Do you have any advice for home buyers? Please leave a comment below. Thank you. 👇Also, for all your major NAR Settlement Changes Questions, see answers here: katrinreal.com/qapage/
I don't think a Buyer's Agent can provide to a Buyer properties that have a Buyer's Agent compensation that is acceptable to the buyer and not provide the rest of the homes. It may be considered redlining?
@@margibaleztena81505 Currently, if the buyer via a signed buyer-broker agreement directs the buyers agent to only show the buyer properties with x amount of compensation, it is legal. It would have to be driven by the buyer and be in a buyer broker contract.
Great advice Katrin! BUYERS Never sign with the listing agent / Dual Agency!!! If you are going to pay for the services of an agent, you are better off signing with your own Buyer Agent! I recommend you seek a highly recommended, highly rated real estate agent. Open homes are a great strategy if you choose not to be represented by an agent. Beware, some agents will try to convince you that you will need to sign an agreement before being allowed access to a home. As per the NAR website, FAQ section item #61, simply granting access to a home is NOT considered "working" with a buyer, hence no requirement to sign any agreement! So technically, you can contact the seller agent direct and ask if you can be granted access to a house without the requirement to sign an agreement. If the seller agent wants to sell the home, they will make time to open the door for you.
Except a good listing agent may have multiple listings. They may have those listings scattered across different counties. It’s unrealistic to expect them to spend their day driving from one end of the MLS to the other opening doors. They’re not going to just drop everything, and leave their kid’s piano recital at 6pm to open a door for an unrepresented buyer.
@@MrPloppy1 , no one expects any agent to drop everything at a moments notice, it’s not heart surgery. And maybe selling agents have gotten accustomed to not participate in the showing aspect, but things are changing. Even a 2% commission equates to over $10k, as a seller, I fully expect MY agent, that I AM going to shell out over $10k of my hard earned money to find a way to get an possible buyer inside my house. I’m certain markets you cannot afford to miss even one customer. Realtors should take note, sellers are getting savvy more each day, soon they will start challenging WHY am I shelling out big money for an Agent? What services ARE being provided that justifies a large commission. Lawyers and doctors get advanced college and then long periods of internships, what does it take to be a real estate agent?
The NAR FAQ #61 says a Listing agent can open a home for a buyer to see without it being considered “working with a buyer.” But a buyer’s agent must have an agreement signed with a buyer before showing them a home or else the agent can be fined. “If the MLS Participant is working only as an agent or subagent of the seller, then the Participant is not “working with the buyer.” In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.”
So let me understand this. I will be on the hook as the buyer to pay my agent the pre-negotiated amount or commission even if I don’t end up buying the house or have been outbid or the deal just not going through any reason. Buyers will now have to set aside a large sum of money plus the down payment if getting a mortgage if interested in buying a home. Buying a home just got more expensive.
@@3railmike713 Depends on your contract. Most will likely stipulate compensation to be paid at closing. Just read the language in the contract. A buyer’s agent may charge a retainer fee which typically would not be refundable.
There are a lot of inconsistencies being presented in these youtube videos on this topic. A spokesperson for another company said that in open house situations, the potential buyer would have to sign in and state the name of their buyer agent. If none is stated, the agent showing the home "could" be assigned as a buyer's agent for 1 day, 1 week, or whatever time frame the potential buyer prefers. This was an excellent presentation. I would only need to confirm the accuracy of the statements concerning open house events. Also, I wonder if, in cases of a potential buyer signing multiple agreements with multiple agents, would it be worth the time and money to take that person to court to determine who is legally the rightful agent to be the recipient of the commission.
@@GH-zs9fj ALWAYS read and know what you are signing in the contract! Per NAR statement: "You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services." www.nar.realtor/the-facts/homebuyers-what-the-nar-settlement-means
What if a seller's agent verbally states the commission % to the buyer's agent, and since that conversation cannot be recorded by Florida law, they can just say they never said that. With no commission documented, this could lead to problems, no?
Florida is the state with the highest number of inventory in the entire nation with 141,298 properties for sale. In 2024, many major metropolitan areas in Florida are experiencing price reductions. Home prices are coming down, and inventory levels are exploding. Florida and Idaho have now joined Texas in reaching pre-pandemic levels of housing inventory.
I am not in the market at this time. However, if I were, I would do my own (complete) research first, hire a local attorney who knows/understands RE contracts and make an offer directly to the Listing agent using the attorney. Why would someone sign any "contract" with a Listing Agent to represent you as a Buyer? It appears the RE Industry/NAR is making this far too difficult. Yes, your point at 7:35 mins is spot on. Thank you Katrin for your informative video.
The DOJ can't rule or dictate consumer's personal offers, so as a buyer I would simply add the verbiage "Seller will pay ___% to buyers broker at closing" on my offer contract. Letting the buyer know this in advance may make them less fearful of working with a buyers agent.
But what if the sellers refuse? Then you’re out money unless you had a flat fee or percentage listed for your buyer to pay in your buyer broker agreement.
@@user-fb4sb1zi8g if the seller refuses, buyer could lower offer price, move ahead with purchase and pay buyers agent, or move on to another home that is willing to pay the buyers agent.
@@user-fb4sb1zi8g I would have the buyer sign the BBA but then explain to them that they can add that to the terms of the offer.... this will take the buyers fear away from signing the BBA
I can see car salesmen doing this next, You walk onto a car lot and must enter into a contract for a pre-negotiated amount or commission with a salesmen before I can look at or test drive a car. What happens if we are unable to make a deal or the financing doesn’t go through or what ever the reason???
Read the contract before you sign. For now I would imagine most contracts are based on you successfully closing a transaction. But I imagine that different compensation models will become an option.
Attorneys who are not also licensed realtors won’t be able to offer on site services a buyer needs, like inspections and appraisals performed during the sale. If there are issues, a buyer needs a seasoned pro to be able to preview the issues and problem solve. An attorney pretty much just facilitates the paperwork with little or no touch with the property. The bottom line is everyone needs some type of representation and those individuals require compensation.
@DianaRicciuti That's why buyers should only buy from For Sale by Owner. Pay for inspections, and hire a real estate lawyer to help understand the sellers contract and eliminate the real estate agent. Much less expensive that way. I speak thru experience. Sold my florida home 1 and 1/2 years ago. As a seller, we payed our agent a huge commission. Even though we negotiated the comission, It was very high. There should be a fixed regulation on commisions.
@@r-anne7375 I believe commission and compensation should be negotiable rather than fixed, as that aligns with the principles of a free market. That said, certain buyers, especially those from out of town, can greatly benefit from working with a buyer’s agent, as I discuss in my video. However, those who are knowledgeable and have the time might prefer going directly to the source.
Here is some TRUE "no B.S." advice: It comes down to AFFORDABILITY and VOLATILITY. Mortgages are TOO RISKY at high interest rates, especially when there are HOA costs on top of that, and the other "hidden" costs of owning larger homes and condos! The "best kept secret" to homeownership is found in the MH communities in areas like North Myrtle Beach SC, where people actually WANT to live, so for first time home buyers and empty nesters, the advice would be this: Scour Zillow in the North Myrtle Beach area of SC, where the nicest MH communities are, and if you find a home the same size as a condo with all the remodeling work already done and at an AFFORDABLE price like $125,000 or even LESS, have family help get that money together to buy outright WITHOUT a mortgage and WITHOUT a HOA, and put that rent or mortgage payment right back into the bank! Manufactured Homes are the ONLY AFFORDABLE HOMES these days, so it's a matter of finding a community that dispels the negative stereotypes, and when you find the right home, SNAP IT UP!
My advice to buyers is look for sale by owner and avoid paying a buyers agent all together. In Florida title agencies are quite good at handling contracts and closings.
Also while Florida does not require you to hire a real estate attorney for a home purchase, it is highly recommended to protect your best interest as a buyer and it is well worth it.
@@fasteddierocs In 20 years of buying and selling real estate in the state of Florida the only issue I have had go bad was when I used an attorney to do the closing instead of a title company.
@@katrinstakeI agree! Our buyer agent completely did an awful job. With us moving in from a different state, your clients should be given a lot more information and attention to things and laws they may not be aware of in a new state. Ours showed us about 5 homes, we finally chose one. We never saw her again. I had to keep calling her to find out what the next steps were all the way to closing. She didn’t show up to closing and not even a thank you card. She just showed us 5 homes and collected a check. NEVER AGAIN!
@mrsmdub259 Have you worked with a selling agent yet? lve had them give away 10s of thousands to the buyer for buy downs and ridiculous credits that weren't valid in a hot market. Then take way too much in commissions on top of it. lmagine paying out 45k in concessions on a home just over 400k. So many agents are dishonest bottom feeders of society. With a sprinkling of good agents. Good luck..
I would suggest a fixed fee that reasonably compensates the buyers agent for her time, experience and service. It could be less than 2% of the purchase price.
Buying a house just got more complicated. You now need a lawyer to understand the contract you are signing so you don't end up paying the " buyer's agent" commissions in the event that the purchase doesn't go thru. Why is this happening ????
@@r-anne7375 Hi, it depends on how you set up your buyer broker agreement in case you want to use and agent: The language in the contract should be clear. The agreement could be contingent upon a successful purchase only. It’s negotiable.
I agree however, It is highly recommended that an attorney be used. You are making a huge purchase and it is always wise to have a good real estate attorney looking out for your best interest. I have bought and sold homes with and without realtors and always have my attorney look every thing over before I sign. Well worth it in my experience.
If you sign a contract, you are hiring an agent. To avoid this fee, just call the seller's agent and ask to see the home. If they want to feed their children and pay their rent, I'm sure they'll take ten minutes out of their day and show you the home (open the door). After all, that's what the seller is paying them to do (sell the home). When we buy a car, we don't have to sign a contract with the car salesman. The same is true when shopping for a home. The old system was rigged in favor of the real estate agents.
@@christaylor8337 It was the largest financial crime in U.S. history. They got away with it for decades. Sadly, very few agents or small brokers were charged for their crimes. The cost to drag all these folks through our legal system would be impossible, due to the number of agents. Since individual agents didn't get sued, most of them still don't understand the corruption. I know the agents didn't design the rigged system. The big boys at NAR were the riggers.
I’m a seller and my agent works for me. Buyers better have a signed agreement before they even think about looking at my home. My agent will not take phone calls from anyone without an agent. I’m in no hurry to sell and I’m offering no compensation whatsoever to a buyer. I just raised my price another $10,000 yesterday to help pay for my retirement.
I bought in 2001 and sold my house in Florida in 2004 using FSBO and had no problems, and to think that at that time it was my first purchase and sale.
There will be no difference as using the listing agent’s realtor They get full pop no split I see no change yet all just complicating what normally happens After all when looking for a property how often do actually use a realtor when looking for a property these days
What will a buyers agent do for you? Provide the contract? Order a title search? Order the inspection? Assume liability if the seller doesn't cooperate? Doesn't this open up the possibility if the buyer defaults on the BA contract? Now the buyer must sign two contracts; the BA contract and the sellers contract? What if the buyer defaults on the BA sellers contract or the seller defaults on his contract. Is the buyer still liable to the BA contract? Is the buyer still liable if the buyer disagrees with the 'best efforts' of the BA? Is the seller's price listed in the BA contract or is that verbal? Can the seller still have the right to FSBO as is the case today? Can the seller be sued by the BA if he fires HIS agent or his time limit expires? It also sounds like the BA can tie up the buyer into an exclusive listing and live off listings. Is the buyer expected to sign dozens of contracts while he/she is searching? Do you think a BA would agree to a a day contract and waste his time just to present an offer? Now we have two friendly co-workers working together in your behalf........really.
@@sunlite9759 lots of good questions…too long to answer here. You can always call me to speak through this but it would also make sense to get a lawyer’s perspective.
@@katrinstake What I wrote is just scratching the surface of the litigation that could begin if anyone of the group, miffed about something, is sued. It could tie up the property for months, if not years. Now we have a lawyer on the payroll.....
@@sarahgupton2552 they have always had that choice. For some people, it could be beneficial for sale by owner if they have the time to work it through. For a busy professional, it probably would be too much to handle while juggling work. A seller can also go with a discount agency (those have been around for a long time).
This settlement is terrible for minority and women 1st time home buyers! Isn't there a reason why the other way was in place for so long? Sure if you already bought a home, then this is beneficial. But I see the discrimination lawsuits on the horizon. I see the fraud lawsuits against buyer's agents taking money from 1st time home buyers and helping the seller sell their house on the "back end" because depending on the buyer's contract, their fiduciary duties can be limited!
A good buyers agent will not only search for homes meeting your wants and budget. They will try to find homes that meet your specific criteria and make sure that the price you offer is in line with recent sales and not overpriced and will also appraise so you can get the mortgage. For first time home buyers, they can help in getting assistance in closing costs from the lender or State aid. They may even get the seller to help with closing costs, home warranty, transfer of termite bonds. They will coordinate the home inspections, roof inspection, HVAC inspection, termite inspection. Then prepare a repair addendum to make sure the repairs are completed or a price reduction is achieved or money is allocated at closing to make the repairs. The buyers agent is your representative to the seller's agent, the closing attorney and the mortgage lender. If the seller does not pay the buyers agent, most likely the house will take a long time to sell because most buyers can't afford that expense along with down payment, closing costs and inspection fees.
Been slow flipping homes for 22 years. People have been selling and buying homes forever without agents. The main thing agents do for buyers and sellers is babysitting them. Talking them through cold feet. They do nothing to get "better deals" or bring any kind of knowledge. Most know very little about real estate and mislead buyers and sellers with bad advice. Investors get property for 5-6% less by skipping the buyer agent and going directly to owners to find homes before a listing agent is signed. This also gets them houses before the owner wastes money and time on some fix up. When an investor is buying a home why avoid the listing agent since the seller pays that commission? Because investors know that buyers pay all costs...every penny. When an investor finds an owner willing to sell for say $500k the investor can offer $475k and show the owner they net the same as if listing and getting a retail buyer to offer $500k. The retail buyer has to offer $25k more to match the investor's pre-listing offer...to cover the cost of agent commissions. Retail buyers can do the same.
Many listing agents are not going to advertise what a seller is going to mention what the buyer's compensation will be. The buyer's agent will have to negotiate these fees in the contract.
I’ve fired 8 buyers agents in 4 years! Everyone of them continue to push the bidding war, no inspection, don’t offer below asking, bullshit. None of them found me the houses I’ve looked at. Used car salesmen have higher ethics than realtors.
Mortgage rates are still too high and even if they drop slightly, the home prices will only go UP. Therefore, the REALITY is, that people who want to OWN their homes need to be realistic. The SMARTEST thing they can do is come up with the $125,000 or so that will STILL BUY a small home in a VERY desirable area, like North Myrtle Beach, SC, where there are literally hidden "retreats" along the Intracoastal, where you JUST MAY BE ABLE TO find a GEM of a manufactured home for $125,000 or less! FORGET about "owning land," that's just a myth, since as long as you have a MORTGAGE, the BANK owns the home and you RENT from the bank! Americans need to wake up! Buying a home now means PAYING CASH (friends and family alert: Time to PITCH IN!) and if you CAN find a small home in an area like North Myrtle where there is no CONDO BOARD or HOA to deal with, then SNAP IT UP, "leased lot" and all! When your property tax bill comes out and you are only taxed on the HOME, you'll be THANKFUL for that!! This is as NO B.S. as NO B.S. gets! The last best chance at homeownership are MANUFACTURED HOME COMMUNITIES!
I’m sorry but for a long time some realtors are really shady and now everybody’s going to get the brunt of it. Some of these commissions are insane I’m sorry it may not be the popular thing but some of these realtors are making each and selling a house for what I make in six months. Yes, College educated. Some realtors really inflated the prices of homes and were left unchecked by regulatory commission. I’m sorry but it’s true and that’s why this is happening. 🤷🏼♀️
I personally think you’re going to see a lot of FSBO purchases [because you don’t have to sign a contract to see the house. Yes it is more cumbersome but you don’t have to jump through hoops and sign a contract] and cash for your home deals.
@@yamistovall You could. Lawyers won’t be able to consult you in regards to trends, neighborhoods, comps etc. But they can draft up the contract for you.
Neighborhood, comps, everything that someone buying can look into themselves today. Never ask a realtor their worth, even though it's diminishing by the day, they'll tell you otherwise...
Buyer and seller commissions should be seperate. Buying agents aren't worth more than 1%. The internet brings the buyers and most people find their own homes. Selling agents should be 2.5% max. Agents have been overpaid for too long, and too many of them are dishonest swindlers. Hence the lawsuit...
The listing agent is trying to sell the home for the most money. The buyers agent wants to sell you any home for the most amount of money. Either way it is up to the buyer to know what they are getting and what they are going to have to give for it. Because the Prime Rate was brought down very low, the mortgage rates went very low which cause housing prices to sky rocket along with massive inflation. Money in the bank became worthless, 0.01 percent interest rate. After the Prime Rate was brought back up some the mortgage went back up a little. Now, people are trying their homes at the inflated prices and people are not buying them. So, the inventory is increasing. Will the next President drop the Prime Rate again, increasing inflation again?
I would actually think that the listing agent would want to have the seller get the most they can for the home based on the agreed upon pricing strategy while the buyer's agent would want the buyer to pay the least amount for a home based on a fair value analysis. 🤷♀
@@katrinstake The more the buyer pays for the property, the more both the sellers agent and the buyers agent makes. Both agents would far rather sell a million dollar property than a hundred thousand dollar property.
@@jimgraham9450 Jim, if you get an ethical buyer's agent, the agent will be motivated to protect their customer within legal limits. In this case, the buyer's agent will want their customer to get the fairest deal based on analysis. A good comp analysis will indicate what the fair value of the home is along with different ranges. Buyer ultimately decides with the data at hand.
It may be hard for some especially if they are first-time buyers or do not have the time to learn the market (i.e. out of-state or professionals). Others may have an easier time navigating the process.
Do you have any advice for home buyers? Please leave a comment below. Thank you. 👇Also, for all your major NAR Settlement Changes Questions, see answers here:
katrinreal.com/qapage/
I don't think a Buyer's Agent can provide to a Buyer properties that have a Buyer's Agent compensation that is acceptable to the buyer and not provide the rest of the homes. It may be considered redlining?
@@margibaleztena81505 Currently, if the buyer via a signed buyer-broker agreement directs the buyers agent to only show the buyer properties with x amount of compensation, it is legal. It would have to be driven by the buyer and be in a buyer broker contract.
One of the best vids I’ve seen on this complex and challenging topic! It’ll be fascinating to watch how this all shakes out.
Thanks so much Ellen. Yes you are right, let’s see how this evolves. Take care.
Great advice Katrin! BUYERS Never sign with the listing agent / Dual Agency!!! If you are going to pay for the services of an agent, you are better off signing with your own Buyer Agent! I recommend you seek a highly recommended, highly rated real estate agent. Open homes are a great strategy if you choose not to be represented by an agent. Beware, some agents will try to convince you that you will need to sign an agreement before being allowed access to a home. As per the NAR website, FAQ section item #61, simply granting access to a home is NOT considered "working" with a buyer, hence no requirement to sign any agreement! So technically, you can contact the seller agent direct and ask if you can be granted access to a house without the requirement to sign an agreement. If the seller agent wants to sell the home, they will make time to open the door for you.
Thank you for chiming in Eduardo. Agree.
Except a good listing agent may have multiple listings. They may have those listings scattered across different counties. It’s unrealistic to expect them to spend their day driving from one end of the MLS to the other opening doors. They’re not going to just drop everything, and leave their kid’s piano recital at 6pm to open a door for an unrepresented buyer.
@@MrPloppy1 open houses on Sat or Sunday…I believe that will be the most efficient way to handle listings…
@@MrPloppy1 , no one expects any agent to drop everything at a moments notice, it’s not heart surgery. And maybe selling agents have gotten accustomed to not participate in the showing aspect, but things are changing. Even a 2% commission equates to over $10k, as a seller, I fully expect MY agent, that I AM going to shell out over $10k of my hard earned money to find a way to get an possible buyer inside my house. I’m certain markets you cannot afford to miss even one customer. Realtors should take note, sellers are getting savvy more each day, soon they will start challenging WHY am I shelling out big money for an Agent? What services ARE being provided that justifies a large commission. Lawyers and doctors get advanced college and then long periods of internships, what does it take to be a real estate agent?
The NAR FAQ #61 says a Listing agent can open a home for a buyer to see without it being considered “working with a buyer.” But a buyer’s agent must have an agreement signed with a buyer before showing them a home or else the agent can be fined. “If the MLS Participant is working only as an agent or subagent of the seller, then the Participant is not “working with the buyer.” In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.”
So let me understand this. I will be on the hook as the buyer to pay my agent the pre-negotiated amount or commission even if I don’t end up buying the house or have been outbid or the deal just not going through any reason. Buyers will now have to set aside a large sum of money plus the down payment if getting a mortgage if interested in buying a home. Buying a home just got more expensive.
@@3railmike713 Depends on your contract. Most will likely stipulate compensation to be paid at closing. Just read the language in the contract. A buyer’s agent may charge a retainer fee which typically would not be refundable.
Thanks. I didn’t know that about open houses
@@richard9827 👍
There are a lot of inconsistencies being presented in these youtube videos on this topic. A spokesperson for another company said that in open house situations, the potential buyer would have to sign in and state the name of their buyer agent. If none is stated, the agent showing the home "could" be assigned as a buyer's agent for 1 day, 1 week, or whatever time frame the potential buyer prefers. This was an excellent presentation. I would only need to confirm the accuracy of the statements concerning open house events. Also, I wonder if, in cases of a potential buyer signing multiple agreements with multiple agents, would it be worth the time and money to take that person to court to determine who is legally the rightful agent to be the recipient of the commission.
@@GH-zs9fj ALWAYS read and know what you are signing in the contract! Per NAR statement: "You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services." www.nar.realtor/the-facts/homebuyers-what-the-nar-settlement-means
What's a "bias agent"?
Buyer's
Great video, thank you!
Glad it helped!
What if a seller's agent verbally states the commission % to the buyer's agent, and since that conversation cannot be recorded by Florida law, they can just say they never said that. With no commission documented, this could lead to problems, no?
Definitely place commission request in offer.
Florida is the state with the highest number of inventory in the entire nation with 141,298 properties for sale.
In 2024, many major metropolitan areas in Florida are experiencing price reductions. Home prices are coming down, and inventory levels are exploding. Florida and Idaho have now joined Texas in reaching pre-pandemic levels of housing inventory.
I am not in the market at this time. However, if I were, I would do my own (complete) research first, hire a local attorney who knows/understands RE contracts and make an offer directly to the Listing agent using the attorney. Why would someone sign any "contract" with a Listing Agent to represent you as a Buyer? It appears the RE Industry/NAR is making this far too difficult. Yes, your point at 7:35 mins is spot on. Thank you Katrin for your informative video.
You can go about it however makes the most sense for you ;).
The DOJ can't rule or dictate consumer's personal offers, so as a buyer I would simply add the verbiage "Seller will pay ___% to buyers broker at closing" on my offer contract. Letting the buyer know this in advance may make them less fearful of working with a buyers agent.
👍
But what if the sellers refuse? Then you’re out money unless you had a flat fee or percentage listed for your buyer to pay in your buyer broker agreement.
@@user-fb4sb1zi8g if the seller refuses, buyer could lower offer price, move ahead with purchase and pay buyers agent, or move on to another home that is willing to pay the buyers agent.
@@user-fb4sb1zi8g I would have the buyer sign the BBA but then explain to them that they can add that to the terms of the offer.... this will take the buyers fear away from signing the BBA
I can see car salesmen doing this next, You walk onto a car lot and must enter into a contract for a pre-negotiated amount or commission with a salesmen before I can look at or test drive a car. What happens if we are unable to make a deal or the financing doesn’t go through or what ever the reason???
Read the contract before you sign. For now I would imagine most contracts are based on you successfully closing a transaction. But I imagine that different compensation models will become an option.
Attorneys who are not also licensed realtors won’t be able to offer on site services a buyer needs, like inspections and appraisals performed during the sale. If there are issues, a buyer needs a seasoned pro to be able to preview the issues and problem solve. An attorney pretty much just facilitates the paperwork with little or no touch with the property.
The bottom line is everyone needs some type of representation and those individuals require compensation.
Good input. Thank you.
@DianaRicciuti That's why buyers should only buy from For Sale by Owner. Pay for inspections, and hire a real estate lawyer to help understand the sellers contract and eliminate the real estate agent. Much less expensive that way. I speak thru experience. Sold my florida home 1 and 1/2 years ago. As a seller, we payed our agent a huge commission. Even though we negotiated the comission, It was very high. There should be a fixed regulation on commisions.
@@r-anne7375 I believe commission and compensation should be negotiable rather than fixed, as that aligns with the principles of a free market. That said, certain buyers, especially those from out of town, can greatly benefit from working with a buyer’s agent, as I discuss in my video. However, those who are knowledgeable and have the time might prefer going directly to the source.
Here is some TRUE "no B.S." advice: It comes down to AFFORDABILITY and VOLATILITY.
Mortgages are TOO RISKY at high interest rates, especially when there are HOA costs on top of that, and the other "hidden" costs of owning larger homes and condos!
The "best kept secret" to homeownership is found in the MH communities in areas like North Myrtle Beach SC, where people actually WANT to live, so for first time home buyers and empty nesters, the advice would be this:
Scour Zillow in the North Myrtle Beach area of SC, where the nicest MH communities are, and if you find a home the same size as a condo with all the remodeling work already done and at an AFFORDABLE price like $125,000 or even LESS, have family help get that money together to buy outright WITHOUT a mortgage and WITHOUT a HOA, and put that rent or mortgage payment right back into the bank!
Manufactured Homes are the ONLY AFFORDABLE HOMES these days, so it's a matter of finding a community that dispels the negative stereotypes, and when you find the right home, SNAP IT UP!
My advice to buyers is look for sale by owner and avoid paying a buyers agent all together. In Florida title agencies are quite good at handling contracts and closings.
Do you know exactly how title companies work? Do you think they'll make the due diligence for you? When did the buyer ever paid an agent?
Also while Florida does not require you to hire a real estate attorney for a home purchase, it is highly recommended to protect your best interest as a buyer and it is well worth it.
@@fasteddierocs In 20 years of buying and selling real estate in the state of Florida the only issue I have had go bad was when I used an attorney to do the closing instead of a title company.
Do you believe less people will use a buyer's agent?
Yes, less will, but the ones that see value in a buyer’s agent will continue to use them.
@@katrinstakeI agree! Our buyer agent completely did an awful job. With us moving in from a different state, your clients should be given a lot more information and attention to things and laws they may not be aware of in a new state. Ours showed us about 5 homes, we finally chose one. We never saw her again. I had to keep calling her to find out what the next steps were all the way to closing. She didn’t show up to closing and not even a thank you card. She just showed us 5 homes and collected a check. NEVER AGAIN!
@mrsmdub259 Have you worked with a selling agent yet? lve had them give away 10s of thousands to the buyer for buy downs and ridiculous credits that weren't valid in a hot market. Then take way too much in commissions on top of it. lmagine paying out 45k in concessions on a home just over 400k. So many agents are dishonest bottom feeders of society. With a sprinkling of good agents. Good luck..
@mrsmdub259 wow, that is really awful and unethical. Sorry you experienced that.
@MikeHawk_007 that is why it's important to really vet your agent, buying or selling.
I would suggest a fixed fee that reasonably compensates the buyers agent for her time, experience and service. It could be less than 2% of the purchase price.
Upfront regardless of performance.
What’s a bias agent?
Someone’s play on words
Buying a house just got more complicated. You now need a lawyer to understand the contract you are signing so you don't end up paying the " buyer's agent" commissions in the event that the purchase doesn't go thru. Why is this happening ????
@@r-anne7375 Hi, it depends on how you set up your buyer broker agreement in case you want to use and agent: The language in the contract should be clear. The agreement could be contingent upon a successful purchase only. It’s negotiable.
I agree however, It is highly recommended that an attorney be used. You are making a huge purchase and it is always wise to have a good real estate attorney looking out for your best interest. I have bought and sold homes with and without realtors and always have my attorney look every thing over before I sign. Well worth it in my experience.
So if you just want to look at a home, just to see what is on the market, you now have to sign an agreement?
@@berlinbeachkat4878 one of the most efficient ways to do this is to go to all the open houses
If you sign a contract, you are hiring an agent. To avoid this fee, just call the seller's agent and ask to see the home. If they want to feed their children and pay their rent, I'm sure they'll take ten minutes out of their day and show you the home (open the door). After all, that's what the seller is paying them to do (sell the home).
When we buy a car, we don't have to sign a contract with the car salesman. The same is true when shopping for a home. The old system was rigged in favor of the real estate agents.
Exactly. Agents should move on from, not defend, the old system. It was rigged.
@@christaylor8337 It was the largest financial crime in U.S. history. They got away with it for decades. Sadly, very few agents or small brokers were charged for their crimes. The cost to drag all these folks through our legal system would be impossible, due to the number of agents. Since individual agents didn't get sued, most of them still don't understand the corruption. I know the agents didn't design the rigged system. The big boys at NAR were the riggers.
I’m a seller and my agent works for me. Buyers better have a signed agreement before they even think about looking at my home. My agent will not take phone calls from anyone without an agent. I’m in no hurry to sell and I’m offering no compensation whatsoever to a buyer. I just raised my price another $10,000 yesterday to help pay for my retirement.
I bought in 2001 and sold my house in Florida in 2004 using FSBO and had no problems, and to think that at that time it was my first purchase and sale.
A buyers agent is worthless. Unless they negotiate down the price. If they are not willing to ask for 50-60k off listing price then they are worthless
There will be no difference as using the listing agent’s realtor They get full pop no split
I see no change yet all just complicating what normally happens
After all when looking for a property how often do actually use a realtor when looking for a property these days
What will a buyers agent do for you? Provide the contract? Order a title search? Order the inspection? Assume liability if the seller doesn't cooperate? Doesn't this open up the possibility if the buyer defaults on the BA contract? Now the buyer must sign two contracts; the BA contract and the sellers contract? What if the buyer defaults on the BA sellers contract or the seller defaults on his contract. Is the buyer still liable to the BA contract? Is the buyer still liable if the buyer disagrees with the 'best efforts' of the BA? Is the seller's price listed in the BA contract or is that verbal? Can the seller still have the right to FSBO as is the case today? Can the seller be sued by the BA if he fires HIS agent or his time limit expires? It also sounds like the BA can tie up the buyer into an exclusive listing and live off listings. Is the buyer expected to sign dozens of contracts while he/she is searching? Do you think a BA would agree to a a day contract and waste his time just to present an offer? Now we have two friendly co-workers working together in your behalf........really.
@@sunlite9759 lots of good questions…too long to answer here. You can always call me to speak through this but it would also make sense to get a lawyer’s perspective.
Sounds like people just need to do for sale by owner and get rid of the crooked sales agents. 🤬
This woman should just work in doublespeak.
@@katrinstake What I wrote is just scratching the surface of the litigation that could begin if anyone of the group, miffed about something, is sued. It could tie up the property for months, if not years. Now we have a lawyer on the payroll.....
@@sarahgupton2552 they have always had that choice. For some people, it could be beneficial for sale by owner if they have the time to work it through. For a busy professional, it probably would be too much to handle while juggling work. A seller can also go with a discount agency (those have been around for a long time).
Many countries just have a listing agent that sells the house. No buyers agent is used.
In those European countries and Australia it is becoming more common to use a buyer’s agent.
This settlement is terrible for minority and women 1st time home buyers! Isn't there a reason why the other way was in place for so long? Sure if you already bought a home, then this is beneficial. But I see the discrimination lawsuits on the horizon. I see the fraud lawsuits against buyer's agents taking money from 1st time home buyers and helping the seller sell their house on the "back end" because depending on the buyer's contract, their fiduciary duties can be limited!
A good buyers agent will not only search for homes meeting your wants and budget. They will try to find homes that meet your specific criteria and make sure that the price you offer is in line with recent sales and not overpriced and will also appraise so you can get the mortgage. For first time home buyers, they can help in getting assistance in closing costs from the lender or State aid. They may even get the seller to help with closing costs, home warranty, transfer of termite bonds. They will coordinate the home inspections, roof inspection, HVAC inspection, termite inspection. Then prepare a repair addendum to make sure the repairs are completed or a price reduction is achieved or money is allocated at closing to make the repairs. The buyers agent is your representative to the seller's agent, the closing attorney and the mortgage lender. If the seller does not pay the buyers agent, most likely the house will take a long time to sell because most buyers can't afford that expense along with down payment, closing costs and inspection fees.
Thank you for sharing your sentiment. I agree with a lot of your points.
Been slow flipping homes for 22 years. People have been selling and buying homes forever without agents. The main thing agents do for buyers and sellers is babysitting them. Talking them through cold feet. They do nothing to get "better deals" or bring any kind of knowledge. Most know very little about real estate and mislead buyers and sellers with bad advice.
Investors get property for 5-6% less by skipping the buyer agent and going directly to owners to find homes before a listing agent is signed. This also gets them houses before the owner wastes money and time on some fix up.
When an investor is buying a home why avoid the listing agent since the seller pays that commission? Because investors know that buyers pay all costs...every penny. When an investor finds an owner willing to sell for say $500k the investor can offer $475k and show the owner they net the same as if listing and getting a retail buyer to offer $500k. The retail buyer has to offer $25k more to match the investor's pre-listing offer...to cover the cost of agent commissions.
Retail buyers can do the same.
Buyer agents, be careful calling a listing agent and asking about a concession. It isn’t allowed and there is a heavy fine for it.
@@boudroux1 it is allowed if the buyer instructs the agent to do so via a signed buyer broker agreement.
Am cash buyer not signing buyer agreements going buy my self safe Money
That’s an option
Many listing agents are not going to advertise what a seller is going to mention what the buyer's compensation will be. The buyer's agent will have to negotiate these fees in the contract.
I agree, that could happen. But as a buyer, you always have the option to make it part of the offer.
After doing your homework to narrow things down using online resources call the listing agents to see the homes. No buyers agent needed
You can give that a try
I have gone that route the last two purchases.
I’ve fired 8 buyers agents in 4 years! Everyone of them continue to push the bidding war, no inspection, don’t offer below asking, bullshit. None of them found me the houses I’ve looked at. Used car salesmen have higher ethics than realtors.
Sounds like you suck at vetting agents.
sorry you had that experience.
Mortgage rates are still too high and even if they drop slightly, the home prices will only go UP.
Therefore, the REALITY is, that people who want to OWN their homes need to be realistic. The SMARTEST thing they can do is come up with the $125,000 or so that will STILL BUY a small home in a VERY desirable area, like North Myrtle Beach, SC, where there are literally hidden "retreats" along the Intracoastal, where you JUST MAY BE ABLE TO find a GEM of a manufactured home for $125,000 or less!
FORGET about "owning land," that's just a myth, since as long as you have a MORTGAGE, the BANK owns the home and you RENT from the bank! Americans need to wake up! Buying a home now means PAYING CASH (friends and family alert: Time to PITCH IN!) and if you CAN find a small home in an area like North Myrtle where there is no CONDO BOARD or HOA to deal with, then SNAP IT UP, "leased lot" and all!
When your property tax bill comes out and you are only taxed on the HOME, you'll be THANKFUL for that!!
This is as NO B.S. as NO B.S. gets! The last best chance at homeownership are MANUFACTURED HOME COMMUNITIES!
thanks for sharing.
Katrin, your voices are scary me🤣
@@thehammer3340 haha 🤣 it scared me too
Disposable income = Money to burn 🔥
I’m sorry but for a long time some realtors are really shady and now everybody’s going to get the brunt of it. Some of these commissions are insane I’m sorry it may not be the popular thing but some of these realtors are making each and selling a house for what I make in six months. Yes, College educated. Some realtors really inflated the prices of homes and were left unchecked by regulatory commission. I’m sorry but it’s true and that’s why this is happening. 🤷🏼♀️
I personally think you’re going to see a lot of FSBO purchases [because you don’t have to sign a contract to see the house. Yes it is more cumbersome but you don’t have to jump through hoops and sign a contract] and cash for your home deals.
FSBOs or discount agencies have always been an option but most sellers use a listing agent.
Wouldn't getting a lawyer instead of a buyers agent be the same?
@@yamistovall You could. Lawyers won’t be able to consult you in regards to trends, neighborhoods, comps etc. But they can draft up the contract for you.
Zillow does that for free.
@@christaylor8337 give it a try…
Neighborhood, comps, everything that someone buying can look into themselves today. Never ask a realtor their worth, even though it's diminishing by the day, they'll tell you otherwise...
You think a Lawyer is going to drive you around looking at houses yea for $500 a hour lol...
Bias agent is correct
Some maybe...but not the norm.
Listing agents are no longer needed
Sellers have always had the option to sell FSBO or via discount agencies but most chose to go with a listing agent? What do you believe changed now?
😇😇😇
various daily stories, but the narrative is still the same: buy buy buy so realtors can get their commission...
@@randommotion8907 Buy if that is what you want to do. Don’t buy if you are not in the market. 🤷
All the annoying voices are too much to listen to
Yeah, it was a bit much :).
Buyer and seller commissions should be seperate. Buying agents aren't worth more than 1%. The internet brings the buyers and most people find their own homes. Selling agents should be 2.5% max. Agents have been overpaid for too long, and too many of them are dishonest swindlers. Hence the lawsuit...
The listing agent is trying to sell the home for the most money. The buyers agent wants to sell you any home for the most amount of money. Either way it is up to the buyer to know what they are getting and what they are going to have to give for it. Because the Prime Rate was brought down very low, the mortgage rates went very low which cause housing prices to sky rocket along with massive inflation. Money in the bank became worthless, 0.01 percent interest rate. After the Prime Rate was brought back up some the mortgage went back up a little. Now, people are trying their homes at the inflated prices and people are not buying them. So, the inventory is increasing. Will the next President drop the Prime Rate again, increasing inflation again?
I would actually think that the listing agent would want to have the seller get the most they can for the home based on the agreed upon pricing strategy while the buyer's agent would want the buyer to pay the least amount for a home based on a fair value analysis. 🤷♀
@@katrinstake The more the buyer pays for the property, the more both the sellers agent and the buyers agent makes. Both agents would far rather sell a million dollar property than a hundred thousand dollar property.
@@jimgraham9450 Jim, if you get an ethical buyer's agent, the agent will be motivated to protect their customer within legal limits. In this case, the buyer's agent will want their customer to get the fairest deal based on analysis. A good comp analysis will indicate what the fair value of the home is along with different ranges. Buyer ultimately decides with the data at hand.
All real estate agents ever worked with, completely useless
sorry :(
I never show homes without a Buyers Brokerage agreement. People will waste your time.
👍
Y'all try to make a real estate deal look hard. Its not hard. But if you dont want deal with headaches get a realtor. Simple and pay them
It may be hard for some especially if they are first-time buyers or do not have the time to learn the market (i.e. out of-state or professionals). Others may have an easier time navigating the process.
@@katrinstake 100% agree🤙🏿
Buy from a FSBO. and use a lawyer.
@@PianoUniverse you could try it.
@@katrinstake I've done it. I never use a realtor buying or selling.
@@PianoUniverse I'm happy it works for you :)