Big Changes for Buyers Commissions
Big Changes for Buyers Commissions
Full Video Transcript Below
Big Changes for Buyer Commissions
[00:00:00] Well, Hey, real estate fans. Welcome back to the weekly podcast. So glad you could join us today. There is a really big lawsuit brewing in the courts involving the real estate companies, a couple of big ones, and also the national association of realtors. And what are they fighting about? They're fighting about money.
There's a movement to separate the payment of the buyer's agent from the seller side of the transaction. Let me dive into that just a little bit. What happens now, you know, at least in Oregon and a lot of other places that when you buy a house, your real estate agent on the buyer's side gets paid from the seller.
And so there's a little bit of a fuss, maybe a big fuss in the courts if that's fair or not. And also if the buyer's agent is really working for the seller. So they're, they're working that all out. But in the meantime, it's making the news and it's making the news to the [00:01:00] point where some of the real estate agencies are starting to prepare their agents.
If this works out to where buyers will be paying for their own real estate agent. Now, before we panic, let me first of all say, no matter what happens in the real estate world, we always adjust. It's not always pretty. It's not always fun, but people still get their stuff done. Now, this would be a really big shift, but we've had big shifts in the real estate world before.
And we don't know 100 percent if it's going to come down the pike, but it's, it's gotten far enough along. I thought I should tell you about it because a lot of you folks track the trends in the United States and worldwide, and this is definitely getting some airtime. So what this means, and I've already talked to several of my favorite lenders in case it does happen, what this means is that instead of the seller[00:02:00] having both commissions taken out of their side, the buyer would now be responsible for paying their own agent. We're talking about anywhere from five, 10, 15, 000 on the buyer's side that now the buyers themselves would be paying for. So my first phone call to all the lenders was, are you guys going to change the pre approvals?
Is this going to lower the prices now because the buyers can't come up with closing costs, and a down payment and now commission. So that was a big question and some of the lenders are off working on that. There's also the possibility that the home price would come down. So in theory, in theory, but markets do what markets want to do.
But in theory, if you're a seller and now you're only paying one commission, theoretically, there's money in the deal. For the buyer, the price to come down and then the buyer would be able to [00:03:00] still afford quote unquote still for the house. So we don't really know what's going to happen. And if this comes into play in 2024, when we still have a housing shortage and the prices are high.
How is that, how is that gonna affect the transactions. But again, it's not 100%, but it's far enough along. I wanted you guys to have a heads up in case you hear something about it. That's what it is. It looks like there was the beginning of a settlement with one of the parties just this week.
And that's again, why I decided to bring it up. There is a trial coming up. So far it's set for October 16th, which is October 16th pretty soon. And we'll bring you an update from there. In the meantime, Southern Oregon is still hopping. We have quite a, quite a lot of activity. If you look at the market trends analysis that's on my YouTube every week, we post the activity for all three counties, Jackson, Josephine, and [00:04:00] Klamath County.
And not to do a spoiler alert, but Jackson County prices were up year over year this week. 6%. We don't see that every week, but, but we are seeing the, each of the three counties jockey for stability, which is what we have been watching all summer. It's still a great time to sell. So I'm going to plant that seed.
You can call me this weekend or next week and we can talk about putting your house on the market. We still have a few more buyers then sellers. And we're starting to see some multi offer situations again in the lower price ranges. So I'm not trying to make it sound better than it is, but I am trying to tell you that it's still a good time to buy.
And if and whenever the Federal Reserve decides to lower the interest rates and all that changes, if you get a good price right now, and we look for some appreciation, small amount of appreciation, even in the next year or 2, you're still making money. All right. So give me a [00:05:00] call. Give me a text 541 301 7980.
We can get your house on the market in as quick as a week if we have to. And we can have open houses again because the COVID rules are relaxed and, and there's enough buyers out there that that you could get your house sold and get on to the next step of your life. If you're buying please be aware that this potential lawsuit that we were just talking about could be a game changer in your qualification.
There's a reason to maybe get into escrow before something gets decided, but again, we don't want to panic. We just want to be aware. All right, so that's it for this week. Give me a call. Give me a text. Have a beautiful Southern Oregon weekend. We'll talk to you next week. Bye now.