Tip I just sold my home that was well over a million dollars with NO relators. We filled out a short form with the buyer. It was easy and did not require any fees. Now I gave a fair price and did not try to screw the buyer for as much money as possible. Be fair and do it on your own.
As a seller I always understood I paid my realtor a commission & whatever he paid the buyer’s agent, from that commission, was between them. This is just a shell game.
@@AudraLambert I don't see a difference on the selling side; its just process and paperwork is different. I pay the listing realtor 3% and I pay buying agent 3% (example, could be different percentages). My concern is when I have sold my house and now I want to buy another to live in. If the seller for my "new" house does NOT want to pay my buying agent, I am then stuck paying my buying agent. I live in NJ (expensive), so the buying agent commission could be considerable. So now I have conceivably paid 2 buyer agent commissions and 1 listing agent commission, right? Even though my house is much too big for me and I would like to downside, between the house prices, mortgage rates, capital gains taxes, election, and this crap shoot on buying agent commission, I think I am safer to just stay where I am!
If I was a seller and the buyer wanted more than 2% to pay his realtor I may negotiate some to make deal If buyer agent wants too much I would increase price of home?
Hi Audra, I own my home in Florida free and clear, and want to sell, and buy elsewhere, in the state. Obviously, the "sell and buy" game is new to me, but watching and rewatching your videos, I have learned so much especially when it comes to the agents. As a subscriber to your channel, I keep wishing you were here in the Sunshine State 😎! Many thanks for your time!
I’ve never bought a house with a buyer’s agent. Always called the seller’s realtor directly, don’t need my hand held. Now there’s even more reason to do that.
Right, I have bought and sold properties on my own. But was successful because it was a standard to Come in with my own agent. When I made ridiculous offers. I would let the listing agent know I did not have an agent and if they were successful in getting my offer accepted - they got both sides of commission. Guess who’s offer got accepted even though it was lower. The listing agents will encourage the acceptance of your offer. That incentive is now gone. Selling my home without an agent but still on MLS just took way longer, but still doable. (Buyer agents would skip your listing.) If buyers use agents per house for a flat fee, they wouldn’t waste so much time kooky loo-ing 👀.
@@jenniferbmendezful I have found that long term investors who are also CPAs and Real Estate attorneys like us do not need the buyer's agent as there is a lot of information out there. I wish Audra was a consultant whom I could call and hire to join my team as I have learned, even after 30 years in the business, a lot from HER! I want to watch all her videos.
Thanks for the info! Currently, I'm updating my house to include a new roof, hot water heater, paint throughout the house, new hardwood floors in two of the bedrooms, repairs to the privacy fence, and new lighting fixtures in the kitchen. Within the next two years, I intend to either list the house for sale or rent. I hope the market and economy are favorable at that time. With the market slowing, I might go the rental route.
@RG-hf4et thank you! I'm trying to get things done when there's less pressure, not being in a time crunch. So far, it's coming together beautifully. Overall, the house would be almost perfect when everything gets finished. My only two gripes are that with 1,373 square feet, it's going to be small if I start a family, and I also want to move back to my home state in the next few years.
You are very right. Where I live...there isn't a lot of new developments. You can usually tell when the market slows when the builders start to offer great incentives. Great point, btw.
Audra. I do not care one bit on buyers commission whether published or not. The information relevant to me is the bottom line. It is clear no one helps without being paid to do so. No one works for free although relatives might think differently. Yes, I understand buyers and sellers need to cooperate with the market. And we now understand we do not discuss buyer commission when the listing itself occurs. Only after an offer is received. My questions to Audra are three: 1. Should I make repairs before it is seen by the potential listing agent, example might be installing new locks on the front door or even painting it. 2. Should I hire a cleaning crew to clean the entire house plus windows before it is seen by the listing agent, or ask the listing agent to use her crews? 3. Using percentages, would 3% listing agent commission be an acceptable figure today? The house is paid off, and we live in a different state. So the house will be completely empty at time listing agreement is created. We do not cheap out on our selling costs and fees, we just want ballparks. Thanks Audra. Robert from Texas
Agreed, everyone is concerned with their bottom line, I hear you there! 1. You could do either, but I would suggest walking the home with agent and getting recommendations on what to do (or not do) before listing. A good agent will have insight on what to do to maximize your bottom line! 2. Yes, please hire a cleaning and window cleaner. If you don't know a good one then getting a recommendation from an agent is a good options as well. 3. Every area and price point is different. I would interview 3 different agents and ask what they provide for their commission. Sometimes it is worth it to pay the 3% percent if they are providing many services (staging, pre-inspection, appraisals like our team does) If you are having a hard time finding a good agent, we can have a referral program and can recommend a great agent in your area. Best of luck with listing your home! Keep me posted and let me know if you have any other questions I can help with!
Great tips as I'm considering listing soon. One item caught my attention, as a buyer in a town 5 hours away - in so many of the online photos I can't tell which rooms are which! Especially when unfurnished and unstaged. Is it a bedroom? A family room? A dining room? Why aren't the photos shown in order from the front door as you would walk through, and then photos of the yard from all sides. And please show the closets open, and the toilet lids down!
Hi Audra - Idea for a video perhaps - Can we ask the seller's agent to show us the house if that's the only one we want to look at, and then find a buyers agent after that? What would be the pros and cons of doing that.
@@ramsrnja I don’t really know. My realtor said that the new rules require the buyer to sign a buyer’s agent contract before they can even see the property. So I don’t know if the seller’s agent would even show the home to you unless you hire them as your buyer’s agent, while they also represent the seller. But that could be a problem legally if they represent the buyer and the seller at the same time. I sold a home many years ago when my agent also represented the buyer, and I had to sign an agreement allowing him to do that. These new rules are making things pretty complicated right now.
@anitah2404 Thanks for clarification. I wonder if all sellers' agents will be like that and not show the house. You have open houses to consider, too. Seems like sellers' agents would be motivated to show no matter what.
Audra - what about houses already on escrow since July 2024 are they still included? I am on selling process right now your video helped a lot. Thank you.
In Florida they are still asking for 6%, and I'm being told that 'No agent will show your home for low commission"! What is going one here is if you want to sell FSBO, with an MLS flat fee, you must state what you are going to pay the buyers agent right off. I stated that I'm lowering my home 50K, because I want to sell fast, and I was told that no agent will show my home unless I offer a decent commission. I only chose to go FSBO with MLS flat fee because of unethical realtors.....sadly. Now, because my home has been on and off many times, I will have to just about give my home away...OH how I wish you could sell in FL.
I appreciate your plain speaking. We have in the past had good selling results by suggesting a $10,000 reduction on the listing price. The new laws sound as though the broker fees will end up costing the seller more. Will the standard 6% to seller’s agent be lower?
So what do you think about contacting listing agents for showings and going to open houses and then when you want to make an offer contact a realtor or real estate lawyer to write up the offer/contract?
Are these new laws effective before a person has already signed an agent agreement? Or does a new contract need to be written and signed. As always great advice.
can I as a seller, or my listing agent, ask what the buyer has agreed to pay their buyers agent as part of the negotiation process ? Seems like the buyers agent could "double dip" on the fees ?? I have no issues participating in the buyers agent fees, but would like to know up front what they are already getting from the buyer... if that makes sense.
Sure, you can always ask. They may tell you or they may not. Remember, the buyer is signing the purchase offer so they know what the buyer's agent commission is being offered. It really difficult to hide.
The agent can't double dip, but the buyer can ask for more than they are paying their agent, and they don't have to tell you. You will see this at closing, but that's too late to do anything about it. Those agents will get a reputation over time, which is why she said it will take six months to shake out. The seller is certainly going to complain to their agent about any difference.
What if you’ve already signed a sellers agreement with an agent that included the buyers premium but the house has not gone on the market yet? Should this document be revisited? Does the realtor have to rewrite it now?
Hey Audra, I hear lumber isn’t moving so well meaning new home builders have slowed down a lot. The increase on the market is more like existing homes. Most of the existing homes I see in the market that go on contingencies come back on to the market. In my state most homes are priced way above appraisal. Then the repairs to the homes needed to get homeowners insurance are quite costly like, new roof, up grade to electrical or plumbing and or siding. I believe this is why they keep going back on the market. Nobody wants or can afford buying homes at these prices. Do you see this changing?
Yes, the market is really slowing. I haven't seen huge reductions in housing values YET. Some areas of the country are experiencing different results. If there is a lot of inventory in an area, more than likely the prices will stabilize and homeowners will have to reduce their price to attract buyers. If rates come down further, however, affordability may improve. Its all dependent on mortgage rates, inventory levels, and the unemployment rate.
One more thing, I was just reminded by a friend of mine that another issue with the listing FSBO with flat fee MLS, You are assigned a realtor, and that realtor gets all the calls. Oops what happened to the For Sale By Owner part of this deal? I smell another problem coming down the pike,,,,my neighbor also wants to sell her home and asked about what to expect....we spoke for almost two hours....not good.
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 4 years now, amassing nearly $1m in return on investments.
this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Annette Marie Holt who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you, Audra, for your honest assessment of the market. It's greatly appreciated. My condo in Oakland is on the market right now and it's been over 30 days. It's priced right, in a great area, getting lots of people walking through, is one of the higher priced condos in the area and it still hasn't sold. Am doing a price drop towards the end of the week.
Thank you for your wonderful guidance, Audra. I am about to list my home, which has an ADU/ inlaw apartment downstairs with full kitchen. The dishwasher just stopped working in that 2nd kitchen. Does it need to be replaced? Staging begins in 2 weeks. Thank you for any advice. 😊
That's hilarious! Same thing happened to me a week ago! It's possible I can fix it, but don't know if it is worth it since the appliances are probably 10 years old?
My dishwasher stopped working between the buyer's offer and closing. I found the cheapest dishwasher on the market and told the buyer that I would give that as a rebate, and if they didn't like that , I would fix it. They complained that they couldn't find that price, but still took my offer. Before listing, I would just get it fixed, it's the buyer's problem when it breaks the next time, and they may be planning on replacing it with a quieter model after closing. On my next house, I took out the dishwasher in the house I planned to sell, and swapped it with the one in the house I was buying, as I liked my dishwasher. I was lucky enough to be able to close on the new house before listing the old one.
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My husband and I have been looking for around 8 months now and already sold our old house and have moved into a month to month rental. Our area is slowing, and we are thankful that the market is moving slower as it gives us time to wait for the right house and will most likely not need to be in a bidding war once it comes on the market.
Hello there...well best of luck! You may have timed the market perfectly. You never know. Jut make sure you take your time and select your next home wisely.
As a seller who will eventually need to buy, and thus utilize a "buyer's agent", paying the seller and buyer's agent as a seller is risky. What happens when I sell my home, pay 5% to 6% (seller and buyer's agent compensation), and then I end up having to pay my own buyer's agent a percentage when I need to buy a home, because the seller of the home I decide to buy will not pay anything towards compensating my agent as a buyer? I could feasibly end up paying 6% as a seller, and then turn around and pay 2% or 3% to the agent representing me as a buyer. 8% to 9%, and on top of that closing costs? That's insane. How are we to deal with that?
You should still have enough equity to apply towards new house after the agents are paid. Their fees are negotiable. And if that doesn't work for you, you still have the option to represent yourself, which seems to be the popular decision, although I don't think it's wise, but it's an option.
Audra - what does this mean to people who have already listed their home through a listing agent? I listed with an agent in mid July and had a 3% commission going to the buyer’s agent. The housing market slowed down so I have already reduced the price considerably. Do I need to review and revise that contract with my listing agent in anticipation of the August 17 changes so that commission can now be part of the negotiations? Since the new law comes in and affects my contract? Thank you as always for your insights into the housing market and fabulous tips on selling your house.
Hi Penny, your listing agent will be sending you a modification of the listing agreement to exclude the buyer's agent commission. Its all negotiable now:). Best of luck.
@@AudraLambertthank you for such a quick response. It will be interesting to see how things will change. I feel like sellers know this is coming but buyers not so much so it will be interesting to see how things change in the realty market because of this.
Smashing the like button and wishing that I could subscribe multiple times, thank you for your savvy, solid advice in this video, Audra. 👍👍👍 See you in your next video.
Hello, Thanks for the information. Question: I have signed a seller’s agreement about 25 days ago and realtor stated that her fees are 3% for buyer to ensure we get a buyer and she’ll get 2% commission, we’ve not had a single showing request…..I’m able to cancel the contract with realtor with the new law/policy 8/17/24?
I dont see bargins in Fl , i havent sern much or any improvement in prices, i actally feel like there is less inventory unless you want to pay a lot fir a new build.
Honestly, I am not sure. However, if a commercial property is listed in MLS, there will be no commission listed. Commercial properties use other listing services. Not sure how that is going to work. Most commercial real estate negotiate their commission in the deal anyway.
Thanks, Audra! I got your explanation on the commission changesl What do you think of people waiting until after Aug. 17th (when the new commission rules apply) to sign listing agreements? Seems somebody will try gaming the new rules somehow in the transition period.
I think we all don't really know how this whole thing is going to work initially. Right now, we are already using the revised forms. They can wait...but it really isn't that much longer. The market is slowing too...meaning sellers will probably comply.
Good information. Trust in a realtor is huge. Dropping a realtor you don't trust for valid reasons is a must. It always makes me shake my head when buyers so often tend to shop at the highest end of their budget🤦 🤷
The same problem that existed before August 13 will continue to exist after. That is the real estate market colluding to manipulate sellers and/or buyers to maximize their commission. They are already conjuring up ways to manipulate the sellers to pay the buyers real estate commission by sowing the seeds in both seller and buyer. Example: the buyer's agent getting the buyer to agree to a 3% commission under the guise that the seller will pay. It is so obvious what they are trying to do
Audra. We are selling soon and have excellent bedroom furniture. We do not want to keep it. And we want to dispose of it. Should we just give it away or try to sell it cheap? Or keep it in the house as it will be vacant?
I watch you because my little sister Dawn (a realtor for 28 years) is in deep depression over a farm she is trying to sell after spending three years to tear it down and rebuild it. Had a gall bladder removed and a broken ankle with steel pins that added four months and didn’t put it on the market in time. Riding the market down, I wish I could help her more..
Much depends on what you expect the buyer's agent to do. My current house was sold by a flipper, and my agent said she spent more time on my house than typical, as the seller was difficult to deal with, as they were putting on lipstick, and not fixing what they said they would fix. I was more than happy to take money, as they were hiring the cheapest contractors, but they thought they could fix things for less. We even held money in escrow, and they had a week to fix what they didn't finish before closing.
My loved one sold s house in the northest last year below matket but house was in contract the first day of showing the first day on the matket and it closed like 6 weeks later. THAt was a good 10,000 added value. Since less days on marlet etc and psychological value
Before the new laws, the seller automatically agreed to pay the buyer agent's commission. It was published in MLS. The lawsuit was about buyers not being able to affect the buyer's agent commission and therefore wasn't able to negotiate the price of the home in their favor (because the house was priced with the commission baked into the price). Now its all negotiable.
YES! If you currently have a listing contract in place, you listing agent will be sending you an addendum stating that no buyer agent commission are included in the contract.
Nearly 56,000 home-purchase agreements were canceled during June - equal to 14.9 percent. It was the largest percentage of last-minute withdrawals by potential purchasers during any June on record. Hefty costs of insurance, property taxes and HOA fees, in addition to the cost of their mortgage payment.
I was upset when I bought my first home because the sellers took the mailbox. It was nothing fancy and I wasn't expecting that. I'll be leaving the mailbox when I move, lol.
If you had an open house and the buyer has no agent with them.. would you show the house without an agreement as a dual agent and would you charge them a flat rate for showing the house? I’m asking because I’ve heard many people on these forums say they will not work with a buyers agent and go directly to the sellers agent to see the house or go to open houses only. It would seem like the sellers agent could be wasting time and energy showing homes without any compensation especially if the showings don’t convert to an offer.
Great question! If I was holding an open house and a buyer was asking me "things" about the home I would answer the questions appropriately. As soon as the conversation would turn to "hey, would you represent me", I would immediately pull out an already printed buyer/broker agreement and have them sign it on the spot. In my situation, I always have my sellers to agree to a reduced commission if I represent both sides. I would communicate this to the buyer. Full disclosures. Some listing agents may entertain a flat fee. I already have my agreement with the seller agreed upon before even listing the home. Hope that helps.
@@AudraLambert - what about if they called you directly and wanted you to show them the house? Again no buyer agent? I could possibly see where people would bypass buyers agents and call the listing agent directly to see the house. You’re gonna be one busy lady!
Although the paperwork and process changed, My listing agent still made me put in the TX form listing agreement what I agree to pay the buyers agent. I have read in many places that this should be removed completely now but they are still showing this.
Nothing has changed. Buyers will still demand the sellers pay their broker fees. If the seller says no, then prob no deal. Sellers still screwed. Basically the same process just the means to get there are different.
I had this buyer that tried to take all my furniture, some of it was staging furniture. They even requested we rearrange the furniture before the final walk through. Don’t do it
The market should be slow right now. Rate cuts are on the horizon. I know a couple people, who are waiting until next year to buy, because they think rates will be much lower. Problem is, once those rates lower, there are going to be a lot of people jumping in and prices will go up, as people can afford more and inventory will be moving faster.
The problem is that if rates get low enough, then everyone will be buying and that will increase demand and crate that chaos with multiple offers ultimately driving the prices UP. High interest of high priced property, pick your preference….. but you can also renegotiate into a lower interest rate down the road.
Isn't an agent who refuses to show her buyer a house where the seller hasn't agreed to pay the buyer's agent violating her fiduciary agreement w/ the buyer?
it would seem so, however, as a first-time home buyer, I know most buyers are telling their agent to not even bother showing them houses not offering concessions. Im paying my agent out of pocket, but will still avoid sellers not offering it as they will likely be more difficult to work with.
I know...I hate hurting people's feelings. Just trying to help. I don't have any realtors I can recommend to you in Fort Collins at this time. I am working on finding a solution for sellers/buyers out of state. I had to put my referral business on hold at this time. Just interview at least 3 agents:). You'll find the right one!
Not to mention WW3 is closer than ever but who's concerned about that ? Yes be humble in many many ways . We just closed on a beautiful house on 7 plus acres with fruit trees on the end of a country lane in the Sierra foothills . Can't wait to get it ready as a VHR . The owner is a really nice lady that was somewhat recently widowed and she's always welcome to visit if she ever chooses to . Now I have to get to work writing out a massive list of to do stuff cause soon I take off on a new adventure in life and hope we get to share this beautiful property with others so they can have awesome family memories to make .
Who needs a buyers agent? For much less you can pay a real estate attorney to review all your documents. That way you get advice coming from an expert that knows the law. Most of the buyers agent are just useless. That’s my experience. The sellers agent will be advertising the home for sale in different medias the buyer that’s interested can see the property alone.
Hello there...like anything out there, you just got to find the right representation. Buyers agents can be invaluable if you find the right one. Unfortunately, there are a lot of not so good one out there.
The lawyer isn't going to open the house for a home inspection, or take you on a walkthrough on the day of closing. So, you still need one, but negotiate for what they will do for their commission.
This is going to bring chaos to the process. Rhetorical questions: What is a buyer's agent going to do if he/she calls the seller/sellers agent and finds out there's no commission? Is the buyer's agent going to tell their buyer that they can't represent the buyer unless the buyer pays a certain commission? Will the buyer be prevented from buying that home without paying their agent? This could lead to a lot more grief in the buying process. It's all going to have to be spelled out in the buyer's agency agreement. This may never be standardized either. Hopefully this will somehow cut down on time-wasting not-serious buyers who just look at homes as a hobby. I was hoping that buyers wold have to pay per showing, but it looks like they've devised a clever way to get sellers to pay. It'll be interesting to see if sellers still go along with this.
@@AudraLambert for me as a potential seller the tone comes across to me as discontented resentment; and have commissions always been negotiable? That's a rhetorical question because my experience is getting reprimanded by agents I've interviewed years ago for asking such questions; and I've hired agents who are respectful about the topic but still they have literally said "this is how the industry works" with full condescension. So hopefully the new laws are a humility check.
Tip I just sold my home that was well over a million dollars with NO relators. We filled out a short form with the buyer. It was easy and did not require any fees. Now I gave a fair price and did not try to screw the buyer for as much money as possible. Be fair and do it on your own.
Tall mike recommended this, sounds good
I've heard that this works good
I have sold one of my houses and bought one without a real estate agent.
@@phillipmatthews8341 I have sold with no realtor many times.
Man, the truth hurts but it is what sellers need to hear---thanks for telling the truth and offering wise advise!
Ahh..thanks. The truth hurts..and I hate being so honest...but it does serve a lot of people. Appreciate your comment.
As a seller I always understood I paid my realtor a commission & whatever he paid the buyer’s agent,
from that commission, was between them. This is just a shell game.
Well...its different now. Shell game or not:)
@@AudraLambert I don't see a difference on the selling side; its just process and paperwork is different. I pay the listing realtor 3% and I pay buying agent 3% (example, could be different percentages). My concern is when I have sold my house and now I want to buy another to live in. If the seller for my "new" house does NOT want to pay my buying agent, I am then stuck paying my buying agent. I live in NJ (expensive), so the buying agent commission could be considerable. So now I have conceivably paid 2 buyer agent commissions and 1 listing agent commission, right?
Even though my house is much too big for me and I would like to downside, between the house prices, mortgage rates, capital gains taxes, election, and this crap shoot on buying agent commission, I think I am safer to just stay where I am!
If I was a seller and the buyer wanted more than 2% to pay his realtor I may negotiate some to make deal
If buyer agent wants too much I would increase price of home?
@@janetjackson9106we should start a movement!
I live in NJ, too. I feel your pain!
This was so timely and I truly appreciate the insight Audra! Thank you!
You are so welcome. Happy to help!
I ALWAYS read the property descriptions.
ALWAYS.
I’m a female. I’m a detail person.
Trouble maker, LOL
I always read the too IF I am actually ready to buy, not just browsing around.
I’m not sure why I’m watching these videos…I’m not in the market to buy or sell a house, but these topics are interesting
Oh...good, so glad you liked it.
Hi Audra, I own my home in Florida free and clear, and want to sell, and buy elsewhere, in the state. Obviously, the "sell and buy" game is new to me, but watching and rewatching your videos, I have learned so much especially when it comes to the agents. As a subscriber to your channel, I keep wishing you were here in the Sunshine State 😎! Many thanks for your time!
Ahhh...thank you so much. Really appreciate your comment.
Me too! Kinda paralyzed by indecision at this point.
Me too -wish you were in Florida 😢😊
Mahalo! So nice to listen to your common sense approach to the housing prices and strategy for selling homes!😎
I’ve never bought a house with a buyer’s agent. Always called the seller’s realtor directly, don’t need my hand held. Now there’s even more reason to do that.
buyer's agent is the selling agent. the seller is represented by a "listing agent." confusing I know.
Right, I have bought and sold properties on my own. But was successful because it was a standard to Come in with my own agent. When I made ridiculous offers. I would let the listing agent know I did not have an agent and if they were successful in getting my offer accepted - they got both sides of commission. Guess who’s offer got accepted even though it was lower. The listing agents will encourage the acceptance of your offer. That incentive is now gone. Selling my home without an agent but still on MLS just took way longer, but still doable. (Buyer agents would skip your listing.) If buyers use agents per house for a flat fee, they wouldn’t waste so much time kooky loo-ing 👀.
@@jenniferbmendezful I have found that long term investors who are also CPAs and Real Estate attorneys like us do not need the buyer's agent as there is a lot of information out there. I wish Audra was a consultant whom I could call and hire to join my team as I have learned, even after 30 years in the business, a lot from HER! I want to watch all her videos.
The listing agent represents the seller. Not you the buyer.
Thanks for the info! Currently, I'm updating my house to include a new roof, hot water heater, paint throughout the house, new hardwood floors in two of the bedrooms, repairs to the privacy fence, and new lighting fixtures in the kitchen. Within the next two years, I intend to either list the house for sale or rent. I hope the market and economy are favorable at that time. With the market slowing, I might go the rental route.
Better to do things sooner rather than later. Plus, you get to enjoy the improvements until you sell or rent or you may stay!
@RG-hf4et thank you! I'm trying to get things done when there's less pressure, not being in a time crunch. So far, it's coming together beautifully. Overall, the house would be almost perfect when everything gets finished.
My only two gripes are that with 1,373 square feet, it's going to be small if I start a family, and I also want to move back to my home state in the next few years.
I’m selling my former home and your comments are spot on, as usual. Thanks!!
Sellers are also competing with new builds. Builders are dropping prices on lots, giving more incentives to get the buyer.
Depends on what state you talking about not in California all the new builds around my town are top price!
You are very right. Where I live...there isn't a lot of new developments. You can usually tell when the market slows when the builders start to offer great incentives. Great point, btw.
Audra. I do not care one bit on buyers commission whether published or not. The information relevant to me is the bottom line. It is clear no one helps without being paid to do so. No one works for free although relatives might think differently. Yes, I understand buyers and sellers need to cooperate with the market. And we now understand we do not discuss buyer commission when the listing itself occurs. Only after an offer is received. My questions to Audra are three: 1. Should I make repairs before it is seen by the potential listing agent, example might be installing new locks on the front door or even painting it. 2. Should I hire a cleaning crew to clean the entire house plus windows before it is seen by the listing agent, or ask the listing agent to use her crews? 3. Using percentages, would 3% listing agent commission be an acceptable figure today? The house is paid off, and we live in a different state. So the house will be completely empty at time listing agreement is created. We do not cheap out on our selling costs and fees, we just want ballparks. Thanks Audra. Robert from Texas
Agreed, everyone is concerned with their bottom line, I hear you there!
1. You could do either, but I would suggest walking the home with agent and getting recommendations on what to do (or not do) before listing. A good agent will have insight on what to do to maximize your bottom line!
2. Yes, please hire a cleaning and window cleaner. If you don't know a good one then getting a recommendation from an agent is a good options as well.
3. Every area and price point is different. I would interview 3 different agents and ask what they provide for their commission. Sometimes it is worth it to pay the 3% percent if they are providing many services (staging, pre-inspection, appraisals like our team does)
If you are having a hard time finding a good agent, we can have a referral program and can recommend a great agent in your area.
Best of luck with listing your home! Keep me posted and let me know if you have any other questions I can help with!
Great tips as I'm considering listing soon. One item caught my attention, as a buyer in a town 5 hours away - in so many of the online photos I can't tell which rooms are which! Especially when unfurnished and unstaged. Is it a bedroom? A family room? A dining room? Why aren't the photos shown in order from the front door as you would walk through, and then photos of the yard from all sides. And please show the closets open, and the toilet lids down!
Hi Audra - Idea for a video perhaps - Can we ask the seller's agent to show us the house if that's the only one we want to look at, and then find a buyers agent after that? What would be the pros and cons of doing that.
I was told that you can’t do that. You have to sign an agreement with the buyer’s agent before you go to see the home, if you’re planning to hire one.
@anitah2404 Do you think most buyers agents would turn you down just for seeing the property already?
@@ramsrnja I don’t really know. My realtor said that the new rules require the buyer to sign a buyer’s agent contract before they can even see the property. So I don’t know if the seller’s agent would even show the home to you unless you hire them as your buyer’s agent, while they also represent the seller. But that could be a problem legally if they represent the buyer and the seller at the same time. I sold a home many years ago when my agent also represented the buyer, and I had to sign an agreement allowing him to do that. These new rules are making things pretty complicated right now.
@anitah2404 Thanks for clarification. I wonder if all sellers' agents will be like that and not show the house. You have open houses to consider, too. Seems like sellers' agents would be motivated to show no matter what.
Audra - what about houses already on escrow since July 2024 are they still included? I am on selling process right now your video helped a lot. Thank you.
Excellent video as always.
Ahhh...thanks!!
The market is not slow where I’m moving to in Greenville SC!
Does the selling agent normally show seller the photos, the home description and the info that's going to be posted on MLS prior to listing it?
I do...some do not.
@@AudraLambert I will definitely be asking to see it. Thank you! Love your videos too. Very informative.
I will be asking for that information, especially since I am a RE photographer, i want to see the photos. Very important!
In Florida they are still asking for 6%, and I'm being told that 'No agent will show your home for low commission"! What is going one here is if you want to sell FSBO, with an MLS flat fee, you must state what you are going to pay the buyers agent right off. I stated that I'm lowering my home 50K, because I want to sell fast, and I was told that no agent will show my home unless I offer a decent commission. I only chose to go FSBO with MLS flat fee because of unethical realtors.....sadly. Now, because my home has been on and off many times, I will have to just about give my home away...OH how I wish you could sell in FL.
I appreciate your plain speaking. We have in the past had good selling results by suggesting a $10,000 reduction on the listing price.
The new laws sound as though the broker fees will end up costing the seller more. Will the standard 6% to seller’s agent be lower?
The new rule changes is expected to bring commission lower, we don't know by how much but time will tell.
So what do you think about contacting listing agents for showings and going to open houses and then when you want to make an offer contact a realtor or real estate lawyer to write up the offer/contract?
Are these new laws effective before a person has already signed an agent agreement? Or does a new contract need to be written and signed. As always great advice.
Your listing agent will be sending you an addendum taking out the buyer's agent commission in their original agreement. Ask them about it:)
There was a lawsuit.
can I as a seller, or my listing agent, ask what the buyer has agreed to pay their buyers agent as part of the negotiation process ? Seems like the buyers agent could "double dip" on the fees ?? I have no issues participating in the buyers agent fees, but would like to know up front what they are already getting from the buyer... if that makes sense.
good question
Sure, you can always ask. They may tell you or they may not. Remember, the buyer is signing the purchase offer so they know what the buyer's agent commission is being offered. It really difficult to hide.
The agent can't double dip, but the buyer can ask for more than they are paying their agent, and they don't have to tell you. You will see this at closing, but that's too late to do anything about it. Those agents will get a reputation over time, which is why she said it will take six months to shake out. The seller is certainly going to complain to their agent about any difference.
If the buyer is asking for a seller concession, require that the buyer-agent agreement be submitted with the offer.
What if you’ve already signed a sellers agreement with an agent that included the buyers premium but the house has not gone on the market yet? Should this document be revisited? Does the realtor have to rewrite it now?
Subscribed! Great stuff! Thank you!
Did not use a realtor when we sold our home. Just got an attorney after we found a buyer.
What kind of attorney? Any tips on what questions to go over with them? Thanks
Hey Audra, I hear lumber isn’t moving so well meaning new home builders have slowed down a lot. The increase on the market is more like existing homes. Most of the existing homes I see in the market that go on contingencies come back on to the market.
In my state most homes are priced way above appraisal. Then the repairs to the homes needed to get homeowners insurance are quite costly like, new roof, up grade to electrical or plumbing and or siding. I believe this is why they keep going back on the market. Nobody wants or can afford buying homes at these prices.
Do you see this changing?
Yes, the market is really slowing. I haven't seen huge reductions in housing values YET. Some areas of the country are experiencing different results. If there is a lot of inventory in an area, more than likely the prices will stabilize and homeowners will have to reduce their price to attract buyers. If rates come down further, however, affordability may improve. Its all dependent on mortgage rates, inventory levels, and the unemployment rate.
One more thing, I was just reminded by a friend of mine that another issue with the listing FSBO with flat fee MLS, You are assigned a realtor, and that realtor gets all the calls. Oops what happened to the For Sale By Owner part of this deal? I smell another problem coming down the pike,,,,my neighbor also wants to sell her home and asked about what to expect....we spoke for almost two hours....not good.
Thank you for all these tips, we are thinking of listing our home. These comments help.
Now?
@@guineapigzed yes, it just sold! Took one week!
Good stuff! Thx for your help. 50,000 is no joke. Wishing you the best because you truly help people
Much appreciated!
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Buy now, home prices will not go lower. If rates drop, you can refinance
The government will have no choice but to print more notes and lower interest rates
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 4 years now, amassing nearly $1m in return on investments.
this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Annette Marie Holt who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you, Audra, for your honest assessment of the market. It's greatly appreciated. My condo in Oakland is on the market right now and it's been over 30 days. It's priced right, in a great area, getting lots of people walking through, is one of the higher priced condos in the area and it still hasn't sold. Am doing a price drop towards the end of the week.
Yup..if you want to sell it.
Thank you for your wonderful guidance, Audra. I am about to list my home, which has an ADU/ inlaw apartment downstairs with full kitchen. The dishwasher just stopped working in that 2nd kitchen. Does it need to be replaced? Staging begins in 2 weeks. Thank you for any advice. 😊
Hello there, I would tell my clients that all components should be working. I think a dishwasher is pretty important..just my opinon.
@@AudraLambertThank you! I'll follow your advice and replace it.
That's hilarious! Same thing happened to me a week ago! It's possible I can fix it, but don't know if it is worth it since the appliances are probably 10 years old?
My dishwasher stopped working between the buyer's offer and closing. I found the cheapest dishwasher on the market and told the buyer that I would give that as a rebate, and if they didn't like that , I would fix it. They complained that they couldn't find that price, but still took my offer. Before listing, I would just get it fixed, it's the buyer's problem when it breaks the next time, and they may be planning on replacing it with a quieter model after closing. On my next house, I took out the dishwasher in the house I planned to sell, and swapped it with the one in the house I was buying, as I liked my dishwasher. I was lucky enough to be able to close on the new house before listing the old one.
Yes, because the buyer's home inspector will run all appliances and it will be on the list of Things That A Buyer Can Deduct For if it's not working.
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SHE’S MOSTLY ON TELEGRAMS APPS WITH HER NAME.
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This is helpful, thanks ....gotta message her right away.
My husband and I have been looking for around 8 months now and already sold our old house and have moved into a month to month rental. Our area is slowing, and we are thankful that the market is moving slower as it gives us time to wait for the right house and will most likely not need to be in a bidding war once it comes on the market.
Hello there...well best of luck! You may have timed the market perfectly. You never know. Jut make sure you take your time and select your next home wisely.
Hi Audra,
What happens with commissions if the house is already under contract? Nothing changes?
As a seller who will eventually need to buy, and thus utilize a "buyer's agent", paying the seller and buyer's agent as a seller is risky. What happens when I sell my home, pay 5% to 6% (seller and buyer's agent compensation), and then I end up having to pay my own buyer's agent a percentage when I need to buy a home, because the seller of the home I decide to buy will not pay anything towards compensating my agent as a buyer? I could feasibly end up paying 6% as a seller, and then turn around and pay 2% or 3% to the agent representing me as a buyer. 8% to 9%, and on top of that closing costs? That's insane. How are we to deal with that?
You should still have enough equity to apply towards new house after the agents are paid. Their fees are negotiable. And if that doesn't work for you, you still have the option to represent yourself, which seems to be the popular decision, although I don't think it's wise, but it's an option.
She speaks the truth 🎉 love your no nonsense talks.
Thank you...I appreciate your comment.Just trying to help people.
Audra - what does this mean to people who have already listed their home through a listing agent?
I listed with an agent in mid July and had a 3% commission going to the buyer’s agent. The housing market slowed down so I have already reduced the price considerably.
Do I need to review and revise that contract with my listing agent in anticipation of the August 17 changes so that commission can now be part of the negotiations? Since the new law comes in and affects my contract?
Thank you as always for your insights into the housing market and fabulous tips on selling your house.
Hi Penny, your listing agent will be sending you a modification of the listing agreement to exclude the buyer's agent commission. Its all negotiable now:). Best of luck.
@@AudraLambertthank you for such a quick response. It will be interesting to see how things will change. I feel like sellers know this is coming but buyers not so much so it will be interesting to see how things change in the realty market because of this.
Smashing the like button and wishing that I could subscribe multiple times, thank you for your savvy, solid advice in this video, Audra. 👍👍👍 See you in your next video.
Hello, Thanks for the information. Question: I have signed a seller’s agreement about 25 days ago and realtor stated that her fees are 3% for buyer to ensure we get a buyer and she’ll get 2% commission, we’ve not had a single showing request…..I’m able to cancel the contract with realtor with the new law/policy 8/17/24?
No! No showings means your house is overpriced
Love your videos, would you have one on what makes a good marketing plan?
Such great and needed information in very confusing / challenging times.
Thank you so much Ms. Audra !
So very welcome!
Thank you, Audra. Much needed information. Our home will be going to the market soon as we are relocating. Blessings to you. ❤️
So happy to help. You're going to do great!
Can you still not request a free tour without signing on paper through zillow and redfin?
How can you determine whether or not to invest in a new $30,000 concrete driveway if you plan to sell in 7 to 10 years?
Love your bracelets.
thank you!
I dont see bargins in Fl , i havent sern much or any improvement in prices, i actally feel like there is less inventory unless you want to pay a lot fir a new build.
Does the new commission law also apply to Commercial Property?
Honestly, I am not sure. However, if a commercial property is listed in MLS, there will be no commission listed. Commercial properties use other listing services. Not sure how that is going to work. Most commercial real estate negotiate their commission in the deal anyway.
Thanks, Audra!
I got your explanation on the commission changesl What do you think of people waiting until after Aug. 17th (when the new commission rules apply) to sign listing agreements? Seems somebody will try gaming the new rules somehow in the transition period.
I think we all don't really know how this whole thing is going to work initially. Right now, we are already using the revised forms. They can wait...but it really isn't that much longer. The market is slowing too...meaning sellers will probably comply.
Good information. Trust in a realtor is huge. Dropping a realtor you don't trust for valid reasons is a must. It always makes me shake my head when buyers so often tend to shop at the highest end of their budget🤦 🤷
Great points...all of them.
The same problem that existed before August 13 will continue to exist after. That is the real estate market colluding to manipulate sellers and/or buyers to maximize their commission. They are already conjuring up ways to manipulate the sellers to pay the buyers real estate commission by sowing the seeds in both seller and buyer. Example: the buyer's agent getting the buyer to agree to a 3% commission under the guise that the seller will pay. It is so obvious what they are trying to do
Audra. We are selling soon and have excellent bedroom furniture. We do not want to keep it. And we want to dispose of it. Should we just give it away or try to sell it cheap? Or keep it in the house as it will be vacant?
I would ask your listing agent their opinion. You may want to leave it the property if its nice. You never know, the next buyer may like it.
My 1st realtor said my condo didn't sell bc my neighbor doesn't have a garage door, when people don't go in the alley.
I watch you because my little sister Dawn (a realtor for 28 years) is in deep depression over a farm she is trying to sell after spending three years to tear it down and rebuild it. Had a gall bladder removed and a broken ankle with steel pins that added four months and didn’t put it on the market in time. Riding the market down, I wish I could help her more..
I spoke too soon, she will sell it NOW. She’s priced it right.
Butt Hurt. Great one, lol! Terrific info and my butt doesn’t hurt. Thanks super star Audra!
Ahhh..thanks so much. Yah, Butt hurt probably wasn't appropriate...but I think it drives the point home. lol.
@@AudraLambert Audra great addition to our lexicon. I plan on using it, lol. You’re a fun person.
great advice! Subscribed!
Much appreciated!
Do you think buyer's agents will settle for a fee or a percentage based commission?
Sure...its all negotiable. They may not work for cheap..but a flat rate is good..if they agree.
Much depends on what you expect the buyer's agent to do. My current house was sold by a flipper, and my agent said she spent more time on my house than typical, as the seller was difficult to deal with, as they were putting on lipstick, and not fixing what they said they would fix. I was more than happy to take money, as they were hiring the cheapest contractors, but they thought they could fix things for less. We even held money in escrow, and they had a week to fix what they didn't finish before closing.
This whole video went over my head. What is MLS?
Multiple Listing Service
most lovely services
My loved one sold s house in the northest last year below matket but house was in contract the first day of showing the first day on the matket and it closed like 6 weeks later. THAt was a good 10,000 added value. Since less days on marlet etc and psychological value
What is the rationale behind this law about the buyers agent fees?
Before the new laws, the seller automatically agreed to pay the buyer agent's commission. It was published in MLS. The lawsuit was about buyers not being able to affect the buyer's agent commission and therefore wasn't able to negotiate the price of the home in their favor (because the house was priced with the commission baked into the price). Now its all negotiable.
Does the new law affect a current selling contract?
YES! If you currently have a listing contract in place, you listing agent will be sending you an addendum stating that no buyer agent commission are included in the contract.
Nearly 56,000 home-purchase agreements were canceled during June - equal to 14.9 percent. It was the largest percentage of last-minute withdrawals by potential purchasers during any June on record. Hefty costs of insurance, property taxes and HOA fees, in addition to the cost of their mortgage payment.
So just buy from sellers agent? Probably ok.
with your own attorney review…. don’t trust the agent you did not hire.
I was upset when I bought my first home because the sellers took the mailbox. It was nothing fancy and I wasn't expecting that. I'll be leaving the mailbox when I move, lol.
I’ve never heard of anyone doing that.
@@lorraineophoff4984it was hand made in shop class/ that’s how long it had been in the family.
They were obviously emotionally attached to their mailbox! 😅
thank you for stating the date. very much needed to keep this stuff straight. love you
You got it!
If you had an open house and the buyer has no agent with them.. would you show the house without an agreement as a dual agent and would you charge them a flat rate for showing the house? I’m asking because I’ve heard many people on these forums say they will not work with a buyers agent and go directly to the sellers agent to see the house or go to open houses only. It would seem like the sellers agent could be wasting time and energy showing homes without any compensation especially if the showings don’t convert to an offer.
Great question! If I was holding an open house and a buyer was asking me "things" about the home I would answer the questions appropriately. As soon as the conversation would turn to "hey, would you represent me", I would immediately pull out an already printed buyer/broker agreement and have them sign it on the spot. In my situation, I always have my sellers to agree to a reduced commission if I represent both sides. I would communicate this to the buyer. Full disclosures. Some listing agents may entertain a flat fee. I already have my agreement with the seller agreed upon before even listing the home. Hope that helps.
@@AudraLambert - what about if they called you directly and wanted you to show them the house? Again no buyer agent? I could possibly see where people would bypass buyers agents and call the listing agent directly to see the house. You’re gonna be one busy lady!
THANKS!
Although the paperwork and process changed, My listing agent still made me put in the TX form listing agreement what I agree to pay the buyers agent. I have read in many places that this should be removed completely now but they are still showing this.
Excellent content,thank you!!👏👏👏
You are very welcome!
Great content Audra! 💯
Ahhh...thanks!!
Nothing has changed. Buyers will still demand the sellers pay their broker fees. If the seller says no, then prob no deal. Sellers still screwed. Basically the same process just the means to get there are different.
I had this buyer that tried to take all my furniture, some of it was staging furniture. They even requested we rearrange the furniture before the final walk through. Don’t do it
Thanks for sharing...cracking up about rearranging furniture...just nuts!!
The market should be slow right now. Rate cuts are on the horizon. I know a couple people, who are waiting until next year to buy, because they think rates will be much lower. Problem is, once those rates lower, there are going to be a lot of people jumping in and prices will go up, as people can afford more and inventory will be moving faster.
Very good point. Can't disagree with that line of thinking.
which is why I have decided to wait until next year to sell!
@@ClearThinking101what is that exactly?
Actually I don’t understand. More reading is needed.
The problem is that if rates get low enough, then everyone will be buying and that will increase demand and crate that chaos with multiple offers ultimately driving the prices UP. High interest of high priced property, pick your preference….. but you can also renegotiate into a lower interest rate down the road.
Isn't an agent who refuses to show her buyer a house where the seller hasn't agreed to pay the buyer's agent violating her fiduciary agreement w/ the buyer?
it would seem so, however, as a first-time home buyer, I know most buyers are telling their agent to not even bother showing them houses not offering concessions. Im paying my agent out of pocket, but will still avoid sellers not offering it as they will likely be more difficult to work with.
Love your video!
I called my realtor and said in that same voice.....we need to cha get the order of the photos. Lol
LOL...if it makes you feel better:)
Thank you about the view feature, could you get hotels to agree😂🤣
Laughing...very true.
Thanks in advance Audra.
You are so very welcome. Happy to help.
Thanks for this!
You are so very welcome.
Audra, I just subscribed, help you meet your goal 🎉 Recommendation for agent in Orlando FL - Residential/ Commercial
Thanks Lou, I really appreciate it!
For some reason it was August 1 in Arizona
The truth hurts. Can you send me the list of some great realtors in my area- Fort Collins, Colorado. Thanks. I love your videos
I know...I hate hurting people's feelings. Just trying to help. I don't have any realtors I can recommend to you in Fort Collins at this time. I am working on finding a solution for sellers/buyers out of state. I had to put my referral business on hold at this time. Just interview at least 3 agents:). You'll find the right one!
Thanks for your quick reply. I have my questions ready thanks to you. Thanks so much for these informative videos.Have a blessed day.
Not to mention WW3 is closer than ever but who's concerned about that ? Yes be humble in many many ways . We just closed on a beautiful house on 7 plus acres with fruit trees on the end of a country lane in the Sierra foothills . Can't wait to get it ready as a VHR . The owner is a really nice lady that was somewhat recently widowed and she's always welcome to visit if she ever chooses to . Now I have to get to work writing out a massive list of to do stuff cause soon I take off on a new adventure in life and hope we get to share this beautiful property with others so they can have awesome family memories to make .
Ahhh...I love that!
the agent we interviewed said she will not work for less than 3% and a buyer’s agent won’t show a house if they aren’t getting 3%.
❤😅Sellers, Just ask your agent, every time, there is a showing! Request what the buyers agent has recieved for compensation.😊
That is not what our Texas listing agreements say..
Who needs a buyers agent?
For much less you can pay a real estate attorney to review all your documents. That way you get advice coming from an expert that knows the law. Most of the buyers agent are just useless. That’s my experience.
The sellers agent will be advertising the home for sale in different medias the buyer that’s interested can see the property alone.
Hello there...like anything out there, you just got to find the right representation. Buyers agents can be invaluable if you find the right one. Unfortunately, there are a lot of not so good one out there.
The lawyer isn't going to open the house for a home inspection, or take you on a walkthrough on the day of closing. So, you still need one, but negotiate for what they will do for their commission.
I am listening to my appraiser 😅 not neighbors.
Good job!!
This is going to bring chaos to the process. Rhetorical questions: What is a buyer's agent going to do if he/she calls the seller/sellers agent and finds out there's no commission? Is the buyer's agent going to tell their buyer that they can't represent the buyer unless the buyer pays a certain commission? Will the buyer be prevented from buying that home without paying their agent?
This could lead to a lot more grief in the buying process. It's all going to have to be spelled out in the buyer's agency agreement. This may never be standardized either. Hopefully this will somehow cut down on time-wasting not-serious buyers who just look at homes as a hobby. I was hoping that buyers wold have to pay per showing, but it looks like they've devised a clever way to get sellers to pay. It'll be interesting to see if sellers still go along with this.
9:43, butt-hurt. Thanks, you made my day
Laughing...so glad I could add to your day:)
The black fireplace looks evil.
HOW DO I GET MY GOOD FAITH MONEY BACK IF I CHANGE MY MIND ON THE PURCHASE OF THE HOUSE?RALPH S
Butt hurt LOL! YOU'RE THE BEST AUDRA! 😂
IF I WANT TO GET MY GOOD FAITH DOWN PAYMENT BACK ?RALPH FLORIDA PSL
You've made good money, now it's time to go bankrupt.
Sellers: He who panics first, Panics best
I like that!!
Foresight and prudence doesn't equal panic.
the published commission portion just tooooooo long toooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo long
Yahh...I think you're right. I'll get right to it in the next video.
@@AudraLambert for me as a potential seller the tone comes across to me as discontented resentment; and have commissions always been negotiable? That's a rhetorical question because my experience is getting reprimanded by agents I've interviewed years ago for asking such questions; and I've hired agents who are respectful about the topic but still they have literally said "this is how the industry works" with full condescension. So hopefully the new laws are a humility check.
Nervous laugh...