I'm so happy to have found a Realtor who actually knows what she is talking about! We appreciate you showing your values and being loyal to us consumers.
What’s interesting about the NAR lawsuit is that the sellers are almost never bringing money to the closing table anyway. The buyer’s funds cover everything for the seller: liens, taxes, closing costs, loan payoff, commissions, etc. So the argument that sellers shouldn’t have to pay a commission to a buyer agent is baffling to me. Maybe sellers should have to start covering their agent’s commission and other fees up front so the buyer doesn’t have to finance so much money to cover both sides and can continue to pay their own representation. 🤷
I understand that you don't agree with the premise of this lawsuit, but for the benefit of buyers and other realtors, shouldn't you have a better understanding of what the premise is for those who filed the lawsuit? This video helped neither the buyer or other realtors as to what the possible effects of this ruling are.
the home sellers in this case (plaintiffs) will get around $2100 each - now compare that to the law firm which stands to gain 100s of millions if the verdict is not overturned so you have to consider the motivators of this suit in the first place. If anything buyers could be the biggest losers if there are regulations put in place at some point that require buyer to pay buyer agent fee. Right now the system works well since the seller benefits by getting their property exposed to thousands of agents through the MLS so seller has best chance of getting the best offer.
If sellers stop paying buyers agent commissions and it sits over the buyer to pay their agent, how does a no money down, VA buyer who has barely enough to pay for their inspections afford their own realtor? How are they now denied having their own representation? I work a lot with clients who have just enough for their down payment and they have to ask for seller paid closing costs. In my state (KS) dual agency is illegal. A buyer has their representative and a seller has their representative and it’s been that way for 25-30 years.
Ultimately, BUYERS are paying for EVERYTHING, the house, the commissions, etc, as the house price includes both agents’ commissions. People are foolish for thinking it’s the sellers paying both commissions. It’s already factored into their sales price.
@@realestatebykemi this is extremely wrong. As a real estate agent (or someone involved with real estate according to your username), you should always know that the commission charged is based OFF sales price, not factored into it. By that theory, you’re suggesting an agent that sells for 415,000 really ,could’ve sold it for 400,000 but it was 415,000 since the “agent factored his commission into it. This isn’t car sales.
Realtor commissions are out of control. The current percentages may have been reasonable 30-40 years ago, when homes were a fraction of what they cost now - but those commissions now are ridiculous. An industry-wide reform in both US and Canada is well overdue.
Changing lawyer comp in class action lawsuits will do more to change frivolous lawsuits being brought than anything. Ironic the lawyers will have an ungodly large payday for a suit alleging someone else is making too much money. 😂
To be honest, the system never made sense to me. Essentially, agents are working both sellers and buyers, which by definition is a conflict of interest.
"Dual representation" as you've described is not legal in many states. I am in Oregon and it is legal in my state, but I choose not to practice dual representation. I've made that choice because part of my value (i.e. why I earn the commission that I earn) is in negotiation, and when representing both parties I believe it is not possible to represent either one well....certainly not in negotiations. I cannot serve two masters. I can appreciate you saying the system has never made sense to you, and I agree that Realtors can do a FAR better job explaining why the system was designed the way it is. It actually benefits BOTH buyers and sellers to be structured the way that it has been for decades. For buyers, they receive effective representation of their best interests, while not having to pay for a professional Realtor out of pocket. This system has enabled millions of buyers achieve the dream of homeownership. For sellers, the cooperation offered to a buyer's agent who successfully brings a buyer means greater competition for their home, selling faster, and at the most competitively available terms possible. It's much like a marketing budget without having to pay any marketing costs upfront, and not having to pay a separate marketing fee to advertise their home in a wide network of online platforms. It benefits both parties in a real estate transaction. Real estate is complex, and even something that seems simple at first can become quite entangled with zoning, repairs, market nuances, choreographing moving, closing, financing, etc. Good Realtors are worth their weight in gold, and on balance save/make consumers far more $$ than the cost of commissions. I welcome competition in our marketplace. I welcome these conversations. The conversations currently surrounding buyer representation are being spoken by entities that benefit from an unrepresented buyer--and that is a bigger concern for me than who will be paying commission.
Thanks Leigh for your wisdom! I got my Real Estate License at age 18 in 1984. I remember in Texas in 1984 the Residential Contract was one legal page sized document that was front and back typed on type writer. Each page of a contract now is due to a previous lawsuit of some kind. Were now up to approx 50 pages in a purchase contract in Texas. This NAR suit will blow over but will just add more legal addendums to Contracts across the country, "Compensation addendum" on its way soon across the land .....This will be separate document from the buyer rep agreement.
Lots of Realtors commenting on how much money the lawyers are going to make from this and saying nothing about how much the NRA and such have already profited from this 🤔… Common sense should be common… If a “buyers” agent is WORKING for the “buyer”, as you realtors claim. Why then shouldn’t the buyer pay for the work being done for them… If you and I agree as neighbors to share a fence, why should I pay for the entire cost if you also benefit… This is bothering you realtors so much because this will impact your commission.
When you bought your house did you pay your broker? The buyer usually can't, so you pay when you sell. Same concept you just do it later when you sell. Maybe think of it that way. It all comes full circle.
@@melissapadilla9628 - I well understood what occurred when I purchased my home, but that doesn’t make it right. If I could not afford all the services rendered to me me associated with buying a home then I am not ready to buy… Or maybe the banks will allow me to roll that fee into my mortgage… This would be the most transparent path… True, that I benefitted as a buyer and therefore I think this should be phased out over 5/10 years.
It bothers them because all these years theyve been telling buyers that their services were "free" and now they have to backtrack on that and justify that 3% to the buyer.
@@melissapadilla9628since we"ve been going clockwise on that circle for many many years how about this, lets go counter clockwise. Have your buyer pay your fees and when i become a buyer again after selling ill pay my buyers fees so your seller wont have to worry about it....still a full circle. Isnt it 🤔
Such a refreshing perspective! Thank you Lee for taking the time to preach your truth! And oh my gosh, the analogy of swinging a dead cat really had me rolling
Love your take on this ! Lord everyone is confused and dare I say disgusted with what they are doing to our business ! For the professional realtors I stand united for our value is not appreciated or usually understood .. yes we need to continue giving our expertise to buyers and sellers ! Kudos to you ❤️
You're dreaming. This is the problem; the lack of knowledge by consumers of what real estate agents do. Most agents work 6-7 days a week, and have to work with sellers who list their home at a ridiculously high price against the recommendation of their agent. Then the sellers blame the agent for the house not selling. All costs of getting the listing to market is borne by the agent, who does not get paid for services already provided until closing. If closing happens. It's ignorance and blame, blame, blame. If everyone was paid by commission rather than salary for performance, you and others would be singing a very different tune.
Leigh great insight as usual, you are spot on, compensation is built around a RE Professionals knowledge not just the transaction itself...angles, evaluations, right answers and guidance so a consumer does not make a disaster of a decision of a life time...well said
Our expertise is priceless! The education, time, knowledge, experiences, negotiation skills, legal knowledge/enforcement, extensive research and not to mention consulting, being a therapist, educator, scheduling inspections, showings, open houses, driving across town and state (gas/wear and tear on vehicle/car insurance/repairs), writing and negotiating contracts, meeting deadlines, calling zoning office, walking through mud, rain, snow and acres of land at times, getting bit by mosquitos, ants, spiders, subjecting ourselves to dangerous situations to make sure that our clients are safe at all times and the list goes on. Also, marketing, paperwork, home staging, photos, data entry, lockbox and other investments required for a real estate agent to perform the job. Keep in mind that this could go on for months without getting paid. I said all of that to say this, some people have a problem with how much a real estate agent makes. What's next the car salesman commission getting cut?
While your at it, the car sales industry is terrible. Everyone pays a different price for the same car at the same dealership. The middleman economy at its finest.
This is an EXCELLENT SYNOPSIS and I wholeheartedly agree with you Leigh. I’ve been in business for 23 years and I’m passionate about helping my clients with what is typically their largest investment, and I personally am going to continue doing what I do and taking care of my agents aunt Client.
You are the calm cool voice that keeps things in perspective. I believe in the long run, the NAR will prevail on appeal. Keep smiling & keep selling, young lady. Thank you for sharing your observation on this decision. It’s appreciated. 😃🙏🏻
Most are unaware that agents incur several costs that are deducted from their comission and lucky to take home 50% when all said and done. I know of several that have not had a single close this year. The interesting part is the conflict that will now result because the buyers agent will now be negotiating for themselves and the buyer at the same time if the seller is offering too little or 0 in the listing. Is that right? The buyers agent could decline to serve. But then the listing agent gets both clients. Isn't that yet another potential conflict? Looks like just another layer in an already unaffordable real estate market.
Buyers and Sellers have never had to pay a commission. They can do these transactions by themselves if they should elect to. Agency is a representation BY CHOICE if you feel you want a professional to represent you. Sure, a seller doesn't want to pay 6%, but 6% is sure less than these attorney fees. In my market and my MLS, we never had a set rate of commission either. Did our contract not say that Seller pays listing agent and their commission is elected to be shared with a subcontractor? So now we can't pay subcontractors?
Loved the synopsis. Is there a reason this lawsuit come about now? Was there a change by NAR which made it easier to bring this lawsuit today vs. 5, 10, 20, 50 years ago?
Buyer's agents undertake extensive responsibilities for their clients, involving property searches, numerous calls, appointment scheduling, chauffeuring clients to view multiple houses (sometimes over several months), drafting offers, negotiating prices, attending inspections to ensure client satisfaction, guiding through necessary steps for protection, coordinating with legal entities, and being present on closing day. The workload can be substantial, and it feels challenging at times. This is not fair for buyer’s agent. Many buyer only have for their down payment…
I would recommend you educate yourself on the McDonald’s case that you throw out as an example of a frivolous lawsuit. You are parroting exactly what McDonald’s legal team put out into the media narrative, that someone sued over spilled coffee. The reality is that McDonald’s was serving coffee at a dangerously hot l temperature and there had been numerous serious injuries. The woman had to have skin grafts because of the burns she endured and she originally only wanted for her medical expenses to be covered. McDonald’s thought they could win the public opinion against her by making her seem to be unreasonable (which they did) but when they took their chances in court, they lost on the merits because it was found they knew the coffee was being served too hot. They chose to continue selling it at that temperature because it provided them a competitive advantage of letting people purchase coffee at the restaurant and bring it to coworkers and it still be hot when they arrive at work. But stop and think about how hot something has to be in order for it to remain hot even after a 15 minute or longer drive. I’m FOR tort reform, but please find better examples if you want to describe examples of frivolous lawsuits.
It was absolutely a legitimate lawsuit. The lady was elderly and did not even want to sue them. She just wanted her medical bills paid. Suing them was a last ditch attempt to cover her own bills and the jury gave her that sum. She did not even try to sue for that much.
Somebody needs to change the rip off amounts that attorneys make no firm deserves to make 100 million for consulting and arguing a case. That money paid drives up the cost for almost everything.
I think my favorite part of this video....was her accent. LOL! But seriously, she has a great personality: funny, friendly, and no-nonsense. The video was very informative. I'll be subscribing!
GUILTY, GUILTY, GUILTY. lol. All I need is for something to be listed on MLS. Pricing a house is easy; comps can be found everywhere in every shape and size. Paying 3 or 6% is terrible. I will pay for your time which is equal to about $2000. bye bye realitors. Now Realitors are going to cry about Tort reform. lol.
A realtor could just put your property under contract with a cash offer then re assign it to the end buyer and pocket the difference. Trust me this is the fairest way, but hey what do I know.
It’s a wild time in real estate, as a buyer many… MANY of the research (even with a good agent) is done by the individual. Technology, research online tools, statistics, financial knowledge, county online systems, forums and the classic “anecdotal story” makes buyers more conscious of the amount of time, of their individual own time, that gets pour into such a massive transaction. There could be payout structures based on commission vs. Flat fee. Expectation of hours or value to be brought to the table. Technology is the main disruptor here. Pricing was impacted by it, now commissions, perceived value…. And there will be more.
The ultimate goal of every useless intermediary is to capture a take rate on the value of the transacted assets, while keeping their own costs fixed. It's the dream of every business to achieve this. It is only sustainable through monopolistic behaviors though. Useless intermediaries in markets never last forever! They can endure for decades like abusive and exploitative agents have, but eventually economic reality sets in and commissions will come back down to fixed price instead of %.
Leigh, I'm glad that you have all your knowledge and experience. However, a lot of realtors don't know anything about houses or zoning or anything. They get their realtors license on Monday and on Tuesday they are making the some commission percentage as you. We need an industry where people who really have knowledge and skills can charge more than realtors who are just starting and don't know anything. In other words, we need competition in the realtor industry.
Ummm, such competition already exists. The most experienced agents get hired more often than inexperienced agents. It’s up to the consumer to vet & choose carefully, just like with anyone else you hire, such as contractors, appliance repair, etc. Do you just hire the first person you talk to?
You might want to get better facts before talking on this. I think your correct on agents need to kept on doing their job. Where I think your incorrect is the lawyer suing the NAR is one of the top trail lawyers in the county, he’s not an ambulance chaser. One of the main issue is WHY a seller is paying for the buyer agent. Please tell me what other deal the buyer is paying for someone working for any buyer. Really want to hear your thoughts on this. No one is saying agent should not be paid, but should be paid by the people they are working for.
Wow, $30,000 to sell a house worth $500,000. Does that sit well with you? You should explain where the commission goes, so the public gets the whole picture.
The buyer & broker agreement legally outlines this information and for the last 10 years I've heard RE agents say they don't need them and don't use them because they scare away buyers. RE agents and LO's used to have even commissions and after the NMLS was introduced and LO's pay changed agents increased their commission percentages. To hear an agent talk about everything they do and then talk about the LO's tasks to perform in a transaction... sounds like you clients talk about you the way you talk about LO's.
Thank you, Leigh, for highlighting that the lawyers are going to make a huge payday. How can anyone think that money was not the primary motivation behind these lawsuits?
@@BushyTop08 If you would take time to read the contract you would see in plain English that commissions are negotiable by law. That you either failed to negotiate or did so poorly is on you.
do you have any idea how much this law firm stands to gain in this suit - probably anywhere between 100-800 million dollars!! That is a huge amount of $ compared to broker fees. Follow the money & you will see the motivation for this lawsuit ! @@BushyTop08
a new an improved excuse for the boards and NAR to keep raising their dues...this was the last straw for us...too many other free or affordable tools for us to use...bye bye NAR
Buyer agent doesn't represent the seller, therefore it makes no sense for the seller to pay money to the buyer agent. RE agents should be paid, question is who pays who.
Good morning, I am realtor in CA and there are a lot of very honest and ethic realtors, who deserve get paid fairly. Sellers and buyers need realtors to protect their best interest, it’s like attorneys, the people always need some knowledgeable and honest professional to help them to succeed in the transaction. I know sometimes there are dishonest realtors or attorneys or doctors but the public always will need the good ones. Let’s focus in the good aspects of every profession and of couse we can make adjustments but please don’t put everybody in the same básquet. Thank you. Have a wonderful and Blessed day! 🥰🙌
@@elperrroverde Agents hang their license with a brokerage and work within the policies set by the brokerage, as members of the MLS and their rules and regulations, and NAR. Why are agents being villified???
You can Become a realtor in 45-60 days and make 250,000 a year or more in year 1 Doctor 10-12 years of school lawyer 10 years, veterinarian 10 years to practice, it’s interesting hearing all the realtors talk about all the knowledge they have and how they are worth so much, I don’t have an opinion on this but it’s cool to hear it all, my brother is a realtor in NM and made 945,000 last year he’s a selling fool but he’s way overpaid lol😂 NRA will never make sense to a jury that works 265 days a year and make 42,000 a year.
potential homebuyers are now on the hook. Sellers win and screw buyers and NAR. those fees were to entice realtors to show sellers home to buyer. I am not paying for someone else's advertisements to me. the seller should pay to advertise themselves not the buyer
When we take a listing and sellers signed a listing agreement they are very aware how much commission they are agreeing to pay and they know exactly how many % is being offer to the buyer’s agent . Everything is very transparency.
I agree. How are they able to win a lawsuit. No one forced them to sign the agreement. There are many realtors per city. Or they could find their own buyer and go thru an attorney.
@@jeff1872t Are you in the profession? Probably not. Being in the profession for 18 years and a qualifying broker. So I think your quick to pass judgement without knowledge yourself. Unless of course you went to school and have a license. Do you read contracts on a daily basis did you take real estate law? Where are your credentials to make your comments. Hmmm. We know what the suit is about. Everything we do is VERY Transparent. This is what the comment was about. I get they think the commissions are high but if you read the comment you commented on, the sellers sign a transparent agreement. Which they DO Not have to agree to and there are different options.
@@melissapadilla9628 I've been in the industry for over 2 decades but not as an RE agent. Sit down and admit your commissions are not negotiable by the buyers. In fact don't tell me, tell it to the courts with your big brain understanding of RE law. Bye....
Wow, this is ugly but we still have to make a living and help our clients buy and sell!!! The lawyers will get all of the money and the consumers will lose the most in the end... very sad!
Leigh I really enjoyed you. I agree with everything you said. We cannot stop working or give up, we have clients we still need to help. This is so sad what this world is coming to, everybody wants to sue somebody. This system works and now lawyers just want to mess this up. Dont try to fix what's not broken.
Don't forget the 1.78B judgment against the NAR can be tripled if it is proven U.S. anti-trust laws have been violated. Also, other states could also file suit as well.
hope all realtors lose their butts.. You guys made way too much money off people's hard earned Equity.. Ten day sales 20 to 50 thousand Commissions is ridiculous.. I hope you get screwed by this new law
they should've asked this lady to come to court with them, probably would have had a better shot at winning 😂 the CEO of the association did step down maybe she could do that, def knowledgeable and she could talk a drowning person into buying bottled water!
Realtors need to stop price fixing. A buyer agent doesn’t deserve / need 3% of a sale, they should be getting a flat fee or service based fee. There is no different service based solely on price point of home. The industry is not transparent and is based on misinformation and misrepresentation.
How do you figure that? The commission is well known and has been for years. Also the commission is often reduced to a 5% split and sometimes lower. You can alway negotiate the commission. Explain how working with a buyer isn’t work.
@@rstvanman1999 I’m arguing that buyers should pay directly to buyer agent for their services. And that it shouldn’t be tied to the price of the home. Of course agents need to get paid, but percentage based for the buyer is ridiculous. I think it is a different story for the seller tho. The buyer agent shouldn’t be acting as a salesman, they should be working at the request and directly and only for the buyer. For example, charging for a la carte services up front.
Realtors do not price fix; market value is set by homes that have sold and that are like in kind. Plus, sellers are often the ones that determine the price and this comment is based on experience. Not just mine, but also other realtors. A buyer realtor and a seller realtor do deserve their commission. Real estate is not about putting a sign up. A lot of work is invested by both sides, and unless you have been in the field you have no business determining what a realtor makes.
@@backhomenm clearly you must have not heard the verdict, a unanimous jury just agreed that realtors price fix commissions. I never said realtors don’t deserve to get paid, everyone deserves to get paid. But it should be for actual services performed, not based on a percentage of home price. Buyers should be charged for comparative market assessments, negotiations, writing of contracts. The services should not be free. Currently as it is, with sellers mainly paying the buyer agent, the commissions agents are paid are inflated from what the true market would actually pay for the services. Y’all might see the value in it, but once people have to pay it directly out of their own pocket to buy a home, people won’t pay for it, or will want it at a much reduced cost, or less services. Basically buyer representation needs to change.
Go back to waiting tables! Home buyers (like myself currently) don't need someone to unlock a door at a showing than operate in THEIR best interest with MY money.
Have you ever walked in the shoes of a real estate agent? Not talking about the ones who sell the mega million mansions. There are times they list a property, put their own $ out for photographer & videos, spend a lot of time and then seller decides to take house off market and they are 0 compensated. Also a transaction that can take months to come to closing can falls apart at the last minute and they are not compensated for all their time spent. Also a buyers agent can show buyers dozens of home and then the buyer changes their mind & moves somewhere else - once again there's no compensation for their gas or time. So yes sometimes the broker fees are considerable but they make up for the ones that don't result in a settlement
You can Become a realtor in 45-60 days and make 250,000 a year or more in year 1 Doctor 10-12 years of school lawyer 10 years, veterinarian 10 years to practice, it’s interesting hearing all the realtors talk about all the knowledge they have and how they are worth so much, I don’t have an opinion on this but it’s cool to hear it all, my brother is a realtor in NM and made 945,000 last year he’s a selling fool but he’s way overpaid lol😂 NRA will never make sense to a jury that works 265 days a year and make 42,000 a year.
@EdgeTradingFX- You don't work 8hrs a day for 60 days on 1 deal. A lot of your time is just waiting while yo are watching TV or playing golf. . But theoretically a lot of agents make a decent living with 5 deals a year. There are way too many realtors. Eventually, agents will be there but most of yo will work harder on a lot more deals for a lot less money on each deal. Agents' value is important but tons of realtors making more than a neurosurgeon (requiring 15 years of training)- that's a disgrace to the society. personally, as a buyer i wouldn't want to pay more that 5k flat fee to an agent esp if I find 3-5 homes myself that I need to choose from.
@EdgeTradingFX- your giving false information the average income in New Mexico was 75,560. And I disagree I have seen way to many realtors come in the game and make 100,000 year 1 or more and why is they lady in the video saying the lawyers are doing this for the money ??? That’s irrelevant what’s relevant is a jury of Americans agree with the lawyers that won. Heck she does her job for the money we all work for money so why even say they are doing it for the money ??? She sounds silly saying they are doing it for the money well she’s in real estate for the money. Lol
I'm so happy to have found a Realtor who actually knows what she is talking about! We appreciate you showing your values and being loyal to us consumers.
What’s interesting about the NAR lawsuit is that the sellers are almost never bringing money to the closing table anyway. The buyer’s funds cover everything for the seller: liens, taxes, closing costs, loan payoff, commissions, etc. So the argument that sellers shouldn’t have to pay a commission to a buyer agent is baffling to me. Maybe sellers should have to start covering their agent’s commission and other fees up front so the buyer doesn’t have to finance so much money to cover both sides and can continue to pay their own representation. 🤷
EXACTLY! Buyers pay everything & should have representation for their huge payment.
I understand that you don't agree with the premise of this lawsuit, but for the benefit of buyers and other realtors, shouldn't you have a better understanding of what the premise is for those who filed the lawsuit? This video helped neither the buyer or other realtors as to what the possible effects of this ruling are.
the home sellers in this case (plaintiffs) will get around $2100 each - now compare that to the law firm which stands to gain 100s of millions if the verdict is not overturned so you have to consider the motivators of this suit in the first place. If anything buyers could be the biggest losers if there are regulations put in place at some point that require buyer to pay buyer agent fee. Right now the system works well since the seller benefits by getting their property exposed to thousands of agents through the MLS so seller has best chance of getting the best offer.
If sellers stop paying buyers agent commissions and it sits over the buyer to pay their agent, how does a no money down, VA buyer who has barely enough to pay for their inspections afford their own realtor? How are they now denied having their own representation? I work a lot with clients who have just enough for their down payment and they have to ask for seller paid closing costs. In my state (KS) dual agency is illegal. A buyer has their representative and a seller has their representative and it’s been that way for 25-30 years.
As an agent, I 1000000% agree with you!!!!
Ultimately, BUYERS are paying for EVERYTHING, the house, the commissions, etc, as the house price includes both agents’ commissions. People are foolish for thinking it’s the sellers paying both commissions. It’s already factored into their sales price.
@@realestatebykemi this is extremely wrong. As a real estate agent (or someone involved with real estate according to your username), you should always know that the commission charged is based OFF sales price, not factored into it.
By that theory, you’re suggesting an agent that sells for 415,000 really ,could’ve sold it for 400,000 but it was 415,000 since the “agent factored his commission into it.
This isn’t car sales.
Realtor commissions are out of control. The current percentages may have been reasonable 30-40 years ago, when homes were a fraction of what they cost now - but those commissions now are ridiculous. An industry-wide reform in both US and Canada is well overdue.
Their pay goes up as the value of assets they don't own increases... clever trick.
The cost of running a business has gone up significantly as well.
@@thestephaniepaxton still doesn't merit the level of compensation realtors receive
These guys don’t even leave the office anymore.
@@hwy99 The great news is, you don’t have to use a realtor. You can list your own home and buy a home without an agent.
Excellent information! Thank you, Leigh…you’re our calm in today’s real estate storm! 💙🏡💙
Changing lawyer comp in class action lawsuits will do more to change frivolous lawsuits being brought than anything. Ironic the lawyers will have an ungodly large payday for a suit alleging someone else is making too much money. 😂
This is sooo true. Can we sue the lawfirm for charging too much to the plaintiffs
Ketchmark should be sued for libel for calling NAR a cartel@@melissapadilla9628
Beautifully pointed out Paula!🤣
😂
a realtor make half my salary on 1 house sale of 500,000. and I'm the one who builds the house.
To be honest, the system never made sense to me. Essentially, agents are working both sellers and buyers, which by definition is a conflict of interest.
We have designated agency in our states (KS and MO) it’s not allowed to represent both parties in one transaction, that is misrepresentation
"Dual representation" as you've described is not legal in many states. I am in Oregon and it is legal in my state, but I choose not to practice dual representation. I've made that choice because part of my value (i.e. why I earn the commission that I earn) is in negotiation, and when representing both parties I believe it is not possible to represent either one well....certainly not in negotiations. I cannot serve two masters. I can appreciate you saying the system has never made sense to you, and I agree that Realtors can do a FAR better job explaining why the system was designed the way it is. It actually benefits BOTH buyers and sellers to be structured the way that it has been for decades. For buyers, they receive effective representation of their best interests, while not having to pay for a professional Realtor out of pocket. This system has enabled millions of buyers achieve the dream of homeownership. For sellers, the cooperation offered to a buyer's agent who successfully brings a buyer means greater competition for their home, selling faster, and at the most competitively available terms possible. It's much like a marketing budget without having to pay any marketing costs upfront, and not having to pay a separate marketing fee to advertise their home in a wide network of online platforms. It benefits both parties in a real estate transaction. Real estate is complex, and even something that seems simple at first can become quite entangled with zoning, repairs, market nuances, choreographing moving, closing, financing, etc. Good Realtors are worth their weight in gold, and on balance save/make consumers far more $$ than the cost of commissions. I welcome competition in our marketplace. I welcome these conversations. The conversations currently surrounding buyer representation are being spoken by entities that benefit from an unrepresented buyer--and that is a bigger concern for me than who will be paying commission.
Thanks Leigh for your wisdom! I got my Real Estate License at age 18 in 1984. I remember in Texas in 1984 the Residential Contract was one legal page sized document that was front and back typed on type writer. Each page of a contract now is due to a previous lawsuit of some kind. Were now up to approx 50 pages in a purchase contract in Texas. This NAR suit will blow over but will just add more legal addendums to Contracts across the country, "Compensation addendum" on its way soon across the land .....This will be separate document from the buyer rep agreement.
Lots of Realtors commenting on how much money the lawyers are going to make from this and saying nothing about how much the NRA and such have already profited from this 🤔… Common sense should be common… If a “buyers” agent is WORKING for the “buyer”, as you realtors claim. Why then shouldn’t the buyer pay for the work being done for them… If you and I agree as neighbors to share a fence, why should I pay for the entire cost if you also benefit… This is bothering you realtors so much because this will impact your commission.
When you bought your house did you pay your broker? The buyer usually can't, so you pay when you sell. Same concept you just do it later when you sell. Maybe think of it that way. It all comes full circle.
@@melissapadilla9628 - I well understood what occurred when I purchased my home, but that doesn’t make it right. If I could not afford all the services rendered to me me associated with buying a home then I am not ready to buy… Or maybe the banks will allow me to roll that fee into my mortgage… This would be the most transparent path… True, that I benefitted as a buyer and therefore I think this should be phased out over 5/10 years.
@melissapadilla9628 Really great point, actually...
It bothers them because all these years theyve been telling buyers that their services were "free" and now they have to backtrack on that and justify that 3% to the buyer.
@@melissapadilla9628since we"ve been going clockwise on that circle for many many years how about this, lets go counter clockwise. Have your buyer pay your fees and when i become a buyer again after selling ill pay my buyers fees so your seller wont have to worry about it....still a full circle. Isnt it 🤔
Such a refreshing perspective! Thank you Lee for taking the time to preach your truth! And oh my gosh, the analogy of swinging a dead cat really had me rolling
Love your take on this ! Lord everyone is confused and dare I say disgusted with what they are doing to our business ! For the professional realtors I stand united for our value is not appreciated or usually understood .. yes we need to continue giving our expertise to buyers and sellers ! Kudos to you ❤️
Great insight, this will be a long process. Love your outlook and approach to continue working because there's a lot no one can control at the moment.
I appreciate you and all you do. Keep helping people!
Since you brought it up… Do realtors cost too much to the consumer? 🤔. Should 1/2 days worth of work(at best) equal 3/4 percent of my home value? 🤔
find yourself another Realtor if they only did half a days worth of work - they are not the real deal
You're dreaming. This is the problem; the lack of knowledge by consumers of what real estate agents do. Most agents work 6-7 days a week, and have to work with sellers who list their home at a ridiculously high price against the recommendation of their agent. Then the sellers blame the agent for the house not selling. All costs of getting the listing to market is borne by the agent, who does not get paid for services already provided until closing. If closing happens. It's ignorance and blame, blame, blame. If everyone was paid by commission rather than salary for performance, you and others would be singing a very different tune.
Leigh great insight as usual, you are spot on, compensation is built around a RE Professionals knowledge not just the transaction itself...angles, evaluations, right answers and guidance so a consumer does not make a disaster of a decision of a life time...well said
6% is a ripoff. There's no arguing that; although I'm sure every realtor will anyway.
Our expertise is priceless! The education, time, knowledge, experiences, negotiation skills, legal knowledge/enforcement, extensive research and not to mention consulting, being a therapist, educator, scheduling inspections, showings, open houses, driving across town and state (gas/wear and tear on vehicle/car insurance/repairs), writing and negotiating contracts, meeting deadlines, calling zoning office, walking through mud, rain, snow and acres of land at times, getting bit by mosquitos, ants, spiders, subjecting ourselves to dangerous situations to make sure that our clients are safe at all times and the list goes on. Also, marketing, paperwork, home staging, photos, data entry, lockbox and other investments required for a real estate agent to perform the job. Keep in mind that this could go on for months without getting paid.
I said all of that to say this, some people have a problem with how much a real estate agent makes. What's next the car salesman commission getting cut?
While your at it, the car sales industry is terrible. Everyone pays a different price for the same car at the same dealership. The middleman economy at its finest.
I can't find the "list" she mentions on the NAR website. Anyone else find it?
Love this video! Thank you for taking the time to make this. So great!
Cope
Guess I shouldn’t be surprised that Realtors hate the outcome of the lawsuit. Monopolies are great for the people that run them.
This is an EXCELLENT SYNOPSIS and I wholeheartedly agree with you Leigh. I’ve been in business for 23 years and I’m passionate about helping my clients with what is typically their largest investment, and I personally am going to continue doing what I do and taking care of my agents aunt Client.
You are the calm cool voice that keeps things in perspective. I believe in the long run, the NAR will prevail on appeal. Keep smiling & keep selling, young lady. Thank you for sharing your observation on this decision. It’s appreciated. 😃🙏🏻
Most are unaware that agents incur several costs that are deducted from their comission and lucky to take home 50% when all said and done. I know of several that have not had a single close this year. The interesting part is the conflict that will now result because the buyers agent will now be negotiating for themselves and the buyer at the same time if the seller is offering too little or 0 in the listing. Is that right? The buyers agent could decline to serve. But then the listing agent gets both clients. Isn't that yet another potential conflict? Looks like just another layer in an already unaffordable real estate market.
The McDonald’s lawsuit is NOT a frivolous suit. Read it before making aspersions.
The brokerage charges commission not agents
Buyers and Sellers have never had to pay a commission. They can do these transactions by themselves if they should elect to. Agency is a representation BY CHOICE if you feel you want a professional to represent you. Sure, a seller doesn't want to pay 6%, but 6% is sure less than these attorney fees. In my market and my MLS, we never had a set rate of commission either. Did our contract not say that Seller pays listing agent and their commission is elected to be shared with a subcontractor? So now we can't pay subcontractors?
Loved the synopsis. Is there a reason this lawsuit come about now? Was there a change by NAR which made it easier to bring this lawsuit today vs. 5, 10, 20, 50 years ago?
New lawsuits already being filed! Realtors are done.
Yes!!!!!😂
Buyer's agents undertake extensive responsibilities for their clients, involving property searches, numerous calls, appointment scheduling, chauffeuring clients to view multiple houses (sometimes over several months), drafting offers, negotiating prices, attending inspections to ensure client satisfaction, guiding through necessary steps for protection, coordinating with legal entities, and being present on closing day. The workload can be substantial, and it feels challenging at times. This is not fair for buyer’s agent. Many buyer only have for their down payment…
I would recommend you educate yourself on the McDonald’s case that you throw out as an example of a frivolous lawsuit. You are parroting exactly what McDonald’s legal team put out into the media narrative, that someone sued over spilled coffee. The reality is that McDonald’s was serving coffee at a dangerously hot l temperature and there had been numerous serious injuries. The woman had to have skin grafts because of the burns she endured and she originally only wanted for her medical expenses to be covered. McDonald’s thought they could win the public opinion against her by making her seem to be unreasonable (which they did) but when they took their chances in court, they lost on the merits because it was found they knew the coffee was being served too hot. They chose to continue selling it at that temperature because it provided them a competitive advantage of letting people purchase coffee at the restaurant and bring it to coworkers and it still be hot when they arrive at work. But stop and think about how hot something has to be in order for it to remain hot even after a 15 minute or longer drive.
I’m FOR tort reform, but please find better examples if you want to describe examples of frivolous lawsuits.
It was absolutely a legitimate lawsuit. The lady was elderly and did not even want to sue them. She just wanted her medical bills paid.
Suing them was a last ditch attempt to cover her own bills and the jury gave her that sum. She did not even try to sue for that much.
100% It made me question how knowledgeable she was about the rest of what she was saying.
well then who pushed for such a large amount? There should be limits on how much a jury can award like in other countries. @@ThatGuyz82
Somebody needs to change the rip off amounts that attorneys make no firm deserves to make 100 million for consulting and arguing a case. That money paid drives up the cost for almost everything.
it could be more than 100 million I thought as that is only 6%. Do know for sure?
I think my favorite part of this video....was her accent. LOL! But seriously, she has a great personality: funny, friendly, and no-nonsense. The video was very informative. I'll be subscribing!
Yes, you go. Thanks for your quick summary I've been trying to recap to others. 😊 Great job, appreciate you👌
Leigh - you are a real professional! Thank you for your thoughts.
Excellent summary!
Seethe
GUILTY, GUILTY, GUILTY. lol. All I need is for something to be listed on MLS. Pricing a house is easy; comps can be found everywhere in every shape and size. Paying 3 or 6% is terrible. I will pay for your time which is equal to about $2000. bye bye realitors.
Now Realitors are going to cry about Tort reform. lol.
Good luck
Yeah but you’re just a troll so…
A realtor could just put your property under contract with a cash offer then re assign it to the end buyer and pocket the difference.
Trust me this is the fairest way, but hey what do I know.
@@skylerrogers3125 I don’t understand that fully
when does this take effect?
Great Information. Thank you
Thank you for this !! D
Define the value first! Love it. Great video
Thank you my Sister in Real Estate!❤
What can we do as an organization?
Plus the brokerage carry the liability insurances. Please just the insurances alone is huge.
It’s a wild time in real estate, as a buyer many… MANY of the research (even with a good agent) is done by the individual. Technology, research online tools, statistics, financial knowledge, county online systems, forums and the classic “anecdotal story” makes buyers more conscious of the amount of time, of their individual own time, that gets pour into such a massive transaction. There could be payout structures based on commission vs. Flat fee. Expectation of hours or value to be brought to the table. Technology is the main disruptor here. Pricing was impacted by it, now commissions, perceived value…. And there will be more.
agreed -often there are - just ask!
The ultimate goal of every useless intermediary is to capture a take rate on the value of the transacted assets, while keeping their own costs fixed. It's the dream of every business to achieve this. It is only sustainable through monopolistic behaviors though.
Useless intermediaries in markets never last forever! They can endure for decades like abusive and exploitative agents have, but eventually economic reality sets in and commissions will come back down to fixed price instead of %.
Excellent video Leigh!
I'll keep this positive. I'm positive that if they showed this video in their next lawsuit the damages awarded will increase.
We will move with the times, there will always be a way
Leigh, I'm glad that you have all your knowledge and experience. However, a lot of realtors don't know anything about houses or zoning or anything. They get their realtors license on Monday and on Tuesday they are making the some commission percentage as you. We need an industry where people who really have knowledge and skills can charge more than realtors who are just starting and don't know anything. In other words, we need competition in the realtor industry.
There’s plenty competition. What you describe is merit pay-I’m a huge fan!!
Ummm, such competition already exists. The most experienced agents get hired more often than inexperienced agents. It’s up to the consumer to vet & choose carefully, just like with anyone else you hire, such as contractors, appliance repair, etc. Do you just hire the first person you talk to?
"Let's complicate the compensation so that no one understands it. Then, let's all agree to overcharge them by leaps and bounds" ~ NAR, some time ago
You might want to get better facts before talking on this. I think your correct on agents need to kept on doing their job. Where I think your incorrect is the lawyer suing the NAR is one of the top trail lawyers in the county, he’s not an ambulance chaser. One of the main issue is WHY a seller is paying for the buyer agent. Please tell me what other deal the buyer is paying for someone working for any buyer. Really want to hear your thoughts on this. No one is saying agent should not be paid, but should be paid by the people they are working for.
DONT UNDERSTAND IF IM(SELLER) STUCK PAYING FOR BUYERS AGENT
Wow, $30,000 to sell a house worth $500,000. Does that sit well with you? You should explain where the commission goes, so the public gets the whole picture.
The buyer & broker agreement legally outlines this information and for the last 10 years I've heard RE agents say they don't need them and don't use them because they scare away buyers.
RE agents and LO's used to have even commissions and after the NMLS was introduced and LO's pay changed agents increased their commission percentages.
To hear an agent talk about everything they do and then talk about the LO's tasks to perform in a transaction... sounds like you clients talk about you the way you talk about LO's.
We're rude and stupid. Like a crack in the windshield, it just keeps growing.
I bought and sold several properties without real estate agents. The commissions they charge are just stupid. Learn how to do it yourself. It’s easy.
Thank you, Leigh, for highlighting that the lawyers are going to make a huge payday. How can anyone think that money was not the primary motivation behind these lawsuits?
Cope harder. They wouldn't have that if realtors weren't cheats.
Oh you mean like realtors primary motivation being the huge payday when fixing commissions?
@@BushyTop08 If you would take time to read the contract you would see in plain English that commissions are negotiable by law. That you either failed to negotiate or did so poorly is on you.
do you have any idea how much this law firm stands to gain in this suit - probably anywhere between 100-800 million dollars!! That is a huge amount of $ compared to broker fees. Follow the money & you will see the motivation for this lawsuit ! @@BushyTop08
@@gp94403A contract means nothing in the face of a professional monopoly, and that is what this is.
Welcome to the Spin Zone!
a new an improved excuse for the boards and NAR to keep raising their dues...this was the last straw for us...too many other free or affordable tools for us to use...bye bye NAR
Buyer agent doesn't represent the seller, therefore it makes no sense for the seller to pay money to the buyer agent.
RE agents should be paid, question is who pays who.
Wonderful information not based on bias but on facts 👏🏽👏🏽
Good morning, I am realtor in CA and there are a lot of very honest and ethic realtors, who deserve get paid fairly. Sellers and buyers need realtors to protect their best interest, it’s like attorneys, the people always need some knowledgeable and honest professional to help them to succeed in the transaction. I know sometimes there are dishonest realtors or attorneys or doctors but the public always will need the good ones. Let’s focus in the good aspects of every profession and of couse we can make adjustments but please don’t put everybody in the same básquet. Thank you. Have a wonderful and Blessed day! 🥰🙌
@@elperrroverde Agents hang their license with a brokerage and work within the policies set by the brokerage, as members of the MLS and their rules and regulations, and NAR. Why are agents being villified???
You can Become a realtor in 45-60 days and make 250,000 a year or more in year 1
Doctor 10-12 years of school lawyer 10 years, veterinarian 10 years to practice, it’s interesting hearing all the realtors talk about all the knowledge they have and how they are worth so much, I don’t have an opinion on this but it’s cool to hear it all, my brother is a realtor in NM and made 945,000 last year he’s a selling fool but he’s way overpaid lol😂 NRA will never make sense to a jury that works 265 days a year and make 42,000 a year.
My brother....NFL, MLB, NBA players are making hundreds of millions of dollars in a sport. Saving 0 lives, 0 courtrooms and 0 real estate investing
Seethe and cope
Good video. Thanks.
potential homebuyers are now on the hook. Sellers win and screw buyers and NAR. those fees were to entice realtors to show sellers home to buyer. I am not paying for someone else's advertisements to me. the seller should pay to advertise themselves not the buyer
Very much appreciate this video and everything you do. I'm also happy to report that Ralph Nader is still alive.
When we take a listing and sellers signed a listing agreement they are very aware how much commission they are agreeing to pay and they know exactly how many % is being offer to the buyer’s agent . Everything is very transparency.
You're missing a party to the transaction genius.
I agree. How are they able to win a lawsuit. No one forced them to sign the agreement. There are many realtors per city. Or they could find their own buyer and go thru an attorney.
@@melissapadilla9628 Yeah, of course you don't get it. You obviously don't have a clue what the suit is about.
@@jeff1872t Are you in the profession? Probably not. Being in the profession for 18 years and a qualifying broker. So I think your quick to pass judgement without knowledge yourself. Unless of course you went to school and have a license. Do you read contracts on a daily basis did you take real estate law? Where are your credentials to make your comments. Hmmm. We know what the suit is about. Everything we do is VERY Transparent. This is what the comment was about. I get they think the commissions are high but if you read the comment you commented on, the sellers sign a transparent agreement. Which they DO Not have to agree to and there are different options.
@@melissapadilla9628 I've been in the industry for over 2 decades but not as an RE agent. Sit down and admit your commissions are not negotiable by the buyers. In fact don't tell me, tell it to the courts with your big brain understanding of RE law. Bye....
Tort reform? Lol.
Wow, this is ugly but we still have to make a living and help our clients buy and sell!!! The lawyers will get all of the money and the consumers will lose the most in the end... very sad!
Thank you, from a fellow Realtor! This was a wonderful video!!!!
Leigh I really enjoyed you. I agree with everything you said. We cannot stop working or give up, we have clients we still need to help. This is so sad what this world is coming to, everybody wants to sue somebody. This system works and now lawyers just want to mess this up. Dont try to fix what's not broken.
Don't forget the 1.78B judgment against the NAR can be tripled if it is proven U.S. anti-trust laws have been violated. Also, other states could also file suit as well.
Beautifully said
Bye Bye useless realtors. Tell the truth about negotiating commissions. 6% is outrageous.
fine...go try to sell it on your own
It just makes me mad as a hornet!
hope all realtors lose their butts.. You guys made way too much money off people's hard earned Equity.. Ten day sales 20 to 50 thousand Commissions is ridiculous.. I hope you get screwed by this new law
Absolutely, thank you
Not a surprise with those two.
BS buyers use the internet. Buyers agents do very little!
they should've asked this lady to come to court with them, probably would have had a better shot at winning 😂 the CEO of the association did step down maybe she could do that, def knowledgeable and she could talk a drowning person into buying bottled water!
Great job!! Thank you!!
Thank you for this! I was freaking out 😬
Realtors need to stop price fixing. A buyer agent doesn’t deserve / need 3% of a sale, they should be getting a flat fee or service based fee. There is no different service based solely on price point of home. The industry is not transparent and is based on misinformation and misrepresentation.
How do you figure that? The commission is well known and has been for years. Also the commission is often reduced to a 5% split and sometimes lower. You can alway negotiate the commission. Explain how working with a buyer isn’t work.
@@rstvanman1999 I’m arguing that buyers should pay directly to buyer agent for their services. And that it shouldn’t be tied to the price of the home. Of course agents need to get paid, but percentage based for the buyer is ridiculous. I think it is a different story for the seller tho. The buyer agent shouldn’t be acting as a salesman, they should be working at the request and directly and only for the buyer. For example, charging for a la carte services up front.
Realtors do not price fix; market value is set by homes that have sold and that are like in kind. Plus, sellers are often the ones that determine the price and this comment is based on experience. Not just mine, but also other realtors.
A buyer realtor and a seller realtor do deserve their commission. Real estate is not about putting a sign up. A lot of work is invested by both sides, and unless you have been in the field you have no business determining what a realtor makes.
There is no price-fixing. Each listing agreement determines what is offered, and I can tell you the offerings are all over the board.
@@backhomenm clearly you must have not heard the verdict, a unanimous jury just agreed that realtors price fix commissions. I never said realtors don’t deserve to get paid, everyone deserves to get paid. But it should be for actual services performed, not based on a percentage of home price. Buyers should be charged for comparative market assessments, negotiations, writing of contracts. The services should not be free. Currently as it is, with sellers mainly paying the buyer agent, the commissions agents are paid are inflated from what the true market would actually pay for the services. Y’all might see the value in it, but once people have to pay it directly out of their own pocket to buy a home, people won’t pay for it, or will want it at a much reduced cost, or less services. Basically buyer representation needs to change.
Luv u!
Great info
You are so awesome
Incarcerated seller... (smiles)
Go back to waiting tables! Home buyers (like myself currently) don't need someone to unlock a door at a showing than operate in THEIR best interest with MY money.
Torture Reform!!!
I think Realtors get paid way too much money. You can blow up their importance all you want…. It’s gross how they are just vultures in human form….
Have you ever walked in the shoes of a real estate agent? Not talking about the ones who sell the mega million mansions. There are times they list a property, put their own $ out for photographer & videos, spend a lot of time and then seller decides to take house off market and they are 0 compensated. Also a transaction that can take months to come to closing can falls apart at the last minute and they are not compensated for all their time spent. Also a buyers agent can show buyers dozens of home and then the buyer changes their mind & moves somewhere else - once again there's no compensation for their gas or time. So yes sometimes the broker fees are considerable but they make up for the ones that don't result in a settlement
It means home values will continue to decline.
💖
You can Become a realtor in 45-60 days and make 250,000 a year or more in year 1
Doctor 10-12 years of school lawyer 10 years, veterinarian 10 years to practice, it’s interesting hearing all the realtors talk about all the knowledge they have and how they are worth so much, I don’t have an opinion on this but it’s cool to hear it all, my brother is a realtor in NM and made 945,000 last year he’s a selling fool but he’s way overpaid lol😂 NRA will never make sense to a jury that works 265 days a year and make 42,000 a year.
@EdgeTradingFX- You don't work 8hrs a day for 60 days on 1 deal. A lot of your time is just waiting while yo are watching TV or playing golf. . But theoretically a lot of agents make a decent living with 5 deals a year. There are way too many realtors. Eventually, agents will be there but most of yo will work harder on a lot more deals for a lot less money on each deal. Agents' value is important but tons of realtors making more than a neurosurgeon (requiring 15 years of training)- that's a disgrace to the society.
personally, as a buyer i wouldn't want to pay more that 5k flat fee to an agent esp if I find 3-5 homes myself that I need to choose from.
@EdgeTradingFX- your giving false information the average income in New Mexico was 75,560. And I disagree I have seen way to many realtors come in the game and make 100,000 year 1 or more and why is they lady in the video saying the lawyers are doing this for the money ??? That’s irrelevant what’s relevant is a jury of Americans agree with the lawyers that won. Heck she does her job for the money we all work for money so why even say they are doing it for the money ??? She sounds silly saying they are doing it for the money well she’s in real estate for the money. Lol