The NAR settlement has come to much of a shock to many a broker. I believe if you have been in the industry long enough you should know that real estate is ever evolving and at times many of those that have survived dry seasons have done deals that are not your conventional deals. Let's also add that we have learned to resell our value to for sale by owners and even current clients, outside of MLS.
I believe this is actually going to help current homeowners and may entice them to list their home. Which is a very good thing for the economy and new buyers entering the market.
As far as how much they are saving that is a very subjective question as there are deals all over the country that can vary from very small maybe $50,000 to much and much higher and even then those deals are negotiated differently.
I actually support the ongoing settlement. I don't agree on the argument that lead to it but I do believe this is beneficial to the real estate industry in the following ways: adding more inventory we didn't have before, having more seasoned veteran agents that know what they are doing. That not only offers protection to the consumer but also to us as real estate agents. I also support the fact that we can create our own incentives to buyer agents outside of the MLS.
The downside, well its obvious; many brokers base their business off buyers and are not equipped to handle negotiating listings so that will mean they will need to learn to cultivate sellers or leave the industry even if it's part-time.
This settlement is not saying that owners can't pay a buyer broker; they are simply stating it can't be advertised on MLS. Owners need to be reminded that if and when an offer comes from a buyer broker (which is a most likely) if they really want to sell and use some logic (provided the deal makes sense) the buyer broker will need to be compensated; nonetheless.
Another point to the settlement is now all brokers will be required to have a signed services agreement with their buyer clients. Something some brokers have shied from doing in the past but yet very important. Service agreements spell out what to expect from your broker from services to fee arrangements.
Unlike what President Biden reported earlier when this was all settling back in March of this year; real estate commissions have always been negotiable and like anything they are tied to consumer demand. Commissions of course can always bring savings as anything can in a deal but the fact is brokers are needed in deals and most consumers want to deal with a broker when buying or selling unless they are of course a seasoned investor. Not everyone is a seasoned investor.
The issue with the costs of the housing market rising is not one that has been caused by commissions but rather one that is caused by supply and demand the the lack of government support and regulation to keep it affordable to Americans around the country.
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