[SoCalGal]

Originally Posted by BrianL99

Please, show me where I can find the new "Federal Law"?

You won't find it because it doesn't exist. The FTC is involved only to make sure that the settlement agreement actually does benefit someone or doesn't NOT benefit anyone.

[SoCalGal]

Originally Posted by Bay Kid

Commission fees are not the reason for higher prices. Homes will not be more affordable because of this government interference.

Ding! Ding! Ding! Ding!

[SoCalGal]

Originally Posted by candacev

Please see Florida Statute that is in post 62

The FTC is tasked with ensuring that the class action settlement is not in conflict with any state laws. Florida may provide the incentive for the parties to return to the settlement table.

[BrianL99]

Originally Posted by SoCalGal

The FTC is tasked with ensuring that the class action settlement is not in conflict with any state laws. Florida may provide the incentive for the parties to return to the settlement table.

Originally Posted by SoCalGal

You won't find it because it doesn't exist. The FTC is involved only to make sure that the settlement agreement actually does benefit someone or doesn't NOT benefit anyone.

I think you're confused about the FTC's role and powers.

No one has left the table yet. The proposed "settlement" isn't a settlement, unless and until it's approved by the Judge ... who won't be looking at it until November.

[Normal]

The day is coming where agents won’t really be needed anymore. Everything can be done on line. Title companies can email and do docu sign for disclosures etc. The only real need for agents will be when someone is buying a home by proxy.

[BrianL99]

Originally Posted by Normal

Title companies can email and do docu sign for disclosures etc. The only real need for agents will be when someone is buying a home by proxy.

That's been going on for years. I've probably closed 10-12 properties in the last 5 years and only physically showed up at a closing, once.

I haven't seen a real estate broker show up at a closing, in 5 years. No need.

[Plinker]

Originally Posted by BrianL99

"Sales people" are likely to never completely disappear from the American scene. There will always be people who are willing to lead the horse to water, for a fee. This is why I believe the "Listing Broker" is doomed to extinction.

I can foresee a scenario where their are "Listing Agents" that go take pictures, help stage homes if necessary, help prepare disclosure agreements and then manage the online visibility of a listing. In fact, that's primarily what Listing Brokers do these days. The "Broker" is out soliciting business, while the Broker's assistants are doing all the heavy lifting on the selling side. Let's face it, they're not writing "real estate ads" like the old days. In most markets, "Open Houses" are out of style and everyone knows what's on the market, 5 minutes after it shows up online. Listing brokers have little or nothing to do and quite honestly, are vastly over-paid these days.

On the other side of the equation, the "Selling Broker" does all the heavy lifting. Has to babysit the buyer, educate the buyer, show 20 houses, help arrange financing and sometimes insurance and other facets of the sale. The Selling Broker does the hard work and it's time intensive. I think they're entitled to the lion's share of any commission involved.

I think you're going to see total commissions settle in the 3%-3.5% range and the Selling Broker will get most of it.

The internet and the real time availability of information is taking over businesses we never thought would become "personless". Tesla has sold 4,500,000 cars, without ever paying a sales commission. Who would have thought? Carvana is selling vehicles from vending machines and some of those cars, cost more than homes did 15 years ago. Whoever thought women would buy clothes, without trying them on? Online women's fashions are now the norm.

I think the Listing/Marketing is going to become a nearly automated "clerk's job" and Selling Brokers are going to become "Sales Consultants" for a fee and probably operate the Title Company, in the next office over.

Good post. I agree that total commissions will likely settle in the 3 - 3.5 range. The agents that cling to the 5 - 6 range may find it difficult to solicit business if they don’t change their mindset. As I said before, evolve your business model or perish.

[Plinker]

Originally Posted by SoCalGal

Yes. Which is why this new arrangement will barely change anything. No one works for free. If a buyer's agent calls the listing agent and the listing agent says, "The seller won't pay a buy-side commission," the buyer will simply tour other listings that will pay his/her agent.

Why is this? Well, there are very few buyers who will want to deal with multiple listing agents. They want one agent who will assist them with identifying houses they may wish to tour and then make an offer.

BTW, there's already a get-around. The new MLS cannot contain a column for "BAC" [buyer's agent commission], so the listing agent will merely price the listing as (for example) "$150,125 (meaning 1.25% BAC) or $150,250 (meaning, 2.5% BAC) or $150,300 (meaning, 3% BAC). Thus, they're signaling the BAC without the BAC column.

If the new ruling is finalized, would you refuse to accept a listing if the seller offers you 3% and makes it clear they will not pay any buyer agent fees?

[massachusettskid]

Florida law allows for transactional brocade which means if the selling agent has both sides of the transaction he then becomes a neutral party to both the seller and buyer. They can not divulge information from seller to buyer or buyer to seller.

[massachusettskid]

True but VLS agents are GOVERNED by Florida Law as they have Florida Real Estate Licences issued by DBPR

[jmac1031]

THE LAW EVERYONE HAS BEEN TALKING ABOUT IS NOT A LAW WRITTEN BY ANY LAW MAKER IN ANY STATE! IT IS THE RESULT OF A COURT RULING NEGOIATED BY THE NATIONAL ASSOCIATION OF REALTORS ON BEHALF OF THEIR MEMBERS AS THE RESULT OF A CLASS ACTION LAWSUIT! IT WAS THE AGREEMENT MADE SO INDIVIDUAL MEMBERS WOULD NOT BE ON THE HOOK FOR THE PENALTIES. The NAR settlement came about following a federal class-action antitrust lawsuit, Burnett v. National Association of Realtors et al., initiated in Kansas City, Missouri.
NAR's $418M SETTLEMENT.

[Bonanza]

Originally Posted by BrianL99

You've apparently lead a very sheltered life in the real estate business, as many states and situations, mandate a fiduciary relationship with one party or the other.

No, I've not led a sheltered life at all. All the agents I have worked with in my career have been transaction brokers.

So much for your knowledge regarding mandating a fiduciary relationship with anyone!

[Bay Kid]

Originally Posted by Normal

If commissions are tacked on to a price tag for a home, how does that not increase the cost of purchase, or the comp price for a neighborhood? If a seller wants 400 K for a house and they charge 424 K for a house, the new comparison is 424 K. The increase would be 6% additional in “value” to satisfy the exorbitant amount charged by an agent.

Agents do not tack on a commission. They give a seller a cma which will have a range of value for the home. The seller picks the value they desire and a commission is negotiated at the time of listing. The buyer agent split is included and understood at this time. Most sellers want their agent to find the buyer. There is much upfront cost, advertising, etc. Contrary to what most people believe most agents only make a modest living.

[Normal]

Originally Posted by Bay Kid

Agents do not tack on a commission. They give a seller a cma which will have a range of value for the home. The seller picks the value they desire and a commission is negotiated at the time of listing. The buyer agent split is included and understood at this time. Most sellers want their agent to find the buyer. There is much upfront cost, advertising, etc. Contrary to what most people believe most agents only make a modest living.

The agent, may make a modest living, but the real estate “AGENCY “ does very well for itself. Flat rates instead of percentages would be more fair for everyone. Not 60k for selling a million dollar home in a month.

[Plinker]

Originally Posted by Bonanza

No, I've not led a sheltered life at all. All the agents I have worked with in my career have been transaction brokers.

So much for your knowledge regarding mandating a fiduciary relationship with anyone!

If the new ruling is finalized, would you refuse to accept a listing if the seller offers you 3% and makes it clear they will not pay any buyer agent fees?
I asked this question to another agent posting but no response was forthcoming.