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My understanding is that even 30 years ago buyer's agents weren't a common thing, and buyers usually either worked with the listing agent or on their own - how much was the usual listing/seller's agent's commission then?
30 years ago buyer agency was legalized in Colorado.
I do a lot of work in rural areas, but this is not a culture or practice I've ever heard of - where are you seeing this opossum?
I hadn't noticed OP's name and when I read this thought that "opossum" was a real estate term for dual agency that I'd never heard. I may start using it as it does have a certain cachet.
LOL. Opossums are cute animals. They're no double-agents.
I wonder if listing agents took 6% or was it just 3% before buyer's agency appeared 30 years ago.
And how buyers avoided problems...30 years ago is very recent time. May be the whole practice was different and real estate transaction was less legally complex and lawsuit-fraught.
LOL. Opossums are cute animals. They're no double-agents.
I wonder if listing agents took 6% or was it just 3% before buyer's agency appeared 30 years ago.
And how buyers avoided problems...30 years ago is very recent time. May be the whole practice was different and real estate transaction was less legally complex and lawsuit-fraught.
The issues with single agent real estate agency were significant, and buyers' agency was a blessing to the transaction integrity.
The issues with single agent real estate agency were significant, and buyers' agency was a blessing to the transaction integrity.
I was able to pull some old newspapers and seems like (at least in some regions, like NY) under the old system there were 2 brokers/agents, both working for the seller: listing broker and selling broker or subagent, who split commission 50-50. The listing agent was marketing the property and selling agent worked closely with the buyer, but both were in contract with the seller and representing seller's interests. The commissions were around 6% on average, seems like, sometimes 7%. They also did something like this (now illlegal): if buyer could obtain a loan for more than what the seller agreed to, the excess went to the seller's side agent(s) on top of any commission, I guess this was buyer's side direct payment to the seller's agent.
Seems like it used to be as high as 10% in older times and then went down to 4-5% in certain discount situations in the 80s, but all was paid to seller's side representation.
Pre-internet, there was a lot more marketing involved on their side of course.
I was able to pull some old newspapers and seems like (at least in some regions, like NY) under the old system there were 2 brokers/agents, both working for the seller: listing broker and selling broker or subagent, who split commission 50-50. The listing agent was marketing the property and selling agent worked closely with the buyer, but both were in contract with the seller and representing seller's interests. The commissions were around 6% on average, seems like, sometimes 7%. They also did something like this (now illlegal): if buyer could obtain a loan for more than what the seller agreed to, the excess went to the seller's side agent(s) on top of any commission, I guess this was buyer's side direct payment to the seller's agent.
Seems like it used to be as high as 10% in older times and then went down to 4-5% in certain discount situations in the 80s, but all was paid to seller's side representation.
Pre-internet, there was a lot more marketing involved on their side of course.
"2 brokers/agents, both working for the seller: " and "but both were in contract with the seller and representing seller's interests."
Right. Buyers had no one on their side. Yet, Buyers would mention "their" agent, because they were never told that the selling agent was actually only selling FOR the seller, in the sellers' best interests.
Introduction of buyer's agency helped level the playing field.
That article also mentioned that "sometimes" buyer would bring their buyer's agent as well (so 3 agents total) and this buyer's agent might be paid a "portion" of commission (I guess otherwise buyer paid the buyer's agent directly whatever they agreed upon).
My guess the system really changed when internet listings became available. Seller's side doesn't have to much marketing anymore. I never would even consider the listings sent to me by a realtor (unless they're off-MLS listings), because it's so much easier to find listings on online sites, where I can use a map to eliminate a lot of deal breakers right away, just by zooming into the satellite map. Whenever agents setup "their" search for you it seems like they tend to ignore what's requested, also....you ask to set minimum lot size and they just send you listings with a lot smaller lots, etc. There're some areas of the country that still have no MLS, by the way, but the listing agents put these homes on sites like Zillow.
These guys I mentioned in the OP, I guess are really old school and never moved onto a new system, but also, if you think of a place with 2 or 3 brokers in the whole large area, and if one of them is more popular than others/can list more homes, they financially benefit from requiring dual-agency, notwithstanding any driving distances, so most likely it's a monopoly of one brokerage. Just odd that they don't even allow buyer to get own agent even within the same brokerage and force one-agent dual agency only.
LOL. Opossums are cute animals. They're no double-agents.
Have you ever seen an Australian possum? They are the cute ones in the possum family with furry tails and soft thick fur, quite unlike their northern hemisphere cousins. Best of all are the pygmy possums.
Run! Dual agency is not always a bad thing but if they aren't giving you a choice, red flags should be popping up in your mind.
Dual agency is illegal in some states. I thought in all states dual agency cannot be required (I would call your state's real estate commission and find out.)
Here in Tennessee when a buyer comes without representation. agents have to offer facilitation, assignment of another agent in the office to represent, or allow them to call any agent they want to enter into the negotiation (prior to offer acceptance, of course.) An agent has to get sign-off agreement from both parties to switch to facilitator or have someone else assigned to assist. I personally like facilitation because done correctly, both parties can talk to each other and really communicate. In this case the agent just answers questions and helps solve problems with suggestions to both parties.
In Ohio, dual agency is allowed. When I sold "by owner" I required the other party's agent to become a dual agent as part of the sale. I knew they probably weren't totally unbiased but it was better than giving them the legal right to take me to the cleaners. I was also experienced with contracts and real estate
Not sure what your post has to do with Real Estate, 1insider, but the pygmy possum is definitely cuteness overload. My experience with local Mid-Atlantic US possums is definitely "OMG a World of No. Eeek, Yikes!"
opposum1 - My Dad quit the big city rat race to retire to WV where the scenery was so beautiful, the land was so cheap, and he loved the freedom to live as you please. He too encountered the "we only do dual agency so take it or leave it" real estate agents. There were only a couple in the county. He found some great acreage on a hillside and a holler (hollow). Being an outsider, he did not know that the dual agency real estate agent was an immediate family member of the seller. He later found out that he had drastically overpaid.
These days buyers can research on the internet, but this does not always tell you what you need to know. I recommend that you search local real estate sales to get a better idea of local land values. Some counties make this available online, some don't.
I assume that you are visiting the property before buying (that's how I found that I was VIOLENTLY ALLERGIC (a trip to the ER later) to something or other growing on the property. Take some time to swing by the county Court House to check local realty records and sales to make sure that you are paying a reasonable price. If you have the opportunity, take the time to sweet talk one of the local county property tax assessors as they have good experience and insight and can be very helpful if they are feeling benevolent.
As I learned through experience, if/when you visit the property tax record office (usually in the Treasurer's office) be sure to call that day to make sure they are there. In very rural areas, posted business hours are more of a suggestion than a rule. You may show up to find the office unexpectedly closed due to illness, a special event, hunting season or other reason that will not be explained.
Best of luck on your search.
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