National Association of Realtors to change rules on agent commissions
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- čas přidán 23. 07. 2024
- A powerful real estate trade group has agreed to do away with policies that for decades helped set agent commissions, moving to resolve lawsuits that claim the rules have forced people to pay artificially inflated costs to sell their homes.
Under the terms of the agreement announced Friday, the National Association of Realtors also agreed to pay $418 million to help compensate home sellers across the U.S.
MORE: www.cbs8.com/article/news/nat...
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I've seen ads written by realtors saying the house has 'parkay' floors and the neighborhood is 'quite'. Seriously, a LOT of these people barely have a high school education. Don't get me started on horrid photographs or inability to answer the simplest questions. I've had realtors who were worth their weight in gold and others who should have really gone into another field. If you don't go FSBO, then hire a full timer who answers or returns your calls quicky and is willing to go the extra mile for you, especially in a difficult market.
Everything is negotiable. I have never paid full commission.
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This will affect real estate agents, appraisers, and property managers.
We sold a house in California and had no clue we didn’t have to pay for the buyers agent.
NAR never mandated a set rate and in fact has provided training and guidelines discouraging the practice of agents coercing certain commission rates. While it's been an industry norm, charging a "standard" rate has explicitly been frowned upon.
I feel like all of this is initiated by greed, yes by NAR but also by sellers. The problem is, buyers could be at a disadvantage if representing themselves without agent expertise just to get the house for a lower price.
Without adequate buyer's agent guidance, buyers risk taking on expensive hidden issues or buying into hazardous situations.
I also feel like the true victims in all of this are the newly licensed agents. The single moms who are trying to provide for their children but can’t because of the multiple arbitrary membership fees in order to work.
The only thing this going to cause more lawsuits between buyers and sellers.
Being a realtor is a joke.
@@mmmd3429 that comment leads me to believe that you’ve been traumatized. 🙃
@@timmclarkerealtor Slashed commissions are about to traumatize you. Realtors = parasites.
I sold last year paid both parties 3 percent. The buyers agent was nothing but stressful and were nothing but accommodating to the most ridiculous demands that even the title office questioning her ethics. I bought 5 new construction since 22 I’m now 28. You don’t need a buyers agent for new construction because it’s straight forward and you have a warranty. All you need is your due diligence and an inspector. Pretty much same with a prebuilt.
This is going to encourage buyers to go around agents more and do their own search .
they already do that. With all the websites and such, most of the listings are found by the actual buyers doing their own research.
Until the Buyer get's shafted or has a bad experience this sounds like a good idea-right?
I don't see how this will change anything, realistically. Buyers' agents will just put into contracts that the buyer will owe them the commission at the close of escrow they would normally get, anyway. So in the end, the same exact thing will take place.
You're correct, but that amount can now be negotiated. Where as before, the amount was already set by the seller and could not be changed. It violated anti trust laws and is one of the reasons for the lawsuit.
Not really, as VA loans specifically prohibit buyers from paying commission
As a Realtor, I work with buyers from Pre-qualification to closing, we are available 24/7 for minimum 45 days to a year depending on client's needs. We coordinate loan officers, credit repair, assistance programs, home searches, inspectors, hoa issues, title companies, insurance companies, complete multiple legal documents like sales contracts, amendments, addendums, and it goes on and on, depending on each individual case. Sometimes, the deal doesn't go through for multiple reasons, so we start over with our client. We must take classes and pay dues. This will hurt an already struggling industry, there will be less buyer's which hurts sellers as well. Whoever came up with this idea didn't think it through. Ignorant people have no idea of the complexity of real estate. That's why realtors exist.
This is good for big investors, hedge funds and Wall Street, and bad for consumers and first time home buyers. Less buyers means lower offers for sellers.
After buying and selling 9 properties in California I realized my enemy in real estate business is not IRS, it's those fucking realtors who would get together from both sides work behind seller and buyers back trying to jackup and pump the price for higher commissions.
@723lion After buying and selling 9 properties ... if it's that easy, try doing it yourself? You complain, but you choose to use realtors again and again. Hmm ...
@@susanyoung8059 Most agents are clueless and just want the commission.
so this is good approach to weed out unprofessional realtors
@567307 It hurts independent buyers and realtors; less buyers hurts sellers. It only benefits the Large Wall Street Investors that can scoop in purchasing houses at below market value from sellers that have to sell. Investors keep houses for rent. Home values went up because when sellers were ready to sell, realtors brought buyers that pay for inspections, appraisals, down payments, plus other closing costs; sellers that got equity from house values going up, paid for commissions and their closing costs.
The result is most middle - to low value real estate will be owned by investors, creating a society of renters unable to buy a home.
Big Corporations are eliminating the competition.
This hurts consumers, buyers and sellers. Less buyers, lower sales prices, and longer time. It's great for big investors, hedge funds, and Wall Street; they make lower offers, and sellers usually need to sell.
NAR still hasn't addressed the elephant in the room and part of the reason for these lawsuits in the first place. Seller's agents were getting paid upwards of 20-50k overnight during some sales cycles when multiple offers came in for just putting up a sign in front of the house. These agents are taking a huge chunk of the equity from these homeowners so I suspect we are going to see more changes coming. This current model is not sustainable.
Nobody forces any seller (or buyer) to use an agent. Do FSBO if you don't want to pay an agent. Simple as that. It isn't sustainable to expect people to do a job for less money than they want, either. RE agents are their own bosses. If you don't want to pay their asking commission don't use them. If nobody wants to do it for your number, then don't use an agent.
@@volcrazy89 it is structured to where you are forced to do it because all the agents banned together to avoid houses where the commissions are lower
That is SO far from the truth. Agents did not "ban together" to avoid houses where the commissions were lower. Singular rogue agents may have, but there was never a group effort. There is so much information out there right now. Stop believing everything you read.
In what scenario was a realtor paid $50k to win a bid/sale? Disclosure in some States wasn't required. In MD it's been required to disclose what you're paying % wise to any Realtor.
In the long run companies like Goldman Sachs and other big corporations, like that are going to own all the houses, and America is going to be renting houses only and to own or build property is going to be very very very difficult and ridiculously expensive.
Realtors should get maybe $200-$300 for any sale they are involved in. Kind of like Used car sales people. A percentage of the value of the home is crazy , realtors don't do anything worth that much. With the internet anyone can list their own home. Pay a photographer that also does drone video and hire a home inspector, hire a pest control company to look at the home. have a lawyer look over the sale before it closes. Realtors are just used car sales people, so many don't even know anything about home construction.
😂
Well said..
realtors are as disposable as your personal trainers, hip hop rappers or financial gurus.. they’re 99cents to a dollar nowadays you can find any of them like finding a penny on the ground. They’re everywhere
Over saturated industries.
LOL delusional
Are you crazy? Buyer Realtors handle all the inspections,viewing and showing. It's not a wait and for someone to come by.
"Used car salespeople"! 🤣🤣🤣
Just imagine more 6% towards your dwon payment
Plz explain?
You mean 6% thrown in the garbage because you're not using it for a down payment. House prices of course will not be affected by this. They are based on comparable sales and everyone wants as much money as they can get for their house. Just because they're paying a few thousand dollars less doesn't mean they're willing to give that away
This means I'll be my own agent
Duh.. just make a signed agreement as a buyer agebt
This is all about commissions. So. What is agent worth? What is a hourly rate that an agent is worth? 30-70 an hour? Is agent commission worth more than a nurse, respiratory therapist, pharmacist, pilot, auto mechanic? There is no agent on the planet worth 6% on a 500k house. The commissions need to be based on actual services provided, and never on the price.
Even with the NAR settlement/outcome, it all boils down to this... will realtors be negotiable and workable. WIll they work for a flat fee or maybe even an affordable/reasonable negotiated flat fee? Or will make their 'flat fees' as high as their commission rates are now, and still have major dollar signs rolling up in their eyes. Right now, I still think realtors are only good for is to pump gas, write an unlevel selling listing agreement; and trying to screw over the selling client over. Oh yes, I have been told that if I want to sell my house; I needed to get a selling agent to do that. If so, WHERE( in the law) does it state, please specify, specific chapter(s) and specific verse(s) does the law REQUIRE/Forces me to comply? Cause my view of a realtor(s) is something that is not stated or said on CZcams. They have left a bad taste with me.
Guess what? I've been using buyers agreements for 30 years
But they have not had to pay you out of their own pocket in advance. This is much more than just agreements.
the seller's agent shares their commission they have received from the seller with the buyer's agent. What's the difference?
Buyers will pay more for the house to cover their agents commission. Buyers want a local expert on their side with the biggest investment in their lives.
This is what people think. But realtor do very little and take zero accountability. Been there done that. Hopefully A.I. will replace these Roaches. Buys don't realize how many mortgage payments they have to make to just pay that commission. Realtors are just a middle man we don't need.
@@rbfarrell1 lol..yea right.
@@rbfarrell1You’re obviously the problem 🤡 getting your spelling grammar fixed drone
they just need to take an iPad with them when closing the deals and show it to the client just like a coffee shop does and asks for a tip.
They need to change it. With prices of Homes these days and quick sales 6% to seek and 6% more to buy is ridiculous
The changes will hurt Realtors the most and that is why most are not supporting these changes and complaining. From a seller perspective, if I pay half the fees as the old system I win. If I'm a buyer and now I can negotiate my fees this is a win. And if I can pay a fee to my buying agent and not a commission this will be a bigger WIN. There will be no incentive to show my more expensive homes and also a buyer commission model gives zero incentive for the buying agent to negotiate down the price. Why would they want you to win and make less commission. Decoupling the commissions is a win. Maybe not in the short term. But the pain is worth it in the short term. Decoupling is good for the consumer and bad for Realtors. I care more about the consumer
Who wins? The plaintiffs attorneys!! The actual plaintiffs will receive about $5. Can't even buy a cup of coffee for that.
You're missing the forest for the trees. It will save buyer/seller trillions over the next few decades.
Also, if you want proof this is better for society just see all the real estate agents whining everywhere. Best proof things are heading in the right direction.
@@Omikoshi78 Who is paying you to post all over CZcams on this topic?
Reddit charges 1%. Has for a while
LOL
That should reduce the number of buyers 😂
good point
This is a horrible change
This policy puts home ownership further out of reach. An extra 3% for these all cash investors will be nothing
that's the thing thought...this is forcing agents to not be able to ask for 3% specifically. Ain't noone going to plop down $20,000 to an agent when they can just hop on Redfin or Zillow and find their dream home.
Making the seller pay for your agent is and always has been ridiculous. They are representing the buyer, but the seller pays? Stupid.
You don't even understand the importance of having the seller pay it.
A buyer is not going to pay an agent! This is stupid! The Realtor occupation is done!
Not only most of realtors can't afford rent due to re downturn, but it's about to get a lot worse now. This will be interesting.
For sale by owner is the way to go
That was helpful.
I get sellers' agents, but in today's world buyers' agents are antiquated and most of them are going to get the shaft. Prospective buyers have many different ways of finding listings, and most of the closing process is done with lawyers, town clerks or title companies anyway.
Either one of them is really not needed. When I search for homes I do so on redfin or Zillow. Those are the everyday persons MLS. Ofside from some forms to fill out they are pretty worthless
Realtors are not needed.
Until lawsuits hit for lack of due diligence between parties, bad inspections, it’s banana grabbing in the streets- it’ll be more than the adjusted commissions.
However disruption is inevitable. First 2/3 years will tell if this is good long term.
Bitcoin
Communism at best😅