no HOA if there is nobody to enforce or police it or look over docs to make sure it is signed prior to showing it will be the Wild Wild West out there. I have no problem taking the compensation off of the MLS and having a conversation with the listing office to verify commission but what is happening now is pure and simple nothing but a money grab for attorneys. Forcing Realtors to use this doc prior to showing will create MORE law suits which simply means MORE $$ for attorneys. Has NOTHING to do with compensating the few that were misinformed in the beginning.
I never want to ask someone to do something that I wasn't willing to do mysself and this is definitely one of them. I have already have received multiple complaints about agents getting exclusive buyer rep agreements signed and then doing nothing- thinking that they will still get paid when some other agent unknowlingly sells this buyer a property. (because the buyer is frustrated and says they don't think they signed anything) This whole thing is a HUGE step backwards in the way of transparency, representation, etc.
Dear Mr. James, better than excellent show, information. The only element for all to consider (I can only speak for NYS.) If you’re not a member of NAR, MLS the other brokerages that are members- will not work with you. If you’re incredibly fortunate they “may” give you a referral fee. I believe in NYS, this is why no one is eliminating their NAR, MLS membership.
Thank you Jared. I'm glad that someone is worried about the Buyers during this Transition . Buyers are commenting that it is already a seller's market with low inventory and now this fee is being taken from the seller and transferred to the buyers in a highly competitive time. How can a buyer win.
I personally have NEVER seen the value in being a Realtor since the public really doesn't know the different. Then they didn't do a good job defending us, epic fail.
A buyer has to have an agreement only when dealing with an NAR realtor. the real estate industry definitely needed to be changed and this is just the beginning. Unfortunately, most of the NAR realtors also pledged a list of ethics and yet they forget them as soon as they get a customer it is time for some drastic changes.
I agree 100% I've thought that NAR has put the customer first always but this is not even benefiting the customer... definitely not the buyer. This is just defeat.
I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer .
I'm surprised that you just mentioned Natalie Strayer here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
Natalie Strayer has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's
I am a realtor in the San Francisco area and we’ve already been “practicing” with these forms on buyers and they are not having it! I feel it’s pushing us out and pretty soon there will only be listing agents. Like buying a car at a car lot or something. 😓
I agree... I have a small, less than 10 agents, company in Pennsylvania. I use PAR forms for all our transactions. I don't want to hire an attorney to craft forms for my office. So for now, I'll remain a NAR member.
I agree that there should be no buyer agency in place to show a dang property. I always gave 2 "free" days to buyers to look at property before having them sign anything. I feel that's the right way to do things, instead of locking someone in a contract. Regardless I'm pivoting to a 7 day buyer agency and if they want to continue working with me we can amend the agreement. I have had to let go of buyers already that won't sign anything.
@JaredJamestoday I believe that is going to be a big downfall with agents. Instead of the business being relational, they are going to seek only transactional. We all know that deep down, these changes are going to severely impact buyers. I look for a few non NAR companies to arise or some that already exist to explode in numbers. I have a bet going that we see a 30% drop in agents within a year and who knows I could be one of them since I'm a 97% buyer agent.
Agreed! For 25 years I've been a NAR member and extremely active in our local association. At this point however, I would honestly love to leave NAR, especially with dues coming around the corner for my agents. Unfortunately, our local association provides us access to all of our forms, access to our lockboxes, and rights to our MLS. So, no way to really leave NAR, while GCAAR is so vital to our everyday business. Hope that something changes one way or another.
Crazy how intertwined everything is. And to be clear, I'm rooting for NAR. I'm just pointing out the obvious from the perspective of the consumer and eliminating friction.
@@JaredJamestoday A free market requires friction. Friction is a good thing. Your frictionless industry was a cartel. The friction was removed on purpose. The rigged system was in violation of the Sherman Antitrust Act. If you buy a car, there's friction (negotiations over price). The same friction is necessary when hiring an agent. Our free market has made us the world's leading economic and military power.
100%. Bye NAR. This entire thing is literally taking us backwards - back to the 80's and 90's when the buyers were at the mercy of the seller's agent. Compensations for buyer's agenta have since effectively been built into the price of the home, financed by the buyer. Seller gets comparatively more money for their home, buyer doesn't have to come out of pocket with more $$ , and BOTH parties get representation. This is not hard stuff. Blows my mind that the attorneys dropped the ball on this. More sinister forces were at play here, I do believe. Hurting the consumer under the guise of helping them. Insane!
I don't think it's NAR's attorneys dropping the ball as much as it was the other sides attorney's taking advantage of "Legalise" they knew they could win on. It's not about who's right or wrong any more... it's about who can out litigate the other. Sad day.
I can see that. It is sad. It just doesn't compute for me. Buyers lose all day and sellers as a result. How does no one that matters see this?! The DOJs attack on our business model is unprecedented. And NAR's lack of effort to educate the consumer about what's going on is quite frustrating too, considering the amount of misinformation being spread by even those in the profession. Perception is reality in this business and we all got the shaft in a big way. Nonetheless, true professionals that maintain integrity of the industry and value of the buyer's agent will prevail! Thanks for the response, btw! 😊
Just asking real questions. I know what I want and hope that happens but I also have to be unbiased and ask the real questions that affect the people in this industry that I work so hard to support so they can support themselves and their families. 🤷♂
I believe what you’re saying makes the most sense. It’s an affront to buyers brokers trying to conduct their business. The majority of my business comes from NYC co-ops. Most co-ops require the seller to pay a flip tax back to the co-op upon sale. The vast majority of sellers who have owned their units over 7 years have equity in them. Having the buyer now paying the broker to get to the purchase is like paying the flip tax twice. The idea of a first time homebuyer needing to now come up with more to purchase, would not allow them to compete with those who can.
When will we know if Colorado's regulators win their disagreement with this NAR Settlement? And if Colorado NAR members are waived from doing the buyer requirements?
Although I agree initially with your sentiments, ultimately, I like working under a coat of ethics system, and I believe that being a member of NAR puts us in a more professional realm. The issue is like you said the public has no clue what the difference is and this all goes back to the fact that I believe buyer broker agreements are actually a good thing because it forces us to level up and be much more professional. Remains to be seen what NAR does in the Future.
I was going to say... what does that matter if the public doesn't even know it or know the difference between a Realtor and regular every day real estate agent?
My first thought was to join a brokerage not in NAR. They way they have mad things is not only harder on us but is not in the best interest of our clients. Love this. Thank you
No one is talking about specifics about what these agreements need to say. Maybe best proposition is buyer will pay realtor $150(maybe $200) for each home shown. Buyer will pay realtor $2000 to complete paperwork on closing. That's $200/hr for up to 10hrs of work to complete the paperwork. Not bad money. Agreements need to have time limit 3-6 months with a clause either side can terminate with some 7-30 day notice.
Great questions and valid concerns Jared. It's new and there will be a lot of ongoing questions, concerns and debates for the months/year ahead. There will be a lot of hurdles in the upcoming weeks and months as is the case with any major change in our businesses, but when the dust settles, the Pro's will rise to the top and the weak will leave the industry leaving more business for the Pro's. Yes there will be friction, just as there is when you compete for a listing and your value is challenged and the conversation involves services, commission, expectations and results, and this is when the professional Realtor steps up. The sale starts when the customer says "No". If you demonstrate your value, the consumer will have no problem signing a contract, whether it is a listing contract or a buyer contract, but if you have no value, no one will sign a contract. The advantage of a Buyer Contract is that the term can be for a day, week, month or months, so the Buyer can test out your services. Most importantly, the Buyer contract sets out the parameters of the relationship between the Buyer and the Agent and the obligations they have to each other for the term of the contract. The contract provides the Buyer with a peace of mind that the Buyer Agent they contract with will be operating under their professional Associations standards. If I want to invest $1M, do I choose the Broker who has no contracts, no standards and cannot demonstrate their value, or do I select the Broker who must adhere to their regulators standards, has proven value, and is under contract to serve me as mandated by their Association ? Food for thought from a Canadian Agent perspective. We have been mandated to use Buyer Contracts since 1995.
Absolutely agree in that the consumer doesn't care and just wants to see the property without being tied down to a contract. In contrast, would love to hear what you believe the current benefits of being a NAR member are at the moment?
That's part of me making this video. I'm searching for the answer to that and I'm sure I'll come up with some answers but wanted to hear from everyone else as well.
100% agree. The only thing WI did so far was create a "Pre-Agency Agreement." BUT, we STILL have to have this signed BEFORE letting a Buyer in to a home.
Not in this market, unless there is a strategy shift in areas like North Myrtle Beach, SC, where there are some really nice MH communities where homes the same size as a condo can possibly be found, completely remodeled, for $125,000 or possibly LESS! THESE are the communities which should be aggressively marketed to first time homebuyers. Forget mortgages! Forget HOA's! Go the "friends and family" route to get the money together to BUY OUTRIGHT, and then NOT have to worry about a foreclosure! Realtors can "cobble together" a few sales in these communities, to get the commission a lot faster than they would on a $400K sale where people have to finance!
As a realtor, Fuck NAR!! The MLS is a necessary tool I need to do my job….it’s an unfair conspiracy that my local mls (smart mls) requires me to be a member of NAR to use the MLS !
Showing a home is an agent's duty! WTH do you think you get paid for? Since the internet started hosting listings and virtual tours, I can screen what's available and don't even need my agent until I want to get inside a property. I do what used to be half the main job of agents a couple of short decades ago. The fees need to fit the actual value of the services provided and they have been too high for too long. The industry failed to reduce the fee percentages when prices spiked and it chose to run on greed. That's why corrective lawsuits and laws exist.
Technically you are always open to lawsuits. That's how this whole thing started. And if the industry as a whole keeps up the practice of broker to broker compensation, the attorney's are coming back for round 2. Mark my words.... It's sickening.
You really put some things into perspective. All the more reason why, as much as I’ve enjoyed working with buyers (most of them), I don’t want to work on the buy side anymore; just refer them out to agents who are tougher than me, lol!
Finally some folks speaking up! Hopefully more states to follow so consumers are protected! Two Michigan real estate brokers and an agent have filed a class-action antitrust lawsuit against national, state and local Realtor associations challenging the requirement that they belong to the trade groups in order to access the local multiple listing service. The real estate professionals decided to file the suit after the National Association of Realtors came to a proposed settlement of multiple antitrust lawsuits, whose rule changes the pros say will harm agents, brokers and consumers.
I am getting ready to start my next prelicense class and previously I have emphasized the REALTOR membership, state and local- the Code of Ethics etc. But as I prepare to teach the upcoming class this will certainly cause me to think about delivery of the information. Thanks as always Jared!
What happens if you are an MLS participant but NOT a Realtor, from an MLS that is not board related, must you aslo abide by these rules beginning AUgust 17th?
Only MLS’s that at associated with a Realtor Association have to follow those NAR Mandates. MLS’s that are independent or broker owned are not governed by NAR.
Hi Jared. Forgive my ignorance, but I'm just a little confused. I'm a NAR agent working under a NAR member brokerage (CA), but our brokerage gives us all the option of being just a licensed sales agent vs a realtor. I can still have access to MLS regardless. So, if I terminate my NAR membership would that be the loophole to these new rules? Or, am I still expected to follow the new guidelines as a non-NAR agent under a NAR member broker?
I am not having a problem getting buyers to sign before they see a property. It does take a short introduction and quick presentation as to why I need them to sign, and if they are uncomfortable signing a buyer agency agreement, there are ways to get what you are forced to do in NC (sign before showing) and relieving buyer apprehension in signing, e.g. sign for only that specific property, or signing for a 1 or 2 day time period (I usually don't do less than a week, and that has not been a problem.)
If not a member of NAR, we cannot access my local MLS. Supra system is an additional fee, outside of MLS access fees. some agents might put a lockbox on a home- that is a non supra system. That said, most use the supra system and pay the $17 a month to have their electronic Agent code work to gain access.
How important is it? If I need to be bound to code of ethics, am I really that ethical? I don't need to be told to be ethical or practice business the right way regardless of what organization I'm a part of.
@@JaredJamestoday I hear you, I'm was just saying that is what I talk with client about. Realtor or just a licensed sales person are not the same. One has given an oath to the code of ethic. I believe exactly the same as you and questioning the NAR.
NAR really screwed the brokers and agents...they never should have settled. They should have appealed and fought for us. Instead, they made things exponentially worse for the consumer.
The attorneys were going to litigate NAR into bankruptcy and then still come after it's members. No win either way. The corrupt ones were the attorney's on the other side.
Great points - and so my thoughts will be what advantage is there to pay all these dues to NAR for membership - but then will our Broker and local Associations require membership of NAR - I can't wait to see what happens - before I retire! LOL I don't think the consumer is going to give a good hoot as long as we get them in the homes of their choice! Real Estate Agent or REALTOR - yes I'm a Realtor for over 25 yrs.
With this mornings news of Sotherbys in MI filing suit with NAR, MAR and their local association I think we will start seeing more retailiation against the settlement. I felt from the beginning NAR through us REALTORS under the bus. We can't do business without the MLS and are not allowed to have another avenue to convert to. We are all going for a ride, time will tell.
You'll be fine. If anything you never got used to the old way. I've got my son getting into the industry as well. Your future is bright if your future is bright. It's about you, not the rules 🙌🏼
Don't worry!!! I got in during the short sale fiasco, those were "crappy times" and since it was all I knew, for me it was just business as usual. You'll be ok!
If only we didn't need the MLS. Without being a member of NAR I effectively can't do business. I would even need to leave my brokerage of 17 years because being a member of NAR is a requirement there. The whole thing is a mess. The first domino to fall to go back to the way things were would be getting rid of the death grip the MLS has.
Legislation in CA is expected to become law Jan 1, 2025 will require all licensees showing a buyer any type of property will be required to have a written agreement with that buyer prior to the showing.
Forcing a buyer to sign an agreement up front will not go over very well. Something just don't feel right about this. So much for keeping your clients best interest at the forefront. This requirement has us getting a personal guarantee of payment from them up front.
In WA State, our WAC effective January this year states, “ A firm must enter into a services agreement with the principal before, or as soon as reasonably practical after, its appointed broker commences rendering real estate brokerage services to, or on behalf of, the principal.” The as soon as reasonably practical after rendering real estate brokerage services gives us some flexibility here too in WA.
Yeah I like that. That was Colorado's point as well.... touring a home wasn't a brokerage duty so it leaves some wiggle room. This is going to be interesting for sure.
Go ahead and take the compensation off the mls but why the signed buyer agreement before showing a house? That should be a decision between the agent and the buyer. Don’t understand this part of the ruling at all.
My understanding in reading some of that article was the Colorado Agent non-Realtors don’t have to but the Realtors do. Is that not correct? Also does it matter that the law says you DON’T to do one instead of “you CAN’T do one”?
I took NAR’s comments to mean other agents and not realtors. That article states “ Buyers who want a broker representing them as a buyer agent do have to sign a buyer representation form with them. But Colorado law does not require buyers to sign an agreement for broker compensation before touring a property.” Which is a little confusing because they dont say “Colorado buyers” So it’s more like the realtor is still required to provide it but you can’t control the consumer if they don’t want to sign it and therefore you can still tour the house since you don’t need an agent in CO to your a home. Please note in not trying to be argumentative. Just trying to make sure I understand. Have any Colorado realtors made mention of this? I’d love to hear their take as well.
I do not think it was ever worth it for Real Estate Agents. Prior member of NAR for 26 years. Way too political and surely as is obvious, not in our best interests. Also, you'd think they would have protected us too, not just the supposed consumers. They obviously don't care about consumers as they turned a blind eye on interlopers such as Blackrock come in any buy up multiple s.f. homes who were then turned into rentals. They did not protect the buyers and sellers in that game of shame. Obviously, they don't want people to own their own homes anymore or the land they sit on. So goes that American dream full of b.s. We never actually own it anyway. As you know, it can be taken away by default on mortgage or taxes or by eminent domain. That lawsuit out of MO and NAR settling instead of protecting Realtors and actually all real estate agents as the word Realtor means nothing as they surely weren't protecting their members as is glaringly obvious. Over all these years, exactly how have they ever protected buyers and sellers and from whom?
Why can’t we just use one of the forms that allows us to show for now without any commission? Isn’t that the same? Then as what a real estate agent would do?
@@JaredJamestoday If you do the touring agreement or non-exclusive without commission to show the property are you going to do a new agreement before you write an offer so you can get paid?
I just don't see how that is good for buyers. That's what happened in Colorado and they had so many complaints from buyers who felt like they were forced into agreements they didn't feel comfortable with, with agents they hadn't even gotten to know.
Have had this thought myself but it is quickly followed up by a concern regarding the level of risk a non Realtor/Real Estate Agent has of being sued in this post settlement era. Having said this I've done no research on what protections this DOJ/NAR settlement currently offers Realtors or what risks are now part of the non Realtor world but I'm guessing you have thoughts? I'll lazily learn from you.
I believe you can show a buyer a home if they are a customer (unrepresented). You do not need anything signed if you show the property to a customer/unrepresented.
In Maine, this is not true. We have buyer agency and transaction brokerage - both have agreements showing expected compensation to the agent. One or the other has to be signed prior to showing a property
Potentially but I think that is a step in the wrong direction. Yes it levels the playing field but a buyer shouldn't have to sign a legal document to tour a house and begin the steps towards finding the right agent. Just my opinion.
That doesn't bother me as much as it does some just because I do believe in true transparency and I do think the consumer should have access to that info in a free market. It's up to them where they go for it.
Hey Jared, that's a great point! So now, if we (as agents) don't want to be part of NAR, will our local MLS force us into paying the fee? Our board has it as part of the invoice that gets sent out every year. I'm sure they take a portion of that as a "handling" fee...right....so if they do allow us not to pay the fee to NAR, then it's possible our yearly board dues would go up because they've just lost a revenue stream. I don't know about the rest of the country, but I don't really see the need in having a local MLS anyway. The last I actually went to the local board was probably 3-4 years ago. Our data is held with a separate company. So why couldn't we contract with that company and then we could excluded the local board, Zillow.com, Realtor.com, etc....because the person that holds the data may not have a contract in place with those types of companies. See what I mean? Kind of like take our industry back.
There's still time to get tickets to the 2024 Jared James Advance September 19th and 20th in Orlando Florida - visit jaredjamestoday.com/advance for tickets and info!
I think it is a disadvantage! Reason being a member of NAR should be an option not required by your local MLS and state. Very good question on why the other 49 states are just following the MASSES! Nice deal for the agents and brokers in Colorado that their state was smart enough to differentiate themselves from everyone else and NAR!
We have to though we cant practice or go on MLS.
Agreed
Unfortunately Jared, I believe you are spot on. I have embraced my Realtor membership for over 25 years, past president of my local association and a strong supporter of Realtors. Now however, the NAR settlement is making it much more difficult for our buyer AND seller clients; and places undue pressure on Realtors that is not placed on state licensed real estate brokers/agents even here in Colorado.
It's really sad.
It’s great hearing from someone with your experience. Would love your thoughts on what you think the endgame will be? If we all go rogue would the DOJ, be able to push us around easier?
I’m getting an ulcer over all this! In my 20 years of Real Estate I have never seen such non-sense. How is it in the best interest of the consumer to have to sign an agreement to pay you KNOWING FULL WELL they don’t have the money to do it, just so you can collect what the seller or cooperating broker is paying (assuming they are)? Talk about BS. I would never sigh something saying I’m going to pay knowing I didn’t have the money to do it, and we have to convince our buyers to do it. What has our industry come to?😢 Now the public is going to hate us even more. Want to come off as a money grubbing door opener…well making them sign this crap does just that!
Welcome to 2024 🤦♂
If I could get MLS access without being a part of NAR, I 100% would
That’s the only benefit I can think of that was worth paying $1,700, UP FRONT, as a brand new agent
Unfortunately, we can not use our local MLS services if we are not members of NAR and WRA. Without access to the MLS we would have a huge handicap.
This may be the next major legal fight.
Private MLSs on the rise!
Sales associates will definitely have an advantage over Realtors. In a recent Broker/Owner zoom meeting with our association attorneys going over the new "forms" they made mention that our state real estate commission is looking to make it a requirement for ALL licensed individuals to comply, but kind of like no HOA if there is nobody to enforce or police it or look over docs to make sure it is signed prior to showing it will be the Wild Wild West out there. I have no problem taking the compensation off of the MLS and having a conversation with the listing office to verify commission but what is happening now is pure and simple nothing but a money grab for attorneys. Forcing Realtors to use this doc prior to showing will create MORE law suits which simply means MORE $$ for attorneys. Has NOTHING to do with compensating the few that were misinformed in the beginning.
This oughta get interesting
I never want to ask someone to do something that I wasn't willing to do mysself and this is definitely one of them. I have already have received multiple complaints about agents getting exclusive buyer rep agreements signed and then doing nothing- thinking that they will still get paid when some other agent unknowlingly sells this buyer a property. (because the buyer is frustrated and says they don't think they signed anything) This whole thing is a HUGE step backwards in the way of transparency, representation, etc.
Ugh... that's terrible.
Dear Mr. James, better than excellent show, information. The only element for all to consider (I can only speak for NYS.) If you’re not a member of NAR, MLS the other brokerages that are members- will not work with you. If you’re incredibly fortunate they “may” give you a referral fee. I believe in NYS, this is why no one is eliminating their NAR, MLS membership.
Great feedback and thanks for watching!
@@JaredJamestoday Thank U!! Great work!!
Thank you Jared. I'm glad that someone is worried about the Buyers during this Transition . Buyers are commenting that it is already a seller's market with low inventory and now this fee is being taken from the seller and transferred to the buyers in a highly competitive time. How can a buyer win.
Exactly. It's just common sense.
I personally have NEVER seen the value in being a Realtor since the public really doesn't know the different. Then they didn't do a good job defending us, epic fail.
Fire your mob boss.
A buyer has to have an agreement only when dealing with an NAR realtor. the real estate industry definitely needed to be changed and this is just the beginning. Unfortunately, most of the NAR realtors also pledged a list of ethics and yet they forget them as soon as they get a customer it is time for some drastic changes.
I agree 100% I've thought that NAR has put the customer first always but this is not even benefiting the customer... definitely not the buyer. This is just defeat.
Unfortunately I don't think they had any choice :(
I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer .
I'm surprised that you just mentioned Natalie Strayer here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
Natalie Strayer has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's
I'm new at this, please how can I reach her?
After I raised up to 125k trading with her I bought a new House and a car here in the states also paid for my son's surgery
Glory to God shalom.
I am a realtor in the San Francisco area and we’ve already been “practicing” with these forms on buyers and they are not having it! I feel it’s pushing us out and pretty soon there will only be listing agents. Like buying a car at a car lot or something. 😓
Exactly. It's so obvious that buyers won't go for this.
Welcome to the free market. Your cartel days are over. Fire your mob boss (NAR).
I agree... I have a small, less than 10 agents, company in Pennsylvania. I use PAR forms for all our transactions. I don't want to hire an attorney to craft forms for my office. So for now, I'll remain a NAR member.
I agree, forms are a big deal when opting away from the NAR affiliation
Know your state laws. In Indiana all license’s Realtors or not have to have a BB in place to cross the “Threshold “
I agree that there should be no buyer agency in place to show a dang property. I always gave 2 "free" days to buyers to look at property before having them sign anything. I feel that's the right way to do things, instead of locking someone in a contract. Regardless I'm pivoting to a 7 day buyer agency and if they want to continue working with me we can amend the agreement. I have had to let go of buyers already that won't sign anything.
The pivots are going to be interesting for sure but at the end of the day, gotta stay relational within our business for sure.
@JaredJamestoday I believe that is going to be a big downfall with agents. Instead of the business being relational, they are going to seek only transactional. We all know that deep down, these changes are going to severely impact buyers. I look for a few non NAR companies to arise or some that already exist to explode in numbers. I have a bet going that we see a 30% drop in agents within a year and who knows I could be one of them since I'm a 97% buyer agent.
Agreed! For 25 years I've been a NAR member and extremely active in our local association. At this point however, I would honestly love to leave NAR, especially with dues coming around the corner for my agents. Unfortunately, our local association provides us access to all of our forms, access to our lockboxes, and rights to our MLS. So, no way to really leave NAR, while GCAAR is so vital to our everyday business. Hope that something changes one way or another.
Crazy how intertwined everything is. And to be clear, I'm rooting for NAR. I'm just pointing out the obvious from the perspective of the consumer and eliminating friction.
@@JaredJamestoday A free market requires friction. Friction is a good thing. Your frictionless industry was a cartel. The friction was removed on purpose. The rigged system was in violation of the Sherman Antitrust Act.
If you buy a car, there's friction (negotiations over price). The same friction is necessary when hiring an agent. Our free market has made us the world's leading economic and military power.
100%. Bye NAR. This entire thing is literally taking us backwards - back to the 80's and 90's when the buyers were at the mercy of the seller's agent. Compensations for buyer's agenta have since effectively been built into the price of the home, financed by the buyer. Seller gets comparatively more money for their home, buyer doesn't have to come out of pocket with more $$ , and BOTH parties get representation. This is not hard stuff. Blows my mind that the attorneys dropped the ball on this. More sinister forces were at play here, I do believe. Hurting the consumer under the guise of helping them. Insane!
I don't think it's NAR's attorneys dropping the ball as much as it was the other sides attorney's taking advantage of "Legalise" they knew they could win on. It's not about who's right or wrong any more... it's about who can out litigate the other. Sad day.
I can see that. It is sad. It just doesn't compute for me. Buyers lose all day and sellers as a result. How does no one that matters see this?! The DOJs attack on our business model is unprecedented. And NAR's lack of effort to educate the consumer about what's going on is quite frustrating too, considering the amount of misinformation being spread by even those in the profession. Perception is reality in this business and we all got the shaft in a big way.
Nonetheless, true professionals that maintain integrity of the industry and value of the buyer's agent will prevail!
Thanks for the response, btw! 😊
Holy Cow Jared. Nothing like pushing the envelope. You have the wheels a turnin!
Just asking real questions. I know what I want and hope that happens but I also have to be unbiased and ask the real questions that affect the people in this industry that I work so hard to support so they can support themselves and their families. 🤷♂
Ja
I am an agent and u are right that a buyer will choose not to have to sign anything just to tour a property
NJ made it law to have a written agreement in place so doesn’t matter if you’re a Realtor or not.
This I like!!!
I believe what you’re saying makes the most sense. It’s an affront to buyers brokers trying to conduct their business. The majority of my business comes from NYC co-ops. Most co-ops require the seller to pay a flip tax back to the co-op upon sale. The vast majority of sellers who have owned their units over 7 years have equity in them. Having the buyer now paying the broker to get to the purchase is like paying the flip tax twice. The idea of a first time homebuyer needing to now come up with more to purchase, would not allow them to compete with those who can.
When will we know if Colorado's regulators win their disagreement with this NAR Settlement? And if Colorado NAR members are waived from doing the buyer requirements?
This has already happened and NAR responded and said the settlement doesn't trump local state laws.
AND SO therefore... MR Mrs Lawyer in Missouri, how again have you HELPED the public?
Not at all. They helped themselves to $700+ million
Although I agree initially with your sentiments, ultimately, I like working under a coat of ethics system, and I believe that being a member of NAR puts us in a more professional realm. The issue is like you said the public has no clue what the difference is and this all goes back to the fact that I believe buyer broker agreements are actually a good thing because it forces us to level up and be much more professional. Remains to be seen what NAR does in the Future.
I was going to say... what does that matter if the public doesn't even know it or know the difference between a Realtor and regular every day real estate agent?
Ya I’m quitting real estate they just ruined it and made it so much harder man. It really sucks
Unfortunately many are going to go that route
I think we have to step back and def take a look at NAR and it's place in our world.
Serious question: does anyone here sign a legal agreement, outlining remuneration, with a car salesperson before they even know what car they may buy?
In Florida you have to have a license to show properties so it falls under brokerage duties.
My first thought was to join a brokerage not in NAR. They way they have mad things is not only harder on us but is not in the best interest of our clients. Love this. Thank you
No one is talking about specifics about what these agreements need to say. Maybe best proposition is buyer will pay realtor $150(maybe $200) for each home shown. Buyer will pay realtor $2000 to complete paperwork on closing. That's $200/hr for up to 10hrs of work to complete the paperwork. Not bad money. Agreements need to have time limit 3-6 months with a clause either side can terminate with some 7-30 day notice.
The agreement can be only for one showing. So, this really isn’t an issue!
I’m from Wisconsin and we practice having a signed buyer agreement before going out regularly so it doesn’t feel much different here.
Sounds like it's already become the norm there. Thanks for watching!
Great questions and valid concerns Jared. It's new and there will be a lot of ongoing questions, concerns and debates for the months/year ahead. There will be a lot of hurdles in the upcoming weeks and months as is the case with any major change in our businesses, but when the dust settles, the Pro's will rise to the top and the weak will leave the industry leaving more business for the Pro's. Yes there will be friction, just as there is when you compete for a listing and your value is challenged and the conversation involves services, commission, expectations and results, and this is when the professional Realtor steps up. The sale starts when the customer says "No". If you demonstrate your value, the consumer will have no problem signing a contract, whether it is a listing contract or a buyer contract, but if you have no value, no one will sign a contract. The advantage of a Buyer Contract is that the term can be for a day, week, month or months, so the Buyer can test out your services. Most importantly, the Buyer contract sets out the parameters of the relationship between the Buyer and the Agent and the obligations they have to each other for the term of the contract. The contract provides the Buyer with a peace of mind that the Buyer Agent they contract with will be operating under their professional Associations standards. If I want to invest $1M, do I choose the Broker who has no contracts, no standards and cannot demonstrate their value, or do I select the Broker who must adhere to their regulators standards, has proven value, and is under contract to serve me as mandated by their Association ? Food for thought from a Canadian Agent perspective. We have been mandated to use Buyer Contracts since 1995.
Agreed
Absolutely agree in that the consumer doesn't care and just wants to see the property without being tied down to a contract. In contrast, would love to hear what you believe the current benefits of being a NAR member are at the moment?
That's part of me making this video. I'm searching for the answer to that and I'm sure I'll come up with some answers but wanted to hear from everyone else as well.
You always have such great information to get us to think from the consumer perspective. Thank you for being a champion for the industry!
100% agree. The only thing WI did so far was create a "Pre-Agency Agreement." BUT, we STILL have to have this signed BEFORE letting a Buyer in to a home.
Not in this market, unless there is a strategy shift in areas like North Myrtle Beach, SC, where there are some really nice MH communities where homes the same size as a condo can possibly be found, completely remodeled, for $125,000 or possibly LESS!
THESE are the communities which should be aggressively marketed to first time homebuyers. Forget mortgages! Forget HOA's! Go the "friends and family" route to get the money together to BUY OUTRIGHT, and then NOT have to worry about a foreclosure!
Realtors can "cobble together" a few sales in these communities, to get the commission a lot faster than they would on a $400K sale where people have to finance!
Thank you for your videos & messages.
Thanks for watching!
As a realtor, Fuck NAR!! The MLS is a necessary tool I need to do my job….it’s an unfair conspiracy that my local mls (smart mls) requires me to be a member of NAR to use the MLS !
I made a video about this on Instagram today @jaredjamestoday
Jared, you make sense. This reminds me of our actual license from each state. (65% Federal and 35% State rules/agency/representation)
Showing a home is an agent's duty! WTH do you think you get paid for? Since the internet started hosting listings and virtual tours, I can screen what's available and don't even need my agent until I want to get inside a property. I do what used to be half the main job of agents a couple of short decades ago. The fees need to fit the actual value of the services provided and they have been too high for too long. The industry failed to reduce the fee percentages when prices spiked and it chose to run on greed. That's why corrective lawsuits and laws exist.
Then you are open to these stupid lawsuits if you are not part of NAR. The liability?
Technically you are always open to lawsuits. That's how this whole thing started. And if the industry as a whole keeps up the practice of broker to broker compensation, the attorney's are coming back for round 2. Mark my words.... It's sickening.
All parties (buyers, sellers, their agents) are adapting to the rules, too early to conclude anything now.
You really put some things into perspective. All the more reason why, as much as I’ve enjoyed working with buyers (most of them), I don’t want to work on the buy side anymore; just refer them out to agents who are tougher than me, lol!
That's def your right as an independent contractor.
Finally some folks speaking up! Hopefully more states to follow so consumers are protected!
Two Michigan real estate brokers and an agent have filed a class-action antitrust lawsuit against national, state and local Realtor associations challenging the requirement that they belong to the trade groups in order to access the local multiple listing service.
The real estate professionals decided to file the suit after the National Association of Realtors came to a proposed settlement of multiple antitrust lawsuits, whose rule changes the pros say will harm agents, brokers and consumers.
I did a video on this on Instagram today @jaredjamestoday
I am getting ready to start my next prelicense class and previously I have emphasized the REALTOR membership, state and local- the Code of Ethics etc. But as I prepare to teach the upcoming class this will certainly cause me to think about delivery of the information. Thanks as always Jared!
Thanks for watching! And I take no joy in asking these types of questions...
I couldn't agree with you more.
Thanks for watching!
EXCELLENT-EXCELLENT-EXCELLENT - You are so right!
Thanks for watching!
What happens if you are an MLS participant but NOT a Realtor, from an MLS that is not board related, must you aslo abide by these rules beginning AUgust 17th?
Only MLS’s that at associated with a Realtor Association have to follow those NAR Mandates. MLS’s that are independent or broker owned are not governed by NAR.
Depends on the local board or MLS rules.
Hi Jared. Forgive my ignorance, but I'm just a little confused. I'm a NAR agent working under a NAR member brokerage (CA), but our brokerage gives us all the option of being just a licensed sales agent vs a realtor. I can still have access to MLS regardless. So, if I terminate my NAR membership would that be the loophole to these new rules? Or, am I still expected to follow the new guidelines as a non-NAR agent under a NAR member broker?
These rules are only for NAR dues paying members who are a part of an MLS
Interesting! I had not thought about the rule only applying to NAR members. Thanks for the information.
Thanks for watching!
I am not having a problem getting buyers to sign before they see a property. It does take a short introduction and quick presentation as to why I need them to sign, and if they are uncomfortable signing a buyer agency agreement, there are ways to get what you are forced to do in NC (sign before showing) and relieving buyer apprehension in signing, e.g. sign for only that specific property, or signing for a 1 or 2 day time period (I usually don't do less than a week, and that has not been a problem.)
Has buyer agency before showing been a rule there for a bit? Buyers may be used to it. Let me know!
The non-dues paying agent can't open a Supra lockbox. That's a NAR and MLS thing. Correct?
If not a member of NAR, we cannot access my local MLS. Supra system is an additional fee, outside of MLS access fees.
some agents might put a lockbox on a home- that is a non supra system. That said, most use the supra system and pay the $17 a month to have their electronic Agent code work to gain access.
Wouldn't leaving NAR just open us up to other lawsuits for the same thing without the protection NAR gave us?
They would have to go after individuals and not the overall organization.
It sucks, even before the NAR settlement Oregon set regulations that January 1, 2025, buyer representation agreements would be required for everyone.
Difference between a Realtor and a licensed agent is "code of ethics" from my understanding. Yes, the NAR but the ethic is super important, right?
How important is it? If I need to be bound to code of ethics, am I really that ethical? I don't need to be told to be ethical or practice business the right way regardless of what organization I'm a part of.
@@JaredJamestoday I hear you, I'm was just saying that is what I talk with client about. Realtor or just a licensed sales person are not the same. One has given an oath to the code of ethic. I believe exactly the same as you and questioning the NAR.
You don’t need to pay dues to be ethical. 😂
NAR really screwed the brokers and agents...they never should have settled. They should have appealed and fought for us. Instead, they made things exponentially worse for the consumer.
The attorneys were going to litigate NAR into bankruptcy and then still come after it's members. No win either way. The corrupt ones were the attorney's on the other side.
Could the DOJ overrule state laws?
Of course.
it is required for my MLS access.
Then buyers will skip over buyer agents and contact the listing agent directly.
Great points - and so my thoughts will be what advantage is there to pay all these dues to NAR for membership - but then will our Broker and local Associations require membership of NAR - I can't wait to see what happens - before I retire! LOL I don't think the consumer is going to give a good hoot as long as we get them in the homes of their choice! Real Estate Agent or REALTOR - yes I'm a Realtor for over 25 yrs.
With this mornings news of Sotherbys in MI filing suit with NAR, MAR and their local association I think we will start seeing more retailiation against the settlement. I felt from the beginning NAR through us REALTORS under the bus. We can't do business without the MLS and are not allowed to have another avenue to convert to. We are all going for a ride, time will tell.
I did a video on this on Instagram today @jaredjamestoday
I'm a brand new agent....crappy times
You'll be fine. If anything you never got used to the old way. I've got my son getting into the industry as well. Your future is bright if your future is bright. It's about you, not the rules 🙌🏼
Don't worry!!! I got in during the short sale fiasco, those were "crappy times" and since it was all I knew, for me it was just business as usual.
You'll be ok!
So this means non-NAR members can still list a home with 5-6% ? Correct Jared ?
Biggest issue of dropping NAR would be getting access to the homes for sale and showing the properties. Not sure how that will play out.
That's the whole "must be a part of NAR to join the MLS" thing. I think that might be an upcoming legal battle as well unfortunately.
If only we didn't need the MLS. Without being a member of NAR I effectively can't do business. I would even need to leave my brokerage of 17 years because being a member of NAR is a requirement there. The whole thing is a mess. The first domino to fall to go back to the way things were would be getting rid of the death grip the MLS has.
The next domino is that tangled spider web of forcing membership on independent contractors in a free society
NAR should have NEVER settled. It's time to set up an alternate MLS.
Legislation in CA is expected to become law Jan 1, 2025 will require all licensees showing a buyer any type of property will be required to have a written agreement with that buyer prior to the showing.
If CA legislature is requiring this, you know it’s written by morons.😂
Not surprised 🙄
How hard is it to switch?
Switch to what?
Forcing a buyer to sign an agreement up front will not go over very well. Something just don't feel right about this. So much for keeping your clients best interest at the forefront. This requirement has us getting a personal guarantee of payment from them up front.
In WA State, our WAC effective January this year states, “ A firm must enter into a services agreement with the principal before, or as soon as reasonably practical after, its appointed broker commences rendering real estate brokerage services to, or on behalf of, the principal.”
The as soon as reasonably practical after rendering real estate brokerage services gives us some flexibility here too in WA.
Yeah I like that. That was Colorado's point as well.... touring a home wasn't a brokerage duty so it leaves some wiggle room. This is going to be interesting for sure.
Go ahead and take the compensation off the mls but why the signed buyer agreement before showing a house? That should be a decision between the agent and the buyer. Don’t understand this part of the ruling at all.
Makes zero sense and certainly doesn't play to how relational this business is.
My understanding in reading some of that article was the Colorado Agent non-Realtors don’t have to but the Realtors do. Is that not correct? Also does it matter that the law says you DON’T to do one instead of “you CAN’T do one”?
No. Colorado was about their Realtors. That's why NAR commented on it and said that local state laws trump their settlement rules.
I took NAR’s comments to mean other agents and not realtors. That article states “ Buyers who want a broker representing them as a buyer agent do have to sign a buyer representation form with them. But Colorado law does not require buyers to sign an agreement for broker compensation before touring a property.” Which is a little confusing because they dont say “Colorado buyers” So it’s more like the realtor is still required to provide it but you can’t control the consumer if they don’t want to sign it and therefore you can still tour the house since you don’t need an agent in CO to your a home. Please note in not trying to be argumentative. Just trying to make sure I understand. Have any Colorado realtors made mention of this? I’d love to hear their take as well.
I do not think it was ever worth it for Real Estate Agents. Prior member of NAR for 26 years. Way too political and surely as is obvious, not in our best interests. Also, you'd think they would have protected us too, not just the supposed consumers. They obviously don't care about consumers as they turned a blind eye on interlopers such as Blackrock come in any buy up multiple s.f. homes who were then turned into rentals. They did not protect the buyers and sellers in that game of shame. Obviously, they don't want people to own their own homes anymore or the land they sit on. So goes that American dream full of b.s. We never actually own it anyway. As you know, it can be taken away by default on mortgage or taxes or by eminent domain. That lawsuit out of MO and NAR settling instead of protecting Realtors and actually all real estate agents as the word Realtor means nothing as they surely weren't protecting their members as is glaringly obvious. Over all these years, exactly how have they ever protected buyers and sellers and from whom?
I think this is the way of the future.
Going to be interesting for sure
Why can’t we just use one of the forms that allows us to show for now without any commission? Isn’t that the same? Then as what a real estate agent would do?
I would be doing a touring agreement or non-exclusive agreement all day long and trust my relationship with them would be stronger than any contract.
@@JaredJamestoday If you do the touring agreement or non-exclusive without commission to show the property are you going to do a new agreement before you write an offer so you can get paid?
Ohio Legislators passed that all licensed agents must have a buyer agreement signed before showing a house.
I just don't see how that is good for buyers. That's what happened in Colorado and they had so many complaints from buyers who felt like they were forced into agreements they didn't feel comfortable with, with agents they hadn't even gotten to know.
Same in Virginia - for decades
I agree 100%
Thanks for watching!
I think they are making us at a disadvantage being a Realtor :(
I hope things turn around because I'm rooting for them and I take no joy in having to ask these types of questions.
Have had this thought myself but it is quickly followed up by a concern regarding the level of risk a non Realtor/Real Estate Agent has of being sued in this post settlement era. Having said this I've done no research on what protections this DOJ/NAR settlement currently offers Realtors or what risks are now part of the non Realtor world but I'm guessing you have thoughts? I'll lazily learn from you.
I believe you can show a buyer a home if they are a customer (unrepresented). You do not need anything signed if you show the property to a customer/unrepresented.
In Maine, this is not true. We have buyer agency and transaction brokerage - both have agreements showing expected compensation to the agent. One or the other has to be signed prior to showing a property
Different in every state.
What NAR needs to do is advocate for buyer agreements to be legally required for all real estate licensees to level the playing field.
Potentially but I think that is a step in the wrong direction. Yes it levels the playing field but a buyer shouldn't have to sign a legal document to tour a house and begin the steps towards finding the right agent. Just my opinion.
You belong to an organization that broke the law.
I’m not saying you’re all criminal.
Ummm that's not true at all... what law was broke exactly?
Spot on 100% …maybe you can speak to why it is in the agents interest to allow MLS to share listing info with Redfin / Zillow
That doesn't bother me as much as it does some just because I do believe in true transparency and I do think the consumer should have access to that info in a free market. It's up to them where they go for it.
Hey Jared, that's a great point! So now, if we (as agents) don't want to be part of NAR, will our local MLS force us into paying the fee? Our board has it as part of the invoice that gets sent out every year. I'm sure they take a portion of that as a "handling" fee...right....so if they do allow us not to pay the fee to NAR, then it's possible our yearly board dues would go up because they've just lost a revenue stream. I don't know about the rest of the country, but I don't really see the need in having a local MLS anyway. The last I actually went to the local board was probably 3-4 years ago. Our data is held with a separate company. So why couldn't we contract with that company and then we could excluded the local board, Zillow.com, Realtor.com, etc....because the person that holds the data may not have a contract in place with those types of companies. See what I mean? Kind of like take our industry back.