The National Association of Realtors (NAR) has published new resources designed to help consumers understand the changes brought by the Sitzer/Burnett settlement agreement.
The new resources are available on facts.realtor and include the following offerings:
- Fact sheets on how what homebuyers and home sellers should expect after the settlement goes into effect on Aug. 17;
- A broker’s guide to upcoming practice changes that includes an overview of the settlement, information on corresponding practice changes and implementation, and guidance on how to help consumers understand what these changes mean for them and their homebuying or selling transactions; and
- A template compensation disclosure for active listing or buyer agreements that can be used for active agreements as of Aug. 17.
“Prior to and throughout the settlement litigation, NAR has remained committed to protecting consumer choice and transparency, and to making homeownership accessible for all Americans,” said Nykia Wright, interim CEO of NAR. “With these new resources, realtors are even better equipped to inform and empower consumers and continue to demonstrate the value they bring to real estate transactions.”
I will never understand the laziness of agents. Why are we even bothering with this. It’s just for the NAR if we just left and created our own, it would be the same as usual. We wouldn’t have to go through this garbage because they can’t handle their own mess. They’ve basically dumped all of this on every agent in the country and all we have to do is create our own MLS, problem solved
I think the same and NAR never requested any information for an opinion on the matter they just notified they setteled it and this is what you all have to live with, my opinion NAR has violated the trust of every broker/agent in the country and needs to held accountable.
AGREE!!!
Agree!
Nicholas,
Watch just about any episode of Shark Tank. The investors will always say that they will never try to bring a product into certain markets that are highly controlled by big companies. Such as dairy, perfume, soda etc. we would get squashed like a bug. Having said that, I do like your thinking. We all need to think more.
Exactly, NAR blew up the room and basically told us all to figure it out on our own. Meanwhile keep paying your dues.
If it is that simple why doesn’t somebody start this? I don’t think is that simple.
I actually have always resenting having to be a member with mandatory dues. I see no value for me or my business as a Realtor and the public could care less. The value I think is in the PAC.
@Nicholas & @Elena, agree. NAR threw its members under the bus. This buyer agency commission BS has only muddied the waters, added more forms, resulting in confusion and creating more risk for brokers & their agents! Meanwhile how many headlines have we’ve seen regarding various boards across the nation being attacked, in litigation. This seems to be by design since it’s not making sense, happened quickly, and makes the independent contractor (realtors) the losers, while jeopardizing home ownership – signs of globalization. It’s always done in incremental steps so you don’t notice until it’s too late.
Ditto. Couldn’t agree more.
1. Many buyers can’t afford the agency compensation.
2. The buyer will have to tell the buyers agent don’t show me homes where the seller isn’t paying the buyers agent.
3. Buyer agents will have to verify with listing agents that the seller is paying compensation to the buyer agent.
4. If the seller isn’t, the buyer doesn’t look at the property.
So how long will it be now that lawyers find sellers who sue brokers for “steering” away from sellers who aren’t paying compensation.
Not long.
exactly!
I just think buyers will work directly with listing agents, to bypass the bullspit. JMO
The listing agent also must have a Buyer Broker Agreement in place prior to showing the property
Good points Dan.
1. I have found that most buyers do not have sufficient cash on hand to pay buyer brokers, even those buyers who have very high incomes. If you accumulate a lot of money in your checking account, the logical step is to put it in some 401K or a CD. There are penalties to pay if these funds are prematurely cashed in.
2. As I understand we, as agents, are not allowed to sort listings according to what compensation we receive. We are obliged to tell the buyers about any available property, even if there is no chance that we will be paid. We can call a listing agent who might tell us, yes the Seller is willing to pay 2.5% or whatever. That is not a contract, just a verbal phone call. The problem is that it is time consuming to locate, say 6 properties, then call each of the listing agents to learn the compensation, if any. Not many people are quick to answer phones these days. It could take days just to plan a few showings.
Finally, I have read that the secondary mortgage markets (FNMA, FHA, VA etc.) have not, at this time, allowed for commission payments to be added to a buyer’s mortgage.
I stop being a realtor bunch of extortion you do not need to me a member of that group with the Internet you have the power to do what ever you want.
NAR has sold their Agents out! I hope they get decoupled sooner rather than later!!
I represent a seller and I received my first call yesterday from a buying agent asking me if my seller is paying the buyers commission she even admitted to me this was a difficult request and didn’t feel comfortable asking the question, but it was important to her and felt that she needed to inquire. I have to agree with her. We had a short conversation and I was pleased to tell her that. Yes the seller in this listing is paying for the buyers commission. I hope it gets easier, especially when I’m representing a buyer.
The NAR and its attorneys have ruined our profession. They will be replaced, but unfortunately they are hurting a lot of our colleagues and the public.
In my opinion, if you really look at it, this is just business as usual, but it’s just documented differently. I believe that the majority of the responsibility is on the listing agent to educate their client in that manner. I believe if we all adopt this mentality that there will be little to no change in our business. I also think that this is going to thin the herd of those that see these changes as an obstacle. Think about the opportunities and have the right attitude if you want to last. By the way, I’ve lasted in the business for 25 years and have seen many threats to our industry. People want professionals to handle the sale of their home. Period.
All very great points. Focus on our business. Educate buyers and sellers. We will be fine after a small learning curve. NAR is not paying me to work. My customers are and always have.
Since NAR threw every Broker and every Agent under the bus, I don’t understand why Brokers are not pulling out of NAR. Why are we paying so much money in dues when NAR didn’t really look out for our best interest? Part of the problem is that most MLS’s require membership in NAR and the local boards. Agents really should speak to their Brokers about pulling out of NAR and about getting all the MLS’s to allow membership without requiring us to be a member of the local boards and NAR. In addition, Brokers should request that all our listings should no longer be displayed in Zillow, Trulia, Realtor.com, and the internet. With all our data on the internet, we have lost our value in the eyes of consumers because consumers think they know everything by researching the internet. Plus, Zillow and other companies have gotten rich off the backs of Real Estate Agents. Real Estate Agents and their Brokers need to take back their control of their own listings from these big companies and organizations before it is too late.
I agree NAR did not fight the good fight. We will lose many first time buyers and then they will need government assistance and it will be another tax payer expense. I’ve been a major investor in RPAC for many years. They will not get another dime from me.
NAR protected all buyer agents that ever collected a fee (set by the listing agent and seller) from legal action against them for not negotiating the fee they were paid directly with the buyer that they represented. – Which is probably most every agent that is a member of NAR.
Time to now step up and negotiate your fee as a buyers agent directly with the buyer you represent. (same as securing a listing). This opens up the entire housing market to you as a buyers agent! Don’t make the awkward call to the listing agent. Any incentives the seller may offer to make their property more attractive to the buyer need to be made to the buyer – NOT the buyers agent. The code of ethics we all agreed to states we do what’s best for our client – not us as the agent.
Simply present your buyers offer to purchase requesting a seller concession to fund the fee you negotiated with your buyer. (same as asking to cover any other closing costs your buyer may need).
This is the path forward.
Professional agents that are able to communicate their value to their buyer clients will gain market share. Those that cannot possibly should not be representing buyers to begin with.
This is a big change but not that hard. Agent fees have always been part of the transaction cost and disbursed at the closing. A seller will continue to only care about their net proceeds same as they always have and always will. A buyers agent will still be needed and can still get compensated for their value. Will it take a bit more work to communicate this value? – Yes! If you can’t communicate this value will your compensation be less? – Yes. Will this thin the agent count? – Yes. Same forces working here as any profession.
Raise the bar and move forward – if you make the call to the listing agent – ask what the seller is offering to incentivize your buyer – NOT you. Or better yet – simply place what your buyer needs help with in your offer and it will all get worked out thru the negotiation process that we are being paid to do!
Double dipping… if my fee is 5% with no buyer agent fee then buyer agent pays minimum of say 2% that a 7 right there
And Yes All associations are corrupts in the upper levels as well as the 3 n 4 letter govt agencies.. creating socialism full speed ahead!
Hey people!!!!!
Good mood and good luck to everyone!!!!!
Ironically it was suppose to be about disclosure and yet now there is no disclosure. So weird! So stupid!
The fee is the fee is the fee. Generally the fee is paid to the listing agent. If the listing agent agrees to pass along a portion of its fee to a cooperating buyer agent, then that is the choice. Just have to check with your State laws. Different states have different regulations.
NAR has looked the other way for years while the real estate gravy train chugged along. The next lawsuit is going to be even worse than this one. Buyers are starting to see that their agent’s actions were to recommend an escalation clause and outbid the other buyers, not by one or two thousand dollars but by tens of thousands. And guess who paid the buyer’s agent – yes, the seller, who reaped the benefit. You think they threw us under the bus fast before! Now they’re going to back over us.