And do you believe she will give you the same level of service at 4%, knowing she will give half to the BA, as she would at 6%? In other words, top photographer, Video Walk-thru, 3D brochures/Flyers, etc.?
@@creativeprofessional5248 An offer at asking as accepted within 24 hours of listing so yeah, it worked out. They were putting ths sign out on the yard when we were accepting the offer.
As a licensed Home Inspector in Florida, I have seen a significant drop in buyer's agent referrals. I maintain contact with all the agents that refer to my business and word is buyers are having the listing agent write the offer. Most are not comfortable signing an exclusive buyer's agreement
Great content Jennifer. I believe this will hurt sellers overall as some buyers will push back at having the buyer agent expect commission from the buyer if the seller refuses to pay. In turn, the house will not be seen as much, so it potentially curbs the amount that may be offered. In an already tight market with high rates and low inventory, it makes things more difficult...hardly a win for either side. I love your point about using different outlets than the MLS to state the commission.
Buyers already have to pay down payment, closing costs, inspections, appraisals, etc. now they may be expected to pay for their agent’s fee or commission
Buyers have always paid for both agent commissions as its built into the house sales price. Buyer just do not usually pay out of pocket as they use the mortgage to pay. It was the hope of the law suite to change the Real Estate Industry behavior, but it sounds like they have not. The object was to provide buyers better and more appropriate pricing options seen in most of the service industry such as an hourly rate or fix rate based on package of services delivered. It baffles the mind that for the same work an agent can make 2, 3, 4 and more time the amount of $$ for the same work. And in the end its the buyers who pay.
I am in favor of a seller paying JUST the selling agent's commission, and the buyer paying JUST the buying agent's commission, and an agreed upon percentage in advance, up front, as being used as a pragmatic template to follow, without worrying about any surprises in the transaction. Is this suggestion oversimplifying the matter? Thoughts?
There’s not many buyers in America that can afford a down payment, closing cost, and a real estate agents commission. It’s not realistic on a grand scale. It would lead to a situation where just rich people have representation.
@@V.ALFONSO Yes, I know that is negotiable. And so as a buyer, I want to negotiate NOT paying commission to a selling agent, who has in truth not done anything for the buyer. Seller pays the selling agent. Buyer pays the buying agent. Bills from Washington hardly expected do anything to help working people. I do not put much faith or stock in to them to give a proper shit about me or anyone else not well off. I do not expect the lawsuit to change the situation.
Talked to a builders preferred lender the other day for shits and giggles during our parade of homes, and asked them where their rates were standing for VA that day (3 days ago), and they told me 7.5%!!! I was like “oh hell. That seems really high!” They were acting like that was the standard rate and normal. Still planning on coming to y’all end of May/June to apply.
I think it might be hard for buyers and sellers to work with a potential bifurcation in home pricing due to how the commission gets paid. Maybe 2-6% won't shake things up too much but what would it do to comps? All I can say is that, if I am paying buyer's real estate agent commission out of pocket as a buyer, the home price had better be lower, and with home prices and negotiations hard enough to track as it is, trying to flesh out that price delta could cause a lot of frustration between me and the seller. I probably need to understand this better but that's my knee-jerk reaction.
The 2% or 3% does not ALL go to the buyer’s agent! Agents have to work with Brokers. There is a commission split between agents and brokers 50/50, 60/40… or whatever their agreements. Also, there are many fees associated with the sale: transaction fee, resource fees, office fees,…. This class action lawsuit is not about consumers; buyers or sellers. In my opinion it’s about breaking NAR!
OK, lets get very clear here. Buyers have always paid for both agents commissions as it built into the cost of the house price. If a buyer buys a house for $500k and the commission was 6% then the buyer pays the FULL $500k and the seller receives $470k and the buyer and seller agents split the $30k. If the commission decreases, great but the buyer will still pay for both Agents. This is the problem and I suspect the NAR settlement agreement will not gain court approval as NAR is just putting a different color lipstick on the same pig.
why don't we just treat all sales like we do market places? you buy the house ONLY from the lister? wouldn't that solve everything? instead of making us pick a real estate agent and ONLY deal with them? Why is that even a thing? it makes no sense. I mean it is easier for someone to say I want to deal with ONE person, but that's our selfishness as buyers. I wonder how other countries do it, and is it better or worse?
There are so many hidden issues that by using a RE Broker, you can avoid. In many cases RE Brokers save you money and heart ache if the Seller doesn't disclose issues that can be costly. I've witnessed many homeowners avoiding 'doing it right the first time', causing a lot of headache and loss of value/money to fix or credit on the sale when trying to sell years down the road.
If commissions are to be paid, then why can't the percentage come out of the profit the seller realizes? If the seller makes money then the agents will as well. This would help the high dollar home sellers.
@@JenniferBeeston i was under the impression the commission was based on the sales price. The seller might ask for say 500k, but after fees and expenses wouldn't walk away with that much in his or her pocket, right?
Yeah so if the house is 500k and they have a 400k loan and they pay the realtors 5% the seller is netting 75k before they pay their side of closing etc
I told my listing agent I would only hire her for 4% as opposed to the 6% she was asking, she took it without hesitation didn't even try to negotiate.
And do you believe she will give you the same level of service at 4%, knowing she will give half to the BA, as she would at 6%? In other words, top photographer, Video Walk-thru, 3D brochures/Flyers, etc.?
@@creativeprofessional5248 An offer at asking as accepted within 24 hours of listing so yeah, it worked out. They were putting ths sign out on the yard when we were accepting the offer.
Gosh I’m going VA. I hope I don’t need to pay more.. can’t even find a decently priced house yet!
As a licensed Home Inspector in Florida, I have seen a significant drop in buyer's agent referrals. I maintain contact with all the agents that refer to my business and word is buyers are having the listing agent write the offer. Most are not comfortable signing an exclusive buyer's agreement
Interesting. What part of Florida are you in?
Great content Jennifer. I believe this will hurt sellers overall as some buyers will push back at having the buyer agent expect commission from the buyer if the seller refuses to pay. In turn, the house will not be seen as much, so it potentially curbs the amount that may be offered. In an already tight market with high rates and low inventory, it makes things more difficult...hardly a win for either side. I love your point about using different outlets than the MLS to state the commission.
Buyers already have to pay down payment, closing costs, inspections, appraisals, etc. now they may be expected to pay for their agent’s fee or commission
Buyers have always paid for both agent commissions as its built into the house sales price. Buyer just do not usually pay out of pocket as they use the mortgage to pay. It was the hope of the law suite to change the Real Estate Industry behavior, but it sounds like they have not. The object was to provide buyers better and more appropriate pricing options seen in most of the service industry such as an hourly rate or fix rate based on package of services delivered. It baffles the mind that for the same work an agent can make 2, 3, 4 and more time the amount of $$ for the same work. And in the end its the buyers who pay.
As a Seller, I feel like I am being ripoff by the listing agent asking for the buyer's fee. >.
I am in favor of a seller paying JUST the selling agent's commission, and the buyer paying JUST the buying agent's commission, and an agreed upon percentage in advance, up front, as being used as a pragmatic template to follow, without worrying about any surprises in the transaction. Is this suggestion oversimplifying the matter? Thoughts?
There’s not many buyers in America that can afford a down payment, closing cost, and a real estate agents commission. It’s not realistic on a grand scale. It would lead to a situation where just rich people have representation.
From the commission you pay us. We give a percentage to the buyer's agent from there! Commissions have always been negotiable.
@@V.ALFONSO Yes, I know that is negotiable. And so as a buyer, I want to negotiate NOT paying commission to a selling agent, who has in truth not done anything for the buyer. Seller pays the selling agent. Buyer pays the buying agent.
Bills from Washington hardly expected do anything to help working people. I do not put much faith or stock in to them to give a proper shit about me or anyone else not well off. I do not expect the lawsuit to change the situation.
Talked to a builders preferred lender the other day for shits and giggles during our parade of homes, and asked them where their rates were standing for VA that day (3 days ago), and they told me 7.5%!!! I was like “oh hell. That seems really high!” They were acting like that was the standard rate and normal.
Still planning on coming to y’all end of May/June to apply.
Looking forward to it!:)
I think it might be hard for buyers and sellers to work with a potential bifurcation in home pricing due to how the commission gets paid. Maybe 2-6% won't shake things up too much but what would it do to comps? All I can say is that, if I am paying buyer's real estate agent commission out of pocket as a buyer, the home price had better be lower, and with home prices and negotiations hard enough to track as it is, trying to flesh out that price delta could cause a lot of frustration between me and the seller. I probably need to understand this better but that's my knee-jerk reaction.
I think worst case it just becomes another point of negotiation.
The 2% or 3% does not ALL go to the buyer’s agent! Agents have to work with Brokers. There is a commission split between agents and brokers 50/50, 60/40… or whatever their agreements. Also, there are many fees associated with the sale: transaction fee, resource fees, office fees,…. This class action lawsuit is not about consumers; buyers or sellers. In my opinion it’s about breaking NAR!
Thank you been waiting to hear your take !
To clarify, if you are using a VA loan ...the VA buyer cannot pay the commission for their buyer's agent?
The VA buyer cannot pay a Realtor commission under any circumstance. The realtor could negotiate for the seller to pay but the buyer 100% cannot
OK, lets get very clear here. Buyers have always paid for both agents commissions as it built into the cost of the house price. If a buyer buys a house for $500k and the commission was 6% then the buyer pays the FULL $500k and the seller receives $470k and the buyer and seller agents split the $30k. If the commission decreases, great but the buyer will still pay for both Agents. This is the problem and I suspect the NAR settlement agreement will not gain court approval as NAR is just putting a different color lipstick on the same pig.
That's correct. But it's not the NAR fault, who ever started the lawsuit agreed and settled. For some it's a big mess for others not so much.
why don't we just treat all sales like we do market places? you buy the house ONLY from the lister? wouldn't that solve everything? instead of making us pick a real estate agent and ONLY deal with them? Why is that even a thing? it makes no sense. I mean it is easier for someone to say I want to deal with ONE person, but that's our selfishness as buyers. I wonder how other countries do it, and is it better or worse?
There are so many hidden issues that by using a RE Broker, you can avoid. In many cases RE Brokers save you money and heart ache if the Seller doesn't disclose issues that can be costly. I've witnessed many homeowners avoiding 'doing it right the first time', causing a lot of headache and loss of value/money to fix or credit on the sale when trying to sell years down the road.
Great take
If commissions are to be paid, then why can't the percentage come out of the profit the seller realizes? If the seller makes money then the agents will as well. This would help the high dollar home sellers.
That is currently how it’s done
@@JenniferBeeston i was under the impression the commission was based on the sales price. The seller might ask for say 500k, but after fees and expenses wouldn't walk away with that much in his or her pocket, right?
Also..if you still have a mortgage on the property, then you will make even less than your asking price
Yeah so if the house is 500k and they have a 400k loan and they pay the realtors 5% the seller is netting 75k before they pay their side of closing etc
@@JenniferBeeston Correct. So in my scenario the commission would come from the 100k not the 500k sales price. Much cheaper for the seller.