I am guessing this is more in line with what the root issue is.. whoever is siphoning off of the commission of realtors needs to stop. Sellers are tired of footing the bill for things they don't even know they're paying for.
Congress also needs to step in and get the insurance companies under control and wake up the insurance commissioner. Raising rates 200 or 300%, or dropping policies as they are doing in CA is criminal. There is Skulduggery going on.
Agents inserts themselves into the equation, serve as a broken phone and collect money. No more of them. From now on I'll buy and sell without them. Useless and obnoxious
NAR is the 2nd biggest Lobbyist in US. Let that sink in. They just paved the way for Corporations and other deep pockets to be the only buyers instead of average home buyer. Prices of homes will not drop due to that change and seller will pay less commission but....seller has to move somewhere, so they have to become a buyer, hence why they would still pay commission of buyer (perhaps little less until they have to be new buyer again). Either way, prices will not change, just burden will change.
If I'm being honest... which usually gets me some hate... I've been watching real estate agents drive around in fancy cars, with nice clothes, that have ridiculously nice homes and feeling a little annoyed about it. Mostly because I know that it's paid for with my sweat equity. That being said, I think you're right. I think that this opens the door for shady deals. I really wonder what the fix is.
@IsaiahJoel-oh3re dude I work as a nurse. You wanna come see how cake my job is and see if my pay is worth it 😂. I'm sincerely not trying to put down realtors. I don't doubt she works hard. Some in the industry make y'all look bad.
I've bought over a dozen houses and made offers on many more. In every case the buyers agent was practically useless. They submit offers online and disappear until the closing to collect their huge check. Its time the buyers agents work for a flat $500.
If a buyer truly wants to be savvy and not feel like they are being hoodwinked, the benefit of this is that it may force buyers to do their own due diligence and research for real estate. It may also force buyer agents who aren’t good to drop off.
Thank God the rules are changing! Real Estate agents are not worth the 5 to 6 percent commission they seem to think it's their due for driving a few people to see your property. You work for years getting that equity up and in they come and take 6 percent of that money. How much is that an hour? It's robbery, it's what it is. So, if it's the end of the real estate agent, I say "good riddance!"
I think the work is worth what you negotiate! Agents should have to compete just like any other profession. I might be willing to pay 3% to an agent depending on what I get but it shouldn’t be the same for every house. There’s no way my real estate agent was worth the $58,000 that we paid on our $975,00 house compared with the exact same work for the $350,000 down the street. They got the same MLS, same open house, same photographer, same contract writing, same everything yet I paid $21,000 more? For what exactly?
@@auggiedoggiesmommy1734You paid for more potential head aches, bigger potential liability. Just my guess. That said, house sellers make nearly the same as house builders. As a member of the construction community, maybe the grass is greener on the other side of the fence.
I agree that this settlement was terrible. As a buyer, I'm really upset by it. Do you think new home builders will still offer the buyer's agent commission?
The amount that the buyer will pay for an agent will just roll into the note. It is common practice to roll in a roof or closing cost etc.....This is what I believe will happen. Bank's need to make money and they will allow it.
My house sold for $975,000 tell me what I got more than the house that sold for $350,000? I didn’t get anything different but that agent got a LOT more selling my house. Really, I am interested in figuring out what I got that was worth $37,000 more?
Didn't you factor that amount into your selling price and agree to give out that commission? You had every right to negotiate that to a price that you felt was fair. Most sellers are afraid to negotiate the commissions on their listing (like you were).
Your agent had to work with an entitled jerk, which would have been less likely if they were selling a $350k house. That’s why they get paid more to sell houses for people with more money.
This guy has no idea what he's talking about. Very simply, the seller no longer has to pay the commission of the buyer's agent, which is the way it should be. Case closed. F all real estate agents. They're all crooks.
I'd rather have 3 listings at 1% than 1 listing at 3%. Especially now a bunch of unrepresented buyers are going to be running around. I'll scoop them up and represent them and work my buuer commission into a deal. Shoot I'll be doing more biz in one month than most do in a whole year.
Why not a flat fee? Why do more expensive homes have to subsidize less expensive homes? Do you work that much harder (if any at all) to sell a $3M home vs a $500K home? Why should a $3M dollar home cost six times as much to sell? This is why I do my own buying and selling.
Buyer agents, that are paid by the seller agent, work for the sellers agent’s interest. Buyers agents need to be paid by the buyer if they will work for buyers.
In my opinion 1% listers will go away. That “worked” in the market we had because they would charge 1 to list and pay 2.5-3% to a buyers agent. Now they won’t have the buyers agent on the other side trying to make the deal happen. I see listing agents charging 4-6% in the future. They are gonna do twice the work and have to be at almost every showing. The price of home ownership ownership just went up. 😢
Some people think that they will have an attorney write contracts. What will happen when you must write multiple contracts because you'll lose most of those bids. attorneys will write if you continue to pay. GOOD LUCK!!!
Buyers pay for everything- they pay your asking price, which has the commission included in listing price. Without a buyer’s funds at the closing table, nobody gets a check.
thats not 100% true... maybe in some markets or the cases that generated the suits but all commissions are negotiable there is no set split or percentage.
I've had buyer agents not fulfill their fedutariy duties cause they don't want the price of the house reduced, to receive more commission. So I think you should educate yourself to protect yourself regardless. Eight percent of agents have no more knowledge that the average person anyway. The agent would sit at home while the buyer is on zillow doing what the agent should be doing for their commission.
Exactly ... what a mess, some of these buyer will find themselves in. But I guess the public will have to learn the hard way.. if this is the route we go.
No, it's because the NAR was losing billion dollar lawsuits. They had to cut bait or they wouldn't survive and the large brokers would be taken down in lawsuits, too. There are also similar BUYER lawsuits going on because they're required to, in essence, pay ALL of the broker commissions via the purchase price they pay. The buyer currently has zero chance to negotiate any real estate commission in their deal.
If anything listing agents aren't going to reduce their commission by much maybe a percent as they will have to do more work now to sell them home if the seller is not offering out a buyers agent commission.....I know I won't as my work load just got larger .....make sure to get buyer agency contracts signed and commssions discussed with buyer and agreed upon.
Spot on about NAR...as a former licensed real estate salesperson, they also hold access to your electronic "lock box" access and the use of the "logo" / and that popular term for a real estate salesperson. You have to pay to play...No Thanks!😂
If this is the case, I think buyers need to learn how to inspect a home, understand how to value it, and know how to close a deal perhaps with a good real estate attorney that charges a flat fee. Also, sellers need to make their homes sellable. I've seen so many overpriced hoarder houses, old electrical boxes, leaking roofs, broken driveways, outdated used up with no curb appeal on the MLS. Or houses that should be bulldozed yet are bought up by "investors" for cheap looking to flip without so much as fixing the place up to make it worth the asking price. It's quite a shame really. Putting out a good product seems to be a thing of the past. With that said, I think 3% is fair for a good seller or buyer's agent that doesn't seem to be out for their own best interest. It's a career that has a conflict of interest and several agents who take advantage. It would be better to flush them out rather than taking away commissions from decent agents.
Ive seen some people who are happy about this b/c they do not agree with the seller paying the buyers ageant.... but do they not realize that the seller becomes the buyer 😅... so now the seller has to pay his buyer agent too. And guess what sometimes your buyers agent is your seller agent... 🤷🏾♀️
How do you get a “good agent?” So many are brand new … how are they any better than if I get my license (which I did in NY when I worked for a real estate agent doing condo conversions) and am sitting next to a guy who has the same experience I do? Isn’t every question you talked about exactly what a first time agent has to figure out and doesn’t know anymore than a first time buyer? Couldn’t they just take the same course as the first time agent?
This is what real estate investors do. They either have a basic license or they pay a broker 1% or less and give them all their buy/sells. Most new agents aren't useful because they have zero training in negotiations. I'm always shocked how many new agents have never even bought their own house.
a lot of lame agents got carried by good agents. My prediction is that either title companies or mortgage brokers will be double licensed, then they will become the Buyer Agents and hire an hourly employee to drive the buyers around to look at houses. NAR has not done a thing for me over the years except charge me dues
Hey I’m A fellow Pensacolian Who has similar interest I would love to chat with you sometime. My name is Steven and I have rental properties used to love To kayak fish. I’m realizing I may be a jack of all trades but I’m a master of none. Lol
What they just did to trump pretty much removes any kind of negotiation between buyers and sellers anyway. Beware in trying to over value your home as a seller/ buyer. And of you do get a bank to agree to your over valued price you are at risk for civil penalties from a judge and a da. Just a thought 😮
@@oliphauntsneverlie6227 Not unless that someone is paying cash for the property. Most properties are financed by the banks, so bank will want independent appraisal because they are on a hook if buyer stops paying. Paying more than market value will be money loss. This is exactly what many stupid banks have learned after approving car loans over market value.
Great content as us usual !!! Very useful, thank you!! Why did Brant, bearded Brad, bama outdoors and CMR disband. What caused Breakup in friendship with CMR (RIP)?
Double check that thumbnail. You forgot the “L” in realtor, unless that was subliminal messaging insinuating they’re taking the big “L” without realizing it. 😂
I have encountered more bad agents than good ones, the good ones are very few.
they are like gnats everywhere...
Sounds like salespeople of every type.
do you sell a lot of homes?
100% spot on Jack, Im a realtor in KY and Im so over paying dues to NAR and my local ASSociation, they do nothing for me
I am guessing this is more in line with what the root issue is.. whoever is siphoning off of the commission of realtors needs to stop. Sellers are tired of footing the bill for things they don't even know they're paying for.
Your NAR dues just saved you from being a part of a class action lawsuit.
Congress also needs to step in and get the insurance companies under control and wake up the insurance commissioner. Raising rates 200 or 300%, or dropping policies as they are doing in CA is criminal. There is Skulduggery going on.
Agents inserts themselves into the equation, serve as a broken phone and collect money. No more of them. From now on I'll buy and sell without them. Useless and obnoxious
AMEN BROTHER!!! you are on point. NAR needs to be gone after this disgusting turn.
The only reason Realtors are not in the same category as used car salesmen is because we do not deal with them as often.
NAR is the 2nd biggest Lobbyist in US. Let that sink in. They just paved the way for Corporations and other deep pockets to be the only buyers instead of average home buyer. Prices of homes will not drop due to that change and seller will pay less commission but....seller has to move somewhere, so they have to become a buyer, hence why they would still pay commission of buyer (perhaps little less until they have to be new buyer again). Either way, prices will not change, just burden will change.
I 100% agree with you!
As someone whose bought and sold a lot of property most realtors are t worth what they cost
NO
If I'm being honest... which usually gets me some hate... I've been watching real estate agents drive around in fancy cars, with nice clothes, that have ridiculously nice homes and feeling a little annoyed about it. Mostly because I know that it's paid for with my sweat equity.
That being said, I think you're right. I think that this opens the door for shady deals. I really wonder what the fix is.
@IsaiahJoel-oh3re dude I work as a nurse. You wanna come see how cake my job is and see if my pay is worth it 😂. I'm sincerely not trying to put down realtors. I don't doubt she works hard. Some in the industry make y'all look bad.
Could just be financing a lifestyle but not having real wealth
What about the banks you pay 2-3 times your house? Are you just as mad at them?
How about your Politicians? You have to be really pissed at them?
@@RogerHanks-z2e I mean yea.. doesn't everyone hate politicians.. 😂?? I would not compare realtors to politicians or bankers! Y'all are terrible!!
I've bought over a dozen houses and made offers on many more. In every case the buyers agent was practically useless. They submit offers online and disappear until the closing to collect their huge check. Its time the buyers agents work for a flat $500.
If a buyer truly wants to be savvy and not feel like they are being hoodwinked, the benefit of this is that it may force buyers to do their own due diligence and research for real estate. It may also force buyer agents who aren’t good to drop off.
As a 24 year realtor I appreciate all your opinions.
How is dealing with an agent paid for by the seller different than when you have a buyer's agent? They're paid by the seller too in the current model
I bought my house last year . Worked with a good agent it really makes a huge difference. They need to fix this sooner rather than later.
Thank God the rules are changing! Real Estate agents are not worth the 5 to 6 percent commission they seem to think it's their due for driving a few people to see your property. You work for years getting that equity up and in they come and take 6 percent of that money. How much is that an hour? It's robbery, it's what it is. So, if it's the end of the real estate agent, I say "good riddance!"
I think the work is worth what you negotiate! Agents should have to compete just like any other profession. I might be willing to pay 3% to an agent depending on what I get but it shouldn’t be the same for every house. There’s no way my real estate agent was worth the $58,000 that we paid on our $975,00 house compared with the exact same work for the $350,000 down the street. They got the same MLS, same open house, same photographer, same contract writing, same everything yet I paid $21,000 more? For what exactly?
You don't have to hire a realtor. Nobody makes you do that. Do it for sale by owner and save all your precious money.
@@auggiedoggiesmommy1734You paid for more potential head aches, bigger potential liability. Just my guess. That said, house sellers make nearly the same as house builders. As a member of the construction community, maybe the grass is greener on the other side of the fence.
I agree that this settlement was terrible. As a buyer, I'm really upset by it. Do you think new home builders will still offer the buyer's agent commission?
Yeah, they know how properties get sold. Buyers Agents are super important in the process.
@@YakMotley thanks! I really appreciate your videos 👍
The amount that the buyer will pay for an agent will just roll into the note. It is common practice to roll in a roof or closing cost etc.....This is what I believe will happen. Bank's need to make money and they will allow it.
NAR sold us out
My house sold for $975,000 tell me what I got more than the house that sold for $350,000? I didn’t get anything different but that agent got a LOT more selling my house. Really, I am interested in figuring out what I got that was worth $37,000 more?
Didn't you factor that amount into your selling price and agree to give out that commission? You had every right to negotiate that to a price that you felt was fair. Most sellers are afraid to negotiate the commissions on their listing (like you were).
Your agent had to work with an entitled jerk, which would have been less likely if they were selling a $350k house. That’s why they get paid more to sell houses for people with more money.
people can use their financial insitutions realtors to do the work for them.
This guy has no idea what he's talking about. Very simply, the seller no longer has to pay the commission of the buyer's agent, which is the way it should be. Case closed. F all real estate agents. They're all crooks.
Don’t buy anything till he straighten his shit out
Thank you for your information
I'd rather have 3 listings at 1% than 1 listing at 3%. Especially now a bunch of unrepresented buyers are going to be running around. I'll scoop them up and represent them and work my buuer commission into a deal.
Shoot I'll be doing more biz in one month than most do in a whole year.
NAR- Australian for "no."
😂
Why not a flat fee? Why do more expensive homes have to subsidize less expensive homes? Do you work that much harder (if any at all) to sell a $3M home vs a $500K home? Why should a $3M dollar home cost six times as much to sell? This is why I do my own buying and selling.
For the same reason a 3 mil home costs 6 times as much to upkeep, furnish, repair, insure.
There are six times as many items to consider.
I think you just realized money means nothing.
Buyer agents, that are paid by the seller agent, work for the sellers agent’s interest. Buyers agents need to be paid by the buyer if they will work for buyers.
This is great for Wall Street firms offering low cost online transactions. Why aren’t people talking about this?
real estate is done. no banks are doing home loans.....
Please. People are not going to stop buying houses.
In my opinion 1% listers will go away. That “worked” in the market we had because they would charge 1 to list and pay 2.5-3% to a buyers agent. Now they won’t have the buyers agent on the other side trying to make the deal happen. I see listing agents charging 4-6% in the future. They are gonna do twice the work and have to be at almost every showing. The price of home ownership ownership just went up. 😢
There are plenty of brokers who will be willing to work for 2%
Some people think that they will have an attorney write contracts. What will happen when you must write multiple contracts because you'll lose most of those bids. attorneys will write if you continue to pay. GOOD LUCK!!!
the sellers have been paying the entire 6%, buyers pay nothing, isn't that correct by the old format before this announcement?
Buyers pay for everything- they pay your asking price, which has the commission included in listing price. Without a buyer’s funds at the closing table, nobody gets a check.
thats not 100% true... maybe in some markets or the cases that generated the suits but all commissions are negotiable there is no set split or percentage.
I've had buyer agents not fulfill their fedutariy duties cause they don't want the price of the house reduced, to receive more commission. So I think you should educate yourself to protect yourself regardless. Eight percent of agents have no more knowledge that the average person anyway. The agent would sit at home while the buyer is on zillow doing what the agent should be doing for their commission.
Exactly ... what a mess, some of these buyer will find themselves in. But I guess the public will have to learn the hard way.. if this is the route we go.
💯% agree with everything you said!
It’s like they have forgotten who pays the dues to keep the MLS alive… hahaha it’s about to get weird!
No, it's because the NAR was losing billion dollar lawsuits. They had to cut bait or they wouldn't survive and the large brokers would be taken down in lawsuits, too. There are also similar BUYER lawsuits going on because they're required to, in essence, pay ALL of the broker commissions via the purchase price they pay. The buyer currently has zero chance to negotiate any real estate commission in their deal.
If anything listing agents aren't going to reduce their commission by much maybe a percent as they will have to do more work now to sell them home if the seller is not offering out a buyers agent commission.....I know I won't as my work load just got larger .....make sure to get buyer agency contracts signed and commssions discussed with buyer and agreed upon.
A percent is a lot
Spot on about NAR...as a former licensed real estate salesperson, they also hold access to your electronic "lock box" access and the use of the "logo" / and that popular term for a real estate salesperson. You have to pay to play...No Thanks!😂
You’re a former agent? Assuming that means you were not financially viable. Congrats you’re part of the 80% that never made it as Agents.
Real estate agents don't understand the real estate world 😂
If this is the case, I think buyers need to learn how to inspect a home, understand how to value it, and know how to close a deal perhaps with a good real estate attorney that charges a flat fee. Also, sellers need to make their homes sellable. I've seen so many overpriced hoarder houses, old electrical boxes, leaking roofs, broken driveways, outdated used up with no curb appeal on the MLS. Or houses that should be bulldozed yet are bought up by "investors" for cheap looking to flip without so much as fixing the place up to make it worth the asking price. It's quite a shame really. Putting out a good product seems to be a thing of the past. With that said, I think 3% is fair for a good seller or buyer's agent that doesn't seem to be out for their own best interest. It's a career that has a conflict of interest and several agents who take advantage. It would be better to flush them out rather than taking away commissions from decent agents.
Commissions were always negotiable. FHA and VA loans are going to be history.
Government will just change the rules on those loans. That's an easy fix for them.
Not really. That's the essence of the lawsuits that the NAR handily lost.
It sounds to me like the local MLS groups need to start a class action against the NAR.
The Agent Brokerages should.
Ive seen some people who are happy about this b/c they do not agree with the seller paying the buyers ageant.... but do they not realize that the seller becomes the buyer 😅... so now the seller has to pay his buyer agent too. And guess what sometimes your buyers agent is your seller agent... 🤷🏾♀️
How do you get a “good agent?” So many are brand new … how are they any better than if I get my license (which I did in NY when I worked for a real estate agent doing condo conversions) and am sitting next to a guy who has the same experience I do? Isn’t every question you talked about exactly what a first time agent has to figure out and doesn’t know anymore than a first time buyer? Couldn’t they just take the same course as the first time agent?
This is what real estate investors do. They either have a basic license or they pay a broker 1% or less and give them all their buy/sells. Most new agents aren't useful because they have zero training in negotiations. I'm always shocked how many new agents have never even bought their own house.
a lot of lame agents got carried by good agents. My prediction is that either title companies or mortgage brokers will be double licensed, then they will become the Buyer Agents and hire an hourly employee to drive the buyers around to look at houses. NAR has not done a thing for me over the years except charge me dues
Very good very informative…
Call your Congressperson …why aren’t you going to D.C. and doing this?
More government regulations is what I want.
Hey I’m A fellow Pensacolian Who has similar interest I would love to chat with you sometime. My name is Steven and I have rental properties used to love To kayak fish. I’m realizing I may be a jack of all trades but I’m a master of none. Lol
What they just did to trump pretty much removes any kind of negotiation between buyers and sellers anyway. Beware in trying to over value your home as a seller/ buyer. And of you do get a bank to agree to your over valued price you are at risk for civil penalties from a judge and a da. Just a thought 😮
The value of a thing is exactly the amount someone is willing to pay for the thing.
@@oliphauntsneverlie6227 Not unless that someone is paying cash for the property. Most properties are financed by the banks, so bank will want independent appraisal because they are on a hook if buyer stops paying. Paying more than market value will be money loss. This is exactly what many stupid banks have learned after approving car loans over market value.
Great content as us usual !!!
Very useful, thank you!!
Why did Brant, bearded Brad, bama outdoors and CMR disband. What caused Breakup in friendship with CMR (RIP)?
Different visions of how that wanted to move forward??
Yep keep shitting on us! Yay! I love having a VA loan I can't use. 100% va pay qualifies me for what a 100k house that doesn't exist.
HOA disclosure = no offer for you
Still waters run deep!!!
Sorry you think everyone is dumb. You can hire expert to close a deal.
Double check that thumbnail. You forgot the “L” in realtor, unless that was subliminal messaging insinuating they’re taking the big “L” without realizing it. 😂
lol thanks
Apparently over 500k REALTORS are leaving the business.
🔥
Wow