How America's #1 Realtor Jason Mitchell Is Navigating This NAR Settlement
ฝัง
- เผยแพร่เมื่อ 19 มี.ค. 2024
- Tune in to this special interview with America’s #1 Realtor, Jason Mitchell, as he shares his thoughts on the recent NAR settlement and his solution, which he calls a ‘Realtor pledge’.
He also walks us through powerful points and scenarios after this settlement and how this impacts buyers' agents and listing agents in the future.
_ _ _
➡️ Experience our Borrower Intelligence Platform: hubs.ly/Q01DRd150
_ _ _
➡️ Subscribe to TrustEngine TH-cam Channel: / @trustengine
➡️ Follow TrustEngine on Social Media: @TheTrustEngine
#trustengine #mortgagecoach #noborrowerleftbehind
![[UNCUT] ฝันรักห้วงนิทรา | EP.9 (3/4)](http://i.ytimg.com/vi/ikd1tEhXbp8/mqdefault.jpg)
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Buy now, home prices will not go lower. If rates drop, you can refinance.
The government will have no choice but to print more notes and lower interest rates.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Amber Angelyn O'malley who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I have watched over 30 videos on this in the last 2 days. This is BY FAR the best. There is a reason Jason is #1. He knows what he is talking about. I am 100% aligned with his point of view. Good job.
I absolutely agree
100% agree
Agreed!!
Agreed!!
The best investment one can do right now is investing on real estate though stocks are good but ever since I swapped to real estate, I've seen so much difference.
I have been making a lot profit through real estate which has been the main source of my income.
I’m interested I want to move to real estate investment can you help me ?.
Sounds great! please I will appreciate your assistance on how to go about it, who's your coach and how good is your coach?
STEPHINE KOPP MEEKS is who i work with look her
Thanks for recommending i find her and left her message online
I just want to say thank you from the bottom of my heart to all of those who watched my interview and commented. Regardless if you agree with my stance or not, the point is to have discussion. Thank you Dave for having me on. And THANK YOU lending community for all you do. I promise you my position is one that helps your community and your buyers alike. Thank you!! JM.
Good work Jason..45 years in and this looks like a good time to check out. Do not fix it if it isn't broke. Short sighted...
@jasonmitchell6841 do you have a sample form where the buyer signs telling the agent they only want to see properties where they do not have to pay out of pocket? Thanks
I could not agree more, Jason
Out of all the language’s to speak in the world, Jason chose to speak Facts.
Jason Mitchell 2024! This is the only industry video that takes the entire economy into account to explain what's going on. Thank you for sharing! Jason....please run for office!
This is the ONLY real video. Agree 1000% with you. You are the only one who didn’t say that this is a fantastic change in the industry! Everyone that said this is a great opportunity , don’t have any idea about the difficult situation for our clients now.
yep
The option you’re not saying is if an agent won’t show a listing because there’s no buyer agent compensation, The client will just go directly to the listing agent and see the house. They’re not going to walk away from a house they want just because there’s no buyer agent compensation.
He did address that.
He mentioned that.
he touched on this- the. time he was sued, it was Dual agency. He noted that the List agent might do it, but no discounts because the one side has been reduced.
@@patriciaellinghausen4365 The original poster isn't referring to dual agency, but rather the buyer representing himself. I agree with him. In this new world I, as a buyer, would do the searching and negotiating myself, then hire a realtor or attorney $1k to make sure I'm legally covered.
the clients will not pay and they will go directly through MLS< you'll see.
3rd party sites will emerge with $299 list fee or $299 buy fee
They already exist. They have for years. But will the deal close. I'm betting on a lot of "back on the market" listings from July 2024 -March 2025
What I fear is that there will be a lot more buyers going directly to the listing agents and bypassing a Realtor for buyer representation
Yes and like the majority of discount service that have been around for decades they will only represent a tiny portion of the market. This is nothing new.
It’s already happening. I have a realtor license and only sell new construction. I hold my license with a brokerage that only charges $99 per transaction and the agent gets to keep the remainder of the commission. The agent does pay a $99 monthly fee to help cover the brokerage costs. It allows agents to take less commission and still come out well because the brokerage isn’t taking most of it. The brokerage does okay because they have a ton of agents. And no, my deals don’t fall through and we close plenty of homes, enough I get text messages routinely from other brokerages trying to recruit me. 😂😂 The push the fear factor is strong on this video. 😂
Not disagreeing with your second line, but unfortunately, you often get what you pay for. In the case of homes, "most people's" largest investment (unless you're in the yacht/jet realm) I certainly wouldn't the quality of representation that will likely come with a $299 price tag. But people won't realize that until it's too late, most of the time.
Jason Mitchell is amazing! Thank you for having Him on and for a great Interview!
I am a realtor, trainer, and sales manager for 37 years and this hit every point I have been saying to our agents since the decision was made, this is the best video I have seen and will be sharing it. The industry will adjust but it's true that this decision did nothing to help consumers.
Well said and agree completely!
Real estate is a perfect job for former sex workers or prostitutes. You you have to see as many clients as quickly as possible. You have to get them in and out as quickly as possible. You have to get the most money as quickly as possible...
@@DakotaFord592 Tell everyone more about your extensive experience as a sex worker.
@@kevinrushton2906 I have had friends who were prostitutes and then retired and then did real estate. 😂 It's common knowledge, after you're done selling your a**, you can sell a house. It's an easy transition because you learn all the skills.
@@kevinrushton2906 real estate is the perfect profession for retired prostitutes. Always be suspicious of real estate people, they're usually sex workers who are retired. 😂😂
I left NAR and opened up a non-member brokerage. There are many benefits to being a non-member.
Many may be considering this route.
Listing agents will hold more open houses. They’ll put out a one page term sheet for unrepresented buyers to make an offer. LA will write the contract and disclose agency for the seller only. Buyer can show contract to an attorney, a paralegal, a friend, or rely on self. Nobody will pay for buyer representation.
They won't have to because most sellers are still going to offer compensation, it simply won't be in the MLS
@@kevinrushton2906 Meaning that that offer of buyer representation compensation is not enforceable. In a seller’s market, sellers will review their multiple offers with a buyer representation credit as one factor among many. Offers with that term will lose out more often than not. Buyers will learn that their offers are uncompetitive with a request for seller- paid buyer side representation. Pretty soon, paid buyer representation will fall out of practice and become unheard of.
The problem is that lawyers and paralegals will charge by the hour, and they get paid regardless of the outcome.
As a buyers agent, we often work for months without any pay. Then the buyer decides to rent and we get paid nothing.
In this scenario, the buyer would have paid a lawyer thousands of dollars. But actually no... They just wouldn't be able to afford the lawyer because they're a first time buyer with zero down.
This guy is 100 percent right.
What is politically troubling is that the DOJ is telling a homeowner who and what they can pay.
Agree completely. Nauseating.
Hundred percent agree with JASON that the screws over the vast majority of buyers. Pisses me off so much.
How?
The only point I think he missed, is that it is still legal to be a Sellers Agent when working with a buyer. Agency Disclosure Form explains to a Buyer that I am a Sellers Agent. The Seller is paying me, however, I am leaglly bound to be fair and honest to all parties to a transaction. I am broker. A Broker brings a Buyer and Seller together. Also, Auction houses chaarge not only a Seller Fee, but also a Buyers Premium. I have seen 10% and the Buyers side and 10% on the sellers side. Thats equates to a 20% commission!!! The same people who complain that we are over paid, are the same ones who think nothing of paying a 10% fee to an auction house. Realtors are NOT over paid in my opinion. Go work in a real estate office for a year and watch what they do. Youll then realize they are NOT over paid!!
I'm 35 year tenured pro, past everything in Association governance, and expertly trained in agency law.... You are right. The flaw is so many think dual agency is the same as selling your own listing. Or one must be a dual agent to do so. Dual agency exists in many ways beyond that situation. Totally easy and legal for the listing agent to disclose they will represent the seller and help the buyer purchase that listing. Yes, it may be better the buyer gets their own representative. But that is a decision the buyer has the freedom of.
US consumer has to sue Kechmark for frivolous lawsuits. The current system has worked for over 50 years we just need to come up with better disclosures and leave everything as is but we need to come together and Sue lawyers like Ketchmark for misrepresentation
Thank you Jason for keeping it factual, real, to the point and everything we want to say!
Just came across your video - you make some excellent points. I believe you are glossing over major themes. 1. The public at large was uneducated on the real estate process as a whole (this is just how its done) - now disclosure of compensation is negotiable & not a requirement. 2. Economics/competition will put pressure on sell side commissions (mandatory in place sell side agreements will allow property owners to opt out buy side compensation) this is the whole basis of the lawsuit making it illogical to assume prior buy side compensation will go back. 3. It will be much harder to conduct business from the buy side with buyer compensation field being eliminated from MLS. (a purging of brokers can be expected) & that side has never paid a commission & will resist. 4. Getting buyside clients to sign the required agreement that has to explicitly outline compensation - no open-ended wording is allowed (your pre-show agreement will not be compliant) is going to be extremely challenging to brokers, especially new ones. 5. Buyers will seek homes from listing agents/agencies direct - paying (2) fees for (1) transaction will be a thing of the past in time. 6. Listing agents will be unwilling/can't compensate the buy side because it commission compression as you articulated.
This is excellent. I noted specific excerpts that had the most powerful messges:
2:23 - 5:50 representation for first time home buyers (FHA, VA); evolution of case & transparency
7:03 - 9:58 consumer behavior, complexity of changes
14:22 - 17:15 dual agency; collusion accusations
25:21 - 28:39 fee for service; effect on home prices; inflation
Bravo. I remember in 2020, when the government was giving free money 💰 I my first thought was this is not going to help. In the short term, this may seem good, but in the long run, it is bad for our economy. I learned this by hearing Javier Milei, a great economist from Argentina.
Jason Mitchell woke up this morning and choose to spit facts 💯
I have 2 new listings. Both asked me about the "new commission ". Long story short, both decided to go with the old commission model after I outlined the pros and cons, and possible problems. I told both that if I decided to sell my home today, I'd offer a Buyer Agent compensation to attract as many Buyers as possible, and five them that incentive.
They both agreed.
So don't let this scare you. The market and Sellers decided the commission model, not agents. It became common, still negotiable, because it made sense.
So grateful for this video - ALL of these issues are what I have been talking about (and fearful of) since the release of this news, but no one has been able to put it to eloquently and matter-of-factly for ALL to understand, not just agents. THANK YOU JASON MITCHELL and for Mortgage Coach for hosting!
Kudos to Jason Mitchell for giving such a clear and concise reality of what NAR has done to the Residential Real Estate community.
1000%- Could not have explained this mess any better. Jason is real , 100% right and speaks FACTS!
I agree with almost everything he said here. My only issue is that he (like most agents) is coming from the point of view that the buyers agent is worth 2.5 to 3% and i think that needs to be tested by the market. This is the first time in history that it has been an open discussion with buyers.
I also agree that there should likely be a national mls and i am unsure of what NAR's future looks like
I think Lenders should have to put on the pre approval if their approval is contingent on the buyer broker compensation being paid by the seller just like they do with seller concessions.
Jason is 100% correct that listing agents need to communicate this message to their sellers! And lenders can really help a lot here as well. But buyer agents need to also get prepared to communicate their value to home buyers.
I see new services popping up to assist homebuyers? Lots of other countries use Real Estate lawyers.
Yes, people pay a la carte for only the services they want and many countries 1-2% is more common for total payouts to get a house sold. People generally find their own houses and then just hook up with a buyer agent for the contract, so fees are cut.
Oddly, many buyers still do this same thing in the US, find their house, work everything out, and then just bring the agent on for the contract….only the agent still gets the big commission unlike other countries.
Wow! Jason Mitchell com'n out swinging with the truth. NAR and the DOJ have screwed buyers, especially those buyers who can least afford to pay, first time home buyers. I'm very interested to see if local MLS will be replaced by a national listing platform that is not beholden to the NAR. New home builders win because their business model has consumer direct advertising built into its offer price. There's so much to go on about! Dave, thank you for bringing this content to the lending community who needs to be informed.
Excellent call Dave & Jason. Thank you.
Can I also add that this new ruling completely opens the door to sellers being able to discriminate against buyers they don't like. As listing agents, we are required to present all written offers to our sellers. Let's say there is a seller who says no to compensation, but later changes his mind. Maybe he gets 3 offers along the way, but because co-op compensation was not adequate for each of those buyers, the deals do not come together. Seller later receives an offer and agrees to "full" co-op commission. How do we know it wasn't because of how the buyers "sounded" to the seller? Maybe those first three sounded "foreign"... maybe that fourth buyer sounded more like the 'type of person' the seller wanted.... How do we prove seller's mindset was due to fatigue and not blatant discrimination? You can't. Great work Department of Justice!
You forget to mention the fact that Wall St is buying a huge percentage of homes and then turning them into rentals. Also Airbnb.
Bravo!
After doing this for 23 years. I don’t see how lenders can provide compensation- he’s right for encouraging sellers agents to provide cooperative comp
I am a lender. Today, you would likely use Seller Credit to offset cash to close. With the extra cash, the buyer could pay. In the future though, I think Buyer representation will be interpreted as a standard closing cost and therefore directly available for Seller Credit use. However, seller pay makes more sense because they have equity to pay more than new buyers.
I am so glad I found this video... Jason Mitchell is fantastic !!! Thank you!!
Thank you David and Jason...great info!!
never heard of this guy but I like him. Well spoken and spoke facts
Must be why he’s the #1 realtor right?
This settlement is the best thing ever for buyers/sellers. 5-6% never made sense and I have experienced the "steering" behavior and I think the real cost to sell a home will finally, finally be realized which is a fixed price < 10k (total) regardless of price.
When are buyers going to sue the DoJ for discriminating them from having a fair housing opportunity. So much about fair housing law.
Waiting for an answer on whether “Buyer Brokers Protected” can be on the yard sign, individual listing website, etc. I assume it can be since that’s not on the MLS. My broker is supposed to find out at a meeting they are going to soon.
My understanding is that in all marketing can show that Buyer's Agents commissions will be paid. It just can't be in MLS .
Thank you for sharing this call 👍
Thank you !!! This is truly by far the best explained.
Great interview, thanks Dave and Jason. Shared this one, for sure.
This is an excellent video he is spot on! Also, que the fair housing lawsuits, where buyers claim discrimination because there is no standard across the board i.e. LA offers his golf buddy 3% buyer commission and Tanya down the street he offers 1% or nothing at all. How can the LA prove equality in compensation...they can't!
Ultimately, both seller and buyer commissions are coming out of the sellers equity as always
Such a brilliant, straight talk summary - thank you Jason! 😊
This is amazing. Love hearing his thoughts.
Excellent explanation of the current situation. Thank you!
Excellent explanation. Thanks, Jason
Great information from Jason. Thank you so much for your time
Jason Mitchell you are spot on!!!
He's missing the fact that the buyers will bypass the selling agent and will go right to the listing agent.
I'm already 17 minutes in and this is buy far the best interview. Jason Speaks Truth. Thanks for giving him this platform to speak on mr host.
Wow, very well said. This is by far the best video out there regarding this subject.
Great stuff once again Dave!
Your thoughts and presentation are right on. Your voice makes the most sense. IMO I can see where prices come down where properties actually linger as a result of buyer getting cold feet, backing out of sales, scared off by a home inspection, schared by cousin Charlie. Buyers with no negotating skills may find themselves in troubled waters more often. And then seeking legal council from an industry that created the problem of buyers not having representation. The legals system and hungry lawyers put a financial roadblock which again, becomes an income stream for lawyers.
Great video. Thank you Jason for clarity. As a loan officer, this helps me out a lot.
So many good points and takeaways! Definitely speaking from a consumer first perspective.
Excellent points, great video!
I am a Realtor. Jason makes perfect sense. Thank you for your insight. I agree 100% on all.
GREAT VIDEO!! NAILED IT!
Excellent video. Thank you for sharing and for being spot on.
Dave Savage!! How I found you I don’t know, I laugh out loud on the sidewalk when Jason spoke on the reason home ownership is hard. Great interview.
It’s gonna tough when there’s multiple offer and listing agent can offer lower commission to competing agents 😅
Wow, really well said, thank you Jason!!
He admits that the home prices are inflated yet does not admit
The % commission model is therefore inherently also inflated.
I would love to get my hands on that study alleging that it proves agents steered buyers away from listings with lower compensation. Does anyone know where I can find a copy?
The best explanation video so far, thank you!!!
Great explanation I have heard yet.
So you are encouraging a pledge to do exactly what NAR and several others have just settled for doing. Im not sure that's the best advice, but I guess we will see where this all goes!
Thank you for explaining it the way it really is! Really bad for buyers!
Can buyer request seller contributions in offer for buyer to apply towards fee agreed to pay buyers agent?
it may work in seller concessions for FHA- but it has not been determined yet.
I am with you 150% Jason.
I said the same thing. Jason, you made excellent points! What piss me off is how NAR wants to make a distinction between Real Estate Agents who are not members of NAR and Real Estate Agent who are, saying that we as REALTORS® holds a higher standard and code of ethics than those real estate agents who are not members.
Jason, do you think NAR will lose a lot of members?
THat is exactly true. To be a member you belong and abide by the Code of Ethics. A non Realtor Real Estate Agent is not required to follow the COE. They can do what they want. How good will that be for our industry? That scares the heck out of me. If you are a member of a golf club you can play golf, if you don't belong you don't play. I don't see any benefit to leaving NAR.
Excellent video. Jason is spot on.
Best video I ever seen about this topic this video so underrated get the word out.
Awesome take on this! 27:10
Thank you for this information
I’m real estate for more than 18 years in Florida.
Great vid.....totally agree
I’m confused. Go direct through the sellers agent and use a legal attorney for the close. I don’t need a “buy” agent with the resources in today’s market.
If a buyer goes direct the listing agent is not required to do dial agency. They can help the buyer essentially for free and make the $$ just on the list side....just saying. It's going to happen.
AGabillion times YESSSS. Encouraging the sellers to continue to offer the CO-OP. I will encourage this and all our new onboard agents to do so. It’s a new chapter. We Will persevere. 26:26
I read that buyers in Australia can finance buyer commissions thru their mortgage.
Agreements can always be renegotiated in both fast/bloated markets. In every industry when regulation comes in commissions always compress, its Darwinian.
Jason's group handled my VA home loan transaction flawlessly and he speaks the truth in this video.
1000% correct IMO
Thank you for the support to realtor question
I can see how they’ll be more realtors or agents changing jobs or driving buses.😮
Buying a home for many already seems out of reach due to our nation’s housing affordability crisis. Now, buyers will need to set aside saving up in hiring a Real Estate Buyer’s Agent.
I have deep concern for buyers, especially First Time Home Buyers in low income or for those using VA and FHA loans, that they may not be able to have access to Real Estate Agents if they are not able to afford to hire and pay a Buyer’s Agent. This will create an unfair market.
Spot on Jason
This is a great video, hands down the main thing to take form this is that this DOES NOT HELP BUYERS. This whole lawsuit is going to mess it up with buyers. It will be a little difficult for lenders to pay for REALTOR commissions through the loan. I believe they need to increase allowable seller concessions on Fannie / Freddie for buyers that put less than 10% down. It's capped at 3%. Typical buyers that put less money down, they need more help with concessions.
This guy is smart and understand the new conditions. But there are two ways to deal with the issue, the First is most likely to fail, and the Second is most likely to succeed. 1) Draw a contract that says the seller agrees to compensate the buyer for hiring an agent at closing. This most likely to fail because the seller don't like to compensate the buyer for hiring his own agent. 2) Explain to the seller that it is in his own interest to create incentive for the buyer's agent who brings him the buyer, regardless of the agent having an agreement with the buyer or not. This approach most likely would work because the seller views the buyer agent as someone who brings him the buyer. Ironically, such approach may even help the buyer's agent to make more money.
I thought offers of compensation could not be conditional ie based on offer price
This was a great breakdown with all this click bait and people not knowing what they are talking about. Ricky Carruth did a great job as well.
At 7:20 as a first home buyer if my buyers agent won’t show me a home just because there is no co-op commission and you steer me to another home I am suing. I will never sign a buyers agency marriage contract who would in their right mind do this kind of relationship? Get an attorney and inspection I represent myself so I can get my original home I wanted. That buyer agent could be bad how would I know his value?
Just don’t waste a realtor’s time by having them show you homes.
6 percent is nuts. You get rich at our expense
Go back to pre 1993 days and our problems are gone.
He is correct 100%
There has always been weak Agents prior to this ruling. Per NAR 30% of New Agents wash out annually. The odds of a newbie buyer hooking up with these types high. There are a number of Brokers who bring on newbies as an income stream. It's probable that Appraisers with Sales licenses will wipe the floor of the LA's with their training and expertise, and that's great for the consumer.
Yes, brokerages mainly are in the business of agent recruitment, they have to churn and burn through the latest agents to keep afloat because the market is highly over saturated. You can look the stats up and easily see there are 1.5 million agents licensed annually per about 4 million annual sales. That means agents have to earn an entire living from a few sales, which puts pressure on keeping commission high, it also ensures absolute failure of a large number of agents just by supply versus demand…..and this perpetuates the Ponzi scheme of agent recruitment.