Realtors Mass QUITTING Over Commissions! NAR Lawsuit Explained!
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- čas přidán 10. 09. 2024
- Large number of Realtors are leaving the Real Estate industry. Here is the NAR Lawsuit explained and why Realtors are leaving the industry.
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A lot of agents got into the market because it was semi easy work. Once the market changes, that separates the pros from the amateurs.
@@Stuntfish nothing easy about this business. NOTHING
@@WesternWashington_RE_Source When did taking a few photos and posting on the MLS become hard? a Child can do this.
@@stumpgrinders5084 I have been a broker for 30 years and believe me there is alot of more to real estate then taking pictures and putting the,m on the MLS. When I got my my lis way back in the day, courses that I had to take were night classes at a college that involved an hour and half ride one way -two nights a week. then s state exam. . WE are licensed by then state and it's required that we take courses for a certain amount of credits every two years and fees that are required to the MLS -Realtor Association at State level -then NRA -at National level as well as joining the MLS ..with yearly dues paid to all -and the beat goes on, Often I deal with Seller (s) who have to sell and it is the hardest thing for them to leave the house they love, I have helped clean properties that I have listed, helped someone pack and move because Seller had no funds and worse ... no family. I could write a novel about what I have done in my real estate career to help Sellers and Buyers not to mention to hear the situations of who, what, where and when, Horrible things that have happened..Obviously you do not have a friend or a family member who sells real estate, as you would have a totally different opinion of and be educated as to exactly what it is we do.
Yes, that's right. They are called soccer moms and house wives.
@@stumpgrinders5084 that’s the selling side. The buying side, which are the ones being screwed, are the ones sending out listings that they find in the MLS, spending their days driving buyers around from house to house. That can also take up to 6 months with no pay. navigate closing like getting inspections out of the way. If they don’t have financing, we’re the ones that make sure they have the right loan office to get them in the program they need. It’s a lot. So you got it all wrong.
I saw agent talk about this in the news two days ago. She goofed up and said the standard rate is 6 percent. Which is the whole reason why this lawsuit happened. There is no standard rate. It’s always been negotiable, but Agents did not disclose this or lied about standard rate.
@@Uwolz but attorneys are allowed to have a standard rate of 40%. Why is that? Why don’t attorneys negotiate and how come your doctor doesn’t negotiate when you want surgery but the doctor wants to get paid like 200 grand to do surgery on your body, why doesn’t he negotiate and come down on his fee?
I've been buying and selling since 1993 and I have never had an agent agree to change the 6% fee. They can claim it's "negotiatble" all the want, but they never do. The only deviation was from an agent that we had done a lot of business with and she gave us her discount.
Consumers are so naive and incapable when it comes to negotiating. Everything was and is negotiable.
@@joycebarnett6035 they do. You can shop and find one that fits your needs!
@@Uwolz Exactly !! Only Now Are We Hearing “ It’s Always Been Negotiable “. What Agent Has Gone To Their Clint And Say “ Yea Know My Commission Is Negotiable”. Zero Have Done That ,
Every other year real estate agents are crying like babies.
🤦🏼♂️
My brother's friend has been working on selling my house since April. We're finally slated to close next month. Otherwise he's already burnt TFO. Ready to call it quits and go do something else but he wants to at least have that 1 sell under his belt before he does. He hasn't had a paycheck since January living off savings and whatever his fiance (who just gave birth) brings in. At this point he's like a stay at home dad.
This is exactly what happens to most agents. So, for people to say we are over paid. It takes years of this, before getting over paid.
This comment needs more visibility!!!
@@JeremyAKnight Not just that but he's splitting commission with the more experienced agent who's carrying him, so he's only getting 1.75% gross out of the whole deal. On a side conversation we came to the conclusion he would've been making more as a part-time entry level Walmart employee had he started back on April at signing, cause by the time he gets his commission sometime in SEP the hours he's spent doing grunt work like open houses and out of pocket daily expenses won't even amount to basic minimum wage cumulatively. It's comparable to an unpaid internship.
I once thought about becoming a realtor as well but once I looked into the starting costs and that "2 year gatekeeping humiliation ritual under a broker firm" before you can go solo I decided I'll just stick to owning diversified REITs if I want any market exposure to real estate.
@@reja1309 your comment doesn’t make sense.
I'm a realtor too and I agree with the part about more lawsuits around unrepresented buyers. It is not in anyone's best interest to entertain those offers and I feel comfortable telling my clients that. It is our fiduciary duty to the sellers to tell them all the info they need to get a transaction through to closing. We all know the stats/ failure rate dealing with unrepresented buyers. It will be interesting to see how many people actually try to negotiate directly with listing agents.
@@jerrybuffington6473 it’s a mess. Dealing with a FSBO now and he’s a nightmare and totally out of his realm. People think they can just use an attorney, well attorneys come in AFTER the negotiations are done, not before.
Some unrepresented buyers have more experience in real estate, better education and more cash than some arrogant part-time agent/housewife with high school diploma. People like you are not that important or irreplaceable.
@@jerrybuffington6473 well what I would do is if I’m the listing agent somebody comes in and they’re gonna represent themselves. I’m going to do my own disclosure that discloses that their representing themselves and that they’re gonna release all liability for them to come after me because what they’re gonna do is they’re going to not know how to represent themselves and then they’re gonna fail at all kinds of stuff and then what they’re gonna do is turn around and wanna try to sue the listing agent and the seller because of their own incompetence, so we need to have them sign disclosures stating they are taking all the liability on themselves and and I’m gonna put on the disclosure that they are too seek legal advice from a real estate attorney and to show all forms to their real estate attorney that way they’re gonna have to pay a real estate attorneys what they’re gonna have to do and if they don’t and something goes wrong, then you know what I’m off the hook.
I am only going to consider buying a house in which the seller pays for both agents like I had to do when I sold my house. It is not fair to pay twice for the buyer agent.
@@DEG1985 then the seller just passes on your offer and accepts the offer from another buyer
Good luck. Someone is going to outbid you and pay it. You’ll be stuck with less desirable properties
@@belikenick2 It is not true, I have bought in the past without using realtors and I have also sold without any problem. That's why I've decided to do the same thing again.
@@DEG1985 when you sell. Do you enjoy paying for both? do you truly feel it’s fair? if so why?
About 80-90% of sellers will offer commission to buyers agents. Just find the one who does. Especially in a buyers’ market
2 to 2.5% commission equates to a big check on the new home values. Home pricing is completely out of control. One of the homes I lived in as a teen cost 49k in 1980. Same house today 600k. Same house. That's crazy.
that was 44 years ago, you could go to the movies for $3.50
@scottwallacejr cheaper than that ...$1 shows grew up on them
That is the value of dollars going down the hill. In order keep your money at the same value is real estate!
@@scottwallacejr that's a market adjustment of greed.
@@scottwallacejr A movie ticket today costs $18 that's roughly 5 times up however the house he mentioned is up 12 times do you get the asymmetrical increase by any metric the housing market is overpriced and unsustainable. I used to invest in properties all my life I sold everything and I haven't seen a deal that makes sense or can yield a reasonable return for yeaes.
I don't think the lawsuit is the reason the pizza delivery guy who was moonlighting as a real estate agent on the side is now back to full time pizza delivery.
I see a lot of teachers back to teaching this year…
@@JeremyAKnight Yeah.. happens every time prices go crazy. A bunch of jokers become RE agents - which is what ends up giving agents a bad rep. It's far too easy to become a RE agent IMO.
I agree. You see more agents at the top making more.
@@JeremyAKnight And that's a good thing. We need teachers! Not to mention there's regular pay, health insurance, & retirement.
@@dancox3251 there’s also a strong correlation between onlyfans creators and real estate agents. Those seem to overlap quite extensively.
98% of buyers and sellers were perfectly content the way compensation was distributed. These lawsuits were prompted by 2% of the sellers - those selling multi-million dollar homes who are type AAA+++ who think of every business transaction as a win-lose scenario in which they are the winner. Selling a home should be a win-win scenario. The 2% in selling these high value homes do not believe in the win-win. And by the way, it has always been the BUYER who pays all the commission fees via the purchase price!
You are absolutely correct! Especially the fact the buyer pays all the fees.
Of course. Most agents are horrible. Without the lie "seller pays my commission" there is no way most agents can ever trick a buyer into giving them $15,000+ for doing almost nothing but giving crap advice.
What lie?? It has been a general standard of practice that the seller pays the listing agent a commission which the listing agent shares with the buyers agent. The seller and listing agent agree at listing time how much of the commission is offered to the buyers agent via the MLS.
@@JimJones4LifeMLS are no longer allowed to disclose buyers agent commissions
Spot On !!
I think you guys are waaaaay off.. I don’t think buyers will want to pay a dime. I think they will ultimate just go through listing agent. And ask listing agent to present offer.. they will find lawyers or someone to help them write the offer..
I have been in real estate x20 years I believe I’m worth a commission but I think they have been too high for tooo long..
Except the buyer has no one making sure they are ok. What happens when the buyer gets screwed? We are going to see a lot of hurt buyers by this. You can think I’m off. That’s fine, yet I’ve been representing buyers and sellers for 10 years. I’ve seen people purposefully try to break the law.
Use an agent, or don’t. Those that do will be less likely to lose money or get sued.
Buyers will go direct to the listing agent. I expect there will be lawsuits over dealing with unrepresented buyers. More fun to come. But hopefully listing agents can make 40-50% more money in the next few years. It has never been better to be a listing agent.
Its only getting harder because most agents are scared about disclosing to the seller they are paying thousands to the buyers agent.
Fairpoint. Here is how I would explain it to most clients. When you have other listings, they’re offering to pay a buyer agent fee. And you don’t. You’ve incentivize buyers to go to those listings over your listings. Secondly, the likelihood of us being sued is drastically higher when someone is unrepresented. Meaning they will feel that they got screwed, they will not understand the process. And it is not our job to explain the process to them. This is why a lot of unrepresentative buyers end up suing the seller and the agent at the end. Also, if you’re not offering the fee, the buyer will have to come up with that fee. Most buyers right now are looking at paying 5 to 10% down and now you’ve added another barrier where they cannot buy your home. So there’s many factors that would go into it.
@@JeremyAKnight But you've just intonated that you or a Listing agent must ensure to coerce their client to make sure they understand they pay for play, otherwise their home will not sell. That client may very well ask what the heck they are hiring you for if it is all about the Buyer's agent. Let's face it and keep it real, big red-shark-fin-estate or the Zz-pillow-estate companies are chomping at the bit and offering 1% already. They can do this because they're tech driven and have economies of scale comparative advantages. If independent agents don't get smart real quick, they will be left in the dust. At least as far as average home sales go. There will always be a market for Boutique high-end or unique property sales, but not for the run of mill cookie cutter homes, those will be the domain of the big tech real estate companies.
@@JeremyAKnight I started as an agent in 2005. It was the norm, and a line item in our listing agreement, to discuss what the buyer's agent was being offered to the seller when filling out the listing agreement. Has this not been the norm in TX?
Since the internet, I have found my last four houses myself online which included driving around without an agent so I can check out the neighborhoods. This is how many people do it now I don't want to waste time with an agent driving them around and feeling pressure or obligation.
@@michgo4226 finding the house is the easiest part of the transaction
You probably lost in negotiations with seller without knowing comparable sales. Zillow has crappy numbers so if you went by Zillow you likely overpaid
I wouldn’t mind seeing the realtors leaving in my area. They are basically worthless.
Why do you say that? So many agents spend time in their communities. Donating time and energy to the people around them. And you don’t think they do anything?
@@JeremyAKnight what other job has low entry barriers and has the potential to earn $120k-($12k per transaction, 10 transactions per year) gross? I realize most realtors now lucky to have 3 or 4 per year now but 10 transactions was average from 2020 to 2022.
@@mapguy32 here’s where you fail to understand what it’s like to be in this industry. Making 120 grand on paper is not making 120 grand. I have so many agents to tell me they want to make $100,000 a year. At the end of the day after marketing cost after paying for clients to get clients after everything they’re flat broke. that is what most people just don’t understand.
It's optional to use a realtor. If they are worthless to you, don't use them. That simple. I find it funny that you take the time to comment on a real estate video just to say agents are worthless.
I've noticed you repeat, or copy paste this comment allot. Are you a RE agent?@@jerrybuffington6473
It's the buyers agent that writes up the offer and presents the offer, counters, disclosures, meets with the inspectors etc. - the listing agent hangs a lock box on the door, enters the property in the MLS, does the photography. Why would anyone think its the Selling Agent that does all the work!
There’s a lot more to it than that. Way more costs than you put into that. I love when agents say they want to make $100k. They make it, but expenses are 75% of that $100k. And they end up broke. That’s why they don’t make it past the first year.
@@JeremyAKnightit’s unfortunate that so many people have left the selling of their home to a friend of a friend who is not really in the business…because this is what people think we do…I see why people hate us, because this is what so many people see and this is their experience.
I like to take a more aggressive approach to marketing and selling the property. Calling the neighbors, calling every agent that brought a buyer in the last year to a house sold in a 2 mile radius, running targeted fb ads, etc etc..but unfortunately most people just get the experience of a person that’s sorta in the industry and doesn’t know what they are doing and all they do is hire a photographer (maybe) and then post it on the mps and that’s it…like you just trying to improve our image one deal at a time.
@@JeremyAKnight What else do sellers' agents do?
@@user-Jab1000 Listing agents front the costs to make the real estate inventory what it is. All this has to be done as a business professional as well as a professional marketer as well as a public servant fielding calls and leads that can take years to pan out. Agents are real people that give their lives to be a part of the community as well as try to earn business and eventually close business. Over all for most this is a long road to a payday.
@@haroldmccrayrealestatebrok6352 Hm. The question was what do listing agents do in a house sale transaction? What cost do you guys put up "to make the inventory what it is?" If home owners don't want to sell, how do you have any inventory? "Public servants" etc etc. Nothing you wrote makes any sense. When trying to list your house for sale, agents acts as if they're the ones who own that house, not the other way around. They dictate you, the home owner. That's crazy. And you guys have a monopoly on the listing sites (e.g., MLS, something else that shouldn't happen. If you guys provide such a "service" you would accept the competition, not to force people to go through an agent or else. Frankly speaking, agents bring zero value in a home sale transaction, and they're nothing more than a hinderance.
I was at an open house this weekend. 30+ parties, just one buyers agent. Talked with the listing agent and he said "I will be happy to write an offer for anyone".... That's how it should work
Not all states have dual agency. So in Texas, I cannot represent both the buyer and the seller. Which means the buyer would be unrepresented. That takes the liability of being sued both me and the seller to a whole Nother level post close. This is something that people just don’t understand.
My point is - one person was with a buyers broker, 29 other parties were not. Folks do not see the value or can't afford it. If I were in this industry, I would focus on the listing side. The buy side is going the way of travel agents
@@ld45678 just because they didn’t have realtors with them does not mean they weren’t represented by a realtor. I have so many people come through open houses that are represented but don’t bring their agents. I’m not necessarily disagreeing with you either. I’m just letting you know that most states don’t allow dual agency.
My E&O insurance doesn't cover my transaction if the seller is paying ZERO commission to buyers. They aren't allowed unless they collect a fee from the buyers. And, as stated above, many states don't allow it.
@@gilborealty interesting. What state are you in?
Wholesalers. Have also ruined the industry for professional services, it's a very bad and shady part of real estate
I love how Agent Haters watch real estate agent produced content that took time and money to produce and yet complain that we do nothing. 😂
The issue is the standard 3% commission is completely arbitrary and far higher than the work justifies. Commission compression is coming and will likely settle around 1.5% - 2%.
Agent Commissions have always been negotiable.
@@br2613 I appreciate and respect your perspective however, 'commission compression' does not exist in any other industry in the world. Personally I think Lawyers could use some compression. lol. It amazes me that only in this industry do customers feel entitled to a portion of your commission as a result of working for them or the right to pay you 0 for your work and efforts. Crazy. Honestly feel that this lawsuit was simply an attack on home ownership and taking out the buyer's agent was phase 1. Let the Hunger Games begin!
Most don’t care about clients. Had to deal with many being in the mold business on Hilton Head. Today is a good day😀
These new rules hurt the consumer. Especially the Buyers and First Time Home Buyers. But also the Sellers. Their population of potential buyers just got significantly smaller.
Will there be more buyers forgoing a buyer realtor and going directly to the sellers realtor? And if so, will a buyer still have to pay a fee to anyone ? Nowadays , a majority of buyers find their own house online and meet the realtor at the prospective home . Although buyer realtors unlock doors and negotiate the buyer is well aware of what they are willing to pay. There is also steering on the buyer side as well because the higher the price the more commission the buyer makes .
Pretty simple:
Buyers Contract -
Option 1) If seller is offering full amount or more of pre agreed compensation to between agent and buyer then agent gets paid at no out of pocket cost to buyer.
Option 2) Sellers agent is offering some of the pre agreed compensation to buyers agent but not in full, the buyer will have to fulfill the remaining agreed amount to the buyers agent at closing. Before talking about incentives or negotiation with the seller, if possible.
Option 3) Seller is offering no buyers agent compensation and buyer will have to compensate to the buyers agent 100% the pre agreed upon amount.
It’s a free market. Called Capitalism. You can charge any fee you want. Determine the value based upon what the market agrees.
Correct. It will take some buyers off the board. And could create a barrier to home ownership. While people think I’m all about selling homes. I’m more about creating wealth for people using home ownership.
Im so glad that you are being honest. Most real estate agents that I talked to in Austin just say like "hey it's always been that way" or that "oh its negotiable." And what bugs me is that I feel like the conversation is not transparent.
I say to those agents, I will not work with because thanks to the internet, I understand I'm more of a savvy buyer than ever before.@@JeremyAKnight
Buyers can hire a lawyer to represent them.. OR pay a flat fee to broker ..
Lawyer will charge a lot and not help with the nitty gritty. But, do what’s best for you.
I disagree.. 500k home.. say they charge 3-4K. Carry it through.. vs14-15k
Or
Hire buyer broker.. - pay them 1%
.. for 20 hours
approx of work.
That’s $250 an hour.
More than GP’s make..
Just an opinion..
Write offer-negotiate.. 6 hours
Deal w inspection issues 4 hours
Talk to lender
Title company
Misc. 5 hours
Walk thru. 1 hr
. Go to closing. (By choice) 1 hr
..
@@thescoop50 20 hours? Bahaha. No. I’m going to start charging hourly. Just like a lawyer. I’m going to make way more.
@@thescoop50 as far as legality is concerned and closing the deal, I am sure a lawyer can handle it. However what the lawyer will not do (that isn't an re agent) is show you several homes or do market analysis on each home nor probably have the expertise of a dedicated Buyer's agent. FYI, there are lawyers that transition to doing real estate sales exclusively and they get paid as much as any other experienced agent by commission. But I agree, this a shake up and we've yet to see where the chips will land.
Not even a realistic list of duties/costs.
To get to the offer can and usually is a month of more of work. I don’t need to spell that all out for you as it’s too extensive-but the cost of doing business even to the point of contract is a lot. And the list you made of duties and time involved is not accurate.
But you do you-asked an attorney for help.
I didn't know that the 6% commission was negotiable wen I sold my house in 2015. I wasn't informed by my sellers agent and I paid for both my agent and the buyers agent.😮
Why RE agents is the only job where people think agents need to work for free nobody in their right mind will work for free and also people don’t respect RE Agents 🤦🤦🤦🤦
The NAR lawsuit is a psyop in place to cause anxiety
A large number of agents don't do much to earn respect. And unfortunately the increasingly smaller majority of good ones suffer for it.
@@jeffspencer6974 Never knew agents worked for consumers’ respect. Agents’ jobs are to sell homes to buyers and sellers according state real estate and consumer protection laws.
As an agent in the Philly area, I am happy about the changes. It’s making listing presentation’s easier because they feel like they are paying me less and just helping the buyer out. We are allowed to advertise a concession, so going to be doing that. As a buyers agent, just explaining that every offer we make will request covering the commission. They may not offer, but you can always request it with the contract.
I never used a buyer's agent. For many years there were only listing agents. It worked just fine. I'm 82. I made a number of transactions that way.
Yea the listing agent got all the 6% commission 😅. And you were not represented back then.
@user-py7hg1eb5m I only used a realtor at all in 2 transactions out of many
I alway sold my own houses and never used a realtor. When I purchased zi only dealt with sellers directly. If they had given an exclusive listing to a realtor that was on them to pay. IfI was satisfied with the price I didn't care what they did with the proceeds. Sometimes they had to pay a realtor sometimes not
On 3 occasions a bought a new build from a custom builder who was also realtor. In each of those instances they only paid their broker a flat fee of a few hundred dollars. Realtorchave NEVER been worth their money. That's whey their business model has always been to restrict access to information and then sell that access.
If I am a buyer, I am going to go Direct just as I would at an open house. I have done it before and it worked out fine. I realize some States you can't do that and that should change. Buyer's agents just need to have a sell sheet showing what they charge per hour to show a house, what they would charge to do the negotiating, what they would charge to schedule the inspection. And buyer can choose where they need the help the help
@@michgo4226 that’s like going into a trial
With the same attorney for both sides
lol.
Can a buyer go directly to the seller and bypass the buyer realtor?
I was a realtor in north Dallas for 2 years. Learn a lot, but also met a lot of money hungry, steering agents. All I have left now is this sweet profile picture lol.
Jeremy, I’ll be calling you when me and my partner decided to relocate to Austin.
There’s definitely a lot of bad eggs. I’ll be ready for your call.
A seller who is paying the listing agent 6% and offering out $0 compensation to a buyer's agent doesn't fully understand that they are hurting themselves. This has future lawsuits written all over it. It's bad enough that there is really no way to check the validity of so called "highest and best" bidding wars, and now the buyer's are going to fork over even more money in order to close on a grossly overpriced home today?
Don’t like the rules just do another job
Making lots of excuses for an outrageous commission for doing so little of actual work as most buyer/sellers are a lot more doing the work themselves.
Correct. I've sold multiple homes. Each time, the "broker" did almost nothing, but was happy to collect a commission.
I guess the same can be said for the attorneys....I got charged $75 just for them to respond to an email. I guess they are next on the DOJ radar.
Then do it yourself. That has always been an option. Why are you even taking the time to watch real estate videos and comment?
@@jerrybuffington6473 with this kind of response, if you are a realtor you are not going to go very far in this profession!
@@mistafrank31 attorneys as a comparison? You're kidding right?
You nailed it. When has the federal government ever made things more efficient/cheaper? When do Feds address the actual problem? They are trying to drop home prices on the backs of the real estate industry.
I'm glad I chose a real job
Real estate will get better once the "broker" role phases out. Markets work better without the middle man.
Are the lenders going to finance buyer agent?
A seller has the option to sell the home without an agent.
How the heck the government going to regulate how people get paid in this fashion.
I don’t see a world where listing agents will still continue to be able to charge 5-6% and then get offers from
Buyers asking the seller for a 2-3% credit to pay the buyers broker. Some brokerages aren’t even doing broker to broker compensation period any longer. And this is going to cause a lot of confusion in the marketplace where some agents are still out there trying to negotiate the list side fee only at 6% and others at 3%.
Going to be a lot of confusion.
@@JeremyAKnight Go to a flat fee and that will solve the confusion immediately for buyers, sellers and brokers.
@@steveludwig4200 unfortunately that doesn’t work. There are many flat fee companies and most of them go out of business. It’s just not sustainable to run.
Your going to see alot of issues that were never thought of with these new rule changes. It won't be good for anyone including the agent, buyer or seller.
☝️☝️☝️
I agree with what you say. BACs not offered in mls will intimidate many buyer's agents and they will exit the business. I also think that going forward listing agents will make less per deal, will work harder, but will ultimately make more money in the end as there will be less people in the business.
About time when you hire somebody for services you pay that person for said Services. Surprised it took this long.
Bullish on rdfn stock for sure.
I wouldn’t be. They are going to get hit with this. Remember, their model does rely on deals closing.
@@JeremyAKnight short term I agree. The cyclically is what it is.
But if agents are leaving the business for good then overall sales could even decline and Redfin could see growth due to share of total. No industry is immune to technology and the changing wants of customers
2:00 BINGO - marketing costs are huge for agents and we are NOT talking about marketing homes. The biggest cost for brokers ad agent is for marketing themselves. Not just in ads but also in training. 99% of training brokers and agents get is for marketing themselves. How do you get a buyer to hand over $15,000+ for doing almost nothing? HEAVY MARKETING!
Yup 35% goes to taxes, agents need health insurance, a nice car, phone, etc... None of these costs benefits the buyer. A more efficient system is for the seller or the seller's agent to unlock a house for a showing. Buyers don't even like the seller to be present.
Agents are not needed in any way and in many cases do great harm to buyers and sellers. Nearly all agents trying to get a listing inflates the price they claim "they" can get for the seller. Two lies, the inflated price and that they have any control what the final price will be. I hear agents all the time give incorrect answers on zoning and building codes for which they have zero training.
Houses could be $30k less without agents.
The costs are so high and no one understands that.
@@guineapigzed that’s what you see on TV. That’s not reality
Wow, i feel for the realtors that went full time and only getting one sale a year. Didnt realize the numbers til now
Same.
Shouldn’t the fees reflect amount of work an agent puts in? For example, an agent may spend several months with a buyer to find a home and get paid x%. In another case, a buyer may find a house on Redfin and contact an agent to buy that house. The fees should be different in both those cases based on the amount of time/work the agent put in, right?
Let me ask you a question. If an agent gets paid at closing. And has to work seven months with a client. Do you think that they should be charging the entire time? So in a normal job if you’re doing what you’re saying. And paying pretty much hourly. I would be able to charge you the entire time all the way up until closing. I have many times where this happens with someone takes months and months and months and never buys. That’s why it’s a 3% Based on no matter the amount of time. Because I get screwed so many times by Buyers not buying and wasting time. So the question should be should I charge them for my time? Even if they don’t buy home? I’m using voice to write this as a drive to an appointment.
@@JeremyAKnight absolutely you should because your time will always be wasted when it is given for free. Once you have people paying for time, they are much more careful with it. People will pay to go to the best agents. Under the current model, good buyers are paying for the faults of others. Paying for time incentivized all parties in the right way
Agree agents should get pay. However if I'm selling a home for 500k and I have a mortgage of 300k. Agents should only get commission on the differences "200k" not on the 500k sale.
💯
Why would they get paid for the difference?
The difference only represents your balance completed on the home.
They have nothing to do with that.
They're handling a home worth $500k not a 200k so far balanced home.
That's like a buyer saying, since you have a mortgage on the home and your input on it is only 200k, I should buy your home at no more than 200k.
Is the realtor and the buyer looking at a 500k home, yes or no?
Flat fee for services.
@@mightydeathlash2867 you are delusional... that's a really dumb analogy
I Completely agreed with everything that you all stated. It just seems like comon sense and the Domingo effects it will have on agents, buyers, seller and the economy. Why can’t everyone else see this?!!
Nice job! We have been a real estate team for 20 years and everything you have said is spot on! Concord, MA real estate
I do not mind paying BOTH agents commission…. But 5 & 6% is toooop tooo high!!!
Though it was always negotiated, nobody wanted to sell my home under 6%. I was able to find an agent who did it for 5% because she was desperate. She never told me that I wasn’t obliged to pay buyer agent, i was basically forced.
I see transactions of FSBO without agents fall apart because no one was there to guide and make the closing happen. Agent make closings happen and everyone is happy.
Yes it is/was "negotiable", but I guarantee you if I said 2.5% in the MLS listing, I'd not be able to negotiate 2.0% later should an offer come in.
Right. That’s called a bait and switch.
It was negotiated at the time you agreed with your listing agent what you would offer the buyer's agent to bring their buyer to your sale.
@@mommom3172 Yes and only at that time. With the changes, technically it can be negotiable at any point in the process.
The American dream is dead. It's now the Blackrock nightmare.
☝️
What will happen if you buy the property straight through the listing agent?
Margin compression on fees are way over due in this industry. Sellers and going to still be willing to pay to market the sale of their home. Buyers are not going to be willing to pay a percentage to pick a home off an internet listing. The buy side will ultimately go to a flat fee model, especially on the average priced median home. The residential real estate business has officially changed. This is the last sales job in America that was way overdue for commission reform. The time is now.
The spirit of the lawsuit as I understand it as of 8/9/2024, is that the Seller should not negotiate Buyer agent compensation at all or insinuate it. If Listing agents continue to beat around the bush about massaging the Seller to accept that essentially nothing has changed, that they should be prepared to pay for Buyer agent representation, it would be a betrayal of the spirit of this settlement. I believe listing agents could potentially open themselves up to a similar lawsuit individually since it can come across as the Listing agent advocating to negotiate a mandatory Buyers agent fee, exactly what we are supposed NOT to do. These are my personal opinions, I am exclusively speaking for myself and I am not a lawyer.
Buyers and their agent of choice need to independently negotiate their fees. That's how it makes sense.
Spirit and unintended consequences. I’m looking at the unintended consequences.
The Brokers are the ones who are really gonna get squeezed. Paying a third to a Broker who doesn’t supply leads and REAL training, isn’t worth their cut.
Im a sales rep in a different industry...i get it....commissions is always negotiable in any industry....customers looking n find there own house maybe a little cheaper on the commission check....but if im selling the house for u ...full commission because im doing all of the work...trying to get that house off the market for u....
There are plenty of listing agents willing to work for less than 3%, if you pay 3% to listing agent you can, but know you are overpaying.
You are right! Buyers are going to file lawsuits for being "taken advantage of" when they are not represented. I laugh when I see the disclosures. If you have ever worked with attorneys, they love a "little" document that they can poke a little hole in and POOF! Iit's gone! Big hole Big settlement.
What no one seems to say is this (above) is how we got co-brokering . Stupid!! We just stepped back 40 years.
One if my listings is closing tomorrow, buyers have no agent. Then, one of my listings has been on the market for 3 hours today I have two showings personally tomorrow both from Internet calls. Not ideal. !!!!!!!!
Agreed!
@@JeremyAKnight how many cases do you think a lawyer will take if a small company does not have E&0. Not enough money for them, nothing much to take. Maybe buyers will represent themselves. I am still wondering to be straight up transactional or sellers agent with the buyer signing a non representation agreement. Everyone is talking about commission and rule changes but I have not seen anything on agency law to be followed. In Florida we cant work for both sides so have the transactional agent as a facilitator to minimize lawsuits. No one is talking bout how in my area 99% of listing agent companies designate all their agents as transactional agents by default, unless we get something signed saying otherwise. All those listing agents that were sharing commission with buyers agents were most of the time not even a sellers agent but transaction, facilitating the deal, and the agent bringing the buyer was also transactional, so the seller wasnt paying the buyers agent at all. On the HUD it reflected the seller agreed to pay the expense of having the transaction completed and closed.
Commission was never negotiable. Either pay ir you don’t get on mls
no way a listing agent is going to get paid 6%. The listing agent's is responsible to the seller-you should not be telling the buyer what the commission is. The buyer can negotiate this put it in the contract.
Some rules of the game have changed. It’s time to adapt and survive. What has not changed is the fact that the buyer is still the one bringing in the money to buy and pay for any negotiated compensation structure. Even the sellers themselves are also buyers in their next RE transaction. So yes the government has given more red tape to the industry but this has been going on for decades now with all those other additional forms, disclosures and addendums depending on the state. So time to prove your worth, always put the client first and protect their interest and you will see returning business. You must breath eat, drink, sleep, RE and strive to be better in your field! Do not be mediocre or pessimistic. Do not pay attention to those who criticize your profession out of envy or plain ignorance. Go help your next client buy and sell and your value will show!
I think this will weed out the good vs the bad realtors. I haven’t had good luck recently. Finding that most want to do the minimum work for the most pay.
That’s probably every industry and Covid probably made it worse.
Real estate agents should be hourly like every other profession
Does that mean we can charge for you not closing? Then I would be in.
Every other profession is paid hourly?What are you saying
This was very informative, honestly wish I had seen this a week or two ago.. but as homes get more expensive the % commission obviously gets more important. By my recollection, as a seller the % fee is one line item on the listing contract and doesn't show itemization about how much goes to the selling/buying agents. If this lawsuit brings more awareness to that itemization on the seller side, I think it's a good thing especially as previously mentioned, prices keep climbing & climbing. Also, big eye roll for mention of "late stage capitalism" 😂
Haha. From where I’m standing. I think it’s good to have more disclosures on where and how the money is paid. The thing that isn’t good. It removing that from the listing online. Now a buyer has no idea if they have to pay or not. And, let’s say they do have to pay. It will limit the amount of buyers that can actually buy. So, it could be a larger negative than a positive. Potentially.
@@EdBball99 Minnesota DID disclose that in the listing contract… showed exactly how much we were paying the buyers broker..
It ought to be reallly interesting. Sellers can’t sell without buyers so it would only make sense to include the buyer’s agent commission. Most buyers can barely afford a home and now this. Sad.
Correct
Discount brokers been around for 40 years
Business models like By Owner long gone
Redfin popped up during the Buyer Agent fiasco 20 years ago
Many agents will leave and ethics will decline with everything going underground. Terrible policy, especially on low end starter homes.
When i started my portfolio I did use an agent but ironically enough.....i found the homes myself. If one is looking for a new home they dont just tell an agent what they are looking for and then sit back and wait....they look at zillow. Chances are the buyer is actively looking and driving by the homes they like so ...what does a re agent do? Oh ...they let you in and before you get there they look up all the vital stats on the property and area so they can put on a show for you.
For selling...The contracts aren't even that hard but I learned early on that i was willing to pay 1000 for contracts and setting up closing.....i didnt even request her be at closing when i sold.
You guys have allot of really stupid professional fees and continued education requirements so i dont expect you to not make money. I figure 1.5% on both ends is sufficient. Ive only managed 4% to date but i stopped buying once prices skyrocketed. The next cyclical bust is upon us so ill be buying soon.
Not every buyer is you. Not every buyer has experience or the time. This mentality will send a lot of people to get very screwed.
I think we need to do whatever it takes to stop allowing the syndication of our listing information and keep it local again. We have been pushed around and sold out one too many times over a succession of year and agents need to take our industry back. They call it progress and we all rolled with it because as a Realtor, you follow the rules. These are not laws by the way, all this change, its NAR rules to be followed. If you are a member. You do realize there would be no zillow for you to go find houses on if they were not given free access to an actual licensed agent's efforts, the one who doesnt do anything???? Just think, zillow and other parasite extortionists wont exist anymore, and then people will see our Value Proposition, words people keep parroting for lack of some substantial direction, not judged unfairly by people with limited experience. I have had the pleasure of selling houses before the internet was even used, have closed many transactions lost count years ago, so I do have a broad experience and a long list of problems that I absolutely see as likely, and after all this time working I know there is a whole list of new things I never could of thought of, challenges to be overcome. But I will be paid fairly for my skills. I also ask myself who wanted to take NAR out, weaken their lobbying power, and why did NAR sell us out pretty much with lame excuses of "taking out the future insecurity". Why did they roll over so fast and miserably without any kind of fight, just showed up in court, weaker than a brand new and overworked public defender. I can make good guesses, and the biggest one will be your direct greedy competition as an investor so you are probably next eventually, empires to keep building you know.
@@JeremyAKnight How would one get screwed? The obvious is a detailed inspection, an appraisal and title work...the rest is the price. You can't go wrong and an agent offers nothing but what....scheduling the events? I've purchased quite a few properties and, other than opening the lock box on the door and scheduling things ....I just see no real value in them. It's the same as the car purchase...there's that silly salesman who really has no other job but to let you drive, have the inspection done on your trade and take your offer right over to the manager. He has no real say but creates a cushion between you and the actual seller and then....it's passed off to finance and alas....that lil salesman will pop up again, on que, with the keys to your new car and act as if he really did something. I just don't see the value add in either of the two positions.
@@johngatsby1473 do you ask the agent for comps? Do you ask the agent to write a contract? If so, that contract is set to protect you. How it’s written is put together to protect you.
The problem is most sellers and most buyers don’t know what they don’t know and will tank a deal.
Let’s say that contract is written and then you don’t know you can’t back out after a certain point. Then something happens and you back out. Yet, lose your Ernest money.
What if you are over paying for a property because you don’t have actual sold comps. What happens when that inspector hands over an inspection and it scares you so you back out. Yet, there were so many things in there that could’ve been negotiated.
There’s lots of reasons and most sellers and listing agents don’t care about you.
Good luck.
There’s another part of the “clarity” issue, that being the educated buyer. Hopefully the buyer understands they hold the power in commission negotiations. The buyer can stipulate any verbiage they wish in the buyers agreement above and beyond the state requirements. They can spell out that all commissions be paid by the seller and they can negotiate any commission they choose 0.1% to 30% if they want. Your both doing exactly what was one of the biggest issues in the NAR suit i e the omission of the fact that 6% is and never was implied and should have never been baked in to the process by training and practice. Homes have appreciated unnaturally the last three years. We’ve seen 7-8 years worth of average appreciation in just 2-3, however, the work involved in closing the average, straight forward sale has not. Any buyer / seller not negotiating less than 3% for their side of the transaction responsibility is doing themselves a disservice in this market particularly. The power is with the “educated” buyer. Who knows, maybe more lawsuits are needed to make sure that they are 🤷♂️.
Awesome..seller paying too much money for “do nothing agents..!”
The Real Estate industry will be much better if about half of the current Agents get out of the business. Other than car sales, and attorneys, I can’t think of another group of people with so many having questionable character. Yes, I know that some Agents are good people, even a few appear to be great people. It’s quite disgusting in my opinion.
Being an agent is tough man I would never do that job way too much stress. I’d rather flip in new Braunfels.
Are things flipping?
Your commission works its way down like our paychecks. So suck it up buttercup. 😂😂 Either way it's 15k less for sellers or buyers. I doubt buyers are going to even be able to afford it's now especially with all these bank restrictions. I think sellers are going to get screwed into paying it either way by lower offers. ill be looking for sale by owners or new build and all we have to do is agree on a price and each of us get our own lawyer. With the equity these sellers are making and prices are dropping it's insane to even put this rule into effect. Buyer will hold back.
Imagine looking at a house 1 time and having to pay 15k. It happens.
So here’s the thing a buyer cannot steer themselves if we present to them both houses and we tell them you can choose this house or you can choose this house if this house pays me a 3% commission but the other house doesn’t that means you have to pay me the 3% Mr buyer and then you let the buyer decide which house he wants to go with. That is not steering. That’s like a buyer saying hey I want this school district that’s not steering
But, the DOJ is saying “that” is steering. Thats how stupid this lawsuit is. If I give the information to the buyer and they say nope. I want the other. The DOJ is saying that is. 🤣
@@JeremyAKnight soooo if a house has a washer and dryer that comes with the house and another don’t and my buyer choose the house with washer and dryer I guess I steered him as well. Or one house got stainless steel the other don’t, I am Steering, or one house is less expensive and they choose the less expensive, I am Steering. This is the dumbest of all dumbest I have ever heard.
@@RichardParkerTheRealtor I mean. You’re not wrong.
@@RichardParkerTheRealtorobviously they are talking about huge price gaps and not petty things like a washer and dryer. Which is true.
@@Uwolz steering is the illegal practice of influencing a buyer's choice of neighborhood or area based on protected characteristics, such as race, religion, gender, disability, familial status, or national origin. This practice is considered a form of discrimination and an infringement of rights. Letting a client choose their own home by what’s affordable to them and their budget is not Steering.
it is to complicated.
“You will own nothing, and you will be happy” 😅
It’s what they want
Now they have to actually work… yikes.
I challenge you to sell RE and then say that.
At minute 5:19, the comment about “what has changed, not a whole lot” speaks volumes about the industry. There are two side to this settlement, how broker/agents view it which was expressed here and how consumer’s (sellers/buyers) view it which is, each party will now cover their own costs. I’ve already heard of agents in the Austin/San Antonio area who are calling listing agents to see if compensation is offered PRIOR to showing a property to a client. That is called steering and is a violation of the Code of Ethics and, depending on the contract, possibly a violation of the contract.
It’s steering when you don’t show that home. It’s not steering when the buyer says they won’t want to see it. Thats the difference. We talk about that in the video.
Give it a few years and AI is going to take over both buyer and seller agents anyways. They already have it setup for renters to view properties privately and do all paperwork online.
Eternity = 40 years to these two jokers. Buyers Agency is only about 40 years old.
I was thinking the same thing. LOL.
A licensee who represents one party to a real estate transaction may provide assistance to other parties to the transaction by performing ministerial acts such as writing and conveying offers, and providing information and aid concerning other professional services not related to the real estate brokerage services. No dual agency required if you are simply doing ministerial acts.
You can, yet you open yourself up to liability if they do not understand what’s in the contract. Even if they do, than can say you didn’t disclose and sue.
You guys will figure it out. Adapt quick bc the competition in this work field is getting more intense
Thanks!
Too many realtors, the herd needs thinning
Fair
@@sermexflomex1423 Correct. As a residential appraiser, I find it astonishing how many clueless and incompetent agents are out there.
comparing your first paycheck and deducting yearly expenses... c'mon man.
That’s for every paycheck lol. And it costs a lot of money to get to that first one.
Time to work on something else. Realtors job has been overrated for quite some time. We are not in the 80s, 90s anymore. It is a similar case like car dealerships. They are not needed anymore. Time to change boys!
When you go to buy or sell a home. Do it on your own. Then you’ll call a realtor for help. Good luck.
If Sellers bothered to understand things, they would no longer agree to Broker to Broker commissions. Listing agents are going to make more money in this new world. If sellers sign on to broker to broker. They will be killing it.
I’m not too keen on this new way of paying commissions… if I sell my home, and my realtor still charges 6%, there’s no way I’m paying another 3% for the buyers agent… I like the old way better. Also, the realtor that sold my other house 16 years ago wouldn’t negotiate on that 6%… and if another agent brought a buyer, the sellers agent would split that in half.
Do you think these new rules will ever be overruled and go back to the way it was before? The BAC needs to be on MLS.
Possibly
Complete lie to say the listing agent will still charge 6% to list a house, you lose all credibility when you say that
If that’s how the agreement is written. Then that would prevail. It’s not a lie.
@@JeremyAKnightlet’s check back in 6 months and see how it plays out. That comment of 6% in the agreement will not age well.
In today's market who would ever hire a realtor to sell there home? I get offers all the time. I will hire a lawyer to close on my home. They are a dime a dozen.
Go for it. Good luck.
The commission should be split between the seller agent and the seller agent . Is just fair , each client t pays each own agent ! Is just fair !
3% way too high.
Oh shit old scool Kevin sighting 👀
He’s coming back!
I love my realtor, but when he told me to pay 3% for the home i was gonna buy.... that scared my husband and i told him i cant sign it...... but, i did tell him i would sign a contract that i would only buy a Highland Home and they would most likely continue on with thwir 3%. We both agreed after getting verification from Highland Homes ..... well- actually i think Perry, Chesmar, Taylor Morrison , Toll Brothers are gonna continue to pay 3%- so.... if i was a buyer agent, i would steer my clients to New Homes only.
Those builders don’t pay though. So, you may be required to come up with the difference.
Can’t steer 😄 against the rules
Wall Street won again!
This is silly ruling. They could have done better in changing rules.
Now seller agent are forced to be buyer agents.
Builders need to disclose the seller agent in the model works for the builder.
This ruling is shady.
My last agent did some home showings and such but I don’t see what she did behind the scenes but all I remember is seeing her show us a few homes. We then found a home ourselves and brought it to her attention. We ended up closing on that home. The she was there for the signing. What do they actually do besides showing you homes?
There’s a lot. make sure you’re not making a bad decision, make sure you don’t do something to lose your Ernest money, a good agent guides you through inspections, makes sure the lenders are on time, makes sure you don’t do anything to fall out of contract.
The problem is TV doesn’t show all this. They show the fancy stuff.
Everyone is being confronted by this STUBID interface begging people to be polite. It doesn't affect me. I may stop commenting completely.
🧐4,000 grand is still a lot for doing absolutely nothing - at the least doing something someone could do for themselves. It takes the average truck driver a month to clear 4 grand - being away from home well over 100 hours a week. I don't feel sorry for them at all honestly. 15 grand is a certain percentage of a home that should've cost no more than $190,000. For Christ's sake they're the reason we're in this mess now (overinflated home prices) because 6 percent of 500,000 sounds more appealing than 6 percent of 150 to 200,000 dollars. And just think, when some of these agents lose their homes, they'll then have to pay over 1,000 bucks for a 1 bedroom, a stone's throw from some ghetto 😝
For the amount of hours put into it. It’s not worth it.
If you think agents are the ones over inflating prices. Then you’ve never been or seen a seller.
The problem is people can’t do it for themselves. And you should know better. Best of luck to you.
good , that easy money is over. time to do actual work.
Amazing! What’s funny is I usually Support small businesses and promote them to my clients. And here you are saying we don’t do anything. Won’t be referring you.
@@JeremyAKnight LOL there ya go over exaggerating the value you bring to a small business or even a client.
@@stumpgrinders5084too bad you’re the way you are. I’ve supporting a lot of businesses. It’s sad you don’t.
@@JeremyAKnight saying u support another business is just talk . ALL yall agents just talk big game. Its sad u think this is actual work.
@@stumpgrinders5084 bless your heart.
who edits your videos?
Sounds like a lot if cry baby agents.