[retiredguy123]

Originally Posted by CoachKandSportsguy

If the seller refuses to pay the buyer's agent, then the buyer has to cough up the 2-3% or whatever the agreement is. If the buyer can't roll that into the mortgage, a buyer will have to save for a 20% down payment and a 3% agent fee. On the Average $450,000, that's an extra $13,000 + out of pocket. That just might change what a buyer can buy, and may reduce the potential buyers who aren't real estate savvy enough to buy it themselves.

Yes, this agreement is about eliminating dual agent roles, as well as compensation for each role. The problem is not the rules, it's always about the implementation with legal agreements and state laws.

I read one real estate agent, who was also a lawyer, mention a suit in progress:
One person bid on a house with a buyer's agent. Didn't get the house, but the buyers agent had them sign a 6 month exclusive agreement in the offer letter. Then the buyer's agent wouldn't release the buyer after the failed bid. . off to court! (and don't ask me for details or suggest that everyone would catch that! I have personal examples of lawyers not signing documents during meetings to sign documents)

Again, all in the implementation and execution of agreements. And dealing with hoomans.

I agree. This whole issue was caused by real estate agents who pretend to represent a buyer when they really don't. How many times have you heard a buyer refer to the agent who is showing houses to them as "my agent", when the agent legally represents the seller? This was a fraud. If a buyer wants legal representation, they should hire their own agent and pay them a fee. Hopefully, this new arrangement will stop agents from defrauding buyers.