NAR Settlement - Direct to Listing Agent Lost Power?

[Trevor Richardson]

Before the settlement and after this settlement, buyers always had the option to approach the listing agent directly with an offer, a power they've held all along. It’s interesting to see how people are reacting like this is a newfound power for buyers.

Fundamentally, nothing in this respect has changed. However, the landscape could shift significantly for unrepresented buyers. The potential 2.5% commission that might have been directed to the buyer's side is now potentially off the table.

This change prompts a critical question for unrepresented buyers: how does this alter your strategic advantage when approaching a sale without an agent? Previously, that 2.5% could have served as a powerful negotiating chip, either to bolster your offer or to pocket as a credit. The pre-settlement era seemingly encouraged buyers to self-represent, lured by the possibility of claiming the buy-side commission for themselves.

Now, with this incentive structure altered, it will be interesting to see how the dynamics and strategies of unrepresented purchasing change in the current market.

[Chris Seveney]

@Trevor Richardson

I agree with Russell

You will see a la carte services from agents to write up offers and possibly even charge for showings. It’s going to go away from a commission based model (which to me never really made sense but not complaining about it).

25 years ago when there really wasn’t online listings and you would check the newspaper or call agents for listings times have changed and commissions made sense. Today Buyers will need to be more savvy which they should be making the biggest investment in their life.

They can source online information but realize now when they go shopping they are gonna have to pay for it out of pocket.

This will 100% reduce the number of agents out there which is not a bad thing, and it will be very good for those agents who are good at what they do.