BREAKING!!! The Real Estate Commission Lawsuit Will Destroy Real Estate Agents!
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- čas přidán 28. 08. 2024
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SO…YOU WANT TO BE A REALTOR
There is a lot of talk in the news about real estate agent commissions. They LOVE what they do and they do it because they LOVE helping people but there is almost always a huge misconception on what they do and how they get paid. It's not a secret so here ya go...😊
The average FULL TIME REALTOR’s earnings last year was $31,900 @ 40+ hours a week. (Notice I wrote full time 40+ hours not 0-20 hours a week) which is well below the living wage. As a REALTOR they do not get paid a hourly wage or salary and they
only get paid if they sell a home and it closes. They can only get paid by broker to broker. As an agent you could work with someone days, weeks, months, or years with no guarantee of a sale ever.
Essentially they wake up each day unemployed going on Job Interviews and they deal with constant rejection. They dedicate time away from family, use our time, gas, pay for babysitters, miss dinner and weekends and rarely take vacations. They are on 24/7! You constantly need to be on, or you could miss an opportunity. Once they do close a home, half goes to the other persons agent from the remaining half. They have lots of upfront expenses that must be paid out before they even get paid:
Broker Splits and Fees
Office rent and utilities
MLS Fees
NAR Fees
Local Association Fees
E&O Business Insurance
Extended Auto Insurance
Self-Employment Tax
State Licensing Fees
Advertising Fees
Showing Service Fees
Website Fees
Assistant's Salaries
Showing partners
Transaction coordinator
Yard Signs
Photographers
Videographers
Office Supplies
Business Cards
Property Flyers
Electronic Lockboxes
Continued RE Education
Legal Fees
Gas
Income taxes are not taken out so they have to put that aside around 25-30%.
Don’t forget health insurance if you don’t have a spouse who provides it.
As a listing agent they have lots of tasks far more than just selling a home.
1. Prepare Listing Presentation for Sellers
2. Research Sellers Property Tax Info
3. Research Comparable Sold Properties for Sellers
4. Determine Average Days on Market
5. Gather Info From Sellers About Their Home
6. Meet With Sellers at Their Home
7. Get To Know Their Home
8. Present Listing Presentation
9. Advise on Repairs and/or Upgrades
10. Provide Home Seller To-Do Checklist
11. Explain Current Market Conditions
12. Discuss Seller’s Goals
13. Share Your Value Proposition
14. Explain Benefits of Your Brokerage
15. Present Your Marketing Options
16. Explain Video Marketing Strategies
17. Demonstrate 3D Tour Marketing
18. Explain Buyer & Seller Agency Relationships
19. Describe the Buyer Pre-Screening Process
20. Create Internal File for Transaction
21. Get Listing Agreement & Disclosures Signed
22. Provide Sellers Disclosure Form to Sellers
23. Verify Interior Room Sizes
24. Obtain Current Mortgage Loan Info
25. Confirm Lot Size from County Tax Records
26. Investigate Any Unrecorded Property Easements
27. Establish Showing Instructions for Buyers
28. Agree on Showing Times with Sellers
29. Discuss Different Types of Buyer Financing
30. Explain Appraisal Process and Pitfalls
31. Verify Home Owners Association Fees
32. Obtain a Copy of HOA Bylaws
33. Gather Transferable Warranties
34. Determine Need for Lead-Based Paint Disclosure
35. Verify Security System Ownership
36. Discuss Video Recording Devices & Showings
37. Determine Property Inclusions & Exclusions
38. Agree on Repairs to Made Before Listing
39. Schedule Staging Consultation
40. Schedule House Cleaners
41. Install Electronic Lockbox & Yard Sign
42. Set-Up Photo/Video Shoot
43. Meet Photographer at Property
44. Prepare Home For Photographer
45. Schedule Drone & 3D Tour Shoot
46. Get Seller’s Approval of All Marketing Materials
47. Input Property Listing Into The MLS
48. Create Virtual Tour Page
49. Verify Listing Data on 3rd Party Websites
50. Have Listing Proofread
51. Create Property Flyer
52. Have Extra Keys Made for Lockbox
53. Set-Up Showing Services
54. Help Owners Coordinate Showings
55. Gather Feedback After Each Showing
56. Keep track of Showing Activity
57. Update MLS Listing as Needed
58. Schedule Weekly Update Calls with Seller
59. Prepare “Net Sheet” For All Offers
60. Present All Offers to Seller
61. Obtain Pre-Approval Letter from Buyer’s Agent
62. Examine & Verify Buyer’s Qualifications
63. Examine & Verify Buyer’s Lender
64. Negotiate All Offers
65. Once Under Contract, Send to Title Company
66. Check Buyer’s Agent Has Received Copies
67. Change Property Status in MLS
68. Deliver Copies of Contact/Addendum to Seller
69. Keep Track of Copies for Office File
70. Coordinate Inspections with Sellers
71. Explain Buyer’s Inspection Objections to Sellers
72. Determine Seller’s Inspection Resolution
73. Get All Repair Agreements in Writing
74. Refer Trustworthy Contractors to Sellers
75. Meet Appraiser at the Property
76. Negotiate Any Unsatisfactory Appraisals
77. Confirm Clear-to-Close
78. Coordinate Closing Times & Location
79. Verify Title Company Has All Docs
80. Remind Sellers to Transfer Utilities
81. Make Sure All Parties Are Notified of Closing Time
82. Resolve Any Title Issues Before Closing
83. Receive and Carefully Review Closing Docs
84. Review Closing Figures With Seller
85. Confirm Repairs Have Been Made
86. Resolve Any Last Minute Issues
87. Attend Seller’s Closing
88. Pick Up Sign & Lock Box
89. Change Status in MLS to “Sold.”
90. Close Out Seller’s File With Brokerage
As a buyers agent they also have many tasks.

1. Schedule Time To Meet Buyers
2. Prepare Buyers Guide & Presentation
3. Meet Buyers and Discuss Their Goals
4. Explain Buyer & Seller Agency Relationships
5. Discuss Different Types of Financing Options
6. Help Buyers Find a Mortgage Lender
7. Obtain Pre-Approval Letter from Their Lender
8. Explain What You Do For Buyers As A Realtor
9. Provide Overview of Current Market Conditions
10. Explain Your Company’s Value to Buyers
11. Discuss Earnest Money Deposits
12. Explain Home Inspection Process
13. Educate Buyers About Local Neighborhoods
14. Discuss Foreclosures & Short Sales
15. Gather Needs & Wants Of Their Next Home
16. Explain School Districts Effect on Home Values
17. Explain Recording Devices During Showings
18. Learn All Buyer Goals & Make A Plan
19. Create Internal File for Buyers Records
20. Send Buyers Homes Within Their Criteria
21. Start Showing Buyers Home That They Request
22. Schedule & Organize All Showings
23. Gather Showing Instructions for Each Listing
24. Send Showing Schedule to Buyers
25. Show Up Early and Prepare First Showing
26. Look For Possible Repair Issues While Showing
27. Gather Buyer Feedback After Each Showing
28. Update Buyers When New Homes Hit the Market
29. Share Knowledge & Insight About Homes
30. Guide Buyers Through Their Emotional Journey
31. Listen & Learn From Buyers At Each Showing
32. Keep Records of All Showings
33. Update Listing Agents with Buyer’s Feedback
34. Discuss Home Owner’s Associations
35. Estimate Expected Utility Usage Costs
36. Confirm Water Source and Status
37. Discuss Transferable Warranties
38. Explain Property Appraisal Process
39. Discuss Multiple Offer Situations
40. Create Practice Offer To Help Buyers Prepare
41. Provide Updated Housing Market Data to Buyers
42. Inform Buyers of Their Showing Activity Weekly
43. Update Buyers On Any Price Drops
44. Discuss MLS Data With Buyers At Showings
45. Find the Right Home for Buyers
46. Determine Property Inclusions & Exclusions
47. Prepare Sales Contract When Buyers are Ready
48. Educate Buyer’s On Sales Contract Options
49. Determine Need for Lead-Based Paint Disclosure
50. Explain Home Warranty Options
51. Update Buyer’s Pre-Approval Letter
52. Discuss Loan Objection Deadlines
53. Choose a Closing Date
54. Verify Listing Data Is Correct
55. Review Comps With Buyers To Determine Value
56. Prepare & Submit Buyer’s Offer to Listing Agent
57. Negotiate Buyers Offer With Listing Agent
58. Execute A Sales Contract & Disclosures
59. Once Under Contract, Send to Title Company
60. Coordinate Earnest Money Drop Off
61. Deliver Copies to Mortgage Lender
62. Obtain Copy of Sellers Disclosure for Buyers
63. Deliver Copies of Contract/Addendum to Buyers
64. Obtain A Copy of HOA Bylaws
65. Keep Track of Copies for Office File
66. Coordinate Inspections with Buyers
67. Meet Inspector At The Property
68. Review Home Inspection with Buyers
69. Negotiate Inspection Objections
70. Get All Agreed Upon Repair Items in Writing
71. Verify any Existing Lease Agreements
72. Check In With Lender To Verify Loan Status
73. Check on the Appraisal Date
74. Negotiate Any Unsatisfactory Appraisals
75. Coordinate Closing Times & Location
76. Make Sure All Documents Are Fully Signed
77. Verify Title Company Has Everything Needed
78. Remind Buyers to Schedule Utilities
79. Make Sure All Parties Are Notified of Closing Time
80. Solve Any Title Problems Before Closing
81. Receive and Review Closing Documents
82. Review Closing Figures With Buyers
83. Confirm Repairs Have Been Made By Sellers
84. Perform Final Walk-Through with Buyers
85. Resolve Any Last Minute Issues
86. Get CDA Signed By Brokerage
87. Attend Closing with Buyers
88. Provide Home Warranty Paperwork
89. Give Keys and Accessories to Buyers
90. Close Out Buyer’s File Brokerage
Whew…exhausting isn’t it!?! 🤯
✨You don't need to buy or sell a home to support your agents real estate business - here are just a few simple ways to show your support! By sharing one of their listings, sending a friend or family member their way, letting them connect you with agents outside their area for a broker to broker referral, or leaving them a positive comment or review, this helps them feel seen and supported - (thanks to you)!
If you’re a Realtor, please feel free to copy & paste
Thank you for writing this. People have zero clue how much work we do. This is exactly why I give my active clients weekly status reports. They have no idea unless we tell them. If they don’t want to pay commission they should be aware of the job they are taking on.
This is fantastic! Thank you!
Wow! 😮 Now, do I want to continue to pursue getting my RE Licence after knowing all these?!
"Whoa" hold the presses! You did all what? All I did was 1.go online, 2.hand wrote the seller a letter. 3. Contacted a local title company, 4. built a house and the rest is profit
Too bad 99%of the realtors DO NOT do all that stuff. Again, is that worth $1000 to $1500 an hour? And in recent years, the title companies have taken a lot of stuff off realtors backs and what do they make for all they do??? Less than $1000 TOTAL as a closing fee Ive seen in most cases. Im not sure even Attorneys make that much as realtors do on a closing. I'll say it again, most (not all) realtors are lazy, act all "bouggie", like they are the reason the house sold forgetting all about the buyer, his agent etc. Most of these homes would sell with or without a realtor and they like to say that they are the reason they got the price when in many cases, once you take out the commission its not that much better. Fees should be flat rate depending on the size and value of the house or at least offer a Lehman system of commissions like in business brokering based on sales price.
As just a regular person who has bought a few houses through the years, I have never seen any value from any real estate agent. I've paid tens of thousands in commissions to have them process my paperwork. I'm excited to see the business model change in the future!
Maybe you had the wrong agent then.
But also for someone with less experience as you an agent is crucial
@@albertajordan5604 please just tell me why? What is the value proposition? Like I said before, I've seen no added value whatsoever from having a real estate agent.
StarbaseTx, Your lack of the transaction process and all that is involved leading up to the transaction is clearly on display with your statement!
@@robertm.5816 Nope. Realtors will not be a thing soon as they do nothing that A.I. and the internet can't do. These days most of us search out and find our own properties, and have inspections done at our own expense. We just need the ability to agree upon a price, warranty and titles, complete paperwork legally, and close the sale. All of which can be done by technology. This is not an industry you would want to go into if you were looking into the future! But, as there is no bar to entry, I'm sure many will try.
Thanks for speaking honestly about the real estate situation. The industry has driven home prices too high for most families. The solution is for prices to align with family budgets, even if it means a market correction.
You're welcome!
The market was inflated by ibuyers not agents
@@mannamedbanjo Agent fees & home prices were inflated by a rigged system. czcams.com/video/HPD0r548bHU/video.html
it's hard to nail down specific predictions for the housing market is because it's not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars
When has anything in America aligned with family budgets? Some of you live in Lala land. You realize the gov't wants you to be poor and dependent on their welfare, right? You realize this will be a predominately 3rd world country full of have nots in a couple decades, right?
Some people need realtor services. However, MANY do not. Technology has enabled buyers and sellers to do most of the legwork. Also, many people prefer to pay a fixed fee for services, not tens of thousands of dollars. The days of big commissions are soon to be over.
7% of sellers choose not to use agent and agent on average sell for 35% less than homes sold by agents.
Most of the public has been so conditioned-brainwashed by the use of fear into thinking sellers can't do it without realtors. With internet, sellers have access to more information - we're not stupid. Flat-fee, FSBO, real estate attorneys, for example. Sure, sometimes people don't want to mess around or take time to self-educate, so it's a good thing they have the option to work with realtors. But I'm talking about the people who want to take control of their own home sale and not hand over thousands of dollars to a realtor just because that's the way the system is set up. I'm glad the system is changing. @@RealEstateCoach
And thank god...
Jackie, I’ve seen buyer agents admit that if they see a seller is offering a buyer’s agent commission of less than 2.5-3.0%, they are less likely and less incentivized to present that property to their buyer. Doesn’t that go directly against their fiduciary duty to their client? I think that’s where the system is broken.
Yes, there may be a perfect fit of a home for the potential buyer, but if the agent doesn't see a high enough commission potential for that perfect home, they won't even mention it to the buyer.
In my state, Florida, our default is transaction brokerage. We do not have fiduciary duty to either party unless they engage us in single agency representation agreements. Going forward, all commissions will be confidential, so I'll just call the listing agent to find out what it is paying or recommend clients look at new construction or developers who are offering compensation to promote their properties. 🙊
@@cian4468But, I thought all the houses are online and it's SO easy? Why can't you just go knock on the door & talk to the Seller yourself. 😂
Vast majority of Realestate agents are uneducated and expect 7% commission fee for planting a stake on your lawn. Would rather go through an attorney and sell my self. Comparing a real estate agent to an attorney is like calling the janitor in my a building a sanitary engineer.
For the most part, the real estate selling and buying has been a criminal operation and a Ponzi scheme. Please Consider the Following:
1) In most countries, the commission is around 1%. But in the U.S., a large number of Parasites decided to use the real estate license, which takes less effort than a high school diploma, to demand 6% commission..!!! .
2) In many cases, the seller and the buyer agents work together to fleece both the seller and the buyer, and share the loot with the Brokers and the Realtors. This encourages collusion among real estate companies to provide sellers and buyers for each other and laugh all the way to the Bank.
3) The game starts with seeking a listing by telling the seller that without a listing agreement the property cannot be posted on multi-listing, and thus trapping the seller into a listing agreement. And to tighten the trap, they encourage some cosmetic work and "staging" for the property and offer $50,000 or more interest free loan for 1-3 months. This set the stage for pushing the seller to lower the original price, or face the additional cost of paying interest.
4) The next step is to ask other agents to visit the property and provide the so-called "Feedback", which is intended to highlight the negative aspects of the property and push the seller to lower the price even further. For every $10,000 deduction in price, the reduction in commission is only few hundred dollars, which the agents are happy to let go to get their money fast.
Good one. Spot on!
It’s long overdue for this system to be changed. How is it fair if a seller has to pay the opposing sides agent to get the best deal out of them? Even if you do for sale by owner, you will still be expected to pay the buyers agent commission.. that’s if any agents even show their clients your home. (Because they know the seller is trying to avoid paying commissions). Even the mafia couldn’t have come up with a better racket
There is requirement to hire a real estate to sell or buy a home.
@@RealEstateCoach it being a requirement is what makes it so wrong. That’s like saying it’s a requirement for a defendant to pay for the prosecuting D.A. if he wants to hire a lawyer. It’s a backwards system that is in the least taking advantage of the seller just because they are about to receive money.
Inherent conflict of interest! Fraud. Deceit. Greed. And collusion. 1,000% illegal, and NAR needs to pay up! They got wealthy, and YOU got scammed!
Well said! No more gravy train for realtors. Long overdue!!
This is the beginning of the end of the way properties will be bought and sold. Maybe a simpler system will emerge. I hope so, because the current system is outrageous.
How much is easier can it be? It’s already a free system!
@RealEstateCoach Sadly, it is not easy. Home purchases are a cash cow for all organizations involved. Everyone gets their overpriced piece of A$$ in the process. Too many middlemen.
@@tamararuke6923 Every seller has the option to do FSBO and agents are never required for any home transaction. It seems to me most people still want realtors to do the grunt work but don't want to pay them. The bottom line is realtors provide a service and guess what? You pay for a service; you don't get it for free or cut rate.
Time to get rid of overpaid commissions. This is a win win for Americans. The only salty ones are the people in the industry who got to ride the 6% gravy train off the backs of hard working Americans.
@@jonlj77My experience exactly. The only ones crying in the comments are greedy agents..
No greed will destroy the profession. As home prices increase, the realtor job doesn't. Adjustments must be made to reflect that.
Actually the realtors job does get tougher. Higher prices and interest rates mean less inventory to choose from. It means you have to spend more time and effort finding the right property for your client because there aren’t many to see. It means more time working on weekends and away from your family to help someone find their perfect home.
People don't seem to understand how stupid it is to hire a guy to talk to a guy to talk to another guy about a deal. The process is too opaque and there is much opportunity for Agents to sway a deal in favor of their agenda such as steering deals to their investor friends, such as pocketing a listing, double ending a deal, such as disparaging certain offers to the seller to sway their decision, such as pretending to make a home available and jerking around potential buyers in various ways including access and responsiveness, such as not presenting your offer, such as collaborating with the other agent on your lowest offer it just never ends there are a few good agents but the process is the problem and you really can't know who the good ones are because you do one deal every 7 or 10 years.
@@curtissharris8914 well for starters that’s why you work with someone you can trust rather than some random. Second, most of what you’re saying is inaccurate and there are ways to combat the dishonest things that those agents might be doing. At the end of the day, it’s upon the seller to ensure they vet the agent and that they monitor the process to make sure it’s done in their best interest.
@@tony97gt I guess your buyers are low end consumers if they haven’t figured out how to find houses for sale on the internet 😅 I’ve read that most buyers look on line and find the properties themselves.
@@goldenparachute392 yeah anyone can buy a house. But most have no idea how to navigate a transaction or keep one together when things go bad. That’s what buyers agents are for. They look out for the best interests of the buyer. Same way you’d hire an attorney to look out for you if you were getting sued by someone who hired an attorney. Not everyone has enough sense to see things in that light though.
One of my biggest complaints with the current system is that it is not in your agents best interest to get you the best price. The less you pay the less they get so honest negotiations is impossible.
Not sure saying “lawyers are thief’s too” is a good argument.
I always sale my properties BY OWNER! I got a RE license just for myself, so I don’t become a victim and maximize my profits ! And YES is hard to find a realtor that is trustworthy!
They're as bad as a used car salesman.
Had 10, all liars
Yes but you have no idea how much you have benefited from realtor system, it provided a super efficient and frictionless system for buyers and sellers, this has a lot to do with the high valuations of real estate similar to how etrade or 401k's boost stock prices. In addition besides only rewarding asset holders this actually created real benefit to the economy because the nra monopoly was really a labor union that spread billions evenly amongst millions of families. 750 thousand people will now lose their jobs, from a social economic perspective this is a race to dystopia in favor of asset holders trading horses (no value to society) The value of reselling homes was already parasitic but now there's no value what so ever. Besides that prices will plumet beyond your imagination over this.
For the most part, the real estate selling and buying has been a criminal operation and a Ponzi scheme. Please Consider the Following:
1) In most countries, the commission is around 1%. But in the U.S., a large number of Parasites decided to use the real estate license, which takes less effort than a high school diploma, to demand 6% commission..!!! .
2) In many cases, the seller and the buyer agents work together to fleece both the seller and the buyer, and share the loot with the Brokers and the Realtors. This encourages collusion among real estate companies to provide sellers and buyers for each other and laugh all the way to the Bank.
3) The game starts with seeking a listing by telling the seller that without a listing agreement the property cannot be posted on multi-listing, and thus trapping the seller into a listing agreement. And to tighten the trap, they encourage some cosmetic work and "staging" for the property and offer $50,000 or more interest free loan for 1-3 months. This set the stage for pushing the seller to lower the original price, or face the additional cost of paying interest.
4) The next step is to ask other agents to visit the property and provide the so-called "Feedback", which is intended to highlight the negative aspects of the property and push the seller to lower the price even further. For every $10,000 deduction in price, the reduction in commission is only few hundred dollars, which the agents are happy to let go to get their money fast.
You leave money on the table is what you do. You think a FSBO buyer doesn't know you're saving that commission? You're targeted by people who take advantage of FSBO searching for a deal. You just don't like agents because they tell you what you don't want to hear.
You just said sellers that list with an agent historically sell for 20-30% more than For sale by Owner. How does this benefit the buyer/consumers?
It doesn't it only inflates the problem. That's why something has to be done. Then on to the next greedy, inflated industry
I wasn't asking a question but thank you for your response. I was just pointing out that the flawed current setup of buyer's agents getting paid a shared commission with selling agent that incentivizes them to sell the house at the maximum price for the highest commission. The buyer agent is not working for the buyer at all. The decoupling of this commission sharing structure is necessary and buyer agents should get paid if they can negotiate a better(lower) price/offer for the buyer, not higher.@@gator9129
The sellers are paying the agent, not the buyer for one thing. Second, the reason why homes listed by agents sell for more is because home owners don't typically know how to negotiate. They get taken advantage of by buyer's trolling the FSBO listings. Buyer's hire agents specifically because it doesn't cost them anything. They're already benefiting.
Exactly. She basically said what part of the problem is and she doesn’t even comprehend it. That is what all realtors think. Damn it’s such a horrible system when you actually sit back and see it holistically.
Artificial intelligence is going to eliminate brokers & agents. Just like everyone else your occupations is not secure.
I recenty sold my house for 1.4 million and it took two weeks to sell on the MLS. Please tell me why the realtor deserves almost 50k
When the realtor brings you an offer at a price that you are willing to accept and the deal closes, the realtor will be paid what you agreed to pay when you listed the property.
@@RealEstateCoach You didn't answer my question. I said why do you think you deserve almost 50k for doing a job that literally anybody could do.
Sellers hire and pay for a real estate agent because they end up netting more money than if don’t hire an agent. It’s not an expense, it’s an investment.
My last three properties I looked on line and call the realtor and ask her to make the appointment and get the lockbox code so we can go and see it. Many times she was “busy” in the end she gets 2-3% for something I did it.
Exactly. Most people find their houses online. As a seller, I am okay paying a commission but a reasonable one.
Yes, many buyers to begin their home search on line and ultimately 93% choose to use an agent to help them buy.
As a seller, your goal is to maximize what you can sell the home for by creating competition. Competition is created through marketing. In other words, the better your agent is, the more time and money they will spend in order to attract the ideal buyer that’s willing to pay the most amount of money.
You certainly don’t need an agent to sell a home or to find a buyer. However, research shows that private sellers sell for 10-20% less than agent assisted sales.
The only way it makes sense to hire an agent is if you ultimately want to put more money in your pocket at the end of the transaction.
It took my agent a couple of months to sell my home, after an initial offer, well above asking, fell through. She was there every weekend doing open house and marketing in between. I was happy to pay the commission once we sold, (which was still at or above comps).
Thanks for sharing!
The data from Europe and Australia would suggest you could have received the same service for half the price. European and Australian sellers aren't forced to pay for the buyer's agent, like you were. You were overcharged and are due a refund.
New builds generally sells themselves in this day. Independent builder here in town bought a quarter acres, built 7 zero lot houses in it and got so many offers for sale and rent right there onsite. He got so many offers he told me he literally gotta put out signs
The selling agents have open houses to get more clients. Open houses rarely sell the homes.
@@larryjones9773 I'm waiting for my refund of a home I sold in 2020.
I have a RE license myself and done it for many years. And I agree that realtor commission in MOST cases are not justified at all. Charging tens of thousand dollars for putting the listing on MLS and MAYBE have a one open house (cause in my area most house sold very fast without any open houses, I bought myself my last house the day it case on the market) - it is not justified fee. The whole system needs to change. Having 30-40 agents in each office our of which 4-5 barely make 1 sale per year and 1-2 only carry on with regular sales - is ridicules! All you need is maybe 5 agent and list of services they can provide with price tag on them. That would be much more fair system and perhaps yes, seller will not have to overprice 50K the house to pay a realtor. Cause knowing that first 10 years you pay mostly interest on your mortgage and have very little equity - if you need to move you will have to increase the price so you can pay closing cost and realtor fee and avoid short sale... and almost nobody stay in the house over 10 years. Very rare.
Adding up the buyer's agent and the seller's agent by percentage has made commissions get out of control. When houses were $20,000, it was reasonable. When the same home is $1.2 million, the commissions are way too high.
It only appears high to you because you're measuring up against average wages and cost of living, the bigger truth here is that realestate is way over valued largely due to the frictionless system realtor provided to buyers and sellers. Flip it around why on earth should a home owner who sits on a house for 10 years be entitled to mammoth equity gains? At least with realtor system every time a home was sold millions of workers (realtors and families were provided a job and living) Traded assets back and forth is just a ponzi scheme no actual value to society, the realtor system did provide value for working families.
@@richcherwalk6349 To each their own opinion. This will weed out a lot of the bad apples. The realtors that want to stay are going to have to earn it, and earn less as well. People wised up and it’s about time something was done about this flawed system!!
@@richcherwalk6349 Realtors just got to ride the phat cat gravy train for to long. Time to adapt or join the labor force. It’s the way it is.
@@jonlj77 every year and decade more and more people are forced to “ join the labor force”aka slash their wages to service workers levels. Eventually you get dystopian nightmare in your lovely race to the bottom.
@@richcherwalk6349And I agree with that. Society has been on a downward spiral , I personally blame the smartphone. Everything changed and technology is ruining every industry. Pretty soon there won’t be any jobs left. It really sucks. I’d rather the world be like it was prior to the internet. You are right, It will be a distopian society pretty soon. It’s a shame, and leaves me very sad thinking about it. It’s getting worse and worse.. thanks to the smartphone, social media and tech. The real estate industry is the next victim of tech.
Is that before or after the NAR mafia extorts way too much money for MLS, fees, etc? In 2005, I became a real estate agent. In 2006 I went back to construction. I can at least navigate the thieves in that industry and not be looked at as one.
Skip right over the collusion discussion and went right for the attorney's fees. You're definitely not interested in getting at the truth. The lawsuit outcome was appropriate. The fact that you had to look up the definition of collusion tells me all I need to know. The real estate industry is corrupt and needs major change. This is just the beginning.
Yep. Most of these agents lack the training and interest in learning why this is a rigged system. czcams.com/video/HPD0r548bHU/video.html
Sadly, a lot of industries are corrupt and need major change.
Great real estate agents bring a lot of value to buyers and sellers and more than make up for their commission.
We live in a value conscious society and those who bring value to others will always be well compensated.
Exactly, the answer for this NAR issue shouldn't be, "well look how much lawyers are extracting from their clients" $30k commission on a $500k asset is not logical. I don't see why the buyer's agent can't just be a flat fee paid by the buyer. Why should a seller pay an agent that is negotiating against their best interests.
@@pimpdoggable The industry comparing lawyer pay to an agent pay is ridiculous. It takes years of education to become a lawyer. In my state of Texas, we let high school drop outs become agents or brokers.
Besides, homes sell themselves. And with today's technology, there's no need for a buyer's agent.
Oh yeah things will change. You can scam some of the ppl some of the time but you can't scam all of the ppl all of the time
Can you explain how did Buyers agent earner tens of thousand dollars by showing the house once to the random buyer (or sometimes just by sending a buyer to the open house and not even going there)?? What did he do valuable to earn that kind of money?
@michaelblevins6461He spend on that 30 min of his time, so he gets paid ten of thousands for 30 min walk around?
Exactly. Agents aren’t needed 95% of the time in this day and age. The salty ones are just mad they don’t get to ride the gravy train anymore. Time to find a new ( honest ) field to work in.
@michaelblevins6461wrong ! The internet did it !
I am sorry but now with technology ...its a lot of easier to do business. All that commission can definitely be reduced significantly
Sophia, please tell me how many homes you have bought and sold in the last 5 years. Your statement sounds like someone who doesn't have much experience so I'm curious.
I am glad you ask ...I bought my first home 25 years ago, my rental 10 years ago and two years ago I bought a piece of land in Rancho Cucamonga CA...soon to built our custom home .....@@mommom3172
I also have a real estate license ....so I can say I do have some experience ....😉
The 6% commission, a standard in home purchase transactions, is no more@@mommom3172
I am glad you asked...I bought my first home 25 yrs ago, a rental 10 yrs ago and a piece of land in Rancho Cucamonga CA ....soon to be a custom home build....@@mommom3172
Can someone please explain to me why in the world the seller should pay the buyers agent when the buyers agents job is to NEGOTIATE AGAINST the seller. That is ridiculous and borderline fraudulent. I'll humbly await your response.
Buyers are already paying so much money for the homes, from the down payment, closing costs, inspections, etc. The sellers are always at an advantage because they are making the money. It's going to make affordability even less for buyers, so now buyers will start negotiating against sellers to lower home price or offer credits anyway to make up for having the buyer pay the commission
@@elenadudko4625 "Buyers are already paying so much money for the homes, from the down payment, closing costs, inspections, etc" has nothing to do with the seller. I believe home prices will drop when sellers know they don't have to pay 6% and this will benefit the buyer.
The buyer agent can negotiate all they want, the seller doesn’t have to accept their offer
@@jasminegreene8159 I repeat.... why should the seller pay the buyers agent who's job it is to negotiate against them? This seems like a commonsense issue.
as well as the root of the lawsuit's being filed.
I was a Realtor for 5 years and did some mortgage lending after that. I always thought the only thing protecting Realtors was access to the MLS. Anyone who wants to sell their house just needs to pickup a real estate sales packet and contact an escrow company. In Calif anyway. 6% is a bunch of money to sacrifice just to have someone advertise your house for sale.
Homes sold without an agent sell for 10-20% less than homes sold by agents.
List your home by owner and you’ll have contractors, wholesalers, and investors contacting you on day 1 making cash offers. But, they won’t be for top dollar. Selling a home and selling a home for the most amount of money are very different things.
@@RealEstateCoach Not if you take the time and effort. Getting comps is easy enough and of course you get a lot of low-ball offers from investors hoping you're either dumb enough or desperate enough to jump at them. I sold my in-law's house for top dollar. Was I lucky or diligent or both? Another option for a by-owner is to take an offer by a hungry buying agent for a couple percent should they bring a buyer. Not for everyone perhaps but I won't be listing my personal house with an agent when the time comes to move.
So, she admits that the agents are inflating the prices. She's not realizing that technology in this information age is going to make agents obsolete. This is just the beginning. And home prices will go down because of this
Realtors have no control over home prices. The increase in home values has to do with supply and demand.
Sellers will always want to sell their home for the top market price.
sellers have the ultimate say in price. Realtors often bring the price down to a realistic value
Well said. Time to get rid of the snake oil. No more gravy train on the backs of hard working people. 6% is a crime!
Good video...but your analogy regarding Attorney's Fees of 33% vs Real Estate Agents fees is actually extremely flawed. The 33% attorney fees are only if the attorney works on contingency (works for free). In other words, if a client (plaintiff) paid their attorney upfront with regards to the attorney's HOURLY rate, then that's all the attorney gets compensated regardless of the outcome pof the case. There is no 33% fee in those situations. Again --- the 33% (or even lower %) fee is only in situations in which the client has no money to pay the attorney for their hourly work, so the client and the attorney mutually agree that the attorney will earn 33% of any successful monetary judgments. If the case is lost, the attorney does not get compensated, even though the attorney may have paid hundreds of thousands$ out of their own pocket in representing the client. ALSO, the client's attorney isn't COLLUDING with the attorneys for the other side regarding the fees. In other words, the plaintiff's attorney isn't colluding with the defendant's attorney to manipulate the attorney's fees. And if that occurred, it would also be highly illegal and unethical, and those attorneys could be disbarred, fined, and imprisoned.
NAR needs to go bye bye.
As a former loan officer I'm glad to see this. Agents have less to do with successfully closings than loan offivers do and typically mske more.
Agents have less to do with the process period. Online and a good local title company taught me this after I was robbed outta 5% from my middle-man and his co- defendant
You are not an Attorney. A two week course in real estate is not a Kaw Degree. 30k on a 500K home is way too high. With the internet listings are getting exposure. The reason the law suite exists is bc realtors are not transparent and do not make it clear the commission is negotiable.
Please explain what agents do that bring value that more than make up for the commission they charge ?
Nothing is stopping you from selling your home yourself or buying one.
Realtors are NOT lawyers. The commissions used to be reasonable but that is no longer the case. Technology has made it easier for buyers to look for their own homes and it has also made the job as a realtor so much easier. The average person pays 1/3 of their yearly salary to sell or buy a home. That is beyond ridiculous. The US has some of the highest costs for home buying and selling. That is a good comparison to use, US vs other countries.
Julin, it's not just Realtors raising the cost of living. It's the developers and the demand for it. In other countries cost of living is less expensive so the labor to make materials costs less than in the US. Realtors aren't lawyers, although some of them are, but they are licensed real estate professionals. It's not just about showing houses but rather filling out contracts, negotiating at random hours of the day, and guiding buyers through the process. Without a good realtor, a homebuyer could lose thousands of dollars if they're not aware of the necessary legal steps between offering and closing the deal.
Buyers don’t know the contracts and strategies that Realtors take years to learn. Not every realtor is the same just like every lawyer is not the same.
Try to compare the US to Turkey, France or Italy with regards to commissions paid by the sellers.
You have little knowledge of what other countries charge.
When was the last time you sold a house? 1/3 of your annual salary…? Check your math
How has technology made the job of a buyer's agent easier? Specifically?
Have been a Re/Max agent for 10 years DEFINITELY they need to make it harder to get a Real Estate License , it is ridiculous how easy it is, so many doing a lousy job so obviously sellers/ buyers are mad . Make it a degree , take few years of practice before getting a full license , more knowledge for our clients .
I have to agree! 19.5 years in CO. Our profession is now a joke because every lazy, unprofessional imbecile has jumped into this profession. It is embarrassing how absolutely worthless some of these agents are today. I could retire and just write a book about each deal over the past decade.
I just found you and I am SO happy I did. This is the BEST explanation of what is going on right now with this lawsuit and why there is so much confusion right now with Realtors, sellers, buyers and the public. Thank you for taking the time to clarify and break down the details and to discuss & explain all the points that have not been thought of with regard to the real estate industry at this time in the marketplace. Yes! A GREAT AGENT IS worth hiring to have the market exposure in order for a seller to gain the most and for a buyer to have representation to get through this process of home buying and having an advocate in their corner.
Welcome to the channel!
@@RealEstateCoach Thank you Jackie! I am so looking forward to spending time on your channel. I can already see that you will be my favorite Real Estate source.
Mam....An attorney has to do way more work than a real estate agent when representing a case. I am sorry but I totally disagree with your comparison. Second, by reducing the realtor commission to a more reasonable percentage or eliminating it all together could potentially allow for a more affordable home price whereby adding a ridiculously high commission prices buyers out. Just my opinion.
Question, how came up with the 5-6% commission? If I have a home that is worth $500k or $300k. Why does a realtor disserve more money if they doing exact same amount of work
I've taken cntrl of my own case by using flat-fee agents or the Internet along with a good local title company. Bought and built my 2nd house from a seller who like me only paid the title company to close the deal. No middle-men (agents) required
It takes 60-70 hours to become a real estate agent and 3-5 month waiting period to get your license. It takes up to 8 years to become a lawyer.
Lawyers, real estate agents and any other professional who brings value to society will be rewarded.
"You don't get paid for the hour. You get paid for the value you bring to the hour." Jim Rohn
Good point! Another point is there’s a risk of winning or losing a trial. So 50/50 shot of the lawyer even getting paid.
While that happens with real estate as well, it’s very different because “both sides” get paid, instead of one side or the other
@@Kevintendo A buyer's agent only gets paid if he/she gets the house for their clients. What happens if they don't get the house? They spend a lot of time working on the deal, driving to show buyer's a house, spend lot of $$$ on gas, writing up offers, etc. All these things and more take time and effort, and they are not paid unless they find the buyer a house.
As a homeowner I’ve always known that the only one who determines the value of a property is an APPRAISER.. a seller can’t sell for more than what property is worth and buyers can’t obtain a loan for a property that does not have the value of what the loan will be.
Totally agree with you, this lawsuit makes no sense, but what does now days?
Consider this: there are no real negotiation of fees. If you don't agree to give the buyer's agent at least 3% they will not show it to their clients period!. even in a hot sellers market with a good price. It's called steering. This is coming from person who bought and sold over 10 homes over last 20 years. I have negotiated my seller agent down to a flat fee or around 1%, but if I ever lower the buyers take to 2.5% no one will show it. That is the crux of the issue. Seller paying the buyers agent was broken.
It's not steering. I'm not showing a house that I'm not going to be compensated for. The sellers are NOT paying the buyer's agent anyway. The listing brokerage is compensating the selling brokerage if they bring a buyer.
Well after the lawyers are paid in millions after the case, real estate agents can sue them for the same
Those filing suit will make pennies while lawyers make millions
That was not an intelligent comment.
I don't dislike realtors. The issue is they aren't needed as much in the age of the internet and title companies. It's like paying extra for full service at the gas station back in the past. Instead of paying an extra 5-6% you simply do-it-yourself
Do you know who started this? A law professor noticed that forcing a commission in order to be eligible to list a property on the MLS was against anti-trust law. He mentioned it in his class and someone ran with it. Opportunist lawyers is what this is really all about.
Can you please explain to me why the seller should pay the buyers agent when the buyers agents job is to negotiate against the seller. Doesn't that sound ridiculous to you?
@@pmax4182000Because it was the Buyers Agent who did the necessary prospecting and marketing to attract Buyers and show homes to them. And the Buyers Agent job isn't done. He now has to walk the Buyer through the entire transaction and protect the interest of the Buyer. It's amazing how people can be so ignorant to the job duties and responsibilities of a Realtor.
@@pmax4182000simply because there’s two sides to every transaction. The seller needs someone to buy their house. Why should the person representing the buyer, not be compensated? I’m a listing agent, but I don’t think it’s fair.
@@pmax4182000 I agree... When I sold my home I paid a buyers agent $19,000 in commission after he negotiated my price down $22,000 for his buyer! I don't know why I let him do that... In hind-sight I should have said "Any negotiated price reductions will come out of your commission" The home was worth $400k more than I sold it for in just a few short months too.
Why can’t lawyers than be sued for conspiring to get 30% in attorneys fees
Exactly
It does seem like a set price! I had an employment case and it was 30% 😂
Well like everything else, every party has to end.
The verdict doesn’t change the law which is commissions have and always will be negotiable. If anything, high-skilled agents will haven’t more business.
Jackie - I have listed on the MLS with a flat fee listing service for years. The seller is FORCED to offer a minimum buyers agent commission to get on MLS. The minimum I have seen in 5 states has been 2.10% I agree sometimes it makes sense to offer less or even more than that. However, I have always believed this forced buyer agent commission was collusion and it needs to be corrected.
This is insane how much an attorney make when winning a case
DON'T WORRY AGENTS - Our MLS in Seattle, where I'm a broker, isn't Realtor owned (it's member-owned), and we've had the option for the buyer's agent commission to be negotiated for years now (it's always been negotiable) and sellers are not required to offer commission (yet sellers still do). Also, in January, our MLS will require buyers to enter into a buyer's agent agreement that specifies who pays the buyer's agent commission. The buyers will just offer less on the property to cover their buyer's agent commission if seller doesn't want to. Even with all these changes, the buyer's agent commissions are still around 2-2.5%. From my own recent experience, a listing fee of 2-3% is common.
Exactly Iike I’m still going to offer compensation to buyers agent on my listings - this ruling affects nothing but public perception
About time, now you look for the house online, you make the deal, you need to get all the job done and the agent just open the door they never give you advice on how to save no they want to overcharge you on the home by selling other services that are outside. So they are scammers that get paid for nothing.
@@luziela.dugart6987very obvious your not Agent, sorry you had a bad experience with your agent. I make sure my clients get the best deal on a home EVERY TIME! It’s not just about opening doors it’s much more..
Never once were we ever selling three homes over the years told we didnt need to offer buyer commission. Pretty much nothing was ever explained to us.
2% each is the max if I absolutely can't get it done myself. Bc online and a good local title company are getting it done so for
In other countries the buyer pays 6% commissions (Greece, Morocco for example). Owners can sell on their own, buyers can buy from those selling on their own. Consumers are not forced or obligated to use an agent and there is no set fee. There are flat fee brokerages available.
You pretty much described what's possibly going to take place in this country. Ppl gradually wake up to scams but at some point they wake up
Exactly, I just sold my house by owner and potentially saved $15-20k. That didn’t stop the agents from “trying to protect me”. They’re not needed. Only need an agreed price and title company.
In my opinion, just remove the buyers commission and see where it all takes them lol I want to see more lawsuits against the buyers. The job of a buyers agent is the due diligence to uphold the standard laws. Removing a representation on one side, is like going to a court room without a lawyer. 😂
Blame the Internet. It has eliminated many jobs and will continue to do. Agents aren't immune to it's reach
When you go to court you don’t pay attorney fees for both sides. Also, many realtors have zero formal education. It’s silly for realtors to be compared to lawyers.
This is the one!!!
@@goldenparachute392exactly my thoughts
@@goldenparachute392 Such a very common-sense response. So much common-sense I'm ready to hire a lawyer myself. golden parachute392 I've just become a fan. If you should decide to start a YT channel pertaining to this topic I'll be the 1st to subscribe Lol
Keep telling yourself that. Bought and sold lots. With one exception, I did all of the work. The realtor brought little value. One, found out later cheated me out of $40K. No tears here.
How and from WHERE will the National Association of Realtors obtain these monies for both the ongoing and persistent litigation and the monies required to satisfy any fines, court costs and other subsequent expenses?? There will be additional litigation. Special Assessment on the membership of the NAR?? HERE now come the suits from the "buyers" agents against the "sellers/Listing" side. This is all for "show" and for commissions toward the attorney buffet's. WHO loses?? BOTH sides of the real property transaction!!
I was recently given an investment deck from a company called RBN who has partnered with AMEX to allow consumers to earn points when buying or selling a home. I think their platform is really going to be able to take advantage of this new landscape.
This is all a money grab for the attorneys which is comical because the lead attorney is taking 40% of the 5B and did not reduce his commission or was it negotiable.
THE IRONY!!!!!! NEXT, TORT REFORM!!!!
Her arguments are hilarious, I couldn’t disagree more. Most attorneys are paid hourly, which is what realtors should be.
A massive lawsuit many times takes years of work to prove and gather evidence (thousands of hours and many people helping)… so hilarious that you compare these professions.
Competent professionals are always compensated well regardless of whether they get paid hourly, a set fee or a commission based.
Thank you for watching and sharing your perspective.
I absolutely agree with your statement, but to what degree based on the specific circumstances. I know times are changing with the increased IR’s but as an example, this year I bought a place (that I found on Zillow), sight unseen with the inspections waved… not because I didn’t want them but because the market will pull my rug out if I didn’t. In that case, the realtor sat on sideline and collected a good percentage… but for what? I took my R to 5-7 other places that didn’t work out, so that’s why I think hourly is fair. Only my thoughts and I appreciate you defending your profession! 👍
Exactly. Very few lawyers get paid 30k for opening a couple of doors of the houses that I found and do a little bit of paperwork on standard boilerplate forms and get them signed via docusign. For a couple of my recent closings the realtors didn’t even come to the closing (local). This racket has been going on for ever and it’s time it’s torn down.
I shared an office with an attorney for a few years. It was amazing how similar our jobs were. The biggest similarity was that we had to get our own business and market our skills. The Dept. of Real Estate and the State Bar don't send you monthly paychecks. We both spent a lot of time just trying to get business in the door. For some agents and lawyers, it can take months just to get one client and sometimes years of hard work to get consistent business. It was also interesting how many of the forms he used were just preprinted forms similar to agent forms. We also got to share networks which was cool. I get quite a few calls from attorneys who get a case involving real estate and want to know how the process works. Things like how title companies work or how to get info on properties.
@@jonmkeller Life isn't fair, so let's get rid of that "illusion" right there. "Fair" is misused by tyrants and oppressors all the time to justify corruption. Contract law rules this land and is the highest law in the land. If you agree to a contract and get paid a ton of money for little or no work... good for you! That's awesome for you and your family. If you agree to a contract to work by the hour and you cannot afford rising costs of living manipulated by a corrupt IMF, Federal Reserve, and government, then you made a bad decision and are screwed and will suffer unless you find a way to get out of that contract.
Rather than be envious of someone else's more than generous contract and fortune, tip your hat and work on your own contracts. I've met tons of businessmen who are consumed with profit for themselves and don't care if everyone goes to Hell and loses their shirt.... as long as they can maximize their profit. I'm not saying you are that guy, but you appear upset that you couldn't realize more of that commission paid to someone else for doing almost nothing. It appears to be a little envious. So, do your deal.... maximize your profit, and move to the next one. Trying to undermine contract law by reducing agents to a form of financial slavery which would have to implemented by a socialist government policy.... is a recipe for disaster and hurts the cause for freedom and liberty. Be careful what you ask for because the path may take you to a place you regret.
P.S. The Next LawSuit is Real Estate Agents dont want to be realtors. And NAR works against agent who are not realtors. Emaple: In Georgia I am not a Realtor. However in Illinois I am forced to be because NAR controls the MLS in Illinois but not in Georgia.
The fact that 99% of the public doesn’t even know the difference b/t being a REALTOR and a Real Estate Agent makes this all the more frustrating. I too am licensed in GA and decided when renewals came due in Oct that I will not be a REALTOR any longer. I have until Dec 1 to pay (with the final late fee) but I won’t be doing it. Even before the s3xual har@ssment lawsuit and these other lawsuits I didn’t see the benefit of the price we pay and since the public is going to call us REALTORS anyway what is the point? The public has no idea the legalized monopoly agents are forced into upon being licensed. It’s like we are trapped into a contract we can’t escape from b/c even when we exit one door NAR is right there keeping something from us and asking for payment to access it. Even when we don’t want to be REALTORS, it’s still hard to escape NAR forcing us to bend over and robbing us anyway.
Great job in your explanation! Thank you!
As a former Realtor, I remember when other Realtor’s in the office would X properties off the list of properties to show to a prospective buyer because the seller’s agent was only offering 1% or 2% commission to the buyer’s agent. This was common during the crashes 2001 and in 2012. It’s because the seller’s agent wanted to keep more of the 6% for themselves. This is a fact. I lived it!
33% wow! Time to be a sueing lawyer.
I bought my house with a Realtor and they lied and lied
And it was horrible
Needed new roof and new everything
Yes. I can never understand how they get away with what they do. You get an inspection but it still doesn't show major things like pipes etc. There's no guarantee. With a car you have a lemon law. You buy a house and these real estate agents are like vipers
Didn't you get an inspection report? That report will report any possible issues with the roof and you can then hire a roof inspector?
I've used several REAs that are undertrained and have very little knowledge of home quality or construction. Do you think it's worth 6%? How do you know if your agent is good? You don't until it's too late. Most people only buy or sell a couple of times in their lives. The closing costs are as clear as mud to them and the agent won't jeopardize money in their pockets. The system has to change and it will. I don't use them anymore if possible.
Like every industry, there are great agents that bring tremendous value to their clients out there.
Stop selling to foreign investors. Think about the country not your commissions. Foreign money is driving up prices.
At no point in this video do you break down the merits of the case. You don't propose to The Listener what the argument was for the plaintiffs in the case and address each concern. This video strikes me as someone who has more of a Feeling how about what happened and has yet to form their opinion because they have not actually read the notes from the case.
Here is a dose of reality in the merits of the case. We live in a free country. Sellers are not imprisoned by brokers, agents or real estate commissions. They are free to do what they want with the sale of their property. They negotiate the commission by choosing to list with a discount broker, a flat fee company or sell on their own.
You're correct, 95% of the videos about this lawsuit are from agents saying that collusion doesn't exist and agents are worth their weight in gold during the transaction. They aren't taking the time fully understand that the majority of the country doesn't feel 5-6% is justified. Real estate is one of the few professional trades where new agents charge the same as the veteran agents. How does that make sense unless an element of collusion is happening?
Then you look at how the age of the Internet has brought down fees in almost every other profession, yet real estate agents have been mostly unphased. The DOJ will break up this industry as it's long overdue and more competition will come along.
So help me understand this. I list my house with an agent for say 5%. Agent puts the house on the MLS. Another agent (buyer) see house, has a buyer, Now I have to also pay that buyer, Or does that come out of the original 5%.
Well actually it will destroy buyers agents, sellers agents will still be good for the future to come. So if you’re an agent start finders sellers.
Yeah, good luck with that everyone will be going after sellers. Smaller piece of the pie. Also good luck finding time to prospect when you’re showing your listings nonstop.
Great agents bring a lot of value to buyers and sellers and more than make up for their commission. We live in a value conscious society and those who offer great value will always be well compensated.
@@ShulaTheDon13or just paying showing agents to show your listings??
@@Kevintendo yeah, how much you gonna pay them per showing? Who the hell’s going to go show houses for you for pennies give them a percentage? Still losing money and having to babysit. What if it’s a slow market and listing is getting tons of showings but no offers. Money just coming out of your pocket?
@@ShulaTheDon13 Showami already exists silly - look into it
Thanks for the great video. I’m totally onboard with the value and investment I’m making as a seller in hiring and compensating an excellent listing agent. But, can you please be specific in what value a buyer’s agent brings to me when they are representing the interests of the buyer exclusively? I’m not understanding how this customary 3% is an investment that will net me a higher return. I hope to get your honest feedback as I appreciate the way you explain things. Thanks.
Awesome clarification and appreciate the details AND your opinion! Will share all with my company agents.
Glad it was helpful!
As a seller, why should I pay the buyers agent a commission to get me the lowest price?
As a seller, you agree to pay a commission to your listing agent if and when the listing agent gets you a price your willing to accept.
The listing agent than markets the property to buyers and agents alike.
If they listing agent finds the buyer willing to pay the most amount of money they would make the full commission as agreed in your contract.
If the listing agent finds an another agent who’s representing the buyers who are willing to pay the most amount of money than your listing agent will split the commission agreed in your contract with the buyers agent.
You should only pay a commission if it’s in your best interest to do so.
@@RealEstateCoach But that is all changing now. Now a seller has a choice.
Sellers have always had a choice and will always have a choice. Commissions have always and will always be negotiable. There are even some agents willing to work for free.
What most sellers don’t know is how much money they leave on the table by not using a great agent. 35% in 2022!
@@RealEstateCoach That's a bold face lie. A seller use to have to pay a commission to get on MLS. Just recently things have changed.
Agents and brokers have to pay to have access to the MLS. In fact, sellers are able to access the MLS through flat fee brokers for as little as $99.00 which is a fraction of what agents and brokers pay annually.
There are also agents willing list homes for no commission so they can use your home as marketing to attract buyers.
The MLS is a paid service which anyone can gain access to.
Ive been an agent for 20 years. I’m a full time Realtor, and train new agents my Broker hires. I also process loans, so I can speak on the topic of financing. After reading the comments on here and similar videos, I’ve reached the conclusion that the majority of people commenting in a negative view towards Realtors simply hired an agent that was just not a good agent. As a buyer or seller, it’s your responsibility in the hiring process to do your own due diligence and make the best possible choice. Same applies to every other aspect in life. When you work with a professional and ethical person, you will most certainly be happy you did, regardless of what service you received. To my fellow agents, don’t worry about a thing, we will always be needed by those who know that they don’t know versus those folks that think they know. By the way, buyers dictate the market, not sellers.
I wish you were right, but for agents to be needed, you need buyers. Your presumption is that buyers will continue to exist. As long as there is an ignorant buyer, there will always be a need for a counselor or agent.... I agree. You also presume free markets. These presumptions are literally being undermined by coordinated attack.... a planned attack.... yes, a grand conspiracy. (Anyone who doesn't believe in conspiracy is more ignorant than most real estate buyers. Conspiracy is in every penal code and in every jurisdiction.... for good reason... people conspire.) I will briefly explain why your presumptions are likely to be wrong in the future... which should change your message of "don't worry" to some version of "we should be very concerned and do something about it" because the proverbial raft is headed for rapids and a water fall.
Without a proper worldview, we cannot accurately diagnose and address our problems. We are in many battles and struggles of many types. The most important battle is spiritual which is manifesting itself in an Earthly form in a common battle between liberty and oppression... good verses evil.... God verses the devil. One form of this Earthly battle is a liberty driven economy in the form of a type of capitalism verses an oppressive, micro managed economy in the form of a type of socialism. Socialism demands no God and thus no higher power to be accountable to ... which enables tyrants.
Our markets are becoming less free through zoning regulations which undermines the buyers ability to "dictate the market". If the buyer doesn't have the choice to buy an acre and build a card board house, then free markets are merely an illusion. The government controls zoning which controls the cost of housing which controls the market. The window for "buyers dictating markets" becomes smaller by the day and this court case will shrink the window a little more.
The world economic forum (WEF) is a globalist power that has its people in the "cabinets" of power in every country (Biden is a WEF stooge along with Trudeau, Macron, etc...). The WEF has the stated goal to get rid of private property. They will do so with a manipulated economic collapse (worldwide) that defies all "cycle theory", trends, and history. These same people have planned in writing to force everyone in the outlying areas into big cities to live in small "apartments" with a digital currency that can be turned off at any time to control behavior.
As difficult as this may be for some to want to accept, a little investigation will show it far worse than I have described. These enemies of God, liberty, and America have been planning for over a hundred years and quietly moving behind the scenes accumulating power and their people in positions of power.
Ignorance is bliss as long as something or someone doesn't assault it. The assault is prepared and they are crouching at the door. The solution is simple. Only an act of God can save us at this point which requires repentance on a national level. This will not likely happen as the Bible tells us that Jesus will Return to basically save us from ourselves. Only the Christians will be saved, so one's mental outlook will depend on our worldview and belief system. And whether one believes in God and Lucifer ... or not, the world elite power structure does believe in Lucifer and that is who they follow. So, any presumption that government has our best interest in mind.... that's an illusion.
AI will destroy needing a realtor. Enjoy your overflated commission while it lasts
As a buyer wouldn’t you just start negotiating that price into your offer?
Oh, sure. Blame the home buyer and not the greedy firms who upended everything,
Online and a good local title company knew enough to avoid me from getting robbed twice
Good video for real estate agent. The problem I have is as a seller what benefit do I get from a buyers agent? Their job is to get the least amount of money for their buyers. I should pay for that?
Buyers pay the commission. They are the ones that bring the money to the table. Not the seller. The buyer gets pre approved and the buyers lender gets the money to the table. Not the seller
@@Moniquejmb2360 The seller brings the asset and the asset is diminished by agent fees. The buyer adds liquidity to the sellers asset and the buyer brings value to the seller only if the asset sells for more than “market value”. The transaction is basically an exchange of assets. By your analysis the bank is bringing money, but they don’t gain anything of value, which of course is nonsense.
As always fantastic explanation, I agree with you in all aspects.
Thank you!
Thank you Jackie! I took your dominate your market class and loved it. All of this has been distracting but I feel it is time to get back to work!
You are so welcome!
Very well put together..thank you...
You're welcome!
The issue is sellers don't pay buyer's agent or selling agent commission. The listing broker pays out of their commission from the sale out of their commission based on what they offered in MLS. The lawyers missed this big time in their defense. The buyer's agent agreement shouldn't even been a factor in that argument. You make a good argument for using the attorney example.
My understanding of the lawsuit is that the buyer should pay their own realtor and not the seller. So in the end, you all still get your 7% commission.
Wrong. The listing brokerage will continue to charge the same 6-7%. The only thing that has changed is there will be paperwork disclosing this to the buyer before an agent can show the house. Buyer's are not going to start paying agents and seller's were never paying buyer's brokers anyway. Buyer brokers are compensated by the listing brokerage. You are paying 7% to list your house.
Broker/Agent got a 100% raise in the last 5 years. Anyone else ?
Come on ... if you have a problem with attorneys and their pay structure make an entire video about that. But what about ism in regard to attorney fees is that why we're here. Take a look at the merits of the case and then go about the process of the bunking the assertions of the prosecuting attorneys.
I have no problem with attorneys at all.
Attorneys, real estate agents and all professionals who bring value to society should be well compensated.
Very thoughtful video thank you Jackie. I think the key is value, agents are not created equal.
Superstar agents are harder to find. The barrier to enter the field is so low it degrades the value.
I’ve spoken to many agents that are thriving in this market and welcome the clearing of low value agents.
Just wait till the new IRS agents go after the Agents. Should be interesting....
Real state agents shouldn’t make 18k dollars in commission in the sale of a house if take 2 days .. is ridiculous
How much should they make per day?
@@RealEstateCoach do they hold a master degree ?
Thank you for the clarity, Jackie!!
You are so welcome!
love the closing summary!
Thanks!
I do not understand what the issue is ? The seller lists with agent with an agreement that the commission is say 6% , the buyers agent gets 1/2 of the 6% at time of closing , buyer never absorbs the commission of any agent. So again what is the problem , why was there a law suit ? I feel I am missing something ? Of course real estate agents that list a home that gets sold should be paid and if another agent besides the listing agent sells deserves half the commission , that is only fair. Unfortunately some agents work hard for clients then on the end lose them with no sale or purchase and they get no pay for that time and effort .Part of the job
The problem is more that the seller pays the buyers agent fees, when it should be the buyer paying for the assistance of the realtor not the seller. How dont people understand this!!!!
Everyone gets to choose whether or not to use an agent to buy or sell and how much they are willing to pay for the services.
Long overdue. It’s a day of celebration. It’s time realtors get off the gravy train on the backs of Americans !!
This is not a lawsuit about attorney fees
Your Attorney Fees analogy is extremely flawed. One's attorney is not COLLUDING with the opposing attorney to manipulate the fees that the client is paying. That poor analogy using 'Attorney's Fees' is a prime example that too many of you are missing the point of the case. It's not primarily about the 2% to 3% buyer agent's commission. It's about it being an ANTI-TRUST case in which competitors collude with each other to set the pricing that the consumer pays. No matter how official and sanitized the NAR may set its rules with fancy wording, it's still ILLEGAL. Basically, the NAR, one of the most powerful lobbying groups in the USA, controls who can represent real estate sellers and buyers. Under the NAR lobbying to government years ago, a person is mandated to be Real Estate licensed to represent buyers and/or sellers, thus monopolizing the representation-for-a-commission-fee RE market. And on top of that, the NAR further monopolizes that market by rigging the commissions, setting a minimum commission percentage that agents can charge, and that percentage usually solely falls on the SELLER.
Think about it --- the NAR controls who can LEGALLY earn a commission representing RE buyers and sellers. And also the NAR sets the minimum total commission that sellers have to pay. In addition, the NAR has successfully lobbied some states to make it mandatory that a person has to be RE-licensed to represent the buyers and/or sellers of businesses even IF there is no Real Estate transaction associated with the selling of the business. The NAR has also successfully lobbied at least 1 state (Illinois) in the past 2-4 years to pass a law making it mandatory that one has to be RE licensed to engage in RE Wholesaling/Investing, even though RE Wholesalers do not represent buyers or sellers....RE Wholesalers represent THEMSELVES in those transactions by selling (Assigning) their CONTRACTS or double-closing. The NAR is a corrupt organization. These crooks should be in jail...and also the crooks in government who took BRIBES (aka 'lobbyists money') to pass those laws that the NAR themselves wrote.
So what is your message to your sellers at this point?
My message is for agents to provide value. When sellers see value, they are happy to pay the agent's commission.
The seller has to place a cost on that value. Sellers are saying that the perceived value is not worth the cost. Real Estate Agents may disagree but they don't control the product, the seller does.
Thank you Jackie for breaking it down so we can all understand. Bottom line, great agents will go above and beyond for their clients and market the home to gain the most amount of exposure to net them the most amount of money.
Glad it was helpful!
yet attorneys in court cases are allowed to collude with agents and clients to see how they can get even MORE money out of the entire deal! Unfortunately that’s what I suspect happened to me. 😢
When I’m a buyers agent I spend hours months and weeks showing hundreds of properties, gas, time and a lot of time you show 30 houses just to close on 2-3. Buyers agents are valuable. If buyers have to pay out of pocket for agents they are already paying closing costs and down payment inspection appraisals. It will break them
Attorneys require a 5k upfront fee! It’s not a secret. A service is to be paid.
Another Awesome Vid and love the comparative analysis of Realtor's fees (6%) vs Attorney's fees (33%). One commission-base model is clearly & widely accepted and the other commission-base model is under fire....., Hmmmmmmm, 🤔🤔‼️
Real estate agents and attorneys alike, does it really matter how long the educational journey? You can find both swimming in the shallow end of the pool. Its in the deep end where you find the professional. The one who is continuing to educate and better themselves providing true value for their clients.
Attorneys battle cases in litigation and real estate agents unlock doors to a house.
It likely won't change anything. It's just going to change the process. What is the only definitive thing in the ruling? You can't list buyer compensation on MLS. What will that mean? Well, either the buyer will pay for their own agent instead of the seller, OR, there will just be compensation listed on a NON-MLS site. If you read things in the ruling, it actually says that compensation can be listed for a buyer's agent if they are from the same brokerage? What would that mean? A big company could only allow buyer agents from the same company. All of the headlines about this ruling are completely wrong. There is nothing in it about the actual commission amounts, it will not destroy agents.
Without an agent to show the property how involved will the seller be involved daily to show the house? What about last minute showings, marketing, dealing with buyers? If you’ve tried to sell your home on your own the first thing I do is discount the price by 6% right off rip then I start negotiating from there. You don’t win Trust me.
Lets be real. Your average agent isnt doing much. Most forms are standard like the TREC in Texas. Signing forms in docusign cuts down the work and the title companies work directly with lenders. Their time spent on you is minimal. They need to free the access to the MLS, their monopoly control over that is criminal. Zillow even colluded to hide the FSBO listings. They tout their value but most cant think creatively how to solve sellers problems bc they only care about commissions and that is not what they as fiduciaries should be doing. One exceptional agent doesn't make the exception for the rest who are lackluster at best. Dont let them act like they get up and put 16hr days in for you everyday till your house is sold. They list and wait...answering calls and emails. They prolly deserve 2x the commission for new home buyers !!!
It's bad overall. Buyer agents work they ass off running around all day. And sellers will see home sales slow down, cause if a buyers agent isn't getting paid or paid pennies we won't be bringing them to that house. 🤷🏾♂️
Please provide evidence that clearly shows that homeowners who decide to sell their home on their own don't get as much money as they would have gotten had they gotten a real estate agent.
That's just one source..feel free to dig some more.
Answer this, what are sellers using to establish value? If they are using Zillow or public records the sold price may include sellers concessions, therefore the home actually was valued less...it just was able to appraise for that value+sellers concessions....or it didn't and the buyer made it up with cash.
The MLS is a tool that IS NOT available to the general public and agents can contact each other to find out IF the home included a sellers concession or they may figure it out by pouring through multiple properties and come to the conclusion that a sellers concession was included.
That's just one example of how an agent would establish appropriate market value and one example of where a good realtor is worth their commission.
Well said @the_stixxx
Buyer agent represents home buyer and buyer agent suppose to get best price for the buyer. I agree buyer agent adds value to the buyer(especially first time buyer). If that's true, why should seller pay the buyer agent. Just because they bring buyer and they tried to negotiate and bring down home price?
This is bad for sellers and buyers. Fewer buyers will make it harder for individuals to sell houses. It only benefits Wall Street Big Investors that offer low prices.
The buyer ultimately covers the commission for both the seller and their agent. Here's an explanation: All listing prices are essentially educated guesses derived from Comparative Market Analysis (CMA) data. This data helps agents determine the initial MLS listing price. However, this price remains speculative until the market validates it through a cash transaction. That's why property prices can vary in different market cycles, sometimes exceeding the listing price, sometimes falling below it, because the listing price is essentially a hypothesis.
With that in mind, I argue that the buyer ends up footing both sides of the commission, as they are the ones providing the money that confirms the property's price. Of course, there can be exceptions if the selling agent convinces the seller to pay a retainer fee upfront for their services.
In the end, the buyer is, in essence, covering the commission. Even if the selling agent doesn't want to split the commission, the buyer could choose to reduce their offer to account for their agent's fee. In the grand scheme of things, it's all about the numbers since the commission always affects the final price of the property.
So in essence, the fees that the seller pays the realtor is baked into the asking price of the house. And if the buyer pays the asking price he or she is essentially paying the commission for both seller and buyer realtor
Market value is determine by what a buyer is willing to pay and what the seller is willing to accept. Great agents bring a lot of value to buyers and sellers regardless of who pays the commission.
I understand your explanation but there are a couple of problems. You are correct that the buyer brings the funds to the table but that is for the CONTRACT PRICE. There is no confirmation of the value of the property or even the property price. The only confirmation is that the buyer and seller agreed to a number. Properties are sold under or over market all the time but that doesn't necessarily affect other properties being sold in the area. Other factors may apply. The other problem is that since, once again, the buyer brings the funds but the seller is the one who determines who gets those funds. Why? Because there was a transfer of property. The seller transferred what is referred to as real property for personal property or the currency used to complete the transaction. While a buyer can certainly attempt to reduce their offer to account for their agents fees or other costs, they cannot do so without the agreement of the seller. If you make an offer to a seller to buy their house, there is nothing that says they have to accept it especially if you make an offer below their asking price. If you are in contract to buy with a seller, you can't just willy nilly decide to lower your offer because you want to cover some cost. You would have to get the consent of the seller since you are changing the terms of the agreement. This can land you in some hot water or even in court. Your argument is also problematic when there are no commissions to be paid on a transaction or if only the buyer is represented by an agent and seller is not, such as a house that is being sold by the owner. FSBO's or no agent transactions sell for market price all the time (although most agents won't admit it. LOL). It's not uncommon for agents to sell properties this way. Is the buyer paying the seller a commission in that case? I would not agree.
I wonder if the numbers from the NAR were fudged when it comes to how many FSBO sales were successful without an agent, and when they were, did they actually leave up to 25% on the table?
Many of those "FSBO" sales were between family members and at friends and family pricing. Most real FSBO homes are over priced and thus never sell or take forever to sell.
A "successful" sale doesn't mean you didn't get screwed. Buyer's love FSBO's because sellers usually suck at negotiating and buyer's use agents because they get free representation. Nothing is stopping you from selling on your own. Good luck!