We are living in a very interesting time for Real Estate Transactions. The recent NAR ruling is only a series of ruling, lawsuits and negotiations between the NAR(National Association or Realtors), local brokages, various home buyers and sellers and mostly important the DOJ. Each of the lawsuits, have different nuances to them but from a macro perspective, one obvious conclusion can be reached: The days of Realtor's practice where the home seller pays both the buyer and seller agents are likely to be gone soon.
Traditional, if you sell a $100,000 dollar home, the seller agent will sign a contract with you were the sales commission is 6%. The commission is then split between the buyer and seller agent at close. The buyer "doesn't pay the buyer's agent". When the Seller Agent lists the property, they often list the buyer agent's portion on the MLS. Go on Zillow or Redfin, you will find, at least for now, that there is a buyer's agent commission on the listing.
The implications of the rulings are that buyer's commission will no longer be allowed to be displayed on those forums.
And this is how it will affect you as home buyer or seller:
An informed seller will now have zero incentive to allocate 3% for buyer's commission. The original argument is that buyer agents will not bring (or steer) their clients to their property if they only offered 1% Buyer Commission or something like that. However if buyer's commission is not known, then buyer agents will have to be forced to recommend all listings based on the merits of the property. Thus a seller has no reason to even allocate $1 for Buyer agent commission.
As a result, Home Buyers are highly likely to have to pay for their own representation. How buyers will pay for agents is the question that everyone is asking. Will it be a flat fee? Or hourly rate? Or by showings or a mix of that? Wayber's mission is to minimize the home buyer's comission. You already have to dish out your life's savings for the home, you shouldn't have to dish out another giant lump of money for your agent.
Our efficient service will ensure Home buyers can the best service and knowledge at low low costs.
What does this mean for Home Prices? Home Prices are likely to dip 2 to 3% initially when the commission is no longer shown. Buyers will argue that home prices should be adjusted since sellers do not have to pay buyer agents anymore. However, as times passes, it will be interesting to see if that argument holds.
This evolution in real estate practices also opens the door for innovative companies like Wayber to redefine the role of AI in real estate transactions. By leveraging advanced analytics and machine learning, Wayber aims to provide a more efficient, accurate, and personalized experience for both buyers and sellers. From predictive pricing models that ensure you're getting the best deal to virtual tours that save time and resources, our technology is designed to streamline the entire process, making it more accessible and less daunting for everyone involved.
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