Lawsuits, Buyers Agency, Compensation & Why you want to be our CLIENT
If you have watched the news lately [I don't recommend it ], then you have probably seen a few headlines discussing real estate commission, and how it is paid
Until the final judgement is delivered, we will not know if, or how it will impact the world of real estate
The central argument revolves around how buyer's agents are compensated
Do any of these sound familiar?
- "I don't cost you a penny..."
- "I work for you for FREE..."
- "You don't pay me a thing,,,'
- "The seller pays me, there is no cost to you..."
This is where the water gets 'murky', and I am not about to step off into a national lawsuit that is playing with millions of dollars
If you would like to take a deeper-dive into the lawsuit, I recommend visiting realtor.org [as a starting point, keep digging...]
But... if you are curious what a buyer's agent is, how compensation [currently] works, and if they are necessary, read on
Buyer's Agency + Compensation
Per chatGPT, 'a buyer's agent works on behalf of the buyer to locate suitable properties, negotiate the best price and terms for the buyer, and guide the buyer through the purchasing process'
Per chatGPT, 'buyer agency in real estate refers to a relationship where a real estate agent or broker represents the best interests of the homebuyer in a real estate transaction'
Buyer's Agent Commission
Per chatGPT, 'buyer's agents are usually compensated through a commission, which is typically a percentage of the home's sale price'
Clear as mud?
Yeah... Let me see if I can break it down into one sentence:
A buyer's agent is a professional, hired to guide and protect buyers through an interesting market, and they are traditionally paid a percentage of the home's sales price
First, let me throw this nugget out there...
No matter what anyone tells you, a buyer's agent is NOT required to purchase a home
**I just heard the proverbial gasp from the crowd in the back**
So Stephanie, you're telling me that I can purchase a home, without signing a scary representation contract, and without paying several thousands of dollars?
Pardon my ignorance, but why are buyer's agents even a thing?
While I could give you the standard responses [ access to homes, multiple listing service [MLS] automated emails, expert advice [what makes an expert, anyway?], existing relationships with other real estate agents / mortgage officers / attorneys [an existing relationship does not always mean positive], aggressive negotiation skills, and my personal favorite - social media influencer ], but at the end of the day, you want and expect more [at least I hope you do...]
So instead of me running my mouth, justifying why you should pay my commission, explaining what is important to me, and not to you, I decided to ask a few clients for their 'WHY'?
Who + Why: parents purchasing a home for them to enjoy on weekends they are in town, and for their eldest child to say they would never use, yet they moved right in [but not in the main bedroom!!]
Stats: they lived out of state, and were unable to tour the home on the same day it hit the market
Before MissMag: the parents had successfully located, flipped through pics, travelled to town, and made an offer - that was not accepted [on three separate occasions]
After MissMag: "We hired Mississippi Magnolia at our lowest of lows - we didn't think we would ever be able to compete in Starkville's real estate market. While we had never paid a buyer's agent before [or so we thought], we agreed to pay them commission at closing, knowing they would never be able to pull it off. Boy, were we wrong!! Before I could even check my morning email, the Team was calling - they had found a home that matched our needs [even our wants!!], had recorded not only the home, but also the street and neighborhood, and had the videos in my inbox!! We bought it, in-person sight unseen, and still own the home today - our third child is graduating in May."
Who + Why: new-to-the-area family, school district was the highest priority, one parent worked early mornings, and the other parent worked out of town Monday thru Friday, and it was their first time buying a home
Stats: needed to stay under $400K, school district, 3+ bedrooms, and was finding the process overwhelming
Before MissMag: the parents were unable to tour homes together [which was important to them], and had a challenge hiring an agent
After MissMag: "I can remember it, just like it was yesterday... We were sitting at the attorney's office, signing the paperwork, and I started crying. Stephanie quietly stood up, grabbed me a kleenex, and asked why I was sad. My eyes are burning now just thinking about it. It was hard for me to put it into words, especially in front of everyone, but I wanted to... I told everyone that it was the happiest day of my life, and that I thanked God for giving me the Team. You see, they were the seventh real estate company I had called, trying to see the home my family was in love with, and no one took me seriously. They all had excuses for why they could not show us the home, and each time they hung up, I knew I would never talk to them again. Not Mississippi Magnolia... They asked about me, my family, about our work schedules, what our needs were, and got us into the home - on the same day!! But it didn't stop there... they came as a TEAM!! They showed up, each one with cameras in hand, and we ALL video called my husband!! He was able to see the house, the kids running around, me, and our home TEAM."
Who + Why: family on a strict budget
Stats: parents were school teachers, needed to stay under $200K, and required a specific and time-consuming home loan
Before MissMag: parents became frustrated with the lack of options, and the options they were able to find in their price range were all 25+ minute away
After MissMag: "I will admit, our first meeting was awkward - the Team had asked for us to have coffee with them before they would show us any homes. While I felt it would be a waste of time, bougie coffee is expensive, and I thought I could waste twenty minutes for some. Y'all - they asked all kinds of questions!! Personal, work, financial, spiritual, and some, even challenging. But by the end of my coffee, I felt they had heard me. It wasn't an easy process, and I am not going to lie and say it was quick, but they did it - they became my Unicorn Hunters. Mississippi Magnolia found us an off-market home, lower than the price we were qualified for, with an extra bedroom, AND in the city limits!!"
If you're anything like me, you like to do your own research before forming an opinion
I don't know if it's for you, but if you enjoy bougie coffee, we will make the time to answer all of your questions [yes, even if they are not all real estate related], and will not try to sell you a house - I promise!!