My Response to the NAR Lawsuit (Real Estate Is Changing Forever)
Published: 2024-04-10
Status:
Analyzed
Published: 2024-04-10
Status:
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The recent settlement is expected to lead to lower real estate agent commissions and might encourage some homeowners to forgo using an agent.
"some analysts believe that this rule change will lead to lower agent commissions and could persuade some homeowners to skip using an agent altogether"
Pending
The real estate market is predicted to split into two segments: buyers seeking the lowest upfront cost and buyers who are highly selective about their agent and understand the value they are paying for.
"I believe that this entire settlement will bifurcate the market into two categories one a buyer who decides to pursue a discount service for the sake of saving as much money as possible UPF front or two a buyer who needs to be very selective in terms of the person they work with and understand completely what they're getting for the money that they're offering"
Pending
The settlement is not expected to lower housing prices but will likely increase competition among buyer agents, forcing them to perform better than before.
"I don't think this is going to do anything to bring down housing prices but I do think it's going to promote a lot more competition between buyer agents who previously could skirt away doing the bare minimum not So Much Anymore"
Pending
A potential outcome is that sellers will not offer buyer agent compensation directly, but this cost will be incorporated into the selling price, and sellers will then choose offers based on their net profit.
"it's yet to be seen one possibility is that sellers offer no comp compensation to the buyer agent offers then include Buyer Agents compensation to be baked into the selling price and then sellers could accept whether or not they want to take the offer based on the net amount that they'd receive"
Pending
First-time homebuyers may question the value of agent services and opt for discount brokerages or lawyers to handle paperwork, potentially attempting to manage the process themselves.
"the hard part is going to be for first-time home buyers they could look at the service that they're paying for question whether or not it's worth it and then go and pay a discount brokerage or a lawyer to draft some initial paperwork and think they could do it themselves"
Pending
Buyers are unlikely to pay agent commissions out-of-pocket due to financial constraints; instead, these costs will likely be included in the final selling price.
"one I believe that buyers probably wouldn't want to pay a cost like this out of pocket especially when so many buyers are cash strapped to begin with this means that any commissions simply get written into the offer and then baked into the selling price that they ultimately pay"
Pending
Certain mortgage types, like VA loans, prohibit buyers from paying agent commissions. This creates a disadvantage for VA buyers if sellers don't offer compensation, potentially leading them to forego representation or miss out on properties.
"however this could get difficult because some mortgage options like with VA loans prohibit buyers from paying their own real estate agent commissions because of this it's said that in situations where no offer of compensation is offered from the seller VA buyers are immediately at a disadvantage potentially forcing them to forgo professional representation or lose a property entirely"
Pending
The National Association of Realtors' $418 million settlement is expected to lead to revised commission structures, increased competition among agents, and potentially lower prices.
"the National Association of Realtors made the decision to settle for $418 million and in turn they would revamp entire commission structures they would promote more competition between agents and that hopefully would lower prices"
Pending
Buyers may still request seller concessions to cover buyer agent compensation, though sellers with multiple offers might decline.
"they even go so far to mention that home buyers could still ask a prospective home seller for a concession that includes money to help cover the buyer agent's compensation"
Pending
Buyers are expected to have more leverage to negotiate lower commissions, potentially opting for percentage-based, flat-fee, or hourly rates with their agents.
"a buyer's likely going to have more flexibility to make bigger asks of the real estate agent this could be requesting a 1% commission instead of 2 2 and a half it might be paying a flat rate regardless of what the home sells for or it could be paying by the hour similar to an accountant or a lawyer"
Pending