The more I think about the potential issues that arise, I continue to come back to the fact that the commissions paid on the buyer side will likely compress, but will also result in a reduction in quality of service.
There will likely be an increase in the dual agency situation when buyers look to reduce the commission paid out of pocket, and the listing agent is more likely to agree to a reduced commission. In this instance, both seller and buyer receive receive less than ideal service.
Sean, you're absolutely correct - even since the NAR settlement and changes were announced in March, the industry has already seen commissions on a downward trend. That is the DOJ's goal, and it remains to be seen what various brokerages set for their fees to buyers.
I definitely fear the rise of dual agency and agree with you that both sellers and buyers would suffer by giving up representation and service. I truly hope the industry can find a fair path forward where both sellers and buyers can continue to receive full representation, and both agents will receive compensation for their hard work. Thank you for reading and commenting!
Lots of great points Ali! I do think the change makes it harder for those that need representation the most (first time homebuyers). So far my sellers understand the importance with offering the buy side commissions. We will see how this all shakes out with some time.
The more I think about the potential issues that arise, I continue to come back to the fact that the commissions paid on the buyer side will likely compress, but will also result in a reduction in quality of service.
There will likely be an increase in the dual agency situation when buyers look to reduce the commission paid out of pocket, and the listing agent is more likely to agree to a reduced commission. In this instance, both seller and buyer receive receive less than ideal service.
Sean, you're absolutely correct - even since the NAR settlement and changes were announced in March, the industry has already seen commissions on a downward trend. That is the DOJ's goal, and it remains to be seen what various brokerages set for their fees to buyers.
I definitely fear the rise of dual agency and agree with you that both sellers and buyers would suffer by giving up representation and service. I truly hope the industry can find a fair path forward where both sellers and buyers can continue to receive full representation, and both agents will receive compensation for their hard work. Thank you for reading and commenting!
Lots of great points Ali! I do think the change makes it harder for those that need representation the most (first time homebuyers). So far my sellers understand the importance with offering the buy side commissions. We will see how this all shakes out with some time.
Yes, we agents will need to advocate even harder especially for our first time buyers.