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Real estate invoice format for Facilities

hi contesta yeah this is a landmark antitrust settlement in the housing market that'll fundamentally change the way real estate agents are compensated when you buy or sell your home the National Association of Realtors agreed to take offers of broker compensation off the MLS which is their listing database in addition buyers will have to sign agreements of compensation with their agents in the past both buyer and seller agent commissions were usually paid by the seller now to help us better understand all of this we're joined by the CEO of exp one of the larg real estate brokerages in the nation Leo Pera thanks so much for joining us I know you just took the rins of the company last spring so you're right in the fire but let's get right to it for the consumer is this going to lower commissions overall make them more negotiable or just split up who pays them yeah that's a great question I think what it we consumers need to focus on it'll really change the process so um the 23 years I've been a licensed broker the buy side was somewhat informal in the sense you met somebody in open house you had chemistry they helped you buy the house now there's got to be an agreement signed and executed prior to touring homes and so there is going to be a departure from the way things were done and I'm calling it the messy middle because it's going to be both for consumers as well as agents A getting uh used to the new process so we've already had anecdotal stories where a consumer calls an agent the agent presents the contract and they call a parent or a friend or someone who's bought a home before and says that's not how it goes so I'm asking everyone to have quite a bit of Grace as we maneuver these new rules and sellers need to be aware that now when they list a home with an agent they will have the option to still offer a buyer compensation fee like they did in the past off the MLS or they can simply say put it in the contract and it can become negotiable so there's going to be an adjustment period but as you said Diana it's it's a lot of who's going to pay whom is negotiable on every transaction and there's been confusion I know as you talked about I talked to a lot of real estate agents in fact some today who say that things don't look like they're shaping up the way they should on the MLS right now but for them there's this concern that if someone's paying a buyer agent not paying a buyer agent and the Buyer Agents can't get compensation that this will cause a lot of agents to leave the business do you see that I don't see that so one thing to unpack there is this rule was the result of an uh legal settlement that doesn't change in Iota of what the value of an agent brings to the table the average buyer agent in America takes about a 100 hours representing a party and that is not going to change uh the listing side is still as intense for the consumers both the agents in consummating the transaction so um I think there's going to be a lot more conversations about compensation you know we're all for transparency so the more transparency that could be at part of the transaction the better but the amount of effort in representation won't change I'm mostly telling agents to think about the buyers like the sellers you will now need to do a presentation there will be a competitive market uh you could see a flurry of new businesses start up as we've seen on the listing side for decades where you know there are companies that that do it for a flat fee there are companies that do it for a menu of services and there are full service companies that do it for percentage I fully expect to see folks do that on the buy side as well but the fact that buying a home is the single largest investment the average American family makes it's done probably an average of three times and it's highly complex with a lot of friction and on the seller side where sellers have had the optionality to go for sale by owner or use different business models consumers choose at very high rates 80 to 90% of the time professional representation and I don't think that's going to change because we have rule set and there's been this this claim that it could actually lower home prices that is because if the seller doesn't have to pay the buyer agent commission and say on a $500,000 house they would have been paying 30,000 in commission now they're only paying 15,000 that they might take that $115,000 off the sale price of the house as in lower home prices do you think that's going to happen I think that's categorically false I think the the valley of a home is dict by the supply of properties the demand from buyers and the affordability index as we saw interest rates retreat by about 1% that'll bring some reprieve to buyers on the sidelines but really we have a fundamental lack of inventory in this country that comes from the financial crisis where we didn't build enough homes for the financial or household formation we've experienced um and sellers were always trying to execute the highest net to them in the shortest amount of time possible and the buyers are always trying to get the best deal possible for the home that fits their family needs