Sorry to hear... Most agents never make more commission than the seller on a home, in rare cases where the owner only lived in a home for under 5 years and does not have equity in their homes. Most sellers I have represented, come out close to $100k after paying commission....
It's like buying a car. If they smell that you are not informed they will take advantage of you. You should be more informed or at least have one friend who knows more than you.
Try it yourself and see how much you need a realtor. If not, get a lawyer you'll need either one for legal docs. You'll learn quickly. I'm assuming you've never purchased a property
@@CreateYourWorth You must be a realtor. You don't need a realtor or a lawyer to sell a home. The title company does all the paper work. I have already sold a home myself.
As an agent we love when you dont have one. Your the seller, great heres the inspection notice, please have all invoices, lien waivers and paid reciepts to me 3 days before closing let me know if you need a roofer and and hvac guy they can get it done before closing.... your the buyer great we can close asap no agent fees to you just let me see your pre approval also theres multiple offers what do you wnt to offer to get the house, ok esign this doc here, you can get an inspection if you want to but its got good bones.... then i get both sides of the commision lol
@@destroystreets1023 multiple offer no problem, sold as is zero contingencies. Get a real estate attorney pay them 1500 bucks done deal this eliminates the re agents lies,tricks, billing BS! Been in mortgage since 1989. This a predatory job bothering homeowners and stealing all there years of hard earned Equity. I'm not saying dont make money but make it Moral. 1 percent is fine but never to exceed that 1 percent.
You don't need an Attorney when you go to court. However, there are two sides, the prosecution and defense. When you do it on your own, you don't have someone professionally completing the paperwork in your best interest. I think analysis of deals constructed by agents vs deals accepted by a real estate novice show obvious differences in out-of-pocket expenses. Buyers who work with a buyers agent have the ability to submit more competitive offers, while still paying less out of pocket. Sellers benefit, receive more competitive offers, and save TIME when their new listings receive multiple offers from competing buyers agents who may have spent much more time grooming and preparing a buyer to complete a transaction. There are so many things advanced agents can do, that novice people never even think about; like asking to have 6 months of their mortgage payments pre-paid for them. Advanced agents with experience add value to transactions. Also, being a licensed Attorney does not qualify someone to practice real estate. It only allows them to sit for the exam without going to real estate school first. Even licensed Attorneys must still take and pass the real estate/ or brokers exam to practice in residential real estate transactions. Historically, real estate has been filled with bias. Blacks and people of color were denied mortgages because of their race before the Fair Housing Act (FHA) of 1968. Sellers have codified racial discrimination with restrictive covenants in deeds. Sellers have also sold people houses and not the land under the house (Ground Rent) en mass. This practice, while frowned upon, still plagues cities like Baltimore to this day. Caveat emptor.
yes it does. typically about 6% of the sale price is commissions. so, on a $1m home - you'll get about $940k. the "beauty" of the current system is that buyers are able to finance the commissions in their mortgage. after ruling - you might think you're still going to sell your house for $1m... and now only pay seller commission and get $975k instead of $940k (woo!) - but the reality is every buyer now has to come up with an extra $25k, and likely, up front. so - you've just reduced the buying power of every buyer. the demand curve shifts down. everything being equal - previously, $1m might require a buyer to have $220k in cash ($200k for 20% down and $20k for closing) and an $800k mortgage. now it would require a buyer to have $245k ($200k for 20% down, $20k for closing, and $25k for buyer commission) and an $800k mortgage. as money doesn't materialize out of thin air, most likely a buyer will now see their $220k as letting them have $20k for closing, $20k-ish for commissions, and $180k for a down payment, putting them more in the market for a house in the low $900k's.
@@kellis773 it's a free country, you can put your house on the market at whatever price you want. you could put a tiny shack in the ghetto on the market for $10m... if you want - doesn't mean anyone will buy it, or buy it as quickly as you'd like. believe you me, there are people that totally do that. they put their house on the market for some price that is way above market and just let it sit there... hoping for some luck... or just really aren't eager to sell. but, we're talking about the general housing market of people that want to buy and sell with some urgency. the change in how commissions are paid will reduce buying power and will be a downward influence on the overall market. also... saying you don't care about commissions might make you feel empowered or something - but the reality is you're paying them - why wouldn't you care about them?
@@BedbugGaming the only difference in commission percentages that matter or once you’re above $1 million dollars sale and up. This is still a sellers market in terms of getting more at closing back. What good is this? If we have an issue that buyers have to waive various contingencies on purchasing a home
@@seankazmi3129 I don't know if it's good or not - buyers will also theoretically need to have more cash. What I'm saying is that if buyer's must pay the current commission to the buyer's agent, it is a downward pressure on the overall market. This isn't even disputable, it's just basic economics.
Realtors are the biggest scammers in home buying. Who cleans and sets up a home for a open house, the home owner. Who tells the buyer what is wrong with the house, the home inspector, who does the paper work when selling the home, THE TITLE COMPANY. The realtor takes 5 minutes to type up an ad and put it on the internet. Then spends 2 or 3 hours showing a home during open house. So basically they are a Walmart greeter and want $24000 for a $400000 home. The MLS is the biggest realtor mafia scam out there.
6% of purchase is crazy. They do about the same amount of work regardless the price of home. This is good for buyers and sellers. Don't believer the realtors when the cry about this increasing costs, it does exactly the opposite. Makes them compete.
They’ve always competed. People just need to talk to more than one and not get emotional about the buying/selling process until they’ve picked a good solid agent to handle their business.
It's interesting how attorneys receive retainer fees, often without the same level of expenses as realtors. They're not sacrificing family time, working around the clock, including nights, holidays, and weekends, often missing out on important family moments. Realtors do all of this and more, yet most don't charge a retainer or upfront fees to cover expenses like gas, car maintenance, and labor. It's evident that many people aren't aware of the extensive costs and time commitments involved in real estate. This lack of understanding is perhaps why many new agents struggle to sustain their careers beyond a year. I've been collaborating with four new agents, and they all express concerns about how to generate business. Consider the cost of Google ads, for instance, where the lowest fee is $600 per month for fewer than 8 leads. Moreover, approximately 99% of these leads turn out to be unproductive, mere window shoppers, or prospects that may not materialize into a sale for another 1 to 5 years. It's a testament to the long game in real estate, exemplified by my recent sale from a lead that had been in my pipeline for over 5 years.
I am an agent in Australia - can be only a week on market sometimes haha - so it is easy once you get the listing but getting the listing is the hard part and where the work is done I suppose.
Typically a flat fee too. Only If you buy a home with them after which they assume will be 3% which a buyer may have to pay now if not some other portion of that. They still ask for 4% or a flat fee to present 3% a buyers agent.
@@spencercoleman3191 exactly, I am talking to Redfin to sell my home, and they ask for 4% seller agent fee and also I need to pay a 1.5% Redfin listing fee, which is rather odd.
ripped off?? This means when you go to buy a home you need a down payment, closing costs and another 15 grand for your realtor...looks like you'll be getting ripped off...
@@commonsenseisntcommon1776 Good for you, but those between 18 and 35 that didnt get to jump on the bad wagon now have high rates and unaffordable home prices ON TOP OF NOW HAVING TO PAY A REALTOR with closing costs. What a joke...
LOL you don't understand how any of this works. This doesn't mean it costs you less. It means the seller no longer pays for your agent, which means if you can't afford one you're going to get screwed because you don't have any representation in the biggest financial transaction in your entire life. It's insane you think this is a win for buyers. You're about the be ripped off harder LOL
About dam time! In my experience the tittle company and the loan agent do most of the work. Realtor market place is over saturated with would be realtors looking to make a killing on each home sale/s. (For context I’m in Northern California) it’s simple, it’s hard to justify realtor commissions for the amount of work they do! And before any realtor reply’s to my post! I don’t care! I’m glad the party is over and the gauging of sellers and buyers had to stop some day! Now if we can only put an end to foreign investors and banks purchasing residential homes but that’s a different topic all together!
Nonsense. Last week I hand delivered 260 door hanger flyers for an open house in pouring rain. Then shot and edited video for social media about the open house. Then sacrificed 4 hours of each day of my weekend hosting the open house that I could’ve spent with my kid. Not to mention that the costs of printing the flyers, signs, balloons, snacks and bottled water for open house visitors are on me. And open houses are only a part of the professional service we perform. There’s the rest of the marketing, comprehensive market analysis, scheduling showings, negotiating on behalf of clients, etc etc. NO title company/closing attorney or loan officer would do that for a sale. They maybe do a days worth of work per transaction. Title companies/closing attorneys can do thousands of closings a year. From beginning to end, a single transaction can take months to close, and the realtor is the only professional actively involved, holding their clients hand, step by step through the entire process.
What you said is demonstrably false. And that's fine. I already have a house so I'm happy with that. PLEASE don't bring an agent with you to buy my house LMAO. If you think the price of homes will drop, you have another thing coming. The price of the home is going to be whatever the market will bear. What will happen is sellers like me will just keep more money in our pockets. We're not going to drop the house price. So now, thanks to these lawyers who took the settlement money for themselves for a big payday BTW F*CKING WAY-it did not go back to people who got "price gouged", you'll end up paying more and risking more as a future home buyer. Sellers no longer have to cover your agent’s fees, which might make you think you don’t need a buyer’s agent, but this just means you’ll lack representation in what could be the biggest financial deal of your life. INSANE lol. Congratulations to those of you who are now celebrating your own screw job while trying to buy a house that's already out of reach lol.
It sounds like you're upset that realtors make a lot of money. You should be upset that buying your house without buyer representation is like representing yourself in court lol.
That's fine. I already have a house so I'm happy with that. PLEASE don't bring an agent with you to buy my house LMAO. If you think the price of homes will drop, you have another thing coming. The price of the home is going to be whatever the market will bear. What will happen is sellers like me will just keep more money in our pockets. We're not going to drop the house price. So now, thanks to these lawyers who took the settlement money for themselves, you'll end up paying more and risking more as a future home buyer. Sellers no longer have to cover your agent’s fees, which might make you think you don’t need a buyer’s agent, but this just means you’ll lack representation in what could be the biggest financial deal of your life. INSANE lol. Congratulations to those who are now celebrating their own misfortune while trying to buy a house that's already out of reach.
There's no price or robot you can put in place for the knowledge we have and how we do what's in the best interests of our clients. We have a license and uphold high standards of ethics. Along with negotiating skills.
@Omikoshi78 GEDs? I have several College Degrees. Plus a Real Estate License. I'm not sure where you received your information. You use whomever you want and pay out of pocket more than you would a Realtor. By all means, please educate yourself more.
This will hurt buyers and sellers. Sellers will not get the best outcome without incentivizing a professional buyer agent, therefore inventory will start to build up because the homes will not sell as fast. Buyers are now facing having to pay a buyer agent commission
simply put - it will cost buyers more up front to buy homes, they will have less purchasing power. this will be a downward influence on the market. to what extent remains to be seen.
the title company does what they are supposed to do, which is making sure you have or are receiving a free and clear title. to get to that point you have to have a sales offer. which means you advertise your home for sale right???? so who does that? an average person can't list their house on the biggest advertising platform with that being MLS without a real estate license and being a NAR member. If for sale by owners sold faster than using a broker, that's how every seller would sell, but the reality is using a broker gets faster and better results. There are many different nuances that go with selling or buying a house, and a homeowner with no knowledge could end up losing everything without proper guidance. I was taught and still believe everything is negotiable... sellers can negotiate lower commission percentages with their broker but did not. Just as a agent doesn't have to take your listing at the commission rate if doesn't want to. so what's going to happen is you are going to have brokers that have such a well-known name and reputation on top of a ton of experience, and they just won't represent sellers that won't pay their commission rate.
Few thing that raises eyebrows about this realtor: 1. Things are not moving fast in a 7% interest environment. Utter BS 2. There’s nothing she provides that an app or checklist can’t do 3. When the market stabilizes buy side will likely have to work for a fixed fee (if they’re not automated away) All the whining from realtor just proves that the medicine is working.
This is not a good thing for agents or home buyers. Anyone telling you differently is either lying or an idiot! Buyers will have to pay more closing cost out of pocket.
it should also cause the nominal value of homes to drop by some multiple of the new commission (buyers simply won't have the money). it could be a great thing, if you're flush with cash... not so great if you are financing.
You sound like you don't understand how buying and selling works. 100% of marketing and staging and legal services comes out of the Real Estate Agent's pocket, before they even know if the house will sell. Offers fall through all the time. You have no idea what you're talking about. For every house deal that goes through 6 or 7 other's don't. Too many ignorant people talking on this topic.
I'm a former agent who hates the real estate business along with the people who work in it. With that said the sellers are going to win here because now they can save 50% commission. And if the seller decides to buy again they won't mind paying their buyers agent because they saved 50% when they sold. The first time buyers are the ones who are going to get hard because now they have to pay extra just so an agent can represent them or pay a lawyer to do the paperwork. Some people might think I'll just take a course or get a book from the library and represent myself. It's been done before but it's gambling with the largest possible investment of a lifetime. There are too many moving parts, too many chances of making a mistake and paying for it in the long run.
I am a RE Appraiser, RE Broker and a Mortgage Banker. I have done this since 1984. I am thrilled at the changes to commission structure. Why? I am going to get to sue so many homeowners, banks and title companies. How? Not saying but I am 23 - 0 in court in the state I live in. Looking forward to those settlement checks. I'm not joking nor bs'ing anyone. More forward at your own peril. After all, I'm sure many of you stayed at a Holiday Inn last night, you can figure it out. SMH.
NAR failed it is what it is. The lazy buyer agents will deplete and the hard working agents will win in the end. Thank KW & Re/Max for not fighting, which, they had no leg to stand on anyways when they teach you to be a greedy agent in MO saying "You will not be listed on the MLS if you don't accept the 6% commission agreement, That's not negotiatable" - Plaintiffs ... But hey! give the cockroach lawyers a standing ovation to charge their 40% commission on that $1.7 Billion settlement... Which is not negotiatable, right? The real winners are the Lawyers not the 500,000+ seller plaintiffs... they most likey received a letter in the mail from the scumbag lawyers to fill out and sign the lawsuit, to make pennies on the dollar, and have no clue whats going on in first place... So when will the agents go after NAR for the reimbursement of all the fees they paid, since they failed their REALTOR®
Blame the brokers who did not teach the slew of new agents how to properly present a listing agreement. Brokers should value their successful seasoned agents instead of constantly recruiting hoping for one or two transactions out of many. It’s time for a weed out of agents who thought a career in real estate is easy.
It's understandable that you might feel that your real estate agent's role was limited to just opening doors, especially if that was your primary observation during the process. However, it's essential to recognize that a proficient buyer's agent's responsibilities encompass far more than that initial impression. While it's true that some agents delegate the task of showing properties to newer agents, their value lies in the extensive work they do behind the scenes. This includes negotiating on your behalf, ensuring the home is priced accurately, confirming your qualification as a buyer, and coordinating with various parties such as lenders, title companies, inspectors, and sometimes even contractors or moving companies. The reason for this comprehensive approach is to make the entire homebuying experience seamless and stress-free for you. A skilled real estate agent operates with the goal of shielding you from the complexities and challenges inherent in real estate transactions. By handling the intricate details behind the scenes, they allow you to focus on finding the right home without being burdened by the less glamorous aspects of the process. So while it might seem like your agent's role was minimal based solely on the task of opening doors, their effectiveness is measured by the smoothness of the entire transaction and the peace of mind they provide you throughout the process.
Exactly I might pay 25 bucks an hour for someone to tour a home with me but don't think you're getting $15,000 for opening a door and telling me your thoughts. I can put in an offer myself I can open doors myself. I can hire home inspectors myself. What do these buyers agents really do anyways
Now you have to pay out of you're pocket for the agent to open the door. The buyers are gonna get screwed especially the buyers who are moving up from renting.
Why on earth would you pay a buyer's agent The money is better off spent increasing your offer and on professionals like home inspectors. The only thing you need to buy your agent to do is open the door and now the seller agent is going to be far more motivated to do so for you
@@zo9632 the buyer's attorney is going to fill out the paperwork attorneys are also real estate people they do not need to get a real estate license to practice
If you used the seller's agent to buy your house you 100% got screwed. You're just too under-informed about the documentation to know how. Seller's agents are contractually bound to write the deal in the seller's best interest. Not yours. Buyer's agents are contractually bound to negotiate the deal in YOUR best interest. The agents fight it out and a compromise happens where both parties give a little and get a lot. That's how it works. Imagine letting The guy who wants to sell you dental insurance sell you candy bars and let's you buy them with tooth brushes? That's what it's like letting the seller's agent make you their customer lol because you are definitely not their client. The seller is.
@@yeahaboutthatthough3656 I bought back in 2017 and value almost doubled. House is only 10 years old. Good try on your side. See this is the reason why we need less agent interactions. You speak nonsense as if truth just to get away..
You can see how contentious this issue has already become. It was a terrible rule change on so many levels. Get ready to enjoy the slowest housing market ever.
20 years ago realtors were saying the same thing. "Navigating this incredibly difficult pile of paperwork cannot be left to just anyone'. Uhh, news flash. A dog with a note in his mouth could do one of these transactions.
Having purchased several houses in my life, I can safely say that having a realtor helps in a lot of ways. I can promise that this settlement is not going to have the intended result, because now there will be way more people trying to buy on their own, and they are going to get fucked most of the time because they don't know what they are doing.
She sounds like a good realtor unlike most who have reduced themselves from an agent, to a salesperson, to an order taker using fake perceived value that nobody believed.
They said he could lower home prices 😂 it’s funny how the media tries to make it look like this whole thing is bad for buyers For an example If you want to buy a house Or an asset or a business or an investment Then you should hire professional that has passion and has been studying and has gained much experience A bad example would be hiring somebody that works at Walmart and never even owned a home before and will never be able to afford a home, but you wanna save money so you hire this person to do your paperwork and Financial advising But the blind leads the blind in the majority and popularity always wins the vote so here we go, Rich getting rich and poor, getting poor
Most people don’t know that most agents worked hard for their money, and agents have to pay lots desk fee, mls fee, insurance, signage and lockbox fee, gasoline etc even they don’t make a penny if deal don’t close after they showed a buyer 50 to 100 homes(no joking), who is going to show or help veterans to buy homes now since VA policy forbidding buyer to pay any fee to agent?you can change law or policy anyway you want, it’s free market and no one can survival if working for free or $minimum wage in the long term. Why hire agent at all or even pay 2.5% or flat fee to anyone if you can DIY? (Buy or sell) since Fsbo existed over 100 years ago. Not try to argue with either side, it’s free country, free market, More power to people.
and yet there are more realtors than homes available in many markets. If realtors are getting screwed here, what is the attraction to the profession? I think many of us non-realtors already know the answer to this question.
If you think you don’t need an agent you’re a fool. The difference lies in who is a realtor and who is a “realtor” that is the difference in quality vs quantity agents that will still thrive in this market
She's not worried at all well sweetheart you better be it's about to get ugly for you. People are tired of getting cut in so realtors can walk around open a door add their two cents and collect thousands. It's not happening anymore
There are going to be plenty of deals and lawsuits when these buyers not informed buy a propperty that is a lemon, because they bought it without a Realtor.
That's what home inspectors do not what real estate agents do. They turn the key open the door and tried to sell you on its features. Sure they might give you their two cents on something that's off but if you're relying on a real estate agent to protect you from a lemon you're in deep trouble
When you have a signed active contract for service with a seller or buyer they are a client. And even after the sale or expiration she has a fiduciary duty of confidentiality.
This is good for sellers because they no longer have to pay for buyers fee and bad for buyers because now they have to pay their agent out of pocket 😂.
@@zach2733 the only consequence will be cheaper transactions, more control for individuals who don’t want a realtor, lower prices, and realtors making what they are worth, which is about the 40k a year.
I am not a realtor, have no connection to any realtors. However, I have bought houses in my life, and I have seen other people buy houses. I can guarantee that this is going to cause a lot more issues than people like you are expecting.
@@Max_Griswald Exactly. First time homebuyers are being priced out of representation. Agent commissions will now be part of the purchase contract negotiations, which is bad. Agents will "steer" clients away from homes that pay 0%, and justifiably so. Only ones who benefit are the big corporate buyers who will enjoy a price dip, and less competition from individuals who can't afford buyer agent commissions.
Commissions are a scam, I have to pay you 5-6% of the listing price, for what?? Taking a few photos and posting it on your website site? Wow that must be soo hard, does it require a maters degree 😂, can’t wait for the housing market to crash again and you realtors are working at Walmart to make ends meet and I’ll be chilling in 280k house that I got for less that 100k
I sold my house before and the realtors made $52,000 and I made $21,000 after costs
Sorry to hear... Most agents never make more commission than the seller on a home, in rare cases where the owner only lived in a home for under 5 years and does not have equity in their homes. Most sellers I have represented, come out close to $100k after paying commission....
You must not have had a lot of equity built up. Most sellers coming off the table today with at least $100,000.
You sold that home with very low equity.
It's like buying a car. If they smell that you are not informed they will take advantage of you. You should be more informed or at least have one friend who knows more than you.
Sell it yourself next time and see how you fare....lol
Study folks you dont need a agent.
Try it yourself and see how much you need a realtor. If not, get a lawyer you'll need either one for legal docs. You'll learn quickly. I'm assuming you've never purchased a property
@@CreateYourWorth You must be a realtor. You don't need a realtor or a lawyer to sell a home. The title company does all the paper work. I have already sold a home myself.
As an agent we love when you dont have one.
Your the seller, great heres the inspection notice, please have all invoices, lien waivers and paid reciepts to me 3 days before closing let me know if you need a roofer and and hvac guy they can get it done before closing....
your the buyer great we can close asap no agent fees to you just let me see your pre approval also theres multiple offers what do you wnt to offer to get the house, ok esign this doc here, you can get an inspection if you want to but its got good bones.... then i get both sides of the commision lol
@@destroystreets1023 multiple offer no problem, sold as is zero contingencies. Get a real estate attorney pay them 1500 bucks done deal this eliminates the re agents lies,tricks, billing BS! Been in mortgage since 1989. This a predatory job bothering homeowners and stealing all there years of hard earned Equity. I'm not saying dont make money but make it Moral. 1 percent is fine but never to exceed that 1 percent.
You don't need an Attorney when you go to court. However, there are two sides, the prosecution and defense. When you do it on your own, you don't have someone professionally completing the paperwork in your best interest. I think analysis of deals constructed by agents vs deals accepted by a real estate novice show obvious differences in out-of-pocket expenses. Buyers who work with a buyers agent have the ability to submit more competitive offers, while still paying less out of pocket. Sellers benefit, receive more competitive offers, and save TIME when their new listings receive multiple offers from competing buyers agents who may have spent much more time grooming and preparing a buyer to complete a transaction. There are so many things advanced agents can do, that novice people never even think about; like asking to have 6 months of their mortgage payments pre-paid for them. Advanced agents with experience add value to transactions. Also, being a licensed Attorney does not qualify someone to practice real estate. It only allows them to sit for the exam without going to real estate school first. Even licensed Attorneys must still take and pass the real estate/ or brokers exam to practice in residential real estate transactions.
Historically, real estate has been filled with bias. Blacks and people of color were denied mortgages because of their race before the Fair Housing Act (FHA) of 1968. Sellers have codified racial discrimination with restrictive covenants in deeds. Sellers have also sold people houses and not the land under the house (Ground Rent) en mass. This practice, while frowned upon, still plagues cities like Baltimore to this day. Caveat emptor.
How is this going to bring housing prices down? My house value has nothing to do with a realtors commission check?
yes it does. typically about 6% of the sale price is commissions. so, on a $1m home - you'll get about $940k. the "beauty" of the current system is that buyers are able to finance the commissions in their mortgage. after ruling - you might think you're still going to sell your house for $1m... and now only pay seller commission and get $975k instead of $940k (woo!) - but the reality is every buyer now has to come up with an extra $25k, and likely, up front. so - you've just reduced the buying power of every buyer. the demand curve shifts down. everything being equal - previously, $1m might require a buyer to have $220k in cash ($200k for 20% down and $20k for closing) and an $800k mortgage. now it would require a buyer to have $245k ($200k for 20% down, $20k for closing, and $25k for buyer commission) and an $800k mortgage. as money doesn't materialize out of thin air, most likely a buyer will now see their $220k as letting them have $20k for closing, $20k-ish for commissions, and $180k for a down payment, putting them more in the market for a house in the low $900k's.
@BedbugGaming I'm not going to lower my price because of a realtors' commission. My value is the value, and I don't care about commissions.
@@kellis773 it's a free country, you can put your house on the market at whatever price you want. you could put a tiny shack in the ghetto on the market for $10m... if you want - doesn't mean anyone will buy it, or buy it as quickly as you'd like. believe you me, there are people that totally do that. they put their house on the market for some price that is way above market and just let it sit there... hoping for some luck... or just really aren't eager to sell. but, we're talking about the general housing market of people that want to buy and sell with some urgency. the change in how commissions are paid will reduce buying power and will be a downward influence on the overall market. also... saying you don't care about commissions might make you feel empowered or something - but the reality is you're paying them - why wouldn't you care about them?
@@BedbugGaming the only difference in commission percentages that matter or once you’re above $1 million dollars sale and up. This is still a sellers market in terms of getting more at closing back.
What good is this? If we have an issue that buyers have to waive various contingencies on purchasing a home
@@seankazmi3129 I don't know if it's good or not - buyers will also theoretically need to have more cash. What I'm saying is that if buyer's must pay the current commission to the buyer's agent, it is a downward pressure on the overall market. This isn't even disputable, it's just basic economics.
Realtors are the biggest scammers in home buying. Who cleans and sets up a home for a open house, the home owner. Who tells the buyer what is wrong with the house, the home inspector, who does the paper work when selling the home, THE TITLE COMPANY. The realtor takes 5 minutes to type up an ad and put it on the internet. Then spends 2 or 3 hours showing a home during open house. So basically they are a Walmart greeter and want $24000 for a $400000 home. The MLS is the biggest realtor mafia scam out there.
6% of purchase is crazy. They do about the same amount of work regardless the price of home. This is good for buyers and sellers. Don't believer the realtors when the cry about this increasing costs, it does exactly the opposite. Makes them compete.
They’ve always competed. People just need to talk to more than one and not get emotional about the buying/selling process until they’ve picked a good solid agent to handle their business.
It's interesting how attorneys receive retainer fees, often without the same level of expenses as realtors. They're not sacrificing family time, working around the clock, including nights, holidays, and weekends, often missing out on important family moments. Realtors do all of this and more, yet most don't charge a retainer or upfront fees to cover expenses like gas, car maintenance, and labor. It's evident that many people aren't aware of the extensive costs and time commitments involved in real estate. This lack of understanding is perhaps why many new agents struggle to sustain their careers beyond a year.
I've been collaborating with four new agents, and they all express concerns about how to generate business. Consider the cost of Google ads, for instance, where the lowest fee is $600 per month for fewer than 8 leads. Moreover, approximately 99% of these leads turn out to be unproductive, mere window shoppers, or prospects that may not materialize into a sale for another 1 to 5 years. It's a testament to the long game in real estate, exemplified by my recent sale from a lead that had been in my pipeline for over 5 years.
6% is very cheap . It’s very hard to close a real estate transaction . Should be 7-8% . Costs 15-30% to be put a high value item in 1 day
You clearly have not the faintest idea what you are talking about. Bless you!@@Gomer-lw7rd
@@Gomer-lw7rdIt is not hard to close most transactions.
So, for those agents how many hours do you typically spend on one sell from the start to finish process?
I've seen some re paint and garden a house
I am an agent in Australia - can be only a week on market sometimes haha - so it is easy once you get the listing but getting the listing is the hard part and where the work is done I suppose.
Redfin is 1% in many areas
Typically a flat fee too. Only If you buy a home with them after which they assume will be 3% which a buyer may have to pay now if not some other portion of that. They still ask for 4% or a flat fee to present 3% a buyers agent.
@@spencercoleman3191 exactly, I am talking to Redfin to sell my home, and they ask for 4% seller agent fee and also I need to pay a 1.5% Redfin listing fee, which is rather odd.
Good! We are sick of being ripped off!
ripped off?? This means when you go to buy a home you need a down payment, closing costs and another 15 grand for your realtor...looks like you'll be getting ripped off...
Some folks are going to have rude awakening 😮
@@silvamarkarian -I have a home and i'll be here for a while, got it at 2.25%
@@commonsenseisntcommon1776 Good for you, but those between 18 and 35 that didnt get to jump on the bad wagon now have high rates and unaffordable home prices ON TOP OF NOW HAVING TO PAY A REALTOR with closing costs. What a joke...
LOL you don't understand how any of this works. This doesn't mean it costs you less. It means the seller no longer pays for your agent, which means if you can't afford one you're going to get screwed because you don't have any representation in the biggest financial transaction in your entire life. It's insane you think this is a win for buyers. You're about the be ripped off harder LOL
About dam time! In my experience the tittle company and the loan agent do most of the work. Realtor market place is over saturated with would be realtors looking to make a killing on each home sale/s. (For context I’m in Northern California) it’s simple, it’s hard to justify realtor commissions for the amount of work they do! And before any realtor reply’s to my post! I don’t care! I’m glad the party is over and the gauging of sellers and buyers had to stop some day! Now if we can only put an end to foreign investors and banks purchasing residential homes but that’s a different topic all together!
I don't think you understand what Realtors actually get paid! This is the problem. A good Realtor earns every penny to work hard for their clients.
Nonsense. Last week I hand delivered 260 door hanger flyers for an open house in pouring rain. Then shot and edited video for social media about the open house. Then sacrificed 4 hours of each day of my weekend hosting the open house that I could’ve spent with my kid. Not to mention that the costs of printing the flyers, signs, balloons, snacks and bottled water for open house visitors are on me. And open houses are only a part of the professional service we perform. There’s the rest of the marketing, comprehensive market analysis, scheduling showings, negotiating on behalf of clients, etc etc.
NO title company/closing attorney or loan officer would do that for a sale. They maybe do a days worth of work per transaction. Title companies/closing attorneys can do thousands of closings a year. From beginning to end, a single transaction can take months to close, and the realtor is the only professional actively involved, holding their clients hand, step by step through the entire process.
What you said is demonstrably false. And that's fine. I already have a house so I'm happy with that. PLEASE don't bring an agent with you to buy my house LMAO. If you think the price of homes will drop, you have another thing coming. The price of the home is going to be whatever the market will bear. What will happen is sellers like me will just keep more money in our pockets. We're not going to drop the house price. So now, thanks to these lawyers who took the settlement money for themselves for a big payday BTW F*CKING WAY-it did not go back to people who got "price gouged", you'll end up paying more and risking more as a future home buyer. Sellers no longer have to cover your agent’s fees, which might make you think you don’t need a buyer’s agent, but this just means you’ll lack representation in what could be the biggest financial deal of your life. INSANE lol. Congratulations to those of you who are now celebrating your own screw job while trying to buy a house that's already out of reach lol.
It sounds like you're upset that realtors make a lot of money. You should be upset that buying your house without buyer representation is like representing yourself in court lol.
That's fine. I already have a house so I'm happy with that. PLEASE don't bring an agent with you to buy my house LMAO. If you think the price of homes will drop, you have another thing coming. The price of the home is going to be whatever the market will bear. What will happen is sellers like me will just keep more money in our pockets. We're not going to drop the house price. So now, thanks to these lawyers who took the settlement money for themselves, you'll end up paying more and risking more as a future home buyer. Sellers no longer have to cover your agent’s fees, which might make you think you don’t need a buyer’s agent, but this just means you’ll lack representation in what could be the biggest financial deal of your life. INSANE lol. Congratulations to those who are now celebrating their own misfortune while trying to buy a house that's already out of reach.
Buyer agents will be replaced by chatbots 😂. Naive to think they’ll be around. They’re DVDs in the world of Netflix.
There's no price or robot you can put in place for the knowledge we have and how we do what's in the best interests of our clients. We have a license and uphold high standards of ethics. Along with negotiating skills.
@@scorson74 why hire an agent with GED when we have Zillow and RE attorneys with actual law degrees?
I’m using the library and a lawyer
@Omikoshi78 GEDs? I have several College Degrees. Plus a Real Estate License. I'm not sure where you received your information. You use whomever you want and pay out of pocket more than you would a Realtor. By all means, please educate yourself more.
@@scorson74ok so you’re concerned enough to respond here. That speaks volumes.
This will hurt buyers and sellers. Sellers will not get the best outcome without incentivizing a professional buyer agent, therefore inventory will start to build up because the homes will not sell as fast. Buyers are now facing having to pay a buyer agent commission
simply put - it will cost buyers more up front to buy homes, they will have less purchasing power. this will be a downward influence on the market. to what extent remains to be seen.
@@BedbugGamingWinter is coming, and I don't mean the season.
You can't imagine ??? Yeah, you probably can't . Start.
Standard contracts are VERY easy to fill out & the title company does the real work.
the title company does what they are supposed to do, which is making sure you have or are receiving a free and clear title. to get to that point you have to have a sales offer. which means you advertise your home for sale right???? so who does that? an average person can't list their house on the biggest advertising platform with that being MLS without a real estate license and being a NAR member. If for sale by owners sold faster than using a broker, that's how every seller would sell, but the reality is using a broker gets faster and better results. There are many different nuances that go with selling or buying a house, and a homeowner with no knowledge could end up losing everything without proper guidance. I was taught and still believe everything is negotiable... sellers can negotiate lower commission percentages with their broker but did not. Just as a agent doesn't have to take your listing at the commission rate if doesn't want to. so what's going to happen is you are going to have brokers that have such a well-known name and reputation on top of a ton of experience, and they just won't represent sellers that won't pay their commission rate.
Few thing that raises eyebrows about this realtor:
1. Things are not moving fast in a 7% interest environment. Utter BS
2. There’s nothing she provides that an app or checklist can’t do
3. When the market stabilizes buy side will likely have to work for a fixed fee (if they’re not automated away)
All the whining from realtor just proves that the medicine is working.
This is not a good thing for agents or home buyers. Anyone telling you differently is either lying or an idiot! Buyers will have to pay more closing cost out of pocket.
it should also cause the nominal value of homes to drop by some multiple of the new commission (buyers simply won't have the money). it could be a great thing, if you're flush with cash... not so great if you are financing.
There was no justification for a commission fee if we’re paying you a certain amount for finding or selling a house for us.
You sound like you don't understand how buying and selling works. 100% of marketing and staging and legal services comes out of the Real Estate Agent's pocket, before they even know if the house will sell. Offers fall through all the time. You have no idea what you're talking about. For every house deal that goes through 6 or 7 other's don't. Too many ignorant people talking on this topic.
And the buyer has to sign a contract with an agent before even viewing the house
Just sad reading the comments. No one here knows anything about the business
Much like everything else on the internet.
Exactly.
I'm a former agent who hates the real estate business along with the people who work in it. With that said the sellers are going to win here because now they can save 50% commission. And if the seller decides to buy again they won't mind paying their buyers agent because they saved 50% when they sold. The first time buyers are the ones who are going to get hard because now they have to pay extra just so an agent can represent them or pay a lawyer to do the paperwork. Some people might think I'll just take a course or get a book from the library and represent myself. It's been done before but it's gambling with the largest possible investment of a lifetime. There are too many moving parts, too many chances of making a mistake and paying for it in the long run.
@@zo9632 no one cares about your opinion
I am a RE Appraiser, RE Broker and a Mortgage Banker. I have done this since 1984. I am thrilled at the changes to commission structure. Why? I am going to get to sue so many homeowners, banks and title companies. How? Not saying but I am 23 - 0 in court in the state I live in. Looking forward to those settlement checks. I'm not joking nor bs'ing anyone. More forward at your own peril. After all, I'm sure many of you stayed at a Holiday Inn last night, you can figure it out. SMH.
NAR failed it is what it is. The lazy buyer agents will deplete and the hard working agents will win in the end. Thank KW & Re/Max for not fighting, which, they had no leg to stand on anyways when they teach you to be a greedy agent in MO saying "You will not be listed on the MLS if you don't accept the 6% commission agreement, That's not negotiatable" - Plaintiffs ... But hey! give the cockroach lawyers a standing ovation to charge their 40% commission on that $1.7 Billion settlement... Which is not negotiatable, right? The real winners are the Lawyers not the 500,000+ seller plaintiffs... they most likey received a letter in the mail from the scumbag lawyers to fill out and sign the lawsuit, to make pennies on the dollar, and have no clue whats going on in first place... So when will the agents go after NAR for the reimbursement of all the fees they paid, since they failed their REALTOR®
Blame the brokers who did not teach the slew of new agents how to properly present a listing agreement. Brokers should value their successful seasoned agents instead of constantly recruiting hoping for one or two transactions out of many. It’s time for a weed out of agents who thought a career in real estate is easy.
My real estate agent just opened the door and said go take a look something I could’ve done on my own
It's understandable that you might feel that your real estate agent's role was limited to just opening doors, especially if that was your primary observation during the process. However, it's essential to recognize that a proficient buyer's agent's responsibilities encompass far more than that initial impression.
While it's true that some agents delegate the task of showing properties to newer agents, their value lies in the extensive work they do behind the scenes. This includes negotiating on your behalf, ensuring the home is priced accurately, confirming your qualification as a buyer, and coordinating with various parties such as lenders, title companies, inspectors, and sometimes even contractors or moving companies.
The reason for this comprehensive approach is to make the entire homebuying experience seamless and stress-free for you. A skilled real estate agent operates with the goal of shielding you from the complexities and challenges inherent in real estate transactions. By handling the intricate details behind the scenes, they allow you to focus on finding the right home without being burdened by the less glamorous aspects of the process.
So while it might seem like your agent's role was minimal based solely on the task of opening doors, their effectiveness is measured by the smoothness of the entire transaction and the peace of mind they provide you throughout the process.
Not if they aren't wanting you there without representation. They don't know you
Exactly I might pay 25 bucks an hour for someone to tour a home with me but don't think you're getting $15,000 for opening a door and telling me your thoughts. I can put in an offer myself I can open doors myself. I can hire home inspectors myself. What do these buyers agents really do anyways
Hopefully the 6% eventually gets phased out of the norm and it becomes sufficiently cheaper to sell your House.
Now you have to pay out of you're pocket for the agent to open the door. The buyers are gonna get screwed especially the buyers who are moving up from renting.
Sellers are overjoyed until they have to find a home and pay a buyer's agent. You pay one way or another.
Why on earth would you pay a buyer's agent The money is better off spent increasing your offer and on professionals like home inspectors. The only thing you need to buy your agent to do is open the door and now the seller agent is going to be far more motivated to do so for you
@@MrThe1234guyWho is going to fill out the buyers part of the paperwork and make sure the buyer isn't getting screwed?
@@zo9632 the buyer's attorney is going to fill out the paperwork attorneys are also real estate people they do not need to get a real estate license to practice
No need to have agents anyways
Bought 2 houses- each time I skipped having a buyer agent and used seller’s agent to buy me the house with drop negotiated
If you used the seller's agent to buy your house you 100% got screwed. You're just too under-informed about the documentation to know how. Seller's agents are contractually bound to write the deal in the seller's best interest. Not yours. Buyer's agents are contractually bound to negotiate the deal in YOUR best interest. The agents fight it out and a compromise happens where both parties give a little and get a lot. That's how it works. Imagine letting The guy who wants to sell you dental insurance sell you candy bars and let's you buy them with tooth brushes? That's what it's like letting the seller's agent make you their customer lol because you are definitely not their client. The seller is.
@@yeahaboutthatthough3656 I bought back in 2017 and value almost doubled. House is only 10 years old. Good try on your side. See this is the reason why we need less agent interactions. You speak nonsense as if truth just to get away..
You can see how contentious this issue has already become. It was a terrible rule change on so many levels. Get ready to enjoy the slowest housing market ever.
How would this make home prices lower? Makes no sense.
20 years ago realtors were saying the same thing. "Navigating this incredibly difficult pile of paperwork cannot be left to just anyone'. Uhh, news flash. A dog with a note in his mouth could do one of these transactions.
If that were the case, Real Estate agents would have ceased to exist many decades ago. So many clueless comments.
Man are you wrong. Good luck with that dog getting you through closing. LOL
Having purchased several houses in my life, I can safely say that having a realtor helps in a lot of ways. I can promise that this settlement is not going to have the intended result, because now there will be way more people trying to buy on their own, and they are going to get fucked most of the time because they don't know what they are doing.
You used the F word@@Max_Griswald
She sounds like a good realtor unlike most who have reduced themselves from an agent, to a salesperson, to an order taker using fake perceived value that nobody believed.
It's about time!
Everything single agent can be replaced by a website, they are completely overpaid.
good luck trying to find a realtor if youre a buyer😂 literally nobody will work for you, why would they..? for free? gfto😂
Exactly. All this did was screw buyers
I can see many agents looking for a new profession. Goodluck to many Realtors. They will need it.
Agents are going to have to actually sign buyers the same way they sign seller listings. It’s that simple.
@@GenXamerica buyers cant afford it.....its going to be a mess. No buyers and black rock buying up all the houses....
Try to sell your house and tell your listing agent you're offering 0% to any buyer agents who bring their clients by, and enjoy the crickets.
They said he could lower home prices 😂 it’s funny how the media tries to make it look like this whole thing is bad for buyers
For an example
If you want to buy a house
Or an asset or a business or an investment
Then you should hire professional that has passion and has been studying and has gained much experience
A bad example would be hiring somebody that works at Walmart and never even owned a home before and will never be able to afford a home, but you wanna save money so you hire this person to do your paperwork and Financial advising
But the blind leads the blind in the majority and popularity always wins the vote so here we go, Rich getting rich and poor, getting poor
Trust, they only enter that career because it’s commissioned based
Most people don’t know that most agents worked hard for their money, and agents have to pay lots desk fee, mls fee, insurance, signage and lockbox fee, gasoline etc even they don’t make a penny if deal don’t close after they showed a buyer 50 to 100 homes(no joking), who is going to show or help veterans to buy homes now since VA policy forbidding buyer to pay any fee to agent?you can change law or policy anyway you want, it’s free market and no one can survival if working for free or $minimum wage in the long term. Why hire agent at all or even pay 2.5% or flat fee to anyone if you can DIY? (Buy or sell) since Fsbo existed over 100 years ago. Not try to argue with either side, it’s free country, free market, More power to people.
Hire a lawyer to write up your purchase contract. Require that your lawyer handle the closing. No agent needed. 😮😊
@@tyrehester5550 Did you not read his post?
and yet there are more realtors than homes available in many markets. If realtors are getting screwed here, what is the attraction to the profession? I think many of us non-realtors already know the answer to this question.
@tyrehester5550 - I'd rather pay a realtor's fees than a lawyer's fees.
@@tyrehester5550 last i checked Lawyers don't work for free...
It’s about time🎉
So a buyer could just call the seller agent to view a home and skip this whole buyer agent fees. That’s what I’ll do
I ain't getting a realtor
If you think you don’t need an agent you’re a fool. The difference lies in who is a realtor and who is a “realtor” that is the difference in quality vs quantity agents that will still thrive in this market
I'll take the advice and protections given by a Real Estate Atty any day over a 60 hour "trained" real estate agent!
Please explain to me why someone would be a fool. Unless your agent is getting you early access to a listing they're not really doing much of value.
She's not worried at all well sweetheart you better be it's about to get ugly for you. People are tired of getting cut in so realtors can walk around open a door add their two cents and collect thousands. It's not happening anymore
There are going to be plenty of deals and lawsuits when these buyers not informed buy a propperty that is a lemon, because they bought it without a Realtor.
That's what home inspectors do not what real estate agents do. They turn the key open the door and tried to sell you on its features. Sure they might give you their two cents on something that's off but if you're relying on a real estate agent to protect you from a lemon you're in deep trouble
The old way was good people metaling in something new. New sucks old ways are always the best ways
Love it…. You can sell your own home. You don’t need a realtor. I did it….
TLDR - Fee rules wont go into effect until mid July 2024
We are not supposed to refer to them as clients! She should know better
When you have a signed active contract for service with a seller or buyer they are a client. And even after the sale or expiration she has a fiduciary duty of confidentiality.
This is good for sellers because they no longer have to pay for buyers fee and bad for buyers because now they have to pay their agent out of pocket 😂.
AI should replace car salesmen and realtors! Automate those jobs first (Skynet) AI…….
$500 take it or leave it
Very misleading inaccurate headline to this story
Brokers will probably drop out of Nars and continue to do the same thing
They can't join their MLS without being a member.
@@pizzaguyaz They can create their own MLS.
❤❤❤
So encroaching on another well paid job ,great
Only realtors are pissed. Everyone else can’t wait for a massive change.
Only bad agents are “pissed”. Good agents are happy this weed out of bad ones will finally happen.
Because people don’t realize what the consequences will be to this.
@@zach2733 the only consequence will be cheaper transactions, more control for individuals who don’t want a realtor, lower prices, and realtors making what they are worth, which is about the 40k a year.
I am not a realtor, have no connection to any realtors. However, I have bought houses in my life, and I have seen other people buy houses.
I can guarantee that this is going to cause a lot more issues than people like you are expecting.
@@Max_Griswald Exactly. First time homebuyers are being priced out of representation. Agent commissions will now be part of the purchase contract negotiations, which is bad. Agents will "steer" clients away from homes that pay 0%, and justifiably so. Only ones who benefit are the big corporate buyers who will enjoy a price dip, and less competition from individuals who can't afford buyer agent commissions.
Housing crash in 3, 2, 1
Shady Agent crying 😂
Commissions are a scam, I have to pay you 5-6% of the listing price, for what?? Taking a few photos and posting it on your website site? Wow that must be soo hard, does it require a maters degree 😂, can’t wait for the housing market to crash again and you realtors are working at Walmart to make ends meet and I’ll be chilling in 280k house that I got for less that 100k