At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
In times of rapid change, people start talking, often before they’ve taken the time to listen. As commission lawsuits and subsequent settlements have unfolded, they’ve set the stage for misunderstanding, misinformation and many, many mistakes. You’ve probably read or heard something that left you shaking your head and trying to correct the record.
We asked, and you answered: What’s the craziest thing you’ve heard about commissions? What misinformation is out there that makes you just roll your eyes? Did it come from the media, from a potential client or from an ill-informed colleague? Did you have an opportunity to set folks straight? Here’s what you said, both here and on Instagram:
- “The 6 percent commission forced upon a seller is why the housing market has skyrocketed.”
- That NAR sets commission
- “Home prices just decreased 3 percent.”
- Buyer broker commissions being placed in ShowingTime
- That agents will take all their listings with only listing agency getting paid
- Someone made a comment that they were glad this lawsuit happened, because Realtors were the most overpaid people on the planet. Anybody can sell a home. The person who was saying this was trying to sell me a piece of jewelry. Guess who didn’t make that sale.
- “There is no need for any agents when selling.”
- Once, several years ago, a FSBO told my friend that there will be no more agents once all sellers become FSBOs. Then started complaining about all the calls he was answering about his property for sale. People have no clue.
- “For the first time ever, commissions are negotiable.” — Joe Biden
- “Sellers should wait and put their homes on the market in July so that they can save 3 percent.”
- “We want Realtors to lower their commissions to help the American homebuyer.” — Joe Biden
- Six percent is outlawed and banned
- “You must be scared with this new law.” LAW!
- Apparently, in July there will be no commissions
- That this will make prices go down
- “Buyers have to pay their agent up front before they look at houses.”
- “How are the lenders going to cover the buyers’ agent commission?”
- Anything from anyone who’s not an agent
- I don’t want to pay the buyer’s agent because I heard I don’t have to.
- I’ve heard from several people that their understanding is buyer agents will either not get paid at all or become obsolete. The most frustrating part about all this is every state, city and micro markets within the cities are different and require different levels of service. All good agents work extremely hard for their clients.
- “I don’t have to pay them.”
- Agents are going to have to start paying buyers to work with them
- That these changes will bring down the cost of housing. No, it will just cost buyers more, if they have to pay their agents, or buyers will be taken advantage of when they think they don’t need/can’t afford an agent.
- “Oh right, is this work how you make a living?”
- A social media finance “influencer” said she loves that the buyer’s agent will now be paid by the buyer and that’s great because all the listing agent did was open the door. I was like, “How do you know what the listing agent did if you used a buyer’s agent?” Make it make sense.
- That sellers of $3 million plus properties did not know the commission structure. And they signed a listing. So insulting to them.
- “Realtors are panicking.” Realtors don’t panic. Put us in a room with a couple of sandwiches and drinks, and we could solve world hunger.
What did we miss? Please share your thoughts in the comments section below.