I have been working on getting a nice place ready for sale for about seven weeks and it is just about there. Last week we were resurfacing hardwood floors so things are in the final stages.

I have been for the most part, selling with the MLS and a realtor since the market place is so awfully hot. So as that list date is quickly approaching, I was starting to wonder, what will be impact of the Realtor Commission Settlement Impact.

If buyer's agents get paid by the buyer, and a typical buyer around here doesn't have much money, is this going to freeze up the market place or is this going to simply pad the price that much more? I am not sure, I am inclined to believe that there will be less buyers here.

What are others thinking?

I totally agree with NE.

Sellers have already been paying the buyer's agent anyway -it's built into the sale price.

So advertise "Good News! Your fee will be paid by the seller"

i was thinking the same thing Ken.

Maybe some Buyers will just finance the buyer's agent fee along with the sale price. For low down payment loans today, that's essentially what's happening.

Keep in mind that MANY buyers will have a house for sale at the same time, and will have a closing contingency like they do today where their house has to sell first. These are standard in most deals I saw during my brief time as an agent. With recent run ups in values, many Buyers will have 20% or more to put down and/or to use to pay Buyer's agent fees.

A lot of cash purchases out there too... they'll think nothing of that fee.

Like NE said, this is nothing new. The old language was "Seller pays the agent fee", but in reality we know that the Buyer paid... because the Seller agent only got paid when the Buyer PAID the Seller and bought the house. Otherwise, the Seller agent got nothing. The full 6% fee was built into the price already. That will not change. Only the mechanics for how that amount gets to the Buyer's agent will change, slightly. The Title Company will still be cutting everyone's checks out of a pile of money that a willing Seller accepts from a willing and able Buyer. Only difference is the Buyers agent fee will show up on the Buyer's debits side of the HUD statement instead of the Seller's debits where it used to get split into two parts.

Potaytoh, potahto.

Now what MIGHT change is we might find more Buyers who opt not to use a Buyer's agent and go directly to the Seller's agent. That's old skool real estate, and caveat emptor was the watch phrase even more so than now.

In the end, the bottom line is the bottom line: "how much cash am I walking away with at the end of the deal once everyone's paid" is the question.

As NE.

RayRay,

Recent sales I have watched have the SELLER paying everyone

BECAUSE buyers are broke,

AND the SELLER also paid 3.5% down for the BUYER to get an FHA loan.

Sellers have always paid the commissions OUT OF the sales price. Sellers do not get extra on top of the sales price.

Basically 6% commission plus 3.5% down = 9.5% to get ti sold. (my gripe is the appraisers use the sales price, not the final income value)

I have never sold a home where the Buyer had ANY money to buy.

Bankers tell me they will not increase the mortgage amount to cover a commission. Borrowers are already using the max amount allowable.

When I sell at retail *I* list the home on Zillow and state AGENTS WELCOME. When they contact me to show the home we sign their ONE TIME LISTING form at 3%. So each flip sold has been 3% plus 3.5% FHA downpayment outta MY pocket. Agents trip over themselves for 3%, more than a normal MLS sale, I feel like they try harder.

My neighbor opened a new office www.1percentlstingsIndiana.com . Just sold a friend's home in 2 days for 1% list plus 2% buyer's commission, all paid by Seller.

SO to answer your initial question, 3% made the deal happen and all agents got what they wanted.

I think it's the Managing Brokers who will make less.

BRAD

PS

I have posted this before but it's worth repeating.

Buyers now want an HGTV Property Brother Chip and Joanna home.

www.youtube.com/watch?v=1KcHI0tXueQ

I follow this gal's videos because she is right on target!

I also follow Audra Lambert. She will ALWAYS have her own agent present when a Buyer's Agent is showing her listings - because buyer's agents don't care about someone else's listing AND might have bad or no information to answer questions. Plus if the buyer is hesitant the agent will just take them to another listing elsewhere.

Both have TONS of info to help sellers get their home sold.

PS

I have posted this before but it's worth repeating.

Buyers now want an HGTV Property Brother Chip and Joanna home.

www.youtube.com/watch?v=1KcHI0tXueQ

I follow this gal's videos because she is right on target!

I also follow Audra Lambert. She will ALWAYS have her own agent present when a Buyer's Agent is showing her listings - because buyer's agents don't care about someone else's listing AND might have bad or no information to answer questions. Plus if the buyer is hesitant the agent will just take them to another listing elsewhere.

Both have TONS of info to help sellers get their home sold.

PS

I have posted this before but it's worth repeating.

Buyers now want an HGTV Property Brother Chip and Joanna home.

www.youtube.com/watch?v=1KcHI0tXueQ

I follow this gal's videos because she is right on target!

I also follow Audra Lambert. She will ALWAYS have her own agent present when a Buyer's Agent is showing her listings - because buyer's agents don't care about someone else's listing AND might have bad or no information to answer questions. Plus if the buyer is hesitant the agent will just take them to another listing elsewhere.

Both have TONS of info to help sellers get their home sold.