One thought- as a listing agent, I can still offer compensation to a buyers agent, even if it turns out, the buyers are paying for their own agent. So other agents can have the conversation with their buyers “you will pay me X, but if we can find a house where the compensation is offered by the seller, then you won’t have to” guess which houses the buyer may buy first….. unfair competition???? The best thing I liked about this conversation, and I thank you for having it, is, nobody else is having it, and we need to be having it!! Thinking through how to be strategic is important!
Great conversation! Pertaining to having agents stop offering buyer broker comp, then that means none of the agents' listings can be on the MLS as in the MLS (CRMLS MATRIX/So Cal) the fields for buyer broker compensation are only open to "numbers". So no way to list by simply stating commission is negotiable until the MLS changes their input fields or adds one that states the commission is "Negotiable"...???
Fantastic Interview. A couple questions. Why would the MLS's have to be worried? All they do is communicate the compensating offer. What about Fair Housing? The Home Buyer can't afford a Buyer's agent, so they get taken to the cleaners from a listing agent? In a world where we are told we are all equal...Is Fair Housing going to be ok with that?
@@sherryannelee Probably. My local Board of Realtors has about 4000 members. If that drops to 800, either the $35/month fee is going to have to rise to $175/month or we'll have to close up shop. And I know people think Zillow is gonna step in, but that's nuts.
Great interview. I only had two observations..1) Why does buyer compensation have to stop today? Why can't it just be optional and let the sellers decide? It might even be better because buyers may actually steer themselves to listings paying a buyer agent commission so they don't have to pay the difference (you may even see higher overall commissions how is that for irony). 2) I have a real problem with the damage calculation as you can't prove any damage at all. You can't say whether a seller sold for higher or lower because the listing agent paid a buyer's agent commission. Way too many variables based on the property, the market at the time, the agents involved, the clients themselves, etc. I think its naive just to go 3% for every home sold and add it up. Also, shouldn't you subtract the 3% these sellers didn't have to pay when they bought the home? You can't benefit on one side and then cry foul on the other. The one part I do agree with is there are too many crappy agents and pay should vary with the agent. So make the buyer co-op commission optional and then charge you buyers based on your level of experience (assuming the listing agent is not covering it). I am afraid however, like everything in this case, the devil is in the details and fraught with unintended consequences that we can't even guess at.
I totally agree with your statements and questions concerning the lawsuit and compensation. The devil is in the details and the details clearly show illegal practices by buyer's agents, as well as training and education directing agents to do this...by their brokerages. Things do need to change, and hopefully this will prune the bad branches our of our industry so we can continue to deliver exceptional services to buyers and sellers alike.
@@garrycreath366 One can argue that the KW training manuals are a smoking gun except they are just some 180,000 agents out of 1.6 million and you cannot say how many even followed those guidelines. This definitely needs to change but you cannot destroy and entire industry on the suspicion of steering by a few. How do you even prove how many steered their clients? Like you said there are always a few bad apples and are we really willing to throw the baby out with the bath water?
@@ChristopherDean-z4l Christopher, yes, one can argue that the Keller Williams’ training manuals are a smoking gun, and yet who knows how many of the real estate agents at Keller Williams actually used that training? However, I don’t think that is the question here. I think the fact that a corporation as big as Keller Williams, has training for their real estate agents that clearly educates them to break the law is a serious problem for the industry. Now, how do you determine if a buyer was actually harmed by this practice? I think this is a much more difficult thing to discuss and determine, and as we sideline quarterback this conversation and lawsuit, we can debate this all day long… But, who knows what will actually happen when the Department of Justice and the defendants either come to a resolution or there is a trial. I do believe that there are a lot of shady and illegal practices committed in the real estate industry, but destroying an entire industry over some bad apples is not a solid resolution, nor do I think that is going to happen with this ultimate decision. I appreciate your comments and thoughtfulness on this situation, and I look forward to more of this as we get closer to D-day.
How many of the sellers in the class action lawsuit after they sold their home, then became buyers? So if as sellers they only paid the listing agent commission, but then had to pay for a buyer's agent to purchase their next home, how different is that from what is currently being done? Since an agent who charges 6% for listing has the chance to find a buyer themselves, and collect the entire 6% commission, would agents discount their service if this changes? Are you not worth 6% for listing a property?
Read the entitlement to 6% fee in this response. True competition means that commission is negotiable and seller can shop for the best value. And no, in this new market , you arent worth 6%. Days on market is so low, inventory is low, and good homes have one showing and then purchase and sales is signed in less than 5 days . Is that worth 6%. Real estate is up 50 % in 5 years. Has consumers salaries gone up 50% in 5 years? No. and realtors expect a 50% pay raise in 5 years? Thats greed at its worst. a buyers agent doesnt represent a buyer as there is no contract and and no financial transaction . A buyers agent only represents himself in this transaction. Imagine a buyers agent walking into a open house with a buyer.....then wants 3 % for that hours work. The sellers agent overseas the P and S agreement, the mortgage company and title company does so much more work for 4k. and this buyers agent wants maybe 15k? Ok , consumers are much smarter now. See these agents charge 6% for all these years and be entitled, and then imagine how buyers compete so hard to be a successful buyer, and the agents dont seem to work hard and compete honestly. There is alot of agents are now taking 2% because its better than 0% of a listing they didnt get. And these agents are avoiding MLS and using other routes . They will be the winners, and those agents who are now like dinosaurs clinging to the past and facing an extinction level event.
Listing brokers can cease to offer any part of their commission to a buyer's broker, thereby forcing the buyer's broker to seek compensation from their own clients.
In our MLS, if you are not offering compensation to a buyer's agent then you can't put the listing in the MLS...so I don't understand how a brokerage can do that? @@garrycreath366
Exactly- and in effect then limit the number of buyers that are exposed to a sellers property to only those that the listing agent either has access to through their internal brokerage, their relationships, or randomly the buyers sees online (National mls?). That’s gonna really help Sellers get top dollar….. not. The whole reason the MLS was created, was to help agents who met with Sellers, negotiated their compensation, and then said “I need help selling this listing, let me see if there’s any agents out there that might have a buyer, and if they do, I’ll pay them X percent compensation”. Ugh.
What you’re explaining is exactly the problem. If seller’s don’t offer buyer’s agent large commissions, nobody sees the property. But Buyers agents are paid by seller based on sales price and therefore a conflict of interest emerges because they have zero incentive to lower the purchase price. Even though they supposedly represent the buyer and that is in the buyer’s best interest
Please explain this: In Az, the seller pays the listing broker a commission and the listing broker pays the selling broker and issues a 1099 for the commission. Wouldn’t that invalidate the plaintiff’s complaint?
The industry does need to change in many ways, be it compensation, or representation. I have followed the law suits for a while now, and have been very concerned. I believe and agree NAR is doing a big disservice to its members/all boards by not giving informative instruction on preparation. You may not want to scare the masses, but the truth is real, especially if we loose. Appeal action could take years, however, there is still fallout from a judgement summary. The public will understand and demand change.
"The Public will understand and demand change" I hate to say it but this comment make it seem as though you knew you guys were doing something wrong, just saying.
As an individual agent.. is Rob's recommendation to continue to offer buyer agent commissions until our broker tells us not to? In regard to personal liability.. brokerages ceasing to offer buyer agent commissions is mentioned 30:58 min in.
Literally I've been saying this since it was filed. The whole business is about to change drastically! I've also said someone has wanted this for years. Wall st has more money than main street. How to you beat a competition? You break them up. There will be a few sites to post homes for sale and will become like a national mls. It will end up being more like commercial real estate vs what we know now.
I love the dirty laundry of our industry being aired! It’s about time! I’ve heard discussions of agents openly admitting steering and not being smart enough to admit they are unethical. We had a Realtor Day at the Austin/Texas capital and NAR is just trying to continue to wave their flag of authority ✍️ of agents. Being there made me sick 🤢 seeing realtors being blindly guided on issues they knew nothing about and being there for the ride!! Good Realtor need to wake TFU! The good ones are awake but the bad ones will continue to follow blindly and be derailed! So by being your own individual broker we stop offering compensation? So I’m confused if we are now salary! 🤣 That isn’t happening!
I will be surprised if a class action lawsuit is not filed for realtors steering clients to in-house lenders. Specifically for realtors that are getting a cut of the income from the mortgage. This will be a big problem for inhouse lenders and realty brokerages.
This is about steering, and everyone know that 99.9% of realtors are guilty. I have worked in the industry for 23 years and can tell you Realtors have gotten away with things where others have had to change how they do business.
"For Sale By Owner" Ive never been an advocate for paying the buyer's agent commission...I hire a selling agent then i pay the seller agents comission. The buyer contracts with a buyers agent then the buyer pays her/his agent..
My buddy who is a FL Broker said that in the last two weeks he is seeing Law Firms running ads to solicit homebuyers and sellers to sue individual agents and their E&O insurance
As.a Local Association President, I will tell you we Absolutely educate and share this information to our Members!!! Do they listen and understand the weaponization of the DOJ and NAR, that's not our fault. We are doing the best we can to provide the information. Thanks for your time and Efforts here. YOU should run for a position on your LOCAL BOARD 😉. We all need Agents & Brokers like you 3!!!!
I'm a new agent and have followed the lawsuit. I have a subscription to Inman so I believe that I receive good information on the industry. Its an individual choice as to how much each agent is following this.
If the local MLS shuts down, then Zillow and others no longer obtain houses for sale to put on the web site. They really don't have to shut down anyway. If I can't advertise for a buyer's agent to find a buyer for my listing, then why do I need the MLS?
As someone who used to have a real estate license and never needs a realtor to sell my land or houses I am 100% for the NAR going bankrupt and the whole system of commissions being turned on it’s head. I would like to see buyers pay for their own agent if they choose, and the seller pay for a agent if they choose and no money between the two can ever be mingled. Realtors are non value added and only cause the sell of property to be inflated. In todays world. Nobody needs a realtor, or mortgage broker. They are non value added and just cost you money.
In North Carolina, all "Agents" are brokers. All Brokerages are Brokers in Charge, and everyone is responsible for the Corrupt Organization portion that E&O does not cover.
My Zillow contract was to renew in the first week in October and I did not renew. When I explained to my Zillow Rep that it was due to the lawsuit, the Zillow rep new nothing about this lawsuit. This conversation took place on Sept 27th. I was amazed
We noticed there are a lot of people who should be paying attention to this who are not. We don't want to advocate a doom and gloom perspective, but we believe we should prepare for the possible outcomes that we can actually prepare for. Most of the preparation is doing stuff we should already be doing (buyers rep agreements, showing value, focus on listings, etc.)
Zillow's entire reason for being is to suck as much money as possible out of agents' pockets, then put them out of business. It's always been absolute foolishness to pay them, and I'm glad more and more agents are stepping away from their scam.
I'd LOVE to bill like lawyers do, in 1/10 hour increments. Have a retainer up front, nonrefundable. Then every email, phone call, text message, showing setup, CMA, piece of paperwork etc. I do is billed against that retainer. Ev-er-y-thang. Due at the time of service. Wanna see 4 houses Saturday afternoon, Mr. Buyer? Sure thing! When we meet at the first house, there's gonna be a PayPal invoice in your inbox that covers my time to set up the showings, mileage, and time, plus my decades of experience. That'll be $200 please. Up front.
I’m preparing to take the test to get licensed and hearing all of this come about. I can’t understand how a person can get sued for getting paid for their services. If that’s the case, I can sue everyone I paid for anything just because I don’t like paying for services 🤦🏼♀️
I don't think you will get a higher level of service from those who are already violating the ethics rules. You are going to have people screaming to sellers they need to pay because they can't pivot. It needs to go back to 1983 and the listings are the winner. We need to throw this idea of dual agency out the door - because when you go buy a car, the sales agent works for the car dealer. Tells the buyer about the property, and then the buyer gets their crap together to purchase the property. Then it goes to the title clerk.
@sjones9271 I’m wondering the same thing. Garry and Chris, please help us envision what that looks like if all brokerages and MLSs stop offering compensation altogether.
If a listing brokerage stops offering to compensate the buyer's broker for their work, the buyer's broker will be forced to seek compensation from their buyer. Also, MLS's don't offer compensation...they simply communicate the listing broker's compensation offering to buyer's brokers.
Two ways to strategize: 1:) have the SELLER agree to compensate the buyer agent in the listing agreement (not a broker to broker agreement) 2:) Buy and read "Buyer Brokerage" by James Warkenton and apply his philosophies.
Complete Chaos. We had a great system for a long time that afforded representation to both parties for fair compensation, and brought more buyers into the market, which raises the sellers sales prices.
Lol. I love how Rob (who is correct) has to explain this. Agents and Brokers have been committing felonies for years. Also, your E&O insurance will not cover this-either explicitly or by implication-because it is an intentional, criminal act.
Agents will not shrink as far as licensing. They will leave the NAR, who if the brokerage requires membership, will lose the brokers to their own, even if it is sole proprietorships.
Honestly this is the first I’ve heard of this also. I wonder if that is why our broker literally doubled their fees in one year- many have left Not really anything to justify the increase either
Now... We will see Complete Chaos. We had a great system for a long time that afforded representation to both parties for fair compensation, and brought more buyers into the market, which raises the sellers sales prices. Competition has driven the sales price up for sellers by more than 3% for decades.
It's not the concept of a trade organization that is on trial. It's how buyers' representation was brought to the forefront of the industry and how the trade organization supported it. There were many people in the real estate industry who didn't support the idea of the seller having to pay for the buyer's representation, which in a nutshell - makes no sense. So everyone tries to justify it and the truth is, its going to be a tough hill to defend.
I'm a listing agent. But,, without buyers agents its the wild west and I'm liable for everything. Happy to share commission with a buyers agent who will ethically work with a buyer and represent them.
I understand your position and agree that cooperation is in the best interest of all parties. But the fact remains that buyer brokerage wasn't founded based on helping the selling consumer. It was founded based on control and profit by the large brokerages. That is why the issue was never addressed on behalf of the seller, it wasn't designed for them to begin with or we would have dealt with what we all knew was a poor policy. @@SoldOnElPaso
No insurer will cover agents payment for steering, agents will need to carry their own bond to their broker because insurance won't cover when a crime is committed. A bond will like a Personal Representative of an estate getting bonded against the risk of breach of duty or the like.
“Is realty a cartle?” “I don’t know what a cartel is, but no” “Realty is a meeting of the minds, so it is a conspiracy” Bro…stop talking😂😂😂 But really he was spot on with early analysis
In our first video on this topic, Garry mentioned that buyers usually compensate their agents directly in commercial real estate. If that's the case, then this lawsuit may not have an affect commercial folks.
What a sensationalist. I understand this to be a serious matter but as per this Rob former attorney guy sounds like he wants it to happen so he can create a new national mls! I have more confidence in the real estate industry that some thing will work out in our favor. I don’t think it’s funny either.
![[UNCUT]“ฅนตื่นธรรม”ปะทะ“หมอปลา-ปู่มหามุนี-อั๋นโอกิ”สะเทือนกระทรวงเวทมนตร์ Iคนดังนั่งเคลียร์I10 ตค.67](http://i.ytimg.com/vi/peMD_SAkwNc/mqdefault.jpg)
One thought- as a listing agent, I can still offer compensation to a buyers agent, even if it turns out, the buyers are paying for their own agent. So other agents can have the conversation with their buyers “you will pay me X, but if we can find a house where the compensation is offered by the seller, then you won’t have to” guess which houses the buyer may buy first….. unfair competition???? The best thing I liked about this conversation, and I thank you for having it, is, nobody else is having it, and we need to be having it!! Thinking through how to be strategic is important!
I agree the conversation is worth having to learn how this can ricochet.
Thanks for having me on guys! Hope to have you on mine someday soon!
What a delight to host you! Any feedback for the questions posed here?
Great conversation! Pertaining to having agents stop offering buyer broker comp, then that means none of the agents' listings can be on the MLS as in the MLS (CRMLS MATRIX/So Cal) the fields for buyer broker compensation are only open to "numbers". So no way to list by simply stating commission is negotiable until the MLS changes their input fields or adds one that states the commission is "Negotiable"...???
Fantastic Interview. A couple questions. Why would the MLS's have to be worried? All they do is communicate the compensating offer. What about Fair Housing? The Home Buyer can't afford a Buyer's agent, so they get taken to the cleaners from a listing agent? In a world where we are told we are all equal...Is Fair Housing going to be ok with that?
Sounds like a perfect opportunity for another grant program :(
if membership drops by 80%, that would hurt the MLS
@@sherryannelee Probably. My local Board of Realtors has about 4000 members. If that drops to 800, either the $35/month fee is going to have to rise to $175/month or we'll have to close up shop. And I know people think Zillow is gonna step in, but that's nuts.
Great interview. I only had two observations..1) Why does buyer compensation have to stop today? Why can't it just be optional and let the sellers decide? It might even be better because buyers may actually steer themselves to listings paying a buyer agent commission so they don't have to pay the difference (you may even see higher overall commissions how is that for irony). 2) I have a real problem with the damage calculation as you can't prove any damage at all. You can't say whether a seller sold for higher or lower because the listing agent paid a buyer's agent commission. Way too many variables based on the property, the market at the time, the agents involved, the clients themselves, etc. I think its naive just to go 3% for every home sold and add it up. Also, shouldn't you subtract the 3% these sellers didn't have to pay when they bought the home? You can't benefit on one side and then cry foul on the other. The one part I do agree with is there are too many crappy agents and pay should vary with the agent. So make the buyer co-op commission optional and then charge you buyers based on your level of experience (assuming the listing agent is not covering it). I am afraid however, like everything in this case, the devil is in the details and fraught with unintended consequences that we can't even guess at.
I totally agree with your statements and questions concerning the lawsuit and compensation. The devil is in the details and the details clearly show illegal practices by buyer's agents, as well as training and education directing agents to do this...by their brokerages. Things do need to change, and hopefully this will prune the bad branches our of our industry so we can continue to deliver exceptional services to buyers and sellers alike.
@@garrycreath366 One can argue that the KW training manuals are a smoking gun except they are just some 180,000 agents out of 1.6 million and you cannot say how many even followed those guidelines. This definitely needs to change but you cannot destroy and entire industry on the suspicion of steering by a few. How do you even prove how many steered their clients? Like you said there are always a few bad apples and are we really willing to throw the baby out with the bath water?
@@ChristopherDean-z4l Christopher, yes, one can argue that the Keller Williams’ training manuals are a smoking gun, and yet who knows how many of the real estate agents at Keller Williams actually used that training? However, I don’t think that is the question here. I think the fact that a corporation as big as Keller Williams, has training for their real estate agents that clearly educates them to break the law is a serious problem for the industry. Now, how do you determine if a buyer was actually harmed by this practice? I think this is a much more difficult thing to discuss and determine, and as we sideline quarterback this conversation and lawsuit, we can debate this all day long… But, who knows what will actually happen when the Department of Justice and the defendants either come to a resolution or there is a trial. I do believe that there are a lot of shady and illegal practices committed in the real estate industry, but destroying an entire industry over some bad apples is not a solid resolution, nor do I think that is going to happen with this ultimate decision.
I appreciate your comments and thoughtfulness on this situation, and I look forward to more of this as we get closer to D-day.
@@garrycreath366 no problem. As Chris knows I am full of opinions lol. Thanks for the reply. I hope you are correct for all our sakes.
How many of the sellers in the class action lawsuit after they sold their home, then became buyers? So if as sellers they only paid the listing agent commission, but then had to pay for a buyer's agent to purchase their next home, how different is that from what is currently being done?
Since an agent who charges 6% for listing has the chance to find a buyer themselves, and collect the entire 6% commission, would agents discount their service if this changes? Are you not worth 6% for listing a property?
Read the entitlement to 6% fee in this response. True competition means that commission is negotiable and seller can shop for the best value. And no, in this new market , you arent worth 6%. Days on market is so low, inventory is low, and good homes have one showing and then purchase and sales is signed in less than 5 days . Is that worth 6%. Real estate is up 50 % in 5 years. Has consumers salaries gone up 50% in 5 years? No. and realtors expect a 50% pay raise in 5 years? Thats greed at its worst. a buyers agent doesnt represent a buyer as there is no contract and and no financial transaction . A buyers agent only represents himself in this transaction. Imagine a buyers agent walking into a open house with a buyer.....then wants 3 % for that hours work. The sellers agent overseas the P and S agreement, the mortgage company and title company does so much more work for 4k. and this buyers agent wants maybe 15k? Ok , consumers are much smarter now. See these agents charge 6% for all these years and be entitled, and then imagine how buyers compete so hard to be a successful buyer, and the agents dont seem to work hard and compete honestly. There is alot of agents are now taking 2% because its better than 0% of a listing they didnt get. And these agents are avoiding MLS and using other routes . They will be the winners, and those agents who are now like dinosaurs clinging to the past and facing an extinction level event.
Fantastic conversation! You guys are the best! Could you discuss what the potential fallout the respective MLSs will have?
How do brokers stop offering compensation? I don’t understand
Listing brokers can cease to offer any part of their commission to a buyer's broker, thereby forcing the buyer's broker to seek compensation from their own clients.
In our MLS, if you are not offering compensation to a buyer's agent then you can't put the listing in the MLS...so I don't understand how a brokerage can do that? @@garrycreath366
That's the way it was in the 1920s and 30s before the mls was created. They want us to go back 100 years to the old system. Brilliant plan.
Exactly- and in effect then limit the number of buyers that are exposed to a sellers property to only those that the listing agent either has access to through their internal brokerage, their relationships, or randomly the buyers sees online (National mls?). That’s gonna really help Sellers get top dollar….. not. The whole reason the MLS was created, was to help agents who met with Sellers, negotiated their compensation, and then said “I need help selling this listing, let me see if there’s any agents out there that might have a buyer, and if they do, I’ll pay them X percent compensation”. Ugh.
What you’re explaining is exactly the problem. If seller’s don’t offer buyer’s agent large commissions, nobody sees the property. But Buyers agents are paid by seller based on sales price and therefore a conflict of interest emerges because they have zero incentive to lower the purchase price. Even though they supposedly represent the buyer and that is in the buyer’s best interest
Please explain this: In Az, the seller pays the listing broker a commission and the listing broker pays the selling broker and issues a 1099 for the commission. Wouldn’t that invalidate the plaintiff’s complaint?
The industry does need to change in many ways, be it compensation, or representation. I have followed the law suits for a while now, and have been very concerned. I believe and agree NAR is doing a big disservice to its members/all boards by not giving informative instruction on preparation. You may not want to scare the masses, but the truth is real, especially if we loose. Appeal action could take years, however, there is still fallout from a judgement summary. The public will understand and demand change.
"The Public will understand and demand change" I hate to say it but this comment make it seem as though you knew you guys were doing something wrong, just saying.
As an individual agent.. is Rob's recommendation to continue to offer buyer agent commissions until our broker tells us not to? In regard to personal liability.. brokerages ceasing to offer buyer agent commissions is mentioned 30:58 min in.
Literally I've been saying this since it was filed. The whole business is about to change drastically! I've also said someone has wanted this for years. Wall st has more money than main street. How to you beat a competition? You break them up. There will be a few sites to post homes for sale and will become like a national mls. It will end up being more like commercial real estate vs what we know now.
Awesome information.... I think you are exactly right about all of this
Thank you!
I love the dirty laundry of our industry being aired! It’s about time! I’ve heard discussions of agents openly admitting steering and not being smart enough to admit they are unethical. We had a Realtor Day at the Austin/Texas capital and NAR is just trying to continue to wave their flag of authority ✍️ of agents. Being there made me sick 🤢 seeing realtors being blindly guided on issues they knew nothing about and being there for the ride!! Good Realtor need to wake TFU! The good ones are awake but the bad ones will continue to follow blindly and be derailed! So by being your own individual broker we stop offering compensation? So I’m confused if we are now salary! 🤣 That isn’t happening!
Is it steering because not of the neighborhood but due to the compensation being offered?
I didn't know any of this. Very very imformative.
Love this segment. Lot's of needed knowledge
I will be surprised if a class action lawsuit is not filed for realtors steering clients to in-house lenders. Specifically for realtors that are getting a cut of the income from the mortgage. This will be a big problem for inhouse lenders and realty brokerages.
This is about steering, and everyone know that 99.9% of realtors are guilty. I have worked in the industry for 23 years and can tell you Realtors have gotten away with things where others have had to change how they do business.
Sure sounds like a RESPA violation to me.
"For Sale By Owner" Ive never been an advocate for paying the buyer's agent commission...I hire a selling agent then i pay the seller agents comission. The buyer contracts with a buyers agent then the buyer pays her/his agent..
Great conversation
Guess I'll raise my commission a perecent or two to cover my attorney fees for when I get a lawsuit filed against me. This whole thing is STUPID.
Good luck with that one.
My buddy who is a FL Broker said that in the last two weeks he is seeing Law Firms running ads to solicit homebuyers and sellers to sue individual agents and their E&O insurance
As.a Local Association President, I will tell you we Absolutely educate and share this information to our Members!!! Do they listen and understand the weaponization of the DOJ and NAR, that's not our fault. We are doing the best we can to provide the information.
Thanks for your time and Efforts here. YOU should run for a position on your LOCAL BOARD 😉. We all need Agents & Brokers like you 3!!!!
I'm a new agent and have followed the lawsuit. I have a subscription to Inman so I believe that I receive good information on the industry. Its an individual choice as to how much each agent is following this.
Are Buyers agent expected to work for 2-3 months with a buyer and not be allowed to be compensated?
Buyers agents can adapt and explore different avenues to get compensated, be it flat fee, per showing etc…
Thank you. Great advice
Thanks for watching and commenting!
If the local MLS shuts down, then Zillow and others no longer obtain houses for sale to put on the web site. They really don't have to shut down anyway. If I can't advertise for a buyer's agent to find a buyer for my listing, then why do I need the MLS?
Zillow wants to step in as the mls system to list properties on instead.
As someone who used to have a real estate license and never needs a realtor to sell my land or houses I am 100% for the NAR going bankrupt and the whole system of commissions being turned on it’s head. I would like to see buyers pay for their own agent if they choose, and the seller pay for a agent if they choose and no money between the two can ever be mingled. Realtors are non value added and only cause the sell of property to be inflated. In todays world. Nobody needs a realtor, or mortgage broker. They are non value added and just cost you money.
Aged like fine wine!
Yes
The banks know the buyesrs’ agent
Is that valid?
great info thank you
Great discussion. Thank you for sharing.
In North Carolina, all "Agents" are brokers. All Brokerages are Brokers in Charge, and everyone is responsible for the Corrupt Organization portion that E&O does not cover.
My Zillow contract was to renew in the first week in October and I did not renew. When I explained to my Zillow Rep that it was due to the lawsuit, the Zillow rep new nothing about this lawsuit. This conversation took place on Sept 27th. I was amazed
We noticed there are a lot of people who should be paying attention to this who are not.
We don't want to advocate a doom and gloom perspective, but we believe we should prepare for the possible outcomes that we can actually prepare for.
Most of the preparation is doing stuff we should already be doing (buyers rep agreements, showing value, focus on listings, etc.)
Zillow's entire reason for being is to suck as much money as possible out of agents' pockets, then put them out of business. It's always been absolute foolishness to pay them, and I'm glad more and more agents are stepping away from their scam.
I'd LOVE to bill like lawyers do, in 1/10 hour increments. Have a retainer up front, nonrefundable. Then every email, phone call, text message, showing setup, CMA, piece of paperwork etc. I do is billed against that retainer. Ev-er-y-thang. Due at the time of service. Wanna see 4 houses Saturday afternoon, Mr. Buyer? Sure thing! When we meet at the first house, there's gonna be a PayPal invoice in your inbox that covers my time to set up the showings, mileage, and time, plus my decades of experience. That'll be $200 please. Up front.
I’m preparing to take the test to get licensed and hearing all of this come about. I can’t understand how a person can get sued for getting paid for their services. If that’s the case, I can sue everyone I paid for anything just because I don’t like paying for services 🤦🏼♀️
I don't think you will get a higher level of service from those who are already violating the ethics rules. You are going to have people screaming to sellers they need to pay because they can't pivot. It needs to go back to 1983 and the listings are the winner. We need to throw this idea of dual agency out the door - because when you go buy a car, the sales agent works for the car dealer. Tells the buyer about the property, and then the buyer gets their crap together to purchase the property. Then it goes to the title clerk.
“Steering” does not mean directing people to properties that offer better compensation
Steering means exactly what the jury says (or in this case SAID) it means.
@sjones9271 I’m wondering the same thing. Garry and Chris, please help us envision what that looks like if all brokerages and MLSs stop offering compensation altogether.
If a listing brokerage stops offering to compensate the buyer's broker for their work, the buyer's broker will be forced to seek compensation from their buyer. Also, MLS's don't offer compensation...they simply communicate the listing broker's compensation offering to buyer's brokers.
Two ways to strategize: 1:) have the SELLER agree to compensate the buyer agent in the listing agreement (not a broker to broker agreement) 2:) Buy and read "Buyer Brokerage" by James Warkenton and apply his philosophies.
The UK and Australia and really almost every other country has commissions less than 2%. Our system would hopefully begin to look like theirs
Complete Chaos. We had a great system for a long time that afforded representation to both parties for fair compensation, and brought more buyers into the market, which raises the sellers sales prices.
Colorado fought hard to eliminate Dual-Agency. This seems as though it could push us back to that. Nonsense.
Lol. I love how Rob (who is correct) has to explain this. Agents and Brokers have been committing felonies for years. Also, your E&O insurance will not cover this-either explicitly or by implication-because it is an intentional, criminal act.
Agents will not shrink as far as licensing. They will leave the NAR, who if the brokerage requires membership, will lose the brokers to their own, even if it is sole proprietorships.
Honestly this is the first I’ve heard of this also. I wonder if that is why our broker literally doubled their fees in one year- many have left
Not really anything to justify the increase either
Now... We will see Complete Chaos. We had a great system for a long time that afforded representation to both parties for fair compensation, and brought more buyers into the market, which raises the sellers sales prices. Competition has driven the sales price up for sellers by more than 3% for decades.
It's not the concept of a trade organization that is on trial. It's how buyers' representation was brought to the forefront of the industry and how the trade organization supported it. There were many people in the real estate industry who didn't support the idea of the seller having to pay for the buyer's representation, which in a nutshell - makes no sense. So everyone tries to justify it and the truth is, its going to be a tough hill to defend.
I'm a listing agent. But,, without buyers agents its the wild west and I'm liable for everything. Happy to share commission with a buyers agent who will ethically work with a buyer and represent them.
I understand your position and agree that cooperation is in the best interest of all parties. But the fact remains that buyer brokerage wasn't founded based on helping the selling consumer. It was founded based on control and profit by the large brokerages. That is why the issue was never addressed on behalf of the seller, it wasn't designed for them to begin with or we would have dealt with what we all knew was a poor policy. @@SoldOnElPaso
In todays world it is hard if not impossible to steer customers. Consumer sees all properties.
No insurer will cover agents payment for steering, agents will need to carry their own bond to their broker because insurance won't cover when a crime is committed. A bond will like a Personal Representative of an estate getting bonded against the risk of breach of duty or the like.
I just negotiated a 3.5% commission as a seller. He will split with buyers agent. Happy with new rule
“Is realty a cartle?”
“I don’t know what a cartel is, but no”
“Realty is a meeting of the minds, so it is a conspiracy”
Bro…stop talking😂😂😂
But really he was spot on with early analysis
Rob Hahn is still alive?
Great, tired paying $12k for a house salesman to put out cookies on weekend.
Then hire a different agent... lol
Buyers will have no representation and will have to deal with listings agents!!! They work for the seller. Commissions are negotiable
To Conspire is making SECRET agreements to do unlawful acts. You guys gloss over the term.
LIMLS says the listing agent has the power!
Who get s the settlement millions
What is the effect of this current lawsuit on commercial real estate?
In our first video on this topic, Garry mentioned that buyers usually compensate their agents directly in commercial real estate. If that's the case, then this lawsuit may not have an affect commercial folks.
No this is not correct. Agent comp Is generally similar to resi where the owner / landlord pays the agents comp on both sides. Generally speaking.
Zillow?
I think it ridiculous. Seller and buyer keep over paying and sellers
just keep
taking the money. This all bunch of crap.
Well you weren’t 100% wrong….they settled
It will be really interesting to see what NAR does as we approach the trial start date.
Yes
It is a cartel
I think it will go to the Supreme Court.
What a sensationalist. I understand this to be a serious matter but as per this Rob former attorney guy sounds like he wants it to happen so he can create a new national mls! I have more confidence in the real estate industry that some thing will work out in our favor. I don’t think it’s funny either.