5 Critical LIES You Must Know About The NAR Settlement
Vložit
- čas přidán 6. 04. 2024
- In Wendy's classic style of cutting through the hype, we dive deep into the NAR settlement, shedding light on the five biggest lies circulating amidst the frenzy. How will these changes affect you as a BUYER or SELLER? Don't miss out on this essential guide to understanding the NAR settlement and navigating through the sea of falsehoods.
Subscribe to stay up to date on every detail and every change of the Dallas housing market, its best neighborhoods, best schools, best entertainment, and most importantly exactly what it’s like buying, selling, and living in DFW Texas.
Looking to meet others moving to Texas? Join our Facebook group and connect with fellow Texans today!
👋 / movetodallastexas
We can help you find your perfect home in Dallas! Fill out our Let's Find Home Questionnaire today!
🏠 www.myontrackrealty.com/youtube
Looking to move to Dallas? Check out our website for everything you need to know!
💻 www.homeinDallasTexas.com
🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹
Looking to BUY or SELL? We can help with that!
Let's Find Home Questionnaire: www.myontrackrealty.com/youtube
📲Call or Text: 214-915-2750
💻 Email: info@myontrackrealty.com
🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹🔹
Ready to learn more?
Subscribe to our channel here! woutube.com/c/homeindalla...
My website: www.homeinDallasTexas.com
Visit our blog page: www.myontrackrealty.com/blog
=========
Preferred Texas Mortgage Partner: www.calebbuczek.com
=========
Stress free moving checklist here: myontrackrealty.com/movingguide
💡Get all your utilities connected at once!
www.utilityconnect.net/homein...
✅ Driver’s license time!: www.txdmv.gov/motorists/new-t...
💵 How much does it cost to buy a home in Texas? Free closing cost guide here!
www.myontrackrealty.com/closi...
🏠 Questions on new construction pricing? Let us get those answers for you.
www.myontrackrealty.com/const...
📖 Free new construction guides
Midlothian www.myontrackrealty.com/midlo...
Mansfield www.myontrackrealty.com/mansf...
Grand Prairie www.myontrackrealty.com/grand...
Waxahachie www.myontrackrealty.com/waxah...
We use the following statistics and data in our videos. We hope they are helpful for you as well!
Best Schools: www.greatschools.org/texas/da...
Neighborhood data: www.niche.com
Census Date: worldpopulationreview.com
Crime Data: www.areavibes.com; www.crimegrade.com, www.neighborhoodscout.com
*All stats, data, house pricing, and anything else mentioned is always subject to change and is provided as an example at the time of this recording* - Zábava
This was the best video out of many i have watched about the settlement. Thank you! Ocala, FL Realtor here.
Thanks! I explained it exactly how I'd want it explained to me! 😂
Best explanation yet. As a Broker, I feel better already. Thanx
Glad it was helpful! ☺️
Hello there! I just wanted to say thank you from a fellow Texas broker! That was great.
Sharon Ketko 🙂
You’re welcome! I put it together exactly the way I would want to learn it! 😂
Very informative. Nice job.
Thanks!
Honestly, (being cheeky) the listing agent should get nothing as they do nothing. Most every listing I see says Buyer or buyers agent must verify EVERYTHING!!! Well my question is what good is the listing agent if they don't VERIFY what they are listing for someone? One Example is Lot Line, The listing agent stands to makes $1000 of dollars in commissions and they can't even guarantee the lot lines.
In the real estate world the saying goes, “he who lists, lasts” because it is much easier to systemize and less time consuming!
It’s the buyers responsibility to verify lot lines through a survey, a survey is the responsibility of the buyer. Technically, a buyer’s lender requires a survey, although the lenders sometimes let this slip because most people are too cheap to get a survey. Since you are the one purchasing and the survey is to the buyer’s benefit, similar to the appraisal, then it’s typically the responsibility of the buyer to pay for the survey. This has nothing to do with an agent’s commission.
Where in the law is that stated, same place as the mandatory 6% sales fees? It's NOT. If you are selling something YOU should be held responsible for what you are actually selling. You don't go to the gas station and expect the gallons to not measure properly from the seller, you don't go to the grocery store to buy food that you are expected to ensure it's been inspected proper before you buy it. etc..etc.. It's just another way the real estate industry has made such a mess of itself.. It wants full on profit and little of the work.
Real Estate Company "Charming House For Sale, add your creative touches" Buyer must verify EVERTHING. Now pay me my commissions!! @@ashdav9980
To be fair, the sellers agent has to hammer the sign down in the front yard
Well I would contend that since the seller is offering something for sale, they should be able to prove what they are selling is worth what they are asking.
Why would a buyer offer full asking price if you can't prove what you are selling? Oh, You THINK the lot lines are here and there so pay me my asking price... But I say, I don't believe the lot lines are where you THINK they are so I value the property as worth less thus my offer will be less.
See my point? @@ashdav9980
I love how buyers will no longer be able to use agents without signing a representation agreement. Most of the time, when they wouldn't sign but eagerly wanted to see properties, they were using multiple agents.
It really does make the buyer seek out quality because they have to commit. The buyer will have to take the time to be more aware of what to look for, be more intentional, more informed and so on!
You will see buyer agent contracts fall by the wayside. No one is going to pay a buyer agent for something they can do on their own.
I sign a contract as a buyer with my agent agreeing to pay him 3%, in the meantime we find a seller agreeing to pay my agent 3%, then what ?
I’m not completely sure I understand your question but from there you buy the house!
@@WendyPannell If I sign a contract to pay my agent, then we find a seller that agrees to pay my agent, can I cancel the contract between myself and my agent ?
@@markme4 The current agreement reads that the buyer's agent will attempt to collect payment from the listing agent first. Only if the listing agent won't pay will the buyer be responsible. Does that make sense? So even if the buyer agrees to pay the agent it can still be collected from the listing agent.
@@WendyPannell I understand but it doesn't make sense, I can see this creating problems, thank you for your reply
Platforms like Zillow and Redfin will ultimately advertise for the listing agent thus eliminate the buyer's agent altogether. Buyers will deal directly with the seller's agent, potentially saving on fees - an outcome the NAR settlement could accelerate.
In my opinion buyers and sellers should pay their agents separately. If a buyer really wants to buy a house I don’t see any reason why a seller should pay the buyer’s agent. If buyer’s wants business they will hunt for potential buyers and show the house to them and take their fee from the buyer. Some agents say if the seller gives the buyers agent a commission then they will bring more buyers, which in my opinion is completely wrong. If I want to buy I want to buy. Normally the buyers approach the agent now with this new practice the buyers agent will look for potential buyers.
So much to unpack there. VA buyers wouldn’t be allowed to have an agent because they’re not allowed to pay them. Something else that comes to mind is many buyers would overpay and be taken advantage of because they couldn’t afford representation. I don’t think the correct solution is to say “Well then they shouldn’t be buying.” Home ownership accomplished correctly does lead to wealth. Leverage is a two-edged sword that should be used cautiously and with professional guidance.
@@WendyPannell I think whoever wants to buy, they are going to buy. The buyer's agent can negotiate the purchase price along with the buyer and the buyer must pay either a flat fee or a % as they agreed upon. Definitely there will be a lot of new agents can step in with a flat fee.
@@WendyPannellCome on Wendy, don't be so dramatic. VA buyers will simply contact the listing agents directly and cut out the buyer agent.
Let me put in my 37yrs experience here. Most buyers are needing some assistance from the seller to close. So any notion of the buyer paying their agent will reduce sales by 75%. This still doesn’t guarantee anyone double ending deals, but it does effectively reduce Realtor commissions. So if sales getting reduced due to lack of buyers, the value of real estate will plummet to the levels buyers have enough money to pay their agents.
2nd piece, the DOJ may not be done with the NAR and the DOJ could tighten down the requirements.
This will take 6mos to 2 years to get the public and Realtors on board.
Will there be fewer Realtors? Probably not.
Will commissions be reduced? Probably
NAR has been moving away from protecting private property rights for a number of years
Interesting insight! What makes you say so?
Economics 101 is still supply and demand. If sellers don’t compensate the buyer agent I believe offers will be lower to compensate for that.
I had a question I follow listings as a hobby. When I see listings I don’t understand why an agent would say that it is a good school district and you see on the same listing it has a rank 2 out of 10. Or other very easily debunked items like spacious lot that is a smallish one. I if I was still looking to buy wouldn’t trust an agent list that to sell my home or help me look for another. 🤔 I just don’t understand why one might do that.
I would make a lower offer to buy a home to account for the new system. If I understand correctly. I am still a bit confused. The buyer pays for the home then the fees come out of the money spent???
Thanks at the end I do understand quite a bit better.
On the school and lot inconsistencies I completely agree! They are focused on the marketing instead of the data being accurate. Kinda drives me crazy!
There are a number of scenarios that come to mind. The first is that the seller pays the commission, the current model doesn’t change. Remember, there is nothing that prevents the seller from paying. (That was one of the lies).
The second scenario is the buyer asks the seller to pay towards the closing costs and uses that to pay the commission.
The third is the buyer increases the purchase price up until the point to where the seller agrees to pay.
Most sellers look at net proceeds so all three of those scenarios have a similar end result. One thing is for sure, buyers will need a Realtor who is a power negotiator! 👊
Awesome! I’m glad it helped!
First of all the settlement hasn’t been settled DOJ still has to review. Lot of rumor that DOJ will make it far more aggressive. Sooo let’s not build entire narratives from a proposed settlement.
Thank you for your comment arm23. How about let’s do, particularly since the DOJ variable did not exist at the time of recording and the settlement was intro’d as proposed. 👍
I appreciate your great intellect, but my eyes glazed over. Did you ever say who got the $418 million? No one has reported this.
Great question! No you didn't miss it. In the video I focused on "practice changes" - how the practice of real estate would be changing. I didn't really get into the 418m. I did a quick google though, and read the following: "NAR will put the sum in a court-controlled trust fund to be paid out over four years. The money will first cover the costs of the plaintiffs’ attorneys’ fees and then be distributed to members of the class. The payment amounts will be determined either through negotiation with the plaintiffs or according to a formula assessing $100 per participant." I got that information from this article: themortgagereports.com/111812/nar-realtor-commissions-settlement
@@WendyPannell thanks!
Wendy, you're awesome! I wish you'd change your mind with working with investors! 😢
cry harder, problem maker😂😅😊
🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡
It’s hard to find a cash flowing instrument in Dallas. Every investor we worked with and invested time into ultimately didn’t buy. 🙁
Be nice! I just called awesome. 🤩😜
@@WendyPannell Lol 😂🤣😆🤣... I'm always nice to you!
At 6:24, I don’t think your presentation is completely accurate; here in California, the buyer-broker agreement can be exclusive, non-exclusive, and/or cancelable with certain limits. The buyer-broker agreement can also be tied to a specific property. License disclosure: California Broker 01375287. Not legal advice; just general background info.
Hi James, thanks for the feedback! Which part of the settlement agreement were you referring to?
Prediction: The buyer will just deal directly with the listing agent. The buyer’s agent will go the way of the dodo 🦤
Interesting insight! Many buyers realize owning a home under the right circumstances can be a wise investment but it can also be a financial disaster. It’s not the same thing as buying a bag of chips at a gas station and the smart buyer knows that, and recognizes the need for support. Too much predatory new construction here in Dallas, too many homes with bad foundation problems. The brutal truth is it’s those who oversimplify that end up in trouble. When you’re in the middle of negotiating, 20k becomes an arbitrary amount. When you’re upside down because you overpaid, 20k is suddenly a very real amount. Smart buyers realize the value of 20k in every light and recognize the need for someone to negotiate fiercely for it.
@@WendyPannellSo, selling agents are not trustworthy?
Both sides can be trustworthy but they have different goals. If a buyer overpays by 50k that is a win for the seller’s agent because it is a win for the seller. The seller’s agent has to be fair and honest but otherwise relentless for the seller. Upside down buyer = win for the seller and win for the seller’s agent.
With new construction the bar is lower. The buyer works with the sales consultant who is not a licensed Realtor, is not accountable to the state real estate commission, and whose only goal is for the buyer to pay as much as they possibly can with as smooth a transaction as possible. If the sales consultant isn’t fair and honest he doesn’t answer to the state because he isn’t licensed by the state
That’s like hiring your wife’s divorce attorney. Plus, the sellers agent won’t represent you for free.
@@watchfull-tq5sy sure, sure..