Hell Yeah, You Still Need A REALTOR®. Here’s Why

It’s all about putting an end to steering – that shady practice where bad agents push Buyers towards certain properties based on the commission they stand to pocket. Pretty slimy, right? With this rule in place, NAR® proposes it levels the playing field and gives Buyers the freedom to explore their options without feeling like they’re being herded like cattle by a real estate agent. The goal here is transparency, accountability, and a real estate market where everyone has fair & equal access to listings they can tour at their liking.

This rule change is a game-changer, putting power back where it belongs – in control of the Buyers. It’s like pulling back the curtain on a magician’s trick, revealing the sleight of hand that’s been happening behind closed doors, to end steering Buyers toward what some grubby agents would consider better paying property sales. Bid farewell to the days of backroom deals and hidden agendas. It’s about damn time.

• Rule Change #2: Sellers can still agree to pay the Buyer’s Agent in their Offer during contract negotiations

Alright, let’s break this down because there’s some serious real estate drama unfolding, and we’ve got the inside scoop. Sellers, listen up – you’ve still got the power to sweeten the deal for those Buyer’s Agents during contract negotiations at the Offer stage, no doubt about it. But hold onto your hats because the DOJ’s throwing a curveball into the mix. They’re shaking things up by letting Sellers decide whether to advertise any Buyer’s Agent compensation outside of the MLS, since Buyer’s Agent commission will no longer be listed on the MLS anymore to prevent steering.

Sellers can still offer compensation to Buyer’s Agents, that has not changed. Listing agents and Sellers can continue to cover the Buyer’s Agent compensation outside of NAR® affiliated MLS systems. The DOJ intends to de-couple commissions on residential real estate sales, which gives Sellers the option not to advertise a Buyer’s Agent commission upfront. Yep, you heard me right – it’s like playing a game of commission hide-and-seek, but the rules just got a whole lot trickier.

Fear not, dear Sellers, because even if you’re not shouting from the rooftops about those sweet, sweet commissions, the Buyers can still slide them into their Offer to purchase your property. That could still affect your net proceeds from the sale. It’s all about keeping your options open and being ready to negotiate like a boss. The Buyers can still include their agent’s commission in their Offer, so you should be prepared to negotiate accordingly. With a little savvy negotiation and airtight contracts, you’ll come out on top every time.

• Rule Change #3: Buyers must sign a Buyer Representation Agreement that outlines scope of services upfront

Listen up fellow cautious Buyers (aren’t we all?), because I’m about to lay down some truth bombs. When a REALTOR® hits you with the ol’ “sign on the dotted line” spiel before even showing you a single property and suddenly you’re hit with a curveball: It turns out, you gotta sign on the dotted line with your agent before they even show you a single house due to new laws taking effect mid-July 2024. NAR® and the DOJ may require that agents working with Buyers must enter into a written agreement upfront – before showing any properties.

This is meant to ensure home Buyers know going in what scope of representation services they can expect to receive, how much their REALTOR® will charge for these services, and when that payment is due.

Talk about flipping the script. No doubt we’re all hesitant to dive headfirst into a contractual abyss. Who wants to lock themselves into a legal commitment before even knowing if this REALTOR® can deliver the goods? How do you know this agent is the real deal? What if they’re all talk and no action? Ask as many questions as you need to be comfortable moving forward. So, if you’re feeling a little wary about signing on that dotted line before even touring a house together, take a step back to interview your prospective Buyer’s Agent, read the fine print, and make damn sure you’re calling the shots in your house hunting journey. The goal is to create more transparency in the transaction.

Buyers Must Sign Buyer-Broker Agreement for Representation & Mandatory Disclosures Upfront

Future home Buyers, we’ve got some real talk coming your way. If you’re getting ready to buy a new house with plans on hiring a REALTOR® to show you properties and negotiate on your behalf, be sure to bring your reading glasses, scour the fine print, then sign on that dotted line. Signed Buyer Agreements will be required for Buyers represented by an agent before touring a property. Yep, I’m talking about the infamous Buyer-Broker Agreement – that little piece of paper that seals the deal between you and your real estate agent.

But hold up, it’s not just a formality; it’s your golden ticket to the proper protection as a Buyer in this cutthroat real estate game. Signing that bad boy means you’ve got a REALTOR® in your corner, fighting tooth and nail to snag you the best damn house possible. And let’s not forget about all those mandatory disclosures – the skeletons in the Seller’s closet that everyone’s dying to spill. You better believe your REALTOR® will uncover the nitty-gritty details, from leaky roofs to haunted attics. So, if you’re serious about scoring your next house without getting burned or unwanted surprises, grab that pen and get ready to make it official from the start.

Do I Have to Pay A Buyer’s Agent Commission?

Here’s the lowdown: if you’re wondering if you have to pay a Buyer’s Agent commission, the truth is that it all boils down to what is written in your agency contract.

Whether you foot the bill or not depends on the fine print. Some Sellers agree to cover the commission for both agents, while others might expect the Buyers to pony up for their own agent. It’s like a game of real estate roulette, and you’ve gotta know which outcomes are predictable. So, before you shell out any cash, make damn sure you’re crystal clear on who’s paying the Buyer’s Agent. Changes to the commission law could require a written agreement for the Buyer’s Agent to be paid by the Buyer if the Seller won’t pay.

To offset the Buyer’s obligation to pay their broker, the Sellers may offer a concession toward closing costs. Working with a kickass Buyer’s Agent isn’t just a luxury, it’s a damn necessity. When you’re selling a home with your Listing Agent, and you want to make sure you’re not swimming in a sea of window shopping sharks without a life raft, that’s where the Buyer’s Agent swoops in like a superhero. They reduce the headaches and risks that come with buying & selling a property.

We’re talking smoother transactions, fewer sleepless nights, and more cash in your pocket. Together, we’re a powerhouse team, showcasing your listing like it’s the hottest ticket in town and attracting a swarm of eager buyers faster than you can say “sold.” A great Buyer’s Agent brings a truckload of expertise to the table, meaning that the buyers knocking on your door are the real deal, ready to seal the deal with cash in hand and smiles on their faces.

If you’re serious about getting top dollar for your digs, you better believe that offering Buyer’s Agent compensation is still one of the smartest moves you’ll make during your property sale. Especially if your goal is to attract the most qualified Buyers who are comfortable paying the price you want with the terms you desire.

Good News for Buyers & Sellers: Transparency

Despite all the chaos and drama of these commission lawsuits in the real estate world, there’s a glimmer of good news shining through like a beacon of hope. Buyers and Sellers will both benefit from better transparency, like a breath of fresh air in a stuffy room. Thanks to these lawsuits shaking things up, folks are starting to see behind the curtain and get a peek at how money moves through their real estate sale. No more coupled fees – it’s all laid out on the table for both parties to see.

It’s a small shift in how we do business with Buyers, with transparency leading the charge. Buyers and Sellers are both more knowledgeable and aware of how brokerage fees, so there’s no guesswork and no surprises. Here’s to a brighter future for Buyers and Sellers alike, where honesty reigns supreme and everyone leaves the closing table feeling like they got a fair deal. Cheers to ringing in a modern era of transparency in real estate.

Bad News for Buyers & Sellers: Challenges

Amidst the chaotic ripples and legal wrangling of these commission lawsuits in the real estate realm, there’s some potentially bad news lurking in the shadows, like a dark cloud on the horizon. Buyers and Sellers are caught in the crossfire of swirling headlines and it feels like you’re wading through a swamp of uncertainty & confusion. With lawsuits flying left and right, the landscape of real estate is getting murkier by the minute.

Sellers are sweating bullets, worried about whether or not to pay a Buyer’s Agent commission and what these legal battles mean for the bottom line. Buyers are also scratching their heads, wondering if they’re getting shafted in the process. And let’s not forget about the elephant in the room – the potential for increased costs and fees trickling down to the folks just trying to buy or sell a damn house. It’s like a real estate labyrinth come to life, with no exit in sight. We are hoping for smoother seas ahead, where Buyers and Sellers can navigate the real estate market without it feeling like balancing a tightrope. Over time, there will be more clarity despite the chaos and you’ll come out the other side stronger than ever.

Pros and Cons of Buying a House without a REALTOR®

Buying a house without your own REALTOR® and instead working with the Listing Agent is a rookie move that can easily turn into a costly mistake you don’t want to make. There are already greedy agents who made headlines for encouraging buyers to come directly to the Listing Agent to avoid paying any fees. REALTORS® like these are taking advantage of opportunistic headlines by cutting out the Buyer’s Agents under the guise of saving the Seller money. They phrase it as reduced commission, but forget to mention this also discourages Buyer representation. What gets lost in their discussion is how this greed pushes ethics to the sidelines. Dual agency is also heavily restricted in some states.

Diving into the deep end of the real estate pool without a trusty REALTOR® by your side is a wild ride. You’re itching to snatch up a house and make it yours, but also wonder — do I really need a REALTOR® to make it happen? On the bright side, purchasing real estate without a Buyer’s Agent means cutting out your middleman and maybe saving yourself a hefty chunk of change in commission fees, depending on the house you buy. Plus, you’ve got full control over your house-hunting journey, from scouring listings to scheduling those oh-so-exciting home inspections and appraisals.

But hold onto your hats, because buying a house solo isn’t all sunshine and rainbows. Without a REALTOR® in your corner, you’re missing out on our insider knowledge of the market, our negotiating prowess, and our ability to sniff out those hidden gems or red flags in the market. And let’s not forget about the paperwork – navigating the sea of contracts and legal jargon is enough to make anyone break out in a cold sweat. Before you go charging into battle without a REALTOR® by your side, weigh the pros and cons carefully. After all, buying a house is a big deal, and you deserve to do it right.

Pros and Cons of Selling a House without a REALTOR®

Selling your house solo isn’t all sunshine and rainbows. You’re ready to cut ties with your old house and move on to greener pastures, but the question remains in your head – do I really need a REALTOR® to sell my house? Of course, going agent-free means you’re saving yourself a hefty chunk of change in commission fees, and who doesn’t love keeping more cash in their pocket? Plus, you’re fully directing the process, from setting the asking price and hosting open houses to negotiating those sweet, sweet offers.

But from another angle, there’s a dark side to flying solo as a For Sale by Owner. Without a REALTOR® by your side, you’re missing out on our keen expertise, our network of industry professionals, and our insider knowledge of the market. And let’s not forget about the paperwork – navigating the maze of contracts, disclosures, and legal mumbo jumbo is enough to make anyone’s head spin. Before you go ditching your REALTOR® to sell your house yourself, weigh the pros and cons carefully. After all, selling your house is a big deal, and you deserve to do it right.

Green Light: What Makes a Great Real Estate Agent

A great REALTOR® is more than flashy suits and smooth talk – it’s about having the grit, guts, and genuine desire to bat for you, no matter what.

The best REALTOR® for you is an honest and transparent real estate agent who communicates well with you, makes you feel seen, and taken care of. We’re talking about a REALTOR®who’s got their finger on the pulse of the market, who knows the ins and outs of every neighborhood like the back of their hand, and who’s not afraid to roll up their sleeves and get their hands dirty when it’s crunch time.

But hold onto your hats, because that’s just the tip of the iceberg – a great REALTOR® is also a honed negotiator, a fierce advocate, and a trusted confidante rolled into one. They’re the kind of person who’s got your back from day one, who’ll go to bat for you like it’s the World Series, and who’ll stop at nothing to make sure you walk away with keys to the property in hand.

If you’re on the hunt for a real estate agent who’s more than just a pretty face, who’s got the chops to back up facts with data, and who’s ready to go the extra mile to make your goals a reality, then you better believe you’re in the right place.

So, what qualities make a great San Diego real estate agent? Here’s exactly what makes a great REALTOR^® and the key traits you should look for:

Red Flags: How to Spot a Bad Real Estate Agent

Abysmal REALTORS® are part of the reason why people are fed up with the housing market. Luckily there are some easy ways to sniff out a bad real estate agent from a mile away so you can spot sketchy REALTORS® before they sink their claws into your homeownership plans.

When you suddenly find yourself face-to-face with a so-called “expert” who’s more snake oil salesman than savvy negotiator, keep your eyes peeled for a real estate agent who’s gonna have your back – not stab you in it. So, how do you separate the good agents from your average list of property peddlers? First off, trust your gut. If something feels off, chances are it probably is. Watch out for slick talkers who promise the moon and deliver dust, or those flashy asshats who talk a big game but can’t back it up with results.

And let’s not forget about the most common red flag: radio silence. If your REALTOR® is missing when you need them most, leaves you out on a limb, or plays hide-and-seek with important info, it’s time to kick them to the curb. Don’t settle for anything less than the best when it comes to finding your real estate agent. Your homeownership goals deserve a badass agent who’s got your back every step of the way.

So, what are some clear warning signs of a bad real estate agent? There are a few ways to gauge if your REALTOR® is doing a terrible job. Take heed of these red flags:

Major Pitfalls: When Not to Hire a REALTOR®

By far, the top reason not to hire a REALTOR® is because they’re not a good fit for you. Maybe they’re giving off major used car salesman vibes, or perhaps they’re dodging your questions in a sweat. Whatever it is, don’t ignore that nagging feeling in your gut. When it comes to real estate, you need someone in your corner who’s got your back, not someone who’s gonna leave you high and dry when the going gets tough. Before you sign on that dotted line, ask yourself – do I really trust this REALTOR® to have my best interests at heart?

There are other instances when it makes absolute sense not to hire a REALTOR®. The most common is when you’re related to the Buyer or Seller. If you are selling a house within your family, you could easily skip the real estate agent and handle the sale with a real estate attorney instead. Another scenario where you might not hire a REALTOR® is if you’re already an experienced real estate investor, developer, or builder/contractor who has purchased and sold multiple properties in the past. It makes sense not to hire a REALTOR® in situations where you already understand the process very well.

Maybe you’re flipping houses like a boss, or perhaps you’ve got a piece of land that’s screaming for a big savvy developer’s touch. In these cases, you won’t need to hire REALTOR® until you’re ready to reap a return on your hard-earned cash. You’ve got the vision, the expertise, and the guts to make it happen on your own. So, before you dial up that real estate agent, ask yourself – do I really need someone else in the driver’s seat right away, or am I ready to take the wheel? Would a REALTOR® help steer this ship straight to success? You can blaze your own trail during the early stages, or you might not hire a real estate agent to help you buy or sell a house at all.

Should I Go Directly to the Listing Agent?

Going directly to the Listing Agent as a Buyer is a rookie move that can easily turn into a costly mistake you don’t want to make. When you’re scrolling through listings, and you stumble upon your dream home – the one that makes your heart skip a beat – pump the brakes for a hot second before you start planning your housewarming party. Here’s the deal: that Listing Agent might seem like your ticket to scoring the house of a lifetime, but they’ve got a loyalty to the Seller, not you.

That’s right – they’re a double agent in this real estate game, working to get the highest price for their client, not looking out for your best interests. So, before you go cozying up to the Listing Agent and spill all your house-hunting secrets, remember this: you deserve someone in your corner who’s got your back, not someone who’s playing both sides of the field. Do yourself a favor and find yourself a badass Buyer’s Agent who’s ready to fight tooth and nail to get you the best damn deal on the market. When it comes to real estate, it’s all about having the right ally in your corner.

Don’t call the Listing Agent on the “For Sale” sign and also vet the agent hosting the Open House. They already work for the Sellers, not you.

Do I Really Need A REALTOR® to Buy A House When Most Homes Are Online Already?

Many online platforms like Zillow, Redfin, OpenDoor, and Homes.com make it super easy for you to browse real estate listings and see available properties on your own. But so much more goes into buying a house than scrolling through cleverly-angled photos.

Picture yourself with dreams of the perfect place dancing in your head, ready to snatch that new house and conquer the market like a boss. But let’s face it, trying to navigate through this freaking jungle of scarce listings, fine print paperwork straight from the ninth circle of hell, and negotiations hotter than Satan’s sauna, all while dealing with the chaotic circus of moving, is like trying to escape from a labyrinth guarded by dragons while hopping on a pogo stick. Seriously, it’s a monumental clusterf*ck when you’re already overwhelmed, a task fit for a modern-day Hercules, and frankly, it feels like you’ve been thrown into a real estate version of straight up Hunger Games. Not exactly a day in the park, am I right?

So, do you really need a real estate agent to buy a house in San Diego? The short answer is no — but that answer comes with a lot of caveats. Buying real estate without a REALTOR® usually has a steep learning curve, and moving can be stressful enough as it is.

Here’s why hiring a great REALTOR® to help with your property purchase is still a smart move:

You’re Stronger with Your Own Advocate

When you’re thinking about buying or selling a house in San Diego, the biggest thing on your mind is probably how much money you should get. REALTORS® are the magic genie of your homeownership dreams, and you’re gonna want our expert advice by your side as an advocate to protect that big investment.

We’re like the toothfairy of house hunting, waving our magic wand (okay, maybe it’s just an inkball pen or a middle finger) on your behalf to turn those real estate woes into wins. Having a badass REALTOR® by your side is like wielding a machete through the thick underbrush, slashing through obstacles and paving the way to victory with courage and wit, so you can tell everyone at the office about your grand plan to buy or sell some real estate.

Your Neighborhood Norms Are Local

Before you can buy or sell a house, you’ll need to scope it out first and we’ve got the lowdown on all things local. Think of us as your personal tour guide to the local area, dishing out juicy neighborhood gossip and insider info on everything from the best brunch spots and that food truck festival to the up-and-coming new construction in San Diego worth checking out.

With our finger on the pulse of the real estate market, you’ll avoid overpriced money pits and journey into buying a building with ease. We’ll show you why an Open House is some of the most fun you’ll have in real estate, what you should know before you even start house hunting, and how to follow basic showing etiquette while touring homes for sale.

You’ll Negotiate Without Compromise

But wait, there’s more! Negotiation? We’ve got that on lock. Armed with a healthy mix of charm, wit, and a sprinkle of real estate magic, your REALTOR® will wrangle the best possible deal for you faster than you can even say “dream home.” No more sweating over counteroffers or stressing about closing costs – we’ve got your back from start to finish.

We’ll really talk numbers when you’re ready to make an Offer on a home. Put on your thinking cap and prepare to analyze the market together, then part with an insane amount of money if it all looks good.

You Can Focus on the Paperwork

Get ready to loosen up your writing hand because real estate paperwork is a test of will. There is nothing more awesome than moving ownership of your home, but you have to sign for it first. Lucky for you, your REALTOR® is a paperwork ninja, slicing through red tape with ease and making sure you dot those i’s and cross those t’s like a pro.

You’re going to have to sign your name like 300 times along the way. Maybe 400. Seriously, it’s insane. Consider us your personal secretary, minus the coffee runs. Your REALTOR® might bring you an energy bar and maybe one of those handgrip exercise tool things since you’ll easily complete an entire novel’s worth of paperwork ahead of closing day.

Your Sanity is Saved for Moving

Perhaps the best part of having a real estate agent in your corner? Peace of mind, baby. In a world where one wrong move can send your homebuying dreams up in flames, having a trusted ally by your side is worth its weight in gold. We’re not just transaction facilitators – we’re your confidants, your counselors, and your biggest cheerleaders, ready to slay dragons and conquer mountains on your behalf.

Bottom Line: More Options and Room to Negotiate

The San Diego real estate market offers Buyers and Sellers more freedom to negotiate commissions and explore available options. Before you go thinking you can conquer the real estate world solo, think carefully. While it’s possible to buy or sell a house without hiring a REALTOR®, why not invest in an advocate to see you through the most difficult parts of the process?

Let’s face it, the best REALTORS® are real estate ninjas who slice through obstacles and make magic happen. Embrace great agents as property people who understand your house, as a structural building, and put our expertise to work for you. When it comes to buying or selling real estate, you’ll want all the help and backup you can get. We’ll help you avoid sneaky money pits hidden behind pretty crown molding, lurking behind the fancy trim.

Disclaimer: This post is written by Portia Green, REALTOR® at Compass. Opinions are all my own and not the views of Compass as a brokerage. The updates expressed here are not endorsed by Compass Real Estate. These are simply my thoughts as a REALTOR® and a longtime advocate for professionalism within the real estate industry. I’m dual-licensed to practice real estate in two states, California & Massachusetts, and also serve as the 2024 Vice-Chair of Membership for the San Diego Association of REALTORS® in addition to sitting on our Government Affairs & Marketing Committees this year.