THE NAR ROLL-OVER ... What It Really Means...
Ready to get burned? WELL NOT REALLY !!! But if the NAR ( National Association of Realtors), and a large group of power brokers do not counter sue, a once 100 hundred- year old effective negotiating process between buyer and seller agents can get a lot more complicated pretty quickly.
Although the thought of taking the commissions off the MLS ( Official realtor software) might seem to some as an effective method to make transactions between buyer and seller
more transparent, it is certainly not going to motivate seller agents to become more transparent; if anything it will drive more buyer agents into a dual transaction, "where the seller's agent attempts to act as the buyer and seller agent at the same time." Sounds like a recipe for greed and lack of ethics? Perhaps, time will tell. But have you ever heard of a seller agent holding out a non-represented buyer ( buyer not using an agent), for a higher commission? Yep, I hear about it all the time.
What some people do not realize is that no matter how much the DOJ thinks it can stronghold the largest group of independent contractors in the world, " us realtors," it will never be able to stomp out 100% bad agents or agents that make bad decisions. Time will do that. The Florida board of realtors and all agents are already monitored heavily by the (FREC), The Florida Real Estate Commission, which was created to educate and regulate real estate licensees. Good agents simply outlast bad ones, especially agents with bad intentions. Karma always catches up.
So when the dust has settled, what will this verdict actually accomplish? Will it help or hinder the process of buying and selling homes? And who will it affect most on the buying side of the transaction? Agents will now have to depend heavier on their buyers to fill in the potential loss of commission. WIth interest rates already higher than usual, never ending inflation, special assessments, and insurance spikes; the last thing we want to ask a First Time Home Buyer is to incur an additional cost. Many brokerages try to sugarcoat this sh*t, but the reality is that the middle and upper middle class have been getting decimated for the last few years and simply will not want to incur yet another cost that would higher their mortgage or disqualify them from even getting one ! And it is the FHA home buyers that also help fuel the economy. Nobody will be exempt from feeling this change except ultra rich corporations buying up the block. Remember when Klaus Schwab said "You own nothing and be happy," well he meant it.
On the seller side, agents will have slightly more control. However home and property owners will try to bargain those extra points down to make a bigger profit at the closing table. Smart seller agents will still divide the commission evenly hence both sides will get an overall lower commission, but this will drive many agents out of the market. Will the NAR be able to sustain such a loss of agents? Probably but it will not improve the quality of service the NAR offers its agents or better the service agents offer to their principals. Bottom line, families will struggle even harder to ensure they will be able to afford a home and agents will be less motivated to show properties and potentially offer less sophisticated services to their customers. What are your thoughts?
"The most terrifying words in the English language are: I'm from the
government and I'm here to help." - Ronal Regan.
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