jflournoy
Active Member
Personally, I'm not sure there's really going to be all that much change, but it's early days and there's a lot of confusion about the details right now. Anyone who says they're sure "this" is going to happen or "that" is going to happen is someone you probably shouldn't listen to.
May be a few new forms that have to be signed. Buyers agents aren't going to work for free, and all buyers aren't all of a sudden going to start flocking straight to the listing agent (I wish) to represent them in the sale. Buyers for the most part aren't getting repped for free already because a lot of sellers factor in a higher listing price because of what they know they're likely to pay in realtor fees. No, maybe those dollars don't come straight out of the buyer's pocket in the form of a direct fee to the buyer agent repping them, but they come out of the buyer's pocket in one way or another. Sellers who think all of a sudden listing agent commissions are going to drop through the floor also might want to hold up on that thought. Buyer agents are an important part of the process for getting real estate sold. And as I said before, buyer agents aren't going to work for free, and the good ones aren't going to work for peanuts either. That means someone has to pay them. Might be a shock to the system for buyers to be told they're going to pay this huge fee all of a sudden to use a buyers agent. Easier to get sellers to agree to compensate buyers agent, just like it's always functionally been, except the buyers agent compensation has been something worked out between selling brokerage and buying brokerage, not between landowner and buyers agent. How that is done may change some, but if buyers agents aren't still an integral part of the sales process, properties are going to spend more time on the market and there's a good chance that could affect sale prices to the downside. Buyers of course would love that but sellers not so much.
My guess is it's going to be a lot more of "perceptional" changes than actual reality based changes. Maybe some of the less serious "side hustle" buyers agents may drop out of the game, and that would actually be likely to be an actual benefit to both buyers and sellers. But beyond that....the truth is the system works the way it is, and I'm not sure but what this is a "solution" to a "problem" that....didn't really exist.
May be a few new forms that have to be signed. Buyers agents aren't going to work for free, and all buyers aren't all of a sudden going to start flocking straight to the listing agent (I wish) to represent them in the sale. Buyers for the most part aren't getting repped for free already because a lot of sellers factor in a higher listing price because of what they know they're likely to pay in realtor fees. No, maybe those dollars don't come straight out of the buyer's pocket in the form of a direct fee to the buyer agent repping them, but they come out of the buyer's pocket in one way or another. Sellers who think all of a sudden listing agent commissions are going to drop through the floor also might want to hold up on that thought. Buyer agents are an important part of the process for getting real estate sold. And as I said before, buyer agents aren't going to work for free, and the good ones aren't going to work for peanuts either. That means someone has to pay them. Might be a shock to the system for buyers to be told they're going to pay this huge fee all of a sudden to use a buyers agent. Easier to get sellers to agree to compensate buyers agent, just like it's always functionally been, except the buyers agent compensation has been something worked out between selling brokerage and buying brokerage, not between landowner and buyers agent. How that is done may change some, but if buyers agents aren't still an integral part of the sales process, properties are going to spend more time on the market and there's a good chance that could affect sale prices to the downside. Buyers of course would love that but sellers not so much.
My guess is it's going to be a lot more of "perceptional" changes than actual reality based changes. Maybe some of the less serious "side hustle" buyers agents may drop out of the game, and that would actually be likely to be an actual benefit to both buyers and sellers. But beyond that....the truth is the system works the way it is, and I'm not sure but what this is a "solution" to a "problem" that....didn't really exist.
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jflournoy
Active Member
Only speaking for myself here, but the time prior to the listing going live when realtors are actually allowed to reach out to buyers directly is the time you're trying to find a buyer directly that will come through the listing agent, not through another buyers agent. Other buyers agents see the listing once it goes live to the MLS or on-line at some of the main land sites if that agent isn't a member of the MLS.
jflournoy
Active Member
This never ceases to amaze me. Every seller can certainly make their own decision, but some sellers are so biased against the idea of using a realtor that they really do shoot themselves in the foot - and don't even realize it - by going For Sale by Owner just to save on paying a realtor commission. The advertising reach of listing with a good land agent just puts a lot more eyeballs on the property for sale. More eyeballs mean more potential buyers. More potential buyers means more potential demand and price competition. More demand and price competition means good chance the seller walks away with more money in his pocket even after realtor fees. It's not really rocket science, but it is a pretty common misconception among some landowners. I'm not saying selling with a realtor guarantees the seller more money in the pocket on closing day, but in a lot of cases it ends up that way if you use a good land agent, since we're talking about land here.
Windlooker
Well-Known Member
Years ago I was trying to buy a piece of land in Wayne County. I contacted the listing or sellers agent. I quickly realized my offer was never presented to the owner. The listing agent didn’t like my number. So, I acquired my own agent to ensure my offers and interests were looked after. I would never buy without my own representative. As I write this a piece near me in Dallas County is pending near me. The buyer does not have his own agent. The piece in question has been pending and has been relisted twice before with the listing agent not advising the new buyer of the reasons. There are issues with the piece in question You need a rep imo.
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I've just never felt the need to have somone represent my position for me. I very intentionally go directly to listing agent. It is not supposed to influence things but I 100% beleive a better deal can be had doing things this way. The agent is looking at keeping full commission for themselves. Whether they will admit it or not they would 100% rarher keep all the money for themselves and MAY be more inclined to recommend a deal for their client. Human nature.There’s a lot of buyers that work with an agent for years. The agent has knowledge and experience of the area and they trust that. They feel they are represented with negotiations, disclosures, home inspections, past history of the home, etc..
I will use my wife as example, she has a long client list, and she knows the homes in the area, and the market & will be honest with her clients on price and quality of home. She steers buyers away from expensive overpriced homes for example. We see many buyers get burnt in this type of market .
I also sell real estate, but mostly land. I’ve seen many for sale by owners leave 100k-300k on the table … to avoid a commission. Just saw one a month ago, that sold for $3600 an acre and it was worth $5200 an acre .
Im a farm “junkie” so my knowledge of land/farms is better than 99% of the realtors in my area…. so some buyers use me regardless and they will get the whole land review if they buy through me . If we walk a farm, I can also point out what the new owner could do with the farm and what programs it might be eligible for, what type of hunting to expect, cash rents, CRP, types of trees.
We have realtors in this area that post listings such as … “CRP is guaranteed renewable, and you can put in “feed plots”
You want them to represent you ??
It’s a free market society and commissions are negotiable as they always have been. We don’t charge 6%, it usually ends up 4% and we make a living at it . To be honest 3% would work, but anything less and it’s tough to make a living unless you have incredible volume. We spend 24k just in advertising every year and insurance is very expensive.
That’s just my feedback.. I am sure the commissions will drop and some realtors will leave the market —& that will be a good thing overall in my opinion!
I could see using a buyers agent if you were making a cross country move for a house or somthing and didn't have familiarity with the local area and market. THAT makes sense to me.
I think I've had a buyers agent twice on 40ish purchases between houses and farms and it was only because they brought the deal to me.
jflournoy
Active Member
This kind of thing certainly happens, but in that sort of situation the listing agent violated their responsibility to the seller to present all offers. What would have been better was for him to tell you he thought it was unlikely the seller would consider that offered number, but that if you still wanted to make the offer, he would present it. Didn't even have to be in writing, could just present the offer verbally to the seller at first so as not to waste anyone's time. It's that kind of thing, though, why in some cases buyers do feel more comfortable with their own representation. I've called on a property before as a buyer's agent and the listing agent never returned my calls, texts, or e-mails. Has happened several times. That's another example of the listing agent violating their agreement with and responsibility to their sellers. As a listing agent I would love to have 100% of buyers come through me, not a buyers agent, but that's not reality, and the system has a harder time working to the benefit of all parties involved if listing agents (or buying agents) are looking out more for their own interests than those of their client.
Windlooker
Well-Known Member
I can tell you if it were not for my agent when I bought my house in Iowa several issues would not have come to light. The listing agent does not care about you. They want the property sold and a commission. That’s common sense.
The piece I talked about in Dallas Co has been looked at twice by developers and has fallen through due lack of access and the fact that county planning and dev will not approve a sub div unless a new road is built to replace a single lane road that can’t handle opposing traffic. The newest prospective buyer visited me last week as I border the piece. He did not know about the other developers and the fact the county will not approve as is. The listing agent did not tell him. This guy wants to build a house and sell off lots to lessen his nut.
The piece I talked about in Dallas Co has been looked at twice by developers and has fallen through due lack of access and the fact that county planning and dev will not approve a sub div unless a new road is built to replace a single lane road that can’t handle opposing traffic. The newest prospective buyer visited me last week as I border the piece. He did not know about the other developers and the fact the county will not approve as is. The listing agent did not tell him. This guy wants to build a house and sell off lots to lessen his nut.
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jflournoy
Active Member
I will admit it, I'd rather make more money than less money. Fight me.
No seriously, everyone has their own needs, you feel comfortable going direct to listing agent, some people absolutely feel more comfortable using a buyers agent, especially if buyer is from out of area and isn't as familiar with things or doesn't have time to just pop down spur of the moment and look at the property, needs a "boots on the ground" report from a buyers agent who might be more inclined to be more objective than a sellers agent. Then again, sometimes buyers agents definitely have an agenda as well and that agenda is "get buyer to buy this property", so....just because a buyer has a buyers agent doesn't mean they're *necessarily* getting objective/independent representation. Whether it's the listing agent or the buyers agent, they still have to be committed to serving their client honestly and ethically for sellers and buyers to get the representation they signed up for. Like buying anything else where you are trusting someone to represent your best interests, do your due diligence. Like in any industry that has sales reps, there are good realtors and bad realtors. You find a good one, better hang on to that relationship.
jflournoy
Active Member
Speaking as someone who acts as a listing agent more often than a buyers agent, I just want to say this is definitely not always the case. A good realtor (whether listing agent or buyer agent) knows that if they're going to have long-term success in this industry, you better treat people right. If you do, it will definitely benefit you in the long run, and if you don't, it will definitely catch up to you eventually.
My dad has been in the business of buying and selling real estate since I was knee-high to a grasshopper, and one thing he has always told me is that he always makes it a point to tell potential buyers the *negative* things about the property right at the outset. After getting that out of the way, things can only go in a positive direction, and it establishes a level of trust with him that the buyers might not have had otherwise. I know he has gotten many new customer referrals specifically because he has a policy of telling the bad right along with the good. Buyers know he's not going to jerk them around.
Hardwood11
It is going to be a good fall!
Reputation, repeat business, respect, honesty and integrity….This is a cut throat industry and you need those all of the above or you want last .
If you worry about your commission only you won’t last in this business. Buyers and sellers are smart and they will sense that in a hurry!
*** My wife looked at past sales and 60% of our house listings are sold by other agencies. The MLS is competitive!
Our agency just sold a 25 acre hobby with beautiful woods, pond, 8 acres of crop land with a run down house. There were 30 showings and 9 offers from 9 different realtors.
The buyer chose an offer from a young couple that wanted to restore the home and live there…and they were represented by another realtor. It all worked out great for the buyer and seller.
Regardless now if you go to the listing agent you’ll have to sign a buyers agreement with them to have him represent you as a buyers agent or you can’t see the property. If the sellers are willing to pay his commission then you won’t have to pay anything but if they don’t offer that it’s on you. I would assume things would mainly stay the same, as in the sellers will still most likely pay the commissions, but now realtors(that are members of NAR)are required to get a signed buyers agreement before they can show a property to a client or they can be fined.
Likely only for investors making over $1M /yr. With that said, would be nice if that threshold was even higher.
Likely only for investors making over $1M/yr. With that said, would be nice to see that threshold even higher.
