Posted on 04/25/2024 9:29:22 AM PDT by where's_the_Outrage?
Starting in July, the real estate industry is bracing for a sweeping shake-up thanks to a $418 million settlement offered by the National Association of Realtors to overhaul its long-entrenched commission structure for agents and pay compensation to the sellers and real estate brokerages who sued.
The NAR got a further blow on April 5, when a federal court cleared the way for the Justice Department to reopen an antitrust probe into the group and its rules regarding home-sale commissions.
While the settlement awaits final approval later in the year, a preliminary sign-off by a federal judge on Tuesday means that the outcome is highly likely. In addition, the NAR has already started planning to change some of its policies starting this summer. Although these will likely affect home buyers more than sellers, both sides will have to make some adjustments, including how they work with agents......
The new changes could prompt more buyers to go without hiring an agent at all. That would mark a departure from current practice, with more than 90 percent of buyers and sellers working with an agent, according to the NAR.
If they do opt for an agent, buyers might vet several candidates first to compare services and costs, since they have flexibility to negotiate the agent’s commission. But they should also remember they probably won’t know in advance of making an offer whether the seller will pay the commission of the buyer’s agent — so that payment is likely to become part of purchase negotiations, Luong said.
(Excerpt) Read more at msn.com ...
We did FSBO and put home on zillow. The buyer had a broker. We paid him 4%. He was a bit uncomfortable at first as he’d been burned but in the end he was our friend too and thanked us for all we did.
The buyer usually finds the inspectors, etc. so their broker made the contacts. We were also “as is” so buyer responsible for repairs.
Worked well for both sides. They still live in the home and love it.
I've never understood the commissions remuneration for real estate agents. They do essentially the same amount of work for a $1M house as for a $500K house.
I have always gone directly to the listing agent, never lost out on a house - they want you to come directly so they don’t have to split commissions
You don’t need a real estate course, selling a house is easy - I’ve sold 10 on my own.
I have sold three house FSBO. It’s a piece of cake…easy.
Real estate commissions are a huge ripoff. In our area, the average home is probably one million dollars. So a 6% commission costs $60,000. Bye-bye a good chunk of equity!
I mostly sell or buy without agent
Relative had someone approach him about having relative buy his house.
I helped them navigate the sale of relatives current house and purchase of his friends house. No agent. Good lawyers. Done deals.
did they charge you anything?
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