This is why I’m so skeptical of ‘seller concessions’ being a viable solution.
If agents were united in appreciating buyer-agents (doesn’t every realtor represent a buyer occasionally?), then everyone would take a stand to ensure buyers get adequate representation, and buyer-agents have a pay structure that is reasonable.
But in the chart above, most listing agents would rather just say no to ANY seller concessions. Is that because they believe that the pay system we’ve enjoyed for 100+ years has been wrong and unfair? Or is it because they are too lazy to explain the benefits to sellers?
These are fairly successful agents who read Rob’s blog. The percentage of no answers is probably higher among the general realtor population.
Rob thinks that the seller concessions will fade away over the next 18-36 months, and I agree. Even though offering seller concessions is the perfect compromise to maximize the home’s exposure to the most buyers, it means that listing agents would need to convince their sellers to pay buyer-agents, when many are not.
Will home buyers pay to Get Good Help?
Or will they just go direct to the listing agent, knowing that the new listing forms give those agents additional compensation if the buyer is unrepresented?
The new forms encourage single agency, so it is inevitable that the trend will go that way.
The self-inflicted realtor implosion is happening right before our eyes.
Such an interesting point in time. If you are the listing agent and you get an offer with a request for buyers agent compensation, is it Not your fiduciary responsibility, not only count through the buyers offer, but to also counter the buyers agent compensation request? I think you are spot on that. This is going to be a race to the bottom.
I don’t do it but yes most listing agents who receive an offer think it’s their job to beat the crap out of the buyer and agent. Counter every term to be more favorable to the seller and if the buyer doesn’t like it then too bad.
That’s not negotiation or fiduciary. It is stinking thinking that you’re not going to get away with any more unless the house is spectacular and price is below market.
I have relatives in town + one works for a builder. Apparently builders buying down mortgage rates is a fairly common way to incentivize buyers while keeping prices high. I wonder if lenders know that this is occurring? It didn’t sound like it was builders $$$ funding the mortages.
Also everyone seems to think there will be two interest rate cuts by Christmas. I asked why they feel that way but they couldn’t explain.
I stopped trying to apply logic to the housing market back in 2008. It is interesting that anything goes these days and people just seem to think positively about the market. I guess 20 years of positive appreciation makes people see rainbows and pots of gold no matter what.
“ I stopped trying to apply logic to the housing market back in 2008. It is interesting that anything goes these days and people just seem to think positively about the market. I guess 20 years of positive appreciation makes people see rainbows and pots of gold no matter what.”
I concur with Shadash. Managed rates, managed markets. Who remembers, or even knows, what a downturn, or worse, looks like.
How can anyone believe that an agent compensation model not including buyer agent compensation is good for “the market?”
“Managed rates, managed markets. Who remembers, or even knows, what a downturn, or worse, looks like”
If banks don’t foreclose there will never be another down market. Housing will just go up, then plateau for a while, then go up again, then plateau, etc which is what we’ve seen since 2008.
What’s sad is neverending appreciation forces young people to accept that “owning” a house means being in debt. Combine that with reverse mortgages and you can see that over time banks are going to own everything and regular people will be in forever debt.
regular people will be in forever debt.
That’s what grandma is for!