Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)
-   -   Buyers Beware - Buying a Home Soon? (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/buyers-beware-buying-home-soon-351911/)

BrianL99 08-07-2024 05:05 AM
Quote:
Originally Posted by Bonanza (Post 2357204)
There is no "usual 5-6%" in real estate.
To express that is against the Sherman Anti-Trust Act.

Don't let the fact that federal courts have consistently disagreed with you through the years, get in the way of your opinion.

Hyland v. Home Services of America, Inc ? Re/Max, Int’l, Inc. v. Realty One, Inc ?

Bay Kid 08-07-2024 07:18 AM
Government control coming to your business soon.

CoachKandSportsguy 08-07-2024 07:24 AM
Quote:
Originally Posted by BrianL99 (Post 2357182)
Anyone who suggests they know how this is going to play out in the long run or what's going to be required when you try to buy a home next month, is speculating. I talked with the president of a state association of realtors, this morning. They're still unsure of the implications and aren't even close to having a set of documents that comply. if they're not really sure how to comply, I doubt many posters on TOTV know.
Totally agree!

That's what we are all spinning and hashing about on TOTV, like the pub/club gathering of friends all arguing their own interpretations of events as personal experts from their own non professional experiences.

Plinker 08-07-2024 07:49 AM
Quote:
Originally Posted by Bonanza (Post 2357204)
There is no "usual 5-6%" in real estate.
To express that is against the Sherman Anti-Trust Act.
Really? Every home I have sold, the realtor wanted 5 or 6%. Have these realtors all violated the Sherman Anti-Trust Act?

Donegalkid 08-07-2024 11:07 AM
Quote:
Originally Posted by Snakster66 (Post 2356656)
No one is required to have a buyer's agent. An individual can absolutely walk into a house and make on offer on their own accord.

The whole thing is about buyer's agent compensation. No buyer's agent, no compensation worries.
The settlement with NAR is designed to provide more transparency in real estate transactions. Simply, more complete disclosure of fees associated with transactions. Some experts believe — once the rules are in place and the market adjusts — that 1) the pool of buyers (particularly first time buyers) will be reduced (for the obvious reasons mentioned in many of these posts, specifically: many/most buyers will be paying up front buyer’s agents fees; 2) there will be some downward pressure of real estate commissions (that incidentally have always been negotiable) and 3) the rule changes may serve to depress real estate prices (e.g. market forces due to less buyers). So, greater transparency…perhaps leading to fewer buyers, depressed real estate prices, and perhaps less $$ for sellers despite the fact they may be paying slightly less in real estate commissions. Be careful what you ask for … if the above is not to your liking and you expected your real estate nest egg to keep appreciating (as was the case prior to the rule changes).

bshuler 08-07-2024 12:28 PM
For the layman, I suppose the CNN story below sums it up. There are class action lawsuits in the works to compensate some of those who bought homes. They (National Association of Realtors) have to dole out hundreds of millions of dollars per the settlement


CNN March 15: The 6% commission on buying or selling a home is gone after Realtors association agrees to seismic settlement

Lea N 08-07-2024 12:41 PM
Quote:
Originally Posted by frayedends (Post 2356713)
That isn't unusual now. But as a buyer you are entering a transaction unrepresented and since Florida doesn't allow dual agency the seller agent really has no obligations to help you out with info or anything.
Would hiring a real estate attorney make sense?

All of this seems to be going over my head. I'm missing something. It "was" that the percentage was paid for by the buyer and then the two real estate agents split the money, correct? So the commission was, prior to the new law added to the sale price of the home and paid for by the buyer. Now the seller pays a lesser percentage to his agent and the buyer pays a lesser percentage to their agent. Doesn't it really come out to the same thing in the end?

Forgive me if this sounds too simplified, but I'm not quite understanding it.

If a buyer contacted the seller directly as someone suggested then the buyer would not be represented by an agent. Would it benefit the buyer to have an attorney to look at the paperwork if they went this route? How would the seller's real estate agent respond to this? Is this really allowed?

retiredguy123 08-07-2024 12:50 PM
Quote:
Originally Posted by Lea N (Post 2357390)
Would hiring a real estate attorney make sense?

All of this seems to be going over my head. I'm missing something. It "was" that the percentage was paid for by the buyer and then the two real estate agents split the money, correct? So the commission was, prior to the new law added to the sale price of the home and paid for by the buyer. Now the seller pays a lesser percentage to his agent and the buyer pays a lesser percentage to their agent. Doesn't it really come out to the same thing in the end?

Forgive me if this sounds too simplified, but I'm not quite understanding it.

If a buyer contacted the seller directly as someone suggested then the buyer would not be represented by an agent. Would it benefit the buyer to have an attorney to look at the paperwork if they went this route? How would the seller's real estate agent respond to this? Is this really allowed?
If you hire an attorney, hire them before you sign the sales contract. After that, they won't be able to provide much help. The title company will ensure that the deed is clean and legally transferred. That being said, most buyers do not hire an attorney.

Villager1234 08-07-2024 02:46 PM
Buying
 
I am in contract to purchase a house It seems to be simple
I made an offer, they countered, I agreed. Signed contract, got inspection. Everything went smooth
The broker that I met at the house handled all of the paperwork. She said that she represented me but I think I represented myself.

CoachKandSportsguy 08-07-2024 03:41 PM
Quote:
Originally Posted by Villager1234 (Post 2357422)
She said that she represented me but I think I represented myself.
So since she represented you, she gets to keep the entire commission if the seller agreed to giver the buyer's broker a percentage as your buyer's broker?

sounds sleazy, like getting in the dual compensation prior to the deadline. .

And then if I have a real estate license, can I be a buyer's agent for myself and save some money? I think someone else had that same idea, so I am stealing nefarious ideas here.

Plinker 08-07-2024 03:56 PM
Quote:
Originally Posted by CoachKandSportsguy (Post 2357427)
So since she represented you, she gets to keep the entire commission if the seller agreed to giver the buyer's broker a percentage as your buyer's broker?

sounds sleazy, like getting in the dual compensation prior to the deadline. .

And then if I have a real estate license, can I be a buyer's agent for myself and save some money? I think someone else had that same idea, so I am stealing nefarious ideas here.
You are more than welcome to steal my nefarious ideas anytime you like! This is exactly the conclusion I came to after reading the post. A prime example of DOUBLE DIPPING that one realtor claimed wasn’t a term. This is why the FTC stepped in. Realtors have been far from transparent for decades and the terms of engagement needs to be clearly disclosed to both buyers and sellers and will save them big bucks. Unfortunately, I have my doubts that the majority of sellers and buyers will be current on this ruling and take advantage of the savings.

BrianL99 08-07-2024 04:53 PM
Quote:
Originally Posted by Plinker (Post 2357430)
You are more than welcome to steal my nefarious ideas anytime you like! This is exactly the conclusion I came to after reading the post. A prime example of DOUBLE DIPPING that one realtor claimed wasn’t a term. This is why the FTC stepped in. Realtors have been far from transparent for decades and the terms of engagement needs to be clearly disclosed to both buyers and sellers and will save them big bucks. Unfortunately, I have my doubts that the majority of sellers and buyers will be current on this ruling and take advantage of the savings.
I'm shocked that this thing gone so far and made so complicated.

In MA, NAR essentially uses a "2 step process", consisting of an "Offer/Acceptance" form, which clearly list the commission structure and who's getting what. Then you move to Purchase and Sale and anyone with a brain, has an attorney review/amend that, from the Standard Form NAR supplies. Also, any "conditions" are added. While the Offer Agreement says it's a "Binding Contract", it really isn't all that binding, but actually only an "agreement to agree" (subsequent P&S).

Commissions have ALWAYS been negotiable, in total and in "split". I would typically pay 5% and 3% would go to the Buyer's Broker, as they're doing the hard work in my opinion.

The Settlement "solution" seems way more complicated than it has to be.

SoCalGal 08-07-2024 06:55 PM
Quote:
Originally Posted by retiredguy123 (Post 2356645)
That is what I would do, and it would not include a buyer's commission to an agent.
Then your pool of potential buyers will be considerably reduced.

Pairadocs 08-07-2024 11:58 PM
Quote:
Originally Posted by APovi (Post 2356627)
Home Buyers Beware!
Buying a home?
Your favorite Realtor is now 'handcuffed' by the ongoing NAR Lawsuit Settlement.
You will have to sign, first a "Pre-Showing Agreement", then the 'Showing Agreement" before you can look at any listings.
And also there is a "Compensation Agreement" which dictates how and how much they will be paid. (By You?)
The 'Showing Agreement' allows them to review your credit report, demands that you disclose the fact that you have or will be working with another Realtor and, what scares me most is this "indemnifying and holding the Broker harmless from losses, damages, costs, and expenses of any nature" because of (what they deem to be) your 'negligence, misrepresentation, or default on these agreements'.
Paying a Buyer Broker, though not typical, is nothing new.
These new forms are way too wide-ranging and complicated to spell out here.
If you use a Buyers Broker, you're on the hook for a fee.
They can't collect their fee, which exceeds WHAT YOU PROMISE THEM from anyone else, so it's likely to be a lot of money..
My advice, never sign anything without a prior review by your lawyer.
Also be aware that, while the Listing Realtor acts exclusively for the Owner/Seller, they are not required to use any of these forms, nor should they charge you a fee/commission.
Stay Safe !
My advice, calm down. If all these things you are fearing have you that upset, just hire a local attorney (not a villages attorney), to look over what YOU wish in your search for a home. Sorry, not trying to disparage you or disrespect you in any way, I KNOW it pays to be cautious, but in some ways your frantic "tone" seems to suggest you are getting way too upset over many things that you CAN prevent happening to you. Calm down (hope you don't resent this, I am not a "snarky" person who posts to admonish others) and take a deep breath, and you might find out this will be a huge benefit to you and not the "sky falling" as you fear.

MightyDog 08-08-2024 05:15 PM
Quote:
Originally Posted by Lea N (Post 2357390)
Would hiring a real estate attorney make sense?

All of this seems to be going over my head. I'm missing something. It "was" that the percentage was paid for by the buyer and then the two real estate agents split the money, correct? So the commission was, prior to the new law added to the sale price of the home and paid for by the buyer. Now the seller pays a lesser percentage to his agent and the buyer pays a lesser percentage to their agent. Doesn't it really come out to the same thing in the end?

Forgive me if this sounds too simplified, but I'm not quite understanding it.

If a buyer contacted the seller directly as someone suggested then the buyer would not be represented by an agent. Would it benefit the buyer to have an attorney to look at the paperwork if they went this route? How would the seller's real estate agent respond to this? Is this really allowed?
Let me help you out - some of your info quite wrong. I'm speaking about how things have been for ages (not talking about the new stuff). Regarding bolded, above...the home SELLER pays all commissions, it comes from the proceeds of their sale. Also, commission IS NOT added to the sale price (that would obviously mean the buyer paid all the commission) And, to clarify, it's not always "a 50/50 split". The seller, when hiring their agent negotiates what the total commission will be and what the "split" of that fee will be.

People really need to think about that when listing their home and hiring their selling agent. Because if a buyer appears with no agent on their side (like I do when buying) then why should that selling agent get the full 5 or 6%, typically? That's nuts but, if a seller didn't consider that at the start, their agent will likely want them to stick to the contract as written which gives them the full $$ commission stated.

If a buyer contacted the seller directly as someone suggested then the buyer would not be represented by an agent.
I will be doing this in the next couple months. If the home is listed with an agent, I will contact the agent, if it's For Sale by Owner, I will contact the owner and I will work directly with either of those. I may contact an attorney to give the contract a look-over, just because I haven't bought in FL before. I MUCH prefer to negotiate myself and it has also saved me solid money on my buy prices in the past for the fact there is no agent to pay on my side.


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