Proposed settlement could mean end of 6% commissions for realtors
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- Опубліковано 30 вер 2024
- The powerful National Association of Realtors agreed to pay $418 million to settle lawsuits that accused it of artificially inflating commissions, while denying wrongdoing. Sellers could soon benefit from lower commission costs. CNBC's Diana Olick reports.
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#RealEstate #Lawsuit #Homebuyers
This changes NOTHING. It only shifts how the show the numbers. It's a load of crap.
The rule also doesn't lower home prices because there are people in the u.s. who own or purchase more than one house. Also, there are groups of people who are gathering together to buy multiple houses. What would actually lower the price of homes and apartments in the u.s. is if Congress issued a law that states that each citizen of the United States of America can only own one house or apartment that he or she lives in but when that person wants moves into a different house or an apartment, he or she can do so but that person's previous house or apartment, the place the citizen was living in before he or she moved, is to be owned or being sold to some other citizen.
I can’t find any news story or article that mentions who’s in the class action suit and when are the eligibility timeframes for past sellers. We know it’s a $418 million class action suit which means the attorney’s get half. But who’’s getting the remainder of the money? How many parties are involved in the class action law suit? Be nice to know who’s getting the $418 million right?
✅️ Right ✅️
It's thousands of plaintiffs. They are getting maybe $1,000, while mr Ketchup gets hundreds of millions.
Who ever sued and won made things worse for the buyers. This don't really hurt agents. Buyers have to pay for every service now. Lol
What’s also unethical are mortgage brokers charging over $1000 just to apply for a mortgage.
High housing prices are not because real estate agents commission. It’s supply and demand.
tell me you are a realtor without telling me you are a realtor
Tell me you know nothing about economics without telling me you know nothing about simple economics
Real estate commission isn't the issue It's 'corporate businesses' buying up single family homes making the supply lower and the demand's higher
Corporate buyers do not own a large percent of single family homes.
It’s great for the lead lawyer as well that also must be a good commission. 👍👍👍
This law is going to backfire so hard for people trying to buy a home lol.
Commissions were never fixed and have always been negotiable.
This is what I don't understand. I don't see what's changed
I bet u werea realtor. Prove me wrong. 😂
Yes but the Realtor wants to get paid. They are going to take the Buyers to homes with 6% commission first or ones with other incentives.
@@jbranche8024 how will they know.
@@jbranche8024 In theory yes, but in practice that's not how it works, at least not for me when I was a realtor (around 2006). And I worked on the buyer side.
Lol, so sad people don't understand. This made everything worse for the buyers. Now buyers have to pay for everything from looking at houses to paying closing fee of tens and thousands of dollars out of their pocket.
Seller agents will keep making the same money too. From 6% the seller agents made 3% (but lot of them give back up to 2% to clients) and 3% goes to buyer's agents (lot of them gave back money to their clients) but now with this new policy nothing really changes except buyers got to pay a lot now.
If I were a buyer having to pay the buyer's agent fee, I definitely would place a lower offer or below asking price to compensate the buyer's agent fee.
@@kenchu5900 I have a feeling that all realtors will have some kind of fixed price for equal competition so it might be still expensive.
Maybe the buyer will decide that paying $12,000 on a $400,000 home is a little steep. Maybe he doesn't need "full service". Maybe he'll hire an attorney or other professional at a much lower rate.
@@ski3435 But it was never the buyers who paid the commission though. It was sellers who paid for it. But now the buyers have to hire an agent and pay them.
Thank god. I can’t stand realtors. Complete waste of money.
You've never made a big investment in Real estate then.
@@3joewj no I haven’t, just a few houses. Nothing I couldn’t have done myself though. And not worth 6% of 980k
@cliffh8486 you're free to do it yourself, but realtors sell 96% of all sales in America...everyone is free to do it themselves. You are not being forced. Whats the issue then?
@@cliffh8486you sounding like an incel right now complaining lol
@@3joewj buyers are scared. That’s the problem
As a seller, a % works great because the realtor will try to get you the highest price possible.
As a buyer, a % means a much higher chance that your own realtor will not try to get you a lower price because the more you pay, the more they make.
Under Trump, a household income of $59,000 a year could “comfortably afford the monthly mortgage on a typical U.S. home, but under Biden, that number has risen to over $106,000, according to a new Zillow report.
IF IT WERENT THEIR FAULT, WHY ARE THEY....SETTLING?!
Organizations do this all the time. Verdicts are surprisingly hard to predict and defending litigation is very expensive. Sometimes it’s cheaper to settle than risk a nuclear verdict.
This still doesn’t fix the real estate market.
Interest is still 8% & inflation 20%
Sucks to be poor
@@YourMom-vl2sp Yes. And it’s sucking for a lot more people over the last few years.
@@YourMom-vl2sp sucks to be a boot licker and paying more money on interest because you're a sucker
Inflation is about 3%
Should be maximum 1% each for seller and buyer agents.
That's what I paid back in 2016 when I sold back in Washington state. A guy was doing it for 1% and I just heard a commercial and he's still in business.
That is very unfair! You do not understand the amount of money it takes to list a property. Buyers agent spend hours showing properties to prospective buyers.
@@dgordon8100 Then set up an hourly charge for your services.
Hire a real estate attorney. Done for 4 grand.
There is no such thing as a standard commission.
When a commission is used so widely and for so long, it becomes a de facto standard.
@@JohnnyAngel8 It’s only “de facto” in your head. Commissions have ALWAYS been negotiable.
Why was the lawsuit allowed standing and subsequent settlement allowed merit?
@@JohnnyAngel8 the challenge with that argument is that if you look at the historical averages, the last time the average commission was 6% was over 25 years ago.
Should be a flat charge of $100.00 for buyer and seller!😊
For the average transaction, an agent works around 40 hours. That puts the hourly rate at $2.50 based on your $100 flat fee proposal.
6% is Nothing...
I know of $100k+ sales that pull a minimum of 30% profit and that's not including all the benefits they acquire from deductions .
So now the buyers will have to pay for it?
Yep, for their own realtor
@videsos4040, no. The only thing agreed to is that the cooperating compensation listing brokers pay buyers agents can no longer be listed in the MLS. Listing brokers can still offer a cooperating buyer's agent compensation if they bring a buyer.
@@kevinjohnsoncoachingtrue we did that when we sold, but told 3 percent was standard. Which turns out there was never a standard!
@@Uwolz I am so sorry that you had an agent that was less than fully transparent with you. As with all professions, there are bad apples out there but they don't represent the vast majority of agents and brokers who go above and beyond every day.
Stop spreading lies it's doesn't change much and sure a heck doesn't change commissions unless you don't want to be represented but would you into the biggest investment of your life with out being represented?
5% was once the commission in real estate ... then realtors got greedy.
It’s not greed. A portion goes to the listing agent and the buyers agent. We also pay our brokerage a part of our commission, some even pay 50% to their broker and taxes the end of the year, so the net isn’t as much as your making it out to be.
So the problem is too many hands in the pot @@CS-mq7dh
Nah, this makes things worse for the buyers mostly. Now the buyers have to pay money to see houses and buying the houses. Whereas as before sellers paid for it. Also I know tons of agents who gave back up to 2% of their commissions to their clients.
@MusicLuv80 where & when?! What city, state & time did agents gave back their commission?
This opens the door for more competition for buyer's agents. Find the house yourself, then hire an attorney to do the paperwork for a fraction of the cost. Save the seller some dough and negotiate a lower price for the home!
Realtors , people who have no Art Skills other then presenting over-priced houses they pretend they built with their own hammers and nails
Always do for sale by owner. Keep that money in your pocket. Hire a real estate attorney to handle the paperwork,that’s what realtors do
You cannot sell a house without a network of real estate agents...you aren't selling ice cream 😂
So is it still a good time to get your real estate license?
no more middlemen ...good
Benefit?? Brainwashed 😂
6% isnt going to do much when houses are 350% overpriced.
We need to make extant housing affordable and we need public housing as the failures of the market have proven with the scattered, shattered lives of millions upon millions of Americans here in the US. There is so much empty housing serving as financial assets in investment portfolios of hedge fund and permanent capital cretins instead of as direly needed shelter for Americans. These unnecessary anonymous office buildings and homogeneously hideous petrochemical yuppie kennel condos intentionally priced out of financial reach of the workforce aren’t making housing more accessible by the developers of mediocrity (ever unhelpful and undesirable to the taxpayer residents of e.g. Portland) by “adding to supply” or affordability, but to the contrary and our collective detriment, are directly causing housing to be more expensive and , of course, less attainable as they artificially inflate the market that then causes cost of living to skyrocket. Actual houses should be affordable for everyone as a societal standard with an economy that isn’t allowed to rob people of it. The supply and demand oversimplification is a known false narrative misrepresentation frequently used as a disingenuous ploy of parasitic, societally toxic, necrotic price gouging corporate slumlords and profiteering developers of blight who knock down our cherished structures and affordable housing stock to then exploit tenants mercilessly. Simply building more just isn’t the answer whether the soft handed nut-jobs of unearned wealth that comprise the plutocracy like it or not. We cannot outbuild the greed of rentier capitalism. Allowing society to regress into another gilded age by allowing feudalism to exist in modern day America is pathetic and we need to evolve beyond an economy that cancerously consumes society. The entire city could be nothing but the tacky garbage housing being forced on us at infinite stories high and it’d still be unaffordable to most real people. Housing is supposed to shelter people, not exploitative profits. We need rent caps. Housing, in a humane and sane society, is for people having homes; the manifest purpose of housing is not for speculative investing, permanent capital, private equity or any of the other euphemistic titles of shady schemes and scams predatory sociopaths cloak their misdeeds masquerading as respectable careers under like so much bordello make-up. It’s errant and always socially destructive to allow societal necessities to be commodified and exploited as consumerist products.
Realtors are crooks
This will really hurt 1st time buyers
👏👏👏👏
Lowering the commission is not going to lower the cost of homes. Builders got greedy during the pandemic and are still being greedy. Same materials in homes from 3 years ago now. I can guarantee you a builder will tell you supply chain issues smh. High home prices and high interest will cause the market to collapse, just wait and see.....
Nothing is going to change, sellers will still pay buyer agents 2% - 3% commissions to bring them buyers and 5% - 6% commissions to sell overall. If you pay attention to the details, the only change is that agents cannot list the buyers agents commission in MLS. Listing agents are still able to share the commission they charge sellers and offer buyer agents commission to bring buyers. Nothing has been stated that commissions need to be lowered or that buyers need to pay their own commission, that is not going to happen. The only thing that will change is there will be a new way that listing agents communicate how much commission buyers agents are receiving. That will be the only change. Also New Construction Builders will continue to pay commissions to buyers agent to bring them buyers, so the resale market will need to stay in line and pay buyers agents as well. No major changes will happen.
Probably not. You forgot to mention that buyers will have to sign a contract at the get go that shows how much their agent is charging them. This will likely open the door to more deals being done on a flat rate basis and/or encourage other professionals to enter the buyer agent business like title companies and attorneys. Also there is a lawsuit pending in IL that if the plaintiffs prevail, will make it illegal for seller's agents to compensate buyer's agents.
@@ski3435Nothing will change, no buyers will be paying agents to show them homes. If that lawsuit prevails, then the commission will come directly from the sellers, not the listing agents.
I don’t get it. Commissions have always been negotiable and collusion between brokerages to fix commissions has been illegal. A brokerage can decide to fix its commissions but seller or buyer can look for another brokerage. Discount brokers who advertise 1% and 1.5% selling commissions are misleading as they tack on 2.5 to 4% for the buyers agent which oftentimes is themselves. Putting aside personal security concerns in not being represented qualified real estate professional bring knowledge of the minefield of disclosure and fiduciary facets of the transaction.
And if a home seller wants to set his commission at something less than 6%, will you list it on MLS?
Commissions have always been negotiable.
Not if you want your home listed on the MLS system!
It’s about time! The internet has replaced 90% of what realtors used to do. They should go the way of travel agents.
Having brokered a few thousand deals, there isn't a single task we do that has been replaced by the internet.
This new policy hurts the buyers the most. Now the buyers have to pay buy houses.
@@MusicLuv80 Realtors tell the buyers that the seller pays the fee. They tell the sellers to include the fee in the asking price so the buyer pays it. They’ve been convincing both sides that the other one pays it.
@@kevinjohnsoncoaching Maybe, maybe not. But one things for sure, it shouldn't cost 6%!
@@rockharvey5787 You're right, they have. But in reality the buyer winds up paying the fee because it is baked into the asking price. And now after July, the buyer will see explicitly what it is costing him.
Cannot happen fast enough. That whole industry is non value added.
Well, this law suit don't hurt agents. It just hurts the buyers. Now they have to pay money to buy houses whereas before the seller's paid for buyer's agents. Now buyer has to pay to see houses and pay tens of thousands of dollars for closing.
@@MusicLuv80 exactly, the buyers agent should only be paid by the buyer. It’s a conflict of interest for a seller to pay both the buyers and sellers agents. . And you think people will pay to go look at a house? 😂😂😂😂😂. We will see where it goes. I think when people figure out all you need is a title company, and your bank loan, or cash in some cashes to close on a house 50% of realtors are out of work.
@@joelballard4955 If they knew what you know but I know many people who tried selling or/and buy houses on their own and ended up badly. I just have agents who give back few percentage from their commission back to clients.
Good luck!😂😂😂
So they can charge one person 2% and the next person 5%… how does this fix the problem?
There's also the problem that realtors with lower commissions will not work as hard for you, when your property becomes "stale", as they would for sellers who will pay higher commissions.
I can see their being many fees to make back any lower commissions. Agents will now charge potential buyers for their time. Time showing homes, researching homes that meet buyers specifications driving to meet buyers at homes Sellers will have to pay for listings. Experienced buyers or sellers need little assistance and usually have a favorite Title Company already.
Yup, whoever sued and won actually made it worse for the buyers and good for the agents.
@@MusicLuv80 Good for the good agents. The marginal and part time agents will find other employment.
Some buyers will want the "full service" buyer's agent and be willing to pay for it. But are they really going to pay $10-15,000 for that service?
are you sure?
The Internet has already replaced them for free
Buy Shiba Inu coin lol
Fair would be 1% for realtors, they do NOTHING!
Then sell your home by yourself
Realtors are way over paid for what the do. The internet makes them almost worthless. Someone should start an Amazon for real estate.
"The internet makes them almost worthless" Which begs the question why sellers still list with them instead of FSBO
We got a real smooth brain here
But this new policy don't change things though. It only hurts the buyers. Now the buyers have to pay to see the houses and buying the houses whereas before seller's paid for it.
@@MusicLuv80 "Now the buyers have to pay to see the houses.." The difference now is buyer's agent commission isn't decided by the listing broker, but by the buyer and the agent they are working with. Both sides of the commission will still be included in the final purchase price, so there is no difference there.
Good, useless middleman
actually this don't hurt the agents much. It hurts the buyers because now they have to pay money to agents to buy houses.
About time very greedy
ABOUT TIME … commissions need to drop! Last property I sold was with agent of Redfin that charged lower commission.
The fact that you used Redfin and paid a lower commission proves there's no fixed commissions.
The value of an agent is that he has all the necessary paperwork. You can buy all that paperwork at Staples or Office Depot for about $35.00.
There is a loving God above
Commissions are always negotiable, and it’s always been free to work with the buyers agent
Ya I never heard of any mandatory 6% commission before.
U are an agent. Pun intended
@@user-vf6ru8gm9p there is no mandatory commisoms
I don't think that fact is well known.
Really? Would you put my home on MLS with less than a 6% commission?
The most unethical aspect of commissions is that the seller has to pay all of it.
There's nothing stopping sellers from doing a For Sale By Owner. So the question you should ask yourself is why don't they?
Exactly
No. Sellers price their homes higher to cover commissions. So in the end it's the buyer who pays.
REALTORS are LANDSHARKS..
VULTURES, my colleague posted his home for sale by owner on Facebook, and 23 different realtors called him to solicit their services 🙄
Is 6% illegal? If they've done nothing illegal, why are they paying a settlement?
More competition means better for buyers and sellers, Agents will have to earn their money the hard way now! If I don't like an agent or their fees I can go to a lower cost agent!
"I can go to a lower cost agent" You could already do this BEFORE this settlement. In fact, sellers don't even need to list with a broker, they can just FSBO.
@@RoughNeckDelta I suppose agents were taking advantage of the fact that most people like myself were not aware that you could shop around for lower commissions my last agent never disclosed how much they were making off my sale. I just assumed there was a flat fee for doing business with them!
@@jose09841 Did you try FSBO before listing? If not, why didn't you?
This hurts the buyers the most. Now they have to pay to buy houses. Lol
Agents didn't really lose anything from this law suit. Also there are lot of agents who gave their portion of commissions to their clients but now no more of that.
@@MusicLuv80 "This hurts the buyers the most. Now they have to pay to buy houses. " Buyers ALWAYS had to pay to buy a house. The buyer is the one who pays for everything, not just in a real estate transaction, but in any purchase transaction. It's like paying for sales tax, if it's included in the price you only think the store is paying for it, but if it's not included in the advertised price, the buyer is still paying for it. But in both cases, the buyer is still paying for it.
Its about time!!!!🎉
Buyers normally hire attorneys to represent them. Agents play little, if any, role for buyers.
I would just always use a buyer's agent no matter what. That, and a good title company.
5% is outrageous though & it drives inflation. It's not even that hard to get a Realtor's License either, which most real estate agents don't even have themselves.
You can't sell real estate with out a license.
You can't make COMMISSION without a Real Estate License. @@jackwilson3121
How do you know that most Real Estate Agents do not have a "Realtor's License" ?? 😂😂
😂🤣😂🤣 imagine if there was a commission on everything you buy. Including food 🤣😂🤣
I own a hair salon and I pay my staff 50% commission on services and 10% on product sales, but the customers don’t see that it’s worked into the price. Lots of people make commission from car dealers to electronics and home furnishings sales, bankers, clothing boutiques etc but the commission is worked into the retail price
sales tax is the govt's sales commission! 😡