As a seller I am giving that difference in commission in the selling price directly to the buyer. I am aware I am an outlier but I believe this will become more common with time.
The down payment for a conventional loan is usually between 3% and 20% of the purchase price of the home. The amount required depends on several factors, including the type of loan, the lender's requirements, and the buyer's creditworthiness. For example, a 2022 report from the National Association of REALTORS® found that first-time homebuyers typically put down 6%, while repeat buyers put down 17%. Other requirements may include:
My wife and I have done our due diligence and found the new home construction builder, floor plans, and lot numbers we are interested in. We have all done it on our own. We assumed we needed a buyer's agent to help through the process. We have not signed a contract yet and cannot see how paying 2.5% commission - or anything close to that - would be helpful. Yet, I assume there are benefits to utilizing an agent vs. a lawyer to review a contract. We are willing to negotiate a lower commission. Still, we are considering going without concern for taking a chance of being taken advantage of by the builder (who is highly regarded in the area).
I understand! Their might be benefit of a Realtor or attorney to review and advise on assumptions, terms and deadlines. At this point either could be both cost effective and cost saving.
@@TheRuethTeam I just contacted our proposed buyer's agent (no agreement signed). The new construction seller would pay our buyer agent 2% ($1 mil home). As I discovered the builder and found the floor plans and lots desired with the tour of the community sans agent, I am not sure why he would need anything beyond the 2% from the builder. I was sent on home online to look at but had no interest. I know what my wife and I want so cannot see adding to the 2%. It is odd that the builder pays the seller agent onsite and the buyer agent. Why would I expect that they would have the best interests of the buyers at heart when they are paid by the builder? Seems like us paying an agent is double-dipping and excessive.
@@DocWR86the builder is paying the buyers agent. The builder is not increasing your price whether he pays it or not, so it’s not hurting you not double dipping. Now, if you feel you don’t need a realtor only you can make that decision. Ask the builder if he will pay for an attorney for you to review docs.
@@TheRuethTeamI agree with that. But is it expected and standard for me to pay an agent an additional fee (upwards of 2.5% extra) to assist with the remaining process when he would already be getting 2% from the builder and I have done ALL the work up to this point in finding the home I am ready to make an offer on?
Pre NAR scenario: Seller pays 6% commission on sale of home (both buyers agent and sellers agent get 3%). Post NAR scenario: sellers agent gets say 3%, but buyers agent may get nothing from seller. The buyer is then on the hook to pay his/her agent 3%. In that scenario, I walk away from the home purchase as a buyer.
🇬🇧 Negotiators are usually paid a salary with bonuses for completed sales and rentals. The average commission rate is around 1.5% of the final sale price, but can range from 0.5% to 3.5% or more. Some agents may also charge a fixed fee instead of a percentage.
Sellers should have a impartial home inspection done by a licensed bonded home inspector and also have a title search done by a licensed and bonded title company, a record of all property and city services and any fines from the city should have to be notarized and provided to Sellers agent and be part of the disclosure agreement before the house is listed .
Agent commissions are not included in interested party contributions for conventional loans. FHA loans have a cap at 6% interested party contributions, and that’s quite a bit considering the required down payment is only 3.5% 😅
Agent commissions are not included in ANY loan type as long as the buyer agent commissions were paid for by the seller as customary. Such is the case in Colorado.
There is a contract between the buyer and the buyers agent stipulating the agreement of working together. You will want to go thru it in detail with your agent to understand your obligations.
@itrap247 my lawyer only charge flat fee less than a grand vs. 2-6% commission..Hence, for $1M home price is insane commission for little wrk on buyer agent side.
Then the realtor needs to know that contract is negotiable. I’d rather be in charge of how long I’m obligated to stay with the realtor and how much Im willing to give
After house hunting for more than a year, we drove 4 hrs. one way to look at a house we liked a lot. As soon as we got out of the car at the home the realtor told us that we had to agree and sign this commission statement. We were back in the car and gone within five minutes. The new rules are just forcing us to stay in our home and not move out of state into a retirement home. I think it's like asking for your tip before you have even served us, tacky and underhanded.
There’s a touring agreement to show you a home and a separate buyers agent agreement that goes into detail on the commission. Agents will handle this differently. I don’t think you should give up on your dream but find a team that’s right for you. I’m happy to help connect you!
I talked to a realtor broker and he said all contracts are negotiable. Therefore, you can make your own contract. You don’t have to go by the generic ones that are offered from the buyers agent or the seller agent. I think trying to look at a house and the realtor telling you you have to sign this and that and not tell you other options to get through the doorway is very uncomfortable.
It's mandatory! Not underhanded. In fact quite the opposite. He was trying to abide by the new law. In the future sign it(as it's required), however you can put stipulations in it, like a date, time range, or even a specific address,.....that way u aren't locked into an agreement for a long time with someone u don't like.
I just ended a contract today. My agent knew about this aug 17 change and never told me until the last day of the contract when I asked. He was more then ok with costing me another $18k paying a payers agent when we could have changed the contract in 5 minutes to 3%. He wanted to continue to represent me I had some very choice words for this scumbag and sent him packing. My next agent will do things my way not one penny to the buyers agent! I am so feed up with this rip off from these realtors. Then the BS they want to buy the house but then want several thousand deducted for this or that around closing. I put one buyer in the road! Thought they would try to con me out of a few thousand at closing. I walked out and denied him the option to buy ever! Why sellers put with this BS at closing people put these idiots in the road if they dont have the money for the price you list dont do business with them. This lawsuit didnt go far enough they should have did more to gut this crooked industry!
As of the third quarter of 2023, the homeownership rate in the United States was 66% according to the Census Bureau's Housing Vacancy Survey (CPS/HVS). This rate was statistically the same as the second quarter of 2023, which was 65.9%.
@@myfivestarrealty Unfortunately, owner occupant’s are even less than that and steadily going down. The INSANITY IS our government giving $30k to ILLEGALS to buy a house in a country they have NO RIGHT TO BE LIVING IN! Here’s a tip: The US government is BANKRUPT! They are PRINTING money with nothing to back it. Our current FIAT government is DEFUNCT! This will all be told very soon.
Video on point. Lenders had their commissions overhauled after the 2008 crash, the same is happening to realtors. The good realtors will stay in business and the bad ones will leave. Ultimatly the consumer wins, lower cost and higger quality service.
@@TheRuethTeamyou all missing the point...Klaus Schwab you own nothing and you'll be happy. Blackrock and his partners are buying everything up. Renting big is becoming the American dream 15 min city's 😅
@@myfivestarrealty I think you should rewatch the video. This video is not about institutional investors, buying single family homes. But on that point, institutional investors only own 700,000 single family homes out of 82 million homes in the USA. Great news, if you don't want to rent a home from an institutional investor than, don't. Homes are not expensive because of institutional investors. Homes are expensive because of inflation and regulations.
Increasing your mortgage rate to free-up cash to pay your buyer’s agent?! Lady you are F’n nuts!!! I would love to see what a good lawyer makes of ANY buyer’s agent recommending/counseling/allowing that to happen, in light of fiduciary duties to said buyer. How about this: You are so good at what you do (and all the other BS reasons you give to buyers to hire you) how about you go negotiate your own commission with the seller. If you are not skilled enough to negotiate 2% to 3%, that’s on you. Quite simply, if you do not have listings, you are not going to have a job.
I am a lender and very busy with educated, strategic buyers looking at all of their options Including adjusting their rate. There is not one right answer, but a collection of strategies that creates the best 1-3-5 year plan.
Yes she is. Creative financing is either more expensive a trap or both. The problem is that most people focus on the payment and not the total cash out of pocket over the life of the purchase.
You will save more, have a stronger, more put together offer, and get to the closing table with less surprises with a strong buyers agent. It’s not an either or. It’s a both and
@@TheRuethTeam Yeah Bump UP the price for more commission, More Property Taxes, LESS value ... COME ON MAN ( WOMEN) leave the Sleazy Car sales way of thinking
Buyers agents are going into poverty - LA will be in demand as dual agency - frankly in NY agents are now having to PAY SELLERS for their listing since buyers agents just will not work - no one is going to want to sign that agreement let alone pay a buyers agent
The issue is that the listing agent isn't just going to work the buyer side for free, and it's much more liability for the agent to do dual agency and is even banned in some states.
Yea I'm not giving a buyers agent 3% on a half million dollar purchase, I have the money but there is a reason why, I have the money because I don't throw it away needlessly. So for me option 1 is the only choice unless house prices fall dramatically or buyers agents are ok with earning a reasonable fee for their efforts.
@@pbshooter100 As a recovering Real Estate Broker, the FEES involved with a closing is only in how much time you have to expend. If I show 1-3 houses, I’ll ask for 1%. (I have NO broker to pay). 3-6 houses 2% and 7 plus showings is 3%. Your TIME and cost of fees are what the Buyer is paying for. I strongly feel, now that Compensation is OFF the listing, there is NO REASON for the public not to have FULL ACCESS to MLS. The 6% average to sell a property is too high! It made sense when I sold properties under 200k, but prices have skyrocketed, so the commission should come down. If I were licensed today, I would do the listing for a FLAT FEE. For instance $4995 for a home priced 300-400k. I will provide the SAME stuff overpriced agents say they will. I will ALSO write the contract FOR NO EXTRA MONEY. What I don’t do is Open Houses. I’ll provide signs and materials, but the OWNER holds the Open House. If an agent writes an offer, they just add their commission in the contract. All of my sellers were PREPARED for the possibility of paying a co-broke agent. Rarely, did they disagree.
@@rw7632 I believe your offer is legitimate. At $750k, I would charge $8995 to list and the balance would be offered to a selling agent. If no selling agent, only $8995.
After taking to an honest broker/realtor he informed me that those contracts for a buyer to represent you is negotiable because you don’t want to end up with somebody you don’t like and drop them but get another buyer and then have to pay to buy your agents Also, you can see how incompetent this lady is as she didn’t show you that option Or maybe people just don’t understand real estate and maybe this should be your opportunity to learn about real estate I mean, there’s a library that has books on how to sell your own home and you could even take some of the real estate courses. And talk to honest realtors and brokers
I’m not sure what your point is? As a 23 yr veteran of the real estate industry and #1 originator in Colorado, my competence is not in question but I’m not following your solution. Yes…everyone needs to be responsible to educate themselves. You can pay for representation, you can get discounted representation or you can self represent. It’s the same as doing your taxes or investing in stocks. Every buyer and seller needs to make the best decision for themselves.
Realtors have screwed their customers because they sell you on the value they provide since they have a monopoly on the MLS. Imagine if I only had one option to hire a landscaper designer and he tells you just think of the value I bring to your property. So pay me $50,000 for 3 days of intense work. Or your house will look like crap
I disagree if you find a quality realtor it is worth it. They market your house hold open houses do all of the paperwork it is a lot of work and realtors do not get paid until the end. Many realtors spend their own money on marketing things for the open house if you need a stager etc...
I read free books from the library and take real estate courses. I’ve learned more about real estate in 4 months and the more I learn the less I need one. Not that hard
It TOTALLY is! Everyone looks at the picture right now, but I look at the picture one year, five years and 10 years out. Taking a higher rate and being able to pay the compensation out in a lender credit and then refinance in the next 6 to 18 months is an incredibly smart strategy.
@@TheRuethTeam Yea the way housing prices are trending there is a good chance you won't be able to refinance as you would not have the equity that you need without coming up with additional cash. I'm not guaranteeing that this will be the case but the risk is high in the current market.
@@pbshooter100 inventory is tight in most locations. with rates starting their slow decent, buyer demand will come off their 1995 baseline and start to absorb any extra inventory, especially in the traditional spring season. most refinances will be okay, other than those who took down payment assistance who will need to wait a little longer
@@TheRuethTeamMaybe where you are but not so much in other markets. Inventories of new housing are way up in Texas for example, sales are at a 25 year low and it's not because of interest rates. There are some markets where people who purchased 1 1/2 years ago are already underwater due to declining prices and can't sell without coming up with cash out of pocket. Also even with a low interest rate at the current prices people need to look at what their total outlay of cash will be over the life of the loan really it's obscene IMO . Couple that with all the elevated maintenance costs, taxes and insurance it's a much larger financial commitment that just a few short years ago regardless of the interest rate. But heck lots of stupid people out there thinking only interest rates matter might prove you right, perhaps more than I imagine.
I always thought the homeowner going to sell should have a homeowners inspection done first at their cost b4 even trying to sell. Ive seen so many people get inspections & want to back out & the sellers keep their deposit or want to sue. Obviously awful people but their are many out there. I also know realtors that would under price a listing & have a friend come in at full asking price & rip people off.. they are going to Hell someday.🔥
Not in all states in the union are inspectors lisenced. People thought real estate is fun easy-going to easy to get lisenced. ... go FSB and see yourself through this mess...😅 layers are the crooks. Noone truly has any ideas on the constitution the bill of rights and the comon law....Americans rather watch Hollywood and football while the layers judges and lobiests make law and statues and Americans fall for it...😂
Get rid of buyer's agents! They are not needed. Real estate lawyers do the job, you need . Not a door opener! Stop trying to make realtors so important.
Real estate agents are to real estate what financial planners are to investing. Their insights and experience can be life changing when it all comes together. Having said that some investors go to Charles Schwab and Robinhood and for those people they can buy a house with an attorney. There is no one solution.
No one NEEDS a realtor and they certainly are not worth their fee. And I have bought and sold multiple houses. You guys are blockbuster and we can stream.
There will always be a need for trusted, experienced real estate agents just like financial planners. You can trade at Robinhood at your own risk or capitalize on the experience and models a CFP provides to protect your wealth. Realtors provide that education, support and insight.
I believe having a professional Realtor on your side is worth it. Especially when it comes to inspections terminates bringing more buyers to your home that are already screened and pre approved. The commission is always negatioable.
I was a broker for over 40 years. Yes, commissions are too high. It’s time to DROP your conventional broker and go with a company that lets you keep all of the commission. Brokers are a house to TRAIN AGENTS and take half of the commission. It’s time for ALL AGENTS to be their own broker, thereby reducing commissions substantially. The big brokerages are getting money that SHOULD go to the Buyer and Seller. We owned a discount company from 2002-2008. We saved 10s of thousands for sellers, and buyers got a lower price. We lost it all in the BANKSTER STEAL in 2008. If the market changes, I might take the RE course for a FIFTH TIME. It s INSANE for agents to have to retake the course every time. You should only have to take the LAW portion and review the other stuff. Also, I shouldn’t have to pay $2000 a year in DUES to a to use the MLS.
That’s true about a lot of things though lawyers, plumbers, construction workers, factory workers, executives, etc… you don’t need anyone and can do it all yourself and it will never be worth it to you. But if you want quality and experienced help. It’s gonna cost you and for 89% of home buyers they felt value in using an agent. But there are many out there that are DIY people.
@@nildalindsley2727 and then what? Get rid of all financial planners and CPAs? Buyers agents serve an incredible role. Some buyers won’t need that kind of support and others will thrive with it. How does that blanket statement help anyone?
It is the customary way and will be prevalent but in multiple bid situations it will be one of the first negotiation levers used! Not enough people are talking about this.
@@TheRuethTeam Not bidding either, my offer will stand for 12 to 24 hours. This bidding crap needs to end also. I'm doing my part and others should as well they should a put time limits on their offers 🤷🏻♂️
But you can make your own contract. Because if you use theirs and decide to pick another buyers agent you will still own buyer agent #1 commission Either the lender lady doesn’t know that or she is happy not to say
As a seller I am giving that difference in commission in the selling price directly to the buyer. I am aware I am an outlier but I believe this will become more common with time.
That’s helpful as it helps the buyer have representation.
This is becoming common in my area and buyers are keeping the savings.
The down payment for a conventional loan is usually between 3% and 20% of the purchase price of the home. The amount required depends on several factors, including the type of loan, the lender's requirements, and the buyer's creditworthiness. For example, a 2022 report from the National Association of REALTORS® found that first-time homebuyers typically put down 6%, while repeat buyers put down 17%. Other requirements may include:
My wife and I have done our due diligence and found the new home construction builder, floor plans, and lot numbers we are interested in. We have all done it on our own. We assumed we needed a buyer's agent to help through the process. We have not signed a contract yet and cannot see how paying 2.5% commission - or anything close to that - would be helpful. Yet, I assume there are benefits to utilizing an agent vs. a lawyer to review a contract. We are willing to negotiate a lower commission. Still, we are considering going without concern for taking a chance of being taken advantage of by the builder (who is highly regarded in the area).
I understand! Their might be benefit of a Realtor or attorney to review and advise on assumptions, terms and deadlines. At this point either could be both cost effective and cost saving.
@@TheRuethTeam I just contacted our proposed buyer's agent (no agreement signed). The new construction seller would pay our buyer agent 2% ($1 mil home). As I discovered the builder and found the floor plans and lots desired with the tour of the community sans agent, I am not sure why he would need anything beyond the 2% from the builder. I was sent on home online to look at but had no interest. I know what my wife and I want so cannot see adding to the 2%. It is odd that the builder pays the seller agent onsite and the buyer agent. Why would I expect that they would have the best interests of the buyers at heart when they are paid by the builder? Seems like us paying an agent is double-dipping and excessive.
@@DocWR86the builder is paying the buyers agent. The builder is not increasing your price whether he pays it or not, so it’s not hurting you not double dipping. Now, if you feel you don’t need a realtor only you can make that decision. Ask the builder if he will pay for an attorney for you to review docs.
@@TheRuethTeamI agree with that. But is it expected and standard for me to pay an agent an additional fee (upwards of 2.5% extra) to assist with the remaining process when he would already be getting 2% from the builder and I have done ALL the work up to this point in finding the home I am ready to make an offer on?
@@DocWR86real estate commissions like most things is negotiable. Given the work you’ve done I am sure the realtor would negotiate to the 2%.
Great video!
Thank you!
Pre NAR scenario: Seller pays 6% commission on sale of home (both buyers agent and sellers agent get 3%). Post NAR scenario: sellers agent gets say 3%, but buyers agent may get nothing from seller. The buyer is then on the hook to pay his/her agent 3%. In that scenario, I walk away from the home purchase as a buyer.
Or you could find a cheaper buyer agent, flat fee or accepts lower percentage. 🤷♀️
So you are willing to give up an historic rate of compounding appreciation of 4.2% annually to pay 3% once?
Nobody told you that was negotiable
🇬🇧 Negotiators are usually paid a salary with bonuses for completed sales and rentals. The average commission rate is around 1.5% of the final sale price, but can range from 0.5% to 3.5% or more. Some agents may also charge a fixed fee instead of a percentage.
Sellers should have a impartial home inspection done by a licensed bonded home inspector and also have a title search done by a licensed and bonded title company, a record of all property and city services and any fines from the city should have to be notarized and provided to Sellers agent and be part of the disclosure agreement before the house is listed .
Agent commissions are not included in interested party contributions for conventional loans. FHA loans have a cap at 6% interested party contributions, and that’s quite a bit considering the required down payment is only 3.5% 😅
Agent commissions are not included in ANY loan type as long as the buyer agent commissions were paid for by the seller as customary. Such is the case in Colorado.
🇩🇪 The contracting party pays a commission, also known as a brokerage fee, based on the purchase price or rent of the property
Is the buyer bound through escrow to pay the buyer agent their negotiated commission or fee.
There is a contract between the buyer and the buyers agent stipulating the agreement of working together. You will want to go thru it in detail with your agent to understand your obligations.
It's called first a disclosure and then a Buyers Agency Colorado was always 10 steps ahead 😅
Best to get an estate lawyer to draft the contract directly to seller agent
Paying someone else a big check to not pay another person is crazy shit
@itrap247 my lawyer only charge flat fee less than a grand vs. 2-6% commission..Hence, for $1M home price is insane commission for little wrk on buyer agent side.
Then the realtor needs to know that contract is negotiable. I’d rather be in charge of how long I’m obligated to stay with the realtor and how much Im willing to give
After house hunting for more than a year, we drove 4 hrs. one way to look at a house we liked a lot. As soon as we got out of the car at the home the realtor told us that we had to agree and sign this commission statement. We were back in the car and gone within five minutes. The new rules are just forcing us to stay in our home and not move out of state into a retirement home. I think it's like asking for your tip before you have even served us, tacky and underhanded.
There’s a touring agreement to show you a home and a separate buyers agent agreement that goes into detail on the commission. Agents will handle this differently. I don’t think you should give up on your dream but find a team that’s right for you. I’m happy to help connect you!
I talked to a realtor broker and he said all contracts are negotiable. Therefore, you can make your own contract. You don’t have to go by the generic ones that are offered from the buyers agent or the seller agent.
I think trying to look at a house and the realtor telling you you have to sign this and that and not tell you other options to get through the doorway is very uncomfortable.
We altered the buyer's contract to be good for only that day. We had no intention of getting into a long relationship with someone we didn't know
It's mandatory! Not underhanded. In fact quite the opposite. He was trying to abide by the new law. In the future sign it(as it's required), however you can put stipulations in it, like a date, time range, or even a specific address,.....that way u aren't locked into an agreement for a long time with someone u don't like.
I just ended a contract today. My agent knew about this aug 17 change and never told me until the last day of the contract when I asked. He was more then ok with costing me another $18k paying a payers agent when we could have changed the contract in 5 minutes to 3%. He wanted to continue to represent me I had some very choice words for this scumbag and sent him packing. My next agent will do things my way not one penny to the buyers agent! I am so feed up with this rip off from these realtors. Then the BS they want to buy the house but then want several thousand deducted for this or that around closing. I put one buyer in the road! Thought they would try to con me out of a few thousand at closing. I walked out and denied him the option to buy ever! Why sellers put with this BS at closing people put these idiots in the road if they dont have the money for the price you list dont do business with them. This lawsuit didnt go far enough they should have did more to gut this crooked industry!
As of the third quarter of 2023, the homeownership rate in the United States was 66% according to the Census Bureau's Housing Vacancy Survey (CPS/HVS). This rate was statistically the same as the second quarter of 2023, which was 65.9%.
@@myfivestarrealty Unfortunately, owner occupant’s are even less than that and steadily going down. The INSANITY IS our government giving $30k to ILLEGALS to buy a house in a country they have NO RIGHT TO BE LIVING IN!
Here’s a tip: The US government is BANKRUPT! They are PRINTING money with nothing to back it. Our current FIAT government is DEFUNCT! This will all be told very soon.
Video on point. Lenders had their commissions overhauled after the 2008 crash, the same is happening to realtors. The good realtors will stay in business and the bad ones will leave. Ultimatly the consumer wins, lower cost and higger quality service.
Agree!
@@TheRuethTeamyou all missing the point...Klaus Schwab you own nothing and you'll be happy. Blackrock and his partners are buying everything up. Renting big is becoming the American dream 15 min city's 😅
@@myfivestarrealty I think you should rewatch the video. This video is not about institutional investors, buying single family homes.
But on that point, institutional investors only own 700,000 single family homes out of 82 million homes in the USA.
Great news, if you don't want to rent a home from an institutional investor than, don't.
Homes are not expensive because of institutional investors. Homes are expensive because of inflation and regulations.
Be careful those contracts you sign will keep you locked in with an agent you might not like.
But you can form your own contract
creating your own contracts can be dangerous. Make sure to consult an attorney
Increasing your mortgage rate to free-up cash to pay your buyer’s agent?! Lady you are F’n nuts!!! I would love to see what a good lawyer makes of ANY buyer’s agent recommending/counseling/allowing that to happen, in light of fiduciary duties to said buyer. How about this: You are so good at what you do (and all the other BS reasons you give to buyers to hire you) how about you go negotiate your own commission with the seller. If you are not skilled enough to negotiate 2% to 3%, that’s on you. Quite simply, if you do not have listings, you are not going to have a job.
I am a lender and very busy with educated, strategic buyers looking at all of their options Including adjusting their rate. There is not one right answer, but a collection of strategies that creates the best 1-3-5 year plan.
Yes she is. Creative financing is either more expensive a trap or both. The problem is that most people focus on the payment and not the total cash out of pocket over the life of the purchase.
Wow! I can't wait to offer a higher price on a home to allocate borrowed money for a buyer broker fee 🤣
You will save more, have a stronger, more put together offer, and get to the closing table with less surprises with a strong buyers agent. It’s not an either or. It’s a both and
Europa hear we are the Globelists are winning 1 bit at time. America is so done 😮
@@TheRuethTeam Yeah Bump UP the price for more commission, More Property Taxes, LESS value ... COME ON MAN ( WOMEN) leave the Sleazy Car sales way of thinking
Buyers agent should get % of price that is negotiated down. Ie some bflat fee + % of price negotiated down from CMA.
Strategy 5: Skip a Buyers "agent" (not necessary) & go to Seller....inspect, offer or walk away...saving Buyer thousands.
Dual agent
Buyers agents are going into poverty - LA will be in demand as dual agency - frankly in NY agents are now having to PAY SELLERS for their listing since buyers agents just will not work - no one is going to want to sign that agreement let alone pay a buyers agent
The issue is that the listing agent isn't just going to work the buyer side for free, and it's much more liability for the agent to do dual agency and is even banned in some states.
New York is democratic run state 😅welcome to communist buiz been loke that for years. American people have been asleep at the wheel 😅
solid options
YES!
Yea I'm not giving a buyers agent 3% on a half million dollar purchase, I have the money but there is a reason why, I have the money because I don't throw it away needlessly. So for me option 1 is the only choice unless house prices fall dramatically or buyers agents are ok with earning a reasonable fee for their efforts.
My house is 750000. I told my agent I would pay 3 percent total. Dont care how they split it.
@@pbshooter100
As a recovering Real Estate Broker, the FEES involved with a closing is only in how much time you have to expend. If I show 1-3 houses, I’ll ask for 1%. (I have NO broker to pay). 3-6 houses 2% and 7 plus showings is 3%. Your TIME and cost of fees are what the Buyer is paying for. I strongly feel, now that Compensation is OFF the listing, there is NO REASON for the public not to have FULL ACCESS to MLS. The 6% average to sell a property is too high! It made sense when I sold properties under 200k, but prices have skyrocketed, so the commission should come down. If I were licensed today, I would do the listing for a FLAT FEE. For instance $4995 for a home priced 300-400k. I will provide the SAME stuff overpriced agents say they will. I will ALSO write the contract FOR NO EXTRA MONEY. What I don’t do is Open Houses. I’ll provide signs and materials, but the OWNER holds the Open House. If an agent writes an offer, they just add their commission in the contract. All of my sellers were PREPARED for the possibility of paying a co-broke agent. Rarely, did they disagree.
@@rw7632 I believe your offer is legitimate.
At $750k, I would charge $8995 to list and the balance would be offered to a selling agent. If no selling agent, only $8995.
Well try and sell it then, good luck.
@@stevenholub3446 You think 42k in commissions is reasonable? I never made that in a whole year.
After taking to an honest broker/realtor he informed me that those contracts for a buyer to represent you is negotiable because you don’t want to end up with somebody you don’t like and drop them but get another buyer and then have to pay to buy your agents
Also, you can see how incompetent this lady is as she didn’t show you that option Or maybe people just don’t understand real estate and maybe this should be your opportunity to learn about real estate
I mean, there’s a library that has books on how to sell your own home and you could even take some of the real estate courses. And talk to honest realtors and brokers
I’m not sure what your point is? As a 23 yr veteran of the real estate industry and #1 originator in Colorado, my competence is not in question but I’m not following your solution. Yes…everyone needs to be responsible to educate themselves. You can pay for representation, you can get discounted representation or you can self represent. It’s the same as doing your taxes or investing in stocks. Every buyer and seller needs to make the best decision for themselves.
Realtors have screwed their customers because they sell you on the value they provide since they have a monopoly on the MLS. Imagine if I only had one option to hire a landscaper designer and he tells you just think of the value I bring to your property. So pay me $50,000 for 3 days of intense work. Or your house will look like crap
I disagree if you find a quality realtor it is worth it. They market your house hold open houses do all of the paperwork it is a lot of work and realtors do not get paid until the end. Many realtors spend their own money on marketing things for the open house if you need a stager etc...
I read free books from the library and take real estate courses. I’ve learned more about real estate in 4 months and the more I learn the less I need one. Not that hard
Why in the world would someone want to have a higher interest rate and pay a higher mortgage payment
For us, not a smart move
It TOTALLY is! Everyone looks at the picture right now, but I look at the picture one year, five years and 10 years out. Taking a higher rate and being able to pay the compensation out in a lender credit and then refinance in the next 6 to 18 months is an incredibly smart strategy.
@@TheRuethTeam Yea the way housing prices are trending there is a good chance you won't be able to refinance as you would not have the equity that you need without coming up with additional cash. I'm not guaranteeing that this will be the case but the risk is high in the current market.
@@pbshooter100 inventory is tight in most locations. with rates starting their slow decent, buyer demand will come off their 1995 baseline and start to absorb any extra inventory, especially in the traditional spring season. most refinances will be okay, other than those who took down payment assistance who will need to wait a little longer
@@TheRuethTeamMaybe where you are but not so much in other markets. Inventories of new housing are way up in Texas for example, sales are at a 25 year low and it's not because of interest rates. There are some markets where people who purchased 1 1/2 years ago are already underwater due to declining prices and can't sell without coming up with cash out of pocket. Also even with a low interest rate at the current prices people need to look at what their total outlay of cash will be over the life of the loan really it's obscene IMO . Couple that with all the elevated maintenance costs, taxes and insurance it's a much larger financial commitment that just a few short years ago regardless of the interest rate. But heck lots of stupid people out there thinking only interest rates matter might prove you right, perhaps more than I imagine.
I always thought the homeowner going to sell should have a homeowners inspection done first at their cost b4 even trying to sell. Ive seen so many people get inspections & want to back out & the sellers keep their deposit or want to sue. Obviously awful people but their are many out there. I also know realtors that would under price a listing & have a friend come in at full asking price & rip people off.. they are going to Hell someday.🔥
I completely agree with the seller doing an inspection pre-list. I did that with my last home. Such a forward thinking approach!
Not in all states in the union are inspectors lisenced. People thought real estate is fun easy-going to easy to get lisenced. ... go FSB and see yourself through this mess...😅 layers are the crooks. Noone truly has any ideas on the constitution the bill of rights and the comon law....Americans rather watch Hollywood and football while the layers judges and lobiests make law and statues and Americans fall for it...😂
Get rid of buyer's agents! They are not needed. Real estate lawyers do the job, you need . Not a door opener! Stop trying to make realtors so important.
Real estate agents are to real estate what financial planners are to investing. Their insights and experience can be life changing when it all comes together. Having said that some investors go to Charles Schwab and Robinhood and for those people they can buy a house with an attorney. There is no one solution.
What Real Estate lawyers are going to pay MLS fees, and show houses to buyers all day long?
No one has experience in this new law do they
No one NEEDS a realtor and they certainly are not worth their fee. And I have bought and sold multiple houses. You guys are blockbuster and we can stream.
There will always be a need for trusted, experienced real estate agents just like financial planners. You can trade at Robinhood at your own risk or capitalize on the experience and models a CFP provides to protect your wealth. Realtors provide that education, support and insight.
@@TheRuethTeam truth
I believe having a professional Realtor on your side is worth it. Especially when it comes to inspections terminates bringing more buyers to your home that are already screened and pre approved. The commission is always negatioable.
I was a broker for over 40 years. Yes, commissions are too high. It’s time to DROP your conventional broker and go with a company that lets you keep all of the commission. Brokers are a house to TRAIN AGENTS and take half of the commission. It’s time for ALL AGENTS to be their own broker, thereby reducing commissions substantially. The big brokerages are getting money that SHOULD go to the Buyer and Seller. We owned a discount company from 2002-2008. We saved 10s of thousands for sellers, and buyers got a lower price. We lost it all in the BANKSTER STEAL in 2008. If the market changes, I might take the RE course for a FIFTH TIME. It s INSANE for agents to have to retake the course every time. You should only have to take the LAW portion and review the other stuff. Also, I shouldn’t have to pay $2000 a year in DUES to a to use the MLS.
That’s true about a lot of things though lawyers, plumbers, construction workers, factory workers, executives, etc… you don’t need anyone and can do it all yourself and it will never be worth it to you. But if you want quality and experienced help. It’s gonna cost you and for 89% of home buyers they felt value in using an agent. But there are many out there that are DIY people.
Get rid of buyers agent!
@@nildalindsley2727 and then what? Get rid of all financial planners and CPAs? Buyers agents serve an incredible role. Some buyers won’t need that kind of support and others will thrive with it. How does that blanket statement help anyone?
buy
Asking the seller to cover the buyer agent commission will make your offer un-attractive. Buyers without any agent have a definite advantage here.
It is the customary way and will be prevalent but in multiple bid situations it will be one of the first negotiation levers used! Not enough people are talking about this.
Less attractive, but this can be made up for with a slightly higher offer price.
@@TheRuethTeam Not bidding either, my offer will stand for 12 to 24 hours. This bidding crap needs to end also. I'm doing my part and others should as well they should a put time limits on their offers 🤷🏻♂️
@@scientificapproach6578 agreed
@@ELEVOPR multiple bids will always have a place, especially in desirable locations. this will not go away.
Agents in zillow wants me to sign a contract just to to tour the house
That’s right.
That is the law now.
But you can make your own contract. Because if you use theirs and decide to pick another buyers agent you will still own buyer agent #1 commission
Either the lender lady doesn’t know that or she is happy not to say