Our take on a few common myths & misconceptions

1. Sellers will no longer have to pay buyer's agents.

Truth: A seller never had to offer more than $1 per MLS rules. But, one way or another, no one works for free and both agents will need to be compensated - whether through the transaction or from the buyer’s bank account directly. Every buyer working with an agent (which has historically been *most*) will have a signed agreement in place. So, sellers may still choose to offer buyer agent compensation through the transaction, we will likely see some buyers writing their agent’s commission into the offer, or some buyers may choose to pay their agent directly, outside of the transaction. Of course, everything is always negotiable - but we like to think of it as "reward money" for bringing us the best offer. 

2. Buyers will no longer have their own agents.

Truth: Sure, there will always be people trying to save a dollar, thinking they may get a better deal by going direct, and we're likely to see this more. But, is that really in a buyer's best interest? Or, even a seller's, knowing a buyer might not know what they are doing or getting themselves into? The reality is most consumers will continue to happily pay a professional to guide them through the complexities of a real estate transaction - an investment that is likely to be hundreds of thousands of dollars, millions even, in our market. If you've bought before, you likely know the value of having a trusted advisor on your side. So, while our conversations will very much change, we truly think now more than ever people will see the value in having a real estate agent. Contrary to many articles we've read comparing real estate to the travel industry, you simply CANNOT compare buying a million+ dollar, lifelong, possibly 30+ year investment to booking a vacation!

3. Home prices will decrease.

Truth: If this happens - we'll all be surprised. Real estate seems to be the one business the Feds can't tame, even by keeping interest rates elevated. The fact is that supply and demand dictate housing prices, not commissions - and in a well-known twist to the Feds trying to keep inflation at bay, they've actually caused an unexpected dilemma called the "lock-in effect." This means many would be move-up buyers (who bought a few years ago and would be ready for their next, bigger house) just can't afford to both give up their 3% rate and pay a much higher price given the increases over the past few years. So, people who would be moving and selling their entry-level homes are not. This is why we still see 27 offers on homes.

4. There's a standard commission that every agent charges.

Truth: There has never been a standard commission. Like ALL businesses in the world, we are all in the same industry competing with each other, so naturally you will see similarities. But each agent is an independent contractor, we are our own business, and we charge a service fee based on our skills, expertise and services offered. A full fee = full service, a discount fee = lower service. We have never earned a salary.

There's much more to all this, but if you have any questions please feel free to reach out! At Fleet Homes, we are always trying to improve our way of doing things and the industry as a whole - so that everybody wins, both our buyers and sellers. The lawsuits stemmed from a lack of transparency, so one tool we are working on implementing is a fabulous new platform called Final Offer - an offer management tool that allows buyers to make offers online and get offer alerts, but allows sellers to negotiate through the platform and also set their own dream "Buy It Now" price. Reach out to us to learn more!