Home Buyers Will REGRET the New Commission Rules
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- Опубліковано 25 бер 2024
- Home buyers are going to regret this recent settlement with the National Associations of Realtors. Come July, realtor compensation is going to change, making each party in a home sale pay for their own representation. While this will be a huge savings for sellers it’s going to cost the home buyers more. Let me explain how this is will effect the pocketbook of home buyers and I’m going to give you suggestions on how to move forward with this.
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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River
#realestate #jackiebakerrealtor #jackiebakersellsnj #homebuyingtips #homesellingtips #realestateinvesting #jackiebaker
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I would be more comfortable in negotiating for myself than to have two real estate agents making side deals.
Ok you have every right to do that.
Pfft!😂
Yep! Me too. I am selling my house bc I am moving again and they already calling me desperate to sale my house. I said no thanks! I am not going to pay 21,000 for them to sale my house in a month. I have to work 6 months to make 21k and they one to make that kind of money in one sale. Unbelievable.....
@nerissamartinez3669 only you should make money.
Your so ignorant and naive...
Here's a pretty good one. In 1996 I purchased my home without having my own agent. I also told the seller's agent that I want $2,000 back during escrow for not having an agent. They gave me exactly what I wanted..
That's great!
In 2004, I bought my first home without an agent from the seller who didn't have an agent. I then sold my first house without an agent to a buyer who didn't have an agent. Cost= $2,500 attorney fees + 1/2 closing costs. 5 houses later still no need for an agent.
That's awesome.
@AndrewTrung:
SOOO, you don't mind "paying" for the services, it's WHOM you're paying...??
You can pay a Buyers agent for EXACTLY the same services...
In the last recession, I bought foreclosures without an agent. I did all the leg work and so worth it.
Agent is all about🤑🤑🤑🤑🤑🤑🤑🤑🤑
paying a lawyer flat fee of $2500 vs 3% of purchase price? I pick flat fee.
We hire an "agent" to look out for our best interests only to find out realtors are only looking out for their best interest.
It's always been that way.
What do they do?
As a buyer I look on MLS for listings that fit my criteria, other than setting up a walk thorough and submitting the offer, they never tell what they do for buyers.
That's false
@@layoung4513 Agents are unindicted co-conspirators in the biggest financial crime in U.S. history.
No broker should receive anywhere near 2-3% on either side. They are glorified sales persons . They should work on a flat fee. The closing attorneys do the paperwork and that should be it....$1,500 is a reasonable fee for the attorney.
And what do you do for a living my darling?
Totally correct !!
@@jaccole my love, till you walk a mile in the shoes of any profession, probably best to not opine as your lack of knowledge is showing.
Knowledge - as with any profession you have different levels of expertise, some shit, some okay, some great. Capitalism at its finest there. Should they up the standards, I think so but if you're a professional its an ever learning experience and even if not have to keep chasing more to continue to be licensed. Be a better consumer as the alternative would be even worse.
As for the pay per transaction, if you knew the expenses as well as time spent that went into getting those clients v a surgeon or medical professional I guarantee they make much less.
How do I know all this you say? Have relatives in the business and managed a real estate office sans my relatives in two different states.
Either way, I hope your profession is not maligned falsely ever for others personal gain and greed.
Have a fantastic rest of your week. And if your itching for further conversation let me know. Would love to speak further over UA-cam live and even better if we can get some agents and med professionals on just to test our assertions.
@@bobbob61 Unless elbertkim55555 is a surgeon or anesthesiologist then I doubt they make what a RE agent makes for one transaction. Have you looked up how little education a RE agent needs in your State to obtain a license. You might be surprised. States in US require between 60-180 hours of classroom time. Those are hours, not college credits. That few hours makes you an expert in nothing.
@@jaccole my love, till you walk a mile in the shoes of any profession, probably best to not opine as your lack of knowledge is showing.
Knowledge - as with any profession you have different levels of expertise, some shit, some okay, some great. Capitalism at its finest there. Should they up the standards, I think so but if you're a professional its an ever learning experience and even if not have to keep chasing more to continue to be licensed. Be a better consumer as the alternative would be even worse.
As for the pay per transaction, if you knew the expenses as well as time spent that went into getting those clients v a surgeon or medical professional I guarantee they make much less.
How do I know all this you say? Have relatives in the business and managed a real estate office sans my relatives in two different states.
Either way, I hope your profession is not maligned falsely ever for others personal gain and greed.
Have a fantastic rest of your week. And if your itching for further conversation let me know. Would love to speak further over UA-cam live and even better if we can get some agents and med professionals on just to test our assertions.
I don’t know guys
I’m 40 and over the last 18 years I have bought and sold 10 residential single families and one small commercial building and I’m no genius but I did not need an agent once. With the internet and a million different businesses out there to facilitate the contracts and the help of transaction coordinator. Buyers agent are about as useful these days as a travel agent lol.
Good for you! Anybody especially with your experience can go it alone. No one e HAS to use a real estate agent.
Happy for you that you are smarter than the average bear, but most people, particularly first time home buyers unfortunately are not and they are going to get into trouble bcz they don't know ... what they don't know.
So true! Many buyers aren't first time home buyers.
I agree. When I bought my first place in 95 and used a agent. But the times have changed my last 3 properties I have done for sale by the owner. I was a little intimated selling the first time. Once I went through the process and the curtains got pulled back, I found it very easy.
Bullsh*t bro. Your type asks 9000 questions and then claims they did it all by themselves and portrays themselves as a capable. Especially on commercial.
I think it's hilarious that the only people saying these changes are bad for the buyer are agents. The same agents who have been benefiting financially for decades off the backs of these outrageous commission rates.
Ok. Walk a mile in our shoes then tell me how you feel about our jobs.
In Europe, the standard rate for an RE agent is 1%.
Study your history, if you did, you would understand why the model was the way it was and how what's happening now is just going back to a prior time. When the lawsuits come again and they will it will probably change back. But hopefully the industry will implode fully before then.
@@JackieBaker I was a licensed agent in my State. Was not a difficult job. As they say if you can’t get a job, you can always become a real estate agent. One of the lowest education required jobs in the US. That’s why there are close to 2 million licensed agents in US.
And drive 2024 cadillacs to do what? I drive my own car to each house. ( can escape quicker)
I've never needed a realtor. Waste of money!
I negotiated to 5% seven years ago with my agent, which I still thought was ridiculous. 3% is more than sufficient. This change should’ve happened a decade ago.
Everything is on the internet. There fee should be 1%-2%. RE agents will go the way of travel agents. Remember concert ticket salesman? You would have to call or drive to their office to buy concert tickets. Gone! All on the internet. Most of these agents don’t see the writing on the wall (computer screen) and are scrambling to justify their outrageous fees.
@@jaccole Never hire a buyer's agent. That's a big savings right there.
I will gladly pay my buyer's agent $12,500 when I am about to commit a half of million dollars plus interest on a deal if he/she refers me to good inspectors and title insurance and negotiates so that I can back out of the deal if the foundation is found to be cracked or the sewer line is about to implode or has unpermitted construction. Obviously, someone who does not want to pay for services provided by agents does not have a clue about how much money and disruption repairs require.
Thank you!
I do not want strangers coming in and out of my house without a licensed realtor accompanying them. It’s a security concern. It’s a liability concern. I don’t want someone looking for a payday to steal from my house, place hidden cameras in order to exploit or blackmail, or conveniently trip and fall and sue me/homeowners insurance. Your realtor is much more than just a listing agent and a contract negotiator.
Lol none of that is the buyers agents doing you have inspections for all that, and you pay for it. Buyers agents are generally a scam in my opinion I bought my first home at 25 realtors are highly over paid for how easy their job is.
Your buyers agent will refer you to THAT inspector that walks through the house with closed eyes so you can close on the deal real quick so the buyers agent can get his $12,500 real quick so he can pay his past due bills. It’s an emergency for most buyers agents, they can’t waste any time waiting on closing or looking for another house!
@@torsten6777 you nailed it
We wouldn’t be here if commissions weren’t so damn high in the first place 5-7% is ridiculous if you think about it- it eats up way to much of someone’s equity in these times where housing is more expensive than ever
When I bought my first house the realtor that showed me the listing and property didn't do anything when it came to my negotiation. They also suggested I use their inspector. Those two were in bed together, so there is no way that the inspector was going to hold up that sale. To this day, I have no clue what they did for me. It's all a scam. Why do I need to be on one listing vs. another? What does it do for me?
I'm seeing prices drop is cda, idaho. I'm watch homes drop in price and inventory sky rocketing! Just saying. My tax assessment dropped $40K from 420 to 380.
Ohhh, the tears of unfathomable sadness! Keep crying Jackie.
Yeah, no tears here. I'll be just fine.
Chuckle, and no way. An agent commission was always negotiable. I bought and sold several of my houses without the services of an agent and saved both my buyer and myself thousands. All an agent does is bring a buyer and seller together (I took the agent classes both in PA. and Florida). It is easy to advertise a property today and an attorney can settle the paperwork. I met several agents who rely on the RPR and know next to know next to nothing about construction and upgrades. I advertised a 1/2 acre lot last year and a buyer's agent called me saying he had a buyer. OK, I paid him a 2% commission and got full fair market asking price. I doubt if he had 4 hours time invested.
Good for you. It was ALWAYS negotiable but you believe whatever you want. Anybody can and has the right to sell their own house.
@JackieBaker don't go crazy talking to the uninformed
Nonsense. These agents have run roughshod on sellers for far too long. They did collude without question. This is overdue
She glossed right over that didn't she?
Glossed over what?
The people who will benefit the most are lawyers bcz there will be a sh!t load of lawsuits: buyers who didnt know what they were doing with no one advocating for them; listing agents writing one sided contracts bcz thats their obligation to look out for sellers interest, not the buyers interest. Overall the market will get more less-transparent and ignorant transactions. Anyone who thinks the prices will go down are delusional. E&O insurance will go up for realtors. MLS wont allow non realtors to tour a house for fear of squaters and liability. I imagine a whole new exchange outside mls will pop up showing houses whose sellers who will pay a buyers commission. This will be subscription only service.
In the end, a lot of the small realtors will drop out and the bigger, more experience will stay and it will go back to model closer to the one we have now, but i bet it will be more expensive for everyone.
Real estate agents have little to no liability in the transaction. They are basically well-dressed paper pushers with very little education. Look up your State’s requirements. That’s why you hire a RE attorney to walk you through the process. It’s not that difficult. Real estates agents do not sell homes, they sell themselves or what people think is the future potential for the home. I know what I am talking about, was licensed in my State and just sold our 7th home For Sale By Owner. Believe me it is not difficult. RE agents want you to think it is.
A buyers agent…?… sure… if you have zero experience…. But flat fee…
A sellers agent….?…absolutely un necessary…. I want… $ xxx bux for my property…
You wanna buy it… I guaranty that the title is….x…. And the condition of the house… is Y…
Get your own title agent
Get your own inspector
Get your own closing title company…
Get your own wallpaper, paint and granite counter tops.
I’m walking out the door with $xxxx bux…. And we just reduced your buy price by $25000.
I hired an agent to locate and find the home were looking for. All they did was send us a link to listings they could make money off of while at the same time overlooking properties that may have worked out very well for us because there was no money in it for them. I didn't know this and am now very pissed off about it. For the money you agents make and what you provide is an absolute joke.
When you go to a Toyota dealer, the sales person is very likely to steer you towards a Toyota. Just so you are aware of that now too. They probably won't drive you over to the Honda dealership....
To be honest 3% it is a lot so everyone lately was a realtor, this commission shouldn't be based on the price of the property more on the hours you dedicate!! most realtors won't do much
Ok then. If you think so.
You think re agents make a lot go hire a wedding photographer. They make more than lawyers and surgeons. Every thing in life is a money grab and everyone is running their own scam
There are so many misleading statements in this video, including the assumption that the buyer's agent will look out for the best interest of the buyer. They are very much aligned with the seller's agent in aiming for the highest price possible and closing the deal as quickly as possible. Anyone who believes that the buyer's agent looks out for the buyers best interest is living in la-la land.
Sorry you feel that way. BUT realtors have a fudiciary responsibility to their clients whether buying or selling. The media has painted Realtors in such a bad light since this settlement came about.
They do have he fiduciary duty to their clients but the fiduciary duty doesn't ask them to negotiate the lowest price for their client. I am here specifically talking about the buyers agent. Buyers agents want speed of execution and they want the highest price which mean highest possible commission. Period.@@JackieBaker
@@JackieBaker If an agent tried to persuade me of his or her integrity and get my business by trotting out that old 'fiduciary responsibility' line and then condescended to explain the term to me, I would show him or her the door in short order. The 'fiduciary responsibility' line is not a magic shield. It is about as effective as claiming murders and rapes don't occur because there are laws against rape and murder. Lawyers, doctors, and accountants get struck off their professional registers every day for misconduct. Those professions are also subject to ethical codes of conduct and are much harder earned than licensed realtor credentials. Note the penalty only comes after the damage is done and doesn't really help the injured party (buyer or seller or both) unless you consider the reputation of the profession to be the injured party here which I most assuredly don't.
I suspect it is more accurate to say the settlement came about (in part) due to the conduct of a sufficient number of unscrupulous realtors. If the misconduct didn't occur, the media couldn't report it so the media can't be blamed here for trashing the reputation of the profession. It was in the buyer's and seller's agent's financial interest that a real estate transaction completed and that it completed at the highest possible price since they were compensated on a percentage of the sale value. That's motivation enough for collusion between agents and others in the industry. So what if a buyer or seller or both got screwed over so long as the transaction happened, right? Agent reputation doesn't really matter since few residential buyers and sellers are back in the market month after month to call out the bad realtors when encountered again. Your content is great and you strike me as trustworthy. However, in many smaller markets I'm sure the successful agents and home inspectors all know each other and I'm sure in your own market you know some colleagues that are ethical and others that aren't. There are bad apples in every barrel and dropping the term 'fiduciary responsibility' into the conversation doesn't change that. Great channel, though. Subscribed.
@@tcs9998And she knows your 1000% correct lol
@@rbtheballer Yes she does. Unfortunately many people that watches this video and others believe the bs and that’s very sad.
We bought our home in 2017 from seller. Never used a realtor and it saved us thousands. Didn't realize how cheap it was to buy and sell a home in Indiana.
So much greed. Uk is about 1.5-2%. We are the only country that gets stuck paying 6% for showing a house! My 2 daughters are real estate agents and my husband did it for many years. Buyer just put in your offer of what you think home is worth. If they don't except then move on. Prices gone up with 0 to show for it. No work done. It's outrageous and I am so glad they have to pay back money they took.
So wait….you have family that are agents and you’re glad about this lawsuit?
@@JackieBaker Yes it's my personal opinion. I've had a few arguments with my daughter when looking for a house because I tell her what I would offer and she would say you can't do that. I said I can do whatever I want. It's my money, I can offer what I think it's worth so take it or leave it situation. I don't need to buy that house I'm in no rush, so we could never work together My husband who has done real estate in usa totally agrees with me about this country being greedy. He is from UK and said they never do that in any other country but America.
@@Brenda0531don't lie. You are greedy. Biden 2024
Wait till people realize they don't need the listing agent. Things could be a flip flop of how u think. Zillow will no longer be able to make money off buyer leads. They're going to change their business model. I bet they come up with a cheap/easy way to list your home. They already do a lot of the work realtors used to. "Come advertise the house here", "Here's your comps", "here's a mortgage person that works with us", "here's an inspector that works with us". Everyone on the site will be rated like yelp does.
You might be able to easily list a home yourself and a buyer hires someone to help them. Most people don't want to work one on one as buyers and sellers. But, All there needs to be is one agent or facilitator in the middle. Not two.
Who knows how this all will pan out
Would not be surprised if Zillow does in fact change their model and do that.
I sold my car on the Autotrader Private Seller Exchange (PSX). It was an interesting experience.
It could very well be modeled into housing, with a few added steps.
We use a local company who has three tiers of fees, depending on how much assistance you need. They list on Zillow, Redfin and Realtor for 6 mos for $200-$400. They do require to list a Buyer’s agent fee. They also have all the PDF’s of P&S contracts, Disclosures, etc. We did 1.5% when we sold our home last month, but would do 1% if I do it in the future. Buyer’s agent was not worth the 1.5% ($8250). Actually it’s about time Buyers pay for their own agents who represent them. Do divorce attorneys charge the opposite party for their fees? No.
The same people crying about sales commission will be the same ones crying that tech giants took over re
I did that. I bought a house with no realtor. Seller had no realtor. I paid a realtor, on the side, to guide me, a small fee. She agreed FL uses title companies
Thanks so much for this information!!
The more we buyers/sellers know the better we are prepared in these situations!
Glad it was helpful!
Why doesn’t someone point out that if you sell now and pay both sides of the commission and then you wait a few months to buy, you may have to pay a buyer’s agent commission again therefore paying double buyers agent commission! Do you think that’s fair? I sold several years ago and paid my seller’s agent 1.5%! You don’t need to pay 2.5 or even 2% but none of the agents are talking about that…more of what they have been doing??
Just put a nice "for sale" sign in the yard. Many houses being built behind me, so a future buyer will want to see mine, it's ready, instead of the future buyer waiting 3 months for construction to finish
In my opinion, I could be wrong, there is a conflict of interest when it comes to buyers agent as the commission is tied to the purchase price. I dont see how a buyers agent going to help the buyer except looking at the contract which buyer himself can do in todays world. I would go through sellers agent and get a better pricing if I am a buyer.
You raise a good point. But Dual Agency is not a good scenario at all. One agent representing both buyer and seller will not lead to better pricing. Remember, the listing agent works for the seller. They are going to do everything for the seller to get the best price.
@@JackieBaker
Not if the seller’s agent is paid a flat fee.
@@EstherLion91 Get the seller's partner (in the same team) to represent you. So yes, go through the sellers agent. Only shame is that buyers should have access to the prices of homes and what they sold for as well.
Also, get familiar with the area you want to buy, chances are a buyer will know the area better than a seller's agent (most of the time)
Always get the home with legal warranty unless you are renovating the whole thing, then who cares.
Buy with condition that the home must be inspected
Actually, no, that’s not how it works. The sellers agent has a fiduciary duty to the seller, not you. And how is the price better for you when the selling agent still has to get paid? The seller is looking for the most profit possible. Why would they lower the price for you when someone else can come and pay asking, or higher, like they have been?
@@JackieBaker The Buyers agent wants as much for the property too. They want as big of a commission as possible. Back in the day, I’m old. Our local Broker was the Listing agent, Showing agent, Selling agent and Buyers agent all for 5% and they actually had to take days to go to local City Halls to find comps for pricing. Now that is all done on the internet, Now they split the work up, but each still want a full month’s pay for one or two transactions. Your business is going the way of travel agents and concert ticket salesmen. You are dealing with a better educated public that has this new thing called the internet. Once AI takes a bigger hold, it will get even easier. Better figure out how to change your work model or get out of the way. The glory days are coming to a close. You all are trying to hold on to an old business model and justify taking $30k, $40k, $50,000 from someone’s hard earned equity.
I once worked with a seller agent who literally teamed up with the buyer agent to shit-talk my house to convince me to keep cutting selling price. Helping me negotiate? Fighting for my best interest? Hell no! Because what is 3% of 50k reduction to her? They don’t get paid until the house is sold, and you’ll be shocked how low some agents could stoop towards that end.
There are so many predatory practices in this business and there is little transparency. The agents, inspectors, staging people… could all be working in cahoots. I’m sure there are still honest and ethical professionals out there. But money corrupts easily, and real estate is a big-money business.
Impressive and bang on Jackie! thanks for sharing your expertise!
Thanks for watching!
You're forgetting the sky high fees mortgage brokers charge. Closing costs and appraisal.
In my area some were are already requiring the difference so that the made a guaranteed 3%.
Then it sounds like you’d be better off paying cash. Those are the fees they to lend you money. That’s not the realtors problem. We only care that you have it. Not how you got it. But still, as a realtor, we have to deal with them, too. Shouldn’t we get paid for our work? It’s not like it was coming out of your pocket as a buyer.
My realtor told me when they were repairs to do she said highest and best
that's going to be even worse towards the sellers, because the buyers not going to be happy about it and will be less buyers in the market,
Confusing --- nobody knows how this will play out in the real-estate market, and it's completely unclear and confusing for buyers......could cause buyers to postpone buying till new norms are actually established about buyer commission amounts.
So … someone pays 10k or a lot more to submit an offer and sometimes an above asking price offer!…. Ive bought and sold several homes over the past 20 years and i don’t see a the value of 10k 20k or a lot more for these services …. Severely over priced themselves and now we are seeing the correction….
But some see the value. Thanks for sharing your opinion!
The concern that this ruling will negatively impact home buyers might be an oversimplification. It makes me wonder if this vlog was made because realtors are now challenged to make as much before the ruling then after. Having bought and sold three homes myself, I've questioned the necessity of real estate agents. Perhaps before the internet, tasks like legal research and market analysis were more challenging without an agent's help. With online resources and the rise of AI tools, legal matters and local market research are now more accessible to buyers, potentially reducing the reliance on realtors.
Realtors do a lot more then just market analysis.
We do a lot more. We can spend months searching the MLS for listings. We have to drive people around for the day, from house to house, on our own gas. We write up the contracts to cover everyone’s butt. Were the ones dealing with escrow, the loan officer, the appraiser, the home inspectors, and any other surprises that come up while you’re at work. And if you’re buying, you wouldn’t have had to pay for our services. And trust me, a seller won’t go lower just because you don’t have an agent. Like anyone else, they want as much profit as possible, too.
@@arios1977 Write up contracts (fill in the blanks) that were written by the legal team, not by a real estate broker. Dealing with home appraisal, inspectors, escrow? Just a go between passing on info to the Seller or Buyer. Nothing the seller and buyer could not communicate themselves. “And if you are buying, you won’t have had to pay for our services “. Correct because the Seller is paying for services that they get nothing back for, except for loss of hard earned equity in their home. Stop trying to justify commissions equal to more than a surgeon would charge with 12 years of education and someone’s life in their hands. Please tell the viewers here how many hours of education you needed to obtain your RE license?
That depends. Working with agents who embrace the change, or by going directly to the listing agent, buyers will have a better chance of getting their offers accepted than they would have working with agents who learn on the job.
Brokers/agents in WA State do not have a fiduciary relationship with buyers or sellers.
Finally someone who understands that’s it the buyer who has been paying the commissions all along. But I guess it doesn’t matter.
Not really, the seller just gets to keep more in their pocket - loss of representation to buyer
So for the buyer it’s a bad deal then paying 5-6%.
@@torsten6777
Could be depending on age of house and state/location
I've sold my own homes for years and offered 2.5% to the buyers agent. Realtors are making a big deal of this. Now they can't make half the commission for just getting listings. Sell the house get the commission.
Cry me a river… the NAR is now and has formerly been a sales agent organization..
They work “with” buyers, but work “for” sellers.
This is a fiduciary distinction.
The sales agent makes more money from uninformed / unrepresented buyers.
If you go to court, you don’t expect the other litigants lawyer to work for you… this is why exclusive buyers agents work for the buyer client in the first place.
It is the sellers that initiated the lawsuits. The NAR was working against sellers. That is the case. Settled.
So no, the NAR does not work to represent the sellers.
People somehow think realtors are gonna start working for free
That's not happening.
I don’t think that’s really what’s going on. I think there just not enough people who think they are going to need to buy a house. I personally am in my forever home, I don’t really care. There are to many agents in the US by 100s of thousands. Y’all need to be thinned out. Real estate agent should not be a side hustle or part time work.
No, buyers will just stop using agents.
@@rack9458 I wanna see that happen
@@matthewsmith2362 and everyone s entitled to their opinion
Technology, the buyer, was always the one paying both the seller's commission and the buyer's commission. When the listing agent listed the property on the MLS, the full commission was included in the listing price. When the buyer bought the house, the seller would pay both agents from the proceeds from the sale of the house. If no one bought the house, the seller would have no reason to or no money to pay the commission.
Just sale the house yourself! I did it once and I only paid 2% commissions to the buyer realtor.
I did that too. And for me….never again. It is like not having insurance. You may never need it and save a ton of money on premiums but if something goes wrong, it could be a disaster. For instance, how can you verify your buyer qualifies for a loan? By looking at their “pre-approved” letter? What if something has changed since that “pre-approved” letter? Can they get the insurance (think Florida)? What happens if you get sued later because you naively failed to disclose something in the house that is required by law to disclose? These are just a tiny sampling of problems you can run into by winging it on your own.
I will wing it myself to save 15,000 dollars. Did it 4 times..no issues.
I sold my first home by myself in 1984 (way before the Internet). Typed the contract into a word processor and left everything about realtors out of it. When I showed the house, I had more realtors than buyers come by trying to convince me that what I was doing was dangerous.
Got a buyer in a couple of weeks and pre-qualified them. They already had their money lined up so we picked a settlement agent. At closing, the settlement attorney started by saying, "Before we begin, I want to congratulate you. You did a great job on this."
And as for the amount of work that a Buyer Agent does: Everyone who has used a BA has seen how much they do so it ain't a big secret.
how terrible for both buyers and sellers, but especially for fha and va buyers. smh
great job with this information. I have always been able to offer options to sellers regarding the commission. Do they want full service or just an agent to put their property in the mls or anything in between.
Disagree. It has never been easier with software and technology to close the gap and get buyers and sellers together. If you think the paperwork and process is worth 3% or more you are old and should retire.
Doing mortgage lending for decades, I would say there are quite a few assumptions in the video.
We will see.
Yup. Only time will tell.
And mortgage lenders you are next for attorney's to sue for the fees you charge and commissions you make on the life of the loan.
@@joehollisremax , actually they are the most highly regulated industries when it comes to fees and documentation. A majority of the fees aren’t even charged by the mortgage company themselves.
And the commission from agents will shortly get changed. Curious how that will go.
It should be a flat fee, the amount of work does not really change on the price of the house so why is it a % base. I get negotiating and setting up with inspectors going over the house preparing the documents ect. but just because house prices have skyrocketed it has not changed the work involved so why should people pay more.
If you have dinner at Denny's and then have a 200 dollar dinner, the tip should be 25 dollars at both places?
@@markgoodwin183 Let’s not go down that road. I know wait staff works hard, but what is the difference from walking a Denny’s meal or a $200 meal to the table? I always do the 20%, but ask myself why.
Had my first house built directly with a local builder in 1991. Small market. No agents. Second home bought directly from the owner. No agents. I understand this is not for everyone, and I knew the markets and areas I bought in well. But saved a ton.
Now we are looking at retirement and moving south. I will be happy to pay an agent as I will not be familiar with the market down there. Just depends on your knowledge and experience.
First time homebuyers need all kinds of assistance to get through the process and not get taken advantage of by unscrupulous sellers or their agents.
That’s why they can hire an RE attorney to review contracts and negotiations for a lot less. They would pay only for what they need, a la cart. Just helped a relative sell their home for $500k with no realtors, just an attorney . Attorney fee was $150 for filing deed. Saved them 6% commission ($30,000). That money was very helpful for this 90 year old relative.
So on top of a down payment/closing cost fees the buyer is responsible for paying for the services of a realtor now?
Or does the seller get more money because the don't pay 6 percent?
Plus closing costs.
When I purchased my first home in 2018 in CA it didn’t sit right with me that I wasn’t paying my buyers agent tbh.
I wondered how they were getting paid, how much they were getting paid, what deals might or might not be made with a sellers agent on the side w/o my knowledge, how hard they were going to work for me if they were working for percentages for other buyers on larger purchases….etc etc
I have always been a firm believer of you get what you pay for and I wanted to know I was getting what I needed and wanted out of my agent when selecting them. While the seller paying them was a financial relief in a way, not being able to pay my buyer agent from my own pocket was a concern for me and brought on a new/different level of stress and worry.
If one goes to foresal by owner instead having a real estate, would it not cut out your dice's income?
Because we can always get somebody to do the paperwork. Like a public attorney
Buyer purchase from seller directly.............problem solved.
We can barely come with the down payment and closing cost. And now they want us to pay additional $10,000+ to our agents also at closing?
Seller should pay only sellers agent not to buyers agent in my opinion. Buyer agent put the offer based on the number given by the buyer. They are just a via media or a messenger between buyer and seller’s agent so they should be hired by buyers if a buyer really needs for hourly basis, should be paid for the hours actually worked. Whoever wants to buy they are going to buy with an agent or without an agent, or pay a flat fee
I think this is fair. When I sold my home, had to pay listing agent and buyers agent commission. Hefty fee!
Buyers and handholding when I was selling real estate buyer brokerage wasn’t a thing. That started to change in the late mid 90s buyers got through somehow for the hundred or so years before that without representation in terms of an agent in most cases I don’t know what changed other than you just changed and who pays the fee.
The only change was the percentage paid to realtors. Instead of 5-6% which was ridiculous.. to 2-2.5%
Why do we need agent if they do zero
5% or more realtor commissions are and always have been a rip off.
It’s pretty much brokers, not agents benefitting from high fees. They get 3% for what? Most expenses are borne by agent.
Not great when all these agents say it was "negotiable". it was not. That was the lawsuit. You Lost.
These NAR agents that keep with this propoganda of lies should be sued personally. Or fired.
Could you imagine if a company lost a lawsuit and its employees went public with the continued wrong stance?
NAR and brokers should drop these agents.
I've always gone directly to the listing agent. In very competitive deals, I've always won...😂
Same here! They always say my offer is the strongest one when they know they can collect double commission!
Ok and then they are negotiating against you because they're working for the seller only.
I don’t know why this rule is something new because like you said commission was always negotiable. We sold a vacant property and we did not pay the buyers agent fee, the buyer paid it.
Thank you for sharing that!
As a home inspector I have seen many many realtors just want the deal to go through no matter what. We write up the issues with the house as they follow behind us downplaying all the issues found and pretend all repairs cost very little. They recommend sellers do not have a listing inspection and to just wait and see what comes up in the buyers inspection. Every house should have an inspection performed at the listing so buyer can get an idea of the quality of house before they waste time driving out to look at a pile of junk. This is all done to as a method to sell people junk verses dealing with it. You can take your perceived value and shove you know where.
I don't think I would use agents anymore if this passes unless I was a first time buyer or seller OR if I had to sell from another state. The last land I sold, my realtor was invaluable! I am in texas, land was in north carolina. I couldn't have done it without her and she worked so hard. Got my land sold in 6 days for 11 grand over asking. THat might not seem like much in some markets, but 11 grand over asking is huge in that part of NC. I had to pay her 10 percent commission. That was new to me. I didn't realize most realtors charge double for vacant land. But, again, I couldn't have done it without her.
Realtors should be on a flat rate like everyone else. They don't do any more work selling a million dollar home verses a 100k home. Their flat rate should be around $1000.00 plus expenses.
6% isn’t the fee. The fee can be negotiated. For instance is your agent going to use a lock box? Or will they be there and have showings? Pictures going out to the internet? Quality? An agent using a lockbox using pictures from their phone DOES NOT Deserve 6%! Pay for what!?
The fee was what you set in the MLS and was not negotiable for the seller individually after. Thus many were 6%. As you stated, this was over inflated. You should have been on the prosecutor team on the case, as you outlined it nearly perfectly why it was unjust.
To buy and sell house, no need for agent
Only until 50 yrs. ago were there buyer's agents. Everyone went to the listing agent. Everyone. This according to a Boston realtor from the 60's. This is the future. No BUYER's agents. They are not necessary. People will go to listing agents and then eventually people will FSBO and go to the title companies and fill out their own contracts. Easy peasy and no interference from the vulture realtors.
First house we bought the buyer agent told us to go look at the homes first and if we wanted to look inside we could schedule a weekend to go with her and see multiple houses say on a Saturday. They are really not that helpful
So I assume that buyer agent didn’t do anything else for you?
She dressed kind of skimpy, did appreciate that lol😂
oh boy 😮
We will have the seller pay for BOTH the buyer and seller. And try to buyer from the sellers agent only. Dual agency is better. Also, negotiate down to 2% OR LESS TOTAL COMMISSION.
Right and then as a buyer you’re not being fully represented on the deal
I read its expected to go into effect by mid-August (Aug 17th).
Wow, I just spoke to a realtor that said I as the seller would pay the 6% fee...but this is saying the buyer also pays. I don't know how my realtor got paid because I did the down payment and the rest of the cost was the difference. Tbh I dont know if I got scammed. So based on what happen with me I believe the seller indeed paid my realtor this was back in 2014. So with these new rules how does a buyer's realtor make money... ? The realtor advise me that the buyer's realtor will skip any property that doesnt have the 3% from a seller.
Most of the time the seller becomes the buyer so the seller isn't saving because they almost always buy a home more expensive than the one they sold.
Another caveat is the buyer is funding the whole transaction b/c essentially the buyer pays all of the money for the home so looking at it from this perspective you can see the buyer pays all of the fees.
Let's hope all of the sellers and their family who files a lawsuit, never buy a house again in their life.
😂
That’s one way to look at it.
I believe the commission change will now be in August this year.
Purchased a home with an agent. After the sale, left me on my own, without even a title. "Just wire here," "Sign here" ...... Like what am I paying you for. And worst of it was when i asked for things to get utilities setup (Like the title and PTA) he says "IDK, here contact the seller yourself." He took 2 weeks to reply. When I contact the seller, she was so nice, emailed me everything in 15 min. Imagine buying a house and not being able to setup basic utilities or plumbing because your agent moved on to another client.
PS, my dad, who is a lifelong real estate investor, told me never to get an agent when starting out, they dont know anything. Pro tip, take a repair man with you. Thats what I do now, best pro tip. $100 and any repair man would gladly go with you for 20-30 min look around. Or you can send them tons of pics, also works.
Home buyers were never represented!
All the agents (buyer’s+seller’s) want is to close asap no matter what so that they can collect their commissions.
They were. Maybe some felt that way because they had some shady agents and that's unfortunate. Not every realtor is bad. Just saying.
@@JackieBaker most agent are very good, but legally they always represent the seller because that’s is who pays everyone at closing.
Home inspection is not done by buyer agent. You don't really need an agent to represent you when you buy.
@@ramiassaf1980 you do if you are a first time buyer or if you are not familiar or new to that market. There is a service there the question is how much is it worth.
I feel that buyers should pay according to how many properties they want to see. These folks who want to see 30 houses or more should pay for the agents time regardless if they buy or not
I was honestly wondering if it ends up being time and materials. Essentially similar to what you said. You want to see 5 homes then you got to pay 5 times blank number. You buy nothing that's your problem. Glad I'm not a buyer or realtor.
...and it will be $5 if you want to look at cars on my car lot too! Wasting my sales person time.
@@hvaball150 you should charge more than $5 for that lol
Sold my house without agent
This is total BS !! As the WSJ has said, the “Real Estate Cartel is over.” There is very little work product involved as a buyer’s agent. How can even 2% justifiable? In 2 years the buyer’s agent fee will be set like a comodity service. My wife and I have owned 5 primary residences. I was constantly lied to about the ability to negotiate fees. The residential Real Estate industry is getting what they deserve.
This entire shake up was part of the institutional investor's plan to take more control over the real estate industry.
Buyers agent is never really working for the buyer. Let's face it their eye is on the prize. Especially if they have to split it with the seller. There's nothing out there that is fair for the buyer.
Being in this business as long as I have i will tell you being a buyers agent is way harder than being a listing agent. Buyers have no loyalty. You can spend years working with a buyer driving them around showing houses and then they decide to not buy or buy a home at an open house with another agent. All that time spent and you get 0.
@@JackieBaker
I've actually seen that with one of my daughter's clients. She drove him around everywhere and he didn't want to pay the price of the home she was showing him. She would get a phone call from him if he wanted to see a house that he may have seen online. In the end ended up buying something in the area he wanted, but with another realtor. My daughter ended up leaving last year and she's doing office work now. I think it's more reliable. Real estate nowadays is almost like a side hustle like hairdressing. I think as a hairdresser myself, you don't really make much money unless you own the place. Same with real estate. The only thing with real estate is those ridiculous fees they make you pay.
So have the unrepresented home buyer consent to dual agency and a buyer agency agreement at 2.5 percent WAALAA now your back to 5 percent.
If I buy a house and don't have an agent represent me does that mean I get a 3 percent discount now on the total closing cost?,and the seller only pays 3 percent?
Lmao
Of course you can negotiate and reduce it with 3%
NO.. anybody that thinks that sellers are going to sell their house for 3% less is delusional
As a House Flipper i welcome this
I bet you do.
They should just cap the commission.
In Britain only the seller has an agent. There’s never been a buyer’s agent except for super rich, usually foreign, buyers, who might hire an expert to draw up a shortlist for them. We use lawyers to do the contracts and, most importantly, to do the searches, you need to be sure in an ancient country there aren’t extant laws from centuries ago affecting your property, or that the path by your house isn’t legal, it’s just a tradition, or that the local medieval church can levy your home for a donation, so these things are the subject of specialist searches. I couldn’t understand what the buyer’s agent really did in America, though I had a charming one, but frankly I could have found the house myself online and by asking and driving around.
Does the buyer really need representation by a real estate agent? The buyer either has the money or not. A smart buyer will hire an attorney to help facilitate a home purchase and go over the contract. No need for real estate agent.
Buyers can negotiate the price of a home on their own, sellers agents either agree or not but there’s still no need for a buyers agent in the capacity in which they were used for.
This is innovation due to technology the industry is changing for the better.
What a mess !!!!
Yup. It'll be interesting to see how it all shakes out.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Aileen Gertrude Tippy’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Aileen.
It’s just that a real estate agent is not worth more than $20,000!
Realtors are really screaming and moaning about this. Buyers often don't even need an agent as much as sellers do. Bought my first house without an agent.
Good for you!👍
We bought our house 35 years ago. The buying agent got 3% and so did the selling agent. End of.
By only from For Sale By Owner and hire an attorney for closing...look for forms to follow.
In TX, hire a lawyer who is authorised to act for you cheaper than a normal broker.
It started with price fixing….
It won’t cost me anything MORE… because …I learned a special word…NO.
So I sell my house and pay my agent, turn around and buy a new house and pay my agent, seems like nothing has change!