This seller is saving $60,000 by not paying a buyer’s agent commission, so we can book a showing directly with the seller or buyers can pay their agent a commission as one of the lawsuits against the National Association of Realtors is suggesting.
The vacation rental crackdown in Kailua got rid of most of the competition, so this home we just listed which is a legal B&B is very rare, and the lucky owners will be able to book up easily at a higher rate because of the lack of vacation rentals in Kailua.
A Realtor was so upset that I displayed one photo for expired listings that they reported my website yesterday to the Honolulu Board of Realtors.
Per their rules, I have to hide expired and withdrawn listing data from the public unless they sign up with me to see it.
I was hiding the detail page with all the photos and all the details, but I did show one photo and some summary information in my search results in case it might interest someone, then they could sign up to see everything.
I don’t get why Realtors are so adamant about hiding data from buyers and sellers.
It does not benefit them in any way in my opinion.
I now have 48 hours to remove this data from public view.
The National Association of Realtors should allow buyers and sellers to see all listings without restrictions.
This is the largest purchase and sale one will make in their lifetime.
It should be against the law to hide listing data that might help consumers buy and sell a home.
I read an article in a Real Estate publication that was titled “6 reasons NAR’s commission rules work”. It was an article that backs up why commissions should stay the same.
There is a lawsuit that contends that buyers should pay their own agent commission. Currently, buyer’s agents are paid a fixed commission from the seller.
The argument is this would allow more competition on the buyer’s agent commission.
For example, on the seller’s commission, there are many options. We offer a $3,500 Flat Fee option, and many sellers pay an agent 2.5% to 3%. However, on the buyer’s side, there are no options. The commission is fixed, normally at 2.5% to 3%. There is no opportunity for a flat fee commission option, or to negotiate the commission based on the amount of work required. If the seller offers anything less than the going commission rate Realtors might not show their home to buyers.
I noticed most Realtors agreed with everything said, but it left me perplexed as I did not agree or understand any of the points made.
The way I see it, Realtors like their fixed 2.5% commission on the buyer’s agent side. They don’t want buyers asking them to reduce the commission, or asking them if they will offer a flat fee. They don’t want a free and open market where buyers have different levels of service and different fees based on the service they get.
I get that. If I am a Realtor representing a buyer purchasing a $2 million property, I am getting $50,000 in commission. Why would I want a buyer asking me if I would do it for a $3,500 Flat Fee instead, or perhaps negotiate the commission down to $5,000 or $10,000?
However, Realtors have to realize from the buyer’s perspective they like the idea of saving $40,000+ on their purchase. If the seller does not have to pay the buyer’s agent $50,000, they can sell for $50,000 less. If the buyer can then pay a $3,500 Flat Fee to their agent, the now saved $50,000 less $3,500 which equals $46,500.
The article tried to convey things like lenders won’t lend on buyer’s agent commissions if paid directly, even though they lend on buyer’s agent commissions now. They said it will be the end of the MLS and would prevent a free and open market, lol. These two are really funny because the MLS makes no money on buyer’s agent commissions, so the MLS will go on regardless, and for them to say a free and open market is forcing sellers to pay 2.5% commission is very strange indeed.
Anyway, it will be very interesting to see if this lawsuit changes anything.
2 Out of Every 3 Single-Family Homes Sell for Over the Asking Price in September Year-over-year market activity continues to mark gains, but month-to-month closed sales dip
Closed sales of single-family homes and condos in September continued to outpace sales activity from the same time last year, recording 8.4% and 34.9% increases, respectively. However, sales dropped slightly compared to August, with single-family homes down 0.2% and condos dipping 8.9%. The median price for a single-family home remained at $1,050,000, while the median condo price rose 7.4% year-over-year to $478,000.
Around 57% of single-family homes sold in September were priced at $1 million and above, and the most volume growth occurred in the $1,000,000 to $1,399,999 range, with more than double the sales as last September. Roughly two out of every three single-family homes sold last month closed above the original asking price. The practice of bidding over the asking price was most prevalent in the Ewa Plain region, representing more than 80% of the region’s third-quarter sales.
Sales of condo properties in the $700,000 and above price range more than doubled year-over-year with 129 closed sales compared to just 57 last September. Meanwhile, 39.6% of condos sold for more than the asking price in the third quarter, especially in the Central, Ewa Plain, and Makakilo regions, where this occurred in over 70% of sales.
“We’re seeing a slight decrease in total sales month-to-month as families focus on the return to the school year and prepare for the holiday season, which is typical for this time of the year,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “Despite the modest dip in market activity, the majority of homebuyers continue to bid over the asking price in the hopes of securing a property to call home.”
Asking $885,000 in Pearl City. Sold for $295,000 over asking. Realtor comments say there may be settlement issues. The value is in the land because the lot is 11,250 square feet with R-5 zoning so it could be subdivided and two new homes built.