Prepare to navigate the choppy waters of the real estate market with Fathom Realty's Derek Tiemann, as we uncover the truth behind the National Association of Realtors settlement on "Life Unscripted". This episode peels back the layers of commission disclosures and ethical practices across states, offering a treasure trove of insights for everyone from the rookie homebuyer to the seasoned investor. With Derek's expertise, you'll be armed with the knowledge to understand how these changes affect your real estate ventures, and what you can expect when it comes to the real cost of buying or selling property. Plus, we're shining a light on the legal intricacies that continue to reshape the housing market, so you can stay ahead of the curve.
As the industry gears up for significant shifts this summer, we're here to guide you through the evolving real estate documentation and the importance of buyer agency agreements. Our discussion is your compass to ensuring you don't miss the finer points when signing on that dotted line. With an eye on future tech advancements like fiber optics in urban zones, we're forecasting the landscape ahead. And don't miss out on our upcoming live-streamed roundtable, where fellow agents will dissect the implications of the NAR settlement in even greater detail. Join us for an episode that not only informs but transforms your approach to the ever-changing realm of real estate.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Life Unscripted with Kevin Shook.
Catch Life Unscripted withKevin Shook on YouTube Plus,
sprout, spotify and ApplePodcast.
Speaker 2 (00:11):
Boom, there it is and we're live.
It worked?
Yeah, absolutely, we're live.
And as soon as I hit, as soonas I tagged you in it, the
countdown ended.
But welcome to Life Unscripted.
I love it Totally off the rails, which is life.
(00:34):
And speaking of life, we haveDerek Tiemann here.
He's a real estate agent atFathom Realty, your expert real
estate team here in Richmond,and today he's going to share
some insight, his opinions, somemarket outlooks.
Recent headlines was the NARsettlement?
(00:57):
I said that?
Right?
Yeah, I already forget what NARstands for National Association
of Realtors.
All right, so he's going toexplain to us what's going on
with that and how it mightimpact first-time buyers,
sellers, vets, Sellers.
Speaker 1 (01:14):
I mean, really the big point, man, is get straight
through all the misconceptions,straight to the point what's
facts, what's not facts, what'sbeing, you could say made up or
just kind of overly projected,because at the end of the day
there's a lot of.
I mean, come summer, wheneverything really goes into
effect and the changes that theymake, it's all going to be
decided.
Then what happens is going tobe what the agents take and
(01:36):
where we come out with it.
So really nobody knows exactlywhat's happened.
We just know the facts that wehave and those are super simple.
There's two big changes cominghappened.
We just know the facts that wehave and those are super simple.
There's two big changes coming.
Change one is, as of now, asagents, if I list a house, I sit
down with the seller.
In Indiana we've always donethings very ethical and kind of
opposite to.
Some states seem to have doneit due to some of the things you
(01:57):
see in some of these settlementstatements and getting some of
these settlements to the pointthat they were.
But we sit down with the seller.
If you was listing your housetoday, I'd sit down with you.
Part of this listing contractis going to specify what my
commission is that I'm chargingyou to list your home.
So I'm like hey, I'm chargingyou 6%, that's my fee, that I
decide that's what I'm going todo.
And then in there alsospecifies I'm splitting part of
(02:21):
my commission with a buyer ifthey bring an agent to the table
or if they bring a client tothe table.
So I work that out with you atthe table.
So you know that I'm gettingpaid 6% and I'm splitting that
in with the buyer if anotheragent brings a buyer.
So that's how we've done things.
Come summer we're no longergoing to be able to disclose if
we're paying anything to thebuyer side.
(02:43):
So that's the big thing that Ithink a lot of people are
getting tied up on.
Is what does that look like forsellers?
Are they not going to have topay this fee, are they not?
But at the end of the day, I'm,as a listing agent, still going
to charge the same and I wouldstill attend it.
Pay out the same, do thingskind of business as usual?
None of that changes.
Speaker 2 (02:59):
So let's back this train up.
What the hell is this?
Speaker 1 (03:04):
Yeah Well, how did, how did it get here?
Speaker 2 (03:07):
So a lot of people so like what?
What happened?
What is the NARS settlement?
Speaker 1 (03:10):
Yeah.
So it all was rooted from somesellers in a lot of bigger,
bigger areas.
You look at New York,California, a lot of fast paced,
high scale markets wherethey're selling multimillion
dollar homes.
Their contracts look a lotdifferent than ours.
A lot of these areas weren'tdisclosing that.
There was even some of thecommission going to a buyer's
agent.
They were just listing theirhouse fast-paced, paying large
(03:32):
percentages from again 6%million dollar deals.
That's a lot of money and theydidn't even know that it was
going to pay this other side ofthe transaction.
So some lawyers formatted alawsuit against the association
forcing change.
What I find kind of ironic is,judging by the changes that
they're putting in place, theseller really sees very little
impact.
It really impacts a buyer morethan the seller because, like
(03:54):
kind of we was talking a littlebit before If you come to list
your house, let's say it cutcommission in half, 3%, you get
to sell your house.
Well, what do you got to doonce you sell your house?
Right, you got to buy a house,but I'm still going to pay that
another 3% to your agent on thebuy side Cause a buyer's agent.
We're not going to work for free.
Everybody's going to still needpaid.
It's just a matter of less whathow much is going to be and
(04:17):
more or less who that moneycomes from.
So if the seller wasn't payingit, refusing to pay it, that was
always okay, but then thatbuyer would have had to be the
one to pick up the slack and paythat fee.
So as a seller who started thissettlement, they're really not
really seeing much impact on thescale of things because they're
still going to be paying a 6%if it's three and three on both
sides.
Speaker 2 (04:37):
So where does all the there's a whole uproar about
this.
Yeah, where's that coming in?
Because I talked to anotherrealtor today and he kind of
explained all of this to me aswell and all of his both of your
opinions kind of go on the sameways and what you think is
going to happen and how it'sgoing to impact it.
But he was explaining somesituations to me where it could
(05:00):
get a little dicey withparticular agents and it might
push away first time buyers orlike like you mentioned.
So he said that right now theveterans loan.
I guess it's a federal law thatthey can't do that.
So is this something that Imean and it hasn't completely
(05:21):
passed yet, right, like thecourt still has to sign off on
it?
Speaker 1 (05:25):
There's still so many moving parts.
Now what the association hasreleased is just two kind of
minor changes.
One we can't disclose if thereis a commission to be paid on
our MLS, which is where all ofhis agents go to find properties
to send to our clients, to kindof communicate on the back end
on what's going on and whatcomes with these properties.
But then the second thing isevery and this is going to be
the thing that I think buyersare going to see immediately
(05:46):
changing is every buyer willhave to sign a buyer's agency
agreement with the buyer's agent.
So there's no more of thatgoing into an open house and
just kind of buying the house,like you're going to have to
commit to the agent that youwork with.
So I love that.
I mean as an agent, I think anyagent out there.
They've worked with people andthen they find a house on Zillow
and you never hear from themagain.
They buy.
So, this is going to, in a sense, really help kind of keep that
(06:09):
loyalty within the clients insome sense to save us time,
which could help.
But ultimately, yeah, I meanit's going to be interesting.
Speaker 2 (06:18):
So what are some things?
Okay, you're a realtor, yeah,so you should advocate for your
client always.
What are some things you mightsee with this that they have to
sign, that the buyer may need tobeware of?
Like they might not know ofthis change and then realize
(06:40):
once they bought the housethey're financially responsible
to pay this guy just because itwas in the contract.
Speaker 1 (06:46):
So there's two parts to it.
So, on that contract, once yousign a contract, your buyer, you
sign a contract with me.
If you go in there, there'sterms on these contracts.
There's two terms that are realimportant the date, the extent
of this contract.
So if you sign it today, at sixmonths, you're committed to me
for six months.
If you go and buy a house withanother agent while this
contract is between me and you,it predates even if they sign a
(07:08):
contract too.
It predates that you could getsued.
Took the small claims court forwhatever the fee was the buyer
Yep, the buyer.
So the second part to thiscontract is going to be the
money that you agree to pay thebuyer's agent, and this is going
to be the tool to the.
I mean because, at the end ofthe day, you're going to agree
to pay X amount of commission tothat buyer's agent.
So, as a buyer, if things doswitch and let's say the seller
(07:30):
doesn't want to pay thatpercentage of a commission or
they don't in our case inIndiana want the buyer's or the
seller's agent to cover thatcommission and they just want to
reduce commission or something,that buyer is going to be
responsible.
And so that's where I find theirony in the whole lawsuit is
the sellers ain't even winning.
The buyers are just gettinghurt.
Right, but sellers are buyersbecause nobody just sells a
house.
(07:51):
Usually they don't sell a houseand just go go rent something.
They're traditionally, you know, moving up the scale or buying
something bigger, smaller andrelocating so, um, I was.
Speaker 2 (08:01):
You know I've only bought one home, so I was the
first time home buyer once andum, it's nerve-wracking as hell.
Yeah, there's a ton ofdocuments and I'm impatient as
hell, so I didn't read all thatstuff like I should have.
Um, do you think first-timebuyers hearing this type of
stuff do you think it might shythem to renting, or do you think
(08:22):
like it might?
How does that need to beapproached from the agent
standpoint?
Speaker 1 (08:28):
yeah, I mean it's going to be in everything.
So I mean it's so early on andall this right, right, it hasn't
even been signed.
Yeah, that's why, like like Isee all these media things and
I've been, I've had past clientand current clients send me this
like what does this mean?
What's going on?
And that's why, like us havingthis conversation getting here
is awesome is because to get infront of all that kind of
misdirection, because mediamedia does go wild with stuff
(08:50):
but ultimately what it couldmean worst case scenario, I mean
forecasting if sellers did theydid not want to that's now
going to be more expenses forthose first-time homebuyers.
It could be huge for them ifthere was a seller that didn't
want to cover that cost, becausea lot of times we're already
positioning offers to haveclosing costs paid for the buyer
, whether it's going towardstheir.
(09:12):
I mean so many different things.
There's no room to add on fees.
So my Aunt, Lisa's watching.
Speaker 2 (09:17):
Yeah, Hello, Aunt Lisa.
So she just asked does thismean if we see a house when we
are out on a Sunday drive, wehave to go find an agent instead
of dropping in and saying Iwant this.
We can no longer have an agentact for both sides?
You can, yes.
Speaker 1 (09:33):
Yeah, so they're not doing away with what we call
limited agency.
So I could be representing thebuyer and seller, and so that's
fine.
And as of the first kind ofquestion on the Sunday drive, if
it's an open house, it's reallynot clear.
And so that's where we kind ofget into the procuring clause
and stuff like can we still doopen houses?
Do we have to have consentpapers in there when?
Speaker 2 (09:51):
people come in, so there's a lot of unknown.
Speaker 1 (09:53):
There's so much unknown and that's where it's
really just going to be like.
There's no way anybody canforecast it, but I think there's
going to be more or lessdisclosures or something that's
signed at open houses maybe.
But to answer her questionthere, yeah, you definitely will
be able to pop in, but the bestpractice I think would be is to
find an agent, find an expertagent, definitely with these
changes and things coming along,that really knows how to
(10:14):
navigate the future and what'swhat's happening and what's
changing.
Speaker 2 (10:18):
Thanks, for the question At least.
Yeah, absolutely.
Anyone else have questions?
Just uh, thumb in the comments.
We can see them in real time.
This doing to the market in thenext five years, the next 10
(10:38):
years, I would say.
Speaker 1 (10:42):
Okay, let's start here.
Here's the big thing is I don'tthink and this is all kind of
my personal opinion, right, Idon't see there being much
within at least our localmarketplace too much being
changed.
There's not much you could doto really adjust and change from
the scale, because at the endof the day, two people are
(11:05):
getting paid from one commission.
You know what I mean.
So buyers, agents who is kindof targeted towards changing the
way buyers are handled, notgoing to be, not going to do it
for free.
So when I'm going into alisting appointment, once all
this stuff goes into effect, I'mgoing to explain to sellers
where it's like hey, this is mycommission to list your house If
I find a buyer.
So let's say you want to list itat a reduced commission, that's
(11:26):
half of it.
I'm only listing your house IfI bring a buyer to this.
If you want me to representthem, I'm going to want paid for
that as well.
So there's going to be twosides.
So it's going to really be inthe hand of us agents and how we
represent our clients to theirbest interest, because at the
end of the day, you can not wantto pay a buyer's agent but if
they're bringing a buyer oreither their buyer wants
representation, you know what Imean.
(11:47):
Absolutely so it's there'sstill a need and a demand for
the services that are out there.
It's just an uproar of peoplewondering what's going to happen
and how it's going to play out,and really it's.
It's more just thedocumentation side changing and
that's how.
Speaker 2 (11:59):
So I'm not an expert with real estate at all, I just
take pictures of it.
Oh, that's pretty um in video,whatever.
But uh, it, from what you'vetold me, um, from what jason
falcon told me earlier, um,explain this, all of this to me
it it seems like it is just moreof a documentation thing.
(12:22):
The pay doesn't really changefor the realtors, it's more so
the documentation of where thatother half's coming from and
here sign this.
Buyers are going gonna have tobe more aware of what they're
signing because it's going to bein that agreement and I feel
(12:43):
like, you know, you might havean agent that's not the most
honest or the most like,empathetic towards their buyer.
That might just slide to hey,six months, 12 months, yeah, and
I mean and it is.
Speaker 1 (12:57):
I mean I've always advocated for both buyers and
sellers.
You got to know what you'resigning and you really really
need you know.
You got to ask questions,especially with these buyer
agency agreements.
So you know, cause they won'thave to let you out, you might
be committed to an agent andreally doing more research than
you did before on working withbuyers agents, that's going to
be huge.
Know who you're working with.
Yeah, because I mean I'veworked with buyers who you know
(13:20):
end up closing with other people.
I know a lot of other ones hasand every agent whether it's a
personality type, the way theydo business, or it literally is
you just want that flexibility.
You can demand where it's likehey, I want to see this house
that you have listed today.
I don't want to be committedwith you no longer than one day.
You're no longer than one day.
You're in control of what goesin the dots.
You know what I mean, so makesure that you know what that
(13:40):
says.
Speaker 2 (13:40):
So what's the?
We got to wrap up here in aminute.
Thanks, ellen.
She said I'll do a great job.
She didn't say anything aboutyou.
We'll talk about that.
Yeah, we'll talk about thatafter.
So what's the timeline on this?
What's like the?
What was the last step?
Speaker 1 (13:59):
What's the next step?
Yeah, as of steps, I'm not sure, but I know the changes to the
contracts are coming this summer.
I can't remember.
It's either June or July thatthe changes will go into effect.
So, starting this summer, wewill be having those buyer
agency agreements will getpushed out there, those MLS fees
are going to have to come offthe MLS.
So the first steps to seeingthe difference in the market
that everybody's kind offreaking out about, those are
already confirmed, those arealready going to happen.
Speaker 2 (14:19):
Okay, so that's, that's that's when it rolls out,
and then it's going to be allfun from there okay, so, um,
we'll cut this, but we willfollow up, because I think the
next thing I'll ask you about is, uh, the lending agencies, yeah
, and their reaction oh yeah,that's a whole another ball game
.
Speaker 1 (14:38):
Yeah, I mean there there's going to be I know
they've been.
They've been in a lot ofchanges, a lot of meetings
trying to adjust and stuff.
So I know there's going to bechanges on that end, cause
there's going to be some timeswhere it ain't it ain't covered.
There's some fees that ain'tgoing to be covered.
It's going to be different.
And then to ask for creditsfrom lenders and stuff like that
might come up.
But it's going to beinteresting.
Speaker 2 (14:58):
Because I mean, if I'm first time, I'm seeing all
these little 3,500 here, fivegrand here, yeah it's, it gets
less.
You're not supposed to movemoney around in your bank
account, so you're trying to geta loan, yeah.
Speaker 1 (15:10):
It's so overwhelming and that's what I'm most scared
about is it's going to impactthe people, the core first-time
buyers, more than anybody.
Well, them are the ones thatare-.
Speaker 2 (15:18):
We're the intimidated , you're the intimidated.
Speaker 1 (15:20):
Yeah.
So it's like for us at the endof the day, as from a real
estate perspective, there's noone price agent for all.
There's agents and brokeragesout there independent brokerages
and unique brokerages thatallow their agents to do stuff
for free if they want to.
So it's not the question of arewe going to take less?
We already decide the pricethat our service is worth.
If it was going to bediscounted, it would have
(15:42):
naturally been discounted fromthose agents willing to do it
cheaper, absolutely.
There are options out therethat you get less.
It's just like anything.
You know what I mean.
That's already an option.
Speaker 2 (15:50):
I feel like you get what you paid for Exactly.
I've heard of some realtorssaying I'll just cut my
commission and get more business.
Well, at the end of the day, ifyou do that math, it's still
the same amount.
You're just working a whole lotmore Plus.
You get what you paid for.
Speaker 1 (16:09):
And then the quality goes down.
Speaker 2 (16:10):
And the quality goes down, and then you just brought
all everyone else's shit downand now, yeah, so it'll be
interesting to see what thechanges have to jump on here
again a year from now and belike hey, look, yeah yeah, hey,
hey, we have better wi-fi right,hey, we got fiber now downtown.
That'd be great.
That's funny.
(16:30):
I would love to have fiber uphere.
Yeah, um, but so far we're goodwith this.
But, uh, ellen followed up withyou.
Speaker 1 (16:38):
There, you go.
Thanks, Ellen.
Speaker 2 (16:45):
Got you.
So I actually have to go overthere to stop this damn thing.
But everyone thanks for poppingin Life Unscripted Talk to
Derek about this NAR settlement.
We'll follow up again and seewhere it's at here in a few
months or whatnot.
Stay on it, keep researching itand then you know as it
progresses.
We'll do this and especially ifthe court signs off on it.
Speaker 1 (17:07):
Absolutely, and if anybody out there has questions
about it sees something, reachout to me.
I'm always happy to talk aboutit.
Whether it's an agent.
I mean because I know a lot ofagents don't got the resources
or ain't talking to the rightpeople, of agents don't got the
resources or ain't talking tothe right people.
Speaker 2 (17:19):
So they don't have questions.
So, and if anybody, if anyagents, want to come up here and
talk, uh, do a round tableright here with you and
everything else.
Um, we'll live stream it anddrop questions, and that'd be
cool, that'd be, that'd be realcool.
Speaker 1 (17:28):
So, all right out life inscripted with kevin shook
.
Life Unscripted with Kevin Shook.
Catch Life Unscripted withKevin Shook on YouTube Plus,
sprout, spotify and ApplePodcast.
Speaker 2 (00:11):
Boom, there it is and we're live.
It worked?
Yeah, absolutely, we're live.
And as soon as I hit, as soonas I tagged you in it, the
countdown ended.
But welcome to Life Unscripted.
I love it Totally off the rails, which is life.
(00:34):
And speaking of life, we haveDerek Tiemann here.
He's a real estate agent atFathom Realty, your expert real
estate team here in Richmond,and today he's going to share
some insight, his opinions, somemarket outlooks.
Recent headlines was the NARsettlement?
(00:57):
I said that?
Right?
Yeah, I already forget what NARstands for National Association
of Realtors.
All right, so he's going toexplain to us what's going on
with that and how it mightimpact first-time buyers,
sellers, vets, Sellers.
Speaker 1 (01:14):
I mean, really the big point, man, is get straight
through all the misconceptions,straight to the point what's
facts, what's not facts, what'sbeing, you could say made up or
just kind of overly projected,because at the end of the day
there's a lot of.
I mean, come summer, wheneverything really goes into
effect and the changes that theymake, it's all going to be
decided.
Then what happens is going tobe what the agents take and
(01:36):
where we come out with it.
So really nobody knows exactlywhat's happened.
We just know the facts that wehave and those are super simple.
There's two big changes cominghappened.
We just know the facts that wehave and those are super simple.
There's two big changes coming.
Change one is, as of now, asagents, if I list a house, I sit
down with the seller.
In Indiana we've always donethings very ethical and kind of
opposite to.
Some states seem to have doneit due to some of the things you
(01:57):
see in some of these settlementstatements and getting some of
these settlements to the pointthat they were.
But we sit down with the seller.
If you was listing your housetoday, I'd sit down with you.
Part of this listing contractis going to specify what my
commission is that I'm chargingyou to list your home.
So I'm like hey, I'm chargingyou 6%, that's my fee, that I
decide that's what I'm going todo.
And then in there alsospecifies I'm splitting part of
(02:21):
my commission with a buyer ifthey bring an agent to the table
or if they bring a client tothe table.
So I work that out with you atthe table.
So you know that I'm gettingpaid 6% and I'm splitting that
in with the buyer if anotheragent brings a buyer.
So that's how we've done things.
Come summer we're no longergoing to be able to disclose if
we're paying anything to thebuyer side.
(02:43):
So that's the big thing that Ithink a lot of people are
getting tied up on.
Is what does that look like forsellers?
Are they not going to have topay this fee, are they not?
But at the end of the day, I'm,as a listing agent, still going
to charge the same and I wouldstill attend it.
Pay out the same, do thingskind of business as usual?
None of that changes.
Speaker 2 (02:59):
So let's back this train up.
What the hell is this?
Speaker 1 (03:04):
Yeah Well, how did, how did it get here?
Speaker 2 (03:07):
So a lot of people so like what?
What happened?
What is the NARS settlement?
Speaker 1 (03:10):
Yeah.
So it all was rooted from somesellers in a lot of bigger,
bigger areas.
You look at New York,California, a lot of fast paced,
high scale markets wherethey're selling multimillion
dollar homes.
Their contracts look a lotdifferent than ours.
A lot of these areas weren'tdisclosing that.
There was even some of thecommission going to a buyer's
agent.
They were just listing theirhouse fast-paced, paying large
(03:32):
percentages from again 6%million dollar deals.
That's a lot of money and theydidn't even know that it was
going to pay this other side ofthe transaction.
So some lawyers formatted alawsuit against the association
forcing change.
What I find kind of ironic is,judging by the changes that
they're putting in place, theseller really sees very little
impact.
It really impacts a buyer morethan the seller because, like
(03:54):
kind of we was talking a littlebit before If you come to list
your house, let's say it cutcommission in half, 3%, you get
to sell your house.
Well, what do you got to doonce you sell your house?
Right, you got to buy a house,but I'm still going to pay that
another 3% to your agent on thebuy side Cause a buyer's agent.
We're not going to work for free.
Everybody's going to still needpaid.
It's just a matter of less whathow much is going to be and
(04:17):
more or less who that moneycomes from.
So if the seller wasn't payingit, refusing to pay it, that was
always okay, but then thatbuyer would have had to be the
one to pick up the slack and paythat fee.
So as a seller who started thissettlement, they're really not
really seeing much impact on thescale of things because they're
still going to be paying a 6%if it's three and three on both
sides.
Speaker 2 (04:37):
So where does all the there's a whole uproar about
this.
Yeah, where's that coming in?
Because I talked to anotherrealtor today and he kind of
explained all of this to me aswell and all of his both of your
opinions kind of go on the sameways and what you think is
going to happen and how it'sgoing to impact it.
But he was explaining somesituations to me where it could
(05:00):
get a little dicey withparticular agents and it might
push away first time buyers orlike like you mentioned.
So he said that right now theveterans loan.
I guess it's a federal law thatthey can't do that.
So is this something that Imean and it hasn't completely
(05:21):
passed yet, right, like thecourt still has to sign off on
it?
Speaker 1 (05:25):
There's still so many moving parts.
Now what the association hasreleased is just two kind of
minor changes.
One we can't disclose if thereis a commission to be paid on
our MLS, which is where all ofhis agents go to find properties
to send to our clients, to kindof communicate on the back end
on what's going on and whatcomes with these properties.
But then the second thing isevery and this is going to be
the thing that I think buyersare going to see immediately
(05:46):
changing is every buyer willhave to sign a buyer's agency
agreement with the buyer's agent.
So there's no more of thatgoing into an open house and
just kind of buying the house,like you're going to have to
commit to the agent that youwork with.
So I love that.
I mean as an agent, I think anyagent out there.
They've worked with people andthen they find a house on Zillow
and you never hear from themagain.
They buy.
So, this is going to, in a sense, really help kind of keep that
(06:09):
loyalty within the clients insome sense to save us time,
which could help.
But ultimately, yeah, I meanit's going to be interesting.
Speaker 2 (06:18):
So what are some things?
Okay, you're a realtor, yeah,so you should advocate for your
client always.
What are some things you mightsee with this that they have to
sign, that the buyer may need tobeware of?
Like they might not know ofthis change and then realize
(06:40):
once they bought the housethey're financially responsible
to pay this guy just because itwas in the contract.
Speaker 1 (06:46):
So there's two parts to it.
So, on that contract, once yousign a contract, your buyer, you
sign a contract with me.
If you go in there, there'sterms on these contracts.
There's two terms that are realimportant the date, the extent
of this contract.
So if you sign it today, at sixmonths, you're committed to me
for six months.
If you go and buy a house withanother agent while this
contract is between me and you,it predates even if they sign a
(07:08):
contract too.
It predates that you could getsued.
Took the small claims court forwhatever the fee was the buyer
Yep, the buyer.
So the second part to thiscontract is going to be the
money that you agree to pay thebuyer's agent, and this is going
to be the tool to the.
I mean because, at the end ofthe day, you're going to agree
to pay X amount of commission tothat buyer's agent.
So, as a buyer, if things doswitch and let's say the seller
(07:30):
doesn't want to pay thatpercentage of a commission or
they don't in our case inIndiana want the buyer's or the
seller's agent to cover thatcommission and they just want to
reduce commission or something,that buyer is going to be
responsible.
And so that's where I find theirony in the whole lawsuit is
the sellers ain't even winning.
The buyers are just gettinghurt.
Right, but sellers are buyersbecause nobody just sells a
house.
(07:51):
Usually they don't sell a houseand just go go rent something.
They're traditionally, you know, moving up the scale or buying
something bigger, smaller andrelocating so, um, I was.
Speaker 2 (08:01):
You know I've only bought one home, so I was the
first time home buyer once andum, it's nerve-wracking as hell.
Yeah, there's a ton ofdocuments and I'm impatient as
hell, so I didn't read all thatstuff like I should have.
Um, do you think first-timebuyers hearing this type of
stuff do you think it might shythem to renting, or do you think
(08:22):
like it might?
How does that need to beapproached from the agent
standpoint?
Speaker 1 (08:28):
yeah, I mean it's going to be in everything.
So I mean it's so early on andall this right, right, it hasn't
even been signed.
Yeah, that's why, like like Isee all these media things and
I've been, I've had past clientand current clients send me this
like what does this mean?
What's going on?
And that's why, like us havingthis conversation getting here
is awesome is because to get infront of all that kind of
misdirection, because mediamedia does go wild with stuff
(08:50):
but ultimately what it couldmean worst case scenario, I mean
forecasting if sellers did theydid not want to that's now
going to be more expenses forthose first-time homebuyers.
It could be huge for them ifthere was a seller that didn't
want to cover that cost, becausea lot of times we're already
positioning offers to haveclosing costs paid for the buyer
, whether it's going towardstheir.
(09:12):
I mean so many different things.
There's no room to add on fees.
So my Aunt, Lisa's watching.
Speaker 2 (09:17):
Yeah, Hello, Aunt Lisa.
So she just asked does thismean if we see a house when we
are out on a Sunday drive, wehave to go find an agent instead
of dropping in and saying Iwant this.
We can no longer have an agentact for both sides?
You can, yes.
Speaker 1 (09:33):
Yeah, so they're not doing away with what we call
limited agency.
So I could be representing thebuyer and seller, and so that's
fine.
And as of the first kind ofquestion on the Sunday drive, if
it's an open house, it's reallynot clear.
And so that's where we kind ofget into the procuring clause
and stuff like can we still doopen houses?
Do we have to have consentpapers in there when?
Speaker 2 (09:51):
people come in, so there's a lot of unknown.
Speaker 1 (09:53):
There's so much unknown and that's where it's
really just going to be like.
There's no way anybody canforecast it, but I think there's
going to be more or lessdisclosures or something that's
signed at open houses maybe.
But to answer her questionthere, yeah, you definitely will
be able to pop in, but the bestpractice I think would be is to
find an agent, find an expertagent, definitely with these
changes and things coming along,that really knows how to
(10:14):
navigate the future and what'swhat's happening and what's
changing.
Speaker 2 (10:18):
Thanks, for the question At least.
Yeah, absolutely.
Anyone else have questions?
Just uh, thumb in the comments.
We can see them in real time.
This doing to the market in thenext five years, the next 10
(10:38):
years, I would say.
Speaker 1 (10:42):
Okay, let's start here.
Here's the big thing is I don'tthink and this is all kind of
my personal opinion, right, Idon't see there being much
within at least our localmarketplace too much being
changed.
There's not much you could doto really adjust and change from
the scale, because at the endof the day, two people are
(11:05):
getting paid from one commission.
You know what I mean.
So buyers, agents who is kindof targeted towards changing the
way buyers are handled, notgoing to be, not going to do it
for free.
So when I'm going into alisting appointment, once all
this stuff goes into effect, I'mgoing to explain to sellers
where it's like hey, this is mycommission to list your house If
I find a buyer.
So let's say you want to list itat a reduced commission, that's
(11:26):
half of it.
I'm only listing your house IfI bring a buyer to this.
If you want me to representthem, I'm going to want paid for
that as well.
So there's going to be twosides.
So it's going to really be inthe hand of us agents and how we
represent our clients to theirbest interest, because at the
end of the day, you can not wantto pay a buyer's agent but if
they're bringing a buyer oreither their buyer wants
representation, you know what Imean.
(11:47):
Absolutely so it's there'sstill a need and a demand for
the services that are out there.
It's just an uproar of peoplewondering what's going to happen
and how it's going to play out,and really it's.
It's more just thedocumentation side changing and
that's how.
Speaker 2 (11:59):
So I'm not an expert with real estate at all, I just
take pictures of it.
Oh, that's pretty um in video,whatever.
But uh, it, from what you'vetold me, um, from what jason
falcon told me earlier, um,explain this, all of this to me
it it seems like it is just moreof a documentation thing.
(12:22):
The pay doesn't really changefor the realtors, it's more so
the documentation of where thatother half's coming from and
here sign this.
Buyers are going gonna have tobe more aware of what they're
signing because it's going to bein that agreement and I feel
(12:43):
like, you know, you might havean agent that's not the most
honest or the most like,empathetic towards their buyer.
That might just slide to hey,six months, 12 months, yeah, and
I mean and it is.
Speaker 1 (12:57):
I mean I've always advocated for both buyers and
sellers.
You got to know what you'resigning and you really really
need you know.
You got to ask questions,especially with these buyer
agency agreements.
So you know, cause they won'thave to let you out, you might
be committed to an agent andreally doing more research than
you did before on working withbuyers agents, that's going to
be huge.
Know who you're working with.
Yeah, because I mean I'veworked with buyers who you know
(13:20):
end up closing with other people.
I know a lot of other ones hasand every agent whether it's a
personality type, the way theydo business, or it literally is
you just want that flexibility.
You can demand where it's likehey, I want to see this house
that you have listed today.
I don't want to be committedwith you no longer than one day.
You're no longer than one day.
You're in control of what goesin the dots.
You know what I mean, so makesure that you know what that
(13:40):
says.
Speaker 2 (13:40):
So what's the?
We got to wrap up here in aminute.
Thanks, ellen.
She said I'll do a great job.
She didn't say anything aboutyou.
We'll talk about that.
Yeah, we'll talk about thatafter.
So what's the timeline on this?
What's like the?
What was the last step?
Speaker 1 (13:59):
What's the next step?
Yeah, as of steps, I'm not sure, but I know the changes to the
contracts are coming this summer.
I can't remember.
It's either June or July thatthe changes will go into effect.
So, starting this summer, wewill be having those buyer
agency agreements will getpushed out there, those MLS fees
are going to have to come offthe MLS.
So the first steps to seeingthe difference in the market
that everybody's kind offreaking out about, those are
already confirmed, those arealready going to happen.
Speaker 2 (14:19):
Okay, so that's, that's that's when it rolls out,
and then it's going to be allfun from there okay, so, um,
we'll cut this, but we willfollow up, because I think the
next thing I'll ask you about is, uh, the lending agencies, yeah
, and their reaction oh yeah,that's a whole another ball game
.
Speaker 1 (14:38):
Yeah, I mean there there's going to be I know
they've been.
They've been in a lot ofchanges, a lot of meetings
trying to adjust and stuff.
So I know there's going to bechanges on that end, cause
there's going to be some timeswhere it ain't it ain't covered.
There's some fees that ain'tgoing to be covered.
It's going to be different.
And then to ask for creditsfrom lenders and stuff like that
might come up.
But it's going to beinteresting.
Speaker 2 (14:58):
Because I mean, if I'm first time, I'm seeing all
these little 3,500 here, fivegrand here, yeah it's, it gets
less.
You're not supposed to movemoney around in your bank
account, so you're trying to geta loan, yeah.
Speaker 1 (15:10):
It's so overwhelming and that's what I'm most scared
about is it's going to impactthe people, the core first-time
buyers, more than anybody.
Well, them are the ones thatare-.
Speaker 2 (15:18):
We're the intimidated , you're the intimidated.
Speaker 1 (15:20):
Yeah.
So it's like for us at the endof the day, as from a real
estate perspective, there's noone price agent for all.
There's agents and brokeragesout there independent brokerages
and unique brokerages thatallow their agents to do stuff
for free if they want to.
So it's not the question of arewe going to take less?
We already decide the pricethat our service is worth.
If it was going to bediscounted, it would have
(15:42):
naturally been discounted fromthose agents willing to do it
cheaper, absolutely.
There are options out therethat you get less.
It's just like anything.
You know what I mean.
That's already an option.
Speaker 2 (15:50):
I feel like you get what you paid for Exactly.
I've heard of some realtorssaying I'll just cut my
commission and get more business.
Well, at the end of the day, ifyou do that math, it's still
the same amount.
You're just working a whole lotmore Plus.
You get what you paid for.
Speaker 1 (16:09):
And then the quality goes down.
Speaker 2 (16:10):
And the quality goes down, and then you just brought
all everyone else's shit downand now, yeah, so it'll be
interesting to see what thechanges have to jump on here
again a year from now and belike hey, look, yeah yeah, hey,
hey, we have better wi-fi right,hey, we got fiber now downtown.
That'd be great.
That's funny.
(16:30):
I would love to have fiber uphere.
Yeah, um, but so far we're goodwith this.
But, uh, ellen followed up withyou.
Speaker 1 (16:38):
There, you go.
Thanks, Ellen.
Speaker 2 (16:45):
Got you.
So I actually have to go overthere to stop this damn thing.
But everyone thanks for poppingin Life Unscripted Talk to
Derek about this NAR settlement.
We'll follow up again and seewhere it's at here in a few
months or whatnot.
Stay on it, keep researching itand then you know as it
progresses.
We'll do this and especially ifthe court signs off on it.
Speaker 1 (17:07):
Absolutely, and if anybody out there has questions
about it sees something, reachout to me.
I'm always happy to talk aboutit.
Whether it's an agent.
I mean because I know a lot ofagents don't got the resources
or ain't talking to the rightpeople, of agents don't got the
resources or ain't talking tothe right people.
Speaker 2 (17:19):
So they don't have questions.
So, and if anybody, if anyagents, want to come up here and
talk, uh, do a round tableright here with you and
everything else.
Um, we'll live stream it anddrop questions, and that'd be
cool, that'd be, that'd be realcool.
Speaker 1 (17:28):
So, all right out life inscripted with kevin shook
.
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