This is significant. Deleon will no longer collect buyer side commission on double ended deals. Transparency, services, alignment of incentives - all very good.
Last year I heard other agents talk down about how they didn’t believe they were getting a fair shake on deals where Deleon was on both ends yet they themselves were super ethical and to be trusted in the same scenario.
Maybe he is smelling the law looking at this situation?
I can’t recall where, how, but I read something about sooner or later those realtors accepting without any fighting the double end deals and the “no contingencies” will be sued. God knows where, I forgot where I read it.
This is very good. And I agree it could have significant effect on the industry as a whole. They are the market leader in the peninsula.
I think long term we are migrating towards the single agent model. Meaning listing agent will just handle everything, with lower fee to the sellers. DeLeon’s new policy positions themselves front and center to take advantage of that shift.
Very smart play! These guys are awesome.
Looks like they are trying to disrupt the industry, and piss off their competitors…Stanley Lo was way ahead of him…He offers only 1.7%-2.1% to buyers agents and limits access…Double dips all the time
If Deleon only charges 2.5% for listing and pay no buyer commissions sellers save a lot of money. Right now most sellers pay 4% or more: 1.5 for listing and 2.5 for buyer. With Deleon sellers potentially save 1.5% or more. On a 2m listing that’s 30k.
If Deleon gets zero commission from representing buyer, how can the buyer trust them? Will they only work on seller’s interest?
I am the opinion that only when you are selling your own home you can be the realtor with the double end sword in action. Otherwise, can you imagine yourself dealing with both seller and buyer at the same time and you have to decide the better outcome for both? Do you talk to yourself, the right hand is the buyer, the left the seller? 
Let’s cut to the chase. It is a dishonest action 100%. Period! Shoot me if you can.
on what? Permed hair??? God, if this is not the poster child for honest realtor (oxymoron?) I don’t who is…
As a buyer, why would I care?
Is he selling houses below market value most of the time? If that’s the case, why is he successful in getting so many listings?
I think that sellers are in the driver’s seat. If so many sellers are trusting their house with Stanley, he must be doing something right.
Disclaimer: I saw his signs a lot but never met him in person, know nothing about his business practice. But from the many signs, apparently he’s getting many listings.
Buyers would need to pay for their own agents’ commission to compete with a DeLeon agent representing both seller and buyer.
Let’s say a DeLeon listing has an offer from a DeLeon buyer. If that offer is 1M, say, sellers save 1.5% which is 15K. Any non-DeLeon buyer needs to offer at least 1.015M (approx) to be competitive.
@BAGB Deleon agents do not work on commission.
@manch In your example the buyer in a typical scenario except for Stanley Lo will need to come up with an extra 25K. The seller is saving the buy side commission. On a 2M property, if you go through Deleon your offer compared to any other brokerage is 50K higher.
Deleon no longer has direct incentives to double end deals. If they double end a deal they won’t bring in any additional revenue.
Deleon is big enough, he feels he doesn’t need buyers agents steering clients to his properties…Of course they may steer them away, now…Lets see what happens
If Deleon agent works on salary only, why double ending would be a problem in the first place? The agent would make the same salary when the owner receive 1 side or 2 side commissions. There could be bonus or something to encourage agents to favor double ended deals
Good point. I’m not sure what the specifics are for their compensation, but they advertise salaried employees.
When Deleon started out they had some high producers before they switched business models. Once the switch took place those folks left.
They have raised the bar for people in the industry, and Ken is charismatic. Is Greenbanker the same?
It is obviously a ploy to gain market share. They are screening out the competition by getting sellers to favor the agency’s own services (reminded me of Amazon’s plans to use Alexa? to promote their own products ordered online via home/voice-activated device). This strategy is more effective in the bay area where the sellers hold the cards
Realtors really have some nerve calling it a Most Significan Innovation Yet
Exactly. It’s a genius move. I am surprised the other brokerages didn’t come up with it earlier. You take the moral high road and also get more business.
I don’t know. Just because they are in the position to a make a power grab doesn’t make it moral. Now it’s sounding like Delean is mocking the innovations of online brokers like ((redfin)).
I’m not sure that you do… I thought DeLeon only sold high end stuff anyways. Was there any shortage of people who wanted to sell with them? I mean, they make every open house a party. I’ve taken friends to open houses just for the latte’s. 
DeLeon recently sold house in RWC in average neighborhood. I see more and more DeLeon’s listings are not so high end