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March 18, 2024

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Joe

Ethan Varian at the Merc can sense he has more than a few stories ahead on the commission structure change. Here's some predictions he lists:

“Younger, hard-working Realtors will be willing to offer a much lower number because, with home values so high, that’s still a big commission,” said Louis Mirante, a housing policy expert with the pro-business group Bay Area Council. “Younger, hard-working Realtors will be willing to offer a much lower number because, with home values so high, that’s still a big commission,” said Louis Mirante, a housing policy expert with the pro-business group Bay Area Council.

To survive in this new paradigm, agents may need to work harder to justify their rates by honing their expertise or offering new services. On the flip side, more could start offering flat fees, or discounted rates for basic services such as writing up a contract. Meanwhile, a growing crop of startups from the Bay Area and beyond see a prime opportunity to replace them altogether.

While sellers will continue to be able to pay buyers’ agents, many agents are expected to start contracting directly with buyers, potentially giving house hunters more leverage to shop for a better rate.

And when acting as the seller’s agent, DeLeon is trying something new: offering a buyer’s agent a flat fee, starting at $10,000.

In the latter case, if the buyer’s agent wants more, the buyer can pay the difference. Otherwise, DeLeon is prepared to represent the buyer for the listing free of charge. Despite the low margins, DeLeon said he’s seeing more than a dozen offers on some properties.

Matt Parker, a long-time broker, wants to help overwhelmed home seekers by giving them the tools to buy a property without hiring an agent at all.

His new company, Alokee, based in Walnut Creek and Seattle, seeks to automate the home buying process — from making an offer to filling out the paperwork to close a deal — through its online platform. Buyers either pay a $10,000 fee or select services a la carte.
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Using my numbers in the post, half of $132K is $61K which is a far cry from $10K.

Joe

Local B'game realtor Raziel Ungar is out with a 15-minute YouTube video on the legal settlement. He goes through:

What The NAR Commission Settlement Really Means For Homebuyers and Seller

I'm going to demystify the 7 misconceptions about this settlement.

https://www.youtube.com/watch?v=XMdHt4ra6-Y

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