BREAKING: This Real Estate Commission Lawsuit Just Got Real
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- čas přidán 20. 09. 2023
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The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
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Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
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That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
I've shuffled through investment consultants and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit. For me, ‘’Stacie Lynn Winson” turned out to be better and smarter than all the consultant I ever worked with till date, I’ve never met anyone with as much conviction.
Agent here. There’s no way in hell most buyers are going to pay 3% and have it rolled into their loan. They’re just not going to do it.
That's right. I'm a buyer. I'm fully capable of buying my next home without an agent. I buy lots of stuff without an agent.
Or May be willing to hire you for 1000 bucks flat fee. Take it or leave it.
I totally agree. The buyer ho needs the most help because of lack of experience can’t afford to pay. Buyers with many previous purchases don’t need to pay because they can negotiate themselves. Good luck for realtors
You folks are who I love to see as a listing agent. That is sarcasm btw.
Why don’t you just get your license and bank the commissions yourself? Or work as agents for other folks? C’mon, you have it down pat. You know the drill. I mean you’ve bought before with an agent. With all that knowledge and experience you might as well join the industry!
@@MrJzarzy We don't want to commit crimes (price fixing and steering), for a buck. We have integrity.
This won’t work because the listing agent will always have the sellers best interest it would be an unfair obligation making it a huge conflict of interest and attorneys will win in the short term and the long term. Case studies are continually rise within FSBO sector Because of the non disclosure factor some buyers are simply not educated enough to purchase a preowned home by themselves. it’s not like commercial real estate were most buyers are going to be accredited and financially sound you going to have buyers left hanging. The business model of the seven tier will also be effective in this way. National Associations Of Realtors is one of the biggest lobbyists organizations and have quadrupled their membership significantly over the last few years if this does happen then the National Association of Realtors would’ve lost its credibility and prowess to protect its members bottom line.
The majority of modern countries still use buyer and seller agents. Canada and Japan both to name examples. I think it’s not good for anyone for buyer agency to go away
I think ithe percentage is the problem. Especially how high home prices are.
@@checo8187well, that’s because you were programmed by the news to think that. When you can have an agent represent you and your kids can’t have an agent represent you because this lawsuit favored the sellers, and you get screwed because you don’t know how to do due diligence on the home inspections, negotiate, understand what programs are available to you as a consumer to eat up the down payment, or even worse, pay less for an agent to list your home and wander why there aren’t 15 offers, all over asking, and waiving contingencies, you’ll understand it wasn’t the commission percentage.
My family in Sweden and England do not have buyers agent and they comment how they wish there were buyer agents because they never know what they are truly buying. I was excited to hear your take on this. Loved the back and forth toward the end. Fun fact: when I was about 21 I hired a car broker to represent me at the dealership for $1000 wrote him a check after deal was done. Referal from my boss…he did all the negotiations and gave me a run down of how it would happen and gave me clues of when to chime in and went to pretend I didn’t care. It was the best $1000 I ever spent. He yelled and negotiated, told them to kick rocks, it was awesome! ….I walked out with a brand new car ❤
Voluntary is great, thats what YOU chose to do for you. What is different is I myself,, am FORCED to pay a buyers fee to buy a car. And I DONT want one because I am competent in my ability to negotiate. See the difference??
@@uncommonsense5876 but there is more to it than finding a house on line and negotiating. The are so many things that get done behind the scenes. We don’t tell you every step we take and the time it takes. Time is of the essence in real estate and I’m not sure how you think you can do your real job and take care of all of the things that come up. If I’m the listing agent I’m not discounting my fee to pick up where novice buyers are incapable. I’m sorry-you don’t know what you don’t know . I’ll have to hire more staff to work with buyers unrepresentative. And since buyers agents won’t be bringing me qualified buyers I’ll have to have staff qualifying them and going out to find buyers.
My last buyer would never have owned a home without representation and negotiation to help them get the funds they needed to close. They started off wanting a lease and then realized they actually could own a home. They are now homeowners. My buyers paid the seller, seller paid their agent, their agent compensated me so my buyer actually financed my commission in a round about way.
Buyer always brings the money to table.
First of all everyone is confused. We are all transactional broker working with both parties in finding a neutral ground. Exception is single agency. Read your listing agreements. The listing agents charges 6% and pays the transactional cooperating agent what they agree on mls as per mls usage.
The same can happen once all the defendants settle, except, your commission will be cut in half. That's the whole point of the litigation. Agent fees are twice what they should be due to Sherman Antitrust Act violations (price fixing and steering).
@thelemusteam That's the whole point of these lawsuits. Every layman knows that the listing agent splits their commission with a buyer's agent hence why they are paying 5-6%. So now with the Buyer's agent's commissions taken out, the Sellers can now negotiate to only pay 1.5 to 3% commission at closing. Some agent will be willing take advantage of this just to get a listing and beat the competition.
@@larryjones9773 There's no price fixing. It's how much people are willing to pay for real estate services vs how much is the agent willing to work for. Sure an agent can charge 10% commission but doesn't mean the seller is willing to pay that. Conversely the listing agent can only work for $1000 flat fee + 1.5% to buyer's agent. Doesn't mean the buyer's agent will bring his/her clients to this listing when others on the MLS are offering 2.5 to 3%. Furthermore, will the listing agent be fine working for $1000 to sell a $500,000+ house? If so then it's all good.
I am a Realtor in Interior British Columbia, Canada. Up here it is all about "Buyer Protection" If a Seller wants to save on fees they do a "MERE Posting" on the MLS. They cut out using a Sellers agent. Our total fees are often between 3% and about 3.75% divided between the buyer and seller agent. There are also discount brokerages that will list a home for a total of 1% ( .5% for each agent) We are not allowed to give dual agency. If I get a buyer off my listing I have to get another buyers agent to represent them. Just some trivia from Canada:)
That will be the future in the US as well. The bar for entry to become a realtor in the US is so low and there way too many realtors. it’s about time a lot of them get out of this business of easy money.
1% would be .5% per side, not .05%.
Listing agents win because they control the inventory. Marketing costs will go up of course since you will have to pay the national portals. It could get very expensive to do that since they have lost all the buyer leads business. It will go back to national brokerage websites. We could also see listing agents INCREASE their commissions for the extra marketing and paying a team to manage all the increased work. So imagine going from 6% to 4 or 5 percent just for the seller to cover the extra cost and listing agent's control. It becomes more difficult for buyers, no matter what. Especially financially risky or challenged buyers who can't afford to pay a buyer's agent commission. Wealthy buyers will still continue to pay a buyer's agent. Those who can afford lawyers, retain lawyers. Those that can't, go unrepresented and get screwed.
Exactly it will come down to the same thing nobody is going to work double for less commission, so the listing agents are going to have to increase commissions to the 5,6 % or even more
YOU ARE ABSOLUTELY CORRECT.
You guys are delusional. Still trying to protect an antiquated model and entitlement.
Fantastic video, but one of the subjects not touched in this video is the fact that if we lose our Buyer's Agents and everyone works with the Listing Agent this now causes a case of Dual Agency and that is not legal in many jurisdictions. I am very sorry to see the two defendants fold and settle as I cannot see any possible win for the Plaintiffs. I agree with your argument, that the Seller voluntarily signed the sale at the closing with full knowledge of the Buyer's Agent being paid from the commission. Buyers need to be educated that the Listing Agent has a Boss, the Seller. He has a fiduciary duty to protect his clients privacy and rights as well as to negotiate the best possible price for the Seller. The last person a Buyer should ever call is the Agent who's name is on the For Sale sign.
Brandon is right. I sold a home without an agent and the buyer asked for the commission reduction. I said no and got the full price. The reason I won't do it again is because it was excruciating! Dealing with people who think that talking smack about my house would make me think about a price reduction, or someone saying they'll buy my house, they just need more time (months out), or they make appointments and don't even call to say they're not coming, or 20 people trampling all over my clean carpets. UGH! No. I hired an agent on my next sale, I couldn't deal with that stress anymore. Sellers want to sell their house on their own to keep every penny their house brings them, BUT dealing with people is a tough job. When you're emotionally attached, it's hard to keep your cool. I told a few people, agents and lawyers off. I felt like I was fighting vultures every day.
Yes
You can beat me with a big stick with the money I saved selling my own homes. Stress? I didn't stress out cashing that check that a realtor would have. When I can save enough to buy a car, I''ll stress out all day, answer phones, clean carpets and lick the kitchen floor. I'm not emotionally attached to wood and drywall, but maybe not everyone is cut out for it. Dealing with people isn't tough if you take charge, stay in charge and don't kiss-ass when someone is rude. You can say "no" nicely and it is your house; you can tell people to leave. You can also have a friend or neighbor play any role you want them too if you need support. Fight the vultures and enjoy the cash.
@@floridaredneck I hear you. Some people can deal with it just fine, others prefer not to invest their time on dealing with people. To each their own.
Most likely solution. Listing agent will have seller sign a separate DISCLOSURE that seller agrees to listing in MLS and pay a buyer agent. Silly loops.
Some of these arguments are insane. "..Emotional agents.." ignoring fiduciary duty sworn by the agent. Let's not have lawyers because they can get emotional when representing their clients. Damn their sworn oath. Let's not have doctors, because insurances cover the cost of patient care and have the deepest pockets for frivolous prescriptions and procedures. Nevermind the hypocratic oath they take. Are you guys serious?
Right! I’ve been a broker over 20 years and have dealt with professional agents the entire time!
Totally agree. buyers AND sellers are emotional. One of the biggest benefits agents provide on both sides is insulating the parties from each other and mitigating the emotion.
I don't think for a minute commission will get cut in half. That's the dirty little secret.
Why would it? My listing agreement says the seller is paying me 6% to get it sold…period. Wether I find the buyer or someone else does….the agreed upon commission is the same.
I dont think any agent is worth 6%
@@sadie9527 it all depends on the seller's situation.
I think that without buyers agents, the listing agents are doing the work of 2 agents for half the pay. There is a lot a follow up with the buyer that I have to do that they have no idea how to handle. Without representation for the buyer, a lot of the deals will fall through.
So if the listing generates those buyer leads for the listing agent, but buyers agent using buyer agents anymore, what good is that going to be? Plus, will listing agents start dropping their commissions to save sellers money, nope, they'll have to work more, so they will charge more. Short term thinking with this lawsuit.
The listing agent has the fiduciary duty to the seller, not to a buyer. Listing agent is now supposed to work both sides of the deal for one commission? That’s not gonna happen.
also Wouldn't the listing agent be in total control and assist the sellers in getting more money? You need both sides in real estate
What if all potential buyers for that listing go to the listing agent to write their offers? I'm thinking this could be a fair housing issue if that occurred. The listing agent would certainly have to document why one of those buyers prevailed (and did the listing agent give the same advice to all buyers for whom he/she wrote offers?
Why not? Real Estate agents are grossly overpaid as it is! They should be legally responsible for what they are listing.
Fsbo Will negotiate and ultimately sell for less if no agent is involved.
This whole lawsuit is nothing more than classic wealth redistribution. The members of each class will likely receive the equivalent of lunch money for a week or two, and the attorneys will rake in millions. It's also unfair market manipulation, in that the unspoken by-product of this mess could be an upset in demand, which will in turn affect supply...and possibly the pricing. In the end, some money will change hands and very little if anything will be done to accomplish the stated agenda. Besides, if they were truly concerned about wrong-doing industry wide, why not sue every single Broker out there? Large law firms are targeting the industry and going after the low hanging fruit, the deep pockets. Next month it will be another industry.
Why don’t we as agents now just do separate individual contracts with each buyers agent to split that commission, instead of paying them right from title to their brokers, it’ll all go to the sellers agent brokerage, then the buyers agent share gets sent from the seller brokerage.
What Dominick was touching on was that home appraisals often look at recently sold similar properties to determine the price, and the prices of those properties include the agent commission. So it’s a question of what came first, the chicken or the egg?!?
Another thought is that 6% commission is not set in stone, commission is always negotiable. So who’s to say that listing agents are not going to be able to still list homes with 5-6% commission???
commission has to be based on the Price of the Home the more expensive the value of the home is the more attn the realtor needs to do get it ready for DAy 1 Open house , maybe stop using the word commission and call it a Professional Fee
The glaring question that screams out is, how is this not automatically de facto dual agency? And if it is, all this emphasis on the seller and listing agency would seem to be trampling all over the buyer and a guaranteed invitation for a buyer's complaint to the DRE.
The most capable agents will adapt. Buyers and sellers will suffer from the change and more lawsuits will follow for buyers who felt they were denied unbiased representation. Dual agency disclosures will also be changed and the states that don’t allow for it will have to rewrite their rules.
Dominic, you are correct. Over time, as folks settle for what they can get (sans agent) the price people will pay will be based on these comprimises.
Great video but would love to hear your thoughts on ,what dual agency and fiduciary duties will look like now working that close with buyers that have no representation.
I was all about this video, until people in the video stared not understanding how economics and accounting work. Two individuals displayed how usless they are and one person actually had a point they tried so hard to undermind.
How will buyers get access to the home? Listing agent only?
If a car gets appraised by Carmax, and you take it to a dealer for trade in, you will not get that amount
Love the back and forth Dominik and Brandon. ❤❤❤❤ I learned a lot today thank you 🙏🏼
I wonder what conversation was had right when they cut the zoom meeting 😂
Brandon, all due respect, these companies are NOT settling because the changes will be better. They are settling because it would cost them an enormous amount of money to fight these lawsuits. Gary Keller said this previously exactly.
I can actually see an "Assist-to-Buy" model developing where there will be buyer agents charging a flat fee. Buyers will probably want representation and will pay that so they don't have to deal with the transaction and negotiations. Hopefully they can get the price of the house down and their fee can be absorbed that way.
It already exists. Called Redfin
Thats the plan. BIG Corp is dismantiling the Association. So they can automate it and finally make profits.
There are so many things wrong with the Real Estate industry that it would take a book to cover. Agents all charge the same fees. That is a violation of the Sherman act. They are a monopoly. Paying 6% commission for the sale of a house is outrageous for what they do. They used to list and show the house when a buyer wanted to see it. Now it is lockbox. They list the house, sign a few papers, then go to closing. If you buy a house for $100,000 you are already in the hole 6%. If you were to sell that home in say 6 months you would need to pay a 6% commission. It is highly unlikely you would get more then what you paid. Although we are in a very inflationary housing market thanks to the real estate agent. It is amazing that these homes actually are appraising? I have been in the real estate business for over 40 years and it just gets worse and worse. What we really need is the market to crash and for the Real Estate industry to be sued for monopolistic behavior.
What they do on a vacant property and showings? Who is going to run around as a buyer agent?
We have added this phrase to our clause regarding commission, "The “SELLER” is both aware of and agrees that the “AGENT” must and will offer a percentage of the agreed upon Real Estate Fee (SELLING SIDE), to any outside agency that provides the “BUYER” and an Offer to Purchase Contract acceptable to the "SELLER". Said commission will also be paid out in full at the time of the closing of the sale". I have been a Realtor in British Columbia, Canada which no longer allows Dual Agency. I am now a Broker in Puerto Vallarta, Mexico and the Vice President of our local Real Estate Board. Dual Agency is still allowed here. As 50% of our Buyers come from the USA, we are all following this very closely. Already we are beginning to see some Sellers with "Attitude" because of this case, even though we are in a different country.
Just signed on with kw. What should I do?
How are the homeowners forced? Didn’t they sign the contract agreeing to the split?
Don’t play dumb.
What if the listing agent still negotiates 4,5,6% commission
I have a feeling the buyer's agent will still get paid. I think commissions will come down to say 4% total, split between the seller and buyer agent. I think there will be times when the buyer is paying 1%, maybe more, but I think there will still be a way it is paid for by the seller. A lot more disclosure about how this all works will be happening, and sellers will be totally aware, but I think for sales to continue to still be smooth, there will be some sort of representation on both sides.
Most buyers and sellers have no need for a realtor. This industry is the same as the travel agent, just a relic of the past. Want to sell you home; look on line at comparable listings in your neighborhood. Want to buy a house; find one you can afford, and that you like. When you buy or sell a car do you hire someone to help you? It is well past time to put this industry to rest.
My argument to the FSBO/List value- I believe there are several homes that I believe could sell for more than on Zillow & Facebook with a Realtor because they are just marketed poorly (only a few pictures used with cell phone, terrible description, etc.). And when I (or a quality agent does take them over) they do sell higher. A NAR statistic is sellers can expect to make up to 15% more with a Realtor than by themselves. As far as the new bill that will be passing for buyer agent commissions no longer being a seller-paid: I'm curious if more auction companies will step forward since commissions can't be rolled in but buyer premiums CAN be.
So what happens in a buyers market when there is a lot more inventory than buyers?
I really appreciate the back and forth. Very illuminating.
Great debate! It's very important to look at all sides in order to come up with the best solutions. We all know that the system has worked. And, with all the disclosures and contract detail, that has increased and improved, why aren't the specific agents that did a lousy job of disclosure, being held accountable? Or for that matter, the independent brokers that are not reigning in rogue agents?
I'm just afraid sellers will be overly swamped with agent calls more than ever and it becomes overly competitive for listings.
Circle prospecting will Rise in this case
@@thaliafernandez1852if circle prospecting rises realtors will get an even worse rap with the public than we already have
@@thaliafernandez1852yea circle prospecting will become oversaturated because it’s the easiest to do.
Competitive markets are always good for the consumers. And moving forward, don’t underestimate the power of artificial intelligence. there will be market places popping up on the Internet, where all you do is put a little bit of information and a few pictures and will create the listing for you. After a lawyer, can do the job for you for a fraction of the cost. It will open a lot of different opportunities. Once this tightly controlled environment of mandatory payment to buyers agent will go away.
@@sing10278 you don’t know what you don’t know.
My hats off to Dominic for standing his ground on a 2 vs 1 debate. I have to agree that there is a correlation between commissions and price of homes. I've lost count of how many sellers want to list over market price to offset the commission expense - Brandon's point does not account for these sellers, keep in mind these sales then become comparables. When you eliminate half of a commission expense seller's may be more reasonable therefore lowering the initial ask to match the suggested sales price - I don't see it being a drastic change but it is definitely there.
What does this mean for curranty listing homes?
If I’m a buyer, I’m willing to pay an agent 3% to represent me, however this cost will be factored into what I’m willing to pay the seller.
This video really got me thinking about the future of real estate! I'll be watching to see what happens next. Thanks for talking about this!
Here’s the problem with one of those so called bidding sites for homes. Who’s verifying contracts per bid? Who’s verifying POF of every offer? Who’s even writing the offers? The buyers? What if they don’t know what they’re signing for? What if they’re just putting in random false offers?
Literally lol
How is it fair to the buyer to not have representation? It’s a HUGE conflict of interest to the listing agent telling the buyer what to do when it’s their loyalty is to the seller. Like what are we even talking about here? 🤷🏾♀️The buyer brings the money. They deserve to be represented and protected. 🏡
Its not, and real estate is suppose to be to protect the consumer.
"Do you believe that homeowners are willing to sell their house for less due to there being no buyers agents?"
My answer, I believe sellers are willing to take a lower contract price, if it means netting the same amount of money.
Realtor sells home for 400k at 6% commission. Seller nets $374k
FSBO lists at 400k, cant sell, somebody comes up and offers $374k, would they take it? I believe yes. Does that transaction get represented in appraisals? Apprently not often. Are buyers smart enough to do this and sellers realize they net the same? Who knows?
How will a listing agent help his seller purchase the next home? No MLS to look inside.
Part 1- Lenders on government loans already tack extra fees on to the buyer's loan amounts Upfront MI and VA funding fees no matter what the appraisal was. It's amazing how it's done when it's to the benefit of the lender, but heck no can't add RE fees on there. We will see where this goes.
Um that's to the benefit of you actually. Those loans are government insured, so if that borrower defaults on the loan the government would take on that debt. Those fees aren't for the mortgage broker, they are for the TAX PAYER... just saying...
At 33.53 Brad said that all these consumers that used to be represented by the buyer's agents are now going directly to the listing agent, and that is how many more conversations "a listing agent is having with prospects" - but those prospects are BUYERS, and outside of the listing agent having the pick of the best buyer for their listing, what good are all those consumers do for the listing agent? He can't represent them on the buyer's side, because there is no more buyer representation, so what's the point? Thoughts?
This method of sellers paying the buyers agent evolved over time and it proved to be the best model! This is going to be terrible. It’s been this way so long we’re walking backwards.
The US has the best model.
Someone sounds nervous.
Best real estate content on CZcams by far! Thanks
Dominic is spot-on here: *a property is worth what the market is willing to pay for it.* That's what Brandon is refusing to acknowledge. Listening to Brandon try to justify his argument with "...but I have an appraisal!" is laughable.
Dominic is spot on. Raise the commissions to 10% and give BAC of 0% and see how this does not work.
Brandon is missing the point of Dominic argument. Even with the FSBO example.
What about dual agency? In some states its not aloud.
Great conversation Brandon. I love it. Be the expert, be the professional, you will stand out far above and beyond the crowd and will be just fine regardless of any market.
I guarantee the quality of service will fall through the floor!!! Listing agents can’t handle 10 buyers on one house, that’s absurd! Why should a buyer trust the a listing Agent??? This is terrible consumer news!
This will be a great real estate business solution to offer flat fee buyer services. Things are changing and it’s ok. Just gotta roll with it
Am i the only one thinking this entire thing is BS? Not many buyers will come up with 3% on top of price if they have to pay for it out of pocket, which screws the buyer. If they can include it with the financining, then buyers will indeed pay for commission, which in turn changes NOTHING. The buy pays for their representation NOW, as their commission is included in the price.
Where are you all getting 3% from? Lol. I'm a realtor in Los Angeles. 2.5% is the standard. Guess what? We are all dreaming if we think the seller commission is 6% or 5%, respectively. That will get cut down to 3% or 2.5% TOTAL. The seller is not going to pay us to represent the buyer. Time to get into wholesale.
@@mattfloresrealtor you'd just collect the commission from seller as a listing agent. Buyer will go unrepresented.
3% of standard in my market
@@mattfloresrealtor perhaps in lower priced markets, 3% per side is the average. Im in North Jersey by NYC and yes, more often than not it's 2.5%. But as we all know, it can be anything, nothing written in stone.
The standard is eroding and soon it will be completely gone with AI 🤯
To sum up your debate on FSBO….both sides are trying to save the same commission. That’s why they often don’t work. Sellers don’t want to take less and buyers expect to pay less and occasionally they can negotiate their way to middle ground.
Sorry Dominic is an idiot if he can't see the difference between what a SALES~MARKET price is vs an appraised price is, the whole purpose of the agent is to get Max value in the transaction and sell it faster...what % is paid out is irrelevant...in his example of a 500k house...what if that agent got 525k for it minus 3%
Sounds like we might be going right back to sub-agents. Where there’s another agent assigned by the listing agent to work with the buyers yet still have a fiduciary responsibility to that seller. In Texas, that was a problem. Buyers need unbiased representation. 1 in 10 buyers can navigate this process just fine. 9 of 10 absolutely struggle!!!
Agent here. More work for LA, Less guidance for Buyer, Lower home prices for sellers (less showings), Higher commissions for LA, MLS to start changing (higher) fees for LA and Buyer agency will survive as soon as the first lawsuit settles when a LA doesn't disclose information to Buyer after closing during Dual Agency.
This will have an effect with some NMLS loan officers. Some states allow for a real estate broker/agents to be NMLS licensed as well. CA DRE is one of them. We have had discussions about offering buyer's agent services at no cost in conjunction with mortgage loan services. One of the ideas is giving the seller the possibility of paying $0 real estate commissions on some transactions. We are discussing best practices now and keeping a close eye on this case.
at 22:30 is spot on.. I agree that a large corporate entity will get involved and future home buyers will be buying homes like they buy used cars at a lot..
The leads that come in from listings are mostly buyers. So they wouldn't be good leads if you can not represent the buyer. You could only get the one that buys your listing
Great discussion. One point I want to clarify. If multiple offers add $40,000 to a $400,000 listing, the seller will only save $1200 (3% commission of the additional $40,000) because there is no buyer's agent, not $12,000.
How it's going to benefit sellers? Gosh! I'm a listing agent and I strongly believe that this will be a caos! The property prices will drop heavily, the gaming rules will change and won't be good... This model is nonsense. There will be a lot of competition between LA and besides, a the unemployment will be higher... Gosh! the only argument is the commission, they need to understand it's in the sales prices if there is no commission offered to the buyer's agent, the offers will be lower, plus the LA will need to spend more money in Advertisement and work double for only 3% or maybe 1% because there are a lot of LA that lower commissions just to get the listing
! Is this real?
It's funny that the auction was brought up around the 27 minute mark. That's how we sell real estate that works to get the most money for our sellers 😊
from all of this, however good or bad it is, it always comes out being not good, in order to get better overtime. Its a bit twisted what is happening. but at the end, it is a business , and business is war, the buyers agent will have to find a way to make it work and get on the listing side.
What about negotiating repairs and move out times? loan dead lines, not closing on time, and extentions. Not having a buyers agents puts too much pressure on the listing agent to represent both sides.
This is what RE attorneys are for
Agent here. In these other countries/markets that run off this model of not having buyers agent…what about non-consistent contracts. How as a sellers agent are you able to beat represent the seller when you are receiving various contracts with various language? Seems like legally could open up many issues.
This is really interesting to see how this develops over the next few years
My question is how many offers can the listing offer write on one property at a time? It would be impossible to write multiple offers at one time. It takes time to show property & write up a good solid offer. How could a realtor work with 5 buyers on one house? I dont believe they can.
7:06 not to mention VA buyers cannot pay their realtors… So that’s gonna leave a lot of changes to have to happen on that end or VA buyers having to have no representation which is just not right
At 40:16 mark, WRONG, I specifically raised the price on my house to cover the agent fees. So you are wrong to assume people don't factor in these percentages they have to pay out when they sell a home.
Thank you Brandon for covering this story this the most important real estate topic!
Sellers will have to spend more money marketing their house or drop the price and/or sell it at auction. The number of buyer agents create more exposure and higher prices. If buyer agents disappear.. sellers will sell for less. Sellers would spend a fortune attempting to get the same exposure they can get from thousands of buyers agents.
BTW, thank you Brandon for addressing this industry challenge.
16:21 why would the seller pay for the advertising ? I don’t see that at all. We will still pay to market our own listings and bring buyers directly
Also, what’s stopping buyer agents from just assigning the contract if they have a buyer who’s willing to pay more and doesn’t want to pay for representation?
This is going to back fire on so many levels for home owners
How do you say that if you cut out paying a buyers agent the seller is cut off? If the bueyrs agent is workin for the buyer they should stil be showing it. I dont know you you understand that yourself. They are supposed to be showing the buyer anything that would work for them be it for sale by owner or any listing that would work. They still show fisbos and get paid.
Banks will adjust in time to include buyers agent payments. It will take time to get to this point. It all comes down to fiduciary responsibility in the transaction . No more selling both sides.
I'm only 14 minutes into the video so I don't know if it's going to cover what I'm about to say but: to my understanding, the seller never paid buyer agent commission. The seller paid for listing agent representation and then the listing agent shares their commission with the buyers agent ...
I don't understand how a seller was forced to pay buyer agent commission when it's the listing agent that has to give half of their commission to the buyers agent.
I'm pretty sure we'll some version of the following written into the "other terms" section of the purchase agreement: "Seller to pay Buyer's Broker commission of 2.5% of the final sales price."
Exactly.👍
@39:50 real estate commissions and % are on the closing disclosure
Do these companies that have settled have any interests in vendor paid advertising?
I’m not sure what Ben is saying regarding emotional agents. When I list a home I’m not an emotional agent. When I act as a buyers agent I become an emotional agent?
I understood it as sometimes the other agent gets emotional.
@@miguelvasquez4518 I hear you. However it came across that a buyers agent is emotional but a listing agent is not. So one day you’re listing. Not emotional. Next transaction you’re representing the buy and you’re emotional. That didn’t seem to make sense to me?
I remember a time early 90's when we never talked about "buyer agency" or offered it. We still offered compensation in our MLS. It worked.
Here are 3 arguments/questions that NAR could use:
1) Sellers are explained abt commish just as lawyers explain their retainers. Sellers do not tell lawyers how to use their fees in their firm.
2) Just bc sellers don’t want to pay buyer agts, doesn’t mean commish will be less. Listing agts can still charge higher rates and keep for themselves. So 4, 5, 6% now go to the seller’s agt only.
3) US mkt is suppose to free enterprise and what a listing does with their commish is free enterprise. How is it fair for sellers to dictate how their Agt use their fees?
Last thing, can the RE industry change the practice where listers can pay the buyers Agt a marketing fee or buyer agts become full on RE marketers and get paid for marketing only?
Any thoughts?
I think the listing agent is going to work much harder vetting all these buyers who are unrepresented.
Go ahead and try it. Us buyers will sue you again.
How can you expect a realtor to work harder? That’s an oxymoron. Lol.
Part 2- with the over abundance of agents in the marketplace, buyer agents trying to make the switch will cut their fees just to survive creating even a greater compression on RE fees to try an inch thier way into a market they weren't in... only time will tell
The way I look at it a buyers agent is a listing agent we all take the same course to get licensed rules and regulations change we have to adapt buyers evolve to listing
If "listing agents" are doing more work to communicate with a seller and an unrepresented buyer then do we think they will decrease their commissions to sell a house? Probably not. Will REALTORS, brokerages, and NAR decrease their gross revenue and sell homes for 3% instead of 6%? Probably not. This lawsuit has the potential to exacerbate the affordability issues for buyers (especially first time home buyers), and will likely increase listing commissions to sell a house due to lost revenue on the buy side from brokerages.
Great debate!