03/16/2024
My independent thoughts on the NAR ruling:
So the recent ruling with the National Association of REALTORS® that ultimately trickles down to the CALIFORNIA ASSOCIATION OF REALTORS® are testament of where practices should be for Realtors and Brokers alike. For years I have been an advocate for lower fees (4% and below) and truly executing real estate practices that are in the best interests of my clients. This is a wake up call for all in the industry. I’ve always negotiated lower rates on my listings to benefit my clients, not me! Sadly that practice has been frowned upon by other agents and brokers as it digs into their profit. I belve that these changes will be better for the consumer and show that agents don’t have to “get rich” on every transaction. It will also force agents to make more ethical decisions that benefit their clients. My hope is that these practices will spill into the lending (and other financial institutions) side as well and rid the millions that exist in junk fees.
The second part to this is the buyer representation. We could see both positives and negatives as result of this ruling. If buyers decide to hire a realtor, they will be responsible for their commission. I see these services going to mostly flat fees in the future. Another side of this could create many litigious issues for buyers who decide not to hire representation. In that sense it will be a win for real estate attorneys. My hope is the buyers will make the right decision and hire representation when needed.
Andy Flores
01727868
Ashby & Graff
