Boston condo brokers thought on the elimination of the buyers-agent

Boston Condos for Sale and Apartments for Rent

Boston condo brokers thought on the elimination of the buyers-agent

What will happen in 6-12 months? The buyer-agent will be extinct, except in higher-end areas where professional services are appreciated by those who value their time more than money. The main reason the buyer-agent will go away is because nobody within the real estate industry is standing up for buyer-agents. The brokerage admin people are already viewing the new rules as logistically more challenging (i.e., more paperwork) and a hot bed for more lawsuits, which is likely. It will be easier just to offer buyer-agents nothing and wish them luck.

This is the dawning of single agency – stay tuned!

Boston condo brokers thought on the elimination of the buyers-agent

Due to expected scrutiny from the DOJ, the Boston condo market my see the at of the buyer-agents. If a listing agent wants to include paying an incentive to buyer-agents, not only do they have to convince a seller that it’s a good idea, but then they have to use an optional form and NEVER call it a commission. Beginning on July 24th:

First, the National Association of Realtors botched the defense of buyer agency – allowing the world to believe there has been a conspiracy to inflate real estate commissions – which could not be further from the truth. They didn’t even try to fight it – they just caved and revised their forms instead and expect agents to adjust.

This is a disaster. Buyer-agents will be expected to convince buyers that they need to commit in writing to paying the buyer on-agent commission before buyers even find a Boston condo for sale. They don’t think they need help finding a property – they have access to Zillow.

They will go direct to the listing agent instead.

SINGLE AGENCY IS UPON US

It will be the worst thing to happen to real estate ever, yet outsiders will claim that they got commissions reduced so it worked and everything is fine.

Sales will plummet the rest of the year – I guarantee it – but we won’t know if it’s due to buyers waiting it out and/or not knowing what to do, the insane political circus that will only get worse, or if home prices and rates are too high. But that is a wicked triple threat!

Peace be with you

Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114

Updated: Boston Real Estate Blog 2024