Join  |  Login  |   Cart    

Notary Rotary
Just PoliticsLeisure
Welcome to the Notary Talk General Discussion Forum. Before posting, please read the

Navigating the NAR settlement via Cooperative Compensation
Posted by Bear900/CA of CA on 3/21/24 5:29pm Msg #648055
Cooperative Compensation are the key words here. Open negotiations and transparency are already yesterday's news.

If you're new to this discussion, NAR (National Association of Realtors) was sued for nearly half a billion dollars for stifling real estate negotiations in buying homes. Some big-time real estate brokers like Berkshire Hathaway were similarly sued.

I already contended that this is going to hurt buyers/sellers more than realtors. Currently, a lot of buyer agents are already requiring a fee just to get started showing property.

Jason Mitchell from the nation's largest real estate brokerage brought out at least three main points I have already been pondering. If you decide to listen, look for these three points.

1. Buyer agents won't bring qualified buyers to a seller without a seller's cooperative compensation agreement. The buyer will most likely have to agree to pay the buyer's agent fee or require the seller to offer a cooperative compensation. Imagine a buyer agent requesting much more than 3% to bring a qualified offer to the table. Watch the greed....

If the seller says no, the buyer's agent already has a signed agreement to only show homes offering cooperative compensation.

2. First time home buyers who need to sign a buyer's fee agreement will all but be shut out, or shell out 2-1/2 to 3% themselves. That's almost the amount of an FHA downpayment.

3. Buyer's agents will be looking at lenders to help finance this fee. Keep in mind a buyer's agent fee will typically be more than a loan origination fee. It's interesting to see and hear Jason's panic in this regard. PANIC!

As a mortgage broker I disagree with The Mortgage Coach's comments that, yeah, we'll come to the rescue and bail out the buyer by financing the buyer's agent fee. I don't think so! Closing costs on new home purchases are usually taken right to the wire.

It will also be interesting to see what the government will step in with.
PrevNextReturn to General Discussion    Post a Public Reply to this MessageSend Author a Private Message

Messages in this Thread
 Navigating the NAR settlement via Cooperative Compensation - Bear900/CA on 3/21/24 5:29pm
 Low Inventory, High Interest. Now this? A perfect storm! n/m - Lee/AR on 3/21/24 5:39pm
 Sellers will buckle and pay...perhaps sometimes more n/m - Bear900/CA on 3/21/24 5:51pm
 Maybe in some high-value markets, but not nationwide - Lee/AR on 3/22/24 10:57am
 Re: Low Inventory, High Interest. Now this? A perfect storm! - SteveS/CA on 3/21/24 8:22pm
 I think there will be a boom in business. - Bear900/CA on 3/22/24 1:47am
 Re: I think there will be a boom in business. -  Yoli/CA on 3/22/24 10:55am
 Re: I think there will be a boom in business. -  Cheryl Elliott on 3/22/24 11:38am

Find a Notary   Notary Supplies   Terms   Privacy Statement   Help/FAQ   About   Contact Us   Archive  
Notary Rotary™ is a trademark of Notary Rotary. Copyright © 2002-2024, Notary Rotary, Inc.  All rights reserved.
500 New York Ave, Des Moines, IA 50313.