OT: NAR agrees to $418 million in damages. A boon to home sellers/buyers?

[Gummee]

Originally Posted by Alistair

Who the heck would hire an agent that can only close 2-3 homes/year? That's crazy - what're they doing the rest of the year? My agent is closing 2-3/week just in peak season.

Your agent is making bank on those transactions, but the majority of agents aren't.

Lots of part time agents, moms, or retirees that 'work' in the RE business

M

[Gummee]

Originally Posted by Alistair

This.

A buyer's agent should be on a flat fee, renegotiated monthly.

A seller's agent should be able to charge whatever they want based on the work and skill required to sell. Flat fee, 2%, 6%, whatever.

And whatever the case, it's amazing that agents in the US get ~6% compared to ~3% in the UK. What does an American agent do that adds double the value to the process? Especially today, with everything online (at least for the majority of homes - there are definitely oddballs/outliers that take special skill to sell and special skill to discover/buy).

Who takes the pics and posts them online? The agent That takes time and money.

M

[Clean39T]

Originally Posted by Gummee

Your agent is making bank on those transactions, but the majority of agents aren't.

Lots of part time agents, moms, or retirees that 'work' in the RE business

M

Gotta have a reason to deduct that SL500.

[Clean39T]

V

[zap]

I certainly felt ripped off (5%) when we sold our home in Potomac, MD. The buyer used Redfin and at settlement received US$10K.

I know folks who are listing with agents that charge a flat US$2.5K to the listing agent and 2.5% to buyer agent.

[zap]

Originally Posted by Clean39T

Gotta have a reason to deduct that SL500.

I know a broker here in RTP NC that has 5 MB GLS's with brokerage logo's plastered on the side of each vehicle.

[Alistair]

Originally Posted by Gummee

Who takes the pics and posts them online? The agent That takes time and money.

M

$30k of time? lol.

[.RJ]

Originally Posted by Gummee

Who takes the pics and posts them online? The agent That takes time and money.

M

They hire a photographer for $200-400 flat rate. Posting photos to MLS with the listing is probably done in 15 minutes.

Some agents, this is the only amount of work they will do - in this market its probably sufficient. Others will coordinate staging, cleaning, marketing, small repairs and hold open houses and front the cost for all of this. It can be a real value add and get top dollar for the house rather than leave the homeowner to their own devices. If someone sold my house with the bare minimum and wanted 6% for doing so, I'd feel pretty ripped off.

[echappist]

Originally Posted by Gummee

Who takes the pics and posts them online? The agent That takes time and money.

M

And I've seen some horrendous pictures taken by seller's realtors. Badly-lit photos, blurry photos, and photos taken on a cloudy day, etc.

The photography produced often isn't much better compared to what an amateur who understands light can produce with a DSLR.

Professionals charge ~$500-750 for RE photography session for something ~2,500 sq ft (often less). For a $600k house on which the seller's agent gets 2.5%, that's $15k to sell-side agent. The sell-side agent better be offering a lot more than a $750 photo sessions to charge $15k.

[jlwdm]

Originally Posted by HTupolev

Since the beginning of human civilization, no invention has ever been devised which instills more suspicion than an argument against conflict-of-interest beginning with "fiduciary duty."

Ha! Fiduciary Duty is in the regulations so it has to be mentioned. As a former attorney I am well aware of the meaning and obligations.

Your response says nothing.

Jeff

[ColonelJLloyd]

https://www.nytimes.com/2024/03/20/p...smid=url-share

[.RJ]

Originally Posted by echappist

The photography produced often isn't much better compared to what an amateur who understands light can produce with a DSLR.

This was my last house.

Next time I'm doing my own photos.

[avalonracing]

Originally Posted by ColonelJLloyd

https://www.nytimes.com/2024/03/20/p...smid=url-share

Thanks for the link. Although there is a lot of exaggeration and opinion in the story.

Hell, they start the story by stating that a home transaction is going to get a lot cheaper for buyers and sellers. Most buyers are going to be disadvantaged by the current form of this settlement as their agents are going to need to be paid out of pocket and buyers cannot add that agent compensation fee into their loan. Many buyers (especially first-time buyers) are struggling to come up with the money to buy a home so they don't have money to pay their agent. And no sellers are going to lower the price of their home because they aren't offering compensation to the buyer's agent.

This will be another case of well-off people and people with family support being able to outbid those who are trying to take that first step toward financial security and wealth-building.

[Alistair]

Originally Posted by avalonracing

And no sellers are going to lower the price of their home because they aren't offering compensation to the buyer's agent.

But as a seller, why am I paying the buyer's agent? I'm paying somebody $12,000 (3% of a 400k purchase) or more who I've never met, never interacted with, and as far as I can tell provides zero value to me beyond unlocking my door to do a showing. My agent can unlock the door. Or I can unlock it.

I'm not saying the buyer's agent doesn't provide value, but that value is to the buyer, so that's who should pay for the service.

Yes, I acknowledge that 1-2% of $400,000 is a lot of money for the buyer to cough up. As a seller, I'm not sure I care.

[avalonracing]

Originally Posted by Alistair

Yes, I acknowledge that 1-2% of $400,000 is a lot of money for the buyer to cough up. As a seller, I'm not sure I care.

The thing is, you didn't have to pay that before. It sounds like there were some misinformed sellers who thought you had to. And you don't have to pay that now.

Just remember when you are buying a new home to not complain about the fee you'll be paying if you decide to use a competent buyer's agent. And if we are still in a seller's market when you buy, a competent buyer's agent can make all the difference as to whether your bid is accepted when you are bidding against other buyers who have good agents.