6% commission

The Motor Court Company said:

So what now?
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Seems like it will end up somewhere between no change and slightly more net proceeds for the seller. If the market is rational and efficient, buyers should lower their bids by the amount they're out of pocket to compensate their real estate agent. Sellers should accept lower prices to the extent they no longer have to pay buyer agent compensation out of their proceeds. Net net not much change.

Typical buyers would be penny wise pound foolish to transact real estate without representation imho.
 
In Irvine given the market and it's many lazy listing agents, you may see more "buyer to pay agents commissions" statements in the MLS description instead of the ".25" or "-0-" buyer commission figures the MLS used to show. Eventually I think this new structure will morph into a spoken word discussion about commission payments or demands during contract negotiations, with the final amounts being written down in am addendum of some sort shortly after escrow opens. Gone will be the days of transparent commission listings which, frankly speaking, lead to steering. Many a realtor would often say the quiet parts out loud: "I won't show my buyers any home with less than an X amount of commission" which was a detriment first to the buyer who was pushed away from prospective homes, but second to the seller, who wasn't able to effectively market the home to the widest possible range of buyers.
 
sgip said:
In Irvine given the market and it's many lazy listing agents, you may see more "buyer to pay agents commissions" statements in the MLS description instead of the ".25" or "-0-" buyer commission figures the MLS used to show. Eventually I think this new structure will morph into a spoken word discussion about commission payments or demands during contract negotiations, with the final amounts being written down in am addendum of some sort shortly after escrow opens. Gone will be the days of transparent commission listings which, frankly speaking, lead to steering. Many a realtor would often say the quiet parts out loud: "I won't show my buyers any home with less than an X amount of commission" which was a detriment first to the buyer who was pushed away from prospective homes, but second to the seller, who wasn't able to effectively market the home to the widest possible range of buyers.
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I think what'll happen is that buyer agents will submit an offer with a CAR Commission Agreement with their requested commission and then sellers will look at the sales price net of the requested buyer agent commission. That being said, I think it'll take a little bit of time for things to change as with realtors it's like turning a big oil tanker.
 
This change makes it more difficult for first time buyers to purchase a house. Sellers are the ones benefiting most from this.
 
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