Key takeaways from the NAR settlement with James Kleimann and Brooklee Han
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- Опубликовано: 20 сен 2024
- HousingWire's Managing Editor James Kleimann sits down with Reporter Brooklee Han to discuss the key takeaways from the NAR settlement.
Here's a glimpse of what you'll learn:
- Key Takeaways
- Breaking down the $418 million settlement
- Who isn't included in the settlement
- A possible workaround in the lawsuit
- The settlement is not technically a guarantee. Brooklee shares more from her call with Michael Ketchmark
- Insights on whether the DOJ will be satisfied with this settlement
- Reactions from agents so far
Enjoy the episode!
James, your description at the end is part of the problem "oh, well, the sellers going to pay for my compensation". The seller has NEVER paid the buyer agent commission. The listing agent agrees to share THEIR commission with a buyer agent. If there is no buyer agent, the listing agent keeps the entire commission. If an industry professional like yourself cannot articulate how the current system works, it's no wonder that NAR lost this case. Sad day for the real estate industry.
Exactly. This industry should have cleaned house before the incompetent trade group leaders poorly defended themselves against these silly lawsuits. All around failure from top to bottom. Sad.
For sure…poor wording. Translated = “fck you! Pay me!”
Buyer agency is dead. 99.9% of buyers will just contact the listing agent directly rather than pay a commission out of pocket to an agent. Buyers don’t like signing buyer rep agreements!!!
Agreed. Many brokerages are trying to put out the fires now with their agents by offering new classes on buyer brokerage. Imagine buyers, who many times can’t rub two nickels together are asked upfront by their agents to front an extra 2 or 3 percent at closing to pay agent?
I wouldn't say 99.9%. I think in luxury markets where buyers are paying cash, they will be paying for their agent's commission. In most cases, there will likely be an addendum with an offer that requests the seller give a percentage of the sale to the buyer and the buyer will be required to pay their agent's commission from that, per contract.
@@antcaruso3465 Buyers who can't rub two nickels together, should NOT be buying a home.
I agree it will be difficult, however, going straight to the listing agent creates dual agency which we do have in NC. We have always used buyer agency agreements ( since I’ve been licensed). Dual agency is not a good situation , in my opinion, for a buyer to be in. I know from personal experience when i purchased my home and didn’t know better . I called the agent on the yard sign and had no representation , no guidance on inspections , lender referrals , appraisals, etc .
Buyers broker agreement will now be mandatory. Buyers agents should start asking for an upfront retainer and charging hourly. You know like a lawyer. Entry level buyers will be the most hurt by all of this. None of this hulabaloo is helping the consumer in any way.
We cannot offer compensation for broker fees in the remark section on MLS fee per lawsuit ..
IMHO - I believe the DOJ will yet again file a letter of interest with the court - because based on what I am seeing and what they are wanting to see - this settle doesn’t go far enough - this settlement only provides the offer of compensation in MLS - the DOJ want predetermined and or fixed offers of compensation by a seller or the agents to be illegal and eradicated from our industry - they are ok with the seller paying the buyers agents commission they just don’t want it being “set” by the seller or the sellers agent - in their eyes what is best for the general public is that the buyers agents commission should Be solely determined by a negotiation between the buyer and their agent - that’s it - any short oh that is unacceptable - again just my humble opinion
Trying to improve an imperfect industry with rules that will make it worse for consumers. They need a history lesson on why the system is set up the way it sits today. Hint: buyers needed representation.
How will the DOJ get that, though? Agents work for themselves and any buyer or seller isn't forced to go into an agreement with any particular agent, and don't even have to use an agent AT ALL. That will be hard to enforce. They can't make agents work for less than they want to because they're independent contractors. That's like saying a painter, HVAC technician or handy man can't tell a customer up front what the fee for their work is.
How do people not see that under the current system, the Buyer pays both commissions?? it is the money they bring to the table that creates the Seller's proceeds!!
Ummm Ummm Ummm Ummm 🙄🙄🙄🙄 need to fix that if you are both doing media like this ... coach-able moment 👍
Too many “ah” and “um” filler words. Like every three words.