Landmark real estate ruling may lead to lower home prices in California
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- เผยแพร่เมื่อ 13 ธ.ค. 2023
- 2024 could be the year that brings a long-awaited shake up to the real estate industry. Lauren Toms reports. (12-14-23)
Read more: cbsloc.al/41m6NZ0
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
If anything, it's likely to get worse. Affordable housing will soon become unaffordable. Therefore, I advise taking action now because today's prices will seem like bargains tomorrow. Until the Fed takes more decisive action, I expect we will see hysteria due to rampant inflation. You can't just halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
Sharon Lee Peoples is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I searched for her name on the internet, found her page, and reached out via email to schedule a conversation. Thank you.
The problem is that real estate agents/brokers don't let sellers know that the commission is negotiable. Agents just draft up a listing agreement at 5% (on the average in the Bay Area) and sellers pay it because they don't realize they have a choice
I"ve seen 7% and with the Bay Area prices, it's ridiculous what they make for so little effort.
The reality is that bay area real estate is grotesquely overpriced. The realtors may have to clean up their act, but it won't help much.
Nope. The market sets the price. They would drop if people stopped buying.
This has been going on forever. Finally these crooks are getting called out.
It's total BS. Commissions have always always been negotiable
This reporting is stupid. It never talked about how real estate agents inflated their fees. Also, the seller is the one paying for that fee. Also when I'm buying or selling a house I don't want the extra step of negotiating a fee. It should be a percentage therefore the real estate agent would be more motivated to get the best price rather than to close.
Hey Nick, why don't you talk about the mortgage lenders who raise interest rates on the back-end of the deals so they can make secret commissions at the expense of buyers. Why isn't anyone doing anything about that?? Real estate commission is a 1 time thing, but buyers are stuck with higher rates than they're qualified for for 30 years. Tools.
Yeah. Anyone buying a home should really shop around with the loan agents to make sure you're getting the best rate, and not getting shafted.
"stuck for 30 years" - bro haven't heard about refinance 😮
@Alexandr-fv8me obviously, I know what a refinance is, silly boy. Do you know that a refinance is also costly to the homeowner? That's additional commissions, charges, and fees added on top of their existing mortgage, not to mention closing costs. My point is that instead of focusing on Realtors and how much they make, the attention should be placed on the loan officers who are the most greedy, money hungry liars of 'em all. Realtors work hard to sell houses on both buyer and seller sides.
@@stellaadler120greedy? It's business. All up front. If you don't like the rates improve your credit score.
@wanaraz it's not all upfront.. I worked for a mortgage broker for years. They are scandalous, greedy, heartless conmen who jack up the rates to make commissions on the backend.
Here's how I'd look at it as a buyer. With a commission being paid by one party (seller), your agent (buyer's agent) has no incentive to negotiate a lower price on behalf of you because he'll receive a higher commission with a higher sale price! If that wasn't the case, I could hire a broker to negotiate for me to buy a house and pay him more if he gets me a lower price! The price I pay and his commission could be inversely proportional.
That by law is illegal. The buyers agent fiduciary duty is to get you the best price. If you ask them to get a lower offer, by law they have to and you can request proof as a buyer or even be there for the negotiation. When it’s a sellers market this rarely happens but when it’s a buyers it always happens.
Wrong, that's not illegal, the agents fiduciary role is to inform his client, and work on his behalf, but that doesn't mean he has to negotiate in any way for a lower price, unless his client asks him/her to do so. Ask yourself, what does the agent have to do to get the best price and what's the definition of the best price or deal? Is it market rate, below market rate, lower than the other bids, the same as other bids, all cash, all credit, etc, etc, etc. The best price doesn't always mean the lowest price when it comes to a Real Estate transaction. @@V21bh
This is nothing more than a discount broker who probably line item charges you the exact amount or more selling his business model. Everyone who's purchased a house at least in the state of California knows how hard agents work for that commission. Also we project both buyers and sellers from future litigation and costly unforseen or undisclosed repairs.
Bullsh!t...it's not that much hard work. Especially for the amount of costs a buyer or seller has to pay
About time!
If anyone thinks that lower commissions are going to lower the cost of housing anywhere, they are fools. NO WHERE in history has that ever happened.
It would lower the cost. For bout 6-9 months. Watch for that window! After that, the savings will be baked in. 😢
I am a real estate broker and you can always discuss commission but I recommend everyone gets a real estate license if you are buying or at least read about what you are doing along side with knowing about your mortgage. the real issue in the market you want to fix to save money is REITs because that's why you can't compete as a buyer anymore.
What's reit?
@@RickyARacoon1 real estate investment trust. they are what is manipulating the marketing and will make the majority of America indentured servants. the government should have special taxes on them but this government doesn't care about individuals just companies and profits.
@@Darron_Matsumoto OK. Thanks for the update. I'll try to learn more about this
I think the investors who are buying houses "as is" and paying cash are putting pressure on the industry.
Of course.
Sellers will always reach over the loan buyer for the cash buyers. Makes it hard for younger people to even get a chance at getting into escrow.
Not true in the Bay Area. Houses are so expensive that investors can’t make a return. It’s families that want to pay a premium for the sense of a home. All these homes go to families.
Other places in the us. Yes there are investor owned sfh. But not here. lol you know the prices don’t make sense.
When looking at houses online, many are actually advertised as great property for investors and airbnb. Not as a permanent full-time home.
That’s the main problem. The monopoly. The realtors work hard. Pay them
Sure, just like how lawyers like to work for free on these lawsuits.
Angry Realtor Alert!
5% ain't gonna "make American dreams happen."
yeah..if you can afford a million dollar home, 5% is nothing....i would think..
@@davidwright873 $50k is $50k
Lol they are quite idiotic about the majority of people's finances.
Total BS. I’ve bought & sold MANY houses & you can already negotiate commission. I’ve done it for years. And discounting a $15k commission on a $1 million dollar house isn’t going to move the home buying needle
😂
The sellers will just keep their prices higher 😂😂😂 Everyone thinks RE is easy, just ask Zillow how that worked out 😅
Ultimately, the market decides the prices. Right now, it's a buyers market.
Buyers market? Ain't too many buyers out there at 7-8% interest rates unless it's cash in hand buyers or wealthy buyers looking for another home to park money. Definitely not a buyers market otherwise prices would be down much more than they are now
Precisely why it's a buyers market. Home prices are being slashed. Properties are staying on the market much longer. It's the buyers who dictate the current selling price.@@AKAAAK
Exactly...
@@AKAAAKprices don’t agree
Doubt any new laws will lower home prices
what about the $200k fee city's are charging to get a permit to build a house?
KPIX, could you teach the word realtor, pronounced & spelled real + tor, to a reporter covering a big real estate story?🤦 There's no such word as rela-dor.🤦🙄
Re-al-tors should protect their own trademark...
You cannot legislate low cost housing. If it were that easy, then why didn’t they just legislate lower prices? They haven’t cause they can’t . Someone will pay for this, and it going to ding the brokers.
Rarely has the man at the top paid the price...the brokers will adapt and survive and even thrive...it's the agents and the consumer who will pay the price...
the consumer will benefit from reduced prices in the short term but as the reduced commission rates being offered drives agents out of the business, the remaining agents can now charger higher rates over time as there is less of them for buyers/sellers go cross shop with...the agents can start being more selective on their clients and so buyers will now need to either pay more than they did in the bliss between peaks, or learn all the ins and outs of the property transactions documents market and the rules that govern it as they will have to do it themselves more often than they did before...
As a buyer/seller we may decide we only want to pay 1-3% total commission is fine going forward as a result of these rules, but if half or even more of the agents in business today fold up shop, the rest of the agents don't need to take our money when the next guy gives them 4-6%...or more even...
Only way to change that dynamic is to make it a fixed fee for service...end of the day, an agent is doing the same amount of work on a $150k home transaction rural middle of nowhere place as they do on a $3M one in the Bay Area...should they really make 30x the money in compensation for doing the same job?
@@triaxe-mmbWell said, fixed cost, fee to any real estate transaction. Perhaps more complex transaction the fee can adjust higher or, only certain real estate professionals with advanced training can represent the seller or buyer in the transaction! The way it is now, commission rates all being the same or darn close to the same is wrong , as you express, no more required in training or work effort in the property at three hundred thousand dollars in Modesto, CA. and one at one million two hundred thousand in El Cerito, CA. It's really like this, oh, you must have more equity in the higher cost property so, I want more money from you! The way it is now structured for compensation isn't fair to the buyer when not only having to pay commission, but decades of interest on that commission built into the mortgage or trust deed in this shell game of moving the numbers around. In the end, it must be new home builders that must bring more inventory into the market in an attempt to close the gap of an out-of-wack supply demand. Politicians need to look at regulations and fees charged to builders in relationship to that price point the builder would agree to sell the property. ie. Mr. Builder, if the final sale price is at or below this amount, then the permit to build will be less by..., payable at the close of sale of that house. Should the sale price go one dollar above this set amount, then the permit will be this..., considerably more! Permit cost is now set on square footage which equals value, however, to encourage builders to focus on entry level structures at the lowest possible cost to consumers, then give the entry level consumer a 1,400 sqft house, 3bdrm, 1.5ba, kitchen and living room with a one car garage. California needs to get back to the type of houses that was being built in the 1960's. The state needs to set a very low permit fee of say $10,000.00 on all property built and sold at, say $399,990.00. Address zero lot line regulations for more houses to be built on a parcel of land. There are solutions to more affordable housing, but it must start with politicians and regulations that govern development of affordable housing!
Agents & Brokers are shifting to online brokers like Big Block ( California) who has 3 tiers for agents to choose the broker takes a flat $1200 from a 5%
commission. It gives agents . It’s the future. The ability to offer a3.5% to 4% to compete for a listings. The old structure agents had to pay their Broker commission and split it 50/50, work up to 60/40 on next deal and top out at 70/30. Rates are all negioatable.
So in the last 10 to 20 years home prices in california have doubled. 6% was common in my limited experience and usually split equally but some times 4% / 2%. Obviously because huge investment groups are buying up real estate driving the prices out of reach, arguing over 1 to 2% when prices have gone up 100% seems a little silly and for sure will never solve the problem.
We actually sold our home ourselves with a company that charges a minimal fee. Made out really well with no realtor. But to buy a home I'd use a realtor. I paid my sister to handle the deal--it's best not to do it personally.
What was the law suit for??? How is that 6% commission really divided???How is Missouri law different from California???WTF was this report all about???
If you want to lower prices build more houses, allow more housed, condo, and apartment to be built. Cut regulations to allow more building. Housing is a supply and demand. Its simple.
Yes...and no...I don't think an efficient asset market will ever allow for the production of said asset to get so high that it actually diminishes the value of the asset itself...at best, we can expect the supply to grow enough that we stop seeing housing prices inflation outstrip general inflation rates.
Just think about it from the builder's perspective...why would they build something in a market when the price of what they are building today will be less in 6 months time when they are ready to sell when compared to the current price...they would just not build...which would add its own upward pressure on prices...
Are you a Realtor? Like literally providing no arguments why someone should pay 6% or practically $60k for nothing? Closing costs cover paper work for buyer. Houses are demoed on open houses and found on Zillow. Literally modern mafia.
It's more important to protect the banks than to help it's citizens
@@triaxe-mmbyou're wrong building more houses always brings down prices as more supply is injected. Just gotta gag the nimbys
The buyers never pay???? What’re you all talking about. 5% is standard. Here I thought people were charging 8% or more but no, standard 5%. And it’s only the seller. How does this impact buyers again??
Realtors do relatively little for the ridiculous commission
Hope things change
This will only make it harder for the first time home buyer. They're already scraping the barrel to come up with a down payment, then theyll have to come up woth money for a commission so they have representation and guidance. The agent doesnt make the decision on what house the client wants to see either. They will show the house thebclient wants to see regardless of commission. Further, the seller typically will be buying another house and currently not paying commission on tbat most likely more expensive purchase. Anyone who thinks home sellers will lower the selling price if it changes are delusional at best. They will keep the price high high and pocket the money.
Id love to know what money is behind these lawsuits... Its being funded by some interest that doesnt have anyone elses best interest in mind. Lets not pretend buying a home is lile buying groceries or a car. Its much more money, there are tax.issues, legal issues, family issues, safety issues, compliance, regulations, rules, amd ethical considerationa in play. I really want to know who the money behind these lawsuits is.
You have it backwards. Homes can only sell for what the bank thinks it's worth unless you want to pay all cash.
@@wanaraz the bank doesn't determine what a seller lists their house for.
@@etieseler The listing means nothing. The sale is everything. That's why you use an agent
Real-tors... not Real-uh-tors.
Juliette Goodrich THANK YOU for saying "realtors" instead of the commonly mispronounced version "real-i-tors". It's not unusual at all to hear people in their own industry say realitor. Another example is "jewelry". Not jew-le-ry. Didn't intend to go off on a tangient here. But thank you again.
Thanks, mom!
totally tangential, but I found it interesting that the lead plaintiff's name is BREIT (also name of blackstone's REIT).
In the past, seller pays 2.5% and buyer pays 2.5% commission. This is not set in stone and the commission can be negotiated up 3% or down 2%. It’s ridiculous to make the seller pay the entire commission that’s highway robbery!
Great ad for Aalto.
If you want to fix the commission, I expect you to sign everywhere and not ask for more, you can read.
In Australia the RE brokerage fee is 2%.
Has nothing to do with cali
Really, realtors ripping off people? Heller it's been going on..
Realtors do nothing but some easy to do paperwork. They unlock a door and walk around with you. That's all, and they expect that high a commission. It's absolutely ridiculous. It should never be a percent, and you should not have to negotiate like this nob is suggesting.
This will do little to nothing regarding lowering home prices in California. The seller pays the full five-percent commission so the buyer doesn't care about where a small amount of the overall purchase price ends up. The seller, of course, wants to sell the house for the maximum possible price. A drop of a percent or slightly more in commission fees isn't enough to change that dynamic.
Notwithstanding what's written in my comment, I do agree with you, as well as some other comments. It's truly hard to achieve the goal of lowering prices in a market terribly short on product. This starts with the state and how policy and rules are concerning new home construction. Example, say a permit to build one house at six hundred thousand dollar value, the permit costing what? Fifty to seventy thousand dollars? Outrageous and as a corporate builder, years and years of legal cost to get a project through the public process! Inventory is seriously lacking, always will be untill more product can be in the offering, that must come from new home construction to catch up with market demand. Once product demand is where it should be, a better flux in supply and demand can be realized when factoring in prices. I agree with you, other solutions aren't necessarily the solution to lowering pricing in the bigger picture!
Agreed 101%
Yeah "prices are already high, let's just keep paying 5% on top of that practically for nothing". Perfect reasoning 👏
The sellers agent is optional, it's called "for sale by owner". Real estate is an industry, just because compensation is a commission vs flat fee doesn't mean prices will go down if the compensation structure shifts from commission based to fee based. Which other industries require education for licensure or a certain amount of years of experience to qualify for, but then society on the whole devalues your work? It is not illegal to sell your home without an agent, however the liabilities are profound. These are complex transactions that go on for months, and carry high potential and liability for fraud and errors that could cause loss of hundreds of thousands of dollars +++. I don't think the real estate market where you have several hundred thousand to millions of dollars+++ on the line is the place where you want to go DIY 😅
You must be a realtor.
@@reptarthetrx2408Looks like you perhaps are a layperson who doesn't understand the industry 🤷🏻♀️
No, not a realtor. In the property management side of real estate, and have my degree in real estate.
50,000 fee for helping shopping. Nuts
If you got a million, what's 50k to you?
You don't need a real estate agent to buy or sell your home.
now go after the title companies that charge every time you re fi or do a heloc stupid laws charging for transactions in less then a year for example
This lawsuit will also benefit REAL ESTATE TECH companies like AALTO who want sellers and buyers to pay them to buy and sell homes online.
Good luck with that who's supposed to show the houses to the people the people that live there? What could go wrong with that....
This isn’t going to change home values.
not gonna make much diffrencec
Get rid of 50% of government and regulation you'll have lower prices. Its always government one way or another that makes everyones lives more difficult.
The heck kind of idiotic disinformation nonsense is this? Commission rates doesn't prevent new homes from coming to market, home owners can sell their homes on their own its FSBO for sale by owner. Also, why would a buyer discuss commission rates when they aren't the ones paying the rate? They sellers pay the rate. This story is just asinine.
I always found it ridiculous how they try to push fees onto the buyer, especially when the buyer is independently looking for homes and found it themselves.
Most anything, the seller pays commission to the salesman, the buyer doesn't get some damn fee attached to the price.
As a licensed real estate agent for twenty years in California. That said, I've never earned any commission selling real estate, my employment required a state real estate license working with corporations. I see with consolation of real estate companies just that. Hmm..., 🤔 I wonder how many real estate brokers would consider lowering the brokers commission, that would be the companies share of the commission to secure a deal between buyer and seller. It seems that it's always the agent first who's doing the leg-work that must or no deal. This is what happens when mom and pop real estate brokers are taken out of the mix, gobbled-up by large corporate real estate brokerages, it's that simple! With less pay more, with more pay less! That's how true capitalism works, not crony capitalism! With only five big corporations in the media news business, you get fake news and an agenda! I see the United States today as a hybrid capitalist system and not true capitalism! These so called elitist coming out of these so called Ivy league schools are in it for themselves, controlling everything and it must be stopped! The American economy over time has now been engineered to serve the elites in this country. They write the rules by which all must play by while they having their hand in our pocket holding our wallets. How does that saying go: YOU'LL OWN NOTHING, HAVE NOTHING BUT YOU'LL BE HAPPY! Isn't this the end game! We'll live in a fifteen minute city not needing a thing walking to where fifteen minutes will take us. Be allowed out of our sleeping like coffin-pod once a week to get..., that the elites will allow in our beautiful existence to serve them. WAKE UP AMERICA, THE PARTY IS ENDING AND THE CLOCK IS NOW TICKING AT MIDNIGHT! Stop the elitist from taking your decades of labor earned wealth for themselves, sucking off your labor like a leach, taking in night like a thief, that which should rightfully be yours! 😮
You have to be more specific than just using the term "elitists".
Liar liar, pants on fire 🔥🔥🔥
@@gregegg-ef1kl What simple minded people on TH-cam!
BS on lowering prices. The owner will just pocket the cash.
So what... they're the owners they deserve too...why should the real-estate agent get more?
Redfin has been 1% for a long time
They do 3.5%. 1% is for Redfin but they share for a buyers agent of 2.5%
I dont care about prices...I hate to be the bearer of bad news but LLNL nuclear lab has been leaking radioactive iodine for years...but recently a few months ago there was a release that prompted the DOE place the lab under federal oversight...I understand they dont want panic and oncology takes many years to develop..But I first read about it in a small local newspaper that they drop free in your mailbox, (was it Livermore Independant or something similar, which we always throw away), so, I confirmed it with a person I can trust who works for the lab...who said there were employees who would go home after work wearing contaminated clothing...somehow, I am not surprised at all, it is just a part of the overall mess...I am so moving out, not only of Livermore but out of California, period
Yes, yes and yes! I agree with this man. Once a buyer decides to present an offer to buy, that buyer first has the lawful right to say to the agent what they're willing to pay in commission. Price too high then, say 1% commission can be offered by the buyer. It is then left to the agents and seller to accept or not and, the buyer to offer more in commission if they feel they must have that property. I say take the brokerage out of setting the overall commission rate. Most if not nearly all brokerage commissions are same in percentage or darn close enought to be considered as monopolistic and has been for... Think about that! 😮
This is out of touch, buyers don’t have an extra 1% to pay their agent. At least this is how you have it worded. If you are saying the buyer agent should negotiate to cut their commission to 1%, then yeah. And it’s been happening for years
I see you don’t know how the financial real estate aspect works. Buyers don’t have the money the cover the buyers commission and banks won’t bay unless is coming out of the proceeds for the sale of the home. Commissions are always negotiable and they even negotiable in the fees for the buyers agent to request more money from the seller if he feels the commission is too low from the listing agent. People really need to go back to school and look up what “antitrust” means.
@@AbelSFRAgreed 💯
@@AbelSFRActually I do as a CPA. You, well, must be one who blindly goes along with... My advice to you is this, it's really quite simple. Go to a table funding of a real estate transaction, sit there and observe. What you will see is this: There will be many checks there on that large conference table, fingered together for distribution as the process of settlement takes place. Six, eight or even more checks drawn on the bank that will hold the mortgage to the property. As the process moves forward to completion of the transaction, all of these checks will be given to, say, real estate inspectors, real estate brokerages, appraisers etc. And of course, the seller of the property. Now, what you won't see is this, any check(s) there on that table for the buyer! Why? See, you haven't a clue why? IT'S BECAUSE EVERY CHECK THAT WAS ON THAT TABLE THAT REPRESENTED A MONITORY AMOUNT IS MONEY LENT TO THE BUYER THAT MUST BE PAID BACK TO THE BANK. THE MONEY GIVEN TO THE SELLER AND ALL OTHERS WAS THAT OF THE BUYER! THE BUYER NOW OWING THE BANK! You can play your shell game here to try and convince others of something that isn't, however, people do see through people like you. I suspect you're a real estate agent or real estate broker defending your turf of being able to set,YOUR COMMISSION! See, people are now seeing through this three card Monty game of moving the numbers around, of which those in the real estate profession know all too well how to play, to play the numbers to get the deal done. While that may be good for both seller and buyer, it equates to this: a buyer agreeing to a higher commission for real estate broker services, even if pass-through in the selling price, tantamounts to thousands of dollars the buyer must pay on top of your 5% or 6% commission! It's ovious, YOU DON'T UNDERSTAND HOW FINANCE IS APPLIED TO REAL ESTATE TRANSACTIONS! Read Real Estate Financing, Real Estate Economics. What you need to understand is this, the day is coming when the services of a real estate agent or broker will no longer be needed for a real estate transaction. STOP WITH YOUR MISLEADING OF THE FACTS CONCERNING WHO PAYS FOR WHAT. THE FACTS ARE THE FACTS, IT'S THE BUYER ON THE HOOK FOR EVERY DOLLAR AND PENNY IN ANY REAL ESTATE TRANSACTION. NOT THE SELLER OR REAL ESTATE BROKERAGES! LOL, Just ask anyone paying his or her mortgage! 😮
@@amandajeneeYes, it has been happening for years, agents lowering their commission to secure a deal.This presentation in this video leads to law! How the process can be changed to stop the broker from setting commissions. And may I say, stop the broker from dictating to the real estate agents when it comes to who may or may not lower the commission rate! THE BUYER WILL BY LAW, STATE THE COMMISSION RATE THAT THEY WILL PAY. THIS APPROACH TO CHANGING LAW WILL ALSO ADDRESS THE BANKS ROLL IN THIS! Understand that this is a legal change taking from the broker the ability to set commission rates that have now been seen as troubling. Don't ask me, see what the courts have now addressed in these huge fines! The days of nearly all real estate brokerages setting commissions will now be ending or, face legal action! See, when all brokerages commissions are the same, notwithstanding the end result of negotiating actual amount on each real estate deal, it's monopolistic! And note this. When first signing a contract with a seller or buyer, that commission rate is quoted. When quoted to a seller of real estate, that seller then factors in that amount above the actual price they want hoping the buyer will buy at that price. THIS IS MONOPOLISTIC, NAKED ON ITS FACE TO THOSE IN THE LEGAL PROFESSION. See, once the law is changed, the banks must adjust to ensure their market share or not write mortgages, it's that simple! Adjust or you're out of the mortgage selling business! The banks will follow the direction of the courts!
“Tens of thousands of dollars” of commissions rates? Your numbers are too low.
Buyers agents work damn hard to earn a living. Sometimes you work with buyers for 6 months to find a home and many times you don't find a home. No base salary, commission only. So there's no guarantee you'll be paid for your efforts or if your client will walk on you. It's a very tough and stressful industry. So for those of you who don't know the efforts and hard work buyers agents put into finding you a home that meets your needs, you're either an ungrateful person or chose the wrong agent. They work hard and deserve every cent of their commission. And if you've worked a commission only job you know the heavy taxes you pay on that commission, so they're not making all this money you think they're making after all is said and done.
How much lower? $10K. Big deal.
Their house is old, small, dated and it's not worth to pay $1m.
It has to drop $200k to $300k at least.
Bad dream ,
This is been going on for decades, and it really accelerated since the last housing bubble bust. They had to figure out a way to make more money.. 💰
Everybody knows about this in the industry. This is no secret. . 🤫
Actually real estate commissions have gone way down they used to be consistently 6%, now negotiated at about 4.5%
Whose they and what secret?
Realtors mad with this one 😂
Stop diverting from the real issues..always blaming and pointing at another issue.. not addressing the actual problem.
Well, this wil make it easier to turn the subdivisions into section 8 housing so the illegal immigrants can use government funded cash to put them in houses instead of living at the airport.
Exactly....
I'm on section 8. I'm American though...
Legislate a laws that stop corporate from buying single family homes. It will keep home prices low...........................................
Looks like the Plaintiff is living well. He didn’t care about consumers he just wanted to make some $ off of the situation
Wonder what % of comments here are written by real estate agents 😂. Literally defending their 6% with no arguments. "prices are already too high! Blabla". Can someone explain when I sell my $5m home in Bay Area, what exactly am I paying $300k for? It's a an average size house across US, typical deal, why would it cost $30k in Texas and $300k in South Bay just because it's expensive land? Ridiculous. It did make sense 50 years ago when there was no internet. Now it's just parasites.
It will also reduce the buyers pool, because most buyers can’t afford commission. So the low income buyer will not be able to buy.
It's kinda like the 'tipping thing' only different. 30 dollar tip nailed onto my thanksgiving dinner for a guy to fill up my OJ cup while i got my own food at the buffet! same same only different.....
Dang you tipped him $30 just for that?!?!
@@MasterVader510 it's in the bill. We won't be going back.
Currently, it's a seller market. FSBO (For Sell By Owner) and use the Title Company (at a fraction of a cost) to do/manage all paper work will save sellers A LOT of "wasted" commission $$$. GLTA.
The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH.... stock,silver and gold)
Only in the US are real estate commissions non-negotiable and ridiculously high. Absolutely time for a change.
they are 100% negotiable
It's 100% negotiable but there's an invisible standard that they all follow when it comes to commissions, so they won't budge on the commission. It's invisible price fixing so it's very hard to prove that they are price fixing.
They’re negotiable. My buddy asked a newbie realtor to reduce down to 3.5 % total. Result, one potential homebuyer who wanted 25K off. After months, he increased it to 6% and sold it within weeks. Go figure.
@@steveh5882 there is no invisible standard. 😂 you can’t prove a negative? Redfin charges 1 percent on selling side to list your home, how is that a standard? We tend make up stories in our heads when we don’t know how things work instead of asking questions.
Non negotiable, I'm guessing you've never sold a home.
There is a problem with his idea (which he should already know, so is he a liar 🤔?). The problem is, in California, agents are always in contact with sellers, not buyers. And sellers can already negotiate the percentage. Buyers agents don't exist because the agent can do a bunch of work, and there aren't any legal contract protections possibleunder the law, so buyers can just go deal with the seller agent alone in the end... and negotiate the commission percentage down in exchange
these real estate agents shouldn’t get anymore than 500$ to help you buy a home
Anybody can negotiate the broker fees. You could have zero broker fees if you sell the house yourself. I don't see a problem.
It's a joke you want a buyers agent YOU pay for them not me the seller
If the buyers having agents helps you get offers quicker and helps you sell faster , doesn't that benefit you? If buyers now have to pay for their own agents wouldn't they just short their offer by the amount of their agent's fee?
@CH-fp2mp No, they won't hire them because they will realize that they're a ripoff. Most buyers find the listing themselves. Let's now talk about how by magic realtors get those buyers. It's because they LIE and say that they're FREE to the buyers which isn't true at all and this lawsuit proves that
@@CH-fp2mpthe new CAR forms that recently rolled out addresses these new issues coming up from commission disputes. What is going to happen there going to be less agents in the industry because they are going to have to justify there worth in why they are getting their commission. But with less agents knowing how to market a property and expertise or negotiating the real estate agents left are going to make more money because they going be like attorneys. The good ones get to call their rate, there is no cap on fees! I feel bad for the consumer buyer they have no idea the pandora’s box they are opening.
finally ! rip off realtors
This news report comes across like a promotional video for online real estate companies, like Aalto.
Need to look at prices on permits to build, by the time we added all the permits in LA county for a 1480 Sq home was $ 107,000. All the fees are added to the cost of the home an the buyer is financing all the fees for 30 years
FYI. PLUS THE REALTOR
Hopefully soon we will live in a world where there are no realtors. Leach industry. Don’t do anything but take literally thousands of dollars. Imagine being the selling or buying agent to one sale a month and making $400k a year. What a scam!!!!
Hopefully one day we'll live in a world where "armchair expert" realize they are not actual experts. And, please explain your math on how you arrived at $400 k annually as a buying or selling agent 🍿
And where in the world are you getting your numbers from Mr. reptard!?
This is self serving. This guy stands to rake in millions from this proposed change.
It's like going to court without an attorney. Representation is important. Just because there are a few lazy agents doesn't mean agents don't have value.
I worked in RE for 30 years. I once bought a house without an agent. It became a nightmare with the seller and I getting so angry at each other we had to communicate over email. Emotions are running high when a huge purchase is being made. A professional agent can make a huge difference. I did, with hundreds of my clients. I'm retired now but still believe agents deserve their commissions.
This guy is a fly by night startup just desperate for media attention