I think people will really need to educate themselves and truly start reading the agreements. Seems like some agents could be sneaky and try to double dip and get paid in full by both the seller and the buyers if they play dirty.
Basically yes cause Javier said they will negotiate behind closed doors without your knowledge. Which is extreme bs I want to be involved in every part of this. I need to know how much you're getting paid
Misguided idea though, at least in AZ. Agents have to use a Limited Representation Contingency which fully discloses if there is dual representation. Some states may have different protocol though! I wouldn't see why the Seller would care if the transaction is dual repped if you get the price and conditions you wanted personally. I'm glad if my Realtor wins and I win.
@@starsick7 If you use zillow they always disclose the seller commission. Just negotiate that in. Also, tell the seller agent to give you the commission discount if dont have an agent, they do agree to negotiate.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite a while now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
Iynne Marie Stella is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.
I’ve always felt that many buyer agents don’t do shit! I actually found houses and they called the seller agent so I can see the house. Glad this is happening.
The seller’s agent does far less than the buyer’s. The buyer’s agent brings the buyer to multiple homes, a good agent will tell the buyer what to look for in a home, offer advice for and possibly set up all needed inspections, walk the buyer through the lending process and do the final walkthrough on the house. The seller’s agent has photos taken on the house and posts them online, then they go on vacation because it’s the buyer’s agent who shows the house and places the offer.
Depends on the agent. My agent saved me her full commission with advice on negotiation because she knew the market and agents, had a list of inspectors and contractors I could get in in 14 days for the inspection period, and negotiate fine details. Also being able to access the house on the schedule of the person you choose, instead of seller's agent, helps. She estimated my costs for repairs/roof/new floor to within 10% during walk through. Additionally for a first time home buyer just knowing all the fine details of the process -when to secure insurance, local lenders, local insurers, local contractors. There are bad agents, but I would have paid mine out of pocket in retrospect. I.e. in hindsight, I would have paid 3% more for the house to have that agent. Buying my second home? You know I might not get an agent. But I still might. My agent also showed me 50 homes over 3 years for no pay.
I have to agree. I had a buyer agent that sent me an LMS link that had homes under a certain value disabled and refused to help me find a fixer upper. She was only concerned about her bottom line. She started sending me houses over my budget and not even in the area I was searching. Buyers agents rarely put clients first in my opinion.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
It's likely going to grow worse. Housing that is affordable will soon become unaffordable. Consequently, I will encourage everyone who wants to take action to take it now, as today's prices will appear to be lower than they are tomorrow. I believe that we will witness hysteria as a result of unchecked inflation until the Fed takes additional action. The band-aid cannot be torn off halfway.
The new mortgage rates are crazy, add to that the recession and the fact that mortgage rules are getting more difficult, and home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. For now, get your money (as much as you can) out of the housing market and get into the financial markets or gold. If you are at a cross roads or need honest advice on the best moves to take now, it is best to seek an independent advisor who knows about the financial markets.
'Jessica Lee Horst' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I find this informative, curiously explored Jessica on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
Its hard to feel bad for agents. Every single one ive used has been a nightmare to deal with and i do everything myself better even as a first time buyer and then seller. They literally get paid to ignore you and do nothing. Especially new construction. As soon as i signed the build contract he ghosted me and i couldnt fire him since his name was in the contract. Scam artists.
What agents. They are heading for the door. Unless you have constant open houses, no one is coming. People assume wrongly that sellers will save and buyers will pay. What buyers? They are not coming.
Too complex. In simple terms “the industry” baked in a 6% commission through omission, training and practice over the last four decades, when commissions are and always have been negotiable. The NAR suit was a bunch of sellers realizing just how much 6% really is (i.e. too much) and entered a class action against a number of brokerages and NAR. Buyers just need to be very specific in their agreements. Yes, you control the wording in the agreement. You can say “I will pay X commission on X home or homes upon successful closing. Do your due diligence prior to talking to an agent. All in all this is just another step to flat fee services and the inevitable dematerialization of the agent role in the “median” market because the reality is in this competitive market most sales do only require a showing and a basic template contract that all realtors have stored in their lap top waiting to fire off at a moments notice. Essentially you’re paying them to be bothered and distracted from whatever they may be doing with their time when you call them, but consider that in light of 6% on a $500,000 home is $30,000. You decide…
Exactly. Just because it *could* be negotiable doesn't mean it was. >90% of sales in most areas were at 6%, and buyer's agents would often punish sellers who did have a lower than 3% buyer's agent commission by refusing to show the homes.
6% really isn’t to much people are just mad it’s one of the few jobs that adjust with the market. No one would cry if homes tanked to 100k cutting agents pay by 75%
Thing is, we had ten years of appreciation in a matter of two. The work to complete that transaction is the same regardless so, it shouldn’t cost more. With transactions falling to 2017 levels, the market is finally starting to correct.
Such a dumb system, here in the UK the seller registers their house with an Estate Agency, which is like a shop a buyer can go into and there will be the details of hundreds of houses organised by region and price. You can still organise viewings and everything else via the Estate Agent. The seller pays the Estate Agency 1.5-2% end of conversation, buy pays nothing.
Here is the dumb system you are referring to in the US....seller goes into listing agreement with listing firm (represented by listing agent for that firm) Listing firm charges seller a percentage which is negotiated. (Example 3%) Listing firm pays buyer agent firm a percentage of what the seller is paying is them. Listing firm pays (Example 1%) to buyers agent firm. Buyer pays nothing!! end of conversation. Since the seller is already paying the listing firm a negotiated percentage, the seller is not paying out any more money to a buyers agent!! The Listing Firm Is Paying The Buyers Agent Firm Out Of The Proceeds The Listing Firm Negotiated With Seller!!! Period End Of Story...
@@mistafrank31 I have purchased multiple houses on both sides of the Atlantic and I am telling you as a statement of fact the UK system is superior in every single way. For example, the Realtor system depends on them knowing every single house that is currently available for sale in a given area. The UK system has the details of ALL houses for sale, the information is available in one place, that you can visit at your leisure, take home details of dozens of properties and decide with ones you want to arrange visits to.
Our system here is a fairer system than in the UK or Australia. We are a constitutional republic whereas those 2 countries are not, secondly, homeownership here gives rise to a thriving middle class and generates lots of money in the local economy by creating jobs ... from landscapers, home-improvement stores, and furniture stores to law firms that does the closing... the mortgage lender makes money too, our mortgages are typically 30 years whereas those 2 countries mentioned do not have 30-year mortgage plus they are under the guidance of British Monarchy...
Best to just sell it yourself. The majority of agents I've met and talked with have NO CLUE what they're doing. Why pay an agent to do what a lawyer can do for you for way less? I've sold a house on my own. Easiest process ever. You can do it!
I'd be interested to hear about the main steps of that process for you, if you'd be willing to share? My landlord recently brought up the option of selling the house. I'm trying to learn everything as a would-be first-time buyer. Although I haven't committed to the decision yet. Was it just attorney fees for you and the buyer...are there other things to consider?
@@mariah12809 Agents seldom understand the underlying RE Law. I'd either: "Lease, with the Option, to purchase?" Or Seller Finance, via Trust Deed?? (2.5- 5% vs. 5- 10% down??) The MAIN advantage (pre- correction) with the L.O. is the "option, vs. obligation" to purchase. I'm an investor/ consultant... that does these types, of deals. You'd then close either with a RE attorney, or at a title company... depending on the laws, and location?
@@dondgc2298 whoever is using them. So a buyer would pay their agent based on what they did, and a seller would pay an agent based on what they did. This way also they would get paid for houses that don't get bought or so too. That's one of the reasons commission's so high is to make up for all the sales that don't happen..
Sellers think they had a big win but they really didn’t. I think they will be hurt by the changes. I think foot traffic to the homes will decrease. I am not paying anyone to open a door for me. I will wait for the open house. If I like it ad want a second look or I want to make an offer then I will contact a buyers agent. If they don’t have an open house I will pass on that house. I suspect a lot of others will do the same.
@@southernyankee2300 At close is already too late, your agent negotiates the price and other terms in the purchase contract, you only have ten days for inspections, you need to ask in writing for the seller to make repairs, if they don't answer in 5 days you accept it 'as is'. FYI you can't change anything at close.
The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that or generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 48.
I don't think here is the place for personalized investment guidance. However, I suggest consulting with a reliable advisor like Azul to ensure appropriate retirement planning.
I’m closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in over 80% profit than some of my peers who have been investing for many years. Maybe you should consider this too
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
@@JC-cf4rs home prices will fall when there is more supply on the market. supply and demand, plus the location of a property are a couple of factors that determine the price of a home...
@@delayedgratification581in almost all locations housing prices went up, logistically it can't go down unless we make over a million new homes, not a joke literally a million homes is needed to impact the market in any meaningful way
@@michaelhurley545No they won't. The seller has already signed a contract with their agent. Thats the source of your commission. If you were my agent your azz would be fired and with a swift kick out the door.
The problem with framing that the seller is “saving” this commission is that you have to assume that the commission arrangement prior to this settlement was fair and market which clearly is was not.
So the buyer could make the timeframe of the new buyer/agent contract only valid for 1 day? That way the buyer isn’t stuck with an agent they don’t like showing them multiple houses.
Cmon dude can you really say “commissions were always negotiable” with a straight face and sleep well at night? Everyone knows the set comish was 2.5-3% to the Buyers agent or they would NEVER SHOW you the house unless you found it yourself online! Thus the reason for the lawsuit in the 1st place 😅
And this is because the majority of agents in the US hang their license with either a franchise firm or publicly traded company. Neither of these business models work when agents bring in less than 3%. Agents must pay the difference to their brokerage if they agree to lower their commission. This is the actual reason firms producing over 2 billion a year also had to settle the NAR lawsuit.
Just like travel agents, buyers agents will go the way of the payphone. There is no value a buyer's agent can add anymore. I always go directly to the listing agent.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
This is just a final nail in the buyer agents coffin. The pay scale to open doors has been way too high for decades. Buyers will simply start contacting sellers agents directly or simply hire a Real Estate Atty.
For sale by owner directly a single family home 15 min away from downtown orlando look at zillow FSBO Hamlet Dr Maitland, FL title company takes care of everything and saves the buyer and the seller commission
I think part of the softness we saw this year/weakness is this upcoming issue.. the little rush we saw last month might be trying to avoid it and it’ll be interesting to see if the is a shift in supply and demand that effectively lowers that $400k to 390 or 395
My experience is buyer's agents are worthless. Door openers and when it comes time offer they ask me what to write. Don't suggest anything, don't say "hey, that's a fair price" or anything. Just "tell me what to write" like they are a secretary taking notes. Now i have to pay them for this "service".......... I'll just get the seller agent to open the door for me and get a lawyer to write the offer for a fraction of the fee cost. (because seller agent i don't have to pay)
All of the abilities are there, we use AI to summarize contracts and put basic ones together at work. RE contracts are perfect for AI. So searches are automated, contracts too, all that's left is opening a door. That's worth minimum wage not 3% or even .5% percent
So the seller use to cover the tip for buyer's agent, according to the documentation, but now it's up in the air on who covers the tip, but it could be the buyer.
wow, buying the most expensive asset a person will ever purchase and you compare a buyer's agent to a travel agent? Wow wow, no wonder for the NAR lawsuit 4 renters were used as the jurors... no wonder the globalists and the elites want us to eat bugs, live in our 15-minute cities, and rent for the rest of our lives- where we will truly own nothing ....
I still don’t get how they provide much of a service. They have the key to get into a house and them being there allows me to look at a house. Sellers need to have open houses so I can just go without an agent.
Nothing wrong in paying for someone else’s service. The issue is now the buyer has to actually write a check and see it come out of the bank account. Before, the buyer paid for it by it being included in the sales price of the house. Either way the ruling doesn’t seem to prohibit the seller giving the buyer’s agent commission but rather it is about listing the commission on the mls. So technically a seller might still give buyer concession at closing to be used towards the commission. I mean everyone gets paid at closing right? The title company, the survey company , the county and state, the lender or mortgage broker and the listing sales agents. Who got paid before them? The home inspectors and the insurance company. Transparency and honesty in dealing is the key.
This means seller's closing cost is basically reduced by that 2-3% buyer commission, correct? As a seller, I'm not paying commission for buyer's realtor to negotiate AGAINST me lol I bought twice and both buyer's realtors were never worth the commission.
As a buyer, the agent does not even represent you. They represent themselves, and their interests. So many have been burned by them and now the truth comes out.
The buyer has always paid the agents, it was just via a higher price. Now the buyer will still pay their agent but it will be with a lower offer. This just adds friction to the transaction. The buyer has a fixed budget and it doesn't matter how the transaction is structured. For example I recently negotiated a car purchase. When we got to the finance guy, I responded to his every effort with "so long as the out the door price doesn't change." I dodn't care how much the doc fees are, taxes, if they put nitrogen in the tires, magic spray on the frame, etc. because I wasn't spending a penny over my budget. If the buyer can only afford a $350K, the sell price is $400K and they have a $50K downpayment, forcing them to "pay" $12K to their real estate agent means they can only offer $388K to the seller. The math is exactly the same, we just changed who writes the checks.
@@Allan_A It's actually even worse than you describe, because currently that theoretical $12k commission is non-financable. In the infinite wisdom of this lawsuit, now coming up with a down payment, particularly for low-income families, will become that much more difficult. The outgoing system in place was better, IMO. If you pay a general contractor to get your house remodeled, he is going to take your money and pay other contractors to do different roles. I saw no difference in how it operated here. You are selling a house, you need someone to bring a willing and able buyer... and that someone deserves to be compensated for the time, skill, and effort required. Also, I'm skeptical house prices will actually fall because of this change.
Sellers are clear winners here, they will likely save most of that buyer's commission. Buying power is simply reduced by that buyer commission. Unless it's a heavy buyer market, most sellers ain't gonna negotiate due to this lawsuit.
@@delayedgratification581 Not that simple. The market is driven by what Buyer's can afford for monthly payment plus savings for down payment & closing costs. Just became way harder for Buyers. The 2-3% difference in purchase price, even if that happens, would be a minor difference to their monthly, but would take months, even a year for some to save up.
Lets talk about the elephant in the room that realtors love to avoid. Why their commission pay is so high for the little work involved? Especially after 2020 when homes often sold themselves. Commission costs are stealing the equity of the seller. Now buyers are supposed to afford to pay? Real estate agent is a scam overpaid industry, and they are rarely honest people in my experience...
1. Don’t sign anything you don’t read. 2. Don’t sign anything you don’t agree to or is not in your best interest. 3. Always negotiate a contract. What is happening here is to the benefit of the buyer, no one else. For the longest time, the buyer has been left out of the information and due to that lack of information has been at a disadvantage. The truth is for people who are lazy, they are going to continue to get taken advantage of by real estate agents. If you take the time and put in the work, you will come out on top. If an agent isn’t willing to modify the contract so that it is in your interest as well, walk and find one that will. I see a lot more effort needing to come from real estate agents in the future when it comes to negotiating in the best interest of their clients and not just trying to sell solely for the commissions. Knowledge is NEVER going to hurt you. Your ambivalence will.
By stating “ I charge x commission”. Is not negotiating ! It’s all filled into the contract pre filled out . We notice the wording AFTER we sign and the agent has left the property . Thats the problem .
Needs to go the way like auto industry for mechanics. Flat rate fees for services like marketing and than commission cap off at 3%, when sale is final.
There us no marketing really. They take 300 dollars worth of photos and then put on MLS. Buyers are using internet so if there, buyers will be exposed to it. List agents are not needed anymore, either. Just access to MLS or similar which I believe will eventually happen. Sale by owner will become far more common.
Maybe I'm missing your point. If you insist on a "deep discount" to cover the cost of commission, the buyer still has to cough up that cash to pay for your commission. In a hot seller's market like it is in most parts of the country, insisting on a discount is a good way to lose the deal for your clients. It seems like the only people who against the new rules are agents. Personally, I think it will still be a very flawed system but at least its heading in the right direction.
For sale by owner directly a single family home 15 min away from downtown orlando look at zillow FSBO Hamlet Dr Maitland, FL title company takes care of everything and saves the buyer and the seller commission
I underwrite single-family homes and it's sad general contractors sometimes make less than the buyer seller realtor plus closing cost. The reason out housing market is fucked is because of realtors.
Realtors should be paid by the hour, like everyone else. They should also be required to take more classes. Most of them just know how to fill in the paperwork. I have had some make it harder for me to buy or sell. Everything is online these days. You can hire an appraiser. In Texas the training can be done in a few weeks. That is a pretty low bar.
I can see beginning or part time buyer agents being able to sell their services for deep discounts as they are building up their business. Just like listing agents sometimes only charge 1% for their portion now buyer agents can drum up business by being discount real estate agents. They can do a flat fee of $2,000 just to get their business growing.
This really didn't affect me at all during my last home purchase. I researched for buyer's agents specifically and found one who specialized in that. He had plenty of reviews and explained very clearly how he works and how its different than a typical buyer's agent. We then signed a contract that guaranteed him a certain amount of money. He was very clear that he will probably get all of that from the seller's agent, but if not, I owe the difference. I was completely impressed with this business model and it seemed like he was ahead of his time because this transaction happened 6 years ago. And there was no double dipping. Everything was clearly laid out and he had my side much more than the typical transaction. Isn't it all a part of a negotiation anyway? If you are buying something as expensive as a house, you should have a lot of questions and be hyper aware of everything going on and not depend on another person to have your best interests in mind.
Depends on what state you are in. My state, yes. You can contact a title company and they can offer a for sale by owner packet. You both fill it out and agree/sign. Present it to the title company and go from there. Some states, attorneys are required.
You can direct to attorney firm to do the closing. They can do everything for you for a fee lower than 3% or 6%. I bought a house and my attorneys only charge us 500 to each selle4 and buyer.
while I don't know how exactly this law works, I do know I once was a buyers agent and it sucks working for free for a maybe sale. good luck to everyone with these new rules!
@@starsick7I know the video you're referencing bc I watched it recently. I sent him a msg a while back asking him for an updated one now that the rules are changing.
@@kaliconnect9014 you can deal with the seller directly but if they have a agent already listing their house they'll try to keep the buyers and seller commission as you're not a real estate agent... Sometimes you can get them to reduce the commission on the buyer's side if you don't have a real estate agent
@@starsick7 Huh it is doable if you can do your due diligence, reading the agreements, negotiating contingency and more . The first time i bought my home i paid $500 for a lawyer to go over the contract and put in contingency, then got inspection and per contingency got things resolved, the second time i did the same thing and no issues, this 3rd time I am using a realtor cos it is cheaper than a lawyer and the seller is paying the cost - the seller refused to remove the agent fee as a discount towards me, so i might as well use it.
The seller can try to list the price however much they want to sell for. It does not mean that the house will actually sell for that much. The buyer needing to finance their agent cost directly means that their direct purchasing power will be impacted (assuming no changes to the current mortgage structure), and the actual sales price of a home will be affected as a result.
For sale by owner directly a single family home 15 min away from downtown orlando look at zillow FSBO Hamlet Dr Maitland, FL title company takes care of everything and saves the buyer and the seller commission
The most natural way is that buyer should pay the buyers agent and the seller should pay the seller agent. In some other countries, it is between 1 and 2%
I can see that the after expiration topic will be very important between the buyer and their agent. I can see some lawsuits coming big tine. Also, wonder if the seller offers paying both sides commission gets their house put on a list that gets moved first? Maybe a silent advantage known by brokers????
Most sellers are also buying so no they are not going to want to cover a buyers commission or lower the price when they also will have to pay their buyers agent a commission on a new house. At least under the old rules u paid the 6% on your sale but nothing on a new purchase.
I just want to comment that my realtor told me when I was selling that I had to offer at least 2.5% commission else no one will see my home. My agent has decades of experience too, so I believed his advice. I think many sellers are told this. I live in a very HCOL area.
Until this lawsui,t the Sellers paid that Buyer's agent out of the proceeds of the sale of the house AND that was included as part of the mortgage. So the Buyers were financing that commission over a 15 to 30 year mortgage. Now will mortgage companies allow Buyers to finance the commission in with the home purchase?
I came here to ask exactly the same thing. I think buyers were always paying the buyers agent, but that the amount was set by the seller and it was in the mortgage. The big thing now is that the buyer might need an extra 5-10-15K in cash to buy.
Javier, the issue with this is who is going to bring a buyer to a home with $0 commission or vise versa with who wants to work with a buyer who “negotiates” a $0 commission. Extreme example obviously but kind of drives the point home.
I think with the change, the commission will not be listed on the MLS, so the buyer’s agent will not know in advance that the seller is paying $0 in commission. Also, if the realtor has the best interest of their client in mind, they will take their buyer to see the house if their buyer requested as much.
think we need a flat fees, seller offers a commission it is discussed after we look at the house and I want to make a offer or opt pay the agt a hourly wage to get ride of the time wasters
a good one can really help you negotiate the deal through. Probably better off paying a Real Estate lawyer in retrospect for the kind of money we're paying those RE Agent leeches.
In CO we have strict disclosure laws....for realtors. A seller dosnt have to tell you if there are issues an inspector wouldn't know without a realtor.
Can't I just ask a company to put my house on the MLS? I can take pictures, and video. Plus I know my house and all it's features and I'm a pretty good negotiator.
@@smokeyj3983. That is what I did when I sold in 2009. I found someone to list on mls for a cheap price. She was still overpaid for her time. They should be paid hourly and keep timesheets.
How to buy a new home? Don't use a buyer agent. Go direct to the seller agent. Most agents don't do a good job helping you find a home anyways. Most times you gotta find it yourself then ask for showing. Buyers agent will eventually become non existence or buyers will just use the seller agent.
For sale by owner directly a single family home 15 min away from downtown orlando look at zillow FSBO Hamlet Dr Maitland, FL title company takes care of everything and saves the buyer and the seller commission
I have a question @Javier. My house was "listed" with an agent and I withdrew the listing on 6.23.24 (due to the summer time). On 6.22 (the day before I withdrew the listing) I had a showing. Nothing happened from the showing though. So my question is this....If the agent that "showed" my house on 6.22 would later come to ME with a contract, does my listing agent (who no longer has the listing) deserve a commission. I can't find anything on that. The contract I signed on lines 59-61 doesn't say anything about the topic. TY
It never made any sense. The buyer should pay for the buyers agent and the seller should pay the sellers agent. Each is working for you. You shouldn’t have to pay for a service that wasn’t provided to you. If I am selling my house, my agent found someone for me just the same as the buyer had their agent help them.
It’s called seller agent only ever gets 3 percent now. Buyer agent will have to charge in the contract a flat fee like 2 grand. This is good. The contract will state and must state the actual fee up front for the buyer agent contract no matter what the house cost which is good. Real estate agents are the next travel agents. Going away.
Well how about if I sell my own house and then go to a title company to finish up with the paperwork? Would that save me a lot? In the old days they used to put a for sale sign and just drop a contract. But I realize there's a little bit more ball but still thousands of dollars for commissions it's a rip off
Javier, can you make a video about HELOC? I have a home in FL, but I live in MA, don't want to sell the house but instead going for a HELOC on my FL house to buy another one here in MA, it looks like no banks are allowing that right now, my credit score is 814. Could you please make a video about why that is be happening and what options do I have that don't include cash-out refinance and selling? I know that I am asking a lot, but I am out of resources right now!.
I don’t seen anything wrong with the value of the agent. However, how is it legal to never know how much the total price is and never get a break down of where my money is going! And then get a massive bill after the fact!
My question is (Javier might have already answered this) will the money we owe the agent be included into our hone loan? Or will we be taking out two different loans. Realistically idk how people will have 100k to pay on top of their down payment. Seems really ridiculous
@AzElenee got my 20% down-payment and ~3% buyers agent fee mixed up. Still 15-30k that's not something people have leftover after a 20% down-payment. Know what I mean?
This is how it should have always worked - the buyer pays their agent and the seller pays theirs. That’s the best way to ensure that all parties and their agents’ interests align. It’s also how it works practically everywhere else in the world.
Thanks for the video. Question: So, when this law takes effect does that mean that the seller does not pay the whole commission? Let's say that the commission is 6% in the past the seller would pay all of that but with the new law the buyer pays half of that, 3% and the seller pays 3% ??????????? Is that right?
I have a question wouldn’t it be easier to just use the listing agent and the listing agent can just get the fee that would make more sense to me just use the listing agent
Am I missing something here! I thought the lawsuit had do with the buyer's agent not showing homes to the consumers if they found out that the sellers were offering zero or less than what the buyer's agent was willing to take on to show the home! So they remedy it by removing it off the MLS website! How does that help the buyers if all the buyers agent had to do was ask the selling agent what percent if anything are they offering then he/she knows what their potential commission will be! Now if they are saying that the buyer's agent won't know what the commission will be from the selling agent until the home sells then that would be fair! Another thing that has my attention is if I the buyer goes in and negotiates directly with the selling agent and the owners are offering say one to three percent to the buyers agent which would be me wouldn't and shouldn't I get that commision since I took on the role as the buying agent? I reviewed another video like this where the selling agent stated that when you negotiate a price with the buying agent and for example the buyers agent and I have an agreement of 2.5% and the owners are offering 3% then that .05% is supposed to go to the buyer and vice versa, if they were only offering 2% then I would be on the hook for the .05%! That's why this video is confusing! If the buyers agent can obtain that information from the selling agent then the buyer has nothing to negotiate with other than sticking to certain price point that may enrich the agent more depending on the sellers agent!
What will happen is buyer's agent commission will probably fall under the umbrella of seller concessions. Agreement to keep the current price or raise the buying price so seller pays the buyer's agent and the buyer's agent fee is effectively wrapped into the mortgage.
Skip the realtors. Paperwork can be done by attorney. Much cheaper. Homes will more likely go by owner if buyers just refuse. If you have to, do a house by house contract after learning if the seller is offering any towards it. Agents can no longer expect an exclusive contract nor a time frame. Buyers should not be tricked into carrying all the risk if the seller is not paying. Buyer agents are being ridiculous thinking buyer agent value is worth a percent.
@@justcallmebrian793, It's not a criminal case lol! It's a contracts case and yes attorneys who do this for a living charge between $500-$2000 still cheaper than giving up $10,000 plus for a commision! The bottom line is if the owner and buyer got together and hired a real estate attorney both the owner and buyer would save tens of thousands of dollars by cutting out the agents! Half the battle is agreeing to a price then conducting the standard inspections and appraisals! Let the attorney file the proper paperwork for the title and home insurance/escrow account!
@javier who will buyers go to for filling out the contract? Attorneys may take advantage of the situation and listing agents will find a way to capitalize on it as well.
I never thought the list price of a house included the commission. The list price should be what other comparable homes in the area sold for. Because the seller has to then give 4-6% of that to the agents has nothing to do with the house actually being worth 6% less than asking. That makes no sense.
For sale by owner directly a single family home 15 min away from downtown orlando look at zillow FSBO Hamlet Dr Maitland, FL title company takes care of everything and saves the buyer and the seller commission
Initially there will be chaos associated with this change but in the long run the change will be for the good by more closely aligning the interests of buyers and their agents and by raising the level of professionalism among buyers’ agents.
Before this change, sellers were required to offer compensation to a buyer’s agent in order to advertise a home on MLS. Now they are no longer required to. Now the seller can choose whether to offer that or not. Things might not change or how much buyers pay their agents could go down. It was already fishy that the buyer's agent was paid on commission on the sale price of the house. In order to actually be in the best interest of the buyer they needed to help negotiate the price down. But that means the buyer's agent is working to lower what they get paid. That is called a conflict of interest.
@@JoelTheEconomistI mean conflict of interest we are talking about hundreds of dollars….. if my agent hurts for hundreds of dollars I don’t want them as my agent!
@@JrJr-y6g True, but you probably will never know one way or the other. I am not saying realtors do not try their hardest, but buying homes does put them in a conflict of interest using a commission as compensation. No matter how small, it is still a conflict. Also, that hundreds easily turns into thousands over the course of 20 homes. I think one of the reasons for this change was because agents were directing buyers to homes that had higher percentages for the buyer's agent. In the end, your probably right, since the gains from being dishonest are so small, it might not happen very often.
If you find your house online yourself, as it has been done since 2005 at least, why do you need to pay an agent a chunk of money? In the old days they pulled listings and you had no access to the info. These days it is all online.
Will this have any impact on buyers using a VA loan? I’m in the process of closing on my first home with the VA loan and from what I understand they require sellers to pay buyer commission. Will this change? If not, could this result in fewer sellers accepting VA?
We moved in zero money down, seller paid closing costs/the agent. All we paid for were the Appraisal, Inspection and standard Lender fees. We got money back at closing and from a Post Closing Audit 3 years ago. When we found the house we bought, since properties were being bought as soon as they listed due to the low rates, I hurried up and emailed the agent and told her DON'T SELL THAT HOUSE! She emailed back within an hour saying CALL ME! So I did, we did the contract over the phone, she presented it to the sellers, they accepted since we gave them their asking price, they gave their tenants a 30 day notice to move ALL WITHIN 4 HOURS. We closed in mid April 21, been here ever since
@@winniethepoohandeeyore2 no you paid for closing cost and the agent... They just reduced the price to make you feel like they "paid" for closing costs.
People have got to educate themselves. I purchased a house 2 months ago and the agent representing me brought this new law up and tried to get me to sign paperwork saying I would pay him commission. I was aware of this law which was not yet in effect and refused to sign. He would have received commission from me and the seller! Smh
I’ve seen buyers agents drive all over the place with buyers who have no interest in buying a house. It sounds like it protects buyers agents. I’ve also seen it where buyer’s agent work with a client and then they go with another agent to buy. The agreement is not new it’s not customary. Real buyers won’t mind signing.
hey javi or anyone who knows the answer ....... what happens if i have an offered accepted as a buyer and doesnt closed until after the new law? do i have to pay for my agent or would they respect that we submitted the offer before all the new rules come in play? thanks
For sale by owner directly a single family home 15 min away from downtown orlando look at zillow FSBO Hamlet Dr Maitland, FL title company takes care of everything and saves the buyer and the seller commission
First and foremost; "Buyer agent said I would owe him x amount of dollars." That is a RED flag! As you stated the fee is up for grabs as in negations. I'll tell you what if I speak with an agent that expects 1.5% commission on a 450K home, they are nuts. I feel there will be lots of agents scrambling for every scrap they can get and I'll put an ad up for $1000.00 for a buyers agent. My money says, there will be lots of takers. Time will tell.
The value of a realtor has to do with your background. My husband is in banking, understands contracts and also knows attorneys who can write contracts. I would do a flat fee to a realtor to help me but I don’t need their help as much as a person who doesn’t know what is going on. I think you will see more fsbo from this and move away from the traditional environment/ecosystem.
this is really simple. lets frame it in another way most people are more familiar with. you can go to court without a attorney and save yourself some money by representing yourself. people do it everyday. the qeustion is, do you really want to do that. especially considering you maybe negotiating a purchase contract on a asset worth hundreds of thousands of dollars
I think people will really need to educate themselves and truly start reading the agreements. Seems like some agents could be sneaky and try to double dip and get paid in full by both the seller and the buyers if they play dirty.
Basically yes cause Javier said they will negotiate behind closed doors without your knowledge. Which is extreme bs I want to be involved in every part of this. I need to know how much you're getting paid
100x YES! I’m pinning this comment
Misguided idea though, at least in AZ. Agents have to use a Limited Representation Contingency which fully discloses if there is dual representation. Some states may have different protocol though! I wouldn't see why the Seller would care if the transaction is dual repped if you get the price and conditions you wanted personally. I'm glad if my Realtor wins and I win.
@blakemcclary3380 The double dipping creates an obvious, large financial conflict of interest.
@@starsick7 If you use zillow they always disclose the seller commission. Just negotiate that in. Also, tell the seller agent to give you the commission discount if dont have an agent, they do agree to negotiate.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite a while now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
Iynne Marie Stella is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.
I’ve always felt that many buyer agents don’t do shit! I actually found houses and they called the seller agent so I can see the house. Glad this is happening.
Sellers agent will charge you also
@@michaelhurley545No they won't. If my agent selling my house refused an offer from a qualified buyer, you would be fired!
@@michaelhurley545 no they won't.
The seller's agent represents the seller. Don't expect them to have your best interest in heart
The seller’s agent does far less than the buyer’s. The buyer’s agent brings the buyer to multiple homes, a good agent will tell the buyer what to look for in a home, offer advice for and possibly set up all needed inspections, walk the buyer through the lending process and do the final walkthrough on the house.
The seller’s agent has photos taken on the house and posts them online, then they go on vacation because it’s the buyer’s agent who shows the house and places the offer.
With the emergence of of Zillow and Redfin … what value does a buyers agent really bring … they help with paper work but thats not worth 3%
Unfortunately, the MLS is much better than Zillow or Redfin. So they have that.
@@Chris-cx6wl better in what way ?
@@xXCozyJxX It is more accurate and up-to-date. Zillow and Redfin depend on public information, where the MLS is updated directly by listing agents.
Depends on the agent. My agent saved me her full commission with advice on negotiation because she knew the market and agents, had a list of inspectors and contractors I could get in in 14 days for the inspection period, and negotiate fine details. Also being able to access the house on the schedule of the person you choose, instead of seller's agent, helps.
She estimated my costs for repairs/roof/new floor to within 10% during walk through.
Additionally for a first time home buyer just knowing all the fine details of the process -when to secure insurance, local lenders, local insurers, local contractors.
There are bad agents, but I would have paid mine out of pocket in retrospect. I.e. in hindsight, I would have paid 3% more for the house to have that agent.
Buying my second home? You know I might not get an agent. But I still might.
My agent also showed me 50 homes over 3 years for no pay.
I have to agree. I had a buyer agent that sent me an LMS link that had homes under a certain value disabled and refused to help me find a fixer upper. She was only concerned about her bottom line. She started sending me houses over my budget and not even in the area I was searching. Buyers agents rarely put clients first in my opinion.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
It's likely going to grow worse. Housing that is affordable will soon become unaffordable. Consequently, I will encourage everyone who wants to take action to take it now, as today's prices will appear to be lower than they are tomorrow. I believe that we will witness hysteria as a result of unchecked inflation until the Fed takes additional action. The band-aid cannot be torn off halfway.
The new mortgage rates are crazy, add to that the recession and the fact that mortgage rules are getting more difficult, and home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. For now, get your money (as much as you can) out of the housing market and get into the financial markets or gold. If you are at a cross roads or need honest advice on the best moves to take now, it is best to seek an independent advisor who knows about the financial markets.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
'Jessica Lee Horst' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I find this informative, curiously explored Jessica on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
Its hard to feel bad for agents. Every single one ive used has been a nightmare to deal with and i do everything myself better even as a first time buyer and then seller. They literally get paid to ignore you and do nothing. Especially new construction. As soon as i signed the build contract he ghosted me and i couldnt fire him since his name was in the contract. Scam artists.
100% I agree, mine is nowhere to be seen.
This is sad but true. I think things will change now. The lazy ones will have to quit.
Every single one I had was terrific with buying and selling. I vetted them though, so there is that.
I can't agree anymore. He ghosted me for a week because he had a hockey tournament 💀💀😵.
What agents. They are heading for the door. Unless you have constant open houses, no one is coming. People assume wrongly that sellers will save and buyers will pay. What buyers? They are not coming.
Too complex. In simple terms “the industry” baked in a 6% commission through omission, training and practice over the last four decades, when commissions are and always have been negotiable. The NAR suit was a bunch of sellers realizing just how much 6% really is (i.e. too much) and entered a class action against a number of brokerages and NAR.
Buyers just need to be very specific in their agreements. Yes, you control the wording in the agreement. You can say “I will pay X commission on X home or homes upon successful closing. Do your due diligence prior to talking to an agent.
All in all this is just another step to flat fee services and the inevitable dematerialization of the agent role in the “median” market because the reality is in this competitive market most sales do only require a showing and a basic template contract that all realtors have stored in their lap top waiting to fire off at a moments notice. Essentially you’re paying them to be bothered and distracted from whatever they may be doing with their time when you call them, but consider that in light of 6% on a $500,000 home is $30,000. You decide…
Exactly. Just because it *could* be negotiable doesn't mean it was. >90% of sales in most areas were at 6%, and buyer's agents would often punish sellers who did have a lower than 3% buyer's agent commission by refusing to show the homes.
6% really isn’t to much people are just mad it’s one of the few jobs that adjust with the market. No one would cry if homes tanked to 100k cutting agents pay by 75%
Thing is, we had ten years of appreciation in a matter of two. The work to complete that transaction is the same regardless so, it shouldn’t cost more. With transactions falling to 2017 levels, the market is finally starting to correct.
@funtechu this is truth. I have my house sale by owner and they refuse to show my house bc I offer 2% .
Such a dumb system, here in the UK the seller registers their house with an Estate Agency, which is like a shop a buyer can go into and there will be the details of hundreds of houses organised by region and price. You can still organise viewings and everything else via the Estate Agent. The seller pays the Estate Agency 1.5-2% end of conversation, buy pays nothing.
Yes. And the agent also shows the house to all potential buyers.
@@CroisMoi Exactly, all the benefits of a Realtor at a fraction of the price.
Here is the dumb system you are referring to in the US....seller goes into listing agreement with listing firm (represented by listing agent for that firm) Listing firm charges seller a percentage which is negotiated. (Example 3%) Listing firm pays buyer agent firm a percentage of what the seller is paying is them. Listing firm pays (Example 1%) to buyers agent firm. Buyer pays nothing!! end of conversation. Since the seller is already paying the listing firm a negotiated percentage, the seller is not paying out any more money to a buyers agent!! The Listing Firm Is Paying The Buyers Agent Firm Out Of The Proceeds The Listing Firm Negotiated With Seller!!! Period End Of Story...
@@mistafrank31 I have purchased multiple houses on both sides of the Atlantic and I am telling you as a statement of fact the UK system is superior in every single way. For example, the Realtor system depends on them knowing every single house that is currently available for sale in a given area. The UK system has the details of ALL houses for sale, the information is available in one place, that you can visit at your leisure, take home details of dozens of properties and decide with ones you want to arrange visits to.
Our system here is a fairer system than in the UK or Australia. We are a constitutional republic whereas those 2 countries are not, secondly, homeownership here gives rise to a thriving middle class and generates lots of money in the local economy by creating jobs ... from landscapers, home-improvement stores, and furniture stores to law firms that does the closing... the mortgage lender makes money too, our mortgages are typically 30 years whereas those 2 countries mentioned do not have 30-year mortgage plus they are under the guidance of British Monarchy...
Best to just sell it yourself. The majority of agents I've met and talked with have NO CLUE what they're doing. Why pay an agent to do what a lawyer can do for you for way less? I've sold a house on my own. Easiest process ever. You can do it!
The lawyer will charge you money
I'd be interested to hear about the main steps of that process for you, if you'd be willing to share? My landlord recently brought up the option of selling the house. I'm trying to learn everything as a would-be first-time buyer. Although I haven't committed to the decision yet. Was it just attorney fees for you and the buyer...are there other things to consider?
@@mariah12809 Agents seldom understand the underlying RE Law. I'd either: "Lease, with the Option, to purchase?" Or Seller Finance, via Trust Deed?? (2.5- 5% vs. 5- 10% down??) The MAIN advantage (pre- correction) with the L.O. is the "option, vs. obligation" to purchase. I'm an investor/ consultant... that does these types, of deals. You'd then close either with a RE attorney, or at a title company... depending on the laws, and location?
You already pay a lawyer as apart of the process.
Way less than 6% of your home price
3% is an insane amount for the actual work and time that is actually invested. In my opinion they should get paid based on time
Who should pay them?
@@dondgc2298Buyers.
@@dondgc2298 - The buyer. They are the one receiving the services.
@@dondgc2298 whoever is using them. So a buyer would pay their agent based on what they did, and a seller would pay an agent based on what they did. This way also they would get paid for houses that don't get bought or so too. That's one of the reasons commission's so high is to make up for all the sales that don't happen..
So you work a full time job double the hours and make min wage after accounting for hours is too much for you 😂
Sellers think they had a big win but they really didn’t. I think they will be hurt by the changes. I think foot traffic to the homes will decrease. I am not paying anyone to open a door for me. I will wait for the open house. If I like it ad want a second look or I want to make an offer then I will contact a buyers agent. If they don’t have an open house I will pass on that house.
I suspect a lot of others will do the same.
I will just get a real estate attorney and have him represent me at close and just use the seller’s agent - problem solved!
@@southernyankee2300 At close is already too late, your agent negotiates the price and other terms in the purchase contract, you only have ten days for inspections, you need to ask in writing for the seller to make repairs, if they don't answer in 5 days you accept it 'as is'. FYI you can't change anything at close.
The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that or generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 48.
I don't think here is the place for personalized investment guidance. However, I suggest consulting with a reliable advisor like Azul to ensure appropriate retirement planning.
I’m closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in over 80% profit than some of my peers who have been investing for many years. Maybe you should consider this too
I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
'Melissa Elise Robinson' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
We're screwed 😐
Not really. Home prices will fall further as a result
lol doubt it, in most places housing price hasn't fallen much if at all in the past few years
@@JC-cf4rs home prices will fall when there is more supply on the market. supply and demand, plus the location of a property are a couple of factors that determine the price of a home...
@@JC-cf4rsnope, prices don't go down
@@delayedgratification581in almost all locations housing prices went up, logistically it can't go down unless we make over a million new homes, not a joke literally a million homes is needed to impact the market in any meaningful way
With Zillows & Redfin, one can looks up houses and go directly to the listing agent. Avoiding the buying agent.
your going to pay them as well
Those will likely not be free anymore and it’s better to view homes in person
@@michaelhurley545No they won't. The seller has already signed a contract with their agent. Thats the source of your commission.
If you were my agent your azz would be fired and with a swift kick out the door.
@@michaelhurley545
Yeah, by the seller!
For sale by owner
The problem with framing that the seller is “saving” this commission is that you have to assume that the commission arrangement prior to this settlement was fair and market which clearly is was not.
So the buyer could make the timeframe of the new buyer/agent contract only valid for 1 day? That way the buyer isn’t stuck with an agent they don’t like showing them multiple houses.
Soon the buyer will pay open houses 🏘 😂😂
And for the stale cookies 🍪
They always did.
Cmon dude can you really say “commissions were always negotiable” with a straight face and sleep well at night? Everyone knows the set comish was 2.5-3% to the Buyers agent or they would NEVER SHOW you the house unless you found it yourself online! Thus the reason for the lawsuit in the 1st place 😅
As a retired mortgage banker I can personally attest to your statement. Many agents will avoid showing you homes based on buyer agent commissions.
And this is because the majority of agents in the US hang their license with either a franchise firm or publicly traded company. Neither of these business models work when agents bring in less than 3%. Agents must pay the difference to their brokerage if they agree to lower their commission. This is the actual reason firms producing over 2 billion a year also had to settle the NAR lawsuit.
My realtor would never show me fsbo they would never bring up commissions either.
Seriously, this video is stupid. This guy with a straight face says it's negotiable and 6% is not standard. He's been living under a rock.
Just like travel agents, buyers agents will go the way of the payphone. There is no value a buyer's agent can add anymore. I always go directly to the listing agent.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you?
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
This is just a final nail in the buyer agents coffin. The pay scale to open doors has been way too high for decades.
Buyers will simply start contacting sellers agents directly or simply hire a Real Estate Atty.
For sale by owner directly a single family home
15 min away from downtown orlando
look at zillow FSBO Hamlet Dr Maitland, FL
title company takes care of everything and saves the buyer and the seller commission
I think part of the softness we saw this year/weakness is this upcoming issue.. the little rush we saw last month might be trying to avoid it and it’ll be interesting to see if the is a shift in supply and demand that effectively lowers that $400k to 390 or 395
My experience is buyer's agents are worthless. Door openers and when it comes time offer they ask me what to write. Don't suggest anything, don't say "hey, that's a fair price" or anything. Just "tell me what to write" like they are a secretary taking notes. Now i have to pay them for this "service"..........
I'll just get the seller agent to open the door for me and get a lawyer to write the offer for a fraction of the fee cost. (because seller agent i don't have to pay)
AI needs to replace Realtors asap!
All of the abilities are there, we use AI to summarize contracts and put basic ones together at work. RE contracts are perfect for AI. So searches are automated, contracts too, all that's left is opening a door. That's worth minimum wage not 3% or even .5% percent
@@spaceace6945 Wait until the lawsuits start happening for the use of AI ...
So the seller use to cover the tip for buyer's agent, according to the documentation, but now it's up in the air on who covers the tip, but it could be the buyer.
Hopefully realtors will go the way of travel agents. Really not necessary anymore.
wow, buying the most expensive asset a person will ever purchase and you compare a buyer's agent to a travel agent? Wow wow, no wonder for the NAR lawsuit 4 renters were used as the jurors... no wonder the globalists and the elites want us to eat bugs, live in our 15-minute cities, and rent for the rest of our lives- where we will truly own nothing ....
This listed commission is what I suspect would explain why my agent dragged feet when I wanted to see a lower cost house.
Most likely
My agent REFUSED to show me a home I was interested in. Rigged system. I'm going to like this new, unrigged system.
Happy you have 100K+ subs, keep providing value for the little guy !
I still don’t get how they provide much of a service. They have the key to get into a house and them being there allows me to look at a house. Sellers need to have open houses so I can just go without an agent.
Nothing wrong in paying for someone else’s service. The issue is now the buyer has to actually write a check and see it come out of the bank account. Before, the buyer paid for it by it being included in the sales price of the house. Either way the ruling doesn’t seem to prohibit the seller giving the buyer’s agent commission but rather it is about listing the commission on the mls. So technically a seller might still give buyer concession at closing to be used towards the commission. I mean everyone gets paid at closing right? The title company, the survey company , the county and state, the lender or mortgage broker and the listing sales agents. Who got paid before them? The home inspectors and the insurance company. Transparency and honesty in dealing is the key.
This means seller's closing cost is basically reduced by that 2-3% buyer commission, correct? As a seller, I'm not paying commission for buyer's realtor to negotiate AGAINST me lol
I bought twice and both buyer's realtors were never worth the commission.
As a buyer, the agent does not even represent you. They represent themselves, and their interests. So many have been burned by them and now the truth comes out.
The buyer has always paid the agents, it was just via a higher price. Now the buyer will still pay their agent but it will be with a lower offer. This just adds friction to the transaction. The buyer has a fixed budget and it doesn't matter how the transaction is structured.
For example I recently negotiated a car purchase. When we got to the finance guy, I responded to his every effort with "so long as the out the door price doesn't change." I dodn't care how much the doc fees are, taxes, if they put nitrogen in the tires, magic spray on the frame, etc. because I wasn't spending a penny over my budget.
If the buyer can only afford a $350K, the sell price is $400K and they have a $50K downpayment, forcing them to "pay" $12K to their real estate agent means they can only offer $388K to the seller. The math is exactly the same, we just changed who writes the checks.
@@Allan_A It's actually even worse than you describe, because currently that theoretical $12k commission is non-financable. In the infinite wisdom of this lawsuit, now coming up with a down payment, particularly for low-income families, will become that much more difficult. The outgoing system in place was better, IMO. If you pay a general contractor to get your house remodeled, he is going to take your money and pay other contractors to do different roles. I saw no difference in how it operated here. You are selling a house, you need someone to bring a willing and able buyer... and that someone deserves to be compensated for the time, skill, and effort required.
Also, I'm skeptical house prices will actually fall because of this change.
Sellers are clear winners here, they will likely save most of that buyer's commission. Buying power is simply reduced by that buyer commission. Unless it's a heavy buyer market, most sellers ain't gonna negotiate due to this lawsuit.
@@delayedgratification581 Not that simple. The market is driven by what Buyer's can afford for monthly payment plus savings for down payment & closing costs. Just became way harder for Buyers. The 2-3% difference in purchase price, even if that happens, would be a minor difference to their monthly, but would take months, even a year for some to save up.
Lets talk about the elephant in the room that realtors love to avoid. Why their commission pay is so high for the little work involved? Especially after 2020 when homes often sold themselves. Commission costs are stealing the equity of the seller. Now buyers are supposed to afford to pay? Real estate agent is a scam overpaid industry, and they are rarely honest people in my experience...
Wouldn't it be best just to look for homes yourself and talk to the selling agent and call it good?
The selling agent won’t represent you and they were getting both sides
1. Don’t sign anything you don’t read.
2. Don’t sign anything you don’t agree to or is not in your best interest.
3. Always negotiate a contract.
What is happening here is to the benefit of the buyer, no one else. For the longest time, the buyer has been left out of the information and due to that lack of information has been at a disadvantage. The truth is for people who are lazy, they are going to continue to get taken advantage of by real estate agents. If you take the time and put in the work, you will come out on top.
If an agent isn’t willing to modify the contract so that it is in your interest as well, walk and find one that will.
I see a lot more effort needing to come from real estate agents in the future when it comes to negotiating in the best interest of their clients and not just trying to sell solely for the commissions.
Knowledge is NEVER going to hurt you. Your ambivalence will.
By stating “ I charge x commission”. Is not negotiating ! It’s all filled into the contract pre filled out . We notice the wording AFTER we sign and the agent has left the property . Thats the problem .
"Commission was always negotiable"
NAR lawsuit addressed this specifically and how "negotiable" it really was. C'mon man.
Needs to go the way like auto industry for mechanics. Flat rate fees for services like marketing and than commission cap off at 3%, when sale is final.
There us no marketing really. They take 300 dollars worth of photos and then put on MLS. Buyers are using internet so if there, buyers will be exposed to it. List agents are not needed anymore, either. Just access to MLS or similar which I believe will eventually happen. Sale by owner will become far more common.
Maybe I'm missing your point. If you insist on a "deep discount" to cover the cost of commission, the buyer still has to cough up that cash to pay for your commission. In a hot seller's market like it is in most parts of the country, insisting on a discount is a good way to lose the deal for your clients. It seems like the only people who against the new rules are agents. Personally, I think it will still be a very flawed system but at least its heading in the right direction.
Javier's delulu on the deep discount bullshit lol as seller, I say fuck no.
For sale by owner directly a single family home
15 min away from downtown orlando
look at zillow FSBO Hamlet Dr Maitland, FL
title company takes care of everything and saves the buyer and the seller commission
I underwrite single-family homes and it's sad general contractors sometimes make less than the buyer seller realtor plus closing cost. The reason out housing market is fucked is because of realtors.
Yeah, not because of hedge funds and out of country investors buying up property? You must be a dense democrats, I assume!
Realtors should be paid by the hour, like everyone else. They should also be required to take more classes. Most of them just know how to fill in the paperwork. I have had some make it harder for me to buy or sell. Everything is online these days. You can hire an appraiser. In Texas the training can be done in a few weeks. That is a pretty low bar.
"Everyone else" isn't as greedy and selfish as you 😂😂
I can see beginning or part time buyer agents being able to sell their services for deep discounts as they are building up their business. Just like listing agents sometimes only charge 1% for their portion now buyer agents can drum up business by being discount real estate agents. They can do a flat fee of $2,000 just to get their business growing.
To be fair to both sides, they should be paid hourly. They do very little work.
This really didn't affect me at all during my last home purchase. I researched for buyer's agents specifically and found one who specialized in that. He had plenty of reviews and explained very clearly how he works and how its different than a typical buyer's agent. We then signed a contract that guaranteed him a certain amount of money. He was very clear that he will probably get all of that from the seller's agent, but if not, I owe the difference. I was completely impressed with this business model and it seemed like he was ahead of his time because this transaction happened 6 years ago. And there was no double dipping. Everything was clearly laid out and he had my side much more than the typical transaction. Isn't it all a part of a negotiation anyway? If you are buying something as expensive as a house, you should have a lot of questions and be hyper aware of everything going on and not depend on another person to have your best interests in mind.
My friend wants to buy my house. I don't want to use a real estate agent. Would we just talk to a title company?
Depends on what state you are in. My state, yes. You can contact a title company and they can offer a for sale by owner packet. You both fill it out and agree/sign. Present it to the title company and go from there. Some states, attorneys are required.
You can direct to attorney firm to do the closing. They can do everything for you for a fee lower than 3% or 6%. I bought a house and my attorneys only charge us 500 to each selle4 and buyer.
while I don't know how exactly this law works, I do know I once was a buyers agent and it sucks working for free for a maybe sale.
good luck to everyone with these new rules!
Can I just deal directly with seller 😮
Javier did a video on this like a year ago maybe. N it's not very doable
@@starsick7I know the video you're referencing bc I watched it recently. I sent him a msg a while back asking him for an updated one now that the rules are changing.
@@kaliconnect9014 you can deal with the seller directly but if they have a agent already listing their house they'll try to keep the buyers and seller commission as you're not a real estate agent... Sometimes you can get them to reduce the commission on the buyer's side if you don't have a real estate agent
@@starsick7 Huh it is doable if you can do your due diligence, reading the agreements, negotiating contingency and more . The first time i bought my home i paid $500 for a lawyer to go over the contract and put in contingency, then got inspection and per contingency got things resolved, the second time i did the same thing and no issues, this 3rd time I am using a realtor cos it is cheaper than a lawyer and the seller is paying the cost - the seller refused to remove the agent fee as a discount towards me, so i might as well use it.
I can sell just about anything without a middle man. Why can’t we do the same with a house? Because pApErWoRk? lol
The seller can try to list the price however much they want to sell for. It does not mean that the house will actually sell for that much. The buyer needing to finance their agent cost directly means that their direct purchasing power will be impacted (assuming no changes to the current mortgage structure), and the actual sales price of a home will be affected as a result.
For sale by owner directly a single family home
15 min away from downtown orlando
look at zillow FSBO Hamlet Dr Maitland, FL
title company takes care of everything and saves the buyer and the seller commission
The most natural way is that buyer should pay the buyers agent and the seller should pay the seller agent. In some other countries, it is between 1 and 2%
The only way it is fair is an hourly wage. If they spend 10 hours on you, why should they get $15k?
@@CroisMoi Right? The current system is a joke.
1 to 2% is all their services are worth.
@@CroisMoibecause it's not 10 hours, they often work 60+ hours a week and get less than 1 home sale a month
@@jtowensbyiii6018 because there is too many real state agents
I can see that the after expiration topic will be very important between the buyer and their agent. I can see some lawsuits coming big tine. Also, wonder if the seller offers paying both sides commission gets their house put on a list that gets moved first? Maybe a silent advantage known by brokers????
The idea is to reduce the cost for both parties. Realtors do very little these days. They need to be paid hourly. That is fair.
Most sellers are also buying so no they are not going to want to cover a buyers commission or lower the price when they also will have to pay their buyers agent a commission on a new house. At least under the old rules u paid the 6% on your sale but nothing on a new purchase.
They can buy without buyer agent.
I just want to comment that my realtor told me when I was selling that I had to offer at least 2.5% commission else no one will see my home. My agent has decades of experience too, so I believed his advice. I think many sellers are told this. I live in a very HCOL area.
Yep they told me that too
Seems to me that the rule change should open the door for more sales by the owner. You really only need a good title company, don't need a realtor.
Until this lawsui,t the Sellers paid that Buyer's agent out of the proceeds of the sale of the house AND that was included as part of the mortgage. So the Buyers were financing that commission over a 15 to 30 year mortgage. Now will mortgage companies allow Buyers to finance the commission in with the home purchase?
If the seller is paying out of the amount at close, what makes u think the buyer was financing any commission?
I came here to ask exactly the same thing. I think buyers were always paying the buyers agent, but that the amount was set by the seller and it was in the mortgage. The big thing now is that the buyer might need an extra 5-10-15K in cash to buy.
Will you have to start paying to attend an open house?
Javier, the issue with this is who is going to bring a buyer to a home with $0 commission or vise versa with who wants to work with a buyer who “negotiates” a $0 commission. Extreme example obviously but kind of drives the point home.
Agents should be paid hourly. All they do is get the keys. Most of them, anyway.
I think with the change, the commission will not be listed on the MLS, so the buyer’s agent will not know in advance that the seller is paying $0 in commission. Also, if the realtor has the best interest of their client in mind, they will take their buyer to see the house if their buyer requested as much.
think we need a flat fees, seller offers a commission it is discussed after we look at the house and I want to make a offer or opt pay the agt a hourly wage to get ride of the time wasters
I personally never really saw the value in agents anyway. I think this is a great change
a good one can really help you negotiate the deal through. Probably better off paying a Real Estate lawyer in retrospect for the kind of money we're paying those RE Agent leeches.
IKR, IF I ever sell my house, it will be FSBO, Have a real estate atty at the title company.
In CO we have strict disclosure laws....for realtors. A seller dosnt have to tell you if there are issues an inspector wouldn't know without a realtor.
Can't I just ask a company to put my house on the MLS? I can take pictures, and video. Plus I know my house and all it's features and I'm a pretty good negotiator.
@@smokeyj3983. That is what I did when I sold in 2009. I found someone to list on mls for a cheap price. She was still overpaid for her time. They should be paid hourly and keep timesheets.
How to buy a new home? Don't use a buyer agent. Go direct to the seller agent. Most agents don't do a good job helping you find a home anyways. Most times you gotta find it yourself then ask for showing. Buyers agent will eventually become non existence or buyers will just use the seller agent.
For sale by owner directly a single family home
15 min away from downtown orlando
look at zillow FSBO Hamlet Dr Maitland, FL
title company takes care of everything and saves the buyer and the seller commission
I have a question @Javier. My house was "listed" with an agent and I withdrew the listing on 6.23.24 (due to the summer time). On 6.22 (the day before I withdrew the listing) I had a showing. Nothing happened from the showing though. So my question is this....If the agent that "showed" my house on 6.22 would later come to ME with a contract, does my listing agent (who no longer has the listing) deserve a commission. I can't find anything on that. The contract I signed on lines 59-61 doesn't say anything about the topic. TY
It never made any sense. The buyer should pay for the buyers agent and the seller should pay the sellers agent. Each is working for you. You shouldn’t have to pay for a service that wasn’t provided to you. If I am selling my house, my agent found someone for me just the same as the buyer had their agent help them.
It’s called seller agent only ever gets 3 percent now. Buyer agent will have to charge in the contract a flat fee like 2 grand. This is good. The contract will state and must state the actual fee up front for the buyer agent contract no matter what the house cost which is good. Real estate agents are the next travel agents. Going away.
Well how about if I sell my own house and then go to a title company to finish up with the paperwork? Would that save me a lot? In the old days they used to put a for sale sign and just drop a contract. But I realize there's a little bit more ball but still thousands of dollars for commissions it's a rip off
Javier, can you make a video about HELOC? I have a home in FL, but I live in MA, don't want to sell the house but instead going for a HELOC on my FL house to buy another one here in MA, it looks like no banks are allowing that right now, my credit score is 814. Could you please make a video about why that is be happening and what options do I have that don't include cash-out refinance and selling? I know that I am asking a lot, but I am out of resources right now!.
I don’t seen anything wrong with the value of the agent. However, how is it legal to never know how much the total price is and never get a break down of where my money is going! And then get a massive bill after the fact!
Can the buyer's agent commission be rolled into the mortgage ? Or will it be part of the closing costs/cash ?
When I bought my house, I looked at about 10 houses. The one I bought I found myself, driving around. My realtor was not worth 5 cents.
@@CroisMoi That's my plan as well most likely. I just wanted to know :)
@@CroisMoi finding the house is the easy part. Doing everything else is the hard part.
These real estate agents are really shady.
My question is (Javier might have already answered this) will the money we owe the agent be included into our hone loan? Or will we be taking out two different loans. Realistically idk how people will have 100k to pay on top of their down payment. Seems really ridiculous
Where did you get $100k from?
@AzElenee got my 20% down-payment and ~3% buyers agent fee mixed up. Still 15-30k that's not something people have leftover after a 20% down-payment. Know what I mean?
Likely buyer commission is a separate "loan", the way you put it. Them realtors prefer their money immediately, not in 30 years.
@@delayedgratification581 it's sickening where this is going honestly
One of the best thorough explanations of the new "rules" I have seen. 👍
This is how it should have always worked - the buyer pays their agent and the seller pays theirs. That’s the best way to ensure that all parties and their agents’ interests align. It’s also how it works practically everywhere else in the world.
Thanks for the video. Question: So, when this law takes effect does that mean that the seller does not pay the whole commission? Let's say that the commission is 6% in the past the seller would pay all of that but with the new law the buyer pays half of that, 3% and the seller pays 3% ??????????? Is that right?
I have a question wouldn’t it be easier to just use the listing agent and the listing agent can just get the fee that would make more sense to me just use the listing agent
And who does the listing agent represent in the price negotiations?
@@dondgc2298They are just the go between.
When is it going into effect in CALIFORNIA??
Am I missing something here! I thought the lawsuit had do with the buyer's agent not showing homes to the consumers if they found out that the sellers were offering zero or less than what the buyer's agent was willing to take on to show the home! So they remedy it by removing it off the MLS website! How does that help the buyers if all the buyers agent had to do was ask the selling agent what percent if anything are they offering then he/she knows what their potential commission will be! Now if they are saying that the buyer's agent won't know what the commission will be from the selling agent until the home sells then that would be fair! Another thing that has my attention is if I the buyer goes in and negotiates directly with the selling agent and the owners are offering say one to three percent to the buyers agent which would be me wouldn't and shouldn't I get that commision since I took on the role as the buying agent? I reviewed another video like this where the selling agent stated that when you negotiate a price with the buying agent and for example the buyers agent and I have an agreement of 2.5% and the owners are offering 3% then that .05% is supposed to go to the buyer and vice versa, if they were only offering 2% then I would be on the hook for the .05%! That's why this video is confusing! If the buyers agent can obtain that information from the selling agent then the buyer has nothing to negotiate with other than sticking to certain price point that may enrich the agent more depending on the sellers agent!
What about the VA, who pays the buyer agent with a VA loan?
What will happen is buyer's agent commission will probably fall under the umbrella of seller concessions. Agreement to keep the current price or raise the buying price so seller pays the buyer's agent and the buyer's agent fee is effectively wrapped into the mortgage.
Does this new real estate commission applies to commercial real estate transactions too? Please let me know. Thanks.
Skip the realtors. Paperwork can be done by attorney. Much cheaper. Homes will more likely go by owner if buyers just refuse. If you have to, do a house by house contract after learning if the seller is offering any towards it. Agents can no longer expect an exclusive contract nor a time frame. Buyers should not be tricked into carrying all the risk if the seller is not paying. Buyer agents are being ridiculous thinking buyer agent value is worth a percent.
You really think it will be cheaper with attorneys? If you think that, then you will be fooling yourself! Lol
@@justcallmebrian793 just did it. Under 200 for the paperwork complete!
@@justcallmebrian793 just did it. Bill was just under 200!
@@justcallmebrian793, It's not a criminal case lol! It's a contracts case and yes attorneys who do this for a living charge between $500-$2000 still cheaper than giving up $10,000 plus for a commision! The bottom line is if the owner and buyer got together and hired a real estate attorney both the owner and buyer would save tens of thousands of dollars by cutting out the agents! Half the battle is agreeing to a price then conducting the standard inspections and appraisals! Let the attorney file the proper paperwork for the title and home insurance/escrow account!
Enjoy the job search Javier. Love how he says you will have to worry about this haha we’ll see who worries about it
But why is there an agreement presented already anyway given this new process didn't take effect yet?
@javier who will buyers go to for filling out the contract? Attorneys may take advantage of the situation and listing agents will find a way to capitalize on it as well.
How would an Atty take advantage of the situation?
I never thought the list price of a house included the commission. The list price should be what other comparable homes in the area sold for. Because the seller has to then give 4-6% of that to the agents has nothing to do with the house actually being worth 6% less than asking. That makes no sense.
For sale by owner directly a single family home
15 min away from downtown orlando
look at zillow FSBO Hamlet Dr Maitland, FL
title company takes care of everything and saves the buyer and the seller commission
Initially there will be chaos associated with this change but in the long run the change will be for the good by more closely aligning the interests of buyers and their agents and by raising the level of professionalism among buyers’ agents.
What was the purpose for the change?
Greedy sellers lol
So the seller can pocket the 3% instead of decreasing the price of their home 3%
Before this change, sellers were required to offer compensation to a buyer’s agent in order to advertise a home on MLS. Now they are no longer required to. Now the seller can choose whether to offer that or not. Things might not change or how much buyers pay their agents could go down. It was already fishy that the buyer's agent was paid on commission on the sale price of the house. In order to actually be in the best interest of the buyer they needed to help negotiate the price down. But that means the buyer's agent is working to lower what they get paid. That is called a conflict of interest.
@@JoelTheEconomistI mean conflict of interest we are talking about hundreds of dollars….. if my agent hurts for hundreds of dollars I don’t want them as my agent!
@@JrJr-y6g True, but you probably will never know one way or the other. I am not saying realtors do not try their hardest, but buying homes does put them in a conflict of interest using a commission as compensation. No matter how small, it is still a conflict. Also, that hundreds easily turns into thousands over the course of 20 homes. I think one of the reasons for this change was because agents were directing buyers to homes that had higher percentages for the buyer's agent. In the end, your probably right, since the gains from being dishonest are so small, it might not happen very often.
Can you ask in the buyer agent agreement to only see homes in which the seller is paying the commission the buyer agent charges?
If you find your house online yourself, as it has been done since 2005 at least, why do you need to pay an agent a chunk of money? In the old days they pulled listings and you had no access to the info. These days it is all online.
Will this have any impact on buyers using a VA loan? I’m in the process of closing on my first home with the VA loan and from what I understand they require sellers to pay buyer commission. Will this change? If not, could this result in fewer sellers accepting VA?
I've already had to do this. The agent I picked ended up being shitty. I'm glad i didn't sell my house though. It worked out.
thankfully i purchased my 6th home before the new year and just bought down the rate
The buyer always pays everything 🤣
We moved in zero money down, seller paid closing costs/the agent. All we paid for were the Appraisal, Inspection and standard Lender fees. We got money back at closing and from a Post Closing Audit 3 years ago.
When we found the house we bought, since properties were being bought as soon as they listed due to the low rates, I hurried up and emailed the agent and told her DON'T SELL THAT HOUSE! She emailed back within an hour saying CALL ME! So I did, we did the contract over the phone, she presented it to the sellers, they accepted since we gave them their asking price, they gave their tenants a 30 day notice to move ALL WITHIN 4 HOURS. We closed in mid April 21, been here ever since
@@winniethepoohandeeyore2 no you paid for closing cost and the agent... They just reduced the price to make you feel like they "paid" for closing costs.
@@xephael3485 We gave them their full asking price, Seller paid for closing costs, the agent
@xephael3485 WE GAVE THEM THEIR FULL ASKING PRICE, THEY PAID CLOSING/REALTOR FEES.
@@winniethepoohandeeyore2then you don’t understand the game!
The settlement is why as buyers we wanted to make sure to go under escrow before the change took place.
Always great information! Thanks for all you do!
People have got to educate themselves. I purchased a house 2 months ago and the agent representing me brought this new law up and tried to get me to sign paperwork saying I would pay him commission. I was aware of this law which was not yet in effect and refused to sign. He would have received commission from me and the seller! Smh
I’ve seen buyers agents drive all over the place with buyers who have no interest in buying a house. It sounds like it protects buyers agents. I’ve also seen it where buyer’s agent work with a client and then they go with another agent to buy. The agreement is not new it’s not customary. Real buyers won’t mind signing.
hey javi or anyone who knows the answer ....... what happens if i have an offered accepted as a buyer and doesnt closed until after the new law? do i have to pay for my agent or would they respect that we submitted the offer before all the new rules come in play? thanks
It's a dated contract. Think about it.
For sale by owner directly a single family home
15 min away from downtown orlando
look at zillow FSBO Hamlet Dr Maitland, FL
title company takes care of everything and saves the buyer and the seller commission
the commission is too high, example a home in California 1.5 -3 Mil $
First and foremost; "Buyer agent said I would owe him x amount of dollars." That is a RED flag! As you stated the fee is up for grabs as in negations. I'll tell you what if I speak with an agent that expects 1.5% commission on a 450K home, they are nuts. I feel there will be lots of agents scrambling for every scrap they can get and I'll put an ad up for $1000.00 for a buyers agent. My money says, there will be lots of takers. Time will tell.
Ill either buy by owner or just but from the agent that has the listing.
Ive found all my homes anyways!
The value of a realtor has to do with your background. My husband is in banking, understands contracts and also knows attorneys who can write contracts. I would do a flat fee to a realtor to help me but I don’t need their help as much as a person who doesn’t know what is going on. I think you will see more fsbo from this and move away from the traditional environment/ecosystem.
this is really simple. lets frame it in another way most people are more familiar with.
you can go to court without a attorney and save yourself some money by representing yourself. people do it everyday. the qeustion is, do you really want to do that. especially considering you maybe negotiating a purchase contract on a asset worth hundreds of thousands of dollars
Javier, will this affect those who decide to build their home?
Got to Home Depot or Lowe’s, buy a For Sale by Owner sign and save yourself all the headaches. I’ve done it, and it was quite simple.
Hi! What steps did you do for sale by owner? Please, respond to me! Thank you!
Did you just hire a Title Company to proceed with the sale of your home? Are they the ones that do all the paperwork?
The buy did. I had a Real State Attorney for paperwork.