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IS THIS THE END OF 6% COMMISSIONS PART 4

(continued from last week)
Dear Dave,

Wow, holy headlines!  Can you please give your insight into this new real estate lawsuit and if it’s really “The biggest shake up in real estate in the last 100 years.”  I’d love to get your thoughts on it!

Thanks!
Bob – Mack, CO

Bob,

Final installment 🙂

Let’s put a bow on this package and see where we stand after what we have covered the past 3 weeks and what we can generally assume as we peer into the future of the changing landscape of real estate.

The practice of Real Estate will change as we enter a “new normal” post the National Association of Realtors settlement, but the headlines of its demise are vastly overblown.  After all the lawsuits and hubbub, moving forward it all boils down to one big question for sellers, do I have to pay the buyers agent during the selling process?  The answer to that is no and has always been no.  Sellers have always had a choice of if they pay anybody to help them through the selling process.  For Sale By Owner is as old as the concept of selling real estate so clearly as a seller you have never had to offer compensation, but some things you choose to do because it’s in your best interest.  I don’t have to brush my teeth today, but I do because it’s in the best interest of my health (and breath) to brush my teeth.  I don’t have to hire a mechanic to fix my car, but I do….it’s in my best interest because watching YouTube videos and pulling out my toolbox is probably not….Maybe you see where I am going with this. 

As a seller, by offering to pay a cooperative fee to the buyers agent you will put yourself at a competitive advantage because you will be increasing the size of our buyers pool and in turn increasing the demand for your home…..especially as compared to those who choose not to cooperate.  Is this going to happen because agents will selectively not show the properties that do not cooperate?  No, it’s going to happen because buyers will seek out options where they get help from sellers in paying their agents commission because it is another necessary fee that would prove burdensome to cover out of their own pocket.  Most buyers think their agents should get paid….they don’t expect people to work for free.  They seek out good professional agents to help guide them through the process and look out for their best interests, as most are not sophisticated property purchasers and seek counsel from someone who is…..it really is that simple.   They want the help and want someone who can dedicate the time and energy it takes to help them find the right home.  I believe most sellers understand this concept and once they sit back and think through the process, including the intended and unintended consequences, will choose to continue to maximize their properties exposure by cooperating with buyers and offer buyer’s agent compensation. 

Again, as with most things like this the people who are most impacted are the consumers.  Those who are just trying to pursue the “American Dream” of home ownership continue to get hammered in their pursuit and, as we discussed last week, real estate fees are the least of the items causing real estate costs to skyrocket.  Sure, real estate commissions are an easy target, but more often than not the easy target serves as a distraction for what the real target(s) should be and I believe that again is the case here.  Strong Agents who provide TRUE service to their buyers and sellers will continue to thrive as they adjust to the changing landscape. One of the beautiful things about our country is that it has always rewarded excellence and as long as that continues the strong will create a better path forward!  Onward and upward!!

Thanks again for such a great question and I hope that my answers have provided food for thought. 

Dave Kimbrough
The Kimbrough Team

HAVE A QUESTION? ASK DAVE!

dave@thekimbroughteam.com

   
           
   

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