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

[Bill75]

Realtors are not happy.

love it, and I'm a broker too.

 

[Terrel L. Shields]

I'm still not convinced that an agent can really be representing both sides' best interests.

In the old Firesign Theater "Don't Crush that Dwarf, Hand me the pliers" George Leroy Tirebiter is defending his son in court while also serving as the prosecuting attorney... Same problem.

 

[Tom D]

the problem for appraisers. will there be a fracturing of where the sold and/or listing data is going to be, or not be found at all. and if found, how much info will there be that we need. like said earlier, fannie is also going to be saying what da when it can't easily pull out MLS info like we have now. maybe the MLS will become cheaper, like a pay per listing, to keep what they have, or to get it all. this is like a convergence of uncertain and unknown existential posibility threats to our line of info.

cheaper appraisals, i think not. easy avm without having all that easily found data, think not. might save us, or just make us not wanna do them anymore.

 

[J Grant]

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.

But true buyer representation barely exists!
Maybe those few who thought they were getting buyer rep but did not initiate the suit, but a true buyer agent agreement is rare because a real buyer agent role means the buyer pays the agent and very few buyers want to fork out cash to an agent - what really happens is the buyer works with an agent who acts as a selling agent in a transaction , and while a buyer may think that agent represents them, the agent is really representing the transaction to get a commission - thus many agents sign a dual agency agreement and not a buyer agent agreement. So if now a buyer agent gets a written presentation, it clarifies it, but since so few people do it, it is m, IMO, meaningless.

So if all agreements on commissions are negotiated outside of MLS rather than a stated fee it might or might not change things - now a broker can charge 10% vs 6 % -and let a buyer haggle it down lol

Buyer concessions in MLS - idk what that means.

Basically, it is a toothless series of regulations IMO - might work out to some lower commissions if negotiated outside of MLS, in some cases - or not -

Appraisers were royally screwed by the HVCC wrt seeing it not allowed any longer for an individual loan officer to choose the appraiser because fo teh huge market power share it defacto delivered th to the AMC's who now had unprecedented leverage over the appraiser - that is not true in RE sales, where an agent or broker has tens of thousands of individual buyers or sellers to work within an area -l

 

[J Grant]

the problem for appraisers. will there be a fracturing of where the sold and/or listing data is going to be, or not be found at all. and if found, how much info will there be that we need. like said earlier, fannie is also going to be saying what da when it can't easily pull out MLS info like we have now. maybe the MLS will become cheaper, like a pay per listing, to keep what they have, or to get it all. this is like a convergence of uncertain and unknown existential posibility threats to our line of info.

cheaper appraisals, i think not. easy avm without having all that easily found data, think not. might save us, or just make us not wanna do them anymore.

will see, I see business as usual carried on in my area wrt brokers, agents and MLS- the only thing missing from MLS listings will be the commission, correct?

Zillow populates its data from teh MLS, not the other way around - will see of course, I agree if too many transactions become done without agents will make it mush harder o verify and get info - but all those agents and brokers are not going to lose their livelihood so fast either - they were not subject to , like appraisers were, a draconian shift in market leverage where suddenly only a few buyers exit for their services - there still maybe 40-50 brokers in a area with agents under them vs hundreds of thousands or even a million potential buyers ors sellers in that area, vs appraisers where the demand channel became narrowed down into the single or double digits -

 

[Mark K]

I suspect the new method will be akin to the buyer's agents including their commission amount that the seller will agree to pay in the purchase agreement. If anyone thinks the buyers will pay 3% +/- out of their pocket to their agent at closing, they are living in a fantasy land.

Line #350 on the purchase agreement...
"Other Conditions:" Seller agrees to pay the buyer's agent, Joe Smith, a sales commission of X% of the total sales price.

The scumbag lawyers will take 50% of the $400 million settlement and things will go on as usual. Lawyers are only looking for ways to scam $$ out of organizations and corporations, they don't give a flying F... about people. Why do you think there hasn't been a lot of lawsuits vs. appraisers or individual brokers....not enough money in it for them.

Edit: Actually I hope the agents get the haircut they deserve. I just closed my Mom's house in FL and even though the selling agent got a $10K commission, there was an additional line item on the HUD-1 where the buyer was charged an additional $295 to the selling broker for some BS doc fee. I guess $10K wasn't quite enough!

 

[Terrel L. Shields]

Zillow populates its data from teh MLS, not the other way around -

To me the real issue is the broker is free to opt out of the MLS and possibly will on cherry picked listings that they want to sell themselves. But the bottom line is no one knows what will happen because someone somewhere is crafting a way to bypass the systems new constraints. And they will. And nothing keeps anyone from listing directly on Zillow and bypassing the MLS as it is. Why do you think Rocket mortgage bought the website forsalebyowner? The lenders may end up controlling listings but who knows? This is unchartered territory and as I said before, we do not know the unintended consequences of this suit.

 

[Raven59]

It is the responsibility of the buyer agent to ensure the proper working of the process. Whether it does depends on the professionalism of the agent. NAR previously advocated for a buyer agency but did not require it. Many states stepped in an made it a requirement. NAR is offering to change that position to required.

dual agency agreement

This benefits no one. No party benefits singularly, and the agency exposes itself to liability that is hard to defend. The agency gets both sides of the commission, and the seller/buyer gets less representation.

So if all agreements on commissions are negotiated outside of MLS rather than a stated fee it might or might not change things - now a broker can charge 10% vs 6 % -and let a buyer haggle it down lol

All fees are open to negotiation, and they always have been. There is no fixed fee for the transaction, as the selling agency's commission used to be published, but now it cannot be. The commission cannot be reported and must be negotiated between the parties involved. It could be anywhere from 0% or maybe 10%, or whatever the parties agree.

Buyer concessions in MLS - idk what that means.

Sorry, I meant to say the seller can offer buyer concessions on an MLS.

 

[TN Pro]

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.

Very few buyers agents? Since when?

 

[OSU Beavers]

This topic reminds me of a question on the Realtors exam which I took in the early 1990's:

A Realtor's fiduciary duty is always to

1) The seller

2) The buyer

3) Both

And the real answer is "the deal". No matter how good or bad the terms are, the Realtor always wants the deal to close so everyone get paid.