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/u/HalfAdministrative77
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Listings on the MLS will no longer be able to offer buyer agent compensation. For the sake of this conversation let's ignore the possibility that everyone stops using MLS in favor of alternative listing services, since I think that is absurdly unlikely.
Buyers will have to sign representation / compensation agreements with agents before they can make agent assisted offers.
Some people seem to be insisting that buyers agents will just somehow seek out and only support making offers on listings that offer buyer compensation, advertised on places other than MLS.
How could that possibly work, though, in the era of Zillow and Redfin? Are these people claiming that if a buyer sees a house listed online and wants to make an offer, their agent will tell them no because it doesn't advertise money for the agent? It seems impossible to believe that buyers in this market, hard pressed to get an offer accepted, would be ok with limiting their potential market like that.
Isn't the most logical and likely conclusion, then, that buyers will have to start signing agreements up front that say if the seller doesn't compensate the buyers agent, the buyer will? In that case I know the buyer's agent would still have some incentive to try to steer toward listings that would compensate them, if possible, since that would be less hassle for them than presenting the buyer a bill - but at the end of the day buyers are going to demand the ability to make an offer on any home they want, not just agent preferred ones.
And of course buyers agents will be able to encourage buyers to only make offers that include buyers agent compensation, but, again - unless every buyers agent and every company that pops up to provide services to buyers in this new model all collude to demand that every time, won't those offers quickly become noncompetitive? If there is a competitor down the road making offers that all average $10-20k more than yours because they have charged their buyers up front, you probably won't get many of yours accepted. And yes, that means the buyers in those cases would be increasing their total spend, but at this point increases of that size don't seem to be phasing anyone who really wants to buy.
It seems like another facet of the most likely outcome would be offers that ask for buyers agent compensation becoming common, but that they would have to be generally higher than offers without it in order to be competitive.
Am I missing something?
submitted by /u/HalfAdministrative77
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Am I missing something about how commissions will work after July?
Continue reading...
Buyers will have to sign representation / compensation agreements with agents before they can make agent assisted offers.
Some people seem to be insisting that buyers agents will just somehow seek out and only support making offers on listings that offer buyer compensation, advertised on places other than MLS.
How could that possibly work, though, in the era of Zillow and Redfin? Are these people claiming that if a buyer sees a house listed online and wants to make an offer, their agent will tell them no because it doesn't advertise money for the agent? It seems impossible to believe that buyers in this market, hard pressed to get an offer accepted, would be ok with limiting their potential market like that.
Isn't the most logical and likely conclusion, then, that buyers will have to start signing agreements up front that say if the seller doesn't compensate the buyers agent, the buyer will? In that case I know the buyer's agent would still have some incentive to try to steer toward listings that would compensate them, if possible, since that would be less hassle for them than presenting the buyer a bill - but at the end of the day buyers are going to demand the ability to make an offer on any home they want, not just agent preferred ones.
And of course buyers agents will be able to encourage buyers to only make offers that include buyers agent compensation, but, again - unless every buyers agent and every company that pops up to provide services to buyers in this new model all collude to demand that every time, won't those offers quickly become noncompetitive? If there is a competitor down the road making offers that all average $10-20k more than yours because they have charged their buyers up front, you probably won't get many of yours accepted. And yes, that means the buyers in those cases would be increasing their total spend, but at this point increases of that size don't seem to be phasing anyone who really wants to buy.
It seems like another facet of the most likely outcome would be offers that ask for buyers agent compensation becoming common, but that they would have to be generally higher than offers without it in order to be competitive.
Am I missing something?
submitted by /u/HalfAdministrative77
[link] [comments]
Am I missing something about how commissions will work after July?
Continue reading...