The NAR Settlement, Part 2: More Questions, Some Answers.

Read on to learn my thoughts about questions I’m hearing. If you’d like more background on this, link here.

Why are agent fees so much higher in the US than in other countries?

In the US, fees are higher because our agents do much more. In many places, there’s no central listing service like the MLS. Sellers show their own homes and get verbal offers. Attorneys then take over.

But here, US agents advise on pricing and marketing strategies, arrange viewings, advocate for clients, communicate with lenders and attorneys, negotiate offers and home inspection issues, even draft contracts. They’re typically on call 24/7. Our own agents have even shoveled snow and fed the cat!

How about unbundling agent services?

Maybe. But it might not be a panacea. Think about unbundled hospital bills and airline fees; higher prices for everything that was once included. If agents start charging by the hour, I predict fees will sky rocket—as they arguably should.

But why do we even need buyer agents?

Here’s why. Years ago, when I bought my first home, buyer agents didn’t exist. I made my offer with a sub-agent, who I thought had my best interests at heart. But she represented the seller, as all agents did then. It was a scenario weighted one way. Buyer agents closed that gap.

Of course they don’t work for free, nor should they. But all parties sign disclosures about representation up front, and terms have always been negotiable.