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A consumer’s guide to the divorced real estate commission: Undermining the arguments in support of the status quo

Part V: Why arguments for the current method of compensating real estate agents and against divorcing the real estate commissions must fail As I write this, the National Association of Realtors is preparing for its annual convention, to be held this year in America’s playground, Las Vegas, Nevada. This year marks the 100th anniversary of […]

A consumer’s guide to the divorced real estate commission: Cataloging benefits — starting with a complete catalog of available homes

Part IV: Divorcing the real estate commissions will result in benefits not just for buyers but also for their agents and for the real estate market as a whole The National Association of Realtors is embroiled right now in a protracted anti-trust suit brought by the United States Department of Justice and the Federal Trade […]

A consumer’s guide to the divorced real estate commission: We’re just sitting here at the closing table, watching the money flow

Part III: The who-pays-whom of real estate is not as simple as you might have thought… All right, let’s go buy a house. I want to talk about the flow of money in a real estate transaction, and there is no better way of understanding that flow than wading right out into the middle of […]

A consumer’s guide to the divorced real estate commission: Will the necessity of negotiating their buyer’s agent’s compensation make buyers more practical?

Part II: How buyers can finally take a seat at the grown-up’s table When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, “How much do you charge?” A motivated seller is done with the house, and now all that matters is money. Sellers […]

A consumer’s guide to the divorced real estate commission: Why buyers and sellers each paying for their own representation is the most significant reform that can be made today in residential real estate

Part I: How we got into this mess in the first place Can we be straight with each other? I’m not a soft and subtle kind of guy, and my working assumption is that you are sick to death of being hustled — handled — lied to. We yammer all day about transparency, but if […]

Where can a good girl go to meet a skeezy divorced high school drop-out who works part-time at the public library?

Central Phoenix, of course, but your boy doesn’t actually work at the library, he just hangs out there from 9 am to 9 pm. This is from Zillow.com: Central City residents are distinct from people in surrounding areas because: A larger number did not complete high school. A higher proportion of them are divorced males. […]

How not to divorce the real estate commissions: L.A. buyer figures out who pays the commissions but seems not to grasp the nature of the listing agreement

Via Freakonomics, the L.A. Land weblog at the Los Angeles Times has a shaggy-dog story about a buyer who came up with a brand new way to shoot herself in the foot: Pay all the commissions herself, regardless of the terms of the listing agreement and the HUD-1 procedures currently in place: I thought it […]

The divorced real estate commission file: An organic compendium of arguments, pro and con, on divorcing commissions

I had the idea of building this last night, cataloging the BloodhoundBlog posts on the subject. Lani had a better idea, so I appropriated it. Attached below is a fairly comprehensive list of posts, both for and against, on the idea of divorced commissions. I think this is the most important idea we’ve addressed, here […]

Divorcing the real estate commissions is simply a matter of HUD-1 bookkeeping effected by the mortgage lender

In a charmingly romantic post this morning, Jonathan Dalton gets bogged down in the all-too-common idea that divorcing the Realtors’ commissions would impose some new financial burden upon buyers, resulting in their loss of representation. This is false. Although we operate by the fiction that the seller pays the real estate commissions out of the […]

If lenders divorce the commissions, they’ll be divorced

Jim Duncan issues a battle cry for divorced commissions: As a profession, we need to rid ourselves of Cooperative Compensation and the practice of the listing broker paying the Buyer’s Agent. Cooperation between Brokers need not go away. In fact, without cooperative compensation, the practice of real estate representation will be enhanced, as the perceived […]