The 17th Has Come and Gone: Doom and Gloom, or Business as Usual?

The 17th Has Come and Gone: Doom and Gloom, or Business as Usual?

The day many anticipated as the "death of real estate commission" has come and gone.

But did anything actually change?

We interviewed some agents and gathered the following statistics:

• 88% of listings taken are still offering co-op commissions. (Note: We did not interview agents in states that no longer allow co-op commissions.)

• 8% of agents said they would consider compensating a buyer’s agent or covering the cost.

• 4% stated they would entertain the idea, but only if the compensation was included in the offer.

For many agents, it’s business as usual on the listing side of things.

Now, let’s talk about the buyer's side.

While we've all seen the horror stories circulating online, these are likely just outliers. 

We polled agents, and 92% reported no issues getting their BAC (Buyer Agent Compensation) agreements signed. 5% reported that they had to negotiate their fee down or sign a step-down addendum, agreeing to reduce the commission if it couldn’t be fully negotiated. 3% reported they couldn’t get a BAC signed.

If you’re keeping track, this potentially affects only 7% of deals, according to our survey.

So, while the "internet," especially TikTok and Twitter, has been aggressive and vocal against agents, the general public clearly doesn’t share those views.

The vast majority of people still want to use an agent and are willing to compensate you.

Will there be outliers? Of course. Will you make less money on a deal or two each year? Possibly. But this won’t shake the fabric of the business like many anticipated or maybe even hoped for.

Disclaimer: The agents we interviewed had a plan, a framework, and practiced before having these conversations with their clients. It’s important, whether on the listing or buying side, know how to have this conversation effectively.

We’re taking on a few agents who would like help creating a conversation framework to ensure you get your BAC signed and thrive in 2024 and beyond. The agents who adapt to this will get more than their fair share of business. Apply here

We know this isn’t the end of the changes, and we anticipate more to come. Rest assured, we'll cover these developments and more to help you stay informed and ahead of the curve.

Thanks for reading LoveToList!

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