Do I Need To Pay The Buyer Agent? Post NAR Lawsuit Settlement

The National Association of Realtors (NAR) Lawsuit Settlement has many people asking, Do I need to pay the buyer's agent? or Who pay's the buyer's agent? The answer depends on if you are the buyer or if you are the seller, and what the initial agreement is on your listing/buyer agreements.
Not only will this video help everyone understand buyer's agent commission, but it will also help everyone understand the new real estate rules from the real estate settlement (NAR settlement). After searching for a good explanation online and not finding success in finding an accurate video, I've decided to make one explaining how real estate transactions will be moving forward; NAR lawsuit explained for realtors.
#Realestate #NARsettlement #newrules
DISCLAIMER: This is not personal advice for the viewer. Everything shared, comments, and questions are based on our personal opinions and have no reflection or representation from KWNSW and/or anyone involved. Rules and regulations can vary from state to state so please due your due dilligence and seek professional guidance from the appropriate professionals.
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[@rjm656]

As someone who just sold their home, I will say that comp for buyer’s agents will be going down. As you said, everything is negotiable, but “the customary rate” is akin to price fixing when every agent is being told to charge the same.
The other problem with the old system of telling agents beforehand how much they’ll get paid is that it creates a conflict of interest when an agent is being told they might get 3% for one house, and 2.5% for another. Some agents will definitely steer their clients.
What realistically should happen is buyer’s agents get paid like lawyers: Flat fees and hourly rates. Then there’s no games (or at least fewer).
Unlike lawyers though, real estate agents didn’t need 7 years of higher education to make $500/hr (what 3% equates to for a lot of homes and how little work it is compared to the payday). Definitely some bloat there.

[@elliotlowe1072]

Thanks for watching and your thoughts 🙌🏻 I agree with you, buyers comp (from the seller will go down, case by case but go down as a whole). As for the “customary rate” and the price fix, I agree with you there. Especially when brokerages can implement a brokerage minimum policy. Unfortunately, there are no rules against doing that.
As for getting 3% for one house and 2.5% for another house, (I don’t want to speak for other agents) my clients and I agree on a compensation structure during the consult/prior to the first showing. If the seller offers less than what the buyer and I agreed upon, the buyer will compensate the difference. I could see steering by the agents who do not do this beforehand.
Flat rates on the buy side wouldn’t be feasible for most agents. I can see someone trying to do it; however, it runs the risk of performing more work than it’s worth. As for hourly, it would cause unpredictability for the buyer’s final closing costs for agent services. Plus some agents would milk the hours. I can draft an offer in 3 minutes, another agent may take 3 hours… 🤷🏻‍♂️
As for your last comment, you’d be surprised how much someone is willing to pay for a product and service. So many factors come into play but the same way some drive a 100k car while others drive a base model civic; they both get you from point A to point B. To each their own where they find value.
🙏🏻Thanks again for watching and your take. Always appreciate understanding other’s takes!