How America's #1 Realtor Jason Mitchell Is Navigating This NAR Settlement
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- čas přidán 19. 03. 2024
- Tune in to this special interview with America’s #1 Realtor, Jason Mitchell, as he shares his thoughts on the recent NAR settlement and his solution, which he calls a ‘Realtor pledge’.
He also walks us through powerful points and scenarios after this settlement and how this impacts buyers' agents and listing agents in the future.
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I just want to say thank you from the bottom of my heart to all of those who watched my interview and commented. Regardless if you agree with my stance or not, the point is to have discussion. Thank you Dave for having me on. And THANK YOU lending community for all you do. I promise you my position is one that helps your community and your buyers alike. Thank you!! JM.
Good work Jason..45 years in and this looks like a good time to check out. Do not fix it if it isn't broke. Short sighted...
@jasonmitchell6841 do you have a sample form where the buyer signs telling the agent they only want to see properties where they do not have to pay out of pocket? Thanks
I could not agree more, Jason
I have watched over 30 videos on this in the last 2 days. This is BY FAR the best. There is a reason Jason is #1. He knows what he is talking about. I am 100% aligned with his point of view. Good job.
I absolutely agree
100% agree
Agreed!!
Agreed!!
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Buy now, home prices will not go lower. If rates drop, you can refinance.
The government will have no choice but to print more notes and lower interest rates.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Amber Angelyn O'malley who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Jason Mitchell 2024! This is the only industry video that takes the entire economy into account to explain what's going on. Thank you for sharing! Jason....please run for office!
Out of all the language’s to speak in the world, Jason chose to speak Facts.
The best investment one can do right now is investing on real estate though stocks are good but ever since I swapped to real estate, I've seen so much difference.
I have been making a lot profit through real estate which has been the main source of my income.
I’m interested I want to move to real estate investment can you help me ?.
Sounds great! please I will appreciate your assistance on how to go about it, who's your coach and how good is your coach?
STEPHINE KOPP MEEKS is who i work with look her
Thanks for recommending i find her and left her message online
This is the ONLY real video. Agree 1000% with you. You are the only one who didn’t say that this is a fantastic change in the industry! Everyone that said this is a great opportunity , don’t have any idea about the difficult situation for our clients now.
yep
Jason Mitchell is amazing! Thank you for having Him on and for a great Interview!
This guy is 100 percent right.
I am a realtor, trainer, and sales manager for 37 years and this hit every point I have been saying to our agents since the decision was made, this is the best video I have seen and will be sharing it. The industry will adjust but it's true that this decision did nothing to help consumers.
Well said and agree completely!
Real estate is a perfect job for former sex workers or prostitutes. You you have to see as many clients as quickly as possible. You have to get them in and out as quickly as possible. You have to get the most money as quickly as possible...
@@DakotaFord592 Tell everyone more about your extensive experience as a sex worker.
@@kevinrushton2906 I have had friends who were prostitutes and then retired and then did real estate. 😂 It's common knowledge, after you're done selling your a**, you can sell a house. It's an easy transition because you learn all the skills.
@@kevinrushton2906 real estate is the perfect profession for retired prostitutes. Always be suspicious of real estate people, they're usually sex workers who are retired. 😂😂
The option you’re not saying is if an agent won’t show a listing because there’s no buyer agent compensation, The client will just go directly to the listing agent and see the house. They’re not going to walk away from a house they want just because there’s no buyer agent compensation.
He did address that.
He mentioned that.
he touched on this- the. time he was sued, it was Dual agency. He noted that the List agent might do it, but no discounts because the one side has been reduced.
@@patriciaellinghausen4365 The original poster isn't referring to dual agency, but rather the buyer representing himself. I agree with him. In this new world I, as a buyer, would do the searching and negotiating myself, then hire a realtor or attorney $1k to make sure I'm legally covered.
Thank you Jason for keeping it factual, real, to the point and everything we want to say!
Jason Mitchell woke up this morning and choose to spit facts 💯
Hundred percent agree with JASON that the screws over the vast majority of buyers. Pisses me off so much.
How?
1000%- Could not have explained this mess any better. Jason is real , 100% right and speaks FACTS!
Jason Mitchell you are spot on!!!
Kudos to Jason Mitchell for giving such a clear and concise reality of what NAR has done to the Residential Real Estate community.
So grateful for this video - ALL of these issues are what I have been talking about (and fearful of) since the release of this news, but no one has been able to put it to eloquently and matter-of-factly for ALL to understand, not just agents. THANK YOU JASON MITCHELL and for Mortgage Coach for hosting!
I left NAR and opened up a non-member brokerage. There are many benefits to being a non-member.
Many may be considering this route.
Just came across your video - you make some excellent points. I believe you are glossing over major themes. 1. The public at large was uneducated on the real estate process as a whole (this is just how its done) - now disclosure of compensation is negotiable & not a requirement. 2. Economics/competition will put pressure on sell side commissions (mandatory in place sell side agreements will allow property owners to opt out buy side compensation) this is the whole basis of the lawsuit making it illogical to assume prior buy side compensation will go back. 3. It will be much harder to conduct business from the buy side with buyer compensation field being eliminated from MLS. (a purging of brokers can be expected) & that side has never paid a commission & will resist. 4. Getting buyside clients to sign the required agreement that has to explicitly outline compensation - no open-ended wording is allowed (your pre-show agreement will not be compliant) is going to be extremely challenging to brokers, especially new ones. 5. Buyers will seek homes from listing agents/agencies direct - paying (2) fees for (1) transaction will be a thing of the past in time. 6. Listing agents will be unwilling/can't compensate the buy side because it commission compression as you articulated.
When are buyers going to sue the DoJ for discriminating them from having a fair housing opportunity. So much about fair housing law.
Excellent call Dave & Jason. Thank you.
This is excellent. I noted specific excerpts that had the most powerful messges:
2:23 - 5:50 representation for first time home buyers (FHA, VA); evolution of case & transparency
7:03 - 9:58 consumer behavior, complexity of changes
14:22 - 17:15 dual agency; collusion accusations
25:21 - 28:39 fee for service; effect on home prices; inflation
I am so glad I found this video... Jason Mitchell is fantastic !!! Thank you!!
Jason is 100% correct that listing agents need to communicate this message to their sellers! And lenders can really help a lot here as well. But buyer agents need to also get prepared to communicate their value to home buyers.
Listing agents will hold more open houses. They’ll put out a one page term sheet for unrepresented buyers to make an offer. LA will write the contract and disclose agency for the seller only. Buyer can show contract to an attorney, a paralegal, a friend, or rely on self. Nobody will pay for buyer representation.
They won't have to because most sellers are still going to offer compensation, it simply won't be in the MLS
@@kevinrushton2906 Meaning that that offer of buyer representation compensation is not enforceable. In a seller’s market, sellers will review their multiple offers with a buyer representation credit as one factor among many. Offers with that term will lose out more often than not. Buyers will learn that their offers are uncompetitive with a request for seller- paid buyer side representation. Pretty soon, paid buyer representation will fall out of practice and become unheard of.
The problem is that lawyers and paralegals will charge by the hour, and they get paid regardless of the outcome.
As a buyers agent, we often work for months without any pay. Then the buyer decides to rent and we get paid nothing.
In this scenario, the buyer would have paid a lawyer thousands of dollars. But actually no... They just wouldn't be able to afford the lawyer because they're a first time buyer with zero down.
Thank you David and Jason...great info!!
What is politically troubling is that the DOJ is telling a homeowner who and what they can pay.
Agree completely. Nauseating.
Bravo. I remember in 2020, when the government was giving free money 💰 I my first thought was this is not going to help. In the short term, this may seem good, but in the long run, it is bad for our economy. I learned this by hearing Javier Milei, a great economist from Argentina.
the clients will not pay and they will go directly through MLS< you'll see.
3rd party sites will emerge with $299 list fee or $299 buy fee
They already exist. They have for years. But will the deal close. I'm betting on a lot of "back on the market" listings from July 2024 -March 2025
What I fear is that there will be a lot more buyers going directly to the listing agents and bypassing a Realtor for buyer representation
Yes and like the majority of discount service that have been around for decades they will only represent a tiny portion of the market. This is nothing new.
It’s already happening. I have a realtor license and only sell new construction. I hold my license with a brokerage that only charges $99 per transaction and the agent gets to keep the remainder of the commission. The agent does pay a $99 monthly fee to help cover the brokerage costs. It allows agents to take less commission and still come out well because the brokerage isn’t taking most of it. The brokerage does okay because they have a ton of agents. And no, my deals don’t fall through and we close plenty of homes, enough I get text messages routinely from other brokerages trying to recruit me. 😂😂 The push the fear factor is strong on this video. 😂
Not disagreeing with your second line, but unfortunately, you often get what you pay for. In the case of homes, "most people's" largest investment (unless you're in the yacht/jet realm) I certainly wouldn't the quality of representation that will likely come with a $299 price tag. But people won't realize that until it's too late, most of the time.
US consumer has to sue Kechmark for frivolous lawsuits. The current system has worked for over 50 years we just need to come up with better disclosures and leave everything as is but we need to come together and Sue lawyers like Ketchmark for misrepresentation
I'm already 17 minutes in and this is buy far the best interview. Jason Speaks Truth. Thanks for giving him this platform to speak on mr host.
Wow! Jason Mitchell com'n out swinging with the truth. NAR and the DOJ have screwed buyers, especially those buyers who can least afford to pay, first time home buyers. I'm very interested to see if local MLS will be replaced by a national listing platform that is not beholden to the NAR. New home builders win because their business model has consumer direct advertising built into its offer price. There's so much to go on about! Dave, thank you for bringing this content to the lending community who needs to be informed.
The only point I think he missed, is that it is still legal to be a Sellers Agent when working with a buyer. Agency Disclosure Form explains to a Buyer that I am a Sellers Agent. The Seller is paying me, however, I am leaglly bound to be fair and honest to all parties to a transaction. I am broker. A Broker brings a Buyer and Seller together. Also, Auction houses chaarge not only a Seller Fee, but also a Buyers Premium. I have seen 10% and the Buyers side and 10% on the sellers side. Thats equates to a 20% commission!!! The same people who complain that we are over paid, are the same ones who think nothing of paying a 10% fee to an auction house. Realtors are NOT over paid in my opinion. Go work in a real estate office for a year and watch what they do. Youll then realize they are NOT over paid!!
I'm 35 year tenured pro, past everything in Association governance, and expertly trained in agency law.... You are right. The flaw is so many think dual agency is the same as selling your own listing. Or one must be a dual agent to do so. Dual agency exists in many ways beyond that situation. Totally easy and legal for the listing agent to disclose they will represent the seller and help the buyer purchase that listing. Yes, it may be better the buyer gets their own representative. But that is a decision the buyer has the freedom of.
never heard of this guy but I like him. Well spoken and spoke facts
Must be why he’s the #1 realtor right?
Bravo!
Thank you for sharing this call 👍
I have 2 new listings. Both asked me about the "new commission ". Long story short, both decided to go with the old commission model after I outlined the pros and cons, and possible problems. I told both that if I decided to sell my home today, I'd offer a Buyer Agent compensation to attract as many Buyers as possible, and five them that incentive.
They both agreed.
So don't let this scare you. The market and Sellers decided the commission model, not agents. It became common, still negotiable, because it made sense.
Thank you !!! This is truly by far the best explained.
I am a Realtor. Jason makes perfect sense. Thank you for your insight. I agree 100% on all.
Excellent explanation. Thanks, Jason
Excellent explanation of the current situation. Thank you!
This is amazing. Love hearing his thoughts.
I am with you 150% Jason.
Such a brilliant, straight talk summary - thank you Jason! 😊
Can I also add that this new ruling completely opens the door to sellers being able to discriminate against buyers they don't like. As listing agents, we are required to present all written offers to our sellers. Let's say there is a seller who says no to compensation, but later changes his mind. Maybe he gets 3 offers along the way, but because co-op compensation was not adequate for each of those buyers, the deals do not come together. Seller later receives an offer and agrees to "full" co-op commission. How do we know it wasn't because of how the buyers "sounded" to the seller? Maybe those first three sounded "foreign"... maybe that fourth buyer sounded more like the 'type of person' the seller wanted.... How do we prove seller's mindset was due to fatigue and not blatant discrimination? You can't. Great work Department of Justice!
Excellent video. Thank you for sharing and for being spot on.
Great information from Jason. Thank you so much for your time
Excellent video. Jason is spot on.
I agree with almost everything he said here. My only issue is that he (like most agents) is coming from the point of view that the buyers agent is worth 2.5 to 3% and i think that needs to be tested by the market. This is the first time in history that it has been an open discussion with buyers.
I also agree that there should likely be a national mls and i am unsure of what NAR's future looks like
So many good points and takeaways! Definitely speaking from a consumer first perspective.
Wow, really well said, thank you Jason!!
The best explanation video so far, thank you!!!
Wow, very well said. This is by far the best video out there regarding this subject.
This settlement is the best thing ever for buyers/sellers. 5-6% never made sense and I have experienced the "steering" behavior and I think the real cost to sell a home will finally, finally be realized which is a fixed price < 10k (total) regardless of price.
Excellent points, great video!
Great video. Thank you Jason for clarity. As a loan officer, this helps me out a lot.
Great stuff once again Dave!
Great interview, thanks Dave and Jason. Shared this one, for sure.
GREAT VIDEO!! NAILED IT!
Thank you for the support to realtor question
You forget to mention the fact that Wall St is buying a huge percentage of homes and then turning them into rentals. Also Airbnb.
Spot on Jason
Great explanation I have heard yet.
I think Lenders should have to put on the pre approval if their approval is contingent on the buyer broker compensation being paid by the seller just like they do with seller concessions.
After doing this for 23 years. I don’t see how lenders can provide compensation- he’s right for encouraging sellers agents to provide cooperative comp
I am a lender. Today, you would likely use Seller Credit to offset cash to close. With the extra cash, the buyer could pay. In the future though, I think Buyer representation will be interpreted as a standard closing cost and therefore directly available for Seller Credit use. However, seller pay makes more sense because they have equity to pay more than new buyers.
Awesome take on this! 27:10
1000% correct IMO
Dave Savage!! How I found you I don’t know, I laugh out loud on the sidewalk when Jason spoke on the reason home ownership is hard. Great interview.
Thank you for explaining it the way it really is! Really bad for buyers!
This is an excellent video he is spot on! Also, que the fair housing lawsuits, where buyers claim discrimination because there is no standard across the board i.e. LA offers his golf buddy 3% buyer commission and Tanya down the street he offers 1% or nothing at all. How can the LA prove equality in compensation...they can't!
Great vid.....totally agree
Jason's group handled my VA home loan transaction flawlessly and he speaks the truth in this video.
He is correct 100%
Best video I ever seen about this topic this video so underrated get the word out.
Your thoughts and presentation are right on. Your voice makes the most sense. IMO I can see where prices come down where properties actually linger as a result of buyer getting cold feet, backing out of sales, scared off by a home inspection, schared by cousin Charlie. Buyers with no negotating skills may find themselves in troubled waters more often. And then seeking legal council from an industry that created the problem of buyers not having representation. The legals system and hungry lawyers put a financial roadblock which again, becomes an income stream for lawyers.
AGabillion times YESSSS. Encouraging the sellers to continue to offer the CO-OP. I will encourage this and all our new onboard agents to do so. It’s a new chapter. We Will persevere. 26:26
I see new services popping up to assist homebuyers? Lots of other countries use Real Estate lawyers.
Yes, people pay a la carte for only the services they want and many countries 1-2% is more common for total payouts to get a house sold. People generally find their own houses and then just hook up with a buyer agent for the contract, so fees are cut.
Oddly, many buyers still do this same thing in the US, find their house, work everything out, and then just bring the agent on for the contract….only the agent still gets the big commission unlike other countries.
Thank you for this information
I’m real estate for more than 18 years in Florida.
He admits that the home prices are inflated yet does not admit
The % commission model is therefore inherently also inflated.
EXACTLY what I have said. In addition to DUMP NAR!!!
100%True he knows what he is talking about
He's missing the fact that the buyers will bypass the selling agent and will go right to the listing agent.
So you are encouraging a pledge to do exactly what NAR and several others have just settled for doing. Im not sure that's the best advice, but I guess we will see where this all goes!
Ultimately, both seller and buyer commissions are coming out of the sellers equity as always
💯% Jason! Finally a voice of intense reason 👊🏻💵
Waiting for an answer on whether “Buyer Brokers Protected” can be on the yard sign, individual listing website, etc. I assume it can be since that’s not on the MLS. My broker is supposed to find out at a meeting they are going to soon.
My understanding is that in all marketing can show that Buyer's Agents commissions will be paid. It just can't be in MLS .
smart guy, i agree with jason all the way
Hell yeah!!
These people are delusional. This industry refuses to look inward. They all want to look at lawyers, accountants, and other highly educated individuals. The low bar to become a broker is your problem. Historically low service levels has always been an issue and your industry owns it. Period
I am a CPA and broker in charge .
Couldn’t be more happy with this win for transparency for the public. The cartels are being busted up
The industry is predicated in secrecy and finally the consumer is able to pierce through.
One month in my state to get a brokers license . No hs diploma or GED required
The jig is up
Why
Noone mentions Zillow?
They get all listings & buyers instantly!
The mortgage companies
Should allocate the commission for the buyers broker
That is income
Who got the money pays
Income taxes!
No ?
I’m confused. Go direct through the sellers agent and use a legal attorney for the close. I don’t need a “buy” agent with the resources in today’s market.
It’s gonna tough when there’s multiple offer and listing agent can offer lower commission to competing agents 😅
I read that buyers in Australia can finance buyer commissions thru their mortgage.
Buyers will just go to the listing agent directly. The question is… Will listing agents charge unrepresented buyers a service fee or will there be a stipulation in the listing agreement that the listing broker gets a higher commission from the seller if he/she lists and sells the house to an unrepresented buyer???
listing brokerages will not allow dual agency.. litigation assured... 3rd party companies will emerge to represent buyers.. with showings for a set fee per property visitation and with virtual representation for another set fee... just my 3 cents... the way to go is to own mortgage brokerage and title company and real estate brokerage and insurance agency for efficiency and $
yes > charge a service fee
Please don’t make assumptions. You can’t predict the future.
@@lennyschwartz you have to remember some of th4se arr occupied dwellings. Sellers tend to get very irritated with random strangers coming through their home while they have to step outside during dinner time. Who is verifying the identity of these "buyers" using an app to see an occupied home. Who's checking that they are not criminals just looking to gain easy access to homes to steal things, case the house to come back later, leave hidden cameras or air tags. That would open so many cans of worms. Besides the safety issue, Sellers have a very short fuse for people wasting their time.
@@lennyschwartz some states allow transaction brokerage like Florida. The default position of an agent is transaction brokerage unless a single agency agreement is signed. Meaning the default is no fiduciary duty to either party.
If a buyer goes direct the listing agent is not required to do dial agency. They can help the buyer essentially for free and make the $$ just on the list side....just saying. It's going to happen.
Buying a home for many already seems out of reach due to our nation’s housing affordability crisis. Now, buyers will need to set aside saving up in hiring a Real Estate Buyer’s Agent.
I have deep concern for buyers, especially First Time Home Buyers in low income or for those using VA and FHA loans, that they may not be able to have access to Real Estate Agents if they are not able to afford to hire and pay a Buyer’s Agent. This will create an unfair market.
Please have him back on!
This was a great breakdown with all this click bait and people not knowing what they are talking about. Ricky Carruth did a great job as well.
I said the same thing. Jason, you made excellent points! What piss me off is how NAR wants to make a distinction between Real Estate Agents who are not members of NAR and Real Estate Agent who are, saying that we as REALTORS® holds a higher standard and code of ethics than those real estate agents who are not members.
Jason, do you think NAR will lose a lot of members?
THat is exactly true. To be a member you belong and abide by the Code of Ethics. A non Realtor Real Estate Agent is not required to follow the COE. They can do what they want. How good will that be for our industry? That scares the heck out of me. If you are a member of a golf club you can play golf, if you don't belong you don't play. I don't see any benefit to leaving NAR.