Here we go!
This week, we’re going to find out more about the DOJ’s stance on home sellers paying commissions to the buyer-agents. Finally!
Everyone agrees that sellers can choose to pay NO commissions. Heck, you don’t have to hire an agent to sell your house – go stick a for-sale sign in your front yard and see what happens.
But sellers should not be prevented from paying an incentive if they believe that is what’s best for them, and that it will get them what they want.
This is where NAR has failed miserably, and the big brokerages have no other choice but fight for what’s right. It’s anti-American to forbid people from spending their money however they want – especially when commissions have always been negotiable.
The DOJ has said that they want commissions to be ‘decoupled’. If they force home buyers to pay for their own agent, how much will be comfortable? Maybe one-half percent? Or maybe 1%? The job is too tough and it takes too long to work for 1%. Good agents won’t do it, and it will force buyers to go direct to the listing agent instead.
Unrepresented buyers will be the worst thing that ever happened to home sales. But nobody sees it coming, and by the time it becomes obvious, it will be too late.
Hopefully somebody will intervene with an auction format instead!
Nobody has ever objected to this:
In 2023, 40% of closed sales in California had the seller pay for some of the buyer’s closing costs, which under the current system, has nothing to do with broker commissions.
At least with an auction format the price of repairs or put a different way the lack of repairs is baked into the final auction number.
Yes and so is the 10% realtor commission….paid entirely by the buyer.
Auctions create instant urgency and the win-at-all-costs mentality which is nice for sellers and agents when that happens.
I like auctions just so every buyer has a fair shot to win. It is the opposite now – nothing is fair or transparent.
The DOJ ought to go to work on that!
Let’s just be clear. Everyone at the table gets paid EXCEPT the buyer. The seller gets paid. The Seller agent gets paid. The Buyer agent gets paid. The title company and all the other parasites get paid. ALL the money brought to the table comes from the buyer. You’d think they’d get treated better.
The buyer will get paid when they become the “seller” and cash in on their California golden ticket in a few years! Hopefully they will engage with Klinge Realty to ensure that they get top dollar when selling! And as a buyer, you should still engage with Klinge Realty to ensure you don’t get stuck with an overpriced turkey! Even if the buyer has to pay Klinge Realty a buyers commission, it’s worth the cost because of the expert advice they’ll receive as a result.