Lawsuits against NAR

Thanks for bringing this up, ​@Jason Withmore!
Curious to hear what you all think - ​@Tom_Williford ​@Cory Boatright ​@Peter Osmanski ​@Zoerene ​@Ruben Jimenez ​@Goldendeals777 are you familiar with these lawsuits and the commission changes being discussed? What’s your impression so far, and do you see it impacting how investors find deals?

I don't follow the lawsuits so much, practically speaking as someone who is licensed and also wholesales I have seen little difference. Full disclosure - I don't list a high volume, I typically only use listing when it is the best exit strategy to meet a seller's goals, and I have never served as a buyer's agent. So surely high volume agents may have a different opinion. 

Whether it is good or bad for investors, I guess it depends on what side. From an acquisition side, I don't think it has any impact at all. There will always be distressed properties, many are better acquired off market direct to seller. Now on the dispo side, if you are selling a completed flip, it comes down to how much value do you place on an agent who brings a qualified buyer. The seller determines that value/compensation. I educate sellers that if an agent brings a qualified buyer who makes a strong offer that meets your needs, it seems reasonable that agent should be compensated. The impact of these lawsuits is real though - when I have had listings, one of the first questions the buyer's agent asks is if the seller is open to paying their commission. If not, why would they waste their time showing a property for free. Who would? 

I find it interesting all the focus on buyer's agent costs, where I have seen people who do a high volume of flips reduce selling costs is actually negotiating a lower listing agent commission, and paying the buyer's agent a good rate if they bring a qualified buyer. Especially if that listing agent is someone they utilize when acquiring properties, or provide a high volume of business.  

Thanks for sharing your experience ​@Peter Osmanski! 🙌
Great point about the seller ultimately determining the value of a buyer’s agent, especially in dispo scenarios. Curious to see how others are navigating this shift too!