The 6% commission on buying or selling a home is gone after Realtors association agrees to seismic settlement

[edjr 5,567]

https://www.cnn.com/2024/03/15/economy/nar-realtor-commissions-settlement/index.html

Quote

 

The 6% commission, a standard in home purchase transactions, is no more.

In a sweeping move expected to dramatically reduce the cost of buying and selling a home, the National Association of Realtors announced Friday a settlement with groups of homesellers, agreeing to end landmark antitrust lawsuits by paying $418 million in damages and eliminating rules on commissions.

The NAR, which represents more than 1 million Realtors, also agreed to put in place a set of new rules. One prohibits agents’ compensation from being included on listings placed on local centralized listing portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers. Another ends requirements that brokers subscribe to multiple listing services — many of which are owned by NAR subsidiaries — where homes are given a wide viewing in a local market. Another new rule will require buyers’ brokers to enter into written agreements with their buyers.

The agreement effectively will destroy the current homebuying and selling business model, in which sellers pay both their broker and a buyer’s broker, which critics say have driven housing prices artificially higher.

By some estimates, real estate commissions are expected to fall 25% to 50%, according to TD Cowen Insights. This will open up opportunities for alternative models of selling real estate that already exist but don’t have much market share, including flat-fee and discount brokerages.

Shares of real estate firms Zillow and Compass both fell by more than 13% Friday as investors feared that lower commission rates for agents could lead to less business for real estate platforms.

In a 10-K filing last month, Zillow warned that, “if agent commissions are meaningfully impacted, it could reduce the marketing budgets of real estate partners or reduce the number of real estate partners participating in the industry, which could adversely affect our financial condition and results of operations.”

Shares of real estate brokerage Redfin also fell nearly 5%.

Meanwhile, homebuilder stocks rose on the news: Lennar shares gained 2.4%, PulteGroup shares added 1.1% and Toll Brothers shares added 1.8%.

 

 

More good news for housing. 

[RLLD 3,455]

I am NO FAN of realtors.....but I will consent that a "good" realtor can be worth the money.....    ones that really put work and invest in the sale of properties can actually spend a fair amount.

Now, this value is primarily attenuated toward a rather narrow band of consumer real estate. So the idea of their money-making system being held to account is something I think is overdue.

 

[Cdub100 3,381]

6 minutes ago, RLLD said:

I am NO FAN of realtors.....but I will consent that a "good" realtor can be worth the money.....    ones that really put work and invest in the sale of properties can actually spend a fair amount.

Now, this value is primarily attenuated toward a rather narrow band of consumer real estate. So the idea of their money-making system being held to account is something I think is overdue.

 

I read this a lot. I'm wondering how?

[edjr 5,567]

4 minutes ago, Cdub100 said:

I read this a lot. I'm wondering how?

I have a good one. Been working with her since start of 2020. She has looked at over 40 houses with me. I haven't bought a thing "through her" She is very patient, doesn't get pushy, does her research and has actually stopped me from putting in offers on a bad house that had septic issues, that she found by asking around. 

[BeachGuy23 512]

36 minutes ago, Cdub100 said:

I read this a lot. I'm wondering how?

I think they can offer solid advice on what they see as issues/positives with the property.  They should also be familiar with the area schools, desirability of the community, potential negative or positive local government issue, etc.

All in all though 6% across all price points is nuts and is about time it was gotten rid of. 

[RLLD 3,455]

44 minutes ago, Cdub100 said:

I read this a lot. I'm wondering how?

If your property is a "hot" one, has a desired location, then it more or less sells itself.  If your property is low value, you are really just waiting for someone entering the market to find you, IMHO that juice from the realtor is not worth the squeeze.

If you have a property that is genuinely better than its comps in the area, then the realtor is potentially useful.  They spend their own cash on marketing etc, and can offer some good advice on how you show out a property that is otherwise in "the crowd" for its unique qualities...

Other than that last example, the cost of a realtor is questionable across the board

[Hardcore troubadour 12,653]

As if a realtor is going to give an honest answer about schools. 

[Alias Detective 1,179]

Its like changing your own oil.  Some do it because their time is worthless.  others pay for these tasks so they can enjoy their time. 

 

Da fuq you all counting other people's money for?  As the ole' saying goes, if ya don't like the product don't use it.

[seafoam1 1,879]

12 minutes ago, Alias Detective said:

Its like changing your own oil.  Some do it because their time is worthless.  others pay for these tasks so they can enjoy their time. 

 

Yeah, being smart, skilled, money conscious, a good mentor for kids, is way worse than watching reruns of queer eye for the straight guy like you do everyday. 

You should be proud. 

Focking idiot. 

[RaiderHaters Revenge 3,585]

That’s rough. It’s going to kill a big job market. Most realtors only sell 4-6 listings a year. 

[edjr 5,567]

4 minutes ago, RaiderHaters Revenge said:

That’s rough. It’s going to kill a big job market. Most realtors only sell 4-6 listings a year. 

Imagine how much they will lose in places like Beverly Hills  

[Gladiators 1,904]

4 minutes ago, RaiderHaters Revenge said:

That’s rough. It’s going to kill a big job market. Most realtors only sell 4-6 listings a year. 

All is good.  They can learn to code!

[Hardcore troubadour 12,653]

Am I getting any money back? I paid that 6pct a few times. 

[thegeneral 1,414]

6% to buy a house in my area that you go 20% over with no contingencies and then sell your house in one weekend with 10 offers to pick through did seem a little excessive.

 

[Baker Boy 1,485]

9 minutes ago, thegeneral said:

6% to buy a house in my area that you go 20% over with no contingencies and then sell your house in one weekend with 10 offers to pick through did seem a little excessive.

 

The seller pays the 6%.

[edjr 5,567]

37 minutes ago, Hardcore troubadour said:

Am I getting any money back? I paid that 6pct a few times. 

 you pay 3 to buy and 3 to sell, did you buy from yourself?

[thegeneral 1,414]

No more cookies at the open house?

[edjr 5,567]

1 minute ago, thegeneral said:

No more cookies at the open house?

Only the hottie that listed it.

[Cdub100 3,381]

2 hours ago, RLLD said:

If your property is a "hot" one, has a desired location, then it more or less sells itself.  If your property is low value, you are really just waiting for someone entering the market to find you, IMHO that juice from the realtor is not worth the squeeze.

If you have a property that is genuinely better than its comps in the area, then the realtor is potentially useful.  They spend their own cash on marketing etc, and can offer some good advice on how you show out a property that is otherwise in "the crowd" for its unique qualities...

Other than that last example, the cost of a realtor is questionable across the board

When I was looking in 2018-19 I used realtor.com and zillow. It showed me school rating and crime rates (I think they got rid of it because of racism). All the info I needed was available online.

[seafoam1 1,879]

Just now, Cdub100 said:

When I was looking in 2018-19 I used realtor.com and zillow. It showed me school rating and crime rates (I think they got rid of it because of racism). All the info I needed was available online.

I'm not sure how truth is racist. 

[Cdub100 3,381]

3 minutes ago, seafoam1 said:

I'm not sure how truth is racist. 

Me neither, but it is. “There was truth and there was untruth, and if you clung to the truth even against the whole world, you were not mad.”

[IGotWorms 3,315]

This will not “dramatically reduce the cost of buying and selling a home.”

Generally we’re talking a reduction of a few grand, probably not even that.

When you’re talking minimum 300,000 - 400,000, that’s barely a drop in the bucket.

Don’t get me wrong, I think the realtor commissions are often BS. Most of them don’t seem to do much of anything. Good ones are worth it imo but we’re talking maybe 10% of realtors that fit into that category.

Just saying, it’s not going to be a sea change other than there’s probably about to be a lot less realtors

[Baker Boy 1,485]

1 hour ago, edjr said:

 you pay 3 to buy and 3 to sell, did you buy from yourself?

That is how the commission is split, but the seller pays both.

[RLLD 3,455]

41 minutes ago, seafoam1 said:

I'm not sure how truth is racist. 

But it is.....