A new $3,000,000+ listing hit the MLS this week that was offering a 1/2% commission to the buyer’s agent.
They also noted that to show the property, buyer-agents needed to submit proof of funds (bank statement) and pre-approval letter plus a 24-hour notice was required. Only one photo was included and no videos or matterport. In other words, they aren’t interested in incentivizing the buyer-agents – instead, they will make it as tough as possible for them to earn a living here.
It’s ok with me if you want to publicly embarrass yourself in front of your fellow realtors.
But know that you are also contributing to the demise of buyer-agents.
When other agents see that you have no regard, or respect, for what buyer-agents do, then they will learn from you – and assume that this must be how the future of commissions is going to play out. Then they will do the same thing.
Because ‘commissions are negotiable’ is such a touchy subject, nobody in the business talks about it. But we should discuss the role of the buyer-agent, and how they will soon be extinct – which is NOT good for anyone involved, especially the buyers.
There are two other new listings this month (of 63) that are offering NO buyer-agent commission.
The agents are happy to note that it will be negotiated in the offer. Your list prices are ridiculously high, you make it hard to show, and you refuse to offer ANY commission rate? Why is that a sound strategy? How does that make any business sense?
If the listing agent is unwilling to commit to paying any commission, then they must be thinking that the eventual rate negotiated with the offer will be less than 2% – because if the listing agent was willing to pay at least 2%, they’d would publicize it as a feature, wouldn’t they?
These are listing agents that prioritize the torture of the buyer-agents over what is best for their seller. It’s a very strange control/dominance issue – and they should really seek some help with that before they take another listing.
As the market slows down – and the commission debacle will be a contributing factor to the slowdown – the buyer-agents will be needed more than ever. Will listing agents adjust in time, or just blindly run off the cliff like a lemming? I don’t have a lot of faith in the former.
This is exactly how I feel.
Just wait, in a down market getting listings is easy. Finding buyers is hard.
We haven’t experienced this type of market in SD since 2009 but it’s coming.
Once the market flips and everyone gets the message it will be a game of musical chairs. With one less chair (buyer) each time the music stops.
It’s been a seller’s market for so long that anyone who was around the last time it was a buyers’ market can’t remember what it was like!
High inflation, both in goods and wages, coupled with a generation with 3% fixed 30-year mortgage rates ensures a seller’s market for a long time in desirable areas.
I think you’ve nailed it. Already hints of dysfunction. Much more dysfunction when the market slows then reverses. Yup, the NAR settlement will be remembered as complicating things when the unwind begins. Many people though seem to think that what we’ve had post-2008 is “normal”:and forever. Gonna be interesting…