The first major opportunity that NAR had to protect and defend the industry and they immediately fold. These new rules will make it more difficult for buyers to receive representation - resulting in a marked advantage for sellers. This will further exacerbate the inequities of marginalized groups. Like many government actions, it will result in the opposite of its intended goal.
Until the market flips. We're up on price decreases. It will be a buyers market someday and they'll beg an agent to show their houses. We're not in 2008 territory at all or ever again but I'm getting listing agents calling me to bring them a buyer
are we sure the opposite was the intended goal of the government? - remember they said they were going to build back better that was their campaign slogan ...
@@a.c.barnes1449 that was a political campaign thing about the infrastructure bill that is totally not related to buyers not having representation when they buy a home and believe me they’re gonna be some that are going to do it on their own. They’ll replace their roofing or get a new electrical panel on their own as well buyers beware that’s what the old way was when I got my real estate license back in 1980
At 14:54 is the crux of the issue. If a seller is offering a buyer concession, most will apply it to their closing costs. Under the old rules, the offered compensation was earmarked specifically for the buyer agent. Now, buyer agents are going to have to fight for every penny, despite bringing plenty of value to the transaction. It's a mess and hasn't been well thought out. The more I explore it, the more I realize it has nothing to do with helping consumers buy and sell real estate.
Helps big corporations that hates agents. In the end they'll find some way to get rid of all of us if we keep letting this crooked doj keep up with his war path
@@BasicLeightrue, but they would continue to pay for the insurance, possible mortgage, and taxes, if it doesn't sell, so not a major loss to the buyer.
This will not incentivize buyers to sign contracts. Buyers will go direct to listing agents. Who in their right mind would sign buyer agency when they can just contact the listing agent.
Yes, but why would we be obliged to help the buyer, except that the seller wants the house sold…sure we will try and help the buyer, but as a sellers agent can we even speak to the buyer? Perhaps we can speak to the buyers lender because we will have that information on their prequalification letter. But if they’re paying cash and we can’t talk to the buyer and they mess up well…. Say there are multiple offers, So if there’s more than one offer on the house, and the buyer screws up… their contract having missing a timeline, etc, could have had a buyers agent that would be jumping thru hoops to get the extension on a timeframe, or new conditions, for instance …so that doesn’t happen, but who’s watching the buyer, their lender??? That’s not their job. When the buyer out there on there own messes it up, sellers take their deposit and then take the other offer that may be higher. Could happen…You’re only representing the seller after all.
Just have the buyer sign the confirmation of agency status with the box checked for Unrepresented. You represent your seller and the buyer is more or less treated transactionally. I'm not saying you do anything that would screw the buyer, but you remain the sellers agent and the buyer understands where they stand. They might re-think using a buyer agent at that point.
@@canireech news alert-- going to the listing agent buyers will still have to sign a buyer broker agreement…. of some sort…who knows what that altered form will look like…listing agents first responsibility is to their SELLER… the buyer will still have to pay to that listing agent who they DO NOT KNOW…. Talk about STEERING… go sign a contract with an agent that you have never met!!! Good luck to buyers… here come the lawsuits.,.,, The DOJ and attorneys have never SOLD a house…. I have never in my career SEEN any steering…. Compensation by decided by the comparable SOLDS and average commission… sellers never HAD to pay the same as everyone else-- it just WORKED fine.,, no one I know ever steered away from a 2% commission instead of a 3% or 2.5%…. houses are ALL on the INTERNET… there was NO HIDING HOUSES as clients often found them on their immediate alerts and called their agents… It was working JUST fine…. This is a huge scam against our profession???? Good going DOJ!
@@BasicLeigh it may come out of their proceeds but the buyer is buying the house and paying both commissions in the end because it is their money that purchases the house.
I love working with buyers and going to see lots of houses… I find it far more interesting than being stuck at one house and I think it's far easier to satisfy buyers… But here’s the best part I make more money than anyone in my office working with buyers than listing agents!!!… 🎉🎈🎊🎉🎊🎈🎊🎈🎊
Just think of all the buyers going without representation going forward how are they going to meet their timelines they’re going to get kicked out of contracts, etc.
@@parofficethey will lose. a contract is a contract. if you fail to meet the terms you lose. i’ve had many buyers come crying to me cause they decided not to use an agent and got screwed out of their escrow and lost he contact.
@@welcomematthomes yeah but they’re not in the club where they get to share their lawsuits. I mean whoever did this it’s not gonna reap any rewards from screwing everybody over.
I do believe there will be terms we can add that can be in the offer that 18:54 can be that seller pays buyers agent x amount. In Florida the closing statement shows how much goes to each agency, including transaction fees, all contributions, etc are disclosed .
In Florida it it is spelled out in the listing agreement Total commission and how much goes to the buyers agent is clearly spelled out, not just signed, but each page is initialed, so they see the commission split
@@marthawalters5511 If we have buyers representation, won’t we have the obligation to report all known facts? Or, is this a mystery, … This “more transparency”??? Just the opposite. They should create a form that we have buyers sign that mentions only the commission and how it is dispersed, and buyer representation form is something separate. I may not even sign one, even though, I’m not stupid…. If I was in another State, where I don’t know “exactly” the laws and rules, there… I would always have my own agent! I know how important it is and unless I’m in Florida, I will absolutely need an agent. Decades of experience has shown me it would be cost saving and big mistake avoidance, etc.
What I don't understand is why NAR left the meeting with DOJ very excited asking when they will meet again... They were supposed to represent us and not agree with this confused and inefficient changes that will hurt Realtors that work with buyers. I also can't understand how NAR accepted and surrendered to this Class Action Lawsuit. Who committed the non-negotiable commission abuse toward to consumer (sellers), other than the Brokers/Realtors that enforced the non-negotiation commission with their clients? They should be sued not NAR. NAR should defend our best interests and not just play guilty which is now confusing and harming the industry.
Last house I sold my agent negotiated with me and the buyer. I accepted the last of 3 offers and paid a 1-1/2 % commission. I had offered a number of RE agents 3%. Last house I bought was unlisted. I bought it from my neighbor. Signed contract sellers lawyer provided. None of them accepted it. Sellers remember you are in control. Don't loose it.
If you’re in a hot market pay to get on mls platforms. It’s total BS that you’re going to get significantly more money by selling with a realtor. It’s save me $68,700 on my last home sale and sold in two weeks. Furthermore, if someone is looking for a house, go directly to the listing agent if there is one and save yourself from having to deal with the buyers agent. It might not be that worthwhile in an entry-level home, but when you’re talking, dual commissions approaching 100 K it’s a no-brainer.
I had a thought that the buyer should be paid his/her commission as a percentage of the price discount that they get from the seller up to 3% of the selling price. For example list price is 500,000 seller agrees to sell at 450,000. Buyer agreed to 50% split with the agent. 50% of the 50K savings is $25000, in excess of the 13,500 (3%). not a net listing as it is capped. It incentives' the buyers agent to truly work for the buyer! Seller pays his agent and buyer is paying his agent for their true effort!
Better idea: Seller pays for and has access to MLS. Successful agents that bring a buyer that is ready, willing, and able to buy is rewarded the negotiated commission at closing.
Ricky's videos are a treasure trove of invaluable insights and wisdom! His multifaceted expertise in tax, legal, and wealth management makes him a go-to resource for navigating the complexities of personal and small business finance. Evelyn's engaging delivery and practical advice have significantly enhanced my understanding of wealth-building strategies
I completely understand the impact of Ricky's wisdom on personal finance-it's transformative. While I've found success in investing, especially with the guidance of my advisor, Evelyn Infurna, I still appreciate the solid foundation Ricky provides. His principles align with the core values of financial discipline. It's inspiring to see how various approaches, like Ricky's and strategic investment planning with Evelyn's expertise, can complement each other|...
You mention your advisor & that caught my attention. I'm eager to learn more and potentially seek her guidance. Could you share how I can get in touch with her???..
I searched for her complete name on the internet and located her page. I then sent an email and scheduled a meeting to converse with her; now, I'm awaiting her response..
Agents! Start focusing on off market deals so you don’t have to deal with this whole MLS fiasco. I deal with off market properties and I have had no issues getting my compensation from the buyer or the seller.
@@IWBVS I work with wholesalers who brings me off markets and I have a new trainee who looks for me too. Then I send the property out to my buyers via text and email, schedule showings, one of them signs and then we close. My niche is investment properties so I bring ugly houses to fix n flippers. I can’t deal with wishy washy retail buyers, doesn’t fit my personality. Investors either want to do a deal or they move on, saves so much time. Also my investor buyers are repeat customers so they will buy 2,3,4 deals from me in one month. AND I get to list the properties after they are all fixed up. So I usually make 2 commissions only one house!
Unfortunately this is the new way. The new way is more redundant phone calls to get whats being offered. Im going to start a portal for all agents to look up the seller offered commissions. who would pay for that? $5 a month?
Finding the property is the easy part, hence why zillow does it. Hell a trained monkey could do that. The value comes from knowing how to go from there to navigating the complex process of conveying title and ownership interest from one, to another. Try again, but try harder next time.
Ok so they're saying the buyer broker agreement can be amended if the seller is offering more compensation than what the buyer and buyer agent agreed upon....BUT how will we know what the seller is offering if it isn't listed and we are not allowed to ask?
I would like to take a look at tax payer funded jobs- those atronomical salaries, benefits and petks the DOJ enjoy on our dime, for instance. They should have to spell out their duties just as specifically and make a contract with each and every American citizen stating that they will work for whatever we negotiate and even for free when it is in OUR best interests.Lets start on the local level with the DOL and work our way put and upwatd
I think we are going to have every listing agent sign an affidavit stating that they and seller are not offering compensation . We can’t just take their word. It all needs to be in writing to prevent discrimination and unfair housing.
I just spoke to a seller that I am going to be representing…. They thought the new rules are ridiculous and to penalize the agent BRINGING them a QUALIFIED buyer and not just some guy off the street is nonsense. They are totally willing to pay the buyers agent a 2.5% commission as is every other agent that has s listing in this particular zip code,. I reached out to over 20 agents- all their sellers on board. Clients like structure not a unknown.
@@Homesncooking This is not even a consumer issue. The DOJ is just trying to find ways to do a money grab. This situation was concocted by a bunch of attorneys convincing some homeowners theres a way to twist the system to make it appear agents are in the wrong and then figure out a way to weaponize the Justice system to target real estate agents. This is just not a thing. No seller wants to complicate a sale by letting it sit on the market 2-3-4 times longer because the buyer cant afford to pay a buyers agent commission. Its just nonsense.
If I stated in private remarks "seller offering 2.5% seller concessions on thos home to use towards any form of buy side fees". Well if commission is now a buy side fee then this concession will cover it!
Concessions are talked about because concessions can be used for compensation. If concessions are line itemed on the settlement statement as commissions, then maximum interested party contributions are not affected by the concessions used towards compensation.
I’d like to hear from the lenders. Do any lenders out there have any creative options that buyers could use to pay for buyer representation if the seller is not paying? Is it possible that buyers can finance the buyers broker fee?
If the offer goes up in price in order to cover buy side commissions, that commission is financed into the loan.....In a. round about way. Just need to be sure it will appraise for the higher amount.
As a potential seller of my house, I find this all very confusing. I have an agent who wants to put my house on a bidding website where the buyer pays a 5% premium that goes to the agents. Any thoughts, anyone?
Yes, just a quick question. If the seller refuses to pay the buyers agent commission, and the buyer can’t afford to pay the agent a commission, how is the agent going to be paid?
I had about 30 pending at that time, but I don't micro manage the deals. I was 15 years into the business at that point. Doing deals was like breathing...very easy
The other mystery is how does the work a real estate agent does differ between a 150,000 dollar property and a 1 million dollar property? Is the paper the contract is written on gold laden? Makes no sense, just saying.
Same reason car, medical device, financial services, software salesmen, or anyone else in sales get paid more for selling higher dollar figure products
Millionaire clients can take a year or more to close. Time is a big factor here. The other factor is that when there is more money on the line, there is more risk.
A buyers agent is non value added unless they negotiate the price down. I’ve told both of my realtor friends that for every 10k they negotiate the price down, I will pay them $1000. buyers agent commissions should never ever be on the same transaction sheet as the sellers commissions. It all needs to be separate. Will see where all this ends up.
Sorry, but you’re wrong. I get it, you think their value is directly attributed to the amount they can negotiate. However, you fail to realize there are about 26 pages in a residential purchase agreement, over 50 pages of disclosures, several contingencies that need to be explained (especially to first time home buyers) and listing agents won’t do this extra work. Nor can listing agents do their fiduciary duty better than a buyer agent can do, because they are looking out for the sellers first.
@@keonnee7923 in my opinion and experience. No realtor on the seller side or buyers side is worth it. My closing attorney, title company and lender handle nearly everything. I can print out complete buyers or sellers paperwork from the title companies and make offers, or receive offers. It’s not complicated. I think realtors should be paid about 20-30 bucks a hour. Never more than a nurse, school teacher, or electrical worker.
If I’m a listing agent the statement “We are not discussing offers of compensation prior to an offer being presented”. This needs to be your default response to protect your seller.
Ricky, the whole idea of this is to stop the greed of many buyer's realtors/agents to only show or to just plaster in the buyers' faces those properties that will pay them the higher commission. The purpose of a buyer's realtor/agent should be to help the buyer find the house that better suits their needs and their lifestyle, regardless of the commission the seller is paying. As a buyer's realtor/agent you should look after the buyer's needs, not yours. That is the whole idea of this NAR/DOJ issue, that the buyers' realtors/agents became greedy and they are defaulting on their purpose of helping and looking after their buyer's best interests.
Maybe 40 years ago. The current system doesn't allow this as buyers see everything for sale and tell the agents which homes they want to see. What this lawsuit is doing is compromising that very thing.
MLS membership doesn’t make any sense anymore
The first major opportunity that NAR had to protect and defend the industry and they immediately fold. These new rules will make it more difficult for buyers to receive representation - resulting in a marked advantage for sellers. This will further exacerbate the inequities of marginalized groups. Like many government actions, it will result in the opposite of its intended goal.
Until the market flips. We're up on price decreases. It will be a buyers market someday and they'll beg an agent to show their houses. We're not in 2008 territory at all or ever again but I'm getting listing agents calling me to bring them a buyer
Be back like in the old days Buyers beware
"House always wins". This was probably the intent all along.
are we sure the opposite was the intended goal of the government? - remember they said they were going to build back better that was their campaign slogan ...
@@a.c.barnes1449 that was a political campaign thing about the infrastructure bill that is totally not related to buyers not having representation when they buy a home and believe me they’re gonna be some that are going to do it on their own. They’ll replace their roofing or get a new electrical panel on their own as well buyers beware that’s what the old way was when I got my real estate license back in 1980
At 14:54 is the crux of the issue. If a seller is offering a buyer concession, most will apply it to their closing costs. Under the old rules, the offered compensation was earmarked specifically for the buyer agent. Now, buyer agents are going to have to fight for every penny, despite bringing plenty of value to the transaction. It's a mess and hasn't been well thought out. The more I explore it, the more I realize it has nothing to do with helping consumers buy and sell real estate.
Helps big corporations that hates agents. In the end they'll find some way to get rid of all of us if we keep letting this crooked doj keep up with his war path
@@martinfosterrobbins why are you so angry?
Not about the consumer at all
@@BasicLeigh the buyer finances the deal. If it wasn't for the buyer there would be no commission
@@BasicLeightrue, but they would continue to pay for the insurance, possible mortgage, and taxes, if it doesn't sell, so not a major loss to the buyer.
Thanks, Ricky
Seller's will understand best when they become a Buyer!
⚘️⚘️⚘️
This will not incentivize buyers to sign contracts. Buyers will go direct to listing agents. Who in their right mind would sign buyer agency when they can just contact the listing agent.
Yes, but why would we be obliged to help the buyer, except that the seller wants the house sold…sure we will try and help the buyer, but as a sellers agent can we even speak to the buyer?
Perhaps we can speak to the buyers lender because we will have that information on their prequalification letter. But if they’re paying cash and we can’t talk to the buyer and they mess up well…. Say there are multiple offers,
So if there’s more than one offer on the house, and the buyer screws up… their contract having missing a timeline, etc, could have had a buyers agent that would be jumping thru hoops to get the extension on a timeframe, or new conditions, for instance …so that doesn’t happen, but who’s watching the buyer, their lender??? That’s not their job. When the buyer out there on there own messes it up, sellers take their deposit and then take the other offer that may be higher. Could happen…You’re only representing the seller after all.
𝓔𝔁𝓪𝓬𝓽𝓵𝔂. 𝓐𝓷𝔂 𝓫𝓾𝔂𝓮𝓻 𝔀𝓸𝓻𝓽𝓱 𝓽𝓱𝓮𝓲𝓻 𝓼𝓪𝓵𝓽, 𝔀𝓲𝓵𝓵 𝓻𝓮𝓪𝓵𝓲𝔃𝓮 𝓽𝓱𝓪𝓽 𝓰𝓸𝓲𝓷𝓰 𝓽𝓸 𝓽𝓱𝓮 𝓵𝓲𝓼𝓽𝓲𝓷𝓰 𝓪𝓰𝓮𝓷𝓽 𝓭𝓲𝓻𝓮𝓬𝓽 𝔀𝓲𝓵𝓵 𝓼𝓮𝓻𝓿𝓮 𝓽𝓱𝓮𝓶 𝓫𝓮𝓼𝓽
Just have the buyer sign the confirmation of agency status with the box checked for Unrepresented. You represent your seller and the buyer is more or less treated transactionally. I'm not saying you do anything that would screw the buyer, but you remain the sellers agent and the buyer understands where they stand. They might re-think using a buyer agent at that point.
The listing agent has a fiduciary obligation to the seller. Currently, double agency is a leading cause of lawsuits.
@@canireech news alert-- going to the listing agent buyers will still have to sign a buyer broker agreement…. of some sort…who knows what that altered form will look like…listing agents first responsibility is to their SELLER… the buyer will still have to pay to that listing agent who they DO NOT KNOW…. Talk about STEERING… go sign a contract with an agent that you have never met!!! Good luck to buyers… here come the lawsuits.,.,, The DOJ and attorneys have never SOLD a house…. I have never in my career SEEN any steering…. Compensation by decided by the comparable SOLDS and average commission… sellers never HAD to pay the same as everyone else-- it just WORKED fine.,, no one I know ever steered away from a 2% commission instead of a 3% or 2.5%…. houses are ALL on the INTERNET… there was NO HIDING HOUSES as clients often found them on their immediate alerts and called their agents… It was working JUST fine…. This is a huge scam against our profession???? Good going DOJ!
This is what it looks like when Bureaucrats dictate how to do business and fix things that were never broken.
@@BasicLeigh it may come out of their proceeds but the buyer is buying the house and paying both commissions in the end because it is their money that purchases the house.
@@BasicLeigh there is no money without a buyer paying. It’s not a cashout refi.
First time buyers are going directly to seller's agent. Buyers will not have enough money to pay commission to get representation.
Get rid of mls!!! There’s no need for mls and brokers and NAR!
I love working with buyers and going to see lots of houses… I find it far more interesting than being stuck at one house and I think it's far easier to satisfy buyers… But here’s the best part I make more money than anyone in my office working with buyers than listing agents!!!… 🎉🎈🎊🎉🎊🎈🎊🎈🎊
Good on you... 😉
Just think of all the buyers going without representation going forward how are they going to meet their timelines they’re going to get kicked out of contracts, etc.
Just think of how many of those buyers will sue the snot of our these mega corporations and sellers who screwed them over.
@@parofficethey will lose. a contract is a contract. if you fail to meet the terms you lose. i’ve had many buyers come crying to me cause they decided not to use an agent and got screwed out of their escrow and lost he contact.
@@paroffice this is ANOTHER reason why the attorney's wanted this to HAPPEN!!!! MORE litigation!!!
@@welcomematthomes yeah but they’re not in the club where they get to share their lawsuits. I mean whoever did this it’s not gonna reap any rewards from screwing everybody over.
Better get the compensation in writing from listing broker. I would not call.
This nonsense is why I left NAR well over a year ago.
I use crexi for my commercial real estate marketing... I don't even use MLS for marketing anything commercial...
Jesus, stop crying. Realtors have been abusing the system all of this time.
This is what happens when incompetent greedy attorneys and corrupt organizations don’t understand the process and don’t care.😢
It's changing Aug. 17
Whoa, they are doing it. List to last: Because why chase buyers when you can let them come to you?
I do believe there will be terms we can add that can be in the offer that 18:54 can be that seller pays buyers agent x amount. In Florida the closing statement shows how much goes to each agency, including transaction fees, all contributions, etc are disclosed .
Poor buyers, previously they were paid by the seller’s now they could get priced out
I'm thinking if we put buyer agent compensation on our own website then we could put our website address in mls in all our listings.
In Florida it it is spelled out in the listing agreement
Total commission and how much goes to the buyers agent is clearly spelled out, not just signed, but each page is initialed, so they see the commission split
@JanineFinerealtor hey fellow Florida Agent! I'm just thinking of ways to let the buyer's agent know what if any seller paid compensation is.
@@marthawalters5511 If we have buyers representation, won’t we have the obligation to report all known facts? Or, is this a mystery, … This “more transparency”??? Just the opposite.
They should create a form that we have buyers sign that mentions only the commission and how it is dispersed, and buyer representation form is something separate. I may not even sign one,
even though, I’m not stupid…. If I was in another State, where I don’t know “exactly” the laws and rules, there… I would always have my own agent! I know how important it is and unless I’m in Florida, I will absolutely need an agent. Decades of experience has shown me it would be cost saving and big mistake avoidance, etc.
What I don't understand is why NAR left the meeting with DOJ very excited asking when they will meet again... They were supposed to represent us and not agree with this confused and inefficient changes that will hurt Realtors that work with buyers. I also can't understand how NAR accepted and surrendered to this Class Action Lawsuit. Who committed the non-negotiable commission abuse toward to consumer (sellers), other than the Brokers/Realtors that enforced the non-negotiation commission with their clients? They should be sued not NAR. NAR should defend our best interests and not just play guilty which is now confusing and harming the industry.
Last house I sold my agent negotiated with me and the buyer. I accepted the last of 3 offers and paid a 1-1/2 % commission. I had offered a number of RE agents 3%. Last house I bought was unlisted. I bought it from my neighbor. Signed contract sellers lawyer provided. None of them accepted it. Sellers remember you are in control. Don't loose it.
If you’re in a hot market pay to get on mls platforms. It’s total BS that you’re going to get significantly more money by selling with a realtor. It’s save me $68,700 on my last home sale and sold in two weeks. Furthermore, if someone is looking for a house, go directly to the listing agent if there is one and save yourself from having to deal with the buyers agent. It might not be that worthwhile in an entry-level home, but when you’re talking, dual commissions approaching 100 K it’s a no-brainer.
I had a thought that the buyer should be paid his/her commission as a percentage of the price discount that they get from the seller up to 3% of the selling price. For example list price is 500,000 seller agrees to sell at 450,000. Buyer agreed to 50% split with the agent. 50% of the 50K savings is $25000, in excess of the 13,500 (3%). not a net listing as it is capped. It incentives' the buyers agent to truly work for the buyer! Seller pays his agent and buyer is paying his agent for their true effort!
Better idea: Seller pays for and has access to MLS. Successful agents that bring a buyer that is ready, willing, and able to buy is rewarded the negotiated commission at closing.
Interesting regarding calling it seller concessions as lenders have a limit as to what sellers can contribute.
They’ve already increased it for FHA, it won’t go against it.
@@BasicLeigh then don't call it concession since that has a specific meaning in this regard
So I’m an agent and want to buy a home for myself- do I sign an agreement with myself to pay myself? Smh😂😅
Ricky's videos are a treasure trove of invaluable insights and wisdom! His multifaceted expertise in tax, legal, and wealth management makes him a go-to resource for navigating the complexities of personal and small business finance. Evelyn's engaging delivery and practical advice have significantly enhanced my understanding of wealth-building strategies
I completely understand the impact of Ricky's wisdom on personal finance-it's transformative. While I've found success in investing, especially with the guidance of my advisor, Evelyn Infurna, I still appreciate the solid foundation Ricky provides. His principles align with the core values of financial discipline. It's inspiring to see how various approaches, like Ricky's and strategic investment planning with Evelyn's expertise, can complement each other|...
You mention your advisor & that caught my attention. I'm eager to learn more and potentially seek her guidance. Could you share how I can get in touch with her???..
Well the name is 'Evelyn Infurna'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
SHE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
I searched for her complete name on the internet and located her page. I then sent an email and scheduled a meeting to converse with her; now, I'm awaiting her response..
Oh how I wish I lived in America being coached by you Ricky. I would have smashed it!!
Nothing will change it will be business as usual except for a greedy few
Agents! Start focusing on off market deals so you don’t have to deal with this whole MLS fiasco. I deal with off market properties and I have had no issues getting my compensation from the buyer or the seller.
How do you get those off market deals and what do you do with them?
@@IWBVS I work with wholesalers who brings me off markets and I have a new trainee who looks for me too. Then I send the property out to my buyers via text and email, schedule showings, one of them signs and then we close. My niche is investment properties so I bring ugly houses to fix n flippers. I can’t deal with wishy washy retail buyers, doesn’t fit my personality. Investors either want to do a deal or they move on, saves so much time. Also my investor buyers are repeat customers so they will buy 2,3,4 deals from me in one month. AND I get to list the properties after they are all fixed up. So I usually make 2 commissions only one house!
Unfortunately this is the new way. The new way is more redundant phone calls to get whats being offered. Im going to start a portal for all agents to look up the seller offered commissions. who would pay for that? $5 a month?
I hate to say, but the buyer agents aren’t doing anything for the Modern buyer. We see it all on Zillow.
Then, why are still using them?
Finding the property is the easy part, hence why zillow does it. Hell a trained monkey could do that. The value comes from knowing how to go from there to navigating the complex process of conveying title and ownership interest from one, to another. Try again, but try harder next time.
Ok so they're saying the buyer broker agreement can be amended if the seller is offering more compensation than what the buyer and buyer agent agreed upon....BUT how will we know what the seller is offering if it isn't listed and we are not allowed to ask?
That’s less disclosure
Could be a 1st amendment violation.
I would like to take a look at tax payer funded jobs- those atronomical salaries, benefits and petks the DOJ enjoy on our dime, for instance. They should have to spell out their duties just as specifically and make a contract with each and every American citizen stating that they will work for whatever we negotiate and even for free when it is in OUR best interests.Lets start on the local level with the DOL and work our way put and upwatd
I think we are going to have every listing agent sign an affidavit stating that they and seller are not offering compensation . We can’t just take their word. It all needs to be in writing to prevent discrimination and unfair housing.
I just spoke to a seller that I am going to be representing…. They thought the new rules are ridiculous and to penalize the agent BRINGING them a QUALIFIED buyer and not just some guy off the street is nonsense. They are totally willing to pay the buyers agent a 2.5% commission as is every other agent that has s listing in this particular zip code,. I reached out to over 20 agents- all their sellers on board. Clients like structure not a unknown.
@@Homesncooking This is not even a consumer issue. The DOJ is just trying to find ways to do a money grab. This situation was concocted by a bunch of attorneys convincing some homeowners theres a way to twist the system to make it appear agents are in the wrong and then figure out a way to weaponize the Justice system to target real estate agents. This is just not a thing. No seller wants to complicate a sale by letting it sit on the market 2-3-4 times longer because the buyer cant afford to pay a buyers agent commission. Its just nonsense.
@@Homesncookingthat’s a great way to join forces and not allow this frivolous change take affect
If I stated in private remarks "seller offering 2.5% seller concessions on thos home to use towards any form of buy side fees". Well if commission is now a buy side fee then this concession will cover it!
Concessions are talked about because concessions can be used for compensation. If concessions are line itemed on the settlement statement as commissions, then maximum interested party contributions are not affected by the concessions used towards compensation.
There's nothing you can do about it. complain all you'd like.. but refer back to the top.
I’d like to hear from the lenders. Do any lenders out there have any creative options that buyers could use to pay for buyer representation if the seller is not paying? Is it possible that buyers can finance the buyers broker fee?
Nope! Lenders will push buyers towards listing agents or real estate attorney
Let's be honest, if the seller doesn't pay the buyer's agent then it's " no sale"
Whoever wrote that letter should be fired.
Just a layperson, but the buyer should pay their agent and it should be wrapped up in the mortgage. Should have been that way forever.
If the offer goes up in price in order to cover buy side commissions, that commission is financed into the loan.....In a. round about way. Just need to be sure it will appraise for the higher amount.
As a potential seller of my house, I find this all very confusing. I have an agent who wants to put my house on a bidding website where the buyer pays a 5% premium that goes to the agents. Any thoughts, anyone?
That's a brilliant strategy, you'll net more money!!!
This was very helpful and encouraging, Mr. Carruth. Thank you!
Preach Ricky! Good one! Thanks!
Ricky Carruth for head of DOJ 🎉🎉🎉
Yes, just a quick question. If the seller refuses to pay the buyers agent commission, and the buyer can’t afford to pay the agent a commission, how is the agent going to be paid?
The buyer doesn't need to sign a contract they can't pay
@@RickyCarruth So the buyer can’t buy the house?
It will be up to the selling agent to share her commission with the buyers agent.
Awesome video thank you!!!
Link to your microphone?
How can someone handle 70+ listings 😅with all the things you have to deal in escrow?
I had about 30 pending at that time, but I don't micro manage the deals. I was 15 years into the business at that point. Doing deals was like breathing...very easy
@@RickyCarruth sorry I don’t understand micro
Very muddy
The other mystery is how does the work a real estate agent does differ between a 150,000 dollar property and a 1 million dollar property? Is the paper the contract is written on gold laden? Makes no sense, just saying.
More liability and room to negotiate to save your client much more
Same reason car, medical device, financial services, software salesmen, or anyone else in sales get paid more for selling higher dollar figure products
Millionaire clients can take a year or more to close. Time is a big factor here. The other factor is that when there is more money on the line, there is more risk.
A buyers agent is non value added unless they negotiate the price down. I’ve told both of my realtor friends that for every 10k they negotiate the price down, I will pay them $1000. buyers agent commissions should never ever be on the same transaction sheet as the sellers commissions. It all needs to be separate. Will see where all this ends up.
Sorry, but you’re wrong. I get it, you think their value is directly attributed to the amount they can negotiate. However, you fail to realize there are about 26 pages in a residential purchase agreement, over 50 pages of disclosures, several contingencies that need to be explained (especially to first time home buyers) and listing agents won’t do this extra work. Nor can listing agents do their fiduciary duty better than a buyer agent can do, because they are looking out for the sellers first.
@@keonnee7923 in my opinion and experience. No realtor on the seller side or buyers side is worth it. My closing attorney, title company and lender handle nearly everything. I can print out complete buyers or sellers paperwork from the title companies and make offers, or receive offers. It’s not complicated. I think realtors should be paid about 20-30 bucks a hour. Never more than a nurse, school teacher, or electrical worker.
If I’m a listing agent the statement “We are not discussing offers of compensation prior to an offer being presented”. This needs to be your default response to protect your seller.
Ricky, the whole idea of this is to stop the greed of many buyer's realtors/agents to only show or to just plaster in the buyers' faces those properties that will pay them the higher commission. The purpose of a buyer's realtor/agent should be to help the buyer find the house that better suits their needs and their lifestyle, regardless of the commission the seller is paying. As a buyer's realtor/agent you should look after the buyer's needs, not yours.
That is the whole idea of this NAR/DOJ issue, that the buyers' realtors/agents became greedy and they are defaulting on their purpose of helping and looking after their buyer's best interests.
Maybe 40 years ago. The current system doesn't allow this as buyers see everything for sale and tell the agents which homes they want to see. What this lawsuit is doing is compromising that very thing.