Key Points:
•
Shift to Commercial Real Estate Model?
Joe Rath, a bigwig at Redfin, sees potential in adopting a commercial real estate model for residential buyer commissions. According to him, this could be an avenue for increased transparency in the industry.
•
Big Players Weighing in
Other industry professionals, such as Russ Cofano from Collabra Technology and Ed Zorn from CRMLS, were present at Inman Connect New York to give their two cents. They too believed that we could be on the cusp of a significant shift in real estate commissions.
•
Demands for Transparency
There is an increasing demand in the market for transparency in real estate commissions. This shift might be driven by consumers who want to know where their pennies are going and why they’re going there.
•
A Mixed Bag
However, opinions remain mixed. While some professionals believe that a commercial model could increase visibility and accountability on buyer commissions, others are skeptical, raising concerns over the possibility of increased costs and decreased competition.
•
Striking a Balance
Finding the right balance won’t be easy, as the industry must cater to the interests of both buyers and sellers whilst also considering the livelihoods of agents. But isn’t that the magic of real estate?
Hot Take:
Now, onto my hot take. First, let’s commend these rambunctious real estate lads for taking on the mighty beast that is transparency in commissions. They’re like the modern-day knights of the property realm. Jokes aside, seriously, transparency’s a great thing. The public is tired of property labyrinths where their cash disappears into a mystery black hole of ‘commissions and fees’. Poor fellas just want a quiet family home, not a taxation odyssey.
But let’s not pop the champagne just yet. A shift to a commercial model is an exciting idea, like swapping your bicycle for a jet ski. Sure, it might seem cooler, but there are sensible things like life jackets to consider. What if it leads to higher rates? Cools off competition? Puts agents, our dear property Sherpas, out of business?
The only thing certain in this whole rigmarole is uncertainty itself. Still, it’ll be a show to watch, better than Netflix’s latest. So, grab your popcorn (or, in this case, your property deeds) and let’s tune in together to see how this real estate drama unfolds!
Original article: https://www.inman.com/2024/02/12/watch-what-commercial-deals-teach-us-about-buyer-commissions/
