Not evasive... Clearly at some point in time the "customary" rate was created. But as I addressed in the video, in my 20 years in Real Estate, there ALWAYS have been "discount brokers". There are "flat rate" brokers that charge next to nothing, (but thats the level of service you get for "next to nothing). You can get a FREE public defender. Or you can pay MILLIONS to a top attourney in a high profile case. Some people care about quality, some don't. There's no right or wrong... Why are attourney fees so high? Why are hospital bills absurd.. We could go on and on about "fabricated" pricing...
I agree. The fact that home prices have appreciated unnaturally, seven years worth in 2-3 generally, the labor required by an agent on a traditional sale has not increased. The power of the buyer contract is in the buyers hand “if the buyer is educated”. The “can and will” agents are exactly why real estate should dematerialize the role of the agent. Nobody knows where this is going inevitably but it may end up being positive for both buyers and sellers, although not immediately.
This is true too. Back when there was no esign and you had to scan everything, and before smart phones, they did a lot more work. Their commissions went from 2,000 to 15,000 in twenty years, meanwhile the rest of the country's income barely went up 50%. When I see agents driving Toyota Corollas and Camrys, I will believe they are fairly compensated. No reason for an agent to drive the same car as a doctor who saves lives and went through a grueling education.
Very good job laying out the options and complications with these changes. I agree with you that politicians sorely lack foresight and usually just create a bigger problem by getting involved.
Are you going to tell your dentist that it should charge a flat rate but all dentist should be charging the same amount how about your plumber? Should your plumber and plumbers charge a flat rate and be paid the same many sellers have been spoiled and recent years, but there’s been times where homes literally would not sell. They would just sit on the market for a year 234 sometimes selling a home is very difficult.
Actually, the builders still offer buyers commission. But you may be right irt people at certain price points just saying hell with it and buying a new home. That’s actually been going on for a while.
great video, Brian ... stockbrokers from the 90's know where this is headed, they used to make a percentage when you bought financial instruments, AND a percentage when you sold them... today, you can buy or sell $1 million worth of debt or equity through etrade for next to nothing...of course, the execution will be terrible, unless you plan to buy and hold... the next lawsuit should consist of Realtors suing NAR for failure to perform and paid dues / fees for access to the worthless MLS ... make MLS free to everyone ...BYE BYE NAR, thanks for NOTHING!
It's entirely possible that this will impact demand and appreciation which could in turn impact sales price and the total cost of ownership. I think it's likely that agent compensation will come down on average which is debatable whether that benefits the consumer or not. I think it depends. I don't see buyer's agent compensation in the past as free. It was baked in to market value and ultimately financed over a long period which was very costly over a 30 years period. I'll be honest, now that I'm a consumer and no longer sell real estate, I prefer to pay my own buyer's agent to be my fiduciary with potentially less demand on the properties I want to buy. As always, the cream will rise to the top in regards to real estate professionals. I think the market needs to slow down some and perhaps, it's time for the agent population to shed some members. It will be interesting to see how it all plays out. I will admit, I'm glad I'm not still active selling and going through this fiasco! Most of the agents I coach have embraced it and seem ready to tackle it.
Some valid points. Yes, the strongest will survive.. The weak will perish. Realistically, not a bad thing at all for consumers. Greater barriers to entry overall produces a higher threshold. We'll see.... It shall be a very interesting next 6 months navigating through these waters!
Agents will be out of business…no more getting rich of the buyers…all the overpriced homes and buyers having to pay more than the home was worth last year is now over
@@irlhesaystoher 😂 From the guy who once tried to be a real estate agent but SUCKED AT IT! So now he trolls actual real estate agents TH-cam channels in his spare time when he’s not driving for Uber 🤣
Very well stated. As for me, if I’m forced to pay anything for a buyers agent I’ll simply subtract that amount from the offer. If the seller doesn’t like that I have another offer. You keep your house and I’ll keep my money. Thanks for an articulate video.
Bingo. That's how I sell all my properties... and I go to the listing agent when I find a property. Title Co does most of the work. I don't need a realtor to assist me and expect up to 3%. F that.
"The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help." ~ Ronald Reagan As true today as it ever was ...
Question, is there a section on that new form that buyers sign with their agent where the buyer agrees to a set commission that will be on the offer as a starting point? Let’s say 3% commission to be requested from the seller, then go from there?
The problem is the monopoly of the Realtor organization. The government should have broken it up to allow for competition and that would have driven commissions down to a fair-market price . What they did was make it harder for first time buyers and easier for Wall Street investors. I only wish that everyone planning to buy their first home does so soon before that dream becomes impossible within a few years.
Thank you for putting the blame where it needs to be. Too bad the poor ignorant masses will never actually figure out what's going on (and they don't want to either). 🤑
Biggest question you evade is why are commissions so high to begin with? No transaction is worth paying 15k to a buyer agent.
Not evasive... Clearly at some point in time the "customary" rate was created. But as I addressed in the video, in my 20 years in Real Estate, there ALWAYS have been "discount brokers". There are "flat rate" brokers that charge next to nothing, (but thats the level of service you get for "next to nothing). You can get a FREE public defender. Or you can pay MILLIONS to a top attourney in a high profile case. Some people care about quality, some don't. There's no right or wrong... Why are attourney fees so high? Why are hospital bills absurd.. We could go on and on about "fabricated" pricing...
I agree. The fact that home prices have appreciated unnaturally, seven years worth in 2-3 generally, the labor required by an agent on a traditional sale has not increased. The power of the buyer contract is in the buyers hand “if the buyer is educated”. The “can and will” agents are exactly why real estate should dematerialize the role of the agent. Nobody knows where this is going inevitably but it may end up being positive for both buyers and sellers, although not immediately.
Been that way forever. You are stupid.
This is true too. Back when there was no esign and you had to scan everything, and before smart phones, they did a lot more work. Their commissions went from 2,000 to 15,000 in twenty years, meanwhile the rest of the country's income barely went up 50%. When I see agents driving Toyota Corollas and Camrys, I will believe they are fairly compensated. No reason for an agent to drive the same car as a doctor who saves lives and went through a grueling education.
Let’s not forget lawyers. They keep you out of jail or your X from taking half of everything she didn’t earn 👍👍
Should be a flat rate. Just because a house went up from $500k to $1m doesn't mean commissions should either.
Great content!
Glad you appreciated!
Excellent job, explaining the shortcomings of this new law. I missed all these negatives.
Very good job laying out the options and complications with these changes. I agree with you that politicians sorely lack foresight and usually just create a bigger problem by getting involved.
@@juliewilhelmi5791 Oh my gosh yes..
Flat rate. And maybe commission for over performance.
Are you going to tell your dentist that it should charge a flat rate but all dentist should be charging the same amount how about your plumber? Should your plumber and plumbers charge a flat rate and be paid the same many sellers have been spoiled and recent years, but there’s been times where homes literally would not sell. They would just sit on the market for a year 234 sometimes selling a home is very difficult.
great 💥
I think we're going to see a lot of buyers purchase directly from new builders directly, bypassing representation (more so than before).
Actually, the builders still offer buyers commission. But you may be right irt people at certain price points just saying hell with it and buying a new home. That’s actually been going on for a while.
great video, Brian ... stockbrokers from the 90's know where this is headed, they used to make a percentage when you bought financial instruments, AND a percentage when you sold them... today, you can buy or sell $1 million worth of debt or equity through etrade for next to nothing...of course, the execution will be terrible, unless you plan to buy and hold... the next lawsuit should consist of Realtors suing NAR for failure to perform and paid dues / fees for access to the worthless MLS ... make MLS free to everyone ...BYE BYE NAR, thanks for NOTHING!
AGREE
Pay the buyers agent per hour. Like an unskilled lawyer.
Great video. Hopefully we can lobby to raise max seller concessions for VA loans to compensate for commissions.
It's entirely possible that this will impact demand and appreciation which could in turn impact sales price and the total cost of ownership. I think it's likely that agent compensation will come down on average which is debatable whether that benefits the consumer or not. I think it depends. I don't see buyer's agent compensation in the past as free. It was baked in to market value and ultimately financed over a long period which was very costly over a 30 years period. I'll be honest, now that I'm a consumer and no longer sell real estate, I prefer to pay my own buyer's agent to be my fiduciary with potentially less demand on the properties I want to buy. As always, the cream will rise to the top in regards to real estate professionals. I think the market needs to slow down some and perhaps, it's time for the agent population to shed some members. It will be interesting to see how it all plays out. I will admit, I'm glad I'm not still active selling and going through this fiasco! Most of the agents I coach have embraced it and seem ready to tackle it.
Some valid points. Yes, the strongest will survive.. The weak will perish. Realistically, not a bad thing at all for consumers. Greater barriers to entry overall produces a higher threshold. We'll see.... It shall be a very interesting next 6 months navigating through these waters!
Agents will be out of business…no more getting rich of the buyers…all the overpriced homes and buyers having to pay more than the home was worth last year is now over
@@irlhesaystoher 😂 From the guy who once tried to be a real estate agent but SUCKED AT IT! So now he trolls actual real estate agents TH-cam channels in his spare time when he’s not driving for Uber 🤣
Very well stated. As for me, if I’m forced to pay anything for a buyers agent I’ll simply subtract that amount from the offer. If the seller doesn’t like that I have another offer. You keep your house and I’ll keep my money. Thanks for an articulate video.
We will be doing a lot of for sale by owner with lawyers
Bingo. That's how I sell all my properties... and I go to the listing agent when I find a property. Title Co does most of the work. I don't need a realtor to assist me and expect up to 3%. F that.
Well, that's what America gets for voting democrat
If you’re a seller this is a big savings.
@@mike-uw6wt right up to the point where you go to buy right after you sell genius..
great explanation 👏
"The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help." ~ Ronald Reagan
As true today as it ever was ...
Question, is there a section on that new form that buyers sign with their agent where the buyer agrees to a set commission that will be on the offer as a starting point? Let’s say 3% commission to be requested from the seller, then go from there?
The problem is the monopoly of the Realtor organization. The government should have broken it up to allow for competition and that would have driven commissions down to a fair-market price . What they did was make it harder for first time buyers and easier for Wall Street investors. I only wish that everyone planning to buy their first home does so soon before that dream becomes impossible within a few years.
@@beaumac You lost me at “the government should have”
Thank you for putting the blame where it needs to be. Too bad the poor ignorant masses will never actually figure out what's going on (and they don't want to either). 🤑
Ah yes, the government stepping in to make things worse. 🤣
Ronald Reagan, “Most Terrifying Words - ‘I’m from the government and I’m here to help.’”
Thanks to Cackling Scamala and Sleepy Joe's administration 😅