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Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
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So, what’s new with you?
Just kidding. We know that for many of you, last week has brought with it a lot of questions and uncertainty as you figured out how to implement the terms of the National Association of Realtors commission lawsuit settlement. Maybe you had to call your broker or another trusted mentor for advice. Maybe you had to refer back to Inman’s library of reporting and contributed advice.
All of which is to say, you’ve been on our minds, so we asked: How was your first week post-NAR settlement changes? How are you deciding what commission to put on buyers’ agreements? Were you already in a state that used buyer agreements? If not, how has the adjustment been? What jitters, hiccups and horror stories did you encounter (if any)? Here’s what you said:
- It has been a great week. On Monday, my buyers went under contract on new construction. The builder was offering a higher commission than I had negotiated, so I had my buyers sign a new agreement with the higher rate. On Wednesday, another buyer went under contract on new construction. On Thursday, my listing went under contract. My sellers had agreed to offer a commission when they signed the listing agreement last week. On Friday, I submitted an offer for another buyer, and I’m waiting for a response. It has been my busiest week of the year. Focus on your business and don’t be distracted by these changes.
- Confusing
- Fine, no issues
- We have always been required to have buyer agency agreements here in North Carolina. The difference is that buyers must sign them now before I show them a property. I am asking for what has been the “average” buyer agent commission in my market. Honestly, I could ask for more because 90 percent of my clients are referrals from past clients and they realize the value I add. I am very well compensated overall because of my volume and I don’t want to increase what it costs for my clients to purchase a home. This week, clients of mine went under contract with a builder who offers a higher commission than is normal in this market, so I am paying for my buyer’s inspections and buying them a home warranty.
- Rather uneventful, as we have been preparing for it for a while now
- Workaround, workaround, workaround
- People are not willing to sign an agreement where they are on the hook for an unspecified amount of money
- It was great. While other agents run for the hills, other savvy agents do inform and work with better clients
- I’m a broker, so what I’m hearing back from my agents is that some people will sign a buyer’s agreement without a problem. Others feel they are being asked to make a commitment to an agent they may haven’t even met or who they have just met. Even when explained and the document signed so a home can be viewed, it certainly gets the relationship off to a shaky start.
- Uneventful, apart from describing how lucky we are that we are not in the NAR, nor were we using their polluted paperwork that caused them so much trouble.
- A small percentage of listing agents shared with buyer agents what compensation their seller was offering. I thought the number would be higher. My brokerage rolled out a showing agreement that allows us to show properties to buyers with or without an exclusive buyer agreement and for a short period to time. I am encouraging all of my buyers to allow me to show them all properties. I don’t have time to contact every listing agent before showing a property.
- So far so good! Noticing quite a few uneducated agents, which makes it challenging if they aren’t able to educate the consumer. It will all sort out and in six months it will be second nature.
- A client said this was like a pre-nuptial agreement and wouldn’t sign it without me limiting it to a specific address.
- Not as bad as anticipated, although our brokerage has been proactive since Day One that we learned there would be some changes
- To me, a ridiculous by-product is that our MLS won’t allow co-op compensation on rentals, which had nothing to do with the lawsuit. Moreover, when I put the *application* fee in Broker Remarks, that was flagged and removed. SMDH….
- The insane misinformation coming from agents is mind-blowing.
- Normal
- There was so much misinformation reported by local media about big changes to the real estate industry. Also, there is a lot of bad advice on the Internet for real estate agents. Please ask your broker. Real estate is local and no, you can not use a form you found on the internet without your broker’s permission.
- No difference at all. Visiting open houses with a few buyers (yes, I had my agreement ready) but all of the open houses were just business as usual. Nothing was asked or said at any by unaccompanied buyers or the agent hosting. Ignore and it will go away seemed to be the mindset. My opinion on this entire fiasco …. way for government to control small business and for lawyers to continue to profit from those who are always sue-happy.
And from Inman Coast to Coast on Facebook:
- The 25 percent of agents who can’t explain their worth will be out of the business soon. Let’s see how many don’t renew NAR in January
- As someone (like most of us) who values complete and total transparency, it’s been a challenge to understand the intricacies of the changes so I can confidently and clearly explain to sellers and buyers. I’m taking it one day at a time! Compass is amazing and preparing us really well! Phew!
- Concerned for the agents who are trying to find workarounds and/or trying to “keep things the same,” but optimistic for those taking agile and adaptive action to follow regulation. Locally in Orlando our date was 8/6. I am proud of the team for their significant focus to prepare. Understanding the critical conversations needing to be shared with buyers & sellers RIGHT NOW is key. Change is not always fun, but change is not always bad either. The number of meaningful & refreshing conversations being shared with the customers, is inspiring. The future for the professional real estate agents who focus on what is legal, ethical, and customer choice-driven is bright. Chin up all, you got this. Opportunities are abundant.
- Not much has changed; we just call, ask the details and put it in writing.
- Watching the groups online is most concerning. Some are clearly not prepared or trained. Soooo many of the state laws are different, which makes asking for advice really hard to get an accurate answer. Forms here in Utah are still rolling out, which makes the flow of business pretty disruptive. I’m not a super high-deal volume agent, but of the buyers and sellers I’ve spoken with most have been understanding.
- States that didn’t have buyer broker agreements in place decades ago is why the disruption is happening. We’ve been using them for 20+ years in the DMV.
- If only Realtors would ask their brokers. Real estate is local. Online support groups are nice, but agents who want to stay legal should talk to their brokers.
- So much scrambling and misinformation — trying to stay off the doom and gloom threads and focus on the goodness we’ve learned from our brokerage and doing what’s best for our customers. On a positive note, while scheduling showings and doing CMAs (calling past closed agents with questions on their listings), we’ve had a few super positive conversations with agents in our market on what they’re doing and what their brokerage is doing for them. As hard as changes can be in our industry, I do love how it can bring agents closer together, regardless of what brokerage they align with. Sharing truly is caring and when we all strive to work through this together, we are doing what’s best for our customers.
Editor’s note: These responses were given anonymously and, therefore, are not attributed to anyone specifically. Responses were also edited for grammar and clarity. Inman doesn’t endorse any specific method and regulations may vary from state to state.
What did we miss? Please share your thoughts in the comments section below.