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<figure id="figure-se6ieu6fhkmetyigzt"><img id="se6ieu6fhkmetyigzt" src="https://cdn.durable.co/blocks/1fQGPQfxCcNEkoqSpRjrxBANns1AsfW432izvPaYqZLH7aNnEpLL1KP1OEwTqkSb.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/1fQGPQfxCcNEkoqSpRjrxBANns1AsfW432izvPaYqZLH7aNnEpLL1KP1OEwTqkSb.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>In 2017, when my wife and I sold our home, we became victims of real estate wire fraud. It was a frightening experience.&nbsp;As a real estate broker and former attorney who worked on policy issues on Capitol Hill, I got involved in national and local wire fraud prevention efforts.What struck me then — and still troubles me now — is that the real estate industry is full of powerful lobbies representing agents, brokerages, lenders, and title companies. But there’s no real voice for homebuyers and sellers.That realization shaped my perspective. And in 2024, when I decided to build an AI real estate platform, I knew I had to start with one question:<h3>Who is my customer? </h3>Instead of building tools for agents, I decided to build a platform that would empower homebuyers. If buyers found SmartBuyers valuable and trustworthy, I knew I could attract the best agents.What It Means in Practice We curate the agents. Think Hotel Tonight – only a few top buyer agents are invited onto the platform. These agents have deep local expertise, a track record of putting buyers first, and reputations for being honest, ethical, and collaborative.Buyers stay anonymous. They can chat with each agent's AI, 24/7, without giving up their email or phone number.Buyers decide if and when to set up a consultation. The AI conversations let buyers “sample” the agent’s tone, personality, and approach. When a consultation is scheduled, it’s not a cold lead. As Seattle agent <a data-mce-href="https://smartbuyers.ai/tylerai" href="https://smartbuyers.ai/tylerai">Tyler Davis Jones</a> of Compass said, <blockquote>When they actually sit down with me, they've already developed a relationship and they understand that  I am an advisor they can trust.</blockquote>In short, we let great agents scale their time, and let buyers access real help without pressure.<h3>Why Buyers Need This </h3>Buyers are being asked to do more than ever — shouldering more risk, navigating more complexity, and making bigger financial decisions with less guidance. The recent NAR commission settlement was supposed to empower buyers through transparency. In practice, it has shifted costs and confusion onto their shoulders.The Compass vs. Zillow debate over off-market listings adds another layer. As private exclusives grow, not all homes are visible to every buyer. Zillow champions full transparency; Compass defends a seller’s right to privacy and strategy. But here’s the buyer’s reality: without a well-connected agent, they may never even see the right home.That’s why networked agents — professionals deeply embedded in their markets — matter more than ever. And that’s who buyers will find on SmartBuyers AI.Bottom line, buyers have a problem. Traditional brokerages and big listing platforms are built to serve real estate agents. Agents bring in the revenue, they are the customer.&nbsp;I’m flipping that model — and building a platform where the buyer comes first.<h3>A Buyer-First Platform </h3>SmartBuyers AI, like Uber, is a two-sided marketplace. Uber has drivers and passengers. SmartBuyers has homebuyers and agents. Our customer is the buyer. Just as Uber focused on riders to drive adoption, we prioritize empowering buyers: offering curated agents, anonymous AI chat, and zero-pressure guidance.Agents benefit too — but only those who serve buyers exceptionally well.By putting buyers first, we increase trust, improve outcomes, and build a better system from the demand side out.<h3>Where We Go From Here </h3>We launched in Seattle this spring with a small group of exceptional agents and AI tools that let buyers engage anonymously before scheduling a consult.&nbsp;Now, we’re focused on driving high-intent buyers to the platform and measuring what works — AI engagement, scheduled consultations, and signed buyer-agent agreements.We’re overdue for a real estate system that puts buyers first. I’m building one version of that future — I’d love to hear what you think.

I Choose Buyers

<figure id="figure-nibycdgserm9khder2"><img id="nibycdgserm9khder2" src="https://cdn.durable.co/blocks/e5tWVVoMv9QUMpprMFFgCt65iKOV2hqKNvhASnP8wzoa8R29ekEGJl01oMKXJpS4.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/e5tWVVoMv9QUMpprMFFgCt65iKOV2hqKNvhASnP8wzoa8R29ekEGJl01oMKXJpS4.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Why Some Homes Sell Before Buyers Ever See Them&nbsp;</h3>Every day anxious homebuyers check Redfin and Zillow for new listings. They are ready to make an offer when the right home appears. Yet, a house in their ideal neighborhood sells — but they never saw it listed. No open house, no front yard sign, no photos, not even a “coming soon” banner online. What happened?&nbsp;Increasingly, homes are being marketed and sold through private networks before they reach the public. Homebuyers today, especially in today's competitive market, should be aware of this quiet shift and how it impacts their ability to compete for a home.<h3>Public Listing Requirement is Faltering</h3>At the center of this change is a rule called the “Clear Cooperation Policy,” introduced by the National Association of Realtors (NAR) in 2020. The rule requires that once a property is publicly marketed — whether through a flyer, social media post, or email blast — it must be listed in the Multiple Listing Service (MLS) within one business day. This rule was designed to promote fairness and transparency. It ensures that any buyer, working with any licensed agent, can access and bid on publicly marketed properties.&nbsp;Glenn Kelman, CEO of Redfin, supports the Clear Cooperation Policy, stating that it "creates a more fair and open marketplace." He warns that weakening the policy could lead to a scenario where "big brokers win, agents and consumers lose," as exclusive listings become a tool for larger firms to dominate the market.Similarly, Zillow supports the policy. Errol Samuelson, Chief Industry Development Officer at Zillow, emphasizes the importance of transparency: "When all buyers don't have the same access to home listings — and are forced to navigate barriers, possible bias, and incomplete inventory — it undermines consumer trust and weakens the market."<h3>Opposition to the Policy</h3>However, the policy is facing opposition. Robert Reffkin, CEO of Compass, argues that the Clear Cooperation Policy limits homeowner choice and forces agents to cooperate with portals that don't contribute to the transaction. He stated, "Cooperation was designed decades ago to allow me as an agent to collaborate with an agent in another company. But now you're forced... to collaborate with portals — companies that don't have agents, don't have listings, and don't have clients."Compass further argues that sellers should have more control over how their homes are marketed. They claim that sellers shouldn’t be forced to list a property on the MLS if it works against their interests — such as when a seller wants to test a price quietly or avoid the stigma of a stale listing.&nbsp;<h3>Industry Association Tries a Middle Path&nbsp;</h3>In response to this pressure and ongoing antitrust concerns, NAR recently introduced a new policy called “Multiple Listing Options for Sellers,” which allows a listing to be added to the MLS but withheld from public websites like Zillow for a short period. The sellers have time to prepare their property for the market while ensuring that other MLS participants are aware of the listing. Buyers, however, are kept in the dark.&nbsp;Sellers have another option if they do not want to publicly list their property for sale. They can keep the listing off the MLS entirely and instead share it privately within their brokerage or, with individual agents they trust. This is an “Office Exclusive” and is allowed under the Clear Cooperation Policy, as long as the listing remains truly private — no online ads, no signs, no social media.&nbsp;While these changes may appear to be happening quietly behind the scenes, it is a loud battle being fought inside the industry. Every major stakeholder is publicly espousing their views – CEOs from the largest brokerages and listing platforms, NAR, class action lawyers who have successfully represented sellers, and industry influencers.&nbsp;Zillow, seeing a potential existential threat, recently announced that it will not display any home that isn’t first published through the MLS. Homes.com, a competing portal, has taken the opposite stance — embracing listings that bypass the MLS altogether and promoting agent control over marketing. Buyers can no longer count on a single platform to give them a complete picture of what’s for sale.&nbsp;<h3>A Smart Buyer Strategy</h3>What does this mean for buyers? Buyers who regularly check Zillow, Redfin, and Realtor.com will miss opportunities. In some markets, 10 to 20 percent of transactions may be happening off-MLS. <blockquote>Buyers who rely solely on search platforms or work with a less-connected agent, are only seeing a slice of the real estate market.&nbsp;</blockquote>On the other hand, buyers working with experienced, well-networked agents — the ones who are trusted by top agents at other brokerages — have access to more than the listings in a public search. These agents are engaged in &nbsp;private conversations about upcoming listings. They know about homes before they’re marketed publicly. They get their clients in early. This &nbsp;kind of access is the difference between finding the right home and finding out about it too late.&nbsp;This is where SmartBuyers AI helps. We’re not a listing portal. We don’t show you homes — we connect you with the agents who can.&nbsp;Our platform introduces buyers to exemplary agents who are respected in their local markets and well-connected across brokerages. These agents are invited into off-market conversations. They &nbsp;get early notice on private listings, and are trusted by other high-performing agents to bring qualified, smart buyers. If listings are going private, buyers need an agent with access — and we help you meet those agents.&nbsp;As you start &nbsp;your home search or, if you’ve already been looking and feel like you’re missing out, the best move you can make is to work with an agent who responds quickly, knows the nuances of your market, and has solid relationships in the market.&nbsp;SmartBuyers AI is designed to give you a buyer’s edge.&nbsp;The real estate industry is changing. Not every home is &nbsp;listed online. Not every buyer is privy to &nbsp;full access. But if you work with the right agent, you’ll be more likely to find the perfect home.

Homes Are Selling Before They’re Listed — Smart Buyers Are Adapting

<figure class=""></figure><figure class=""></figure><figure id="figure-e4tpkpn6frm071l79i" class=""><img id="e4tpkpn6frm071l79i" src="https://cdn.durable.co/blocks/3a2ShgvwNLNgBr8qF9UH3cNzcO39FVfSNkVaDIIvLDAdhqpC2444WoBm3z0hZKVz.png" alt="person using laptop on white wooden table" title="person using laptop on white wooden table" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl selected" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/3a2ShgvwNLNgBr8qF9UH3cNzcO39FVfSNkVaDIIvLDAdhqpC2444WoBm3z0hZKVz.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;" data-mce-selected="1"></figure>Top real estate journalists from the <a data-mce-href="https://nytimes.com/" href="https://nytimes.com/">New York Times</a> and the <a data-mce-href="https://wsj.com/" href="https://wsj.com/">Wall Street Journal</a> published four terrific articles on the changing real estate commission rules and what it means for buyers, sellers, and agents.&nbsp;<ul><li><a data-mce-href="https://www.nytimes.com/2024/08/16/realestate/home-buyers-sellers-rules.html" href="https://www.nytimes.com/2024/08/16/realestate/home-buyers-sellers-rules.html" target="_blank" rel="noopener">Buying or Selling a Home? The Rules Have Changed.</a> by <a data-mce-href="https://www.linkedin.com/in/debra-kamin-89850b13/" href="https://www.linkedin.com/in/debra-kamin-89850b13/">Debra Kamin</a>, New York Times, Aug. 16, 2024.</li><li><a data-mce-href="https://www.nytimes.com/2024/08/16/realestate/realtor-commission-fee-rules.html" href="https://www.nytimes.com/2024/08/16/realestate/realtor-commission-fee-rules.html" target="_blank" rel="noopener">Realtors Resist Changes in Commission</a> by <a data-mce-href="https://www.linkedin.com/in/debra-kamin-89850b13/" href="https://www.linkedin.com/in/debra-kamin-89850b13/">Debra Kamin</a>, New York Times, Aug. 16, 2024.</li><li><a data-mce-href="https://www.wsj.com/real-estate/real-estate-commission-changes-homebuying-cf5d2448" href="https://www.wsj.com/real-estate/real-estate-commission-changes-homebuying-cf5d2448" target="_blank" rel="noopener">So Much About Real-Estate Commissions Just Changed. Here's What to Know</a> by <a data-mce-href="https://www.wsj.com/news/author/nicole-friedman" href="https://www.wsj.com/news/author/nicole-friedman" target="_blank" rel="noopener">Nicole Friedman</a> and <a data-mce-href="https://www.wsj.com/news/author/laura-kusisto" href="https://www.wsj.com/news/author/laura-kusisto" target="_blank" rel="noopener">Laura Kusisto</a>, Wall Street Journal, August 14, 2024.</li><li><a data-mce-href="https://www.wsj.com/real-estate/new-real-estate-commission-rules-impact-9a880731" href="https://www.wsj.com/real-estate/new-real-estate-commission-rules-impact-9a880731">Cutting Fees. Going It Alone. New Rules Are Changing How We Buy and Sell Homes.</a> by <a data-mce-href="https://www.wsj.com/news/author/nicole-friedman" href="https://www.wsj.com/news/author/nicole-friedman" target="_blank" rel="noopener">Nicole Friedman</a> and <a data-mce-href="https://www.wsj.com/news/author/laura-kusisto" href="https://www.wsj.com/news/author/laura-kusisto" target="_blank" rel="noopener">Laura Kusisto</a>, Wall Street Journal, August 16, 2024.</li></ul>As the founder of SmartBuyers AI, a startup dedicated to educating and guiding homebuyers, I’ve been closely following the recent rule changes in the real estate industry. I’ve reviewed the legal documents related to the cases leading up to the NAR settlement and engaged in extensive discussions with agents and leaders at major brokerage firms.Last week, the confusion and anxiety within brokerage firms were palpable. While industry insiders anticipated the changes coming on August 17th, homebuyers and sellers were largely unaware. When the articles were published, I was eager to read the comments from WSJ and NYT subscribers, seeing them as an early indicator of how buyers and sellers perceive the value of agents under the new rules. By Monday morning, there were 2,200 comments in total, and I read most of them.<blockquote>The general sentiment of the commenters is that the real estate industry is outdated, overpriced, and in need of significant change. Technology and market competition should drive down fees, improve transparency, and support new business models.</blockquote>Here is a summary of the key issues and concerns expressed by buyers. The TL;DR: The industry has long popularized the Latin phrase Caveat Emptor — buyer beware. Perhaps a new Latin phrase will soon enter our lexicon: Caveat Agens Emptoris — buyer agent beware.<h3>Widespread Skepticism of Buyer’s Agents</h3><ul><li>Value Perception: A significant majority of buyers are skeptical about the value that buyer’s agents provide. Many feel that agents do not add enough value to justify their fees, particularly with the widespread availability of online tools like Zillow.</li><li>Preference for Direct Negotiation: There is a growing preference among buyers to negotiate directly with sellers or the seller's agents, bypassing buyer’s agents entirely. Buyers are increasingly confident in handling transactions themselves, especially with legal assistance.</li></ul><h3>Interest in Alternative and Cost-Saving Approaches </h3><ul><li>Flat Fees and DIY Methods: Many buyers expressed interest in flat-fee services or handling the process themselves, with some opting to hire real estate attorneys instead of agents. This trend indicates a demand for more flexible, cost-effective options in the market. </li><li>Financial Scrutiny of Agent Fees: For the first time, buyers are scrutinizing the financial value of having an agent, especially since they might now have to pay the agent’s fees directly. This financial burden is a significant concern, particularly for first-time buyers who may struggle with upfront costs.</li></ul><h3>Confusion and Complexity Concerns&nbsp;</h3><ul><li>New Rules Create Uncertainty: The recent changes to commission structures have introduced confusion among buyers. Many are unclear about how the new rules will affect their purchasing power and the overall process of buying a home. This confusion could present an opportunity to educate and guide buyers through the process more effectively.&nbsp; </li><li>Potential Additional Costs: Buyers are worried that these changes will result in additional out-of-pocket costs, complicating their financial planning and potentially deterring them from using traditional real estate agents.</li></ul><h3> Positive Experiences and the Role of Skilled Agents </h3><ul><li>Complex Transactions: While many buyers are critical of agent fees, there is still recognition that skilled agents can add significant value, particularly in complex transactions. This suggests a niche market for high-quality, specialized real estate services.&nbsp; </li><li>Negotiation Support: Some buyers acknowledged the benefits of having an experienced agent to negotiate deals, handle paperwork, and navigate the intricacies of real estate transactions. However, this group is in the minority. </li></ul>

Early Sign of Buyer Sentiment Toward Agents After Commission Rule Change.

<figure id="figure-in17z280krlza8qi0e" class="selected"><img id="in17z280krlza8qi0e" src="https://cdn.durable.co/blocks/28bJHL19zf25OSXk7Wp2jFXRpLIYo2dUEcCSFUATOd5B9J1wSflaGlb1yDkm4SQG.png" alt="unknown person using laptop" title="unknown person using laptop" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/28bJHL19zf25OSXk7Wp2jFXRpLIYo2dUEcCSFUATOd5B9J1wSflaGlb1yDkm4SQG.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>Homebuyers across the US who are working with real estate agents are starting to have uncomfortable conversations with their agents.&nbsp;Agents are informing clients that on August 17, 2024, new rules and guidelines on broker commissions will take effect. Buyers will be asked to sign a buyer agreement or amend an existing one. Buyers who agree to the new terms could be responsible for paying their agent’s commission. For a $500,000 home at the standard 3% commission, this would be $15,000.What caused this change and how can homebuyers be prepared?<h3>Lawsuits, a Settlement &amp; New Rules </h3>After a flurry of lawsuits by home sellers, a $1.8 billion jury verdict, and a settlement by the National Association of Realtors (NAR), real estate brokerages and their agents are scrambling to understand and comply with new rules and guidelines.Although the settlement does not protect every brokerage and real estate agent in the US, the impact of the settlement and the resulting changes to the industry will be widespread.The lawsuits were filed by home sellers who alleged that NAR and large brokerages colluded to artificially inflate real estate commissions. The plaintiffs cited the Participation Rule as evidence. This rule requires listing brokers to offer compensation to the buyer’s broker to list a property on the Multiple Listing Service (MLS). The MLS is a shared database of properties for sale used by agents.Here’s how the Participation Rule works: When a seller meets with an agent who wants to list their home, the prospective listing agent will explain that the house will be listed on the MLS. This ensures that buyers’ agents have access to the property details.The MLS also provides the property information directly to search portals such as Zillow, Realtor.com, Homes.com, and brokerage websites.The property listing has a commission data field for buyers’ agents, informing them of their compensation if their buyer becomes the purchaser. The compensation fee is typically 2.5% to 3% of the sale price.The Department of Justice opposes the Participation Rule because it stifles "price competition and innovation in the market for brokers’ services.”In response to the $1.8 billion jury verdict and a flurry of copycat lawsuits, NAR announced a settlement to end litigation against the organization, its state associations, and NAR members. NAR issued rule changes and guidance, but these are not final until the court approves them on November 26, 2024. The DOJ is also expected to offer suggestions.NAR tackled the thorny issues of buyer agent compensation. Here are five key principles that are new to the industry and will be required beginning August 17, 2024:1.&nbsp; Sellers may not include broker agent compensation on the MLS. 2.&nbsp; Buyers must enter into a written buyer agreement with their agent before touring homes. 3.&nbsp; The buyer agreement must specify the compensation and cannot be open-ended. For example, an hourly rate, a flat fee, or a fixed percentage is acceptable. An unacceptable statement would be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer.” 4.&nbsp; A buyer’s agent may not receive compensation that exceeds the amount specified in the agreement.5.&nbsp; The agreement must state that broker fees and commissions are fully negotiable and not set by law. <h3>Impact on Homebuyers </h3>These changes are going to have a major impact on homebuyers.One positive impact will be greater communication between buyers and agents. Unlike today, where most buyer agents don’t enter into a contractual relationship with buyers before showing homes and don’t discuss commissions, beginning August 17, 2024, both are required. The buyer and their agent must sign a buyer agency agreement, and they must discuss agent compensation – how much and who pays.The Buyer Agent AgreementA legally binding agreement before touring requires a level of commitment between the parties. Some buyers today feel no sense of obligation to a buyer agent and will tour homes with any agent who provides access. While that may feel convenient for the buyer, it ultimately does not serve the needs of a serious buyer.Buyers who work with a great agent will gain a deeper understanding of the market and become more efficient with their home search.Home touring educates buyers. They discover what resonates with them in a house and the surrounding neighborhood. When they see multiple homes with a great agent who is familiar with the area, &nbsp;the buyer will learn about the pros and cons of the house and area. The agent will suggest other properties or neighborhoods that may also suit the buyer’s needs.Some buyers may not feel ready to commit to an agent because they are too early in the home search process. Since a written agreement is now required before they tour a home, these buyers can see homes by either attending open houses or directly contacting the listing agent.Financial CommitmentMost buyers don’t think about their agent’s compensation because buyers do not directly pay their agent. Instead, payment to the buyer agent’s brokerage is made during closing and is one payment among many from the seller’s proceeds. The commission payment is included in the sale price of the house.Beginning August 17th, this will change.&nbsp;When a buyer meets with an agent to discuss representation, the agent will explain that sellers are no longer required to pay the buyer’s agent commission when a house is listed on the MLS.&nbsp;Here is where buyers will be blindsided. If a seller is unwilling to pay all, or part, of the buyer’s agent commission, the buyer will have to pay the agent the difference. This is a huge change from today, where buyers don’t even think about having to pay their agent. The implications for buyers, agents, and others in the real estate industry are significant.<h3>Guidance for Buyers </h3>Understand the four key commission changes:1.&nbsp; Sellers who work with a listing agent are no longer expected or required to pay a commission to the buyer’s broker. 2.&nbsp; If a seller is willing to pay a buyer broker’s commission, the fee will not be published on the Multiple Listing Service (the MLS shares property information to agents and listing portal sites like Zillow and Homes.com). This shifts the responsibility of determining the buyer agent’s commission to the buyer and their agent. 3.&nbsp; Buyers’ agents may not show properties to a buyer unless the buyer and agent have entered into a written agreement. 4.&nbsp; The Buyer Agency Agreement will detail how much the agent will be paid. For example, the fee may be a percentage of the sale price, a flat fee, or an hourly rate. It will also explain how the agent will be paid. For example, if a seller is willing to pay less than the amount specified in the Agreement, will the buyer pay the difference at closing? If you choose to work with an agent:●&nbsp; Decide how much you are willing to pay the agent if the seller does not pay the full commission.●&nbsp; Screen prospective agents. If you are willing to pay for your agent, determine which agents are worth considering before meeting with them. Since you’re agreeing to the possibility that you’ll be paying their commission, take the consultation seriously and meet with three agents who have expertise in your market and whom you think you’ll work well with. You’ll have a much better experience if you respect your agent’s knowledge and enjoy working with them. ●&nbsp; Contact the agents before you meet with them and ask if they are flexible on their compensation. Many top buyer’s agents will not consider being paid less than 2.5% or 3% of the sale price. If this is too high, you should know this before your meeting.●&nbsp; Consider a flat fee compensation. The brokerage industry has been wedded to compensation that is a percentage of the sale price. However, the changes mandated by NAR have opened the door to alternative compensation. Some buyers feel that commissions create a perverse incentive by rewarding agents to direct buyers to more expensive homes or not aggressively negotiating a lower sale price. If this resonates with you, discuss a fair flat fee instead of a percentage commission. By understanding these changes and preparing accordingly, homebuyers can navigate the new landscape of real estate transactions more effectively.Rich Hopen is the Founder of <a data-mce-href="https://smartbuyers.ai/" href="https://smartbuyers.ai/">SmartBuyers AI</a>, a community that empowers homebuyers. <a data-mce-href="https://smartbuyers.ai/contact" href="https://smartbuyers.ai/contact" target="_blank" rel="noopener">Join us</a>.

Homebuyers Confront New Commission Rules

<figure id="figure-fxg4gi6hvolx0t6ogk" class=""><img id="fxg4gi6hvolx0t6ogk" src="https://cdn.durable.co/blocks/asYQgiG0KxbP8x0feSlUt3JPCxaqSI4vJuZeplB0pFSPcQHscAkUQ0bH3sTQl3Nu.png" alt="happy man and woman buying first house" title="happy man and woman buying first house" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/asYQgiG0KxbP8x0feSlUt3JPCxaqSI4vJuZeplB0pFSPcQHscAkUQ0bH3sTQl3Nu.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure>If you just started to look for a home, if you found one and are in the middle of the transaction, or if you just closed on your home, how are you feeling about the homebuying process? My guess, not so great.I know this because I’ve recently talked with lots of homebuyers and here’s a small sample of what I heard:&nbsp; &nbsp; &nbsp;"The mortgage process was very unsettling. It was like a roller coaster ride in the dark."&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;"Making offers in this competitive market is emotionally exhausting. Waiving or limiting inspections and appraisals was unnerving and I wasn’t really sure what risk I was bearing." &nbsp; &nbsp; &nbsp;"It was difficult determining which inspection issues were major. I didn’t know if the agent was minimizing the problems just to move the sale forward. I guess I didn’t really trust her."&nbsp; &nbsp; &nbsp;"Wiring money was a bad experience. I received wiring instructions from my agent and lender. The forms were different and showed different accounts." I have been a real estate broker for 25 years and I’ve read homebuyer surveys by the National Association of Realtors documenting buyer frustration. I was appalled by what I heard.Why are buyers uninformed? Why do they feel intimidated and ignored by real estate professionals?Buyers are everything! Without them, the $94T residential real estate industry would come to a screeching halt. Yet, buyers begin the home buying process not knowing what’s ahead of them. They aren’t even sure of the best way to start.▶︎&nbsp; &nbsp;Do they start searching for homes and go to open houses? ▶︎&nbsp; &nbsp;Do they find a real estate agent? ▶︎&nbsp; &nbsp;Do they find out how much they can afford by talking with a lender? ▶︎&nbsp; &nbsp;Or do they search the internet and try educating themselves?Uncertainty and not having a clear roadmap is NOT how buyers should begin their largest and most significant investment.And, to add fuel to the fire, there is another layer of ambiguity that is going to make it even more difficult for buyers. The commission structure for buyers agents is changing.&nbsp;<figure id="figure-imuq84038lx0tu35k" class=""><img id="imuq84038lx0tu35k" src="https://cdn.durable.co/blocks/136x0INXuB2nQQBV8pYir5rMiMuPHRxDWmg1Qzl0OIcLDGQAHg9tsUZG08e87ruC.png" alt="New York Times article about real estate commission lawsuit settlement" title="New York Times article about real estate commission lawsuit settlement" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/136x0INXuB2nQQBV8pYir5rMiMuPHRxDWmg1Qzl0OIcLDGQAHg9tsUZG08e87ruC.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure>On August 17, 2024, buyers will have to sign a written agreement with their agents. The agreement will explain that buyers might have to pay their agents the commission if the seller does not. For example, a standard 3% commission to the buyer's agent for a $500,000 house is $15,000.Faced with the possibility of paying a fee like this, many buyers will buy a home without an agent or they will hire an agent for a discrete task, such as preparing an offer or negotiating inspection repairs. No question, buying a home is a complicated process. However, I believe every home buyer deserves to have a great home buying experience. That’s why I built SmartBuyers AI.I began with a core principle: The business will be 100% focused on what’s best for homebuyers. The platform will educate buyers so they are fully informed about the process, the professionals, their transaction, and the foundational changes occurring to the brokerage industry.The platform will help buyers in 3 ways.&nbsp;1)&nbsp; Get immediate expert answers. Buyers will get answers, 24/7, from top real estate professionals. Each market will have 5 top agents available to provide answers. An agent will have their own chatbot trained on national, state, and local real estate information. Their chatbot will provide advice and give the agent’s perspective. Talking with the chatbot will be just like talking with the agent. 2)&nbsp; Hire the right agent. All the agents on SmartBuyers are highly vetted, but not every qualified agent is right for every buyer. Buyers can schedule a live consultation (video or audio) and discover which agent they want to work with. The buyer's identity is not shared with the agent before the call. I respect the buyer’s privacy. 3) Know where you are in your transaction. Once buyers have a house under contract, they will have a “You are here!” interactive timeline that will show them exactly where they are and what happens next.Join other homebuyers and take control of your homebuying experience. Sign up now to become a <a data-mce-href="https://www.smartbuyers.ai" href="https://www.smartbuyers.ai" target="_blank" rel="noopener">SmartBuyer</a>.

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