Fixed real estate commissions look to be "unfixed" by lawsuit settlement

[BoxsterCy]

Well, this has the potential to be HUGE. I was lucky enough to avoid this and buy directly from an elderly couple decades ago but these fixed commissions have always bugged the hell out of me especially in this ago of internet info and images and video being so readily available. It ain't 1985 anymore.

Realtor settlement on commission-fixing could create seismic changes in how Americans buy homes

The 6% commission, a standard in home purchase transactions, is no more. In a sweeping move expected to reduce the cost of buying and selling a home, the National Association of Realtors announced Friday a settlement of landmark antitrust lawsuits by agreeing to pay $418 million in damages and eliminating rules on commissions. - CNN​

https://www.cnn.com/2024/03/15/economy/nar-realtor-commissions-settlement/index.html

 

[Trice]

Alternative headline: The Great American Real Estate Scam Is Over

I'd love to see detailed breakdowns of commissions real estate agents charge divided by the actual hours they put into selling your home. The hourly rate has to be astronomical.

Amazing it took this long. It has always been blatant collusion, and they weren't even hiding it.

 

[BoxsterCy]

more coverage:

https://www.washingtonpost.com/business/2024/03/15/nar-real-estate-commissions-settlement/

 

[SCNCY]

Alternative headline: The Great American Real Estate Scam Is Over

I'd love to see detailed breakdowns of commissions real estate agents charge divided by the actual hours they put into selling your home. The hourly rate has to be astronomical.

Amazing it took this long. It has always been blatant collusion, and they weren't even hiding it.

I would assume in the last couple of years, if you're selling a house, the hourly rate has to be really high. After buying two homes and selling one the last 3-4 years, all a selling agent had to do was get the MLS and disclosures ready, set up an open house, and wait for offers to come in. Don't even really need to spend time negotiating with the buyers. In my area, sellers were only giving the buyers agent 2%. Before the recent times, I'm sure more work was done to market and push a home in order to sell, so probably more time spent.

Buyers agents have it harder due to the amount of time working with clients going from house to house, submitting offers, and losing out. Definitely more time spent on the buyers side than sellers.

 

[Freebird]

Twenty years ago I had a realtor refuse to show me a house because it was a flat rate realtor. I fired her the next day.
This has always been a sham. It’s collusion amongst the majority of realtors in the market.
And realtors are dinosaurs. The only people that will tell you that realtors are relevant are realtors. Get comps, a good real estate attorney and you will do fine.

 

[mywayorcyway]

I dislike realtors. A lot.

 

[BCClone]

I know realtors who would cut the rate to get things done quite a bit or to get the job. One even set commission rates that seller rep would be 3 and buyer rep would be 1.5 to 2 percent to dissuade the competition from selling their listings. Of course the realtor would just say the were cutting their rate to 4.5 or 5 and not say that they were basically making the house an exclusive by doing that.

 

[2122]

I sold my home in 2014. Paid like $90 to a company to get it listed on MLS and a few for sale signs to avoid that FSBO feel. Paid the 3% to buyer's broker. Worked beautifully, saved 3%, which was over $21k...

 

[ClonesFTW]

It's going to be a rude awakening when home buyers are soon presented a disclosure that says they are now responsible for paying the commission for their own realtor.

 

[Sigmapolis]

Alternative headline: The Great American Real Estate Scam Is Over

I'd love to see detailed breakdowns of commissions real estate agents charge divided by the actual hours they put into selling your home. The hourly rate has to be astronomical.

Amazing it took this long. It has always been blatant collusion, and they weren't even hiding it.

The NAR does well for its members. Just not for the rest of us.

I once had a principle there tell me "the mortgage interest deduction is fundamental to American democracy." Full quote. Not a paraphrase.

Of course, the main thing the MID does is push housing costs up (people can borrow more because they can deduct the interest which the sellers collect by inflating the principal cost of the home which the realtors collect via a percent-based commission).

I suppose incumbent homeowners like it for the same reason.

 

[Freebird]

The last home I purchased the realtors made a commission off the seller of over $30k. It was on the market for two days…

 

[Gunnerclone]

housevana.com

 

[Gonzo]

Ok but have the Property Brothers approved?

 

[mynameisjonas]

It's going to be a rude awakening when home buyers are soon presented a disclosure that says they are now responsible for paying the commission for their own realtor.

Do you know when that goes into effect?

 

[isucy86]

It's going to be a rude awakening when home buyers are soon presented a disclosure that says they are now responsible for paying the commission for their own realtor.

Maybe. But if the market changes that the buyer has to pay their own broker, then as the buyer I would pay less to the seller. Seems to me, currently most sellers build into their sales price their costs for both their own and buyers agent fees.

 

[cycfan1]

It's going to be a rude awakening when home buyers are soon presented a disclosure that says they are now responsible for paying the commission for their own realtor.

Great. As they should.
Then majority of people will realize a buyer's agent is worthless and they can save 3% on the house.
I get needing a buyers agent if its your first house or you dont know what your doing, but its an absolute rip off.

 

[Cloneon]

As a soon to be home seller (again), I would negotiate a shorter contract with percent reward for achieving said goals. Of course, if I were the realtor on the other side, I might consider myself better educated on whether the seller's demands are realistic or not, thus resorting to a cat and mouse game. However, my life experience has taught me otherwise. I've sold two of my homes over my lifetime: one for which I demanded a price 50% above what the realtor suggested and the other in the middle of a complete home renovation, still for an amount much higher than the realtor recommended. The first had a waiting line of buyers after the realtor's first 'private' open house, resulting in an auction type ordeal. The other took longer, but again sold for the price I suggested. Needless to say with these two experiences, I'm a little reluctant to believe realtor's advice. Of course, the weird thing about both of those is that the realtor made out better because of my stubbornness. That and NEVER take the realtor's advice for a home inspector.

 

[alarson]

Then majority of people will realize a buyer's agent is worthless and they can save 3% on the house.

I would disagree on worthless. A good buyer's agent can be very helpful with the process in identifying homes you may want to look at, identifying potential issues, and helping deal with the seller/seller's agent.

 

[KnappShack]

I would disagree on worthless. A good buyer's agent can be very helpful with the process in identifying homes you may want to look at, identifying potential issues, and helping deal with the seller/seller's agent.

A good one can keep a person out of some bad decisions.

A bad agent isn't worth much. A good agent is well worth the pay.

 

[cycfan1]

I would disagree on worthless. A good buyer's agent can be very helpful with the process in identifying homes you may want to look at, identifying potential issues, and helping deal with the seller/seller's agent.

I'm in process of buying my 4th house.
I have done all of the research, chosen every house to look at. More/Less setting up my own showings. Realtor shows up and points out defects (obvious ones). Does a little background work on the house.

How in the world is that worth 15k on a 500k house? To each their own... I just don't need one.

As a buyer you dont have a way around it. If I go with the sellers agent direct they are just going to take the buyers commission for themselves.