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

[Terrel L. Shields]

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

Again, on that point. Say you get the chance to list a very desirable home and you know you have buyers wanting something similar. Why share it? You spin a yarn around how an exclusive will make you work extra hard to sell it. They agree and you have a slam dunk sale in 3 days. I just finished an estate where the lady died 32 days ago. And within a week the heirs were already getting unsolicited offers to purchase the home. That's not a listing you'd want to share. Bingo, you get the whole 6%.

 

[Terrel L. Shields]

BTW, why the L is this thread in the Gym?

 

[Mejappz]

Realtors are not happy.

 

[Ricky LaFleur]

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.

They will perhaps, list with private MLSs or may list on Zillow and not Redfin, or on Trulia

I was surprised to see both Zillow and Redfin stocks taking a hit on the release of that article. I'd think they could really become an "online realtor" for FSBO clients and at lower rates. Like you said, make real estate more liquid.

Why share it? You spin a yarn around how an exclusive will make you work extra hard to sell it. They agree and you have a slam dunk sale in 3 days.

I see agents do this where it pops on MLS and is pending on Day 1 with the Selling agent also as the Buying agent. I'm still not convinced that an agent can really be representing both sides' best interests. But I guess they didn't feel to the need to ask me what I thought about it either

 

[Mejappz]

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.

I think you are right. This may turn into the old days. When you had to call Realtors to find the property's condition because there are no photos, or the data and photos will be scattered all over the place. One thing that has not been mentioned is that this may end Fannie and Freddy's "modernization" plan. How can they go forward when they don't have complete data? It may force the AMCs to change their business model or go out of business simply because the appraiser will have more work and want more money for that extra work.

 

[berniek]

I don't think much will change.
We will have a menu of contracts approved by the RE commission. The seller and buyer will decide how they want to be represented, to what extend and for how much, and the agent has to negotiate for his commission.
Appraisers will get the financials disclosed in the contract, which is a material fact.

 

[Fernando]

Years ago I got ripped off as buyer's agent. I got a 2.5% commission. I thought I was getting even split.
Later I found out that the listing agent got a bigger commission for herself.
Seller found out and was upset and took it out on my buyers like taking away the mirrors in the bathroom. Made me look bad.
Since then, I make it a point in contract for buyers that cheapskate sellers leave mirrors in the bathroom if personal property.

 

[George Hatch]

I think what the buyers and sellers choose to do will come into play. If you're selling you want exposure. If you're buying you want access and information. The appraisers will be able to tag along with whatever means the sellers are using to advertise and the buyers are using to shop.

I don't see how the agents end up unilaterally dictating terms to the buyers or the sellers. I don't see how the transparency genie gets stuffed back into the bottle.

 

[berniek]

Realtors can't work without the MLS, it is still the #1 marketing tool. (unless we go back to the 6 in.thick old MLS books.

 

[RCA]

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.

1. They only have to reduce the fees by 1/3 or 6% down to 4%. Some agents sell homes for 2% or less (but then can't use a NAR MLS service due to the low commission).
2. The seller will save some money.
3. The broker is going to have less funds to pay third party help like photographers and staging companies - and they will quite possibly suffer quite a bit.
4. I don't think it has any significant impact on competition for the foreseeable future.
5. Of course listing agents will see their revenue drop.
.....