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There are several lawsuits in the pipeline that raise federal antitrust issues regarding price fixing collusion between NAR and major real estate brokerages on agent commissions. Some major law firms have piled on seeking a piece of the action.
Old news. Without getting into the details they'll have to amend the suit, but it will see it's day in court. Given the information, I feel facts fall on the NAR/RE side fof the fence.
NAR helped bring this amateur lawsuit on themselves with the stupidity of COE Standards 12.1 and 12.2. "Buyers Agency is FREE because sellers pay."
NAR should have evolved more quickly to recognize buyers' agent fees as buyer expenses, and to correct the CFPB who designated buyers agent fees as seller expenses.
NAR should have for years lobbied for lending parameters that allow buyers to roll agent fees into their loans accurately, as buyer expense.
Additionally, NAR has turned a blind eye to unsupervised and/or unethical agents who openly refer to "discount agents" and to "standard commissions," and who openly state that they will not show properties listed by agents using alternate models.
Of course, looking forward, unless buyers are able to finance their agent fees properly and openly, many buyers will either not use buyers' agents, or only will buy lower priced homes.
Elimination of buyers' agents, and a trend to buyers working directly with a listing agent who has fiduciary duties to the seller only will disserve a great many buyers, and particularly first timers.
Reducing the value of all current properties by an amount equal to the local most common cobroke commission rates will not help cash strapped buyers purchase, unless they are able to openly roll in their commissions to their loans.
So, a victory by the complainant has potential to reduce property liquidity and to reduce access to insights and advocacy for buyers who decide to go directly to listing agents to purchase.
The likelihood of a settlement that truly offsets those effects is low.
The lawsuit is certainly BS.
NAR is also certainly guilty of BS.
Eagerly watching to see the legal process unfold.
But, as the vapid report by CNN goes viral, the Court of Public Opinion will continue to weigh in.
I use to split 50/50 with buyer agents. But, I realized I’m worth more, so I give myself more than what I offer to a buyer agent. Besides, why would a buyer agent (or, really, their broker) allow their compensation to be completely controlled by an outside brokerage or a home seller? Seems like a bad way to conduct business. Additionally, if they really are limiting what properties they’ll show their customer, based on the offered commission, aren’t they really making themselves work harder (and longer) for their buyer?
NAR FAQ for members regarding Moehrl suit:
https://c-3sux78kvnkay9x24yvggx78x2eius.g01.msn.com/g00/3_c-3ccc.syt.ius_/c-3SUXKVNKAY9x24nzzvyx3ax2fx2fyvggx78.iusx2fcv-iutzktzx2favrugjyx2f8675x2f61x2fTGX-skshkx78-LGWy.vjl_$/$/$/$/$/$?i10c.ua=5
I use to split 50/50 with buyer agents. But, I realized I’m worth more, so I give myself more than what I offer to a buyer agent. Besides, why would a buyer agent (or, really, their broker) allow their compensation to be completely controlled by an outside brokerage or a home seller? Seems like a bad way to conduct business. Additionally, if they really are limiting what properties they’ll show their customer, based on the offered commission, aren’t they really making themselves work harder (and longer) for their buyer?
From an outsider's perspective, it actually seems like the buyer's agent does much more "leg work" than a listing agent.
You put it on the MLS, have an open house or two, and do some marketing.
We dragged our buyers' agent to probably a dozen different homes, some more than once, before we purchased.
From an outsider's perspective, it actually seems like the buyer's agent does much more "leg work" than a listing agent.
You put it on the MLS, have an open house or two, and do some marketing.
We dragged our buyers' agent to probably a dozen different homes, some more than once, before we purchased.
Why are you "worth more" as a seller's agent?
What I didn't do in my post was compare my job as a seller's agent to that of a buyer's agent. I also didn't share what total % of purchase price I get in my listing agreement with a seller. But, to answer your question, "Why am I worth more?" Since I'm only selling properties that I've managed for several years, I have a lot more work to gather property-related information, since the seller has long forgotten much of that information (if they ever knew it at all). Also, in some cases, I'm performing a balancing act with selling a property that is still tenant-occupied, which requires a considerably higher level of communication and coordination.
We each have different roles. As long as a buyer's agent relies on the offered compensation by a cooperating broker as their sole source of income, then they're setting up themselves to work for free, in the hopes that the hard work will pay off. Some day.
@Diana Holbrook. I'm glad you got some humor from my post. Shall I presume you're a buyer's agent?
@Diana Holbrook. I'm glad you got some humor from my post. Shall I presume you're a buyer's agent?
I usually prefer being a buyer's agent, but I do both.
Most listing agents in our area split 50-50 and I think that is what the spirit of the cooperative agreement in the MLS intended.
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