The NAR settlement went into effect on August 17th of last year.
How’s it working?
I heard this story from another agent – it didn’t happen to me.
A home has been on the market for a couple of weeks, listed for $1,200,000. An offer was received at $1,220,000, and it asked for the seller to credit the buyer 2.5% ($30,500) to compensate for the buyer-agent’s compensation. Minus the credit, the net offer would be $1,189,500, which is only $10,500 under list.
The buyer offered to pay $20,000 over list to help compensate for the credit.
But the seller only wanted to pay 1.5% to any buyer-agent.
The seller turned down the deal.
Here’s why I bring it up:
- Deals are dying over the commission rate.
- It makes agents a party to the transaction, which is wrong.
- Sellers and buyers aren’t getting what they want and deserve.
The solution?
Get Good Help!
Why wouldn’t the buyer agent just take smaller cut? Would that be grounds to cancel any contract with the buyers agent?
Why wouldn’t the buyer agent just take smaller cut? Would that be grounds to cancel any contract with the buyers agent?
The buyer is contractually obligated to pay the full 2.5% to the buyer-agent. Both are hoping the seller bails them out.
When the seller refuses to pay some or all of it, then deals die with inexperienced agents.
Hence, my Get Good Help!
Net baby net. Does matter if it is for any cost. It’s all about the Bass, no treble. Or the net. Good agents make good nets catch good fish.
Some people are just stupid.