Dear Friends,
You have likely heard or will soon probably hear about lawsuits against real estate brokerages, the National Association of REALTORS®, and MLS services. These suits are not all equally meritorious, but they all attack the current compensation model that is used in the residential real estate industry in the United States. The general model is that sellers agree to a total commission with their listing brokers, a portion of which is shared with the buyer’s broker. Some claims argue that the requirement for sellers to offer compensation to buyer agents pushes up commissions and increases housing costs for buyers. Others argue that it allows inferior agents to get paid as much as more experienced and talented agents to the detriment of the consumer.
A settlement impacting most of the involved parties has been proposed. I expect that over time compensation in our industry will become more closely commensurate with the experience and value that each agent brings to the table, and I welcome that change. Experienced veteran agents like me will still be around to serve you both to buy and to sell.
The changes validate the model I have always worked with when practicing buyer agency: I tell you upfront what my fee is and anything the seller is offering towards that end reduces what you pay out of pocket. Because I have always worked this way, I have never been in the position of steering buyers toward one property or the other based on what compensation is being offered.
I’m a little bit dubious about home prices dropping as a result of the decoupling of commissions because the buyer has always been the person cutting the check that pays both sides of the commission. I have long believed that the buyer’s agents should be compensated based on an agreement with their own clients, which is how I have always operated.
You are going to hear a lot more about this from me as the details come out - but here's the long and short of it:
Buyers have become accustomed to having their own advocates and will continue to value counsel – but they will need to be more discerning about the value proposition of the counsel they employ. Ultimately, buyers AND sellers are going to continue to be best served by having a proficient buyer agent involved in the transaction to help problem-solve towards a successful closing and the free market will support that. I have enjoyed doing this work for my clients and their friends and families for nearly fifteen years and I will continue to hone my craft to help each and every one of my clients achieve the best results available to them in the marketplace. Please feel free to reach out to ask me any questions you may have about these impending changes.
Warm regards,
Sammy
Featured Listing
2122 California St NW #354
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Springbreak Staycation
With so much to do, see, and explore in the DMV area - why go anywhere else?
Bring your kids or be a kid again at the Jurassic World Live Tour at Eagle Bank Arena in Fairfax, VA.(Including a dino meet & greet.)
The district's gorgeous Cherry Blossoms are in full bloom quite early this year. Here's where to catch them off the beaten path.
Surround yourself with the rich greenery of spring by booking a stay in upscale treehouse. Perfect for romantic, solo, or family adventures.
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