On the CA RPA both sides percentages/commissions were on the document and when you went to go over the RPA with the buyer, that was discussed. CA is so strict and has so many forms, and transparency items, that I don’t see how this blew up so much. But, change happens and we all need to adapt. Hopefully, CA doesn’t go nutty with a ton of new pages on all of their contracts. It is hard enough for us to keep up, let alone the clients(which then you are going over step by step because they certainly aren’t reading it). I love eXp’s short and clear forms. Way to go eXp. Thank you for all of the great information. It was very helpful. There are so many really great platforms out there, like BAM and eXp ,that are giving out such great information on all of this(knowing that things will definitely be altered and changed as we all navigate through this). Thanks again.
So negotiation of buyer agent commissions, totally understand. But if you do one number for somebody another number for another, and you don’t have a standard, could you then be considered being discriminatory or doing things differently for one group of people but not another. I feel this again opens up a slippery slope.
You are totally correct. We had a long discussion about this. If you take a BRA (nice acronym) at 10%, but then 50% of the time the seller won't agree to 10% and will only pay 9.2% and you reduce your fee 50% of the time. Well then, those other people who paid 10% can say you didn't do your best job for them and if that person happens to be in a protected class, then BAM! These vultures who sued will be right back on us. They are looking to sue again.
Poor buyers-affordability, down payments, high interest rates, closing costs, home owners insurance, and now our fee(on top of high prices for everything else). We shall see how this all pans out. Luckily, rates are slowly creeping down, inflation is under control, and home prices are stabilizing. CA buyers are in for a wild ride, that is why we are so important , so they have a trusted resource in their corner and someone that has their back.
Will the Buyer's bank finance a Buyer commission or does the Buyer have to come to the closing table with extra cash to pay the commission?........since in the past, the Seller pays the commissions so it's not an issue??
silly question, but is a Seller able to advertise through other portals that are not a recognized MLS. Such as sign riders, and or other platforms if they chose to on their own
It's such a shame NAR couldn’t defend itself against this lawsuit. I have a feeling this will bring more lawsuits for buyers who didn’t use a real estate agent or lawyer when purchasing a property
Buyers may not be able to buy a particular homes if sellers don’t offer concessions, but then the sellers are going to turn around and become a buyer, and they are going to have to go through all of this on the buyer side. Yikes!
What if we go under contract and the seller wouldn't pay for buyer broker commission and the buyer says they can afford it but at the end of the transaction they can't. What happens? Nobody wants to go to court and sue buyers/clients. That's bad business.
I don't know where you live, but in Texas, we have 2 new documents: Compensation Agreement Between Broker's and the Addendum for Broker's Fees. The first one registers the buyer agent's client with the listing broker for the compensation to be paid BY THE LISTING BROKER ( which who has paid it all this time - not the seller) and the Addendum is for how much the BAC will be. You have to have those two docs accompany any offer that's being brought to the listing agent. At the time of closing, title will ask to see the Buyer Rep Agreement and whatever that shows the percentage to be, is what the BAC will be, regardless of what the listing agent agreed to pay the buyer agent.
On the CA RPA both sides percentages/commissions were on the document and when you went to go over the RPA with the buyer, that was discussed. CA is so strict and has so many forms, and transparency items, that I don’t see how this blew up so much. But, change happens and we all need to adapt. Hopefully, CA doesn’t go nutty with a ton of new pages on all of their contracts. It is hard enough for us to keep up, let alone the clients(which then you are going over step by step because they certainly aren’t reading it). I love eXp’s short and clear forms. Way to go eXp. Thank you for all of the great information. It was very helpful. There are so many really great platforms out there, like BAM and eXp ,that are giving out such great information on all of this(knowing that things will definitely be altered and changed as we all navigate through this). Thanks again.
So negotiation of buyer agent commissions, totally understand. But if you do one number for somebody another number for another, and you don’t have a standard, could you then be considered being discriminatory or doing things differently for one group of people but not another. I feel this again opens up a slippery slope.
No, all commissions have always been negotiable and there's never been a defined 'standard.'
sounds like you'd prefer we set a standard commission for both sides....
You are totally correct. We had a long discussion about this. If you take a BRA (nice acronym) at 10%, but then 50% of the time the seller won't agree to 10% and will only pay 9.2% and you reduce your fee 50% of the time. Well then, those other people who paid 10% can say you didn't do your best job for them and if that person happens to be in a protected class, then BAM! These vultures who sued will be right back on us. They are looking to sue again.
So grateful for eXp and all the updates. What a company!
Poor buyers-affordability, down payments, high interest rates, closing costs, home owners insurance, and now our fee(on top of high prices for everything else). We shall see how this all pans out. Luckily, rates are slowly creeping down, inflation is under control, and home prices are stabilizing. CA buyers are in for a wild ride, that is why we are so important , so they have a trusted resource in their corner and someone that has their back.
What a great company eXp stays on top of it 🔥
Will the Buyer's bank finance a Buyer commission or does the Buyer have to come to the closing table with extra cash to pay the commission?........since in the past, the Seller pays the commissions so it's not an issue??
silly question, but is a Seller able to advertise through other portals that are not a recognized MLS. Such as sign riders, and or other platforms if they chose to on their own
Great question
It's such a shame NAR couldn’t defend itself against this lawsuit. I have a feeling this will bring more lawsuits for buyers who didn’t use a real estate agent or lawyer when purchasing a property
I thought the law says the buyer agreement can only be for a max of 3 months?
Buyers may not be able to buy a particular homes if sellers don’t offer concessions, but then the sellers are going to turn around and become a buyer, and they are going to have to go through all of this on the buyer side. Yikes!
The buyer can always just work with the listing agent. Consumers are not going to NOT buy a house because of agent's commission!
Client vs customer. There is a distinction in Ga.
Awesome information!
Great video. Thank you.
What if we go under contract and the seller wouldn't pay for buyer broker commission and the buyer says they can afford it but at the end of the transaction they can't. What happens? Nobody wants to go to court and sue buyers/clients. That's bad business.
I don't know where you live, but in Texas, we have 2 new documents: Compensation Agreement Between Broker's and the Addendum for Broker's Fees. The first one registers the buyer agent's client with the listing broker for the compensation to be paid BY THE LISTING BROKER ( which who has paid it all this time - not the seller) and the Addendum is for how much the BAC will be. You have to have those two docs accompany any offer that's being brought to the listing agent. At the time of closing, title will ask to see the Buyer Rep Agreement and whatever that shows the percentage to be, is what the BAC will be, regardless of what the listing agent agreed to pay the buyer agent.
Thank you thank you
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