New nar rules for agents. will alternative models destroy the ease of appraiser getting that info.

[Tom D]

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 home sellers, 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.

 

[Elliott]

So who's going to show you homes ? You know if you don't buy a house, that person doesn't charge you anything.

 

[J Grant]

i might be missing something, but I do not see how these new "rules" will affect things much - there are very few buyer agents so a rule about an agreement in writing for that 1% so what - the rest sounds about what exists now - and I totally fail to see how not disclosing their compensation on a listing affects things, seems more secretive , not less so.

 

[Joe Flacco]

It won't be immediate, but over time, we are going to see a whole different transaction model emerge.

It is not going to be sellers pay sellers agent and buyers pay buyers agent. I don't see how the websites with all the eyeballs like Redfin and Zillow don't find a way to take advantage and monetize it down the road. Combine this with what ICE is doing on the mortgage side and the GSE's trying to get rid of appraisal and title, and real estate might one day be considered a liquid asset.

 

[Raven59]

1. Buyer agents must have a written representation agreement; this is nothing new; it is just being enforced rather than NAR advocating.
2. Compensation is no longer permitted in the MLS. All agreements are negotiated outside of the MLS.
3. Buyer concessions can be in the MLS.

It seems that buyer representation has been altered. The new policy implies that buyers who don't want to be clients would be accountable for scheduling their own appointments, and nobody would assist them directly, which means the buyer would be unrepresented. Apart from NAR's payment of $418M, I don't notice many differences.

 

[Terrel L. Shields]

Another ends requirements that brokers subscribe to multiple listing services

This I believe - been thinking about this all day- is going to prove to be a disaster for appraisers. For those of us old enough to remember when we trudged from RE office to RE office hunting sales...back in the good old days...well, with the future sellers being on line...but perhaps dark regarding sales where do we get info? A lot of brokers and agents will leave the boards and not list with the MLS. They will perhaps, list with private MLSs or may list on Zillow and not Redfin, or on Trulia but not Realtor.com. So how are we going to search? And how do we know we have all the sales?

And why would a broker even share a listing with another broker? The only ones they will list will be the hard ones, the trash ones, the ones that don't move. They will cherry pick the easy sales and keep in house. Probably have some crafty listing agreement with the seller that basically makes the listing exclusive with them.

We know the law of unintended consequences is likely to bite everyone - Broker, agent, appraiser, and yes, even the stupid buyers and sellers who think this will decrease the cost of commissions. I bet we might even see the return of the 10% commission as Agents employ auctioneers to handle tough sales. And this could mean a flat fee for the broker, 10% for the auctioneer and the seller paying a couple thousand cash up front for the advertising. That's the model in my state where an auctioneer has to be a broker or engage a broker to sell a house. So, the typical advertising fee and 10% commission will be added to the broker's charges.

 

[ucbruin]

"And why would a broker even share a listing with another broker? The only ones they will list will be the hard ones, the trash ones, the ones that don't move. They will cherry pick the easy sales and keep in house. Probably have some crafty listing agreement with the seller that basically makes the listing exclusive with them."

What would be the incentive for a seller to agree to limit exposure....

 

[Terrel L. Shields]

What would be the incentive for a seller to agree to limit exposure....

The coarse print giveth and the fine print taketh away

 

[ucbruin]

The coarse print giveth and the fine print taketh away

You mean unethical agents....

 

[Terrel L. Shields]

You mean unethical agents....

It's business. caveat emptor... Again, trust me this once. There will be unintended consequences and if nothing more than the appraiser will not be able to depend upon the MLS to provide a full list of all the sales that are happening. Who wants to join 10 MLSs only to find they still are only representing half the sales in your market...

Don't like Zillow? Think about having to monitor Zillow, Trulia, Realtordotcom, Loopnet, Redfin, Movoto, etc. for sales.

And that's another clusterf' to consider. I have a website who is listing me as "Jr." and using my address and the phone number is not my number and lists it as a cingular number. WTF? Is someone posing as me? Or just bad info... ps they have my email at tshields@naifa - I don't think so. Claim I have 10 aliases, and to top that off, I still get mail for my dead cousin - 9 years deceased - This is the kind of data we will get in the future? Welcome to AI.