Hey Realtors

[sinclair1]

Opinions on this

National Association of Realtors to cut commissions to settle lawsuits. Here's the financial impact.

The landmark deal, if approved by a court, could cause real estate fees to drop by as much as 30%, experts say.

www.cbsnews.com

 

[sinclair1]

Notably, the landmark deal will slash realtors' standard 6% sales commission fee, potentially leading to significant savings for homeowners. The group had been found liable for inflating agent compensation.

Fees could be slashed by up to 30%, the New York Times reported, citing economists.

That could impact earnings for 1.6 million real estate agents, who could see their $100 billion annual commission pool shrink by about one-third, analysts with Keefe, Bruyette & Woods wrote in a report last year about the pending litigation.

 

[BeerThirty]

Not a realtor. But they should be able to charge whatever commission they want. The free market will determine what they're worth. Honestly, get rid of the NAR.

 

[Arrow3]

I have a lot of mixed feelings. 6% wasn't set in stone and I have done several deals at 5%. As a matter of fact I offer 5% to all friends, family, and repeat customers. We will even do 4% on a larger deal or 4% if we bring in the buyer on what we have listed if negotiated before hand.

I think this could make things harder on 1st time home buyers.

This could hurt some realtors but I'm hoping it doesn't affect me much. I take pride in taking care of my client. I'm also a go getter. This is not my only source of income but it is my best. Time will tell.

 

[NE GA Pappy]

no one says they won't charge more than 6% either. I don't know how the rate got set at 6, but a free market will determine if that is a valid rate, or if it should be higher or lower.

 

[livinoutdoors]

Its good to get the prices out in the open. Who cares what they charge, but make it so people see the true cost. This aint the 1950s. People often find their own house nowadays. Somebody probably didnt earn that 3% split just cuz they gave you the code for the lockbox.

 

[snookdoctor]

This is not going to change anything, except change the way compensation is communicated.

The amount of commission has always been negotiated between the seller and the seller's agent. It is not a set fee. The MLS, being a cooperative platform that is honored by agents on both sides of the transaction, posted the amount of commission being offered for a successful transaction on a property so both agents knew up front and honored that commission split. This settlement by the NAR takes away that ease of communication, as the commission amount can not be listed on the MLS platform. Now the buyers agent will have to contact the seller's agent to see what % is being offered, and new commission agreement forms will be created in order for the agents on both sides to form a commission spilt "contract". It just creates extra work for the agents. The seller's agent will still negotiate the commission amount with the seller.....no change there.....no extra savings because of this money grab. Just a few extra steps in a staircase that was already very long.

 

[ucfireman]

I always wondered what the agent does for that 6%?
Days past yes, list it, network and showings etc.
Today, take a few pics and place on the MLS. Someone else shows it or the lock box code is given. Not a lot of work done there.
I know there is a little time with the closing attorney but most of that work is done by the attorney, I assume.

I never understood the thought of mandatory 6% to the listing agent, as said, everything is negotiable. Anything can be put into a contract.

 

[Arrow3]

I always wondered what the agent does for that 6%?
Days past yes, list it, network and showings etc.
Today, take a few pics and place on the MLS. Someone else shows it or the lock box code is given. Not a lot of work done there.
I know there is a little time with the closing attorney but most of that work is done by the attorney, I assume.

I never understood the thought of mandatory 6% to the listing agent, as said, everything is negotiable. Anything can be put into a contract.

Well that 6% (which has never been mandatory) Is split in half between the listing and buyers agent. Then That 3% is cut 25 to 50% by the broker. Then what's left is taxed for income for the agent.

I've had deals where I hardly had to do much work for a good paycheck and I've had deals where I worked for months for a client and probably didn't even break even. It all washes out though.

 

[jbogg]

I always wondered what the agent does for that 6%?
Days past yes, list it, network and showings etc.
Today, take a few pics and place on the MLS. Someone else shows it or the lock box code is given. Not a lot of work done there.
I know there is a little time with the closing attorney but most of that work is done by the attorney, I assume.

I never understood the thought of mandatory 6% to the listing agent, as said, everything is negotiable. Anything can be put into a contract.

6% has never been mandatory, and the commission has always been negotiable. From my experience most folks that complain that realtors are over paid have no clue how much time and work is involved to be successful.
I have a good friend who is one of those people.

He hired a realtor to sell his last home. It sold in two days for 50K over list and he complained that she didn’t earn it. What?? The house before that he had owned for less than two years and was trying to hit a home run didn’t sell as fast as he expected, so obviously it was the realtors fault. Some people are determined to be unhappy.

What he doesn’t see are the over priced listings that never sell, or the countless hours an agent can spend working with buyers only to have them change their mind about buying, or move somewhere else…. I’ve been married to a realtor for 35 years, and she earns every penny.

 

[Sargent]

All the settlement says is that brokers cannot list co-operating commissions on the MLS. Commission is negotiable and split between the listing broker and selling (buyer's) broker.

So, if an agent lists a house for 6%, 3% goes to the listing agent and 3% goes to the buyer's agent.

That was disclosed in the MLS. As of July, it has to be disclosed in some other fashion. I foresee a site that only lists cooperating commission- separate from the MLS.

 

[DannyW]

I always wondered what the agent does for that 6%?
Days past yes, list it, network and showings etc.
Today, take a few pics and place on the MLS. Someone else shows it or the lock box code is given. Not a lot of work done there.
I know there is a little time with the closing attorney but most of that work is done by the attorney, I assume.

I never understood the thought of mandatory 6% to the listing agent, as said, everything is negotiable. Anything can be put into a contract.

I have never paid 6% on a real estate transaction. When the negotiating gets down to the last few thousand, it's been my experience the agents offer to take less commission to get the deal done.

While I agree with @ucfireman about agents 20-30 years ago doing the minimum to earn their commission, my last two agents have went above and beyond.

I was actually shocked at the value they personally added to the sale, they both rolled up their sleeves and helped us prepare the properties for sale. I would recommend either one in a heartbeat.

Maybe I just got lucky with my agents...YMMV.

 

[snookdoctor]

If you ever wondered how real estate agents earn their commissions......




SO…YOU WANT TO BE A REALTOR

There is a lot of talk in the news about real estate agent commissions. They LOVE what they do and they do it because they LOVE helping people but there is almost always a huge misconception on what they do and how they get paid. It's not a secret so here ya go...

The average FULL TIME REALTOR’s earnings last year was $31,900 @ 40+ hours a week. (Notice I wrote full time 40+ hours not 0-20 hours a week) which is well below the living wage. As a REALTOR they do not get paid a hourly wage or salary and they

only get paid if they sell a home and it closes. They can only get paid by broker to broker. As an agent you could work with someone days, weeks, months, or years with no guarantee of a sale ever.

Essentially they wake up each day unemployed going on Job Interviews and they deal with constant rejection. They dedicate time away from family, use our time, gas, pay for babysitters, miss dinner and weekends and rarely take vacations. They are on 24/7! You constantly need to be on, or you could miss an opportunity. Once they do close a home, half goes to the other persons agent from the remaining half. They have lots of upfront expenses that must be paid out before they even get paid:

Broker Splits and Fees

Office rent and utilities

MLS Fees

NAR Fees

Local Association Fees

E&O Business Insurance

Extended Auto Insurance

Self-Employment Tax

State Licensing Fees

Advertising Fees

Showing Service Fees

Website Fees

Assistant's Salaries

Showing partners

Transaction coordinator

Yard Signs

Photographers

Videographers

Office Supplies

Business Cards

Property Flyers

Electronic Lockboxes

Continued RE Education

Legal Fees

Gas

Income taxes are not taken out so they have to put that aside around 25-30%.

Don’t forget health insurance if you don’t have a spouse who provides it.

As a listing agent they have lots of tasks far more than just selling a home.

1. Prepare Listing Presentation for Sellers

2. Research Sellers Property Tax Info

3. Research Comparable Sold Properties for Sellers

4. Determine Average Days on Market

5. Gather Info From Sellers About Their Home

6. Meet With Sellers at Their Home

7. Get To Know Their Home

8. Present Listing Presentation

9. Advise on Repairs and/or Upgrades

10. Provide Home Seller To-Do Checklist

11. Explain Current Market Conditions

12. Discuss Seller’s Goals

13. Share Your Value Proposition

14. Explain Benefits of Your Brokerage

15. Present Your Marketing Options

16. Explain Video Marketing Strategies

17. Demonstrate 3D Tour Marketing

18. Explain Buyer & Seller Agency Relationships

19. Describe the Buyer Pre-Screening Process

20. Create Internal File for Transaction

21. Get Listing Agreement & Disclosures Signed

22. Provide Sellers Disclosure Form to Sellers

23. Verify Interior Room Sizes

24. Obtain Current Mortgage Loan Info

25. Confirm Lot Size from County Tax Records

26. Investigate Any Unrecorded Property Easements

27. Establish Showing Instructions for Buyers

28. Agree on Showing Times with Sellers

29. Discuss Different Types of Buyer Financing

30. Explain Appraisal Process and Pitfalls

31. Verify Home Owners Association Fees

32. Obtain a Copy of HOA Bylaws

33. Gather Transferable Warranties

34. Determine Need for Lead-Based Paint Disclosure

35. Verify Security System Ownership

36. Discuss Video Recording Devices & Showings

37. Determine Property Inclusions & Exclusions

38. Agree on Repairs to Made Before Listing

39. Schedule Staging Consultation

40. Schedule House Cleaners

41. Install Electronic Lockbox & Yard Sign

42. Set-Up Photo/Video Shoot

43. Meet Photographer at Property

44. Prepare Home For Photographer

45. Schedule Drone & 3D Tour Shoot

46. Get Seller’s Approval of All Marketing Materials

47. Input Property Listing Into The MLS

48. Create Virtual Tour Page

49. Verify Listing Data on 3rd Party Websites

50. Have Listing Proofread

51. Create Property Flyer

52. Have Extra Keys Made for Lockbox

53. Set-Up Showing Services

54. Help Owners Coordinate Showings

55. Gather Feedback After Each Showing

56. Keep track of Showing Activity

57. Update MLS Listing as Needed

58. Schedule Weekly Update Calls with Seller

59. Prepare “Net Sheet” For All Offers

60. Present All Offers to Seller

61. Obtain Pre-Approval Letter from Buyer’s Agent

62. Examine & Verify Buyer’s Qualifications

63. Examine & Verify Buyer’s Lender

64. Negotiate All Offers

65. Once Under Contract, Send to Title Company

66. Check Buyer’s Agent Has Received Copies

67. Change Property Status in MLS

68. Deliver Copies of Contact/Addendum to Seller

69. Keep Track of Copies for Office File

70. Coordinate Inspections with Sellers

71. Explain Buyer’s Inspection Objections to Sellers

72. Determine Seller’s Inspection Resolution

73. Get All Repair Agreements in Writing

74. Refer Trustworthy Contractors to Sellers

75. Meet Appraiser at the Property

76. Negotiate Any Unsatisfactory Appraisals

77. Confirm Clear-to-Close

78. Coordinate Closing Times & Location

79. Verify Title Company Has All Docs

80. Remind Sellers to Transfer Utilities

81. Make Sure All Parties Are Notified of Closing Time

82. Resolve Any Title Issues Before Closing

83. Receive and Carefully Review Closing Docs

84. Review Closing Figures With Seller

85. Confirm Repairs Have Been Made

86. Resolve Any Last Minute Issues

87. Attend Seller’s Closing

88. Pick Up Sign & Lock Box

89. Change Status in MLS to “Sold.”

90. Close Out Seller’s File With Brokerage

As a buyers agent they also have many tasks.



1. Schedule Time To Meet Buyers

2. Prepare Buyers Guide & Presentation

3. Meet Buyers and Discuss Their Goals

4. Explain Buyer & Seller Agency Relationships

5. Discuss Different Types of Financing Options

6. Help Buyers Find a Mortgage Lender

7. Obtain Pre-Approval Letter from Their Lender

8. Explain What You Do For Buyers As A Realtor

9. Provide Overview of Current Market Conditions


10. Explain Your Company’s Value to Buyers

11. Discuss Earnest Money Deposits

12. Explain Home Inspection Process

13. Educate Buyers About Local Neighborhoods

14. Discuss Foreclosures & Short Sales

15. Gather Needs & Wants Of Their Next Home

16. Explain School Districts Effect on Home Values

17. Explain Recording Devices During Showings

18. Learn All Buyer Goals & Make A Plan

19. Create Internal File for Buyers Records

20. Send Buyers Homes Within Their Criteria

21. Start Showing Buyers Home That They Request

22. Schedule & Organize All Showings

23. Gather Showing Instructions for Each Listing

24. Send Showing Schedule to Buyers

25. Show Up Early and Prepare First Showing

26. Look For Possible Repair Issues While Showing

27. Gather Buyer Feedback After Each Showing

28. Update Buyers When New Homes Hit the Market

29. Share Knowledge & Insight About Homes

30. Guide Buyers Through Their Emotional Journey

31. Listen & Learn From Buyers At Each Showing

32. Keep Records of All Showings

33. Update Listing Agents with Buyer’s Feedback

34. Discuss Home Owner’s Associations

35. Estimate Expected Utility Usage Costs

36. Confirm Water Source and Status

37. Discuss Transferable Warranties

38. Explain Property Appraisal Process

39. Discuss Multiple Offer Situations

40. Create Practice Offer To Help Buyers Prepare

41. Provide Updated Housing Market Data to Buyers

42. Inform Buyers of Their Showing Activity Weekly

43. Update Buyers On Any Price Drops

44. Discuss MLS Data With Buyers At Showings

45. Find the Right Home for Buyers

46. Determine Property Inclusions & Exclusions

47. Prepare Sales Contract When Buyers are Ready

48. Educate Buyer’s On Sales Contract Options

49. Determine Need for Lead-Based Paint Disclosure

50. Explain Home Warranty Options

51. Update Buyer’s Pre-Approval Letter

52. Discuss Loan Objection Deadlines

53. Choose a Closing Date

54. Verify Listing Data Is Correct

55. Review Comps With Buyers To Determine Value

56. Prepare & Submit Buyer’s Offer to Listing Agent

57. Negotiate Buyers Offer With Listing Agent

58. Execute A Sales Contract & Disclosures

59. Once Under Contract, Send to Title Company

60. Coordinate Earnest Money Drop Off

61. Deliver Copies to Mortgage Lender

62. Obtain Copy of Sellers Disclosure for Buyers

63. Deliver Copies of Contract/Addendum to Buyers

64. Obtain A Copy of HOA Bylaws

65. Keep Track of Copies for Office File

66. Coordinate Inspections with Buyers

67. Meet Inspector At The Property

68. Review Home Inspection with Buyers

69. Negotiate Inspection Objections

70. Get All Agreed Upon Repair Items in Writing

71. Verify any Existing Lease Agreements

72. Check In With Lender To Verify Loan Status

73. Check on the Appraisal Date

74. Negotiate Any Unsatisfactory Appraisals

75. Coordinate Closing Times & Location

76. Make Sure All Documents Are Fully Signed

77. Verify Title Company Has Everything Needed

78. Remind Buyers to Schedule Utilities

79. Make Sure All Parties Are Notified of Closing Time

80. Solve Any Title Problems Before Closing

81. Receive and Review Closing Documents

82. Review Closing Figures With Buyers

83. Confirm Repairs Have Been Made By Sellers

84. Perform Final Walk-Through with Buyers

85. Resolve Any Last Minute Issues

86. Get CDA Signed By Brokerage

87. Attend Closing with Buyers

88. Provide Home Warranty Paperwork

89. Give Keys and Accessories to Buyers

90. Close Out Buyer’s File Brokerage

Whew…exhausting isn’t it!?!

You don't need to buy or sell a home to support your agents real estate business – here are just a few simple ways to show your support!⁣ By sharing one of their listings, sending a friend or family member their way, letting them connect you with agents outside their area for a broker to broker referral, or leaving them a positive comment or review, this helps them feel seen and supported - (thanks to you)!

If you’re a Realtor, please feel free to copy & paste and continue to share this information

 

[kingfish]

I was a Realtor for 14 years in North Central Florida until I retired. This is a great list here Mr. SnookDoctor. I just forwarded it to a couple friends still in the game. Where I worked, commissions were always set by the Broker not the individual Realtor. We were always instructed to educate clients that nothing commission wise was " standard or across the board". People always want to negotiate rates, that's nothing new.

 

[westcobbdog]

Opinions on this

National Association of Realtors to cut commissions to settle lawsuits. Here's the financial impact.

The landmark deal, if approved by a court, could cause real estate fees to drop by as much as 30%, experts say.

www.cbsnews.com

Don't understand it enough yet to comment on all fronts, but having another sales meeting on the topic in the am and having discussed it in my office a few times I will say this: I feel it's potentially damaging to the typical home buying consumer. if a trend starts where buyers are now on the hook to pay their brokers fee, a great majority cant do that, even a few thousand dollars. They are not capitalized enough. So you may have a litany of buyers who want to buy but dont know but a few of the great many pitfalls representing themselves and could easily get severly burned. How is this protecting the now very exposed consumer / buyer?
Another way I see it is if a buyer
( unrepped ) comes to my listing likes it and has me draft an offer, it's gonna have more holes from their end than Swiss cheese, because I rep the sellers interests, not the buyers. And it's gonna be very tight from the sellers perspective making requests of the in repped buyer.
Another scenario is quite a few buyers, working with an agent they trust, will just pass on a listing with no or little commission offered to their broker whom they want representing their interests. For this reason I think most sellers, including listings I am currently taking, agree with me and will have a negotiated commission amount that is then divided in half for the "co op" agent to be welcomed into the transaction.

 

[Stob]

Don't understand it enough yet to comment on all fronts, but having another sales meeting on the topic in the am and having discussed it in my office a few times I will say this: I feel it's potentially damaging to the typical home buying consumer. if a trend starts where buyers are now on the hook to pay their brokers fee, a great majority cant do that, even a few thousand dollars. They are not capitalized enough. So you may have a litany of buyers who want to buy but dont know but a few of the great many pitfalls representing themselves and could easily get severly burned. How is this protecting the now very exposed consumer / buyer?
Another way I see it is if a buyer
( unrepped ) comes to my listing likes it and has me draft an offer, it's gonna have more holes from their end than Swiss cheese, because I rep the sellers interests, not the buyers. And it's gonna be very tight from the sellers perspective making requests of the in repped buyer.
Another scenario is quite a few buyers, working with an agent they trust, will just pass on a listing with no or little commission offered to their broker whom they want representing their interests. For this reason I think most sellers, including listings I am currently taking, agree with me and will have a negotiated commission amount that is then divided in half for the "co op" agent to be welcomed into the transaction.

Yep. It's going to create the wild wild west (not this but kinda what created the '09 crash). I am selling next spring and am starting the process of getting the digs whipped into shape. Lawd what you dont see daily when you have lived in a house for 17 years.

What do I make 'look good' now or do I offer up a payout for minor repairs?

How does this help me.. I think that I know.

 

[Mexican Squealer]

Fella I use to buy and sell in SC works his rear end off for me…hope he doesn’t take a penny of a pay cut.

 

[livinoutdoors]

Lord have mercy up in here. Im sure realtors are gon live somehow.

 

[westcobbdog]

Yep. It's going to create the wild wild west (not this but kinda what created the '09 crash). I am selling next spring and am starting the process of getting the digs whipped into shape. Lawd what you dont see daily when you have lived in a house for 17 years.

What do I make 'look good' now or do I offer up a payout for minor repairs?

How does this help me.. I think that I know.

Often when I visit a home pre listing I tell folks not to fix certain things which causes surprise.

 

[DannyW]

Often when I visit a home pre listing I tell folks not to fix certain things which causes surprise.

Agreed. We are considering selling our home due to circumstances. The upstairs carpet is in bad shape. My wife said we might as well go ahead and replace the carpet. I said why spend $3,000? We should pay $200-300 to clean the carpet and when the buyer brings up the carpet, and they will, we offer a flooring allowance. We don't know what kind of flooring they might prefer, or color, and that way the buyer can get exactly what they want.

Now we will fix broken or damaged things.

I think that is the correct approach, right?