As a Realtor of 12 years, I can tell you it’s about to get fun. Buyers are about to get screwed over because they don’t know the law and many will go to the listing agent. Most people don’t know that real estate is all in writing…so good luck with the “he said, she said” later when the buyer feels he wasnt represented. In my state, the majority of lawsuits involve dual agency (agent representing both sides) and this settlement almost guarantees real estate attorneys to never be out of work. Also, I feel sorry for buyers agents. They only care to help buyers and they spend so much more time than listing agents to help their clients. As a listing agent, my income will double. It’s honestly the fault of state real estate commissions that this mess occurred. The borders of entry should have been higher to only allow the absolute best and educated in….but they erred on the side of the American dream and allowing small business. Now the only agents that will be left will be the narcissistic, high D agents. This settlement was so poorly considered.
Investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good?
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.
The industry needs a flat rate fee or a cap. Otherwise, perhaps the rise of the real estate attorney is best for the seller and buyer. I have bought and sold over 8 properties in my lifetime and the fees are excessive. I always found the property on my own or sold the property within one week of listing and with multiple offers. The properties sold themselves and had nothing to do with a real estate agents bringing in tons of clients. The fact is there are more buyers then sellers in CA, especially in hot areas. If anything, new services need to pop up to connect buyers and sellers and offer open and transparent contracts that a buyer can review and\or take to a real estate attorney. High time that the fleecing of the seller and buyer stops.
Haha! Basically gut the industry of knowledge based professionals to leave only agents that won’t make minimum wage…so they can give you advice on your largest investment.
@@davidhiggins3012 or you just realized that you’re irrelevant and the only people you need is an attorney, the title company and the inspector. I know it hurts, but your license is no longer needed.
@@MARYJ17222 Respectfully, I am in a state where only a real estate attorney can closed homes…no title insurance companies except to issue insurance. And in my state, real estate attorneys never make recommendations or give advice on the transaction itself…only title and recording questions. And they are much more expensive than I am. The majority of my business is listings, and this decision will actually make me much more money. Plus those listings are majority new construction, as I find raw land and list the individual homes once it is developed. But as much as it seems you dislike real estate agents (which is your right), this decision will make it much harder for buyers to buy homes, and they will be taken advantage of by agents who are doing their fiduciary duty to their sellers.
So for us first time homebuyers should we try buying before July 1st? I see more “for sale by owner” after 7/1 In reality most agents don’t care about the buyer or seller, all they care about is their commission. In rare cases you will find a really good agent looking after the buyer, it’s more about how much money they can put in their pockets.
good luck convincing a buyer to pay $50k on their own and write a check to buyer agent. then the wave of lawsuits from buyers who didn't understand the buyer agreement. very few buyers will want to write a check to an agent for $50k $75k or $100k - good luck with that!
@@TheRealFoop I live in CA. so say a $4 million home sells and they used to getting 2.5% buyer agent heres the math: $4 mil x 0.025 = $100,000 buyer agent fee
I live in San Diego where homes fly off the market usually with multiple offers. When we sell our house we will offer 2% to the listing agent and 1% to the buyers agent. Why would we offer more?
commisions TOTAL 2% of sales price in UK - buyer goes to listing agent to get advice or they can hire an actual attorney for advice - a person who gets a $300 real estate license CANNOT give legal advice as they are NOT lawyers
In my state, not one real estate attorney exists that could give advice on buying a home. That would take years to cultivate, and I’ve joked many times to a few of them and they wouldn’t enter that arena. Most people believe agents make too much money but the average agent sells 12 homes per year…and makes less than restaurant managers make. Much of the commission actually goes to the brokerage where they spend that on training so agents can actually give you advice.
It’s game over for buyer’s agents. Without the automatic buyer’s agent commission in the MLS, the seller will need to affirmatively agree to pay the buyer’s agent. That’s not going to happen. We’ll probably end up with buyer’s agents submitting offers for a small flat fee.
It’s game over for listing agents also I’m a homebuyer I’m going to negotiate the 2.5% to myself as I represent myself and I found the home on Zillow my attorney will do the contract at my price end of story
You guys seem to only see the transaction from such a limited scope. Buyer finds home. Buyer offers on home, Buyer closes on home. With all due respect, it's far more involved than that. Very few transactions are without hiccups throughout the process, that most buyers would have no clue how to navigate. Negotiations that are beyond just the price of the home. I serve predominantly relocation buyers who 60%+ of the time have a contingent sale in another state. There are time lines in each contract that have to be rigidly ahered to, or a buyer risks losing potentially a LOT of money.
@@livinginoklahomacityofficialExtremely well put. So many transactions are more complicated. What people don't seem to realize is the attorney isn't sitting by the phone ready to answer their urgent issue at 10pm to resolve a dispute. Or, prepared to try to piece back together a transaction when the buyers loan approval falls apart 10 days prior to closing. I work very closely with attorneys as I'm sure you do and it can take a day or two for them to review a legal dispute in a contract before they can get back with an answer and sometimes a deadline has already expired, someone has breached and things have escalated. Multiply that by several clients and those turnaround times are going to be longer. By the time they prepare an offer, the house may be gone and I can see them preparing paperwork but they are definitely going to want a retainer upfront for any type of representation. 🤔
In the UK, estate agents (equiv realtors) charge 1% - yes ONE%. Buyers and sellers each employ their own lawyers (so everyone is properly represented). Lawyers fees are not a % and is typically much less than $2000. Go figure.
Yes, there is this little thing called an escrow deposit. In my market, most sellers will not consider offers with an escrow deposit of less than 2% of the purchase price. Each state has obligations of the seller and the buyer. My job is to protect the buyer's escrow and make them aware when they are in jeopardy of losing their deposit and do my best to get them out of the contract without losing their deposit if for some reason they can not close. If they do not fulfill their obligations in the contract, their deposit could be claimed by the seller. So, they could lose the house & their money. Many buyers don't understand this and may end up in court pleading their case why they should not have lost the deposit etc. It's very easy to lose if you do not really understand the timelines set forth in the contract and how time is calculated in your state. Some states are calendar days, some are business days and deadlines that fall on a weekend or holiday may be treated differently. Just one example.
They don’t. There are no guarantee’s. There are so many shady agents. It’s all upon discovery. For the most part an honest agent that does his due diligence has been beneficial.
Half a decade ? That’s nothing in a professional career. The truth is that Realtors have been misrepresenting the fact that commissions have always been negotiable. The NAR settled because if they had been found guilty of conspiracy then treble damages would have been applied. That would have ended the NAR. 6% commissions are only standard in the US. Most of western Europe uses a 1-1.5% commissions. Dual agency agreements will become the norm.
Learn to work with the new way of doing things. Sellers agent sets a price he will charge the property owner. In that he will give 50% to the buyers agent. It's what they have always done. The only question is what do you charge a seller? We only do advertising, 2 free RE listings every 48hrs., it's the best I can do for realtors. This will be different for realtors and brokers, but it can still work.
the #1 issue here is simple. REALTORS or agents ARE NOT ATTORNEYS - so this BS about getting "representation" is all hype....hire a flat fee attorney to review the contract and you will get true "LEGAL" representation from a LAWYER with a LAW DEGREE - not someone who took an online $100 class passed a simple real estate test and paid their $300 fee...
I can’t stand when California agents come to Texas and f u our market. Driving up prices is not the right thing to do. We should keep at market value. I STRONGLY disagree with you.
Good information.... Telling my clients about the same.... It is about communication with your clients and just explaining the process. Part of the issue that people were having are in the 13 Non-disclosure state MO, NEB, WY, AZ, TX, NM, Maine, KS, Alaska, MS, LO, UT, ND. There still negotiation of the settlement....
How is a buyers agent going to say yeah ill show you the houses that you could go to yourself but i want 10 grand . lol its laughable . You would be insane to pay that , . thats something they happily stuck up the sellers as$ with a big smile on thier face .
It's so easy to buy a house. You go online, put in your parameters, and go look at it in person. Then you buy it. Not hard. There is no reason to pay an agent thousands of dollars for that.
As a Realtor of 12 years, I can tell you it’s about to get fun. Buyers are about to get screwed over because they don’t know the law and many will go to the listing agent. Most people don’t know that real estate is all in writing…so good luck with the “he said, she said” later when the buyer feels he wasnt represented. In my state, the majority of lawsuits involve dual agency (agent representing both sides) and this settlement almost guarantees real estate attorneys to never be out of work.
Also, I feel sorry for buyers agents. They only care to help buyers and they spend so much more time than listing agents to help their clients. As a listing agent, my income will double.
It’s honestly the fault of state real estate commissions that this mess occurred. The borders of entry should have been higher to only allow the absolute best and educated in….but they erred on the side of the American dream and allowing small business. Now the only agents that will be left will be the narcissistic, high D agents. This settlement was so poorly considered.
Investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good?
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.
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
This is going to hurt first time home buyers the most.
Half a decade does sound like a very long time compared to 5 years; nice spin. 😂
🤣🤣🤣
The internet is a small world...
The industry needs a flat rate fee or a cap. Otherwise, perhaps the rise of the real estate attorney is best for the seller and buyer. I have bought and sold over 8 properties in my lifetime and the fees are excessive. I always found the property on my own or sold the property within one week of listing and with multiple offers. The properties sold themselves and had nothing to do with a real estate agents bringing in tons of clients. The fact is there are more buyers then sellers in CA, especially in hot areas. If anything, new services need to pop up to connect buyers and sellers and offer open and transparent contracts that a buyer can review and\or take to a real estate attorney. High time that the fleecing of the seller and buyer stops.
Good agents will survive this. This will weed out lots of bad/mediocre agents who are barely keeping up with their current commission earning.
all we need is listing agents with a 1% flat fee the buyer is protected by the lawyer and title company
Haha! Basically gut the industry of knowledge based professionals to leave only agents that won’t make minimum wage…so they can give you advice on your largest investment.
you have that already. get yo self edumacated.
@@davidhiggins3012 or you just realized that you’re irrelevant and the only people you need is an attorney, the title company and the inspector. I know it hurts, but your license is no longer needed.
@@MARYJ17222 Respectfully, I am in a state where only a real estate attorney can closed homes…no title insurance companies except to issue insurance. And in my state, real estate attorneys never make recommendations or give advice on the transaction itself…only title and recording questions. And they are much more expensive than I am. The majority of my business is listings, and this decision will actually make me much more money. Plus those listings are majority new construction, as I find raw land and list the individual homes once it is developed. But as much as it seems you dislike real estate agents (which is your right), this decision will make it much harder for buyers to buy homes, and they will be taken advantage of by agents who are doing their fiduciary duty to their sellers.
Good for sellers, personally I think you guys should have been sued. MLS should be available to you with out a realtor.
So for us first time homebuyers should we try buying before July 1st?
I see more “for sale by owner” after 7/1
In reality most agents don’t care about the buyer or seller, all they care about is their commission. In rare cases you will find a really good agent looking after the buyer, it’s more about how much money they can put in their pockets.
good luck convincing a buyer to pay $50k on their own and write a check to buyer agent. then the wave of lawsuits from buyers who didn't understand the buyer agreement. very few buyers will want to write a check to an agent for $50k $75k or $100k - good luck with that!
What planet do you live on where buyer's agents are charging $100,000 for their services?
They’re not getting any commission in my community 3 homes already sold. It’s Title and Attorney and Close
@@TheRealFoop I live in CA. so say a $4 million home sells and they used to getting 2.5% buyer agent heres the math: $4 mil x 0.025 = $100,000 buyer agent fee
I live in San Diego where homes fly off the market usually with multiple offers. When we sell our house we will offer 2% to the listing agent and 1% to the buyers agent. Why would we offer more?
Test the market and let us know how it goes!
commisions TOTAL 2% of sales price in UK - buyer goes to listing agent to get advice or they can hire an actual attorney for advice - a person who gets a $300 real estate license CANNOT give legal advice as they are NOT lawyers
In my state, not one real estate attorney exists that could give advice on buying a home. That would take years to cultivate, and I’ve joked many times to a few of them and they wouldn’t enter that arena. Most people believe agents make too much money but the average agent sells 12 homes per year…and makes less than restaurant managers make. Much of the commission actually goes to the brokerage where they spend that on training so agents can actually give you advice.
Being a realtor is very stressful in itself. This is going to get very ugly. Let’s not forget why this all came into place to begin with.
It’s game over for buyer’s agents. Without the automatic buyer’s agent commission in the MLS, the seller will need to affirmatively agree to pay the buyer’s agent. That’s not going to happen. We’ll probably end up with buyer’s agents submitting offers for a small flat fee.
It’s game over for listing agents also I’m a homebuyer I’m going to negotiate the 2.5% to myself as I represent myself and I found the home on Zillow my attorney will do the contract at my price end of story
You guys seem to only see the transaction from such a limited scope. Buyer finds home. Buyer offers on home, Buyer closes on home.
With all due respect, it's far more involved than that. Very few transactions are without hiccups throughout the process, that most buyers would have no clue how to navigate. Negotiations that are beyond just the price of the home. I serve predominantly relocation buyers who 60%+ of the time have a contingent sale in another state. There are time lines in each contract that have to be rigidly ahered to, or a buyer risks losing potentially a LOT of money.
@@livinginoklahomacityofficialExtremely well put. So many transactions are more complicated. What people don't seem to realize is the attorney isn't sitting by the phone ready to answer their urgent issue at 10pm to resolve a dispute. Or, prepared to try to piece back together a transaction when the buyers loan approval falls apart 10 days prior to closing. I work very closely with attorneys as I'm sure you do and it can take a day or two for them to review a legal dispute in a contract before they can get back with an answer and sometimes a deadline has already expired, someone has breached and things have escalated. Multiply that by several clients and those turnaround times are going to be longer. By the time they prepare an offer, the house may be gone and I can see them preparing paperwork but they are definitely going to want a retainer upfront for any type of representation. 🤔
@@gadgetgraderYou sound very inexperienced. I wish you well with this strategy.
@@gadgetgraderlove it. 👏👏👏👏
In the UK, estate agents (equiv realtors) charge 1% - yes ONE%. Buyers and sellers each employ their own lawyers (so everyone is properly represented). Lawyers fees are not a % and is typically much less than $2000.
Go figure.
Thank you for sharing.
Can someone explain to me how buyer's agents keep buyers out of potential legal issues?
Yes, there is this little thing called an escrow deposit. In my market, most sellers will not consider offers with an escrow deposit of less than 2% of the purchase price. Each state has obligations of the seller and the buyer. My job is to protect the buyer's escrow and make them aware when they are in jeopardy of losing their deposit and do my best to get them out of the contract without losing their deposit if for some reason they can not close. If they do not fulfill their obligations in the contract, their deposit could be claimed by the seller. So, they could lose the house & their money. Many buyers don't understand this and may end up in court pleading their case why they should not have lost the deposit etc. It's very easy to lose if you do not really understand the timelines set forth in the contract and how time is calculated in your state. Some states are calendar days, some are business days and deadlines that fall on a weekend or holiday may be treated differently. Just one example.
They don’t. There are no guarantee’s. There are so many shady agents. It’s all upon discovery. For the most part an honest agent that does his due diligence has been beneficial.
Half a decade ? That’s nothing in a professional career. The truth is that Realtors have been misrepresenting the fact that commissions have always been negotiable. The NAR settled because if they had been found guilty of conspiracy then treble damages would have been applied. That would have ended the NAR. 6% commissions are only standard in the US. Most of western Europe uses a 1-1.5% commissions. Dual agency agreements will become the norm.
Going rate now is flat rate for buyer of $200, seller $500 for any price home!😊
Learn to work with the new way of doing things. Sellers agent sets a price he will charge the property owner. In that he will give 50% to the buyers agent. It's what they have always done. The only question is what do you charge a seller? We only do advertising, 2 free RE listings every 48hrs., it's the best I can do for realtors.
This will be different for realtors and brokers, but it can still work.
Now I understood....
the #1 issue here is simple. REALTORS or agents ARE NOT ATTORNEYS - so this BS about getting "representation" is all hype....hire a flat fee attorney to review the contract and you will get true "LEGAL" representation from a LAWYER with a LAW DEGREE - not someone who took an online $100 class passed a simple real estate test and paid their $300 fee...
If it’s so easy why haven’t you done it
I can’t stand when California agents come to Texas and f u our market. Driving up prices is not the right thing to do. We should keep at market value. I STRONGLY disagree with you.
Good information.... Telling my clients about the same....
It is about communication with your clients and just explaining the process.
Part of the issue that people were having are in the 13 Non-disclosure state MO, NEB, WY, AZ, TX, NM, Maine, KS, Alaska, MS, LO, UT, ND.
There still negotiation of the settlement....
should never be on the gross price!
How is a buyers agent going to say yeah ill show you the houses that you could go to yourself but i want 10 grand . lol its laughable . You would be insane to pay that , . thats something they happily stuck up the sellers as$ with a big smile on thier face .
Thkx
Very informative 💯 Chloe
Get a good Lawyer and Title company. List your house or put in a bid. Let your Lawyer/Representative iron out the details.... easyspeazy.
It's so easy to buy a house. You go online, put in your parameters, and go look at it in person. Then you buy it. Not hard. There is no reason to pay an agent thousands of dollars for that.
What website is that?
Not agents in California though lol.....
Sooo im currently in real estate school now lol is this going to make it more difficult for new agent?
that’s what i’m wondering
Any news?
🎉
Buyer's agents will have to start an OF.