Why the NAR Settlement is a Great Thing for Off Market Investors Like US

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At first I didn't know what to make of the NAR settlement, since we don't use agents to either buy or sell. I thought it probably wouldn't affect us much, if any at all.

But what a windfall it is to us!

We now have a world where confusion will reign in real estate agent land and the MLS universe. Think of how many agents will leave the profession. Some industry leaders think as many as two thirds. Rather than learn professional selling skills, they will grab the closest cardboard box, clean out their desks and bid adieu to a profession they "dabbled" in. No more unreturned phone calls from them.

All I have to do is ask Mr. Seller if he heard what is going on with real estate agents. He’ll Say “No, what’s happening” and as I explain, I’m shaking my head in a disappointed fashion, such a shame. Then I explain . . .

When Sellers are told they have to pay the Seller’s agent a fee, “Gasp”, they will balk. This isn’t new of course, but people don’t sell a property very often and they forget what happened last time. Fees were, well, “hidden”. This is new to Sellers, and that is all that matters. Perception. The Fees are now front and center.

Since I’m not an agent and I don’t use agents, I don’t charge a Buyer’s agent fee. That alone is/will be perceived as saving $12,000 on Selling a $400,000 property to me directly. “Cha ching” into the pocket that goes. We can negotiate the savings.

Since agents will now have to emphasize their fees, to differentiate their fees from the Buyer’s agent’s fees, it becomes an issue. A made up issue. Nothing much changes, except now agents are required to delve into something they’d prefer to avoid discussing, Fees. I have no fees. I proudly mention that to sellers. 

And when talking to Sellers, “Off Market” I can explain that they will likely end up paying the Buyer’s agent’s fees as well, if they go with the MLS. Sellers always have paid both sides of course, but they don’t think of it that way, if they think of it at all. For instance, if I tell you, “You Don’t have a black widow on your back”, you’ll look at me and wonder why I said that. But, you will keep thinking about it. It’s the power of suggestion.

And at the very least, the Seller will notice the Buyer’s agent’s fees, the Seller is supposed to pay, while at closing and then what? Do you really think a Seller is going to remember he signed an ambiguous agreement to unspecified fees to a Buyer’s agent he has never met and doesn’t understand? An angry discussion follows. Then the Seller will walk out and call me to buy the property and save a ton of cash (and hassle).

It’s a wonderful world.