It is great to see that real estate values in the heartland are enjoying appreciation increases that we haven seen in decades. But like all good things, cycles come and they go. Equity, especially from market forces is bonus but cash flow is what carries you thru

Seeing how quickly they are going up, it simply isn't sustainable. Something has to cause the market balance to break. I have to wonder if it isn't going to be the combination of a decease fed rates, mortgage rates and a decease in real estate commissions all happening about the same time. Right now there isn't an incentive to sell too much as replacement cost are so high, but I have wonder if these events will be just enough to add the inventory of places for sale.

What do you think the impact of change in real estate commissions will do for the market place? I think the higher maintenance buyers and sellers are going to get hurt with it. If you have a good relationship with certain brokers though, you might save a small amount. I believe the commissions by themselves aren't going to derail the market but if three or small things occur at the same time, if enough people start to jump ship.....the tide may turn locally.

I am still cautiously optimistic about the market.

Have you seen a change in the commission percentages near you?

In my experience, the agents are not worth their pay.

This is my opinion based on the fact that I know how to complete the documents better than they do, and have had to make corrections to what the agents did on every single sale and purchase I've made over the last several years.

Especially on higher-priced properties. I can't believe they do that much more or are that much better when selling them vs lower-priced properties.

Are you referring to buyers paying their share of the commission vs the seller paying all? I don't think that will make much of an impact, once buyers understand they have been paying for it all along anyway, in the purchase price. I do think it may encourage more owners to list their properties for sale - particularly the higher-priced ones.

We'll see a lot of sub-par/marginal agents drop out since it won't be as easy to survive on a dozen commissions per year.

The new rules don't start until July.

So in theory, selling a house will have a 3% commission vs a 6% commission. That's a huge savings for the seller.

Buyers agent won't get paid unless the buyer agrees to pay them something. Not sure many buyers will do this.

I think buyers will just contact the listing agent. Lots more work for the listing agent. I bet they try to get a higher commission rate than 3%.

Just a bunch of junk to make lawyers a ton of money.

Everyone involved will just find a way around it, as usual.

I always thought real estate commissions should have a sliding scale. When property sold for $100,000 or less 6% was fair. Now that properties are selling for $1 million, $60,000 is a little pricey.

I've been working on a house. What are the new rules?

The big difference is that 3% will go to the listing agent out of the proceeds at closing, and 3% will go to the buyer paid directly by the seller. The buyer's agent will have a contract with the buyer so money will still be owed. It just means that the buyer will make a lower offer and pay the buyer's agent from those savings.

Smart agents just chase listings, not trotting buyers around for showings that might not generate a sale.

I'm hoping this helps rearrange the process - get the loan locked in THEN make offers on props like Australia. Open bidding on the price, close in days not weeks. and simplify the process.

During the pandemic was great - realtors convinced buyers to buy AS IS and not demand sellers pay for upgrades, warranties, etc. "Make clean offers". It was much easier to sell a house and I believe less expensive for the buyers.

I do not picture buyers agreeing to pay commission.

The agent holding the buyers' hand and continually reassuring them is the value in the deal.

Locally the top company was demanding 7% commission.

I also expect to see cafeteria style listings - fees for specific services - want MLS? Open Houses? Professional photos? Staging? Concierge service?

BRAD

BRAD

My agents charge the same percentage no matter what they do.

I used to get a lower percentage, but the last house I sold and the last one I bought were at the 6% mark.

My listing agent never went inside the house I sold. Her husband (my old agent) went in, took a few pictures, got the main room sizes and we were done.

In the past I always tried to use my agents. I used to get a heads up on places before they hit the market. Now we just sit around and BS about off topic stuff more than we discuss the property.

I have nothing to put on market right now and I spent my play money on the last house so I guess I will have to see what happens the next time something comes up.