BREAKING: Being a Real Estate Agent Will Never Be The Same
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- čas přidán 28. 07. 2024
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Brandon is a real estate broker in Michigan and is the CEO of Brookstone Realtors. Real estate coaching is Brandon’s passion. He teaches real estate agents at his company and around the country how to get listings using his reverse selling lead generation system. His mission is to teach real estate agents how to sell without being salesy, he calls it reverse selling.
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Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.
Impressive can you share more info?
Stacie Lynn Winson is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website. Thank you for sharing.
This model already exists in the commercial space and I’m kind of surprised it took this long to get to the resi space. In CRE, some landlords or sellers offer buy side remuneration and some don’t. Most buyers go direct to the LA. The big difference is that most buyers or tenants in CRE are typically more sophisticated, whereas residential buyers are primarily “everyday” consumers. I think that the consumer is going to lose big, a good buyers agent is worth their weight in gold.
The issue is that CRE data is disparate and confusing as most listing platforms aren’t beholden to MLS data sanitation rules. Consumer loses, small brokerages will lose, and the only winner is that attorney and his non-negotiable 40% fee.
I think it would be great if sellers had a place to go and list their property for a fee And all there where were just buyer's agents. And you have attorneys writing up the contracts and could negotiate if want for the seller .....and great escrow companies.
Buying a house that use to cost 150k at 3% interest just before march 2020 in Texas to now costing 250k at 7% interest is not the best financial decision LOTS of people are taking. This will bust horribly...
Back in 2000 I got a job offer and we moved from Canada to the US, so, we've seen both sides of the mortgage equation. Based on our experience, we definitely prefer the US. I recall the dreadful negotiation phase every so often in Canada. Here, I was able to lock in a 15-year mortgage term and didn't worry about rates during that timeframe. If the rates go down, then you can re-negotiate at a lower rate, pay off the debt and move on with a new mortgage.
Very true! I've been able to scale from $15K to $89k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns
Jessrobbie How can I reach this adviser of yours? because I'm seeking for more effective investment approach on my savings?
@devoncampbell275:
Technically I usually go with registered and licenced representatives. ''BRITTNEY COHEN ROSE " for example has the best performance history (in my opinion) and does offers 1v1 consultation to her copiers which I think is amazing. I don’t know how many traders like that are there.>
Check up her name on Chrome, browser, web
If you think you can just switch to being a listing agent and not be affected by this you’re delusional. This is an attack on the entire industry, our credibility, professionalism and frankly our integrity itself. In my opinion there is no case here. These sellers all signed a contract with a negotiable total commission percentage and a negotiable buyer agent commission. Do these agreement not have any place in this litigation? Why was each and every plaintiff not called to the stand and asked why they signed the listing contract and agreed to all negotiable commissions? Again do the contractual agreements that were signed mean nothing ? How can there be a “conspiracy” with million of different real estate agent each with millions of different clients all negotiating different terms in each individual contract? This “conspiracy” would have had to be so vast to include a majority of every agent working for each of these brokerages “colluding” with the NAR to “set” commission rates. Any practicing realtor knows this isn’t how it works, nor could it. There’s simply too much diversity and competition out there to “set” rates. Heck I’ve never even spoke to anyone in NAR leadership in my entire real estate career. What a joke! Commissions are completely negotiable!
Exactly.
Top listing agents will not be negatively impacted. They will get more Buyers for their listings and hire showing agents to show their listings. Either way listing agents will win. Most top listing agents already have staff.
@@adamblacketter very naive you won’t be getting the whole commissions on double sided deals. Your commission will go from x amount to half of that. You’ll be doing much more work for much less $. You’ll also be competing with every buyer focused agent this is switching to listing lead generation so your competition will double as well.
Real estate agents are obsolete. An increasing number of people like me are tired of dealing with agents for these transactions
@@dungeonmaster6292 great and they’re tired of dealing with you. I suggest you not use one anymore.
I guess dual agency is going to be a thing everywhere. We'll revisit this lawsuit again, but on the buyer's side
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
One strategy for protecting against a recession is to buy equities. Investors, especially during a recession, need to know where and how to put money in order to make money while avoiding inflation.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.
Working with a Financial Advisor to help guide you on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
“Natalie Lynn Fisk” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
I worked for a medical trade organization whose members were sued frequently. I cannot remember one time when our attorneys' strategy was to lose at trial and win on appeal. As Ben indicated, when you know the deck is stacked against you (regardless of whether or not you think you are liable) at that point you settle out. The risk is already apparent. You don't further risk the financial situation of your members.
What baffles me is that this jury feels it's ok to sign a legally binding document and years later you can change your mind for whatever reason. What a crazy world. 😅
Right! The seller could have said “no I don’t want to pay that, I’ll sell my home myself.”
The problem is that the NAR colluded against the people that it was supposed to represent. You cannot have a legally binding contract, in that instance.
Ive come to realize that isnt the problem.. Its the industry collusion that went to trial
idiocracy 2.0
Sounds like family court
You can question the value of the other agent being involved all you want, but if you as a seller sign an agreement contract stating how the commission will be dispursed you shouldnt be able to file a lawsuit on it 5 years later because you feel bad about paying the buyer's agent. That is ridiculous, especially coming at it from an angle of collusion as they did.
What a joy to now receive an email from NAR as a member that membership dues have now increased. NAR won't decrease their inflated salaries but they certainly will charge their members more to alleviate cutting salaries. NAR has agents backs they said......
Not surprised. This is from the company that started charging for their forms in the middle of a market crash.
I haven't been in the industry for long, but it's apparent to me that many people on the jury and in the public are misinformed. Reading the comments on any article, it's frustrating to see that the general opinion is that real estate agents make this crazy amount of money for doing nothing and that they want us out of the way and out of a job. It's astounding that a case like this even made it to trial.
100% agree
Our justice system is corrupted.
Exactly! Only those who are in this industry knows better, it’s not easy at all, not even getting a client is easy!
You are correct. Home buyers and sellers do want you out of the way. Just look at all of the videos by this poster. Not one is about how to benefit the buyer or seller, they are all about how do I make more money. Realtor is a scammer industry. Do you hire someone to help you buy a car or any other purchase? No.
Have you seen the type of shit most Realtors post, how can anyone think we work hard if all we do is post the wins. Maybe if we spent more time posting on social about the hard work and grinding we do rather than just the glamour shots of closing, the fancy movie style listing videos with the agent as the star of the show, or the 3-4 vacations a year we take, new luxury car purchases, maybe then the people wouldn't think we're overpaid.
Tell you another thing. I am not paying NAR's fee anymore. They are already excessive. They better watch out some real estate agents might get together and file another class action law suite against them for unreasonable fees.
Let's all refuse to pay the NAR Fees. They already sold the MLS to Zillow and the like who turn around and charge outrageous fees to sell us back the leads our listings generated, they charge outrageous amounts for every class they offer, and now they cannot even represent us properly. I hope that this is a strategy to take it to an appellate court; otherwise, I have absolutely no faith in their competency.
Yes you get it. TY.@@tonyfield7457
NAR is a waste of money, it feels they’re against us instead of for us…😩
Nail on head.@@jamilasellsnj
There’s no honor amongst thieves. 😂
I recently sold my car. I listed it on a couple of the big car sites for a flat fee. What a pain in the a**! I had to field messages from flakes and scammers and 90% of the showing appointments I set up were a no-show. There was another option, to sell it to an online car buyer at a discount but that isn't what I wanted to do. I would have paid 6% or even more to have a "car listing agent" to handle all of that for me. ALL DAY LONG. Ultimately I let it go for less than I feel I could have gotten for it simply because I was worn out by the process. Would I do go through that same process for selling my home? NOPE.
welcome to the real world!. nobody owes you a understanding
Good point
Lazy
A jury in Missouri isn’t a representation of the entire United States - this has to go to appeals. This is wild. First realtors, then who is next? Attorneys? Doctors? Are we allowed to start calling every other high paying professions fees “a conspiracy”
It will go to appeals and be in the courts for a while. I fear that Pandora’s box has been opened and it’ll be a race to the bottom for listing agents.
Agreed
💯
It was federal court
Yes, Doctors and Lawyers have been ripping us off via their Gilds, the BAR and the AMA.
I was waiting for Brandon's video on this topic. I must say, good job on breaking it down nicely for us agents to understand!
Brandon, Dom, and Ben. Thanks for being brave enough to review this court decision and the speculation around the ramifications.
All we can hope for is that these plaintiffs and people who made the verdict are soon searching for a new house….. They will quickly learn why it was not fair 😅
There's plenty of people like me searching for a house and not interested in dealing with agents
@@dungeonmaster6292 and that is totally ok! If I knew how to get deal done, I would do the same .
But most people get themselves into huge problems without the proper representation. How do I know that? I have it myself….and currently as a Realtor, I am happy to help others to avoid these costly mistakes.
@@dungeonmaster6292 I responded to another one of your comments, So I will respond to this one also. Did you have a bad transaction with an agent? you seem to come down on agents that are trying to help pretty hard. Once again you don't have to use an agent so why keep making your comments? Just because you don't find value in what we offer why does it matter what others do?
@@dungeonmaster6292
Let us know how that goes once you get the house.
@@dungeonmaster6292 just admit who you working for that makes you write all these comments
Great ending to this video and putting how large the market is... I agree with the quicken loans/rocket mortgage example...... Well said.. i enjoyed every second of this video
It's not 5 yrs out. as of 1/1/24 the state of NY has made it illegal for a listing broker to pay a buyer broker.
Good work guys! Informative session. Everything is going to be okay in the end!
Everyone needs to remember money follows mastery of something. This shouldn’t be effecting you individually if you’re the type of agent who would even be watching this in the first place. We all take this very seriously
You guys are on point I tough you could only take everyone to court for any little reason in California but this attorney just proved me wrong. He is out for money an becoming super wealthy at it. Someone should check the attorneys laws where they change up to 40% fees talk about crazy fees.
Yeah if the buyer agent is providing a service to the buyers to complete the sale for the sellers.. then it’s not just a kickback there is an exchange of services
My concern for listing agents is if buyer agents are no longer given a portion of their commission, how do you compete with discount brokers such as Assist-to-Sell with a flat fee or 1% commission who never have given buyer agents commission?
And I still want to know...Scenario: So I'm the listing agent on a home and that homeowner needs to sell their house and they are going to buy a NEW house. So NOW I won't be able to help my client buy their next home? My client will have to contact the listing agent of the home they want to submit an offer and potentially buy another home.
It's business as usual for now, until laws / rules are changed. I doubt BA's will be eliminated, just how they get paid will eventually.
You still can represent your client on the next home. Its just that your buyer client will have to pay you. The seller and listing agent will no longer offer compensation. You could treat it like a FSBO and ask the seller to pay you a commission but there is no requirement to do so. If you think about it, it might even hurt your clients chances of getting their offer accepted. Its a mess. We just have to see what happens.
The commission structure has always been 'unfair' in many ways. An agent can list a $1mill house, do 5 hours of work and sell it Day one, while the same agent can list a $300k house, spend 2 months handling 10 offers, and then make 1/3 of the commission they made on the $1mill home. Or, they can make twice the commission by getting lucky finding their own buyer on their listing when they did almost no additional work. Same happens to buyer's agent... your buyer may buy the first house they look at for $2mill while another buyer has to see 25 $500k houses and make 5 offers before buying one, yet the commission is half on the lower priced home. There's often very little correlation between the amount of work and the commission earned... that's always been an issue.
You could contract on the listing to take enough commission to also assist them with purchasing the next home. So in essence, they're paying you for both list/buy from the proceeds of their sale if you execute both.
It's going to be tough to assess a fee to members in this economic environment. And didn't some of the brokerage houses indicate that their agents no longer are required to belong to NAR?
Here is the biggest argument!!!…
Years ago, there was ONLY seller representation!…and the “normal” fee, was typically 7% !
7% was the “normal, reasonable and customary fee. And then slowly over the years, selling agents reduced to 6% some came as low as 5%, and then the industry changed and it was considered revolutionary to now pay buyers agents to bring their buyers to the sellers and the seller splits the total commission and pays a portion to the buyers agent that became typically about 2.5%.
That was considered a great win. Win win for all parties!
What’s going on now and the argument from the plaintiffs seems ludicrous!!!!!
So in certain states such as colorado there is no dual agency as a listing agent/broker we can not have both ends on the same transaction hence why buyers agents are required and extremely valuable
in California every home seller knows about the buyer's agent commission because it is in the listing agreement.
I think Dominic is correct at minute 40... i think an option will be given to the seller and maybe the seller will have to open a separate escrow upon the signing to pay the buyers agent and the seller will be signing off on payment....
I love your videos. Thanks for explaining all this. I just don’t know if this is “half time” or if it’s a stepping stone to the appeal. I say that because they got hit with 5 billion. The potential of having to pay that much money would scare the heck out of me so I would have gone all in defending this lawsuit.
As a first time buyer I had a great BA that went above and beyond to help me find my first home. As a first time seller I had a great LA (actually 2 -Husb and wife) that took care of the listing photos, showings and negotiating the offer. Both were positive experiences. My second home purchase I did most of the legwork of finding my home myself, and basically saw the BA when I was ready to sign the offer. I felt the BA could have done more to help me and yet they still got their 3% and the LA got theirs even though I found the home myself. I think the industry needs changes - perhaps a buyers/sellers "bill of rights" or something to clearly define expectations and commissions up front. And with median home prices at all time highs the commission rate could come down and still give everyone a fair share.
Amazingly, Grant Cardone beat two class action lawsuits, but our industry comes up against a lawsuit this big and can somehow leave space for any error in clarification or communication. Unless they use topnotch attorneys for an appeal, they’ll lose again.
Just shows you Grant Cardone is more intelligent than all of the biggest lobbying group's attorneys in the world, combined. Pretty incredible now that you mention it.
@@BatistaInvestsI think the new CEO (“for the interim”) was picked as a strategic move to play several different cards in the upcoming appeal that will be inarguable.
what do you guys think with happen to home Prices? do you think this will make prices come down since there could potentially be less buyers because of having to pay a buyers agents?
The difference of a kick back and no kick back is having a real estate license. Geeze people.
Excellent discussion of all the relevant points
Youve mentioned a few times, the issue is out 4-5 years...I think that's a flaw, brokers/agents should start now by making changes to avoid law suits, E&O exposure, commission, inner standards of ethics, re-writing contract documents, etc,
I just got a listing I I was surprised the seller asked me if I got the buyer he only wood have to pay one fee meaning only the listing agent commission.
Once the money is transferred, it officially belongs to the receiver of the funds.
When the seller signs a listing agreement he/she agrees to pay the listing broker a commission of 6% (for example).
Once escrow closes, the money is transferred from the seller to the sellers broker and officially belongs to the sellers broker.
The sellers broker is now the one paying the commissions to the buyers broker and at this point the commission funds have nothing to do with the buyer or the seller.
So how does this law suit make any sense? It seems to be exactly the same as how all companies do business. Consumer pays for a product, business owner pays manufacturer, manufacturer pays for parts and labor etc….
In Florida ..... We are Transactional agents, so we work with both parties on a regular basis. Neither buyer or seller is a fiduciary. That is why I think these lawsuits will not affect us.... FTC or DOJ new actions/rules will be required in my opinion to stop paying an agent helping the buyer thru the transaction.
So, what if buyer agents became LOs? In a lot of states you can work with buyers and do their loans.
Home sellers KNOW there will be TWO agents involved (seller rep and buyer rep) because there were TWO agents involved when the seller PURCHASED the home (in most cases).
Homeowners know a lot more than what agents give them credit for
One thing that nobody is talking about is the seller themselves. They have definitely heard this news, so regardless of what brokerages or NAR does, they could just make up their own minds and say "I don't have to pay a buyer agent" so this could be happening as soon as today.
That’s right and they always could’ve. And their house will sit on the market while others sell.
@@adamblacketter they will figure that out, in time
Wow this was awesome and so informative. Crazy times not only with the world but with the Real Estate arena. Crazy to think that you can sign an Exclusive Right to.... and years later come back and start a lawsuit. Guess its like buying a suit and wearing it for a year then deciding to take it back, WRONG! I don't believe that any of my buyers will ever pay me directly, like Ben said they are so tight with their money with closing costs, inspection, attorney fees that to add my commission, I know they will not do it. The whole biz plan has to change
You’re right that none of your buyers will pay your commission. Yet you and many other Realtors have been paid ridiculously high commission. Now why’s that? Perhaps the current setup is rigged such that sellers have little choice but to pay both listing and buyer agent. Perhaps there is merit to the plaintiff’s case.
@@jpyang05 What do you do for a living? I can tell you most Realtors do not make ridiculous amounts of commissions. We only get paid when we realize results for our customers, and that often entails months of hard work and frustration, swimming uphill before we see any earnings. A strong argument could be that most Americans get paid way too much, even though they do not produce any significant results. Could that be why most goods are being manufactured overseas, say China? So, who are you to judge?
@@tonyfield7457 I don’t work in the real estate industry but I have no don’t what you say is true. Running a business is tough. However, there’s no world where anyone can justify a seller paying both the listing and buyer’s agent.
If buyers have to pay buyer agents commissions fine that is written in the Buyer Broker agreement This fact no doubt coupled with the increase of mortgage interest rates will simply drive down considerably the amount of potential preapproved qualified buyers. This in addition will drive housing prices down do to supply and demand. Housing prices could drop by considerably more than 2%-3%,.the percent that the Seller is paying to the Buyers agent. Sellers all to often look at Residential Real estate as a commodity meaning it will sell for what it sells for and agents really don't effect the bottom line
It just goes to show that you constantly need to be innovative and deliberately spend a small portion of your time on browsing for new ideas to generate and conduct business.
Isn't it true that you can't submit new evidence or witnesses on appeal? Isn't the appeal only to determine whether the original decision was legal and fair? Any attorneys answer this?
I can absolutely see a day when a buyers agent is considering Who is paying their commission and the buyers agreeing to come on lower on the home price in order to pay their representative
I totally agree with Brandon, we as real estate agents don’t make it clear to sellers who are the two agents involved in the transaction, we don’t mention buyer’s agent at all until signing the commission rate. I think that is where the confusion is coming from.
Not true in my state.
Not true. You should be disclosing that up front, always.
It is clear in my market that we cooperate. There has been times when I have sold the property on my own, as the listing agent, and the seller comes to me asking about a break on commission because I didn’t have to split it.
it would have to be the buyers agent charges the sellers agent a fee that is predetermined fee is just a line item on the closing ??? just like inspections
So how long before buyers go right to the seller and bypass the listing agent to avoid those fees as well.
As a broker in fl we are able to hold auctions. Been preparing this for a while
The buyers were overpaying for properties when interest rates were 2% that will change. Based on the inventory out there if you do not have considerable cash buyers will not get to the settlement table .This will not effect the buyers with real money
Since we as agents were forced to offer 3% working with KW. Regardless of what commission we initially charged, do we maybe have a case?
Keller essentially tries to turn everyone into a buyers agent 🤷🏻
How does this make sense considering in states like Rhode Island you can not have dual agency and have to bring in a buyer agent??
Offer full price and ask for credit 2 to 3% Back n we charge buyer but we explain that credit is our compensation n sellers take it or leave it!!
I am licensed in SC and AL...My South Carolina contract clearly outlines how much both listing agent and buyers agent gets. My Alabama contract only says that the listing agent is getting paid "X" amount. It doesn't mention the pay for the buyers agents at all. Some listing agent get a listing at 7% and offer the buyers agent 2%. It widely never even discussed with the homeowner. The homeowner just agrees to pay the listing agent X%...I dont like that at all
and that's the problem with this case. Homeowners know there is a fee to list their home but they were not clearly educated on how the commission would be split. I always let Sellers know that if I am unable to procure a buyer for their listing and another agent brings a buyer, then I will split the commission with them. I think the listing agent did not fully explain to the seller on how it worked but more than that, instead of the seller not agreeing to proceed, they proceeded anyway and then came back crying later on THEIR DECISION. This case should have been thrown out for real.
Not supporting NAR would be a big mistake, NAR tried to settle the plaintiff did not agree to a reasonable settlement
Can you make a video on how you think companies like Zillow who seller buyer leads will be affected ? Will they be changing their business model ?
What about fair dealing in dual agency? As a buyer the Listing agent will not look out for my best interest. Lawsuits.
I think the reason why buyers or sellers are so confused is because! when presented with the P&S all the fine print on that contract states it all, but the customer is possibly not choosing an attorney to explain how it works to them. Along with contracts there should be a quick breakdown on how commissions and payment distribution happens, that can be worded so simply that a 10 year old can understand it. Maybe put pictures along with it if that helps...lol
The problem is that sellers believe they can tell brokers how to spend our money. The money they’re talking about is not theirs. Once closing happens the listing brokerage owns the commission, they pay the buyer brokerage. Sellers are misinformed. They think that is their money when it’s no longer their money.
If I’m an agent and I spend $2,000 at the bar after closing your transaction I worked on for 6 months you can not sue me for that money I spent, because it’s my money now. This is no different.
This process of one party paying the other party's fees is common practice for attorney settlements. This is how it is structured on a real estate listing agreement. I think half time for this legal case is the best conclusion. All commissions are stated as negotiable. Now per this legal case the negotiated contract is voided. Thats opens pandoras box.
32mins in and I like what you did there. They were ok with 6% to the listing agent then and it would stand to reason that they would continue to be ok with 6% to the listing agent in the future. The only flaw in this is idea is inflated home prices. The way home prices have inflated to outpace wage growth is not going to make that 6% idea a good one. No as we are heading for major price corrections moving forward maybe if Property prices returned to the historical averages, then sellers would not think twice about 6% going to that listing agent again but how much pain everyone is going to have to endure up until those prices are reached the 6% thing my die off like the dinosaurs.
If you're shocked at the verdict you didn't pay attention to the lawsuit. Ketchmark related to the jury and played on the emotions of the big bad corporation that's taking advantange of your average homeowner. While NAR and their suits talked down to the jury acting like it's so obvious that there's no case there.
If the appeals get to somewhere higher up where it's suits vs. suits then there's a chance of it being overturned. Jury of the people will always side with the people, weak case or not.
Yup. And the jury is right!
It's not a kickback when another licensed agent brings the buyer. It's cooperation between two real estate licensees. Do attorneys pay agents when they send them a client? No. Do attorneys pay referral fees amongst each other within their industry?
It is totally a kickback. The only way the buyer agent gets paid is if the buyer actually closes on the home. If the buyer agent got paid for specific services e.g. contract generation, negotiations and got paid directly from the buyer we wouldn’t have any issues. Compensation needs to change.
I agree that the value of most buyer's agents isn't there and doesn't deserve 3% of the PP. That being said, those agents that do work their asses off and truly care about the buyer and their needs are made to look bad because of the buyers' agents who sit in their car on a showing or don't send their clients homes that offer
Love the speculation. The only thing that makes logical sense
When off market properties are sold many times the commission is built in to the offer. 100k seller nets 97k buyer agent gets 3k
What if the seller pays the selling agent’s commission and the buyer’s agent commission?
this will place a cap rate on what realtor can charge if in the end both buyer and listing agent are allowed to be invloved. Sounds like its all geared to have the consumer pay less. the Zillows and Redfins will capitalize by selling homes at 1 or 2 percent.
I am a believer this open a new way of doing business. We will have to be outstanding at our job. We will real have to show the public that we are honest and have value to the selling of a home.
Thy most know, because the listing agent informed the seller someone
Else will be showing the home and the contract will b negotiated with the other agent
They need some Realtors to speak in court. They need to hear it from our perspective too.
Maybe the buyer agent will just work on a referral bases if the buyer can’t afford the agents fee, the agent only qualifies the buyer help them with understanding the buyer process and sends it to the listing agent as a referral and they are done. the listing agent then takes care of the transaction from contract to close. My only concern with this would be in states that don’t allow dual agency and multiple offers, how will that affect this scenario… 🤔
sellers agents will still pay buyers agents the 3% or w.e you negotiate. My concern is the Homebuyer, this all sounds like buyer beware. Homebuyers are going to get screwed and have no one to point the finger at./ lean on for help. How is the best interest of the homebuyer a thing when your only working with the listing agent and his or her broker? This is all a slippery slope.
I don’t disagree with you. I think buyer agents are very valuable. Brandon question was if things do change how could they play out. What I posted above was just a scenario that I voiced that’s all. I do believe it will be messy but if things change, things change and we are going to have to learn to adjust.
@@MabelyReyesATXRealtor ahhh okay sorry if I read that out of context. But yes things are changing and Agents(I almost said realtors but now not everyone is going to claim that title) will have to adapt. I for see alot of people leaving the business, buyers getting screwed, and home prices increase/commissions staying the same. Wishing you the best in this crazy world !
Why don’t you realtors sue NAR? There’s nothing they are doing to protect the realtors m?
Hey Brandon, can you share your travel agent? I really miss having one.
How abt this scenario - listing agents keep commish at 5-6% or higher and pay commish to their teammates the split to find buyers?
I am not sure about Missouri but in PA the listing contract spells out what the commission the listing broker and the seller have agreed, and how much the seller wants to offer to the buyer's agent to bring a ready willing and able buyer to purchase their home. Initialed and signed. (PAR form contract.) How can someone claim they were not aware? I can guess that buyers will take longer to buy or have less representation should they decide to just call the listing agent. We will have buyer suing the industry then. This is getting interesting for sure.
My question is, how does this effect those realtors whose main business, typically for those at the team level businesses, who rely on Zillow for “leads” that feed the team. This will completely disrupt the buyer motto. Also, look for Zillow to included in these lawsuits at some point, they are “Dead Men Walking.”
If you think NAR is sitting on their best arguments, wait until the plaintiffs brings up the NAR owned MLS rules about restricting the display of listing agent contact info…. Per my mls, ““7.30 NTREIS does not permit the name, phone number, e-mail address, or web address of the listing agent or other similar information that is not descriptive in nature and relevant to an accurate portrayal of the Listed Property to be placed in the Property Description section of a listing.”
2 hour deliberation?! What does that say to you about NAR's ability to represent its membership or provide public benefit?
Regarding viewing the cooperative commission as a kickback I don’t see it as a kickback because it is to a licensed agent. Giving a kickback would be to someone that is not a licensed agent. The licensing is what prevents it from being a kickback. Just my opinion, I’m not a lawyer.
NAR and these brokerages have failed in customer service and customer experience. Clearly the contract language didn’t provide the Seller an option to opt out of paying the “cooperative commission” The corporate leadership of the real estate industry has failed the real estate industry.
Could be the end of Exclusive listing agreements too, commission to who ever brings the buyer. Super interesting
Nope. How will buyers know what houses are even for sale if nobody lists them?
I was thinking of that while listening to the video. The commission should go to whoever sold the house. The buyer’s agent is the one actually selling the house, not the listing agent. The listing agent is just posting it on MLS and social media and printing a couple of flyers. The buyer’s agent is the one actually selling the property to their client. So why should sellers pay listing agents 3-6% to post their home online and send out some Constant Contacts & postcards? Why not pay the 3-6% to the agent who actually brought the contract and pay the listing brokerage a flat fee? I could see exclusive listing agreements going away.
@@CC-ni6pl this already happens. Discount brokers list for a flat fee and offer buyer brokers a percentage. That’s no change.
I don’t get it…our listing contract states how much the commission is, AND exactly how much a buyers agent will receive in the event that agent brings a buyer. If a seller wasn’t happy with that, they could negotiate or walk away from that listing appointment. None of these sellers were unaware. The first word out of their mouths is "how much is your commission?"…2nd is about the lock box…who’d they think the lock box is for?
Shows you how much people hate real estate agents and the industry.
It all stems from jealousy. I have family that feels the same about me. They work hard physically demanding jobs. They make a weekly check. They see me close a couple deals in a week and make a lot of money. They’re jealous cuz my check has more zeros and I didn’t have to break my back for it. What they fail to understand is while they were getting checks every week forever, it’s November and I’ve only gotten paid 4 times this whole year.
Possibly@@adamblacketter
That is correct. The industry provides nothing to the average buyer or seller. I can photograph my own home and post it to Zillow, you do the same thing and want 6% of the sale.
@@skiplaruka we do a lot more than that. Most importantly we provide a steady flow of buyers which ends up netting sellers WAY more money than they can get FSBO. When a seller decides to FSBO they are unknowingly closing the door to 90% of all buyers.
@@adamblacketter You are absolutely correct. The industry is colluding to lock out buyers and sellers who do not want to use the NARs services.
It was always buyers paying 6% of both agents’ commissions. It was built in the price. If the buyer is now essentially robbed of representation, buyers have to demand 3% price decreases to be able to pay their agent fees.
I was thinking the same thing about Dominic! I'd want him to represent me if I were on trial!
I'm not surprised @ the Jurors decision@ ALL. In fact, when BM mentioned this in the last video, my 1ST thought was, I hope there are some SUITABLE Jurors making the decision🙄😤. On the flip side, I AM shocked @ NAR's lack of defense &/or strategy😏🤯😠🤔 Homeowners DON'T want to pay RE Sales Agents PERIOD. The industry in general has UNFAVORABLE REP
In Houston MANY sellers give contributions' to help the buyers with there closings costs...Why wouldn't they do the same with commission's? THEY WILL ESPECIALLY when a seller NEEDS to sell asap. Luxury may feel the most pain from this in the future.
I worked in a real estate office many, many years ago in Missouri. And let me tell you those negotiable commissions were not really negotiable. Your house did not get shown. It was discouraged and we even offered bonuses on top of the commission on some houses and those are the ones that got shown first. Always come on, people call it like it is.
Just a thought on this conversation about Buyer paid commissions. I can see a scenario where we make an offer on a $100k home of $102k with 2k in seller concessions to cover agent commissions. What say you?
Won’t work if it doesn’t appraise.
Will the home appraise at $102K? Because if it doesn’t, the buyer will still have to come out of pocket for the commission.
When this is all said and done; sellers will have a choice of paying a buyer's agent to bring a buyer in to their home or not. It's us listing agents that will have more addendums or maybe just one to have the seller sign approving the buyer's agent usage & the % to pay. This will be after us good ethical agents do what we've always done, that is explain how the entire process works. It will be each listing agent's choice when to present this in our presentations, in the beginning, the end or in the middle somewhere. The mess will be Fannie Mae, Freddie Mac, RESPA LAWS, just a whole mess in the background. The listing agent will have it easy in that we'll be presenting the same as we always have. Financing commissions for buyer's agents will be another mess.
They just announced Bob's retirement and the new NAR President, said it was planned already but it's all about the timing. I truly appreciate this channel and it's valuable feedback and information from you guys. Keep it up.
I saw that too and lol'd. What interesting timing...🤔
It's not like these contracts couldn't have been canceled once a deal is found acceptable by a seller. I see canceled and withdrawns each day. Plus, the attorney explains the formal contract, the agents and company are in the formal contract, so I really don't understand how these homeowners are doing what they're doing, but hopefully the optimistic halftime concept is true.
The judge hasn't issued a final judgment. I think that what will happen is more transparency and disclosure requirements. I know a lot of ppl think that this effectively ends buyer's agency, but I think they're getting a little ahead of themselves.
29:15: I think you made the point for the plaintiffs, in fact that’s exactly what one witness testified too. He said, “Why do I pay for an agent that I don’t even know and have never met?” In your scenario, it’s even deeper. You imply sellers don’t even know another agent is even involved! And you ask yourself why they won?
If they don't know then they didn't read the contract they freely and willingly signed. In many markets its clearly stated in the documents, which is a really hard argument to make that the fault of real estate agents.
Simple Solution. Buyer will write into the contract (additional provisions) that the seller will pay X to their agent (buyer agent fee). Just like buyers write into agreements that seller will pay X towards the buyers closings closes. Lenders will adjust their underwriting guidelines to "allow" this additional buyer expense to be paid as a seller concession. Just a matter of structure. BTW, structure is how this all started in the first place 30 years ago (1993 when we went from seller-sub agent to buyer agent) in Colorado and then was rolled out to the rest of the country. Interestingly, the STATE of Colorado was the one pushing this change to add buyer agents into the transaction (to protect buyers due to buyer lawsuits) and payment from sellers in the first place (in 1993).
Sellers do not want to pay an additional commission, that’s the point. This lawsuit will end up hurting listing agents more than it hurts buyers agents.
@@CC-ni6pl Sellers do not want to pay any commission (neither do buyers). But they do because that is how you maximize the price of your home and the net you walk out of closing with. There is NO LAW that requires a seller to hire a real estate agent. They can sell FSBO or hire an attorney. Why do most hire an agent? Simple (for the seller), quick, legal, and no better option exists ... even with all the technology. Selling (and buying) a home is a knowledge and time intensive process.
@@2ListingsPerMonth They will eventually find that out but the ultimate purpose of these lawsuits is to cut out all real estate commissions.
@@CC-ni6pl time will tell. We'll see what happens with appeal and DOJ involvement. Maybe even congress (sing NAR biggest lobbyist).
The United States realtors charge more for commissions than most other countries.
Tell me why is this.
Every time I listed my home it was 6% commission. NO negotiating.
It’s about time this strangle hold on the sellers changes.
I sold one of my homes by myself. Please
It’s not that complicated.