Things are changing in California real estate and as well as real estate as a whole
Because of a recent lawsuit, which NAR agreed to settle (National Association of Realtor) the listing agent or the agent that lists a property for sale for a seller of residential real estate will no longer be able to give part of the commission to an agent representing a buyer.
Things are changing in California real estate and as well as real estate as a whole.
Because of a recent lawsuit, which NAR agreed to settle (National Association of Realtors) the listing agent or the agent that lists a property for sale for a seller of residential real estate will no longer be able to give part of the commission to an agent representing a buyer.
So, in a few months an agent that decides to represent a buyer in the search of a property and to negotiate with a seller of a property on behalf of the buyer will have to have a contract with the buyer to do so and that the buyer will have to agree to pay the agent, his or her commission if the seller refuses to do so.
Sellers of properties always had the option to pay commission or not pay commission, and fees were always open, negotiable and never fixed.
In a few months, a listing agent will no longer be able to give the buyer’s agent (agent representing a buyer in a transaction) any part of their commission.
If a seller of a property wants and agrees to pay a commission to the buyer’s agent, the amount of that commission will not be shown in the MLS (Multiple Listing Services) either.
Showing the commission a buyer’s agent was to receive in the MLS, was one of many ways a listing agent use to help sellers to getting a property sold.
Many agents represent buyer don’t use contracts, knowing that they had to build loyalty with their buyers and by working hard to find them a property they wanted to buy.
A buyer agent put a lot of hours finding buyers the right property for them, working hard to know the areas they work and know how to negotiate for the buyer they are representing in a purchase.
So, what is going to happen, well I can’t see the future, but most buyers are not going to have the extra money to pay commissions.
I believe we’re going to see an increase in dual agencies in California and other states where it is allowed, where one agent is representing both the buyer and the seller.
I also believe that we’re going to see an increase in lawsuits for misrepresentation by both buyers and sellers.
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Not only that, but I can see an increase in corporate own properties and less and less homes coming on market for sale and more and more rentals coming on market as more and more homes are owned by corporations.
And in the far future owning a home will no longer be a dream but an impossibility.
Owning a home and building equality will be something the kids of the future will wonder what you are talking about.
Like always, this is my opinion
Steve Olmos
Selling real estate in Southern California Since 1980
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