big shake-up in the real estate world

[Jorge Vazquez]

So, there's been a big shake-up in the real estate world, especially for agents. Basically, the way agents earn their commissions is changing due to a settlement that's aiming to make things more transparent and fair. Now, agents have to be more upfront about their fees, which could mean buyers might have to pay their agent's commission directly. It's a bit of a mix-up, but the idea is to make the whole buying and selling process clearer and more competitive, which could end up saving people money. It's going to take some getting used to for everyone involved. If you are an agent, share your thoughts on how this will affect your business. 

[James Carlson]

I think there will be waves to this change.

Nothing much will change at first. Listing agents will still counsel their sellers to offer a buyer's side commission (just not on the MLS). Then some sellers will push back and start offering less or none at all.

Buyers agents will -- as they always should have -- tell their buyers that they'll seek the commission from seller. If they don't pay it, the buyer-agent agreement will stipulate that buyers pay. So buyers may very well decide not to offer on homes not offering commission because the buyer will then be on the hook.

Then some buyers will forgo buyers agents work directly with the seller. This won't go well as the listing agent has a relationship with the seller, and no matter how ethical the agent, the buyer will be at a big disadvantage. 

We'll start hearing about buyers getting screwed and suing listing agents in a few years, and O&E insurance claims will go up.

How this ends, I don't know, but it's definitely go to be messy.