New rules stemming from the National Association of Realtors’ commission lawsuit settlement went into effect Saturday following years of litigation, potentially upending the industry, including how agents get paid. This week, I have been hearing from agents, brokers, MLS executives, portals and other insiders as the rules roll out. COMMISSION QUESTIONS: In the wake of NAR’s new settlement rules, many buyer’s agents are suddenly confronting a new question: What commission should they ask for in their buyers’ broker representation agreements? Here are a few responses found in a real estate master-mind group: “I’m asking the buyer to pay my rate but advising them the seller may be offering something towards that,” one agent responded. “If that’s the case they only have to pay what’s left.” “Sit down with your buyer and a trusted loan officer” another suggested. “Have the loan officer complete the various costs including your compensation and without any compensation (seller contributes). Once the buyer sees how much they have to come up with, they can make a decision. Then you make yours.” Some commenters also said that their brokers are making recommendations. “This thread is illegal,” one commenter argued, echoing a number of other remarks. “It is price fixing and the whole reason the U.S. Department of Justice got involved. Commission/Concessions should only be discussed between the agent and his/her client, never among agents.” The debate highlights the fact that many practical issues stemming from the settlement are yet to be worked out — and that additional litigation is top of mind for many real estate professionals, OPEN HOUSE, OPEN QUESTION: Among the real estate professionals watching how the settlement changes unfolded this weekend was Randy Bell of Life Realty – The District in Henderson, NV who told me that “Buyers appear to be leery about signing short-term agreements and may favor open houses over individual tours until they’re at ease with the rule.” He went on to state “It’ll be very interesting to see whether open house traffic increases, which I expect it will once buyers understand they don’t have the same friction with agreements by going directly to open houses,” One stat I’m going to be looking at is the number of open houses relative to active listings. I’ll have numbers for you in the weeks to come. …More to follow in future Newsletters. Contact me for more information. 702-303-0243 or TPayne@loandepot.com We are a direct nationwide lender. EQUAL HOUSING LENDER
Rate | Change | Points | |
---|---|---|---|
30 Yr. Fixed | 6.44% | -0.04 | -- |
15 Yr. Fixed | 5.97% | -0.03 | -- |
30 Yr. FHA | 5.90% | -0.04 | -- |
30 Yr. Jumbo | 6.66% | -0.02 | -- |
5/1 ARM | 6.32% | -0.06 | -- |
Rate | Change | Points | |
---|---|---|---|
30 Yr. Fixed | 6.54% | -0.01 | 0.57 |
15 Yr. Fixed | 5.96% | -0.07 | 0.65 |
30 Yr. FHA | 6.49% | 0.00 | 0.77 |
30 Yr. Jumbo | 6.78% | +0.01 | 0.37 |
5/1 ARM | 6.04% | +0.13 | 0.87 |
Value | Change | ||
---|---|---|---|
Mortgage Apps | Aug 14 | 251.3 | 16.83% |
Building Permits | Mar 1 | 1.46M | -3.95% |
Housing Starts | Mar 1 | 1.32M | -13.15% |
New Home Sales | Mar 1 | 693K | 4.68% |
Pending Home Sales | Feb 1 | 75.6 | 1.75% |
Existing Home Sales | Feb 1 | 3.97M | -0.75% |
Builder Confidence | Mar 1 | 51 | 6.25% |