{"id":18324,"date":"2021-07-17T11:45:35","date_gmt":"2021-07-17T18:45:35","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=18324"},"modified":"2021-07-17T11:45:35","modified_gmt":"2021-07-17T18:45:35","slug":"buyer-agency-project-buyer-agents-offer-no-value-today","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18324\/buyer-agency-project-buyer-agents-offer-no-value-today\/","title":{"rendered":"Buyer Agency Project: Buyer agents offer no value today."},"content":{"rendered":"

“I just showed three houses this week, out in L******, and all of them had 2% co-brokerage fees.\u00a0 Learn to sell, listing agents”<\/em><\/p>\n

I read this post (paraphrased), from a former car salesman with a Florida real estate license, in a Facebook group the other day.\u00a0 The irony of it was too delicious to pass up so I responded with something like this:<\/p>\n

“It is laughable to watch an agent, who can’t sell a buyer on the value of his services, complain about the fact that his compensation is set by another real estate agent.\u00a0 Sell your value to your buyer, charge a fee for the services you will provide, disclose how that buyer brokerage fee will be paid, and negotiate a contract which pays you that fee in a manner which benefits your client”.<\/em><\/p>\n

I may have taken a snarky swipe at the original poster but I don’t remember because he deleted the thread.\u00a0 Good.\u00a0 I am sure the guy was just airing his frustrations but that sort of weak sauce is the last thing I would want on the internet if I were him.<\/p>\n

Let’s talk about the REALITY of real estate brokerage in 2021:<\/strong><\/p>\n

1- While price appreciation may have slowed<\/a>, the real estate market still has a supply\/demand imbalance.\u00a0 This means that homeowners can negotiate lower commissions to sell their homes.
\n2- Listing agents, with the right property, have little to no need for buyer agents today.\u00a0 If it is priced at fair market value, entered properly in the MLS, and aggregated across all of the realty bots, buyers will line up to tour the home.\u00a0 Thus, paying a co-brokerage fee of more than $1 seems like a giant waste of money.
\n3- The US Department of Justice doesn’t like this at all<\/a> and the National Association of Realtors has lost any power<\/a> to perpetuate the existing compensation model.\u00a0 Expect buyer brokerage compensation to change.<\/p>\n

Every time this subject comes up, buyer agents wail and grind their teeth.\u00a0 The most common comments I read are “It’s so hard to work with buyers nowadays, I DESERVE to get paid more; I practically work for minimum wage”.\u00a0 Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“I just showed three houses this week, out in L******, and all of them had 2% co-brokerage fees.\u00a0 Learn to sell, listing agents” I read this post (paraphrased), from a former car salesman with a Florida real estate license, in a Facebook group the other day.\u00a0 The irony of it was too delicious to pass […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,11,5,10,27,30],"tags":[],"class_list":{"0":"post-18324","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-disintermediation","7":"category-dual-agency","8":"category-real-estate","9":"category-realty-reality","10":"category-redfincom","11":"category-supplanting-the-nar","13":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2179,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2179\/a-consumers-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-estat\/","url_meta":{"origin":18324,"position":0},"title":"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","author":"Greg Swann","date":"November 7, 2007","format":false,"excerpt":"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\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1251,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1251\/redfincoms-real-estate-consumers-bill-of-rights-a-wolf-in-sheepskin-clothing\/","url_meta":{"origin":18324,"position":1},"title":"Redfin.com’s Real Estate Consumer’s Bill of Rights: A wolf in sheepskin clothing . . .","author":"Greg Swann","date":"April 2, 2007","format":false,"excerpt":"I am a hardliner on the subject of reform in the real estate industry. Over the last nine months, I have written at great length about, among other things, the skill-set required to survive in the future of full-service real estate, empowering buyers, dual agency, how the NAR makes war\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":236,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/236\/how-to-exterminate-a-cowbird-a-comedy-in-three-acts\/","url_meta":{"origin":18324,"position":2},"title":"How to exterminate a cowbird — a comedy in three acts . . .","author":"Greg Swann","date":"August 23, 2006","format":false,"excerpt":"Act I -- Why Realtors hate discount listings... People think ordinary on-the-ground Realtors hate discount listings because of the discount. That's may be true of many real estate brokers, but real-life Realtors have two much better reasons to hate discount listings. First, the Buyer's Agent will have to do all\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1444,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1444\/by-withholding-the-secrets-of-the-mystical-mls-system-are-we-betraying-the-home-buyers-interests\/","url_meta":{"origin":18324,"position":3},"title":"By withholding the secrets of the mystical MLS system are we betraying the home-buyer’s interests?","author":"Greg Swann","date":"May 18, 2007","format":false,"excerpt":"In all my spare time, I've been working over the past few days on a real estate porn movie. The film features pictures from hundreds of homes, with loads of juicy details. We took the photos over the course of years, so it's entirely possible that some of those homes\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":314,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/314\/caesars-wife-on-the-witness-stand-the-moral-the-practical-the-marketable-and-the-defensible-approach-to-forbidding-dual-agency\/","url_meta":{"origin":18324,"position":4},"title":"Caesar’s wife on the witness stand: The moral, the practical, the marketable and the defensible approach to forbidding dual agency . . .","author":"Greg Swann","date":"September 10, 2006","format":false,"excerpt":"I had a great letter today from Bob Hunter of the Muljat Group about our policy forbidding dual agency. I'll quote the whole thing first:Greg, my wife and I are agents in Bellingham, Wash and I have a question relating to your position on dual agency. Our brokerage is a\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/NoDualAgency.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":649,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/649\/dual-agency-smack-down-a-category-11-hurricane-of-arguments-against-disclosed-dual-agency\/","url_meta":{"origin":18324,"position":5},"title":"Dual Agency Smack-Down: A category 11 hurricane of arguments against Disclosed Dual Agency . . .","author":"Greg Swann","date":"November 17, 2006","format":false,"excerpt":"I'm going to stir up a category 11 hurricane by basing my initial entry in the Dual Agency Smack-Down on our past posts on the subject. 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