Episode #62 - What's happened with buyer's comp since the agreement?

Introduction  

• Host Bob Mangold, the Listing Coach, welcomes listeners to this week’s episode.  
• Topic: What’s happened to buyer’s agent compensation six months after the NAR agreement.  
• Encourages listeners to join the Real Estate Asset Advisor Facebook group and connect at www.homebosslistinghub.com.

Interest Rates Update  

• Treasury Secretary Scott Besant notes interest rates have dropped weekly since the November election, now in the high 6% range.  
• The spread between treasury note rates (e.g., 30-year vs. 10-year) is narrowing quickly, a positive sign.  
• Atlanta Fed revised Q1 GDP from +2% to -1.5%, which may prompt the Fed to lower rates, benefiting mortgages, auto loans, and the economy.  
• Besant predicts a profound positive impact on the housing market within weeks if rates continue to decline.

NAR Settlement & Commission Trends  

• Studies show commission rates dipped slightly after the NAR settlement but have largely recovered to pre-settlement levels.  
• A report of 224,000 transactions found buyer and seller commissions stable five months post-August rule changes.  
• Buyer’s agent commissions average 2.55%, unchanged overall, with slight variance by price point (e.g., 2.5% under $500K, 2.17% over $1M).  
• Listing agent commissions rose slightly to 2.73% in January, up from 2.69% post-settlement.  
• Half of surveyed agents report no significant commission changes, though negotiation by buyers and sellers has increased.

Market Insights & Agent Value  

• Sellers recognize offering buyer’s agent compensation drives sales; homes not on MLS sell for less.  
• Agents must articulate their value—studies show little change in compensation reflects this success.  
• In markets like Phoenix, excluding MLS limits exposure to millions of potential buyers, reinforcing the "when buyers compete, sellers win" principle.  
• Emotional support and liability management (e.g., calming sellers during negotiations) remain key reasons agents are irreplaceable.

AI in Real Estate  

• A Spanish company attributed $100M in sales to “AI agents,” but this reflects AI answering queries, not replacing agents.  
• AI enhances efficiency (e.g., 3 a.m. ad responses, scheduling calls), but liability ensures agents remain essential.  
• Bob critiques the irony of attorneys decrying 3% agent commissions while taking 40% of the NAR settlement.

Conclusion  

• Six months post-NAR settlement, commissions hold steady, signaling stability for agents.  
• Long-term outlook is positive as agents continue proving their worth.  
• Bob signs off with the mantra: “If you list, you last”—tune in next week!

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