So if you are a buyer, just pay your agent. And if you are an buyer's agent, just charge the person you are performing a service for. That's how business works. Sounds like a lot of whining. "Oh boohoo, I can't leach off of someone else's cash acquisition." 😭
Let me ask you this. Do you think sellers/sellers agents who don’t offer offer commission split will have their houses sell slower? What would you charge your client if you were a buyers agent? Thanks for the comment!
@@blackrealestatedialogue Yes, the sale probably will be slower or perhaps will be at a lower price. If a buyer is not willing to pay as much, he can pay his agent out of the difference, so little will have changed. However, imo, buyers don't really need agents. So if I were a buyer's agent, I would charge less than what the seller's agent charges. I may even change my business model over to charging for a service instead of a transaction commission. I could always be a seller's agent also.
Great video and explanation! I am an investor and realtor in south Florida. The good realtors should be happy about this change as a lot of mediocre or bad realtors (which is maybe 90% of them) will quit. In the end, both buyers and sellers will be happier
Thanks for sharing. I do think your opinion is biased towards the agents. you made some assumptions on how you think the commission will fall out, so I will share some of my assumptions The mortgage industry and appraisers will adapt. You will find mortgage brokers building in the buyer agent commission into the loan. Appraisers will work with the banks. I believe you will also see sellers offering commissions around 1% for buyers and the buyer's agent negotiating the rest. In the end they will still make around 2 to 3% commission. That's what I believe.
why would you use 20% its rare that a first time home buyer or any other buyer for that matter put down 20% you can easily get a fha loan for 3.5 percent you can get a conventional for as little as 5 percent whoes putting down 20 %? but ill listen to see what else you got to say
Thanks for the comment! It all depends. Some people wouldn’t be able to afford the mortgage at 3.5 or 5% down. For some people it’s best to put down 20% bc the payment ends up being more affordable. It all depends though and everyone’s situation is different. Thanks for watching!
Personally, I believe that the real estate course should be taught during the Junior/Senior year of high school, along with financial literacy (taxes, credit, understanding loans). The major thing with this decision is they won’t be able to put the buyers agent commission split on MLS anymore. I saw a video from the President of NAR and what they’ll end up doing is wording that there will be a commission split with a buyer’s rep in a certain way. So it’s not completely gone, but the business is definitely changing.
I def agree it’s something kids should learn about early on. It’s a shame it’s not widely taught although it’s gotten better. Do you think this decision is good or bad?
It is a signed agreement. The trial with a jury found NAR guilty. The judge is only decided on if Realtors have future immunity from more lawsuits. The DOJ and Federal Reserve both published paper on the de-coupling of buyer and seller commission. NAR has already said this is happening no matter what the Judge says, and the agreement says to implement it as soon as possible.
Thanks for sharing! The verbiage I was reading from various sources regarding approval, including NAR's website was a bit unclear so I wanted to be cautious with my language. What are your thoughts about this scenario though?
With home prices being unaffordable for many first time non-investors, I can see the potential for disruption to the real estate industry, that makes it easier and cheaper for buyers to go at it without an agent. I question if agents are actually providing the same value as they did when the commission structure was first established. Seems to me like agents are no longer gate keepers for buying and selling.
They are def agents who offer minimal value and they will probably be weeded out. Do you think first time home buyers are equipped to rep themselves? What type of disruption do you think might happen? Thanks for sharing your thoughts!
@@blackrealestatedialogue My assumption is that we live in an information age, where this knowledge gap can be supplemented by a disruptive service provider . A lot of the advice we learn as investors could actually be beneficial to home buyers as well.
The problem right now is the very low inventory. It doesn't matter how horrible the house is because there is nothing else out there to buy. Sellers are still drastically overpricing their homes and usually are not willing to do any repair or give credit back. This settlement just magnified the cost for buyers and will cause long term problems on determining home values accurately. Just look at what home prices have done ever since MLS data has been syndicated to so called "advertising companies" (sometime around 2005) whom are now real estate companies...and also mortgage companies. Did the home buying process get better now that the general public has "data access" or has it become a giant mess?
Thanks for sharing! Some of these sellers are truly delusional but to your point in some market they get away with it bc of inventory. You raise a great question. Do you think sellers/sellers agent who don’t offer commissions split will have their homes not sell?
You are correct!! even homes built in the late 1800's people are asking 2-3 times the value here in MN there will be no equity in buying something that old, it's lose, lose, LOSE!! I think it's better to buy land!!!
The new inventory you are seeing was started 3 years ago when rates were 3-4%... the predicted increase is no where near demand. Another housing shortage is less than 2-3 years away. Take a look at the new construction starts since rates hit 7% and the heavy backup/delays of building approvals@@erikhall9776
Thanks for watching! Be sure to hit the subscribe button, it's free 😀
So if you are a buyer, just pay your agent. And if you are an buyer's agent, just charge the person you are performing a service for. That's how business works. Sounds like a lot of whining. "Oh boohoo, I can't leach off of someone else's cash acquisition." 😭
Let me ask you this. Do you think sellers/sellers agents who don’t offer offer commission split will have their houses sell slower? What would you charge your client if you were a buyers agent? Thanks for the comment!
@@blackrealestatedialogue Yes, the sale probably will be slower or perhaps will be at a lower price. If a buyer is not willing to pay as much, he can pay his agent out of the difference, so little will have changed. However, imo, buyers don't really need agents. So if I were a buyer's agent, I would charge less than what the seller's agent charges. I may even change my business model over to charging for a service instead of a transaction commission. I could always be a seller's agent also.
interesting points you brought up here. I'm so curious to see what will happen. @@philosophyforum4668
You dont need an agent until you need an agent. 😂
Great video and explanation! I am an investor and realtor in south Florida. The good realtors should be happy about this change as a lot of mediocre or bad realtors (which is maybe 90% of them) will quit. In the end, both buyers and sellers will be happier
well said, thanks for sharing!
Sellers agent pays the buyers agent with the funds brought to closing by the buyer, get it? 😂
Yep 🤣
Thanks for sharing. I do think your opinion is biased towards the agents. you made some assumptions on how you think the commission will fall out, so I will share some of my assumptions
The mortgage industry and appraisers will adapt. You will find mortgage brokers building in the buyer agent commission into the loan. Appraisers will work with the banks.
I believe you will also see sellers offering commissions around 1% for buyers and the buyer's agent negotiating the rest. In the end they will still make around 2 to 3% commission. That's what I believe.
Thanks for sharing! You make some good points all of those are possibilities
why would you use 20% its rare that a first time home buyer or any other buyer for that matter put down 20% you can easily get a fha loan for 3.5 percent you can get a conventional for as little as 5 percent whoes putting down 20 %? but ill listen to see what else you got to say
Thanks for the comment! It all depends. Some people wouldn’t be able to afford the mortgage at 3.5 or 5% down. For some people it’s best to put down 20% bc the payment ends up being more affordable. It all depends though and everyone’s situation is different. Thanks for watching!
Personally, I believe that the real estate course should be taught during the Junior/Senior year of high school, along with financial literacy (taxes, credit, understanding loans).
The major thing with this decision is they won’t be able to put the buyers agent commission split on MLS anymore. I saw a video from the President of NAR and what they’ll end up doing is wording that there will be a commission split with a buyer’s rep in a certain way. So it’s not completely gone, but the business is definitely changing.
I def agree it’s something kids should learn about early on. It’s a shame it’s not widely taught although it’s gotten better. Do you think this decision is good or bad?
It is a signed agreement. The trial with a jury found NAR guilty. The judge is only decided on if Realtors have future immunity from more lawsuits. The DOJ and Federal Reserve both published paper on the de-coupling of buyer and seller commission. NAR has already said this is happening no matter what the Judge says, and the agreement says to implement it as soon as possible.
Thanks for sharing! The verbiage I was reading from various sources regarding approval, including NAR's website was a bit unclear so I wanted to be cautious with my language. What are your thoughts about this scenario though?
I agree with everything you said.
thanks so much!
You did a great breakdown. There are a lot of click bait videos going around. Even the mainstream media is reporting wrong
Thank you so much! I do my best to breakdown the info in my videos and weed through the click bait.
With home prices being unaffordable for many first time non-investors, I can see the potential for disruption to the real estate industry, that makes it easier and cheaper for buyers to go at it without an agent. I question if agents are actually providing the same value as they did when the commission structure was first established. Seems to me like agents are no longer gate keepers for buying and selling.
They are def agents who offer minimal value and they will probably be weeded out. Do you think first time home buyers are equipped to rep themselves? What type of disruption do you think might happen? Thanks for sharing your thoughts!
@@blackrealestatedialogue My assumption is that we live in an information age, where this knowledge gap can be supplemented by a disruptive service provider .
A lot of the advice we learn as investors could actually be beneficial to home buyers as well.
Ahh I see where you're coming from. To be honest, I think it's possible. This would be the perfect time to make that happen!@@TurnRiver
No real estate agent has helped me find a house
Do you go direct to seller?
Very informative 👏 thanks
Glad you enjoyed. Thanks for commenting!
Nice video. Way to present facts.
Thank you! I’m glad you enjoyed
Great video!!!!
Thanks so much!
I just got with a broker after passing the test bruh
Congrats to you!
What broker you choose?
The problem right now is the very low inventory. It doesn't matter how horrible the house is because there is nothing else out there to buy. Sellers are still drastically overpricing their homes and usually are not willing to do any repair or give credit back. This settlement just magnified the cost for buyers and will cause long term problems on determining home values accurately. Just look at what home prices have done ever since MLS data has been syndicated to so called "advertising companies" (sometime around 2005) whom are now real estate companies...and also mortgage companies. Did the home buying process get better now that the general public has "data access" or has it become a giant mess?
Thanks for sharing! Some of these sellers are truly delusional but to your point in some market they get away with it bc of inventory. You raise a great question. Do you think sellers/sellers agent who don’t offer commissions split will have their homes not sell?
You are correct!! even homes built in the late 1800's people are asking 2-3 times the value here in MN there will be no equity in buying something that old, it's lose, lose, LOSE!! I think it's better to buy land!!!
Inventories are increasing. This is old information.
The new inventory you are seeing was started 3 years ago when rates were 3-4%... the predicted increase is no where near demand. Another housing shortage is less than 2-3 years away. Take a look at the new construction starts since rates hit 7% and the heavy backup/delays of building approvals@@erikhall9776
increasing where and by how many homes?@@erikhall9776