Although there haven’t been any “horror stories” in the first few days since business practices changed national association of realtors The implementation of the (NAR) Commission Litigation Settlement Agreement doesn’t mean all is smooth sailing for real estate professionals.
For Linda O’Koniewski; Frontier real estateOne of the biggest issues so far was when one of her agents made an offer to the buyer that included concessions for the seller. The property had been on the market for three months and no offers were advertised.
“The sellers are basically leaving them to die,” Okoniewski said. “So, I think a lot of agents who fail don’t prepare their sellers for the new reality. They get the listing, the seller learns they don’t have to offer anything, but their agent doesn’t prepare those things or provide them with anything. They explain that buyers will ask for help and then they have to evaluate what their net gain is based on the following criteria.”
In most markets across the country, active listing agents who went live before August 17 must sign a listing addendum to comply with the changes in business practices mandated by the NAR. Real estate professionals say these agreements are an easy way to discuss the subject of changes in business practices with these existing sellers.
“We’ve been coaching our agents on how to have these conversations with sellers, and so far, no one has been singled out,” said Brad Twiss, broker and owner of the Portland, Ore.-based brokerage. stage acceptance. neighborhood real estate. “We explained that under the terms of the settlement they should expect the buyer to demand payment of buyer’s agent fees, but that this would not change their agreement with us.”
While these changes to business practices are still in their early stages, 17 listings from agents and brokers who received offers before August show some sellers are confused as to why buyers are asking for concessions or assistance paying their agents’ fees.
“A lot of people signed the listing agreement before this and agreed to cooperate on compensation. For them, I’m still willing to do it if they want to, but it just makes them understand that these changes will not affect their network and will not would increase the commission costs they were already planning to pay to the state’s associate brokers. Times American Real Estate.
For many in the industry, taking the time to sign a listing addendum can serve as a natural check for clients on a potentially outdated listing, in addition to discussing changes in business practices. When having these conversations with sellers, some of whom may already be frustrated that their homes are taking longer to sell than expected, industry professionals say that focusing on the seller’s net gain goals should be a top priority.
Katie Kossev said: “If the listing had been open for three months, we might have discussed a price reduction as well.” sideManaging Broker in Texas. “These changes make conversations easier because you can work with sellers to understand the buyer compensation they offer, discuss what they want their network to be, and then lower the overall price by adjusting their buyer agent compensation. Be willing to make offers to buyers .
“It allows them to keep their network but lower the price. I do think it’s a benefit for sellers because it makes it easier to understand these options that they’ve always had.
While agents say it’s more common now to encounter sellers like the one Okoniewski mentioned, real estate professionals say they’re still trying to find ways to meet sellers’ net income goals while keeping buyers Homes move into the homes they want and earn money.
weekend, Lamacchia Real Estate Sales manager Jason Posnick said one client ended up in a situation where they paid a buyer’s agent fee, but the owner of the listing they purchased wasn’t willing to pay the same fee. Help them.
“We wrote a very strong offer and the seller’s agent came back and told us the seller wouldn’t pay the buyer’s agent fee, but we ended up getting part of the fee, with the listing agent reducing the commission and the seller paying the buyer. “The seller still got the net they wanted and the buyer was able to purchase the property. “
