New regulations have buyer brokers running crazy! What everybody ought to know.

By Geoff Akers

Back before the government started ‘serving and protecting’ the ‘common’ person in real estate transactions.  The seller agreed to give a commission to their agent.  AND If another agent brought a buyer to that agent – the agents would split commission.  It seemed to work fine since the 1900’s

Thanks to another decision coming out of California, Buyer Brokers now have to discuss the terms of their fee straight away with the buyer.  Which now makes the buyer responsible for paying their agents fee.

But now, let me give you an example of ‘the vision’ behind this new law…

Imagine YOU offer $400,000 and ask the seller to pass along 2.5% of it, or $10,000, to your agent.  Now imagine a competing buyer who also offers $400,000 — but asks for 3%, or $12,000, to pay their agent.  Your offer lets the seller collect $2,000 more. The difference tipping the offer in your favor, all  because you negotiated a better deal with your agent

Now I have no idea WHO these lawmakers are thinking about- when they make these laws, but it sure doesn’t sound like it’s for the average law abiding citizen.   What do you think?  Do you think this is going to make buying a house easier, will it stay the same or will it make harder?

How to Get Your Ideal Phoenix Home Without the Stress

I’m going to give you the low down so that you can be on the up and up.  I’m a rookie realtor and I have nothing to loose by being transparent about this.

It doesn’t hurt me in any way to let you in on the secrets that realtors know – little tips and tricks you can add to your arsenal.

You see, back in the good ole days.  The Sellers agent would split their commission with the broker that brought the buyer.  Now however, the seller has the option to not do that.

If you drive by an Open House with people going in and out.  You are allowed to walk up there and talk with the agent.  That agent may try to get you to sign something, But you don’t have to.

Remember, you do not have to be represented to buy a house!  Believe me, at the door to a house you want to see is no place for you to be signing an agreement to be represented in a real estate purchase :

Even if it’s for 1hour.

Nor do you want to be signing one of these agreements with someone you just met online.

There have been many things I have learned about the real estate market.  Sometimes its fasinating.  Other times it’s interesting.  But Some of the times, it’s just a little ridiculous.  And this is one of those times!  I have no idea why ridiculousness exist in the world, but it does.  I hate it just as much as you do.  Which is why, if you give me just a few minuets I will share with you how to avoid all this ridiculousness.

Let me explain.

 

IN The “Peoples State” of California the National Association of Realtors just settled a lawsuit.  Apparently ‘certain’ sellers didn’t realize that the commssion they agreed to give…was going to be split with their broker, and the buyers broker.  I can only imagine the heartbreak!  To think I asked my agent to sell my house and they go and pay a reward to the guy that brought the buyer!

That my people – is the reason why now you as a buyer have to have a frank discussion with your agent.  Because the seller can opt to not pay the person that brought the buyer.

We should have seen this coming.  The NAR has been fighting this nonsense in the “legal” courts for a while now.  They were found guilty in Missouri and those poor sellers were awarded $1.7 Billion in damages.  They appealed.  However it was too late, for multiple ‘copycat’ lawsuits rushed in from across the country.   It’s too bad the NAR just didn’t hire Judge Judy to try the case.  The whole ridiculous thing would’ve been exposed in 15 minuets.  Case Closed!

But No That’s Not For Us.

“The institutions we have created, the social structures we have created, are in the process of devouring us” 

Terence McKenna

I saw nothing wrong with the way houses were bought and sold before.  Most sellers already understand that they are paying a set commission to their realtor to find a buyer for their house.  Now the buyer, the one who is paying for the house, now has to be told he is liable to pay for the privilage of paying for the house.  And the seller, the one receiving the money, now has the right to receive more!  But there is some good news.

Whats happening now, instead of the the Sellers Broker asking for 6-7%  Now they are explaining that they are asking for 3-4% and the Buyer will ask the seller to pay 2-3%.  Most Sellers agree to this as it’s a no brainer!  Nothing has really changed.  Except that now in the name of Justice -we have to involve you, the buyer into this conversation.

So let me bring you into the discussion like this:

I do not believe that you should loose an offer on a house because of my commission.  There are a plethora of options we can take when it comes to the buyers side for the commission.  I work with a team of lady sharks that have been preparing for this the past year!

Any professional and ethical real estate agent should offer a termination for convenience clause.  You should not be locked into a contract to work with an agent that doesn’t understand your needs!  That’s just ridiculous!  

I do not see these commission structure changes having any substantial impact housing prices.  Buyers you can expect to sign formal agreements when working with real estate agents. Also get ready to shoulder the financial weight of your agents fee…it doesn’t mean you’ll pay it, just be prepared to.

 

The hidden cost of transparency

While this new regulation aims at more transparency – it’s actual impact is just more complication and more expense for the buyer.  In an already challenging market, this added complexity could be a barrier to homeownership for some.  While it might be tempting to DIY your home buy focusing solely on the upfront costs – It would come at the price of not knowing how to leverage the new laws and navigate complex negotiations that could get you a better deal overall!  Staying informed and adaptable is the best position to succeed.

The Pathway To Home Ownership

Hi! I’m Geoffrey Akers. I am a rookie realtor that despises ridiculousness.  I want to cut through the smoke and offer you the truth of the matters. I’ve put together a brochure and training emails to get you up to speed on all the insider secrets to get you ahead in the game.  No matter where you are in your house buying journey – It would be well worth the look

All About The "Happy" Home Buyer

What’s Important To You.  That’s where we’re going to start.  And from there…we will access the widest range of listings with comprehensive filters.

Confidence In Your Home Purchase

Find a community with a strong sense of safety – with easy access to shops and highways.  A welcoming space that aligns with your long term goals.

Simple And Stress Free

Paperwork handling and flexible scheduling.  Clear communication and step-by-step support.  Backed by Real Brokers trusted network of reliable professionals and experts in securing the best deal.

How It Works

Step 1:  Get Started by filling out the form and learning what things you need to prepare.

Step 2:  Find Your Ideal Home.  With tools and frank discussions – we find what you’re looking for.

Step 3:  Make It Yours – With a well negotiated offer and a smooth transition into your home.

Here’s What You Get

  • Tailored Home Search
  • Early access to new listings
  • Team of negotiators to get the best deal
  • Navigating complex transactions
  • Access to off-market properties
  • Customized property alerts
  • Cordination of Inspections
  • Detailed community insights
  • Confidence with informed decisions
  • Legal paperwork and contract review
  • No pressure approach to making the right decsions 
  • Post purchase support for settling in your new home

To learn more about Geoffrey