Have Real Estate Agents Ruined Real Estate?
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- čas přidán 27. 03. 2024
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Rising home prices suck for almost everybody, even people that own there own homes are not really better off financially if they sell their overpriced home… because they will just have to buy ANOTHER overpriced home unless they want to live on the street. If there is one group of people that actually are enjoying homes becoming unaffordable, it’s real estate agents…
Realtors across the country have used their surprising market power to make this problem much worse and charged a nice fat commission while doing it. But they may have pushed their luck too far and a new landmark antitrust lawsuit could radically change how we buy and sell our homes for better… or for worse… Realtors are more than just the people that open the door and tell you about the schools at an open home, they are a shockingly organized group that has a lot of influence over how the real estate market functions.
Real estate agents and Realtors are technically two different things, all Realtors are real estate agents, but not all real estate agents are realtors. They both buy and sell houses on behalf of clients for whom they act as agents, but for a real estate agent to call themselves a realtor they must be part of the National Association of Realtors, an industry group that represents most agents in America.
As part of their membership Realtors get access to the Multiple Listing Service or MLS which is a database of all residential real estate listings in the area. If you want sell houses as an agent, you really can’t compete without access to this database and if you want to get access to this invaluable market information you MUST register as a realtor. That membership is a pretty good investment anyway. The NAR behaves almost like a union for its independent members ensuring that home sellers can’t get agents to compete with one another for lower commissions.
The industry standard is six percent [6%] which gets split between the listing agent selling the home and a buyer’s agent if the purchaser uses one. The commission gets paid from the proceeds of the home sale before the remainder of the money gets transferred to the sellers’ bank account. This commission covers the expenses of selling real estate, like running open homes, posting on sites like Zillow, taking photos of the property, insurance and signposting the home.
Whatever is left goes to the agency which has its own expense, and then whatever is left after that goes to the Realtors themselves split between the buy and sell side. According to data from the Department of Housing and Urban Development, the average home sale price in America has risen from two hundred and seventy-two thousand dollars [$272,000] in 2010, to four hundred and NINETY two thousand dollars [$492,000] in quarter 4 of last year.
Since the realtors is based on the sales price it means that average commission paid to Realtors has DOUBLED in just thirteen years, outpacing inflation by one hundred and twenty percent [120%].
It gets even better for real estate agent though because their expenses have not increased as fast as home prices which means they are keeping more of that six percent [6%] for themselves.
Realtors have broken the already broken real estate market in three ways, but poor market conditions, not to mention a landmark lawsuit could actually make things worse for everybody… including the realtors…
So it’s time to learn How Money Works to find out how your most important financial decision ever is made for you.
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Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ‘’Marisa Michelle Litwinsky’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Marisa.
Real estate as investment and not to live on is what ruined everything.
Exactly, but this was highly encouraged by realtors though for obvious reasons
People live on investments, you know. It's called retirement.
Imo if you’re buying single family real estate as a rental you should have to pay it all up front.
I got a buddy write cash from a HELOC and use that as a small 5% down payment for another home where he will live for the minimum 1 year (what a joke). He is rinsing and repeating to leverage himself to the max 10 mortgages per individual the law allows.
@@jmizzoniniyou can do as many as you want if you use a company
@jmizzonini Dammmn that’s crazy , I get making money but something about exploiting thy neighbor like that is crazy lol
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
One strategy for protecting against a recession is to buy equities. Investors, especially during a recession, need to know where and how to put money in order to make money while avoiding inflation.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.
Working with a Financial Advisor to help guide you on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Realtors usually start as a Bottle service waitress, then shilling their MLM to all their friends, and finally getting their realtors license. It's the natural grifter's evolution
This is painfully accurate
Yep.
I know so many people who did this exact career path
And here you’ve just moved from fries to burgers right champ?
And if that fails.....nurse.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Tenley Megan Amerson is the coach that guides me, you probably might have come across her before I found her through a Newsweek report. She's quite known in her field, look-her up.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
I’ve sold both my homes via private sale. Realtors are slimy and prefer not to deal with them. 15k to open a door and show a house is highway robbery.
'We need to make it look pretty by staging it!'
No, people don't care unless you actually do things that repair or refinish the home. And usually realtors are only paying someone else to do that and they usually have no idea how any of home repair actually works.
That's why in combination with a realtor you have to separately pay a home inspector... Because the realtor only knows random bullshit that's mostly irrelevant for most home sales. They just follow a cheat sheet their brokerage gives them that they work under.
My house was a for sale by owner. This was my first house, so I needed a little bit of help with the buyers contract and closing. I got a real estate attorney. Real estate attorneys charge a flat rate, they do not charge commission. The entire process cost me only $900-something in legal fees to the real estate attorney. A realtor, on the other hand, would have cost many thousands of dollars. The seller passed the saving on to me. It was awesome not having to deal with a slimy realtor! For anyone who wants to buy a for sale by owner house but finds it intimidating, I highly recommend getting a real estate attorney. They're affordable, and worth every penny.
@@hamsterama Is it really that complex to buy/sell a house in US? Based on what I hear on CZcams it seems like 90% of Americans are using realtor service to make the transaction. In EU most of buyers/sellers are doing everything on their own.
Was your house listed on the MLS?
@@ArturSiwakowski I don't think it's necessarily any harder than anywhere else. It's just buying through an agent is kind of like, "This is just how it works." Almost everyone does it, so it's strange to not do it. Sellers' agents are not used to working with buyers themselves, so they are suspicious of anyone not going through the normal process.
This is why so many people say that the real estate market in the US is messed up.
The strangest thing is that every country in the world has been seeing out of control pricing, despite having very different laws and processes. The 1 thing they have in common? Restricted access to supply, in both new construction or resale. Want to buy a used home? Need an agent. Want to buy a new home? Only 1 developer legally allowed to develop a corner of your city. They push the prices up artificially, effectively acting as a Cartel
The other thing they have in common is more and more money concentrating in the hands of fewer and fewer people, who buy all kinds of assets as investments.
Especially when people in foreign countries become multi millionaires and billionaires as a result of the same globalization that has shafted American workers, and then those foreign rich buy homes and apartments in America and Canada, because unlike the countries of those foreign rich, America and Canada have rule of law, so no dictator of America or dictator of Canada can decide to confiscate their property.
Plus, America especially has laws and taxes that favor wealthy people.
what all these countries have in common as well is a very high personal home ownership rate. UK/USA/Canada etc. where owning the home you live in is bove 60%.
The combintion of increased housing price due to demand, as well as reduction in available housing supply for rent and leverage tying rent to price is damaging
@@willardchi2571well they tried to do that to trump. They did do that to donald sterling who used to own the los angeles clippers. Politics aside, these ppl may not be likeable but if they can take someone's assets like that then they can do that to any one of us little guys.
@@joe-zj8js - The next time I try to overthrow an election, cheat the government and banks out of millions, I'll worry about it happening to me.
Lets not forget private companies getting into it and driving up home sales.
A family member of mine recently looked into buying a $5M home and I was astonished that the realtor was going to make ~$300K in commission. It's a beautiful home in a blazing hot market that sells itself in a few days - weeks. How the literal hell can a human being justify such a staggering sum of money for such minimal services rendered..... I called that out as a scam and this video finally made me feel sane.
Watch those reality shows where realtors make $1M on apartments in NYC. Makes me sick.
That's 6%, which is for both agents. So it would be $150,000 per agent. The seller agent should be investing a lot into marketing that, though, and the brokerage will take a cut.
Also, the higher the price, the harder it is to sell after a certain point. I would be surpised if that was an easy sell.
@@jacobbennett4074 even if it was a hard sell, it doesn't justify the payout.
More expensive to connect with the type of buyer that has the resources to spend that much. Those private jet magazines and websites charge way more for advertising, Dupont Registry, Toms Guide, etc. etc.... Luxury folks also don't have a problem spending that money, it's a status thing but they also appreciate results and quality service.
Amazing you weren't shocked they wanted to buy a $5M home.
Go sell your home by yourself, nothing is stopping you.
Housing crisis direct result of treating real estate as investments rather than their utility of housing.
You can change that. Sell your house below market value.
@@jos_t_band3912😂😂
@@jos_t_band3912one person doing this will change nothing 🤦🏽♀️. Your sarcasm wasn’t missed but you writing this shows you don’t really get it.
No, it government tightening new home supply artificially. If housing supply is not constrained by government. Prices with come down no matter what
I recently sold a property in Portland and am considering investing the proceeds in stocks. While many people are saying the market is ripe for investment, I'm unsure if it's the right time to buy stocks. How long until a full recovery? How are others in the same market achieving gains of over $450k within months? I'm feeling quite confused.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Angela Lynn Schilling is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment._
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
The best way is to start. Do what was said in the video. Find a business u like get to know it’s financials to understand it. Then buy it. We can’t time the market. Learn supply and demand that will get u started
hahah some one in the comments said "Realtors usually start as a Bottle service waitress," very funny . anyways ,My husband and I own single-family rental homes with $200,000 remaining on mortgages. We are considering selling them to potentially maintain a $70,000 annual income by investing in stocks and bonds.
Real estate is a solid investment but demands effort and lacks liquidity compared to stocks and bonds. Long-term market trends should guide decisions.
Selling nd investing seems viable, bt it's imprtant to consult a trusted financial planner fr income projections aligned with yr goals. A remote advsr significantly grew my prtfolio by 2 0 0 % through modeling trades nd patterns on charts.
Real estate isn’t as liquid as cash or cash-equivalents, or even stocks and bonds. But I rather the latter. Just as you’re experiencing, real estate can be a lot of work.
Avoid Ponzi schemes and reassess the perceived safety of bonds. Engage a trustworthy financial planner for prudent decision-making.
200 % is impressive !! who is this advsr you speak of and how do i get in touch?
In Sweden you can skip using a realtor and pay a flat fee of $2000 to handle all paper and legal stuff.
That’s how it should be in the US
This is the way it should be
Yep. At some point there's really not that much difference in work between selling similar homes. But gotta get that 0.5% more in commission. Just flat fee it and be done.
You can actually do this in the US as well. They’re called limited service agents
@@LJMarte8 I listed my house on the MLS using one and multiple realtors in the area called to tell me how big of a mistake I had made and that they wouldn’t be willing to show my home unless I used a traditional listing agent. It was pretty ridiculous…
The people who made Soylent sure have a sense of humor
Green's my favourite flavour
Especially for sponsoring this video..
Why thank you
^^^ Lmfao
😂😂😂😂 I laughed so hard when I saw it first time, balls of steel.
I get a call from my realtor every few months asking if I was interested in selling my house I purchased through her a few years ago. First few times, I politely said no, and eventually had to block her.
These people are slimy and have lost complete sense of what a house actually is. A place where people live, feel safe and create memories. Not a number on a piece of paper, or their KPIs.
You should've responded and then kept coming up with crazier and crazier requirements to sell the home. See how far she'll go before she realizes you're just trolling and leaves you alone.
Aren't you sweet, calling someone slimy? Realtors and real estate agents do not get paid a salary. They only get paid if they actually help someone buy or sell a property. If they don't convince people to do so, they don't earn a living. I understand how annoying it can be, but slimy? Come on.
A good realtor keeps in touch with their clients. I’m sorry you found it bothersome
I check in with past clients because I have come to know and like them. I want to know how they are doing. If they pass my name on to others looking to buy or sell. Great! If not that’s ok too
@@emilyfeagin2673 I'm happy if someone checks in. I've purchased many financial products and the RMs keep in touch, and I regularly refer customers to them.
It just hits different when someone directly pitches you to sell your house in which your family lives, that they themselves sold you with a lot of promise and depth.
I'm sure you're a good realtor, just that real estate is quite an emotional asset for us and most people I imagine.
@@EdLavenderspam is pretty slimy though
There's a huge reset of wealth right now, commercial real estate is down at least 30% same with the stock market, high tech with huge multiple variations are down more than 40%. So, is this a good sign to buy stocks or just hold cash? I own a house already.
transfer of wealth usually occurs during market crash, the more stocks drop, the more I buy. bear it in mind that investments are subjected to risk, hence it is ideal to seek guidance from an advisor unless you a pro yourself
Well said, I learn from youtube but been in touch with a well qualified advisor ever since losing out on my investments due to the pandemic crash early 2020. I started all over and after subsequent investments to date, I'm only 25% short of my $1m retirement goal.
highly suspect i'm much too small game to handle investing myself recently, figured out it will be good to consult a professional before the new year, could you be kind enough with details of your advisor please?
"Jill Marie Carroll" is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Yep. Spent about a year in the industry, and found that real estate agents do almost nothing. Even in a TRR negotiation or working with a lender, most barely understand the difference between a screw and a nail. Very concerned with the car they drive, but don’t understand HVAC or outlets.
Any realtors who survive this downsizing will be replaced with robots and AI, within 5 years. We already have the technology.
Spot on my friend. Awesome video! Thank you for all the knowledge and nuggets you had thrown my way over the last month. I have accumulated 180k today. Started with 17k in last month 2024 Investing with Sylvia Nicolas
Wow that's huge, how do you make that
much monthly?
The first time we had tried, we invested $4,000 and after a week we received $16,400. That really helped us a lot to pay our bills.
More spontaneous T.A with mrs sylvia nicolas!! Keep driving those bullas! 69K
BTC? Oh, yeah! cheers mate
Wow wow please is there any way to reach her services, I work 3 jobs and have been trying to pay off my loan for a while now, please help me..
*SHE'S ON TELEGRAMS MOSTLY, USING THE USER NAME.*
No HMW, 6% for emailing a docusign is completely reasonable
don't forget the 3 pictures they took and that whole paragraph they had to write, poor little realtors working themselves to the bone
@@TheSimba86Don't worry. My loan officer assured me some of them aren't even doing that and outsourcing it to a $12 an hour Flunky.
Of the 8 houses I considered/offered on/closed on, the seller agent was right a grand total of- drumroll please- 0/8.
you're forgetting about unlocking and locking the house. Big important.
For real. And it doesn't save any time because you still need to read the bid line by line to ensure the realtor didn't screw something up. Between Zillow/Redfin and contract software, the whole job class should go the way of lamplighters and the pony express.
@roomie4rent Never met one who got the details right.
The buyers agents I had were warriors tho.
CZcams put an ad for NAR on this video, lol
Hah
For me too!
Same
And I got one from Degiro at the start, and another from ERA at the end.
As an Arizona Realtor, I think NAR is an anti-trust violation because you can't work as a real estate agent without working for a real estate broker and if your broker is a NAR member you as an agent are required to be a NAR member to work for that broker, and there aren't many brokerages in Arizona that aren't NAR members; it's "effectively" impossible to be a real estate agent in Arizona without being a Realtor
But.. I think the IRS ruined the market more than NAR, all the CZcamsrs talking about tax loopholes for being a professional real estate investor created too many investors in the market, then the investors from states with a lot of money like California sell 1 property and take the money into states like Arizona where they can buy 3 and jack up the rent to keep their cash flow up; even eliminating NAR won't fix the problem the IRS has created
Just replace "Arizona" with "Any state within 1000 miles of California"
Congress, not IRS. IRS simply executed what’s passed into law by congress and approved by POTUS.
@@TheMasterhomasterSounds like the whole system is broken and needs to be thrown away
I wanted to get my real estate license literally just to have it and not practice.. Just as proof of training and being able to private sale or purchase a house.
Nope, the government has been lobbied by almost every field that requires a 'license' to require working for big corporations before you can even get your own license to practice.
If people don't want to hire you because your inexperienced but licensed, then who cares? Your going to be competing with the corporations because you will offer your service for a lower price. Instead you now get felons acting as contractors because the only people cheap are doing it illegally and that's why you get crap work.
Just wait there is a new business about to emerge that will cut NAR totally out and allow a National MLS. I can't wait. NAR can kiss all of us where the sun doesn't shine. They created a mess now I have to hear stupid videos like these that are trying to say our commissions are the problems.
8:50 "Sale at any price" very much correct. While a sales agent technically makes more if you sell for more, they'll make MUCH more if you sell quickly and then they can move on and make another sale. Both buyer and sellers agents are incentivized for a transaction to go quickly.
And at the highest price
@@TsavoTouring Are they really though? If it's only like 3-4% more they really aren't going to care because they get a flat cost in combination with a commission based cost.
@@Lolatyou332 $180k at 6% is less than $300k at 6%
@@Lolatyou332 there’s no reason for a buyers agent to negotiate for a lower price without being forced to… it slows down the transaction and lowers their earnings. This leaves you with an “advocate” who is not working for you… but against you.
@@the_expidition427 true, but 10 hours work to sell at 600k vs 20 hours work to sell at 630k... 600k wins.
I'm just saying, if a company knowingly names itself Soylent and sells a green smoothie, I want nothing to do with their product.
What is they offer plant based meal replacement?? No joke I found this on Amazon 😅
I heard that ad and thought "whoever came up with that needs to be fired... yesterday"
Yeah because a reference to a movie 50 years old will really bother their market so 20 year olds…
🤣 I watched that movie and thought haha how cheesy... And then had the worst nightmare ever about living in that world. Frightfully effective. Pretty sure the plankton in our oven is declining by the way.... 😳
It ain't bad. It ain't good though
People like to blame real estate agents, when, in fact, it is actually my fault homes are so expensive
How dare you 😡
😂😂
Screw you bro
Boomers told you to stop eating coffee and drinking avocado toast but you didn't listen man
Holden closing down... something something... house prices go up.
I would say probably, the idea that they make a percentage of a houses worth is insane. Just do the math, if it's going to take you 30 years to pay off a house, that means you pay off 3.3% per year, that's not how it works thanks to banks getting their interest first on loans and principle being such a small piece of the upfront years payments.
But at 3.3% (If that were the math and it's not) you would be paying a realtor 2 years worth of payments as commission for what? It's antiquated and they need to just make a fixed amount per close and compete for business with that amount.
Couldn't have said it better myself. A 125k house is no more difficult to sell then a 600k million house from a labor perspective. Why should the commission be larger for the more expensive house?
@@foremanhaste5464 funny enough I think you’ll agree with me. The 125K home is probably harder to sell depending on the market and location. 😂
@@jrbionic404 In American Midwest small towns, 125k gets you a pretty decent place and they are pretty common. Naturally, 125k would maybe get you a lean-to on a small lot in Pittsburgh or similar.
@@foremanhaste5464 I love that for the Midwest!
Do you want me to charge per hour?
I’m at least 100 hours into my current transaction. And with what I would charge, commission is going to be cheaper
There are so many issues with the real estate/housing market, and realtor are a minor piece of a problem that has other major issues which need to be addressed.
Yea it will be a long time before we see any real change
Yes, the realtors are not as significant as low incomes for workers, higher interest rates, and investment funds driving real estate prices up by buying housing
@@hugoestrada2089nimbys, zoning laws etc as well
Not true. Realtor price fixing is the second largest financial crime in U.S. history. The largest financial crime is the actively managed mutual fund industry.
There is no housing shortage.
People buy up properties like shares of stock, and then sit on their “investments”.
An easy fix to the “housing shortage” would simply be to tax the crap outta any property that’s
not a primary residence. Problem solved!
And increased taxes for additional homes. (That way if someone has a vacation home somewhere in addition to their primary residence, they don't get completely fucked.)
Yes, that is the solution.
Look up Georgism Land Value Tax
Preach it brother. True gospel. A home is a dwelling not an investment.
Unfortunately for you, all your favorite politicians, and I mean all. Have many many many properties 😂 Good luck
Whaaat? An industry putting profits above customers' interests and ruining everything for everybody? Such an unheard of occurence!
😂😂😂😂 goated comment
I love that realtors complain about not being able to make rent.
I wonder if a realtor could find them affordable housing.
Sold my last house without an agent, got access to the MLS for a flat fee and sold my place for $25k over asking price. The process definitely wasn't worth paying someone 6% to be a middle man.
I was with my real-estate agent and he saw a house come up that someone in his office was selling for a client and the price was so high he assumed it checked all our boxes. When we went in not only was the house selling uncleaned but it was so small and didn't even have a bathroom in the small master bedroom. She listed the house about $150k above what it should have been and he couldn't hold back. I had been complaining that the agents were driving up the prices and he kept defending them but this really took the cake smh!! Now the market in that state we wanted to move to has completely evaporated! Literally no houses. I knew that would happen from all the greedy agents pushing up the housing prices and now they are desperate to get clients by trying to find all these "grants" and help for homebuyers because its just too high to get a house and put a down payment on it!! Smh!!!
When homes became business/equity, we created a deeply rooted problem.
Homes and land always were a commodity. All real wealth is derived from taking natural resources from the land and processing it into a good, everything else is just a byproduct of the value of the resources on the land. Kings, lords, and otherwise nobility built their wealth via their lands and would allow peasants to build on it in exchange for working their fields or harvesting their timbers. Many peasants would become merchants in their respective trades to increase the value of the raw resources they extracted from the lands to put themselves in a better position to purchase land from said nobility.
I got a RE license years ago, realized what a scam it was & never kept it up. Good for commercial purposes, but for residential, not in best interest. All the legal info you need to know about buying /selling your home is at your public library or law library. There's no secrets & paying someone thousands or tens of thousands of dollars to basically take photos and put on a website seems ridiculous.
Got my license a few years ago. I had gotten a job in commercial real estate and have only worked commercial. I've also worked with industrial brokers. We all have the same license, which is a "Salesperson" license. And 90% of the training is aimed at residential. The market is saturated with residential sellers.
Buyers seem to have apathy, in that they go to the realtor's expensive office when they need a home, because they do not see the money as coming out of their pocket. For that reason, the sellers need realtors. Buyers are the ones that will not go around the realtors. And as much as we wish it were not true, some realtors are better then others. Realtors do market the home, and that is a skill.
3:32 “NAR won’t let agents undercut each other”
Incorrect. The NAR doesn’t set commission prices. Individual firms do. You say the commission is 6%, but that hasn’t been the case since Zillow hit the market. There’s no official “standard” but 4.5%-5% is much more common now
I’ve worked at limited service firms that had 2% limits and 4% limits.
that might be "technically" true, but there's so much collusion in the industry, that there's no way to find anyone willing to work for less than the standard 6%. We sold our home 3 years ago in the hottest market in the nation, where people were buying homes without even seeing them, waiving inspections, just total madness to buy into that market. No single agent would budge on the 6% commission. I regret not taking on the burden of selling myself, but I caved to the FUD peddled by the real estate industry.
NAR and realtors are some of the worst parasites in society. I have zero respect for anyone who chooses that line of work.
I've been through the buying process twice and selling once. The one thing I learned early on with buyer agents is that if you don't feel they're acting as a unbiased advisor, fire them. You're never obligated to keep working with someone you don't feel is looking out for your best interests. When I sold, my seller agent actually did reduce the commission percentage because we had become friends.
I am curious if this lawsuit is going to result in a lot of unintended consequences.
My big concern are my buyers that use VA loans.
If sellers aren’t willing to pay a buyers agent it’s going to put them at a disadvantage
I already make less when I represent a veteran but I do it as a way of saying thank you for your service.
Sales commisions based of the value of the house sale should not be allowed. It should be a fixed fee to close and there should be other fixed prices for services such as touring homes or hourly fees for doing paperwork.
I paid $25k for a realtor to take pics and post my house online. Complete rip off for something i don't even need help with. Never using one again
Why did you pay them?
You paid them, because they sold your home. (lol). Truth is, i really had trouble not using a realtor to sell a home. Buyers would not come. And I"m in tech, so, I know there were no missing details, and everything was accurate. Yet, no buyers. Zero. I reduced the asking price, just to sell, and zillow then called that the value (dolt).
@@normbograham I sold the home actually. I had to show the eventual buyers around because it was a custom home on some land and the realtor knew nothing about it.
I like that guy dancing to the tempo at 0:13 😁
That's how I dance after a few shots 😆 lol thank you for pointing that out I've been laughing for the last 30 second
wow i didnt noticed that until you pointed that out... editor just earned a raise in my heart now
In 2016 I sold my home in Houston without a realtor, all I actually needed was a title company that charged a few hundred dollars and did the actual legal paperwork. Realtors excessive fees make 0 sense to me. When I tried to buy a home another time and had signed with a realtor but the seller wasn't using a realtor the fees my realtor demanded for finding my own home dissuaded me.
The NAR constantly writes articles how now is the right time to buy a house.
Exactly!
I'm old. I've never heard a real estate agent say, now is not the time to buy a home. They always say, now, is the time, and you've got to do it quick because ...
What the hell is a Realitor?
Agreed, whenever he talks about real estate on this channel, I have to mentally prepare myself for hearing that cringeworthy pronunciation over and over again in order to get the good information.
So glad someone else noticed. It is driving me bonkers.
You also forgot to mention that most people cant even afford basic apartment rent let alone a home
I have it on good authority that soylent is, in fact, people.
mr money works ty for another banger
Thanks for watching
@@HowMoneyWorks of course, you've helped myself and countless others be much more informed about this crucial aspect of life :)
This video does not summarize a mainstream view in my opinion. This hot take is the first HMW I've seen that I would honestly call slanted. Real estate commissions might not even crack the top ten of reasons for poor housing affordability right now.
Never mind the govt printed trillions of dollars the last 4 years. Not including the regular over budget spending.
@@joe-zj8js yeah, I've mostly liked their videos but this is pretty bad. Like at least learn how to say Realtor properly. Lots of "facts" that are completely incorrect and have little to do with housing prices.
Im not being sarcastic or nasty but if someone says I want to sell my ran down rancher for $400k do you not coach them that its ridiculous or do you just say ok and list it?
@@eyeinsee an honest and ethical agent will not work with unrealistic sellers, because having listings sit for long periods of time (or expire) does not look good for their stats. Unfortunately there are far too many agents who only see the potential commission at the end of the deal and will do and say whatever the seller wants to hear to get that listing.
As a Real Estate agent, I can state that 6% is no longer the industry standard. Its more about 4% and further more there are discount brokerages that do it for less.
Housing isn’t a investment it’s a human need/right
@@draco_1876 If it's a human right, sue the government for not providing you with a house
@@draco_1876Tell that to the farmers lol
it's nice to have a money channel on here that is as pessimistic as the real world proves itself to be over and over and over again. "don't get your hopes up; the things you think you want would actually also be bad" awesome.
Dude, calm down on the Soy, that is one brand I'd avoid being associate with
Soylent Green is people!
What is the secret of Soylent Green?
Trying to sell my home was one of the most mentally excruciating experiences I have ever been through. My god I almost lost my mind!!
As someone who sold 2 years ago… just curious why?
@@vaporizer82 My realtor was a complete and total unhelpful doofus. As time went on, it was obvious he was not very smart. The buyer wanted some kind of certification that mold had been removed from the home. The ONLY people even willing to come out to the house where extremely sketchy and I wound up taking out a 5K loan to get them there. They did some very shoddy work and could not provide what we were looking for in terms of a "certification". The realtor was no help during this process. I wound up calling many departments in the state and the only "mold certification" of any kind was for huge industrial buildings. I then found out the realtor was not only selling this home for us but was also making a commission off of the buyer. So now I had these strange people who had been in my house, did not do the job, and I owed them. The realtor informed us it would cost us $15k TO SELL the house!!! He suggested to my wife to get car title loans and payday loans to get the cash together. I called him and chewed his ass out like no one I have ever screamed at before in my life. My god it was all a nightmare!!!
Honestly a sellers agent might be worth it. Idk if I wanna show houses to people.
@@notabot1798 If your house worth like $300k, you are willing to pay someone else $18k just to avoid answer some phone calls and give a few tours?
I’m sorry you had a bad time
Watching this from New Zealand your out of control property market seems sane and affordable
That’s because you don’t live and work here.
@@LAC32Griffin no, it's because the median house here costs 10 times the median income.
I've always heard NZ property prices are incredibly high.
percentage based commission is trash. Literally an inspector will require a couple hundred dollars and they do much more than the real estate agent in today's markets.
You really think an inspector does the same amount of work?😂
An inspection takes 4 hours. A real estate agent will usually work 2 months or more on one deal. Probably 40+ hours. Not even close to the same.
At a sale price of 350k, the agent is only walking away with around $5600 after brokerage splits and taxes. Pretty reasonable for the amount of work they do and the value they provide buyers and sellers.
That maybe for a few, but a lot of homeowners that want to sell and the buyers do a lot of the work that the ( AWOL)agents should be doing. The only time you may hear from the agent is when it is time to sign the contract. There are too many buyers and homeowners that have to locate the houses (which the agent should be doing), with the agent doing minimum work, but reaping the maximum reward
@nicholasfinefrock363
Thank you for saying that so eloquently
@@nicholasfinefrock363 So... 40 hours of (computer clicks) for over $5000 is reasonable?
@nicholasfinefrock363 maybe you can explain the amount of work they do. All my agent did was set up a filter on the MLS, show us houses, and get us to the title company. Our mortgage lender and inspector did everything else.
I feel like 1 out of 7 people are real estate agents.
And 1/7 realtors probably have a side hustle (or spouse) working for an MLM scheme.
Those numbers are too high.
Why not? It’s the most fun I have ever had.
You should try it!
@@emilyfeagin2673 parasite spotted
Yes.
Next question.
Should I go on a bike ride or be lazy and watch soccer this weekend?
@@HowMoneyWorks Watch soccer while biking.
Next question.
@@HowMoneyWorks do both go on the bike ride and you will feel better about relaxing and being lazy
Soccer and livestream
@@HowMoneyWorksyes
15 Years ago, I confronted few Apraisal/Agent at a open house. "Why that house builted 1900's and this brand new are worth same!?" Both houses were equivalent in size and lots. They could not answer....my take=this is a scam! They give whatever number they want=pure speculation! There greed drove the market to insanity..now what?
I took a shot everytime you mispronounced realtor and got so drunk that I now somehow own a home
The discussion about the influence of the National Association of Realtors and the MLS was particularly insightful. It's surprising to learn how much control agents have over the market and how it impacts buyers and sellers.
Houses are more than 1 million here in Bellevue WA, both agents get about 30k each. What a stupidity.
You know at least it’s Real estate and not FAKE estate 😂😂😂. A bad joke a day keeps the doctor away😂.
Honestly I’ve never heard that one before so it got a chuckle
And in march the 'Digital Real Estate Agents'...
Saying real estate agents suck is attacking the wrong people. They are just individuals that saw an opportunity based on rules they did not create. Around 80 percent of agents don’t even keep the license.
Attacking the Real Estate”mafia”, ie NAR, and the system is a legit complaint.
The calls to curb benefits and deductions for owning a home is only going to hurt the young in the long run. The call to punish those who own a home if you don’t, will eventually effect you.
AI will replace agents for much lower costs❤
Not to mention, that as more and more careers are destroyed by offshoring and technology, many Americans are desperate for work that might pay enough for them to survive.
So they drift into selling real estate because it was one of the few remaining careers you didn't have to go back to college for (similar options like travel agent have previously been eliminated).
Another such option is to become a politician, run for office, get elected, and take bribes (explains the lack of statesmanship among modern elected officials).
Just remember that that commission (which is usually split with another agent and a broker) is tied to the sale price of the property. When the market is up they make more than when the market is down. So if realtors had some way of manipulating the market it stands to reason that it would always be growing. Demand is what is inflating the market and it’s mostly from corporate real estate investors and the Airbnb bubble. Corporate investors want to be your landlords and have the capital to outbid you for property. Realtors are riding a high while the market is up but that will change and a lot of agents will leave the industry when housing prices drop and a single commission check every few months won’t cut the mustard
That's fine if they leave the industry. Their jobs are no longer necessary. They can be completely replaced with technology.
You should do a video on non-disclosure states, really mind-boggling to consider that buyers are at the mercy of agents and can't verify value for themselves.
Nobody is going to do something for you for free. Realtors frequently show a client dozens of homes only to have the client get a divorce, rent instead of buy, or make offers so low that nobody will sell to them, or ask for way more than anyone will pay. All of this equals a waste of time.
I will tell you what the lawsuit will wind up doing to the market. Half of realtors will quit. That means that clients will have to choose from a smaller pool of realtors. That means an increased likelihood that you will have to work with a realtor who isn't as good as you would have otherwise gotten.
There is one other alternative. The realtors who stay in the business might just stop representing people who are trying to sell a house that will list for less than 400 thousand dollars. If YOU cut into a man's percentage, then HE will just represent a bigger number in order to offset his losses.
I mean, thats not the only thing ailing our home prices, but given the last few things said Im pretty sure you are aware. Would love a more in depth video or a series covering all of it.
This is a great lawsuit. It should be competitive and free market, if someone wants to do the work for $2k they should be able to and not get 3% of the house. Which for $500k is $15k
“Realtor”, not “Realator”.
Right. Informative video, but it boils my blood every time I hear him say 'reeladur'
I guess he can't relate.
@luke5100 Don't get so fustrated.
@luke5100don’t get me started on ambi-dex-tree-us
😂😂😂
Long story short: The real problem is insufficient inventory to support the market demand. With such high demand and such low inventory, everyone is and will game the system to their advantage.
Not a single word about the cost to build... I just got quoted $50,000 for flat work and poured walls for a 1,200 sq foot footprint.... You can't build a low-end 1,200 sq ft split entry with an unfinished basement for under $400,000... This is the problem...
if only people treated a house like an appliance, like it is, rather than a investment
Bro using Amon's mask
Originally it’s a Guy Fawkes mask, so Amon’s mask from TLOK is inspired by the Guy Fawkes mask
#Avatar
So Amon hasn't betrayed us non-benders?
Thank you. You’re the only one I’ve heard recognize what I’ve said which is this will just hide that information
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Love the info. And I will never ever consume a food product called Soylent. I'm sure it's great. I just can't.
Institutional investors need to be moved out of single family homes for sure.
Right on. Or at least for a while.
Cheap and easy money is what drove up housing prices. We are a monthly payment society but were walking on a thin ice because people are in so much debt.
You are absolutely correct. Over the years, as the government played with interest rates to try and spur the economy, the end result is what we have now. Not to mention the number of investors in the residential market. Have you ever looked at what investors have been paying for rental properties? The numbers don't make sense.
I was thinking of getting my real estate license and now I don’t think I am. Thank you for preventing me from wasting a lot of time and money! I’m going to look for something to do that is more needed.
I think that is very wise. There are 1.5 million REALTORS. There are 4.5 to 6 million residential units sold per year. See the problem? I don't know of a more overloaded profession out there.
Real estate agents are on the same level as used car salespeople
Yeah, NAR really screwed our reputation
Sellers usually turn into buyers and use the same agent so they won't be saving because if the seller agent takes 3%and then that same agent charges 3% as the buyers agent the seller just paid 6% and sellers almost always buy a home more expensive than the one they sold.
Every House is advertised as "top location" , "easy access to the street" , "Great value". So basically those words mean nothing
The issue isn't realtors, the issue is private equity. They're buying too many homes
Normally love your content. There’s a lot of fundamentally, incorrect assumptions and facts in this particular video, however. I do agree with some of your underlying points, but would love to help you strengthen your argument. I don’t know if you ever do corrections or updates to your videos but if so, I’d be happy to chat with you about the points here that are not helping your argument, and may be driving emotions and animosity more than necessary rather than actually educating So people can understand and do their part to resolve important issues. I’m an attorney, a real estate agent, and a person who doesn’t own a house but wants to in the future, so I’ve seen this from all angles. Would love to chat with you about this even just for a few minutes.
It's not just the agents, it's the whole system. Everyone from attorneys to inspectors are in on it. While I support people making a living it's probably time for more standardized pricing practices. That along with taxing the hell out of gains that outpace inflation and I'm sure prices will drop. I seriously doubt someone will sell a house for 700k vs 350k if they're going to lose the majority of their gain to taxes
Why? No matter the tax, making more money is always going to mean making more money. The other problem is that this punishes people who want to move whether for better work, growing family, or whatever.
@@rightwingsafetysquad9872right. Taxes aren’t the solution. Deregulation and transparency are the solution.
@@The.Harsh.Truthswhat deregulations? The problems mentioned in the video aren't regulations and they're allowed because there's no regulations from being anti competitive. We'd need regulations to increase competition.
@@tomlxyz I mean the MLS should be accessible to anyone and people should be able to use sites like Zillow/Trulia to reach out directly to buyers/sellers and negotiate prices. Both sides only need an attorney and FSBO should be standard and made easier with free market tools. Buyers/Sellers agents don’t do anything, and only make that much because they have lobbyists who keep their space regulated.
The quality of the visuals in these videos is getting better every video
The practices of the real estate industry really do trickle down to affect most, if not all of us. The regulations and changes in the industry must become more transparent for a fair marketplace.
Soylent green is people!!!!
The mint chocolate flavor is ironically my favorite
@@HowMoneyWorksNo irony there. A sufficiently reduced population leads to lower real estate prices.
That's human marketing for you
It baffles me whty gringos dont just buy and sell directly person to person without using these agents
Because many people will get taken advantage of. Most don't know what they are doing or their rights.
And how we know who is selling their property
The NAR doesn't prevent agents from undercutting each other. Commissions are negotiable, it's just that the public doesn't often try or know about it. In our market we've been negotiating our commissions for years--I haven't charged 6% in a very long time, and I've both won and lost listings based on rates.
Overall, the lawsuit will probably be a net benefit since commissions will come down some, but there will be some negatives to these changes as well--especially for 1st time homebuyers
Yes Soylent 😄💜 in the UK we have Huel but it's in the US now too
It's fucked up that only the realtors/agents have the ability to see the local listings fully.
4:06 unfortunate naming...
They absolutely know what they have done...
The marketing for this company is truly human
Soylent Green?
@@Mbcs1992is people!
Yay new video
Personally I believe after your fifth piece of property taxes should double than triple after ten. That would put a pretty good dent into unaffordable housing.
The American realtor system is so weird, if any of the British Estate agents (our version of realtors) companies cotton on, they would absolutely dominate the market in America. You want to sell a house then you choose an estate agent to sell it for you. You want to buy a house then you can either check online sites like Zoopla, or all the estate agents have a website with all their listings, but you also go to the estate agents and twll them what your looking for and they come to you with suitable houses. The estate agents only chaŕge between 0.9 and 3.6%, or if you use Purple Bricks an online company you can list your house for free and pay to boost it which is far cheaper than using an estate agent.
Why would you mess about with getting someone to go to the realtor, to then cone back to you, then go back to the realtor, to cone back to you to arrange a viewing? You could waste hours booking one viewing!
I tried to sell my house in 2018 by paying an agent a flat fee to list my house in the MLS… I planned to use a real estate attorney to cover my bases… and I offered a 3% commission to a sellers agents. Within a few days I was getting calls from realtors telling me how dumb I was and that I needed to hire a sellers agent because none of them would work with me. We even held an open house and most of the people who showed up were new agents trying to get the listing. The US real estate system is a joke… but it’s protected by one of the largest lobbying groups in the country. I’m actually surprised that this lawsuit even happened with the amount of political power the NAR yields.
@TsavoTouring so do you not normally need your own lawyer and thebuyer/seller has their lawyer to sort the legal side? In the UK estate agents are literally just a company to advise you on how much your house is worth, and to sell it for you, if you agree to the offer. They also offer advice on whether to accept an offer depending on the market. All the legal side and transfer of money is done through your lawyer.
@@kaneworsnop1007 nope, real estate lawyers as far as I’ve experienced are pretty rare in the world of residential real estate in the US.
The reason people aren't selling their home is because of interest rates not the realtor commission..
My dad has access to that website it’s pretty crazy shows listings in real time.
Just sold my house and realtor keeping a $18k cut when I basically sold it myself to the new owners. That is highway robbery not definetly not fair business
buffalo wings or lemon pepper?
Buffalo
Buffalo
Real estate agents + Boomer landlords = Disaster.
crazy the average sale price doubled in 10 years. Havnt seen average wage doubling in 10 years, not even in 50 years. Inflation sucks
We got the Property Tax instead of the Land Value Tax, which would have not penalized fixing and improving your property and would have incentivized efficient use of land.
Agents dont control prices, the market does. Supply and demand -not enough houses. But lawyers figured out how to tap into everyones anger and shift the blame to agents while they reap 30% fees from these massive lawsuits.
They are apart of the larger problem
Top comment
Wow, it's 1% or lower to sell a house in the UK, and we we're getting lower fixed price deals too.
How much does the UK Government charge on a Real Estate transaction for doing absolutely nothing?