I think with the new commision enviroment about to change... I expect major gives are about to present themselves. I'm thinking that a discount war of sorts will ensue.
Are Real Estate commisions about to crater?
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I think making each party responsible for the paying the commission of their realtor makes a ton of sense and will cause commissions to settle some. I think the impact to actual housing prices is overblown, though. (No evidence to back that up)
I don't think we'll see discounts but rather the opposite, the opportunity to increase the rates. You won't be able to get a realtor unless you sign the papers for at least the current rate. The realtor companies will see this as a revenue generator and will work together to keep pricing at current rates or more.
You sell it for 6% or higher. I drop my commission to 5% to get more listings. The guy down the street then cuts his to 4%. Then the big office in town drops to 3%...and so on.
Sounds interesting...wish I knew what the hell you're talking about
A coven of witches about to lose their brooms due to lower commissions.
That was my takeaway anyway.
That's not going to happen because the companies won't allow the realtors to drop the percentage because they'll get less (if split 50/50). When I sold my first house we had a realtor list our house for 5% (rather than 6%) but couldn't go lower for a number of reasons. The listing company want's at least 2.5% and the buying agent won't even show the house if the percentage is loo low.
I think we're going to start to see a lot of discounts on the commission rates for the higher dollar homes.
Definitely some softening in commissions overall to start, though that was already happening due to many factors.
Eventually, if sellers become unwilling to pay buyer's agent's commission (which is the real change here), the buyers will have to build paying their broker into their purchase price so they can get a larger loan to cover that cost. This could cause some issues with appraisals not hitting contract purchase price, and could scuttle deals.
Eventually, if sellers become unwilling to pay buyer's agent's commission (which is the real change here), the buyers will have to build paying their broker into their purchase price so they can get a larger loan to cover that cost. This could cause some issues with appraisals not hitting contract purchase price, and could scuttle deals.
Absolutely legal (both higher and lower % depending on sale price). Commission flexibility is partly a desired outcome of NAR settlement.
New rules established a few months ago are about to take place.Sounds interesting...wish I knew what the hell you're talking about
You know that’s been happening for years - and that a seller has always been able to negotiate a “haircut” if they get a less than listing price offer?
And the higher the listing price the more common that is?
6% commission is actually pretty uncommon these days.
I wonder if it will become more popular now but Realtors might start offering as standard a pricing option.
Basic a sign in your yard and listed on MLS for a lower commission
Added services from a price menu like Open House, showcase level status with professional photo portfolio, etc. all at a set price.
Basic a sign in your yard and listed on MLS for a lower commission
Added services from a price menu like Open House, showcase level status with professional photo portfolio, etc. all at a set price.
Agreed. Except in commercial real estate, 6% is nearly dead.
Agreed re: good brokers not being concerned. I think most are happy to see this scare away some part-timer/bad brokers.
This is possible (and already done by a few companies, like Redfin and flat fee companies), but the true impact of NAR is on the buy side, as well as the removal of commission percentages in MLS listing.
