This us a grift to get your personal information. If you are not in her area, the odds are EXCELLENT that she will sell your contact information to random agents in your area. Fear mongering folks are quirky that way
That's why I filled out the form with a fake name fake email and fake everything else. Because I didn't sign self anybody calls I am absolutely still on the do not call list. I'll tell you what though if I were looking for a real estate agent across the country I would use them because the information in these videos is good. By the way check out Katie's Adam's apple. Kind of looks to me like Katie could have been Kevin, so maybe Katie is a persona. When you check out the legal docs on this site and elsewhere terror lux is actually another company owned to buy it looks like 2 men and Katie. And again I'm telling you if I were gonna buy a house across the country I would absolutely take their reference because yeah they're selling it probably to others it would call you but they would be others from a group you're interested in connecting with, one would hope. It's on the other hand a bunch of private equity the telemarketers are on the line calling you to bite the house that you're currently owning well what a pain in the neck like that would be. That would create seriously bad will and I would hope people who did that would be entering it in the comments of her videos.@LookyLooRealEstate
Please pardon the voice to text errors. By the way I had to delete the original comment immediately because if I was correcting the voice to text errors, it would not let me repost it and received repeated comment failsed to post, Thus I deleted it and reposted the corrected one however it is also filled with voice to text errors if you read the comment allowed you can sound it out.
When I Sold my house in 2009... I got a low ball offer ... my agent pushed me to accept saying the first offer is usually the best... at the closing I found that the buyer and the agent were friends... I felt completely ripped off and like the agent was not representing me like he should have
There are videos showing how listing agents are converted into working for the buyer. Videos record actual phone conversations. The buyer finds a house they might want to buy. They call the listing agent directly and tell them about the house they're interested in and say "I don't have an agent." Listing agent thinks "cool, double commission". Then the buyer says "I flip homes, do you have other houses I might be interested in?" Ding, ding, ding, winner, winner chicken dinner - future commissions - the listing agent is "Oh yeah, I can totally help you with that." The buyer asks about the original house he called about. Listing agent tells buyer everything the seller told the listing agent in confidence. "Yeah, they need to sell. They're worried about... Their bottom price is... Yeah I can totally get the price down." When buyer makes the low offer their listing agent who they think is on their side pushes them to accept. Investors have been doing this for decades. Estimate is about 75% of listing agents are quick to sell out their seller. There is nothing illegal about the investor asking. What the listing agent is doing is fraud against their seller, but good luck proving that. The deal is the only job a listing agent has is to get a seller to sign a contract. They don't have to do anything else, and they do almost nothing else. Pay for pics, a sign, a lockbox which in total is about $200-500. Then they just sit back. This is really on the sellers for being so dumb to give a listing agent 3% of their house, which can be 10-80% of the seller's actual profit. Super easy to list a house yourself.
what constitute a low ball ? say it out loud, what was your listing, and what was the offer? cause in 2009 was kind in the middle of the real estate recession. Another thing, you're saying that this was an example of dual agency? Your agent, perhaps got his friend (the buyer) to made the offer? Or perhaps your Agent did you a favor, and found a buyer to buy your house, before it went into foreclosure? I'm been the devil advocate. Their is missing information, and if you think you got scam, then is going to hunt you down.
It is true that the first offer is usually your best offer. Typically, the longer your home sits on the market, the less a buyer will offer. Just because your agent was friends with the buyer, doesn't mean they did anything unethical. What was going on with other homes in your area that sold at that time? What was the typical sell to list ratio at that time? What is a lowball offer to you? How many days was your home on the market compared to other homes? How much interest were you receiving? Did you list it too high? Why didn't you suggest making a counter offer? What were the comps selling for? You should have addressed this at the time of the transaction.
You may think that you saved a lot of money….but, 0:09 will you ever know how much more money you would have made by having your house listed? Saving a penny to loose thousands, in my 40 years in real estate I have seen “happy” by-owner sellers whom have lost plenty of cash and time.!
@@yourvette If someone does their homework, they may not lose anything. My realtor wanted to list my house for $40k less than I wanted to and I refused because his comps were all to houses that had no updates done like furnace, windows, doors, kitchen, etc. Ended up taking $10k off list price so I made $30k by sticking to my guns. Agent had to work a little harder which he did not want to do but he wasn't going to be the listing agent if he didn't play nice. Remember, when an agent gets a 3% commission, the selling agents only give up $300 for every $10k off the price. Buyers agents want higher prices because they make more. Too many conflicts.
I had an agent tell me that it was against THEIR policy for me to represent myself, I have my own license… I have NEVER heard of this either. I think I’ll call the board tomorrow.
When I bought my home three years ago, the sellers agent told her that she would get a bidding war. It never happened and because of that if I wanted the home I had to pay 5K more, and they knew that we needed to get into this home because my husband needed to get back into chemotherapy...both the sellers agent and our agent were friends.....evil
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
@@williamDonaldson432 this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
IMPORTANT: Always change your sellers contract to read “commission is earned upon closing”, instead of the standard: “ upon bringing a valid offer”. Valid offers still fall through and leave you owing a full commission. Check with your own lawyer for the exact wording so you are protected. It may be rare that a realtor will demand an unearned commission that way but it does happen. You’re welcome!
But…..it happens. Someone on Reddit was just asking for advice. They signed a listing agreement but ended up not selling their home. Come to find out the listing agent had in the contract they would still receive the 3% plus all expenses. Read and reread your contract and trust no one. Many of these realtors. the same ones that were in it just for the money, are figuring out ways to “get their” money. So I don’t think it’s lame. It raises my eye brow towards anyone who thinks this is lame.
Omg, this is something most sellers don't know or don't realize or aren't aware of.....On the flip side, it could happen that a realtor brings a potential buyer & no offer is made. Suppose that same seller-agent contract ends & the seller decides to sell "ByOwner"....and one of the former clients of the real estate agent now sees the "For Sale By Owner" sign & makes an offer & a sale takes place. Could a real estate agent theoretically go after the seller for a commission if their original contract said " "upon bringing a valid offer"?
@ I believe under a standard contract before the NAR settlement a realtor was protected for a period of time like, 60 days after the contract ends if someone they showed the house to purchased it after the contract expired. Don’t know about the new buyer seller contract verbiage. Realtors are finding creative ways to get their money so every word of the contract should be read as with any contract. I would like to see a flat fee (not percentage) for a sale of a house. Such as $1500 of a houses closes. In NO way do I think a realtor should get 3-6 percent of a houses equity. You don’t add that cost over and above to the appraised value of your house. It normally comes out of the equity you gained from maintaining and improving your homes. The reasoning a great realtor is worth 5-6% or even 3% now of the price of a home is just ridiculous. I know many will disagree but scheduling a home inspection, appraisal and getting a closing agent that does most of the work isn’t worth 3-6% to a realtor. If a “great” realtor can influence an appraiser or home to inspector to get a good report….than you need a different appraiser and/or inspector. Someone is still paying in addition for those services which also total thousands of dollars. In short I do see value in a good honest realtor but not 6%. And……if they are good honest realtors you would know all these little caveats from them without scrutinizing every word of a contract. (And there are good honest realtors out there)
About 15 years ago my mom was approached by her boyfriend’s coworker about buying what was my grandmas house. We talked and he said he’d have his realtor contact me. I spoke to him and when he sent the paperwork, first red flag was my mom’s name was spelled wrong,I had emailed the info so copy paste but he didn’t do that. 2nd red flag was he said he’d put $350k for the house price but we’d negotiate, that was at least $200k less than other comparable homes in the area. 3rd red flag was he put 7% commission and he was the only agent. I was like, you don’t get more than a regular agent, you’re basically doing paperwork so why would I pay you more? He thought we were stupid women and we’d just go along with whatever. I told my mom, don’t sell to him. The realtor is trying to scam you. She pulled out and she waited a few years and got more than twice what that guy offered. I also had a client who is a realtor I met at work sell her home. Id known him for a few years and he never gave me a creepy vibe and it worked out well.
I have had countless bad experiences with realtors that misrepresented using their ability to finesse and took advantage of my lack of knowledge over the years - of buying houses in my life I have learned so much and I am amazed that this profession has so many scoundrels in it I could give a three hour seminar on all the tricks and manipulations that realtors do and if I ever find a venue to do so for Pay I would love to I believe the new ruling is only gonna open up more room for Malfeasance!
Any field that is supported by commissions is open to scoundrels taking advantage of the less knowledgeable. “Do your due diligence “ is a weaponized defense statement.
It's not just when agents are working. I sold a house to an agent. During escrow they asked if they could start moving in before close. I said sure, no problem, just sign a 2 week lease for $600 (good deal) and you can have the keys. They said never mind. Few days later I check the property and guess who's moving in? Because he was an agent he had access to the lock box and took the key. I called his broker to tell him what his agent was doing. His reply was "Go f*&^ yourself" and hung up. I sent the boys over with a truck and removed all the property moved in. It wasn't a lot of stuff. Buyer never even asked for the return because what can he do? Call the police and tell them "I broke in into this house, moved my stuff in and the owner stole it all." This was one of the largest brokerages in Phoenix. I stopped using lockboxes after that. Serious buyers will wait for me to show up to let them in or make a appointment. The only "buyers" you lose aren't actually interested. The agents are just using your house to educate their buyer or just lookers.
All of this would be solved it agents just charged a flat fee. I've never understood why fees are based on percentages. The same pictures and videos need to be taken, the same inspections done, the same paperwork filled out, the same everything, no matter if the home is selling for $300K or $2M. A $2M house does not require twice the amount of work to sell as a $1M house, yet the agents earn twice as much. Totally illogical, and the percentage system leads to all kinds of shady practices as you so accurately outlined here (as well as some you didn't mention).
I hear what you are saying & agree. However, some houses definitely are harder to sell than others. (I am not in real estate). You could have an abandoned property, or one that needs a lot of upgrades or the house is in a bad location. A previous house of mine took 5 years to sell. It was a nightmare for us. The house was in beautiful condition but it was on an intersection. When we purchased the house, the area was quiet & the intersection was not a big deal. Time went on & the area built up rapidly. Accidents started to happen frequently & a light was put in. The house was priced right all along, but the location was not good. We were young & dumb when we purchased the house & it was a new home. Anyone with children refused to look at the house. Our buyers had to be an adult couple or someone with older children or perhaps a large family that needed space quickly. Finally, a couple with high school boys purchased the house. At this point, we sold it by owner but did have 3 different real estate agents over the 3 years. They all were good & all agreed the traffic light intersection was the only holdup. I learned my lesson that location, location, location is do important. You can fix up a house but you cannot change the location. I have been happily living on 3.5 acres at the end of a quiet cul-de-sac for the past 27 years. Another problem is a very nice house in area that doesn't call got that kind of house. Like putting a million dollar home in a $300k neighborhood. That is going to be a difficult sale.
When I sell my home, my agent found someone to buy my home and he refused to listed my home higher than what we wanted. I didn’t know he was a dual agent and he was for the other side and not care about us. Until we went in to sign. I don’t like agents. They are sneaky and untrustworthy!! That’s why this time if I was to buy or sell. I will educate myself better. Thank you for sharing this information with us. Please share more.
How / Where did you market your property? Had my home for sale twice last year (2 different agents). Vetted them both but not impressed with their performance.
@DN-rg9nj word of mouth. I had my attorney draw up the papers before I let anyone look at it. The attorney took care of all the paperwork. I also hired the title company and they did the paperwork. The buyers got approved from thier bank and the bank and underwriters were in touch with the title company. I did zero marketing. For sale by owner in front window was my marketing. I think it was like 3 dollars. Much cheaper than the traditional route.
Yes. Now we are educated! Thank you Katie. I have listened to alot of videos on current RE changes and This IS the best explanation ever. A keeper as I become a seller soon
I lost my job, no family wanted to take me in. Got angry, moved to another city became homeless, got a job as security officer, I was able to invest in forex making $278k.Bought my first house last week. I pray anyone reading this will be successful
I work at a restaurant here in Houston Texas. Things have been really difficult as I'm a single mom and trying my best to pay bills and take care of my daughters.
I started pretty low investing in forex though with $5k thereabouts. The returns came massive. can't be more proud that I'm right now, and I have move in to my new home (ALVAREZ HARRY FLECTCHER) is a Blessing to my life
Wow 😲I know this Man mentioned here . Alvarez Harry is really good with and on his job. He has helped a couple of families and individuals' finances, I'm huge beneficiary of his platform too
Excellent Video! Thank you! Here in AZ State, the AZ Real Estate Board warns on their website for consumers to READ and UNDERSTAND all contracts and agreements before they sign! Also, in AZ state it is not a requirement to sign a buyer's agreement in order to view a home, but most agents are lying about this. Many of the buyer's agreements are also worded to make a buyer pay commission just for viewing a house, or if the house falls out of contract, for any reason. As well, the AZ listing agreement is extremely sneaky as it makes sellers liable to pay commission if their house fails to sell, simply if a party showed interest in the house (no offer or accepted offer needed). We listed our house FSBO after 3 different agents refused to modify that agreement so that our finances were protected. We lost all trust in the RE market, and will not use an agent to list or buy.
Agents can, and do, negotiate their pay up front. Any consumer can decide whether to hire or not hire anyone, anytime. There are no laws that the real estate profession is beholden to work for the anyone for free. We call that slavery. Do you go to work? If so, you need to walk in and demand a pay cut tomorrow. It is not fair that consumers are charged too much because your boss pays you way too much for what you do. Also, let's ask Miss Katie how many free transactions she completes every month. I am very interested to hear that number.
I don't believe it's a requirement to sign a buyer's agreement to view a property in any state, by virtue of the fact a "requirement" is not an "agreement". An agreement is a mutual consent. A requirement is something you have to do. Any agent who says "You have to sign" as a blanket statement is misrepresenting and may have repercussions on their license. However, since Real Estate Agents are Independent Contractors, as long as their Principal Broker concurs, they can say "I personally am unwilling to show a property to any Buyers who I am not under contract with. It is the most efficient and effective way for me to run my business. Just like the plumber, the gardener, the accountant, are paid for their time, I too must ensure that I am paid for my profession." If the potential Buyer doesn't agree, there is probably a new kid on the block who will show listings that the Buyer may or may not use that agent to buy. You would be shocked how many Buyers just use any agent who is available at a time convenient to them, to show a property with no loyalty.
I'm not against dual agency specially if I can get the home for the price I want. Some agents are more than willing to reduce their commission you just have to ask the realtor if you are the seller.
@@foyerfelin Unless the agent is a trusted friend or family member, your selling agent should only be working for you. The buyer's agent is legally bound to represent the best interests of the buyer. If your selling agent is willing to represent the buyer for free to get the deal done to earn his/her 3% seller's commission, then maybe I would agree. But that still means you only pay a maximum of 3% total to this agent. If the agent doesn't like this, I would find another agent.
I have never signed with a Real Estate Agent who was a Dual Agent. But if the condition was on contingency, or to buy on the condition of the sale of my house, this would be understandable.
10:20 "...not getting the showings." This is called "steering" and it is illegal in the US. But it is so common the agent in this video doesn't bat an eye telling you agents are doing this if sellers aren't offering a slice. Agents want to scare you into paying. That's called extortion. Also illegal in the US. There it is right in front of you on video and she isn't worried one bit. First we heard about the crap listing agents are doing. Now we see buyers are also getting ripped off by agents. This has been going on with FSBO properties for decades. A FSBO house might be perfect for a buyer, thousands under market, but buyer's agent will refuse to show the house. If buyer insists the agent will show the house and bad mouth the property from top to bottom. The amount of illegal things agents do is staggering. They pay off politicians via lobbying and campaign contributions in the 10s of millions to get protection from prosecution, regulation and new laws they don't like. Largest and oldest criminal organization in the US. And people still line up to give them a huge portion of their equity. Very impressive scam.
Not sure who explained the recent changes to you but you are incorrect, that isn't what she is saying. The compensation fields have been removed from the MLS systems completely. This is why the every buyer must now have their own buyer agency agreement in place PRIOR to seeing homes. The BUYER chooses if they want the buyer's agent to show them all homes regardless of how their buyer agreement gets paid, OR if the agent should just show the buyer the homes where the buyer is not responsible to pay for their buyer agency agreement. That's not steering, the buyer's control what they want to see. What Katie recommended is that the seller consider offering compensation so that the buyers' agency agreement cost to not stop a buyer from buying if they can't cover that newly added expense. Ultimately, what the seller wants is to sell their home. In reality, the sellers are benefiting the most because they are really making the buyer's pay for or negotiate with the buyer's agent instead of them.
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Grace Adams Cook for the last five years or so, and her returns have been pretty much amazing.
I appreciate you sharing this. When I looked up the woman you named and read through her credentials, it was obvious that she was a complete professional. I just need her to respond to the message I wrote her.
The NAR needs to make it clear that a buyer can self represent. Because many listing agents in Florida REQUIRE a signed contract to show tye home at all
Because that is the NAR rule for Realtors. They cannot open a single door without a signed Buyer’s Representative Agreement. Every Realtor in the U.S. has to operate under that new rule. If they don’t and they get caught the fine they have to pay is significant.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
I recently went to look at a listed house without an agent and the listing agent tried bullying me into signing her as my agent as a condition of looking at the property. Remax is the worst!
After considering the sell of my home I was ambivalent. After watching this video I am not considering sellling now. Too scary to think of being cheated or worse, the loss of my home.
I had two real estate agencies tell me yesterday....that they want 6%. I asked about the new law, and I was told "It isn't a new law, it's a rule, and we figure that if it's not broken don't fix it. SO THEY ARE STILL DEMANDING 6% NO NEGOTIATIONS This is with my photos, video, and I wrote the listing....so basically I would just be handing over a listing ready to go....and they still want 6% ....
So now you have to decide if it’s worth it to you. The goal of this video is to make sure you understand the situation. In your area the agents may still be demanding 3% otherwise you might not get the house sold. I don’t know the specific area. But you might want to look at an exp agent if you want a different conversation. I can give you a solid one in your area if you’d like.
Use a flatfee service....you can list and get it on the MLS for about $300, and just pay 2 or 2.5% or 3% to buyer's agent. Flatlist was the company we used. They were great!!! Honest contract, answered all my questions, sent me all the documents I needed....
The fact that most buyers can't afford to pay their agents is yet another sign homes are OVERPRICED. It's amazing the hoops being jumped through by every entity with even the slightest impact on real estate to keep the housing market propped up!
Not all - but too many agents are bottom feeders. Low barrier of entry. Just sold my house, but told my agent no double dipping if the buyer is unrepresented or if he found the buyer himself. Instead, we agreed on 4% if it was the latter. Otherwise, 5% (2.5% to each agent).
There's other scams. Investor show in videos how to call a listing agent and convert them to help low ball the seller. Investor says "I have no agent. You can represent me under the table and get the hold 5-6% commission. And say they're "looking for more properties, can the agent help with those too?" Now the listing agent is eager to help the buyer and the seller never knows. Totally legal for the investor to do this because they have no contract. Totally illegal for the agent, but hey, doing illegal stuff is everyday business for them.
Here I am wanting to sell my home and have a problem with agents asking so much for almost nothing. Considering trying myself, what have I got to lose?
Pretty much always have the discussion. It's hard to sometimes because it can become rather combative quickly but necessary. Always surprised how complicated we continually make straightforward processes.
We do not have this loophole in AZ anymore. All our contracts changed in August of this year. Also, it's my personal policy to not work as a dual agent. Not every agent is skeevy.
Kati. We fully interviewed an agent from Keller Williams and downloaded her materials. Two questions I hope you might address are: 1. She wanted at least a six month agreement for exclusive representation. I think that is excessive for both the time and the exclusive representation. Can I redline it out and make paper in ink changes and then ask her to sign first so she is the offeree. 2. She said she suggests a low market quote so she get more offers. I think that limits my upside too much. I would prefer doing my own analysis by calculating the average of the nearest ten homes for sale by adding the online ask price then adding the square feet. But dividing the two I can calculate the per square foot price for those ten nearest homes. Multiplying by my square foot house, I generate the reasonable asking price. She implied that she would not work as hard using that calculation because she wants a faster set of offers. How would you react to the that realtor? Am I greedy? Best, Robert
I’m a realtor here in Philadelphia and I would do a three month contract with an easy exit after 30 days if their homes not sold it for 30 days there’s something wrong with the way she’s marketing it or the price. However, I do agree with pricing the Home lower to get higher offers you don’t wanna price it higher. You will attack the wrong people and you won’t get your home sold in a timely matter
Thanks for your comment. So I think that the standard is really six months. You can ask for a shorter one for sure, but he or she may not do it. It really isn't that excessive when you consider that it typically takes 15 days after listing to get the pictures taken and in the computer and then 30-90 days to get an offer, and then another 30-60 days to close. Honestly, the lower you price it the more offers you will get and they will be stronger as well. But you don't have to list it at that. But if you overprice you are going to be on the market a while. You should check out my video on "why isn't my home selling." As far as the square footage. Let's say you and neighbor A have the exact same square footage, but your house hasn't been updated in years and the other one has all new bathrooms, and kitchen. Is your house worth as much as that one. If you overprice, you could be leaving a lot of money on the table. Take a look at some of my other videos to see. Good luck!
the listing/seller agent can gets another agent from the same company as a buyer agent if buyer doesnt have one so the commission stays in the company. Is there anything a Buyer should have in the offer contract when buying a condo that is important not to leave out?at what time should certain things be in ( inspection, etc) so that it closes on time and not be running around urgently to sign on time. Besides looking at a cc&r, what do i look for ? thanks I am buying and not have an agent yet but going to open houses on my own. If I walk into an open house, and want to make an offer, I can then go find and sign a contract with an agent as my buyer agent so he/she can write the offer ? that's ok ?
Listen! The agents are not giving the a buyer's agent any money so when you list the house they are absolutely trying to sell themselves and then Auto offering anything out but the seller of the home is under the impression that the 5% will be split between the buying agent and the selling agent that's not true so you know what it's best to just listed by yourself so many places to list and even on MLS for $99 I'm never going to use an agent soon as I find my house and if I sell I'm going to just sell on my own
When you do sell, be absolutely sure to deposit any earnest $ or down payment (and eventually full funds) through a title company and don't let them disperse any refunds w/o your signature. You want them to handle all that since you can keep the $ out of the buyer's reach until all else is finished. But you don't want to hold it yourself, bc if the buyer has a slipup b4 all's done, they (usually) can't sue you to get any $ back since it's the title company holding the $, not you. .......................... Conversely when you're the buyer, make sure the title company's holding everything until completion bc you don't want to lose if the seller can't prove clear title. The woods are full of bogus sellers who don't actually own the property in the first place! Go to the county office and get them to show you how/when the property was first transferred to the alleged seller. Then contact the person(s)/company from which *they* allegedly bought it and find out if they know somebody's selling that property. ............................ Do this in person also, not just online. I'm lucky in that my county maintains such an ancient record system that nobody can change the ownership w/o appearing before them in the flesh. Plus in remote TinyTown, nobody could impersonate the few people here since everyone knows everyone else. When I die, my executor will have to produce my death certificate, a copy of the paper naming them as executor, plus the will in which they're bequeathed the property. ............................ Lastly, in case you live on the property in question, be aware ahead of time what wiggle room the law gives you in vacating when the sale closes. I mean how long past the agreed-upon date do you have to begone, regardless of the change of ownership. I became ill just b4 departing the last property I lived on and sold. If I hadn't kn own it would be a month b4 the sheriff could evict me, I'd have been in worse trouble than when I found out the buyer was a drug dealer. ............................... Which brings me to my last point. Absolutely NEVER take anything but ALL cash due on closing. One, it can't be traced unless the buyer robbed a bank; and two, your own mother could die or even renege on a seller-carry deal and then where would you be??? Some family members tend to think they can get away with highway robbery. Don't sell to them if you can help it, and don't listen to sob stories either.
There a lot to consider here but the bottom line is the fee paid to get professional help in listing and selling your home should not be tied to the price of the home. An agent doesn’t deserve twice the pay for a house that’s twice the price. And dual agency is obviously wrong. Agents should be fee only service. I’m about to sell a 2 mil house. There is no way any agent can justify earning $60k for listing my house. The system has not been adjusted for rapidly escalating home prices.
@@mike73ng I sold a house worth 2 million and had the listing agent agree to a 1% commission, this was many years ago but would do it the same now. More than fair
Home values in some areas went up about 40% in 2020-22. So agents got a 40% raise. Did you get a 40% raise? Did the cost of being an agent go up 40%? There have been flat rate "agents" for decades. The easiest only puts your house on the MLS and websites for about $200-400. You do the rest. Your phone number is in the listing so everyone calls you directly. Order our own pic for $125-150. You get rent a sign and lockbox too, but worthless imo. Put in the listing "3% to buyer or buyer's agent". I also put "Seller pays all closing costs" because the reality is buyers actually pay for everything. They're the only one putting into escrow. Seller never sees the money for commissions, repairs, closing costs, whatever. The market value, appraised value, assumes 5-6% in agent commissions. That amount was never ever going into the seller's pocket. So I list 3% under market. That get's way more buyer interest than a listing agent could ever generate. I net the same as if I used a listing agent. To me no listing agent is also way easier.
If seller is still recommended to pay the buyer's agent then what is the reasoning of the Realtor Board to change this is the first place? Seems to be extra hassle, for nothing. Dual agency is more work since agent has to walk the client on both sides through the mechanical and psychological process for the hiccups and to close smoothly. Why not the agent get list and buyer rep if that is what happened? The seller and buyer can certainly be informed of the dual agency relationship but to be tight lipped since agent represents both buyer and seller, don't say anything you would not want the other party to know. Buyer and seller can ask for a recent market analysis and no reason to not get neutral and/or public information to be informed. Why the change since seller is still recommended to pay buyer's agent?
My sellers agent told me while writing contract that there was no place on contract for a negotiable buyers agent commission. I wanted to negotiate commission pay on a case by case basis with agent. ???
I am selling my condo and signed a contract for 2% to seller. I made no commitment to any buyer for any percentage. This is negotiable and refuse to commit to anything to anyone that is not directly working for me. Was this the right thing to do? As a sales person, I believe you should leave as much as possible 6:18 for negotiation. I also signed a four month contract. I believe if they want to recoup their money for listing, they should be really motivated to sell quickly.
I found my own buyer, but I made sure in my contract. It said that there was a seller and a buyer fee… This was in the 1990s and it was 7%. I did not have to pay half of that fee if I found the buyer. it went fine, but that was a long time ago and I had a very good real estate agent that a trustworthy friend had used many times.
My house goes back on the market next week and there will not be a dime paid to a buyers agent and only 2% to the selling agent they can take it or leave it. Agents are dime a dozen and they all suck. DOJ wants to hear about agents doing a run around! Hope they make examples out of a few in short order. Real estate agents need to be put in their place! They have scammed the american people long enough. This lawsuit didnt go far enough! I expect more will follow.
I think a buyer should have to pay their agent. Because they can't afford it on top of the mortgage is a poor excuse. Basically, it sounds like the seller is still paying both agents. Doesn't sound like much has changed except the buyer's agent's commission isn't funneled through the seller's agent. Either that or my comprehension is lacking. And when does the seller pay the buyer's agent? Hopefully, it's after closing from the proceeds.
It does sound like sellers are still paying both agents, doesn't it? Best con ever pulled in the world imo. Follow the money.... House sells for $500k. At close buyer puts $500k cash on the table. Escrow agent cuts out $15k and pushes it across the table to the listing agent. Cuts out another $15k and pushes it to the buyer's agent. Who paid the agents? Did you see the sell write a check to anyone? How about another perspective... "market value" always assumes 5-6% will go to agents. It is built into the market value, the appraised value, and lenders agree that 5-6% of the "value" will go to agents. Meaning built into the system is the offer price the buyer makes assumes the buyer will pay the commissions... and everything else. Closing costs, repairs, whatever the buyer wants will be paid out of the money the buyer puts on the table. This "confusion" has been the cornerstone of the agent scam telling buyers "don't worry, the seller pays". Oh, your services are totally free!! Cool. That's mainly what the NAR lawsuit was all about, though in a roundabout way. The reason agents could lie and not be charged with fraud is because of the collusion with listing agents putting in the listing contract this strange "I get 6% and pay buyer agent 3%." Super odd thing to have in a contract isn't it? In court they can say the buyer gave the listing agent 6%, who represents the seller, and then the listing agent paid the buyer's agent. In theory the money was the seller's money for a microsecond. In theory because that never even happened. The listing and buyer agents are paid directly out of escrow. It's a shell game just so buyer agents can say "seller pays". Pretty funny 99% of retail buyers and sellers believe "seller pays". This was one way investors were hammering retail buyers in 2020-22. An investor can offer 3% more than a retail buyer with an agent. Retail buyers couldn't figure out why they were getting beat on house after house. Buyers with agents always have to bid 3% higher just to match buyers without agents.
I already knew 20 years ago that before executing any agency agreement -- whether as seller or buyer -- that you have a clause preventing "double-dipping" on commission.
Our realtor did anything prevent showing us any home that was below the fee he wanted. He was very obvious about pushing us into a new build that he would be getting a $20,000 realtor fee. He pushed us into a house that we hate and the area is not for us. He started saying this will only be your two year home anyways so it's fine for now. It was too late for us to back out at that point, but we definitely would never have bought a house that we only intended to stay in for two years. There are some really horrible realtors in the Austin area.
@@analovesTexasSeriously?! He may have “pushed” but he could not force you to sign. No one would ever convince me to sign on the dotted line for a house I “hated”.
How is this any different than before? The listing contract has always been for the entire commission amount with the listing commission only being split if there is a separate agent representing the buyer.
Auction off to top bidder online! Hire an auction company that handles payments, showing period, appraisal, titling, paperwork (lawyers), and all inspections. Close the window to show the house and eliminate the agents
Common practice in Australia for years. About 10-25% of houses are sold at auction. Few other countries too. Really only works when there are many interested buyers. However, the reality is every home is sold in a kind of auction because the seller is also bidding. If you offer $500k the seller has to think "Would I rather keep these asset or sell?" If they think it's worth more to them than $500k they counter with their bid to keep the house. If the buyer passes the seller wins the house.
It's not always disclosed. Investor buyers have videos showing how they convert a listing agent to helping them get the seller to accept a low offer. Seller never knows. Legal for investors, illegal for the agent but apparently about 75% don't mind breaking the law as that's about the guess investors say do it. Dual agency really isn't much of a change. Listing agents represent themselves. Just because they tell sellers they're on their side doesn't make it true.
@@waterbug1135 I wouldn’t sell to a investor, I would want my house to go to a new family. Last house we sold we had a great offer from a Chinese investor, we said no way
I'm settling on a house tomorrow and did the exact same thing. However I was very clear on day 1, I do not want representation and want it as 3% as sellers assistance in instead. 10k off the house and 3% kickback. A realtors before me ( in this exact same neighborhood) said no and ALL commission goes to him. He never presented the offer to the seller because he knew they would say no...ok broke boi. Now 2 months later his house dropped their price 10k. I cant wait to meet the owners, their a block away. I'm getting a much better house.
Investors know to go to the owner directly. Normally county records have the owner info. Pretty easy to find. Make an offer directly to the owner. Let the owner scream at the listing agent. If there's a clause for canceling the listing let the owner do that. Or let the listing expire and buy then. The owner is likely to be so mad at the listing agent they will refuse to let the house be shown.
Just keep agents out of it. I flip houses and always list 3% under market because I don't use a listing agent. Listing agents do nothing to sell a house, zero, nada. And they just get in the way when negotiating and are rarely on your side. Asking 3% under market is a way better use of that 3% to attract buyers. In the listing I put "3% to buyer or buyer's agent". I've had buyers with agents call me directly saying they have an agent but want to buy without that agent and want advice on how. So now the house looks 6% under market and it hasn't cost me a penny. I also use the lies agents have trained buyers to believe against them. "Seller pays all closing costs." This also doesn't cost me a penny because in the history of real estate no seller has ever had to put money into escrow. Buyers have and will always pay all closing costs, repairs, whatever. Thinking sellers only care about the net. If your offer is high enough and you want a new roof...sure, no prob. This business about negotiating closing costs is really about lowering the offer price. You offer the price a seller wants, they accept and then try to keep lowering the price. When a buyer is interested, or makes an offer I tell them they can walk away at anytime before the keys get dropped in their hands and get their deposit back. This is just reality. I'm I going to hire a lawyer and tie up my property for months while suing to get their deposit released from escrow? No freaking way. Agents love to tell seller their contract is air tight and the buyer will have to perform. It's nonsense. About 1/3 of purchase contracts never execute and virtually all sellers agree to release the deposit back to the buyer. Why try and scare buyers? Better to make them feel safer.
Hearing this story just confrms what a sad industry it has become. I once commented on a realtor's channel how I was preparing to sell my home fsbo, and I was delighted when the buyer was someone who had struggled to get a home in this market (there were still bidding wars, crazy prices, etc) - so I agreed not to list the house. Many who commented gave me praise for not just trying to get top dollar (I really wasn't looking to get every penny I could get - if I sold it for less than it was worth, it didn't matter to me since helping a buyer get his first home was more important). But one comment was so disturbing. The commenter said he was a broker and basically told me what a fool I was and that sellers like me realtors laugh at because they know they'll be taking advantage of them (now I see what he meant after watching your video!). I basically reminded him that had he forgotten the oath he signed when he got his license (I was a realtor many years ago, and I planned to follow that oath even though I was a fsbo)? He back peddled, of course, but still it saddened me to read his comment. I hadn't closed just yet - at that time - and of course was concerned that maybe it could happen. I had agreed to pay the buyer's agent's fee - knowing I was saving the listing agents side (but I still had to do a lot of work to keep the contract going - as I did as an agent years ago). It all turned out perfectly and the buyer's agent was true to her word on what we agreed would be her fee - and that was all that I paid, aside from my attorney and taxes. It was a wonderful transaction and everyone went home very happy.
I always advise you talk to the agent first. Then elevate it to the managing broker. I always encourage open communication first. Then you’d go to the local association or the state association. What’s the issue?
I am in washington, realtors only want to show the house once and expect you to comply with it. then they tell me you HAVE to have and agent but you don't I have bought and sold many homes with out an agent and it has been fine. I don't need an agent and will find a fsbo and go that way. they are too arrogant and cocky here. you can do it yourself.
No reason to limit yourself to FSBO. If a listing agent refuses to pay you the buyer agent fee in the listing contract you can always walk. But I've never run into a listing agent who wasn't happy to give up the buyer agent commission. Even better is to do what many investors do...knock on doors, mail flyers to neighborhoods you're interested in. "Wanna sell?" You can get in before an owner signs a listing agreement and they're happy to give you that 3% instead of an agent. There is a problem with many FSBO deals. The owners are often dumb as a rock. They're all pee'd off at agent (rightly so, but it should cloud judgement). Most feel entitled to keep both commission because they believe the lie "sellers pay". Reality is buyers always pay via the price. Buyer is the only one putting money on the table. But generally even these corn dogs can be talked into reality.
As an agent, there are several Brokerages now listing the seller and buyer broker commissions listed on a separate form, Beyond EXP. If the buyer agent comp is not stated, then who is to say the listing agent does not play games with buy agent comps. Write it out as your clients wishes and negotiate from their
I would never expect a listing agent or managing broker to educate me - that’s what I pay or real estate attorney for as she is the only one who puts our j retest first.
Hold on here. A sellers agent is supposed to go out and get a buyer, when they do they turn to both the buyer and seller claiming they are representing both? That by logic is not fair and honest representation.
Trolling an agent who is trying to protect consumers?? If you watched all of my videos, you'd see that I am protecting consumers. I only thought the agents would troll me... I didn't think a consumer would troll me... But you obviously are not an agent. But now I see... you are a sketchy investor! Now it makes sense... agents get in the way of you scamming home sellers out of their life savings when you go in with a low ball offer. And if I am educating sellers, then you won't make as much money. So THAT is why you are trolling me. To scare sellers away from being educated... got it. My viewers know that I am on their side... unlike you.
@@KatiSpaniak I read that comment as someone who believes it is unethical for an agent to represent both buyer and seller, which is what you said as well. I honestly don't think it was trolling, or a dig at anything that you said.
I’m an eXp agent in TN and the pushback I’ve gotten from buyers’ agents on my last 3 listings shows how untrained they are on all the changes. EXp isn’t perfect but they certainly prepared me to understand and explain the changes and do things with utmost care to abiding by the terms of the NAR settlement.
I am not a fan of dual agency. Loyalties are not clear. Scams can be perpetrated. That said I signed a 2.5% for my listing agent and 4% if she handles both side. Otherwise, I am not paying for the buyers agent.
Ive never sold a house yet but why can’t the owner just sell directly to a buyer? All these middle men/women sounds shady. Hiding things in contracts and not being straight forward.
You can sell directly using a local title company. The title company will give you the contracts, and handle all the details of the closing. You just have to do all the leg work; hiring surveyor if needed, coordinating meetings around work schedules, etc.
What about the case of both selling and buying? This is the most stressful and complicated situation I thank you in advance for explaining it under the new law 🙏🏻
It seems to me that if I’m selling a home I don’t wanna pay the buyer agent. Period… so I would be shut out of the market from other buyer agents? Isn’t there something unlawful about that? Or if I was a buyer and I wanted to go to a sellers agent and tell them I buy it for myself and not an agent can they just go ahead and pay their agent only? What is wrong with that? And I realize that real estate agents have been making a lot of money much too easy for many years and are spoiled. It’s time for a change and let the consumer get the benefits of a legitimate contract from an attorney
Well. Why would a buyer agent promote your home if they weren’t going to get paid for it? Their buyer would have to agree to pay them. It can happen but that’s definitely not illegal. You can definitely go to a sellers agent if you don’t want to be represented.
If a seller’s agent initially offered to accept a 2.5% commission provided the buyer covers their own agent’s commission, but then found an unrepresented buyer and explained dual agency to both parties (though it’s unclear if there’s a signed agreement allowing dual agency), is it ethical or permissible for the seller’s agent, now acting as a dual agent, to request the buyer to pay a portion of their commission?
I'm not an agent however how could honestly and completely objectively and unbiously represent 2 different sides? I think it would be very rare indeed you would find someone who could represent both parties to get exactly what both parties wanted equally and fairly.
I am fully on-board with this video. I am doing the same as you! I am an Realtor in northern VA and I work the same way as you re:commission. GREAT content. There are “a lot” of agents who “do not” know this information.
Thank you very much for this! I do know there are agents out there that believe this and want to protect the consumer. I wish we heard from more of them!!
I don't mind paying the buying commission, but I have a real concern with dual agency and whether the agent is looking out for my best interest as either a seller or as the buyer. How is that not a conflict of interest?
Now I know why I rent. Everyone rents in this system anyway when you include property taxes. Why go through all this corruption and just invest your money in something else other than property and a home that I found was pretty much a money pit. I worry about none of these issues renting. I feel much more free now than I did owning a home for 11 years.
Nothing wrong with being a renter. I don't mind being a landlord and taking on those expenses and risk. Enabled me to retire at 45. Example house I bought in central Phoenix for $200k in 2009 as a short sale. Mortgage payment of $675, taxes $133/mo, insurance $80/mo, say $100/mo maintenance, say 5% cost on the $40k down payment so $167/mo so $1155 cost all in. Rented in 2009 for $800/mo so holy crap I'm losing money. Rents and the home value went up while most of my costs went up much less. That home appreciated an average of $2000/mo over 15 years and rents today for $2200/mo. Today I make about $3000/mo on the rent and appreciation. That's about an 18% return today. Seems like an OK return to me.
I need to sell my house & my younger brother is dying to buy it. I have been the one stalling. I am getting older & it is a big piece of property, plus taxes keep going up. I know all of the comps in my area bc I have been following my area for several years & there have been many recent sales. The house needs some work. I feel like I need an agent to set a fair price as I don't want any family issues down the road where my brother feels like he paid too much or I feel I gave the house away. How do U handle a commission when there is no listing, no pictures, no showings, & I am bringing a legitimate buyer, etc.? This can be a quick closing as we can get anything questionable done very easily.
Honestly, I would just offer an agent a flat rate to represent you. It can be whatever you feel comfortable with. They might ask for the full list side of the commission, but you can negotiate. Make sure you get an experienced agent though. It's just like hiring an attorney
Never found an honest realtor yet, except for myself, and I was only licensed long enough to buy a few personal investment properies during the downturn.
It seems that the only way a Dual Agency arrangement would be ethical if a "contingency" understanding were involved. If working though an agency that represents properties, it would seem logical and ethical if the agent works on behalf of a client to buy a house on the condition of the sale of the client's house.
I learned decades ago that dual agency is illegal. If there's a dispute, a court will only view the agent as the seller's agent. It's so apparently unethical.
I would add it before signing ... ammend it .. I am an attorney but any savvy seller should insist on it. Strike out provisions in that form. That oversight will now cause a ....... match.
No matter how you word it, both the seller agent and the buyer agent work for the seller because that’s who paying you the commissions. Btw, with today availability of the internet, you don’t really need a buyer agent because any buyer can get online and find the listings they like to look into. Unless of course, the buyer uses a real estate agent to look for all the listings that they can do themselves.
Commercial agents have generally always operated this way. When someone is purchasing a commercial building, they write the compensation into the Letter of Intent.
The agent's company is owned by a broker. Company name is normally on the agent's card. You can call directly and ask for the agent's broker if the company has multiple brokers.
How can the listing agent claim they are "Dual Agent" when they never had the buyer agree to representation in writing? That story makes no sense and any reputable brokerage would not risk their E&O insurance for a single commission from an agent who doesn't know what forms she needs to complete.
They don't need the buyer to agree. Dual agency is built into any listing contract that states the listing agent would pay a "licensed buyer's agent". When the sellers signs that they are agreeing to dual agency. Doesn't have anything to do with the buyer. If there's no "licensed buyer's agent" there's no bill to pay.
@@waterbug1135 Then the agent is not working as a disclosed dual agent. In order to work as a disclosed dual agent, a firm must first obtain the informed written consent of both the buyer and the seller. I agree with you that the buyer is not part of the listing agreement because they are not a party in that contract. However, that listing agent did not have informed written consent from the buyer and therefore can not be a disclosed dual agent.
@@waterbug1135 You are totally wrong. I hope that everyone reading your comments knows that you have no idea what you are talking about. You're just a troll trying to make sure that homeowners are not educated because you are an investor. Makes it easier for you to scam people out of their life's saving in their homes if the sellers aren't educated.. Dual agency is not BUILT into every contract. And you ALWAYS have to have the buyer agree to dual agency. Because, duh, the buyer has to agree to be represented by the listing agent which is dual agency.
DOWNLOAD our FREE Seller's Playbook: bit.ly/SellerPlaybook78
This us a grift to get your personal information. If you are not in her area, the odds are EXCELLENT that she will sell your contact information to random agents in your area. Fear mongering folks are quirky that way
That's why I filled out the form with a fake name fake email and fake everything else. Because I didn't sign self anybody calls I am absolutely still on the do not call list. I'll tell you what though if I were looking for a real estate agent across the country I would use them because the information in these videos is good. By the way check out Katie's Adam's apple. Kind of looks to me like Katie could have been Kevin, so maybe Katie is a persona. When you check out the legal docs on this site and elsewhere terror lux is actually another company owned to buy it looks like 2 men and Katie. And again I'm telling you if I were gonna buy a house across the country I would absolutely take their reference because yeah they're selling it probably to others it would call you but they would be others from a group you're interested in connecting with, one would hope. It's on the other hand a bunch of private equity the telemarketers are on the line calling you to bite the house that you're currently owning well what a pain in the neck like that would be. That would create seriously bad will and I would hope people who did that would be entering it in the comments of her videos.@LookyLooRealEstate
Please pardon the voice to text errors. By the way I had to delete the original comment immediately because if I was correcting the voice to text errors, it would not let me repost it and received repeated comment failsed to post, Thus I deleted it and reposted the corrected one however it is also filled with voice to text errors if you read the comment allowed you can sound it out.
When I Sold my house in 2009... I got a low ball offer ... my agent pushed me to accept saying the first offer is usually the best... at the closing I found that the buyer and the agent were friends... I felt completely ripped off and like the agent was not representing me like he should have
There are videos showing how listing agents are converted into working for the buyer. Videos record actual phone conversations. The buyer finds a house they might want to buy. They call the listing agent directly and tell them about the house they're interested in and say "I don't have an agent." Listing agent thinks "cool, double commission". Then the buyer says "I flip homes, do you have other houses I might be interested in?" Ding, ding, ding, winner, winner chicken dinner - future commissions - the listing agent is "Oh yeah, I can totally help you with that."
The buyer asks about the original house he called about. Listing agent tells buyer everything the seller told the listing agent in confidence. "Yeah, they need to sell. They're worried about... Their bottom price is... Yeah I can totally get the price down." When buyer makes the low offer their listing agent who they think is on their side pushes them to accept.
Investors have been doing this for decades. Estimate is about 75% of listing agents are quick to sell out their seller. There is nothing illegal about the investor asking. What the listing agent is doing is fraud against their seller, but good luck proving that.
The deal is the only job a listing agent has is to get a seller to sign a contract. They don't have to do anything else, and they do almost nothing else. Pay for pics, a sign, a lockbox which in total is about $200-500. Then they just sit back.
This is really on the sellers for being so dumb to give a listing agent 3% of their house, which can be 10-80% of the seller's actual profit. Super easy to list a house yourself.
This is a reason you should always interview many agents before selling your home, you can always tell the good from the shady.
That's why you have to know the comps in your neighborhood, last sold and under contract, to understand what your sale price should be👌🏻
what constitute a low ball ? say it out loud, what was your listing, and what was the offer? cause in 2009 was kind in the middle of the real estate recession. Another thing, you're saying that this was an example of dual agency? Your agent, perhaps got his friend (the buyer) to made the offer? Or perhaps your Agent did you a favor, and found a buyer to buy your house, before it went into foreclosure? I'm been the devil advocate. Their is missing information, and if you think you got scam, then is going to hunt you down.
It is true that the first offer is usually your best offer. Typically, the longer your home sits on the market, the less a buyer will offer. Just because your agent was friends with the buyer, doesn't mean they did anything unethical. What was going on with other homes in your area that sold at that time? What was the typical sell to list ratio at that time? What is a lowball offer to you? How many days was your home on the market compared to other homes? How much interest were you receiving? Did you list it too high? Why didn't you suggest making a counter offer? What were the comps selling for? You should have addressed this at the time of the transaction.
I agree about bad agents. I was going to list my house in 2021 and decided to sell it by owner which I did and saved a ton of money.
congrats :)
Doing same
Attorney and title company
You may think that you saved a lot of money….but, 0:09 will you ever know how much more money you would have made by having your house listed? Saving a penny to loose thousands, in my 40 years in real estate I have seen “happy” by-owner sellers whom have lost plenty of cash and time.!
@@yourvette If someone does their homework, they may not lose anything. My realtor wanted to list my house for $40k less than I wanted to and I refused because his comps were all to houses that had no updates done like furnace, windows, doors, kitchen, etc. Ended up taking $10k off list price so I made $30k by sticking to my guns. Agent had to work a little harder which he did not want to do but he wasn't going to be the listing agent if he didn't play nice. Remember, when an agent gets a 3% commission, the selling agents only give up $300 for every $10k off the price. Buyers agents want higher prices because they make more. Too many conflicts.
I had an agent tell me that it was against THEIR policy for me to represent myself, I have my own license… I have NEVER heard of this either. I think I’ll call the board tomorrow.
Yes, I've met agents willing to sell their mothers for a commission.
When I bought my home three years ago, the sellers agent told her that she would get a bidding war. It never happened and because of that if I wanted the home I had to pay 5K more, and they knew that we needed to get into this home because my husband needed to get back into chemotherapy...both the sellers agent and our agent were friends.....evil
Sorry 😢 to hear that
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Buy now, home prices will not go lower. If rates drop, you can refinance
The government will have no choice but to print more notes and lower interest rates.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
@@williamDonaldson432 this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
IMPORTANT: Always change your sellers contract to read “commission is earned upon closing”, instead of the standard: “ upon bringing a valid offer”. Valid offers still fall through and leave you owing a full commission. Check with your own lawyer for the exact wording so you are protected. It may be rare that a realtor will demand an unearned commission that way but it does happen. You’re welcome!
Lame. This rarely happens
But…..it happens. Someone on Reddit was just asking for advice. They signed a listing agreement but ended up not selling their home. Come to find out the listing agent had in the contract they would still receive the 3% plus all expenses.
Read and reread your contract and trust no one. Many of these realtors. the same ones that were in it just for the money, are figuring out ways to “get their” money.
So I don’t think it’s lame. It raises my eye brow towards anyone who thinks this is lame.
Great tip!!! I know of someone this happened to recently. Always read anything you sign!!
Omg, this is something most sellers don't know or don't realize or aren't aware of.....On the flip side, it could happen that a realtor brings a potential buyer & no offer is made. Suppose that same seller-agent contract ends & the seller decides to sell "ByOwner"....and one of the former clients of the real estate agent now sees the "For Sale By Owner" sign & makes an offer & a sale takes place. Could a real estate agent theoretically go after the seller for a commission if their original contract said " "upon bringing a valid offer"?
@ I believe under a standard contract before the NAR settlement a realtor was protected for a period of time like, 60 days after the contract ends if someone they showed the house to purchased it after the contract expired. Don’t know about the new buyer seller contract verbiage.
Realtors are finding creative ways to get their money so every word of the contract should be read as with any contract.
I would like to see a flat fee (not percentage) for a sale of a house. Such as $1500 of a houses closes. In NO way do I think a realtor should get 3-6 percent of a houses equity. You don’t add that cost over and above to the appraised value of your house. It normally comes out of the equity you gained from maintaining and improving your homes.
The reasoning a great realtor is worth 5-6% or even 3% now of the price of a home is just ridiculous.
I know many will disagree but scheduling a home inspection, appraisal and getting a closing agent that does most of the work isn’t worth 3-6% to a realtor. If a “great” realtor can influence an appraiser or home to inspector to get a good report….than you need a different appraiser and/or inspector. Someone is still paying in addition for those services which also total thousands of dollars.
In short I do see value in a good honest realtor but not 6%. And……if they are good honest realtors you would know all these little caveats from them without scrutinizing every word of a contract. (And there are good honest realtors out there)
About 15 years ago my mom was approached by her boyfriend’s coworker about buying what was my grandmas house. We talked and he said he’d have his realtor contact me. I spoke to him and when he sent the paperwork, first red flag was my mom’s name was spelled wrong,I had emailed the info so copy paste but he didn’t do that. 2nd red flag was he said he’d put $350k for the house price but we’d negotiate, that was at least $200k less than other comparable homes in the area. 3rd red flag was he put 7% commission and he was the only agent. I was like, you don’t get more than a regular agent, you’re basically doing paperwork so why would I pay you more? He thought we were stupid women and we’d just go along with whatever. I told my mom, don’t sell to him. The realtor is trying to scam you. She pulled out and she waited a few years and got more than twice what that guy offered. I also had a client who is a realtor I met at work sell her home. Id known him for a few years and he never gave me a creepy vibe and it worked out well.
I have had countless bad experiences with realtors that misrepresented using their ability to finesse and took advantage of my lack of knowledge over the years - of buying houses in my life I have learned so much and I am amazed that this profession has so many scoundrels in it I could give a three hour seminar on all the tricks and manipulations that realtors do and if I ever find a venue to do so for Pay I would love to I believe the new ruling is only gonna open up more room for Malfeasance!
Any field that is supported by commissions is open to scoundrels taking advantage of the less knowledgeable. “Do your due diligence “ is a weaponized defense statement.
It's not just when agents are working. I sold a house to an agent. During escrow they asked if they could start moving in before close. I said sure, no problem, just sign a 2 week lease for $600 (good deal) and you can have the keys. They said never mind. Few days later I check the property and guess who's moving in? Because he was an agent he had access to the lock box and took the key. I called his broker to tell him what his agent was doing. His reply was "Go f*&^ yourself" and hung up.
I sent the boys over with a truck and removed all the property moved in. It wasn't a lot of stuff. Buyer never even asked for the return because what can he do? Call the police and tell them "I broke in into this house, moved my stuff in and the owner stole it all."
This was one of the largest brokerages in Phoenix.
I stopped using lockboxes after that. Serious buyers will wait for me to show up to let them in or make a appointment. The only "buyers" you lose aren't actually interested. The agents are just using your house to educate their buyer or just lookers.
All of this would be solved it agents just charged a flat fee. I've never understood why fees are based on percentages. The same pictures and videos need to be taken, the same inspections done, the same paperwork filled out, the same everything, no matter if the home is selling for $300K or $2M. A $2M house does not require twice the amount of work to sell as a $1M house, yet the agents earn twice as much. Totally illogical, and the percentage system leads to all kinds of shady practices as you so accurately outlined here (as well as some you didn't mention).
I hear what you are saying & agree. However, some houses definitely are harder to sell than others. (I am not in real estate). You could have an abandoned property, or one that needs a lot of upgrades or the house is in a bad location. A previous house of mine took 5 years to sell. It was a nightmare for us. The house was in beautiful condition but it was on an intersection. When we purchased the house, the area was quiet & the intersection was not a big deal. Time went on & the area built up rapidly. Accidents started to happen frequently & a light was put in. The house was priced right all along, but the location was not good. We were young & dumb when we purchased the house & it was a new home. Anyone with children refused to look at the house. Our buyers had to be an adult couple or someone with older children or perhaps a large family that needed space quickly. Finally, a couple with high school boys purchased the house. At this point, we sold it by owner but did have 3 different real estate agents over the 3 years. They all were good & all agreed the traffic light intersection was the only holdup. I learned my lesson that location, location, location is do important. You can fix up a house but you cannot change the location. I have been happily living on 3.5 acres at the end of a quiet cul-de-sac for the past 27 years. Another problem is a very nice house in area that doesn't call got that kind of house. Like putting a million dollar home in a $300k neighborhood. That is going to be a difficult sale.
Exactly why I said real estate agents are the exact same thing as car salesmen just the products are different and one gets paid way more.
When I sell my home, my agent found someone to buy my home and he refused to listed my home higher than what we wanted. I didn’t know he was a dual agent and he was for the other side and not care about us. Until we went in to sign. I don’t like agents. They are sneaky and untrustworthy!! That’s why this time if I was to buy or sell. I will educate myself better. Thank you for sharing this information with us. Please share more.
Fsbo and your own lawyer is the only way to go. You don't need any MLS. I've bought and sold twice now, got more money than I asked for both times.
How / Where did you market your property? Had my home for sale twice last year (2 different agents). Vetted them both but not impressed with their performance.
@DN-rg9nj word of mouth. I had my attorney draw up the papers before I let anyone look at it. The attorney took care of all the paperwork. I also hired the title company and they did the paperwork. The buyers got approved from thier bank and the bank and underwriters were in touch with the title company. I did zero marketing. For sale by owner in front window was my marketing. I think it was like 3 dollars. Much cheaper than the traditional route.
@@keithcornett Thank you!
@@keithcornett I’ve done FSBO and it worked beautifully until Zillow changed how those are shown.
@@keithcornettOut of curiosity, can you share attorney fee for the contracts and how many counters they handled?
Yes. Now we are educated! Thank you Katie. I have listened to alot of videos on current RE changes and This IS the best explanation ever. A keeper as I become a seller soon
I lost my job, no family wanted to take me in. Got angry, moved to another city became homeless, got a job as security officer, I was able to invest in forex making $278k.Bought my first house last week. I pray anyone reading this will be successful
you're really doing well my finance are in rally in mess right now and great tip will really go along way in shaping my life im open for idea
I work at a restaurant here in Houston Texas. Things have been really difficult as I'm a single mom and trying my best to pay bills and take care of my daughters.
What a testimony!!! 🙏🙏🙏I'm genuinely curious to know how you earn that much I have a lot of debt to clear
I started pretty low investing in forex though with $5k thereabouts. The returns came massive. can't be more proud that I'm right now, and I have move in to my new home (ALVAREZ HARRY FLECTCHER) is a Blessing to my life
Wow 😲I know this Man mentioned here . Alvarez Harry is really good with and on his job. He has helped a couple of families and individuals' finances, I'm huge beneficiary of his platform too
Excellent Video! Thank you! Here in AZ State, the AZ Real Estate Board warns on their website for consumers to READ and UNDERSTAND all contracts and agreements before they sign! Also, in AZ state it is not a requirement to sign a buyer's agreement in order to view a home, but most agents are lying about this. Many of the buyer's agreements are also worded to make a buyer pay commission just for viewing a house, or if the house falls out of contract, for any reason. As well, the AZ listing agreement is extremely sneaky as it makes sellers liable to pay commission if their house fails to sell, simply if a party showed interest in the house (no offer or accepted offer needed). We listed our house FSBO after 3 different agents refused to modify that agreement so that our finances were protected. We lost all trust in the RE market, and will not use an agent to list or buy.
Good info
Agents can, and do, negotiate their pay up front. Any consumer can decide whether to hire or not hire anyone, anytime. There are no laws that the real estate profession is beholden to work for the anyone for free. We call that slavery. Do you go to work? If so, you need to walk in and demand a pay cut tomorrow. It is not fair that consumers are charged too much because your boss pays you way too much for what you do.
Also, let's ask Miss Katie how many free transactions she completes every month. I am very interested to hear that number.
I don't believe it's a requirement to sign a buyer's agreement to view a property in any state, by virtue of the fact a "requirement" is not an "agreement". An agreement is a mutual consent. A requirement is something you have to do. Any agent who says "You have to sign" as a blanket statement is misrepresenting and may have repercussions on their license. However, since Real Estate Agents are Independent Contractors, as long as their Principal Broker concurs, they can say "I personally am unwilling to show a property to any Buyers who I am not under contract with. It is the most efficient and effective way for me to run my business. Just like the plumber, the gardener, the accountant, are paid for their time, I too must ensure that I am paid for my profession." If the potential Buyer doesn't agree, there is probably a new kid on the block who will show listings that the Buyer may or may not use that agent to buy. You would be shocked how many Buyers just use any agent who is available at a time convenient to them, to show a property with no loyalty.
My buyer’s agents were very helpful in the last two houses I bought. I believe they deserved the full 3%.
I'm not against dual agency specially if I can get the home for the price I want. Some agents are more than willing to reduce their commission you just have to ask the realtor if you are the seller.
Never sign a selling agent's contract with any implied dual agency clause! Ridiculous!
so what should the % be ?
@@foyerfelin Unless the agent is a trusted friend or family member, your selling agent should only be working for you. The buyer's agent is legally bound to represent the best interests of the buyer. If your selling agent is willing to represent the buyer for free to get the deal done to earn his/her 3% seller's commission, then maybe I would agree. But that still means you only pay a maximum of 3% total to this agent. If the agent doesn't like this, I would find another agent.
Or even better, no agent at all. Best is fsbo, find a flat fee MLS listing broker and sell it yourself.
I have never signed with a Real Estate Agent who was a Dual Agent. But if the condition was on contingency, or to buy on the condition of the sale of my house, this would be understandable.
10:20 "...not getting the showings." This is called "steering" and it is illegal in the US. But it is so common the agent in this video doesn't bat an eye telling you agents are doing this if sellers aren't offering a slice. Agents want to scare you into paying. That's called extortion. Also illegal in the US. There it is right in front of you on video and she isn't worried one bit.
First we heard about the crap listing agents are doing. Now we see buyers are also getting ripped off by agents. This has been going on with FSBO properties for decades. A FSBO house might be perfect for a buyer, thousands under market, but buyer's agent will refuse to show the house. If buyer insists the agent will show the house and bad mouth the property from top to bottom.
The amount of illegal things agents do is staggering. They pay off politicians via lobbying and campaign contributions in the 10s of millions to get protection from prosecution, regulation and new laws they don't like. Largest and oldest criminal organization in the US.
And people still line up to give them a huge portion of their equity. Very impressive scam.
Not sure who explained the recent changes to you but you are incorrect, that isn't what she is saying. The compensation fields have been removed from the MLS systems completely. This is why the every buyer must now have their own buyer agency agreement in place PRIOR to seeing homes. The BUYER chooses if they want the buyer's agent to show them all homes regardless of how their buyer agreement gets paid, OR if the agent should just show the buyer the homes where the buyer is not responsible to pay for their buyer agency agreement. That's not steering, the buyer's control what they want to see. What Katie recommended is that the seller consider offering compensation so that the buyers' agency agreement cost to not stop a buyer from buying if they can't cover that newly added expense. Ultimately, what the seller wants is to sell their home. In reality, the sellers are benefiting the most because they are really making the buyer's pay for or negotiate with the buyer's agent instead of them.
@@gdelete8098but nearly every Seller is also a Buyer, unless they're cashing out of their rentals.
@@gdelete8098I must have watched a different video than you did.
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
Real estate and stock investments may be good decisions, especially if you have a solid trading strategy that can see you through prosperous days.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Grace Adams Cook for the last five years or so, and her returns have been pretty much amazing.
I appreciate you sharing this. When I looked up the woman you named and read through her credentials, it was obvious that she was a complete professional. I just need her to respond to the message I wrote her.
Good grief! My eyes are spinning in my head!!!
The NAR needs to make it clear that a buyer can self represent. Because many listing agents in Florida REQUIRE a signed contract to show tye home at all
Because that is the NAR rule for Realtors. They cannot open a single door without a signed Buyer’s Representative Agreement. Every Realtor in the U.S. has to operate under that new rule. If they don’t and they get caught the fine they have to pay is significant.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
I recently went to look at a listed house without an agent and the listing agent tried bullying me into signing her as my agent as a condition of looking at the property. Remax is the worst!
After considering the sell of my home I was ambivalent. After watching this video I am not considering sellling now. Too scary to think of being cheated or worse, the loss of my home.
Sell it yourself
Have an attorney review all contracts. This is just life.
Just sell it, don't worry about who get paid what. As long as you got the amount payoff, you want.
I sold my house 6 years ago, I told my dual agent I was only going pay 4% for both parties.
I got my house sold at the price I asked for.
I had two real estate agencies tell me yesterday....that they want 6%. I asked about the new law, and I was told "It isn't a new law, it's a rule, and we figure that if it's not broken don't fix it. SO THEY ARE STILL DEMANDING 6% NO NEGOTIATIONS This is with my photos, video, and I wrote the listing....so basically I would just be handing over a listing ready to go....and they still want 6% ....
So now you have to decide if it’s worth it to you. The goal of this video is to make sure you understand the situation. In your area the agents may still be demanding 3% otherwise you might not get the house sold. I don’t know the specific area. But you might want to look at an exp agent if you want a different conversation. I can give you a solid one in your area if you’d like.
Use a flatfee service....you can list and get it on the MLS for about $300, and just pay 2 or 2.5% or 3% to buyer's agent. Flatlist was the company we used. They were great!!! Honest contract, answered all my questions, sent me all the documents I needed....
@florencehendrick4781 I hope you move on to another agent who is willing to negotiate less commission. Its so high.
@@tinasmith8241 Who shows the property w/Flatlist, an agent or the Seller or lockbox or ?
Sell it yourself
The fact that most buyers can't afford to pay their agents is yet another sign homes are OVERPRICED.
It's amazing the hoops being jumped through by every entity with even the slightest impact on real estate to keep the housing market propped up!
When you consider that most Sellers are also going to be Buyers, it makes you really mad to think that a Seller could be paying too much commission.
Not all - but too many agents are bottom feeders. Low barrier of entry. Just sold my house, but told my agent no double dipping if the buyer is unrepresented or if he found the buyer himself. Instead, we agreed on 4% if it was the latter. Otherwise, 5% (2.5% to each agent).
There's other scams. Investor show in videos how to call a listing agent and convert them to help low ball the seller. Investor says "I have no agent. You can represent me under the table and get the hold 5-6% commission. And say they're "looking for more properties, can the agent help with those too?" Now the listing agent is eager to help the buyer and the seller never knows. Totally legal for the investor to do this because they have no contract. Totally illegal for the agent, but hey, doing illegal stuff is everyday business for them.
NOW THIS is content I love it as a new realtor.
Here I am wanting to sell my home and have a problem with agents asking so much for almost nothing. Considering trying myself, what have I got to lose?
Pretty much always have the discussion. It's hard to sometimes because it can become rather combative quickly but necessary. Always surprised how complicated we continually make straightforward processes.
We do not have this loophole in AZ anymore. All our contracts changed in August of this year. Also, it's my personal policy to not work as a dual agent. Not every agent is skeevy.
I agree. Good to know about AZ. Thx.
Just say NO to useless agents!
Kati. We fully interviewed an agent from Keller Williams and downloaded her materials. Two questions I hope you might address are: 1. She wanted at least a six month agreement for exclusive representation. I think that is excessive for both the time and the exclusive representation. Can I redline it out and make paper in ink changes and then ask her to sign first so she is the offeree. 2. She said she suggests a low market quote so she get more offers. I think that limits my upside too much. I would prefer doing my own analysis by calculating the average of the nearest ten homes for sale by adding the online ask price then adding the square feet. But dividing the two I can calculate the per square foot price for those ten nearest homes. Multiplying by my square foot house, I generate the reasonable asking price. She implied that she would not work as hard using that calculation because she wants a faster set of offers. How would you react to the that realtor? Am I greedy? Best, Robert
I’m a realtor here in Philadelphia and I would do a three month contract with an easy exit after 30 days if their homes not sold it for 30 days there’s something wrong with the way she’s marketing it or the price. However, I do agree with pricing the Home lower to get higher offers you don’t wanna price it higher. You will attack the wrong people and you won’t get your home sold in a timely matter
Thanks for your comment. So I think that the standard is really six months. You can ask for a shorter one for sure, but he or she may not do it. It really isn't that excessive when you consider that it typically takes 15 days after listing to get the pictures taken and in the computer and then 30-90 days to get an offer, and then another 30-60 days to close. Honestly, the lower you price it the more offers you will get and they will be stronger as well. But you don't have to list it at that. But if you overprice you are going to be on the market a while. You should check out my video on "why isn't my home selling."
As far as the square footage. Let's say you and neighbor A have the exact same square footage, but your house hasn't been updated in years and the other one has all new bathrooms, and kitchen. Is your house worth as much as that one.
If you overprice, you could be leaving a lot of money on the table. Take a look at some of my other videos to see. Good luck!
Run!
the listing/seller agent can gets another agent from the same company as a buyer agent if buyer doesnt have one so the commission stays in the company.
Is there anything a Buyer should have in the offer contract when buying a condo that is important not to leave out?at what time should certain things be in ( inspection, etc) so that it closes on time and not be running around urgently to sign on time. Besides looking at a cc&r, what do i look for ? thanks
I am buying and not have an agent yet but going to open houses on my own. If I walk into an open house, and want to make an offer, I can then go find and sign a contract with an agent as my buyer agent so he/she can write the offer ? that's ok ?
Listen! The agents are not giving the a buyer's agent any money so when you list the house they are absolutely trying to sell themselves and then Auto offering anything out but the seller of the home is under the impression that the 5% will be split between the buying agent and the selling agent that's not true so you know what it's best to just listed by yourself so many places to list and even on MLS for $99 I'm never going to use an agent soon as I find my house and if I sell I'm going to just sell on my own
When you do sell, be absolutely sure to deposit any earnest $ or down payment (and eventually full funds) through a title company and don't let them disperse any refunds w/o your signature. You want them to handle all that since you can keep the $ out of the buyer's reach until all else is finished. But you don't want to hold it yourself, bc if the buyer has a slipup b4 all's done, they (usually) can't sue you to get any $ back since it's the title company holding the $, not you. .......................... Conversely when you're the buyer, make sure the title company's holding everything until completion bc you don't want to lose if the seller can't prove clear title. The woods are full of bogus sellers who don't actually own the property in the first place! Go to the county office and get them to show you how/when the property was first transferred to the alleged seller. Then contact the person(s)/company from which *they* allegedly bought it and find out if they know somebody's selling that property. ............................ Do this in person also, not just online. I'm lucky in that my county maintains such an ancient record system that nobody can change the ownership w/o appearing before them in the flesh. Plus in remote TinyTown, nobody could impersonate the few people here since everyone knows everyone else. When I die, my executor will have to produce my death certificate, a copy of the paper naming them as executor, plus the will in which they're bequeathed the property. ............................ Lastly, in case you live on the property in question, be aware ahead of time what wiggle room the law gives you in vacating when the sale closes. I mean how long past the agreed-upon date do you have to begone, regardless of the change of ownership. I became ill just b4 departing the last property I lived on and sold. If I hadn't kn own it would be a month b4 the sheriff could evict me, I'd have been in worse trouble than when I found out the buyer was a drug dealer. ............................... Which brings me to my last point. Absolutely NEVER take anything but ALL cash due on closing. One, it can't be traced unless the buyer robbed a bank; and two, your own mother could die or even renege on a seller-carry deal and then where would you be??? Some family members tend to think they can get away with highway robbery. Don't sell to them if you can help it, and don't listen to sob stories either.
So we live in tn. Have a property listed in the mls. Can a contrat by attorney or nar contract be submitted...non mls board?
I have been sitting trying to absorb every single thing you said. You explained everything so well. Thank you much.
Thank you!!
There a lot to consider here but the bottom line is the fee paid to get professional help in listing and selling your home should not be tied to the price of the home. An agent doesn’t deserve twice the pay for a house that’s twice the price. And dual agency is obviously wrong. Agents should be fee only service. I’m about to sell a 2 mil house. There is no way any agent can justify earning $60k for listing my house. The system has not been adjusted for rapidly escalating home prices.
Go for it. Last house I sold with a 1-1/2% commission. Seller wrote the contract.
@@mike73ng I sold a house worth 2 million and had the listing agent agree to a 1% commission, this was many years ago but would do it the same now. More than fair
@@kathrynp7595 how much did you offer the buyer’s agent?
Home values in some areas went up about 40% in 2020-22. So agents got a 40% raise. Did you get a 40% raise? Did the cost of being an agent go up 40%?
There have been flat rate "agents" for decades. The easiest only puts your house on the MLS and websites for about $200-400. You do the rest. Your phone number is in the listing so everyone calls you directly. Order our own pic for $125-150. You get rent a sign and lockbox too, but worthless imo.
Put in the listing "3% to buyer or buyer's agent". I also put "Seller pays all closing costs" because the reality is buyers actually pay for everything. They're the only one putting into escrow. Seller never sees the money for commissions, repairs, closing costs, whatever. The market value, appraised value, assumes 5-6% in agent commissions. That amount was never ever going into the seller's pocket. So I list 3% under market. That get's way more buyer interest than a listing agent could ever generate. I net the same as if I used a listing agent. To me no listing agent is also way easier.
If seller is still recommended to pay the buyer's agent then what is the reasoning of the Realtor Board to change this is the first place? Seems to be extra hassle, for nothing. Dual agency is more work since agent has to walk the client on both sides through the mechanical and psychological process for the hiccups and to close smoothly. Why not the agent get list and buyer rep if that is what happened? The seller and buyer can certainly be informed of the dual agency relationship but to be tight lipped since agent represents both buyer and seller, don't say anything you would not want the other party to know. Buyer and seller can ask for a recent market analysis and no reason to not get neutral and/or public information to be informed.
Why the change since seller is still recommended to pay buyer's agent?
My agent (who I had for years) always wanted the full percent. She asked me EVERY HOUSE~ I gave it to her. I'm really disgusted.
That might have just been her way of doing business. If you liked what she did, then it was worth it.
I agree, you should be disgusted at yourself for overpaying
She said it all when she commented on there were a lot of how did she say it not really good agents. I've ran into that many times.
My sellers agent told me while writing contract that there was no place on contract for a negotiable buyers agent commission. I wanted to negotiate commission pay on a case by case basis with agent. ???
I am selling my condo and signed a contract for 2% to seller. I made no commitment to any buyer for any percentage. This is negotiable and refuse to commit to anything to anyone that is not directly working for me. Was this the right thing to do? As a sales person, I believe you should leave as much as possible 6:18 for negotiation. I also signed a four month contract. I believe if they want to recoup their money for listing, they should be really motivated to sell quickly.
I found my own buyer, but I made sure in my contract. It said that there was a seller and a buyer fee… This was in the 1990s and it was 7%. I did not have to pay half of that fee if I found the buyer. it went fine, but that was a long time ago and I had a very good real estate agent that a trustworthy friend had used many times.
My house goes back on the market next week and there will not be a dime paid to a buyers agent and only 2% to the selling agent they can take it or leave it. Agents are dime a dozen and they all suck. DOJ wants to hear about agents doing a run around! Hope they make examples out of a few in short order. Real estate agents need to be put in their place! They have scammed the american people long enough. This lawsuit didnt go far enough! I expect more will follow.
100%. even the agent who made the video says r.e. agents have a very low barrier to entry.
I agree with you 100% In Texas the commission splits were in the actual contract so it was already disclosed. .
Thanks for the video Katie. I know I’ll have to watch it a few more times & take notes.
I think a buyer should have to pay their agent. Because they can't afford it on top of the mortgage is a poor excuse. Basically, it sounds like the seller is still paying both agents. Doesn't sound like much has changed except the buyer's agent's commission isn't funneled through the seller's agent. Either that or my comprehension is lacking. And when does the seller pay the buyer's agent? Hopefully, it's after closing from the proceeds.
It does sound like sellers are still paying both agents, doesn't it? Best con ever pulled in the world imo. Follow the money....
House sells for $500k. At close buyer puts $500k cash on the table. Escrow agent cuts out $15k and pushes it across the table to the listing agent. Cuts out another $15k and pushes it to the buyer's agent. Who paid the agents? Did you see the sell write a check to anyone?
How about another perspective... "market value" always assumes 5-6% will go to agents. It is built into the market value, the appraised value, and lenders agree that 5-6% of the "value" will go to agents. Meaning built into the system is the offer price the buyer makes assumes the buyer will pay the commissions... and everything else. Closing costs, repairs, whatever the buyer wants will be paid out of the money the buyer puts on the table.
This "confusion" has been the cornerstone of the agent scam telling buyers "don't worry, the seller pays". Oh, your services are totally free!! Cool. That's mainly what the NAR lawsuit was all about, though in a roundabout way. The reason agents could lie and not be charged with fraud is because of the collusion with listing agents putting in the listing contract this strange "I get 6% and pay buyer agent 3%." Super odd thing to have in a contract isn't it? In court they can say the buyer gave the listing agent 6%, who represents the seller, and then the listing agent paid the buyer's agent. In theory the money was the seller's money for a microsecond. In theory because that never even happened. The listing and buyer agents are paid directly out of escrow. It's a shell game just so buyer agents can say "seller pays".
Pretty funny 99% of retail buyers and sellers believe "seller pays". This was one way investors were hammering retail buyers in 2020-22. An investor can offer 3% more than a retail buyer with an agent. Retail buyers couldn't figure out why they were getting beat on house after house. Buyers with agents always have to bid 3% higher just to match buyers without agents.
I already knew 20 years ago that before executing any agency agreement -- whether as seller or buyer -- that you have a clause preventing "double-dipping" on commission.
It isn't always disclosed. A listing agent can be turned by a buyer into pushing a low offer on the seller.
I was also told that anything less than 6% the realtors will not show your home.
Not true !
Our realtor did anything prevent showing us any home that was below the fee he wanted. He was very obvious about pushing us into a new build that he would be getting a $20,000 realtor fee. He pushed us into a house that we hate and the area is not for us. He started saying this will only be your two year home anyways so it's fine for now. It was too late for us to back out at that point, but we definitely would never have bought a house that we only intended to stay in for two years. There are some really horrible realtors in the Austin area.
@@analovesTexasSeriously?! He may have “pushed” but he could not force you to sign. No one would ever convince me to sign on the dotted line for a house I “hated”.
How is this any different than before? The listing contract has always been for the entire commission amount with the listing commission only being split if there is a separate agent representing the buyer.
Auction off to top bidder online! Hire an auction company that handles payments, showing period, appraisal, titling, paperwork (lawyers), and all inspections. Close the window to show the house and eliminate the agents
Great idea
Common practice in Australia for years. About 10-25% of houses are sold at auction. Few other countries too. Really only works when there are many interested buyers.
However, the reality is every home is sold in a kind of auction because the seller is also bidding. If you offer $500k the seller has to think "Would I rather keep these asset or sell?" If they think it's worth more to them than $500k they counter with their bid to keep the house. If the buyer passes the seller wins the house.
My friend is looking to sell their home can you recommend an auction house I think it's a fabulous idea
Auction could result in your home getting sold very low price. Owner should specify a starting bid.
Put an ad in the news paper. Full page is cheaper the agent fees.
I would never agree to dual agency
It's not always disclosed. Investor buyers have videos showing how they convert a listing agent to helping them get the seller to accept a low offer. Seller never knows. Legal for investors, illegal for the agent but apparently about 75% don't mind breaking the law as that's about the guess investors say do it.
Dual agency really isn't much of a change. Listing agents represent themselves. Just because they tell sellers they're on their side doesn't make it true.
We declined duel agency at our Realtors suggestion. She believes it is unethical. We agree
@@waterbug1135 I wouldn’t sell to a investor, I would want my house to go to a new family. Last house we sold we had a great offer from a Chinese investor, we said no way
You misspelled dual, but really your spelling is more accurate for the situation.
@@Steve-ou8nw Haha, fixed it. I’ve always been a horrible speller 😩
I'm settling on a house tomorrow and did the exact same thing. However I was very clear on day 1, I do not want representation and want it as 3% as sellers assistance in instead. 10k off the house and 3% kickback. A realtors before me ( in this exact same neighborhood) said no and ALL commission goes to him. He never presented the offer to the seller because he knew they would say no...ok broke boi. Now 2 months later his house dropped their price 10k. I cant wait to meet the owners, their a block away. I'm getting a much better house.
Investors know to go to the owner directly. Normally county records have the owner info. Pretty easy to find. Make an offer directly to the owner. Let the owner scream at the listing agent. If there's a clause for canceling the listing let the owner do that. Or let the listing expire and buy then. The owner is likely to be so mad at the listing agent they will refuse to let the house be shown.
Thanks for this. Another black eye for the real estate profession. Definitely getting a lawyer on any deals in the future.
Just keep agents out of it. I flip houses and always list 3% under market because I don't use a listing agent. Listing agents do nothing to sell a house, zero, nada. And they just get in the way when negotiating and are rarely on your side. Asking 3% under market is a way better use of that 3% to attract buyers.
In the listing I put "3% to buyer or buyer's agent". I've had buyers with agents call me directly saying they have an agent but want to buy without that agent and want advice on how. So now the house looks 6% under market and it hasn't cost me a penny.
I also use the lies agents have trained buyers to believe against them. "Seller pays all closing costs." This also doesn't cost me a penny because in the history of real estate no seller has ever had to put money into escrow. Buyers have and will always pay all closing costs, repairs, whatever. Thinking sellers only care about the net. If your offer is high enough and you want a new roof...sure, no prob. This business about negotiating closing costs is really about lowering the offer price. You offer the price a seller wants, they accept and then try to keep lowering the price.
When a buyer is interested, or makes an offer I tell them they can walk away at anytime before the keys get dropped in their hands and get their deposit back. This is just reality. I'm I going to hire a lawyer and tie up my property for months while suing to get their deposit released from escrow? No freaking way. Agents love to tell seller their contract is air tight and the buyer will have to perform. It's nonsense. About 1/3 of purchase contracts never execute and virtually all sellers agree to release the deposit back to the buyer. Why try and scare buyers? Better to make them feel safer.
You just need a good and experienced agent who understands. The point of the video is to make sure you know the questions to ask.
I would never sell our property without a real estate agent- ours is worth her high hourly rate which I feel matches her education and skill.
Hearing this story just confrms what a sad industry it has become. I once commented on a realtor's channel how I was preparing to sell my home fsbo, and I was delighted when the buyer was someone who had struggled to get a home in this market (there were still bidding wars, crazy prices, etc) - so I agreed not to list the house. Many who commented gave me praise for not just trying to get top dollar (I really wasn't looking to get every penny I could get - if I sold it for less than it was worth, it didn't matter to me since helping a buyer get his first home was more important). But one comment was so disturbing. The commenter said he was a broker and basically told me what a fool I was and that sellers like me realtors laugh at because they know they'll be taking advantage of them (now I see what he meant after watching your video!). I basically reminded him that had he forgotten the oath he signed when he got his license (I was a realtor many years ago, and I planned to follow that oath even though I was a fsbo)? He back peddled, of course, but still it saddened me to read his comment. I hadn't closed just yet - at that time - and of course was concerned that maybe it could happen. I had agreed to pay the buyer's agent's fee - knowing I was saving the listing agents side (but I still had to do a lot of work to keep the contract going - as I did as an agent years ago). It all turned out perfectly and the buyer's agent was true to her word on what we agreed would be her fee - and that was all that I paid, aside from my attorney and taxes. It was a wonderful transaction and everyone went home very happy.
Thanks for your comment! I always think that if you can sell it fsbo and it’s worth it to you then do it
Who do we professionally file a formal complaint with NAR, DRE? Please advise.
I always advise you talk to the agent first. Then elevate it to the managing broker. I always encourage open communication first. Then you’d go to the local association or the state association. What’s the issue?
I am in washington, realtors only want to show the house once and expect you to comply with it. then they tell me you HAVE to have and agent but you don't I have bought and sold many homes with out an agent and it has been fine. I don't need an agent and will find a fsbo and go that way. they are too arrogant and cocky here. you can do it yourself.
No reason to limit yourself to FSBO. If a listing agent refuses to pay you the buyer agent fee in the listing contract you can always walk. But I've never run into a listing agent who wasn't happy to give up the buyer agent commission.
Even better is to do what many investors do...knock on doors, mail flyers to neighborhoods you're interested in. "Wanna sell?" You can get in before an owner signs a listing agreement and they're happy to give you that 3% instead of an agent.
There is a problem with many FSBO deals. The owners are often dumb as a rock. They're all pee'd off at agent (rightly so, but it should cloud judgement). Most feel entitled to keep both commission because they believe the lie "sellers pay". Reality is buyers always pay via the price. Buyer is the only one putting money on the table. But generally even these corn dogs can be talked into reality.
As an agent, there are several Brokerages now listing the seller and buyer broker commissions listed on a separate form, Beyond EXP. If the buyer agent comp is not stated, then who is to say the listing agent does not play games with buy agent comps.
Write it out as your clients wishes and negotiate from their
You’re talking about low-or medium-priced houses; in wealthy areas buyers can afford to pay the buyer agent commission.
I would never expect a listing agent or managing broker to educate me - that’s what I pay or real estate attorney for as she is the only one who puts our j retest first.
Thank you for this information Kati! It is clear and helpful!
Hold on here. A sellers agent is supposed to go out and get a buyer, when they do they turn to both the buyer and seller claiming they are representing both? That by logic is not fair and honest representation.
Who said agents were fair and honest? I mean besides agents. Their job is to get sellers and buyers to sign insane contracts.
Trolling an agent who is trying to protect consumers?? If you watched all of my videos, you'd see that I am protecting consumers. I only thought the agents would troll me... I didn't think a consumer would troll me... But you obviously are not an agent.
But now I see... you are a sketchy investor!
Now it makes sense... agents get in the way of you scamming home sellers out of their life savings when you go in with a low ball offer. And if I am educating sellers, then you won't make as much money. So THAT is why you are trolling me. To scare sellers away from being educated... got it.
My viewers know that I am on their side... unlike you.
@@KatiSpaniak💜 Appreciate you so much
@@kzf8978 Right back at you!!!
@@KatiSpaniak I read that comment as someone who believes it is unethical for an agent to represent both buyer and seller, which is what you said as well. I honestly don't think it was trolling, or a dig at anything that you said.
I’m an eXp agent in TN and the pushback I’ve gotten from buyers’ agents on my last 3 listings shows how untrained they are on all the changes. EXp isn’t perfect but they certainly prepared me to understand and explain the changes and do things with utmost care to abiding by the terms of the NAR settlement.
For sure!!
I am not a fan of dual agency. Loyalties are not clear. Scams can be perpetrated. That said I signed a 2.5% for my listing agent and 4% if she handles both side. Otherwise, I am not paying for the buyers agent.
Love your clear and concise videos Kati. Thank you😊
now is there a % the seller pays a real estate agent ( what is norm )
Ive never sold a house yet but why can’t the owner just sell directly to a buyer? All these middle men/women sounds shady. Hiding things in contracts and not being straight forward.
You can sell directly using a local title company. The title company will give you the contracts, and handle all the details of the closing. You just have to do all the leg work; hiring surveyor if needed, coordinating meetings around work schedules, etc.
I Canada the agent can not represent both buyer and seller, conflict of interests
What about the case of both selling and buying?
This is the most stressful and complicated situation
I thank you in advance for explaining it under the new law 🙏🏻
If you are buying and selling with the same agent?
It seems to me that if I’m selling a home I don’t wanna pay the buyer agent. Period… so I would be shut out of the market from other buyer agents? Isn’t there something unlawful about that? Or if I was a buyer and I wanted to go to a sellers agent and tell them I buy it for myself and not an agent can they just go ahead and pay their agent only? What is wrong with that? And I realize that real estate agents have been making a lot of money much too easy for many years and are spoiled. It’s time for a change and let the consumer get the benefits of a legitimate contract from an attorney
Well. Why would a buyer agent promote your home if they weren’t going to get paid for it? Their buyer would have to agree to pay them. It can happen but that’s definitely not illegal.
You can definitely go to a sellers agent if you don’t want to be represented.
Can you recommende a listing agent for south west France ?
Probably. Fill out our form and let us try. I have a big database.
I have a hard time understanding legal things. I think you did a phenomenal job of explaining this!!!
Thank you!! This is complicated!!
it still doesnt address the fact that agents are making too much in commissions. Thats 50,000 on a million dollar home
If a seller’s agent initially offered to accept a 2.5% commission provided the buyer covers their own agent’s commission, but then found an unrepresented buyer and explained dual agency to both parties (though it’s unclear if there’s a signed agreement allowing dual agency), is it ethical or permissible for the seller’s agent, now acting as a dual agent, to request the buyer to pay a portion of their commission?
I'm not an agent however how could honestly and completely objectively and unbiously represent 2 different sides? I think it would be very rare indeed you would find someone who could represent both parties to get exactly what both parties wanted equally and fairly.
I am fully on-board with this video.
I am doing the same as you! I am an Realtor in northern VA and I work the same way as you re:commission.
GREAT content.
There are “a lot” of agents who “do not” know this information.
Thank you very much for this! I do know there are agents out there that believe this and want to protect the consumer. I wish we heard from more of them!!
Dual agency is prohibited in Florida.
Don’t they just it “transaction broker” over there?
Easy to get around that law.
yes. It is considered transactional
I don't mind paying the buying commission, but I have a real concern with dual agency and whether the agent is looking out for my best interest as either a seller or as the buyer. How is that not a conflict of interest?
In the state of Wisconsin a dual agent must remain neutral. There’s no point in that unless you just want someone to handle the paperwork.
Not in North Carolina. Which state is this woman talking about?
In Florida Dual Agent or both sides is against the law I thought
How is sellers willingness to compensate buyers agent conveyed to the “market“?
It's not anymore. It used to be in the MLS, but it can't be anymore
The attorney is the buyers agent.
Now I know why I rent. Everyone rents in this system anyway when you include property taxes. Why go through all this corruption and just invest your money in something else other than property and a home that I found was pretty much a money pit. I worry about none of these issues renting. I feel much more free now than I did owning a home for 11 years.
Nothing wrong with being a renter. I don't mind being a landlord and taking on those expenses and risk. Enabled me to retire at 45. Example house I bought in central Phoenix for $200k in 2009 as a short sale. Mortgage payment of $675, taxes $133/mo, insurance $80/mo, say $100/mo maintenance, say 5% cost on the $40k down payment so $167/mo so $1155 cost all in. Rented in 2009 for $800/mo so holy crap I'm losing money. Rents and the home value went up while most of my costs went up much less. That home appreciated an average of $2000/mo over 15 years and rents today for $2200/mo. Today I make about $3000/mo on the rent and appreciation. That's about an 18% return today. Seems like an OK return to me.
I need to sell my house & my younger brother is dying to buy it. I have been the one stalling. I am getting older & it is a big piece of property, plus taxes keep going up. I know all of the comps in my area bc I have been following my area for several years & there have been many recent sales. The house needs some work. I feel like I need an agent to set a fair price as I don't want any family issues down the road where my brother feels like he paid too much or I feel I gave the house away. How do U handle a commission when there is no listing, no pictures, no showings, & I am bringing a legitimate buyer, etc.? This can be a quick closing as we can get anything questionable done very easily.
Honestly, I would just offer an agent a flat rate to represent you. It can be whatever you feel comfortable with. They might ask for the full list side of the commission, but you can negotiate. Make sure you get an experienced agent though. It's just like hiring an attorney
You need an Appraiser you both trust and a Real Estate Attorney to handle the transfer. You don't need a Real Estate Agent.
I’ve had 3 experiences - 1 very good agent, and 2 shady (one was a bully / manipulator, the other was just a liar).
So sorry to hear that!!
@@KatiSpaniaklove your videos- plan to watch again! Great information!
@@P5Cowdrey Thank you!
Why didn't his lawyer catch this and follow up with the agent?
I'm confused.
Never found an honest realtor yet, except for myself, and I was only licensed long enough to buy a few personal investment properies during the downturn.
Wow! That's a harsh statement for someone who admittedly never actually worked as a realtor.
It seems that the only way a Dual Agency arrangement would be ethical if a "contingency" understanding were involved. If working though an agency that represents properties, it would seem logical and ethical if the agent works on behalf of a client to buy a house on the condition of the sale of the client's house.
I learned decades ago that dual agency is illegal. If there's a dispute, a court will only view the agent as the seller's agent. It's so apparently unethical.
Huh ? I always put that in contract ... if no buyer does not have an agent selling agent gets half (2.5/3)
That wasn't in the contract. There was no section on what happens if a buyer's agent isn't being used. Where does the money go
I would add it before signing ... ammend it .. I am an attorney but any savvy seller should insist on it. Strike out provisions in that form. That oversight will now cause a ....... match.
Definitely good information for consumers.
No matter how you word it, both the seller agent and the buyer agent work for the seller because that’s who paying you the commissions. Btw, with today availability of the internet, you don’t really need a buyer agent because any buyer can get online and find the listings they like to look into. Unless of course, the buyer uses a real estate agent to look for all the listings that they can do themselves.
Does this law affect commercial property sales?
No. Structured much differently because there the parties are normally much more knowledgeable and won't fall for these retail scams.
Commercial agents have generally always operated this way. When someone is purchasing a commercial building, they write the compensation into the Letter of Intent.
How do you find out who is the managing broker?
The agent's company is owned by a broker. Company name is normally on the agent's card. You can call directly and ask for the agent's broker if the company has multiple brokers.
You can call the brokerage and ask who the managing broker is
How can the listing agent claim they are "Dual Agent" when they never had the buyer agree to representation in writing? That story makes no sense and any reputable brokerage would not risk their E&O insurance for a single commission from an agent who doesn't know what forms she needs to complete.
Which is why she didn’t get paid on the transaction. The managing broker had to intervene
They don't need the buyer to agree. Dual agency is built into any listing contract that states the listing agent would pay a "licensed buyer's agent". When the sellers signs that they are agreeing to dual agency. Doesn't have anything to do with the buyer. If there's no "licensed buyer's agent" there's no bill to pay.
@@waterbug1135 Then the agent is not working as a disclosed dual agent. In order to work as a disclosed dual agent, a firm must first obtain the informed written consent of both the buyer and the seller. I agree with you that the buyer is not part of the listing agreement because they are not a party in that contract. However, that listing agent did not have informed written consent from the buyer and therefore can not be a disclosed dual agent.
@@waterbug1135 You are totally wrong. I hope that everyone reading your comments knows that you have no idea what you are talking about. You're just a troll trying to make sure that homeowners are not educated because you are an investor. Makes it easier for you to scam people out of their life's saving in their homes if the sellers aren't educated.. Dual agency is not BUILT into every contract. And you ALWAYS have to have the buyer agree to dual agency. Because, duh, the buyer has to agree to be represented by the listing agent which is dual agency.