I agree with you. There may be more opportunities for pre-listing inspections so sellers can market the house as “turnkey ready.” Some buyers may accept that if they feel the report is legit.
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Possibly. But I do feel like the majority of buyers would hire an independent inspector. I mean, this isn’t like buying a used car where the dealership gives you the “certified” spiel. This is the biggest purchase most will make in their lifetime.
But, this also introduces active market for buyer agent services that really did not exist before. Most buyers are going to want some help, but the price is now negotiable.
My wife is a RA going on 20 years. Works for one of top Re/Max franchises in the nation. Has had many classes and updates on this ongoing process, and the general consensus is there will be some changes, but it’s not going to affect the industry as the media is trying to portray that it will. 
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I’m in agreement with that. Full service brokerages will still charge the full 6% to sellers, take it or leave it. Will there be some out there offering 3% or flat-fee selling services? Yep. But there already is and has been for some time.
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None of this is happening in a media vacuum. The general public’s expectations for the market are changing as we speak. If sellers can net 2% to 3% more of the sales price by putting the burden of the buyer’s agent commission on the buyer, especially in a seller’s market, that is exactly what will happen. We are talking big bucks here… I think the game-changer came yesterday with NAR now requiring buyer agent contracts. It was encouraged before, but now it is required. There is a key reason for that IMHO, it is going to free sellers (which was the whole point of the lawsuit).
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Yeah, maybe buyer agents could differentiate themselves by saying “I have the BEST home inspector.” Maybe even include the inspection in their fee.
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If it’s not, how the heck are hearing about it? 
@tglaze , maybe your wife (or you) could put some color on this. What do the “regular full service” agents think of these flat fee deals? Looking at this one near me, there is roughly $10k total less in commission for agents involved in the deal. But, this one does “recommend” a 2% buyer agent fee. Notice they have already updated their website to state that the buyer agent fee is negotiable.
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That is my exact fear and where I think the HI industry will need to fight to keep home inspectors entirely free and independent from the real estate transaction.
Perhaps the managing brokers are trying to prevent a stampede toward the exits 
If I was a buyer agent I’d be nervous. I’m going from a nearly-guaranteed percentage to a fee for which I have to negotiate and have to prove my value with every new customer.
Ryan, “Flat Fee” options have been around for 40 years and it doesn’t appear that they have ever made a significant progress in the market, though it may change. Most of the time, they lack the personal interaction that the sellers want. Showings, being there to do things when the seller isn’t there, such as making the property is secure after showings, turning off lights etc, Flat fees do nothing but list the property on the interweb with pictures and schedule non present showings.
So if that is what the seller wants for a lower cost, go for it.
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Yep, I am fully aware of that. They seem to go by the wayside fairly quickly. That’s kinda why I was wondering about your wife’s (or any full commission agent’s) viewpoint. Do the flat fee/low fee brokerages get shunned or ignored by the full commission brokerages? In other words, when an agent is helping a buyer, will they gladly show them a listing from the low-fee guy? Or do they steer them in a different direction? (I fully understand why no agent would want to answer this question on an online forum, lol).
The MLS and BA fee negotiation has been in place to attract BAs to bring potential clients to the property. If a BA has been driving a client around for a week, time and gas will most likely be steered away from a sale the BA won’t make any money on.
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Assuming this settlement is approved (remember it’s only a proposed settlement at this time).
A certain amount of “The same as it ever was” continues as it saves NAR from bankruptcy, and prevents the whole industry from completely going off the rails.
And for top agents who provide top service to their clients, they’ll continue on as if not much ever happened.
What is going to be a massive change are the part-time agents IMHO aren’t going to survive. The agents who only do a few deals a year and then coast on those big commission checks aren’t going to be able to make the same income and will lose buyers to the agents who are more organized and able to sell buyers on why going with them is the better option. There will likely be a mass exodus of existing agents who find the new way of business too complicated or difficult.
The faux dream of "become an agent and make 6 figures in your 1st year!" will slowly die off and perhaps stop the massive annual turnover in agents will slow down after the initial exodus
For inspectors, all that really changes is we’ll have fewer agents to market too, and perhaps an uptick in buyers picking their own inspectors on the internet.
Inspectors who have their marketing organized will thrive. The old-school method of handing out some business cards and relying on word of mouth from a handful of agents might be in trouble. We’ll see.
That would be against the law in Ohio, if the BA gives out any names, they’re required to give out the names of least 3 different inspectors for their clients to choose from.
This thought is the one that intrigues me the most. Let’s say that sellers simply start refusing to pay the higher commission needed when it is split between two agents. In all likelihood, in my opinion, that would lead to the vast majority of buyers simply choosing to work directly with the listing agent on a specific home.
Now let’s say that the listing agent provides a pre-sale inspection report, or provides a few names of “trusted inspectors” to the buyer. This new arrangement (referral from a listing agent instead of a buyer’s agent) would seem to change the entire landscape of the liability issues involved in being an agent, and in being an inspector.
A buyer could make the claim that no one involved in the sale had their best interests in mind (including the inspector). I feel like this would quickly lead to a more detached relationship between inspectors and agents, and a closer relationship between inspectors and their clients.
I’ve been wondering if prelisting inspections for sellers or their agents will become more popular as this all shakes out. Having an inspection report on the table, or online with the listing could be seen as a way to attract agent-less buyers and for sellers to “skip” past that worry when under contract. The seller or LA is the client in that case, so liability would be to them, not a buyer. Buyers would be sol if they didn’t hire their own inspector.
If buying services start to replace the current BA model, I would be surprised if they didn’t try to package inspections with it. Or they’ll offer walk-and-talk services to skate around the rules. Every real-estate market is different, and different practices and equilibriums will shake out depending on local conditions.
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I agree with all of this. But that is why I brought up the (potentially) changing liability landscape. A buyer who believes the seller-provided inspection report was a sham is going to include not only the seller and the listing agent in the lawsuit, but also the inspector.
That is why I am thinking this would quickly lead to sellers abandoning that model and instead hiring their own independent inspector. A decision based more on their own research, reviews, friends and family referrals, etc.
All of that said, I still believe that for the most part, nothing is going to change. Agents will continue to charge the higher commission and split it with another agent who brings a buyer.
I think for the top 20-25% who are organized, stay informed, and sell great service, then yes, I agree those agents won’t see a significant shift in their business.
The near bottom 20-30% of agents who never read their contracts, aren’t organized, don’t stay informed, and generally are clueless, but get by selling 2-3 houses a year, they’ll get squeezed out.
The agents who hold a license as a side hustle or just in case a deal falls in their lap, or only do friends and family. they’ll have a hard time justifying keeping their license.