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

[J Grant]

???

One question: After July, 15, what will happens to all our comps? If we are doing a purchase appraisal in late Aug. Some comps will be in June or July, some comps will be in Aug. How appraiser shall do the adjustment between these comps due to realtor's commission difference? Any thought? or just go vacation from Aug to Oct.?

People are way overreacting. Tehri s NO change officially in RE commissions !! This is BS about a sea change, , as explained many times, very few true buyer-broker arrangements exist, most contracts state a listing broker and a selling broker or cooperating broker

The main difference is the commission splits will no longer be listed on MLS. and so what -We were never in the commission business wrt appraisals, we are in the price business - what was the price- which could include a commission of any percent or no commission if sold by owner.

It is only if the terms of sale impact the price in any way above or below typical that we have to dig around and account for it, or not use that sale.

 

[J Grant]

Why would we need to adjust prices based on RE commissions? It made no sense before and it makes no sense now or going fowarrd.

 

[Sadie]

FHA has come out with an FAQ on this.

Under existing FHA policy, if sellers continue to pay buyer-side real estate agent commissions and fees as a manner of state and local law or custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other requirements are met.

So nothing is different. And as J Grant says, commissions never really affected us.

 

[Surf Cat]

So nothing is different. And as J Grant says, commissions never really affected us.

Well, it's a change in the industry in which we delve in. For every action there is an opposite and equal reaction. What that means to appraisers is yet to be seen.

Just like appraisers who work for AMCs, newbie Buyer Agents will take a lower Commission of 1 to 2%. Until a model comes along where they are eliminated...like appraisers.

 

[Carnivore]

Maybe this could lead to forcing AMC's to break out what they receive and what appraisers receive of the total appraisal fee on the settlement statement.

 

[J Grant]

Maybe this could lead to forcing AMC's to break out what they receive and what appraisers receive of the total appraisal fee on the settlement statement.

That would only happen if appraisers or property owners who had an AMC do the appraisal bought a class action suit ( and prevailed )

Furthermore, the AMC breaking out what they receive and what the appraiser receives won't solve the problem; except in the most egregious splits. Appraisal fees are in the hundreds of dollars and there is not enough to split on res work, which impoverished appraisers. Contrast that to RE commissions which are in the tens of thousands of dollars.

RE commissions are also more immune because the buyers and sellers who engage RE brokers and agents have no constraints on them, whereas the ordering of res appraisal is limited due to regs

The AMC has to get away, 100%, from being compensated froma a split of a measly low appraisal fee , hundreds of dollars, not thousands, there is not enough to split esp now with inflation rising costs everywhere and still we have AMC's getting huge chunks out of a low fee to start with- the RE agents commissions are a world apart in of scale of $.

 

[David S]

How do you, or anybody, know that from now on, most sellers won't can't [pay buyers s agents' commissions?

And again, whose agents never were true guyer 's agents -they bought the buyer to the property, but from day one, it was clear they would be on the seller agent line on the contract; that is probably what some buyers sued about but this settlement IMO does not fundamentally change anything.

Chatted with a couple of realtor friends recently. They said the new rule will make a huge impact to the RE field. First block is: after July 15, all brokers require their agents to sign an agent representative form with every buyer. Most buyer is unwilling to sign this and said why I have to sign this form? I can free to choice any realtor to be my agent, right? Or just deal with seller's agent (listing agent) directly. Most buyer's agents will be gone?

 

[J Grant]

Chatted with a couple of realtor friends recently. They said the new rule will make a huge impact to the RE field. First block is: after July 15, all brokers require their agents to sign an agent representative form with every buyer. Most buyer is unwilling to sign this and said why I have to sign this form? I can free to choice any realtor to be my agent, right? Or just deal with seller's agent (listing agent) directly. Most buyer's agents will be gone?

There never were many true "buyer agents", aka agents retained by the buyer and paid by the buyer.
Most agencies had their agents sign a form with buyer at time of offer wrt who the agent represented. So now it will be required. Most were doing it anyway.

Look up the NAR website, wrt the changes.

 

[J Grant]

NAR reached a $418 million settlement to be paid out over the course of four years last week, as well as the addition of two new rules: listing agents are no longer allowed to advertise agent compensation on the multiple listing service, and realtors are required to enter into a written agreement stipulating services .

i fail to see where the above means a see change in anything wrt the amount of the commissions.

 

[David S]

There never were many true "buyer agents", aka agents retained by the buyer and paid by the buyer.
Most agencies had their agents sign a form with buyer at time of offer wrt who the agent represented.

Look up the NAR website, they say the only change/main change is the commissions will no longer be listed on the MLS

But in real RE world, most agents deal with buyer only, never do the listing side business, especially for the new agents.