Redfin CEO on NAR settlement: People should have a voice in how much a real estate agent gets paid
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- Опубліковано 15 чер 2024
- CNBC’s Diana Olick and Redfin CEO Glenn Kelman joins 'Squawk Box' to discuss the legal settlement by the National Association of Realtors, the impact of the settlement on the home buying process, and more.
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
The government will have no choice but to print more notes and lower interest rates.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
Finding financial advisors like Amber Angelyn O'malley who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
everything is going to stay the same.. except some buyers might not have representation which would be a disaster for first time home buyers especially,.... all this settlement does is more paperwork for the agents and forcing the buyer agent to sign an exclusive agreement with a buyer (which as of right now that agreement with a buyer is optional) Prices still gonna go up... no one is gonna save money,,, maybe the sellers a bit,,, the only ones winning here are the attorneys
When we first bought our house, our buyers agent did a lot of work with us showed us lots of homes and explained the process. I believe the buyers agents do more for their clients than the sellers agents. The sellers agents just list the house and wait to collect the money at the closing table.
Amen!
Depends. When we bought out first home, we found a new home ourselves through Zillow. Our agent was just there to sign documents and get commission.
@@deeputhomas3169yeah this is rare. Im glad it went easy for your process.
Sellers agent has to price the house, and get people in, worth 1.5% or 2% fee.
@@info781 I priced my home, because nobody knows the market in the area, like I do. I did all the leg work, and got all the comps. What do you mean by "get people in". They don't do that. They rely on the MLS listing to "get people in". I feel like, when my house sells, I should get the commission paid to ME!!!
NAR has come out to clear the record, that all fees are negotiable and always have been, paraphrasing Henry Ford to say you can have any fee you like as long as it's high.
Not good if the Seller's agent also represent the buyer too. Conflict of interest. Buyer has to get their own agent .
LOL same agent for seller and buyer is like having one divorce attorney to represent the couple.
@@jjman533 ha,ha,ha. That 's a good one but true.
The agent always represents the buyer because that's where the money comes from. 10k down on the listing push a deal is little off the commission. Good riddance to these grifters.
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
Interesting perspective! Specially when coming from a discount on-line brokerage such as Redfin. Time will tell
Especially, since Redfin still isn't profitable, doesn't allow any Google reviews online but has awful reviews on BBB and Consumer Complaints AND was named in a copycat lawsuit. 🤔
I've sold several homes FSBO and I do my research on market price, staged the home properly, and have all day open house's Saturday and Sunday and have always sold them within two weeks, this was in 2001, 2003, and 2008. The key was to price it about in the middle of what a 6% commission would take so the buyer got it for 3% under market, and I saved 3% commission for doing a little selling work myself. Used basic offer agreements for office depot and the title company does the legal work and escrow.
Good riddance to these grifters and the rip off 6%. I have bought and sold lots of properties and never had a real-estate agent do better than what the market already was. It should be flat fee listing and flat fee for closing service....just like buying a used car.
Unfortunately, most buyers are not super repeat buyers like yourself. Most buyers still believe that they need to put 20% down. Also, you are not a buyers agent. You don't spend 10,000 a month on Zillow leads etc. You haven't shown 30 plus houses for a buyer to ghost you. You think these clients just show up at agents doors. That's not how it works. So if an agent takes an unqualified person, connects that person with a lender, helps them build credit etc to become qualified, shows them your property, BRING YOU A BAG FULL OF CASH, why is it an issue if that agent gets paid?
How disappointing to hear that from Redfin! Most Redfin agents are buyers agents so you’ll get rid of them no sweat?
Well, sellers don’t need listing agents. Any seller can do for sale by owner which most seller want and love to do and they’ll pay the commission to whomever brings the buyer. Correct?
I would say that is a fair argument.
He was not clear on the exact commission charges. Do you have to use Redfin escrow and title in order ti get the low commission fee? What are the closing fees for their escrow services, etc.? Are these closing fees padded to make up for the loss in commission?
Larger question imo is why pay Redfin 1% to list? That's $5k on a $500k house. Here in Phoenix there are businesses that will list your house for $199. Your name and contact info goes into the listing so you handle offers, showings, etc.. which I like to handle. They'll help hire other stuff if you want like a sign, lock box, pics, etc... but all that is easy to find online. Getting a Title company to handle escrow is pretty straight forward imo.
@@MrWaterbugdesigninteresting. Do you carry, or do these companies offer some kind of insurance to protect against buyers suing you?
@@gummisnoodableOf course not, he doesn't have E&O insurance. 😂
Why are you still use percentages for commissions? It should be a flat rate fee like 1k, 2k etc
News flash, this is already a thing. Google buyer commission rebate
@@superjock28no need for rebate nonsense now,
SIMPLE. Because that's nonsense. It doesn't work. Nobody charges flat rates for services that are customized. That's ridiculous.
@@catmini72 Well it will work itself out, but since people can do many things themself via web sites, 6% is history. Personally I see sellers agent getting 2% and buyers agents getting 1% or flat fee if the buyer picked out the house and likes the price. People know how to use a web site to find a house.
@catmini72 your telling me you never had a 200k house that took more work to sell vs a 500k house? Yet commission is double
You never needed an agent period. The commission was always negotiable and seller can still offer a commission to a buyers agent if they want, it just won’t be posted on the MLS
Of course you need a compass when making the single most significant investment of your life. Or, just go be stupid.
Anybody that hires Redfin gets short changed in their representation.
Basically, the MLS will not be allowed to publish the Buyer's compensation on The MLS, who also give that data to Online RE sites like Zillow and Redfin, who are Basically discount brokerages and do less work for Less money!? But if a Buyer or Seller, need professional advice or assistance with a real person that will work in their best interests, they will likely rely on a professional Realtor or Broker to represent them!
These charges are bogus! 😮
All MLS should stop feeding listing data to Zillow & Redfin.
Well that's exactly the way it was. It took lawsuit losses and threats to get the MLS to be open. Having a monopoly worked for a long time, but slowly the public is slowly breaking down the broker monopoly. More to do, but we will get there.
Thank you
You sure have an axe to grind with agents. Did one of them run off with your wife? Or find you hiding some latent defect you were hiding in a house you were flipping? Or did you see a realtors bank statement vs how much you make at Walmart? Get a life
The lawsuit is supposed to lower costs for both buyers and sellers. Logically, homeowners selling a house should factor in the buyer commission portion to lower their property' price. However, I doubt any sellers are willing to lower the price just because they have a choice not to pay the buyer commission. The reason behind this is that the seller aims to get the highest amount of money possible. I don't mean to offend you, but what I'm about to say is simply a fact. @@user-ew6ty3jd2j
@@user-ew6ty3jd2jKeep crying 😂 You are most likely a homosexual
Redfin is smiling for a reason. You get what you pay for. Notice how he doesn't tell you he still offers a commission to a buyer agent?
He also doesn't say they won't let you leave a Google review for them and the reviews you can find on BBB and Consumer Complaints are really, really bad.
Redifin and other real estate tech companies are the reason this is happening. It will absolutely not get cheaper for the consumer. Say goodbye to the community based agent. When he says you should have a voice, that means you pay out of your pocket. They've been trying to change the game for so long, and it hasn't worked for a reason. This guy is full of bull. Best of luck selling your home for top dollar using these ideas.
DIY on buying & selling from now on! Buyer beware!😂
I will pay a buyers agent 1%
Horrible strategy. Good luck with that lol.
Pay flat fee of 3k to listing agent and flat fee of 3k to buyers agent. Win for everyone.
It's amazing that we (buyer/seller) still have to deal with this framework in modern day where everything can be done over the internet with the exception of viewing/inspecting the property. Most of the time, seller will sell AS-IS anyway; they will disclose what the state requires them to disclose. In some cases, buyers are more knowledgeable (plumbing, foundation, roof, etc - except for the paperwork) than some agents. If the sellers want to sell the property themselves, all we need is a flat fee for seller to list on MLS and they can do their own open house themselves and hire real estate lawyer to do the paperwork (way less expensive). Buyers always can search for properties on any MLS, they can go to open house and either hire an agent to submit an offer (pay their own agent fee) or just hire a real estate lawyer like the seller (way less fee). I searched and went to open house to all the properties I bought over the years and the only reason I needed the agent is to submit the paperwork.
This is a random statement to the wise. The listing companies who do those cut-rate fees also give cut-rate service. Remember, they represent the Seller. They cannot give you advice and opinions. They are not going to do all the vital things to protect Buyers. They won’t advise you on all the different home inspections to get, or how to negotiate repairs. They won’t point out flood plain and easements, future planned infrastructure that could impact your new home in 5 years. They won’t negotiate the contract in your best interest, or give advice and opinions on things you wouldn’t think to ask for. They won’t explain and recommend addenda that would protect your interest. They won’t tell you the listing history or anything detrimental about the property. They will not hand hold you through the lending and closing process like a Buyer’s agent will. They represent the seller. Remember that. They represent the seller.
This has nothing to do with agents at all. This is about wealthy and middle class home owners and real estate investors wanting to keep their record all-time high equity at the expense of first-time homebuyers and homebuyers that are not cash heavy. Like everything else in our economy, it serves the upper-middle & wealthy elites.
Redfin can afford to charge so low because their homes are pricey. Certain brokerages don’t have listings sprinkled throughout the city in less desirable areas.. Redfin is all over Philadelphia BUT like some other unnamed real estate brokerages they represent buyers and sellers of a certain tax bracket
What I didn't like about this, is how he said "you're too smart" -- this is exactly WHY buyers need representation- to be educated and informed about all of the aspects, like the time of year and the rate and price that homes sell depending on the time of year- It is way too easy to hide and be sneaky in this industry. To me, this is an opportunity for NAR to educate agents on the importance of TRANSPARENCY
That was a pretty crappy comment wasn't it. A bit patronizing to a female anchor. 🤔
Nothing wrong with offering a buyers agent 1% or maybe a flat fee of $1000 dollars to do the paperwork. 3% was outrageous. We can find the house on the web and make a offer.
Nothing wrong with it? Please... use common sense and you'll see this (1% or flat fee) is the best way NOT to sell your house. Good luck with that - and, no thanks.
@@catmini72 I see. Pay the 6% or your house will not get sold, that is why you lost the lawsuit forcing sellers to pay buyers agents. If I am a seller I don't want to pay a buyers agent. As a seller I don't mind paying 2%. But if I am a buyer and I can find the house on the web and am willing to pay the offer price, I will pay my agent 1%. Welcome to the age of the internet, 25 years late.
As a buyers agent 1K flat fee for all of this?? Sorry friend, you have no clue.
1. Schedule Time To Meet Buyers
2. Prepare Buyers Guide & Presentation
3. Meet Buyers and Discuss Their Goals
4. Explain Buyer & Seller Agency Relationships
5. Discuss Different Types of Financing Options
6. Help Buyers Find a Mortgage Lender
7. Obtain Pre-Approval Letter from Their Lender
8. Explain What You Do For Buyers As A Realtor
9. Provide Overview of Current Market Conditions
10. Explain Your Company’s Value to Buyers
11. Discuss Earnest Money Deposits
12. Explain Home Inspection Process
13. Educate Buyers About Local Neighborhoods
14. Discuss Foreclosures & Short Sales
15. Gather Needs & Wants Of Their Next Home
16. Explain School Districts Effect on Home Values
17. Explain Recording Devices During Showings
18. Learn All Buyer Goals & Make A Plan
19. Create Internal File for Buyers Records
20. Send Buyers Homes Within Their Criteria
21. Start Showing Buyers Home That They Request
22. Schedule & Organize All Showings
23. Gather Showing Instructions for Each Listing
24. Send Showing Schedule to Buyers
25. Show Up Early and Prepare First Showing
26. Look For Possible Repair Issues While Showing
27. Gather Buyer Feedback After Each Showing
28. Update Buyers When New Homes Hit the Market
29. Share Knowledge & Insight About Homes
30. Guide Buyers Through Their Emotional Journey
31. Listen & Learn From Buyers At Each Showing
32. Keep Records of All Showings
33. Update Listing Agents with Buyer’s Feedback
34. Discuss Home Owner’s Associations
35. Estimate Expected Utility Usage Costs
36. Confirm Water Source and Status
37. Discuss Transferable Warranties
38. Explain Property Appraisal Process
39. Discuss Multiple Offer Situations
40. Create Practice Offer To Help Buyers Prepare
41. Provide Updated Housing Market Data to Buyers
42. Inform Buyers of Their Showing Activity Weekly
43. Update Buyers On Any Price Drops
44. Discuss MLS Data With Buyers At Showings
45. Find the Right Home for Buyers
46. Determine Property Inclusions & Exclusions
47. Prepare Sales Contract When Buyers are Ready
48. Educate Buyer’s On Sales Contract Options
49. Determine Need for Lead-Based Paint Disclosure
50. Explain Home Warranty Options
51. Update Buyer’s Pre-Approval Letter
52. Discuss Loan Objection Deadlines
53. Choose a Closing Date
54. Verify Listing Data Is Correct
55. Review Comps With Buyers To Determine Value
56. Prepare & Submit Buyer’s Offer to Listing Agent
57. Negotiate Buyers Offer With Listing Agent
58. Execute A Sales Contract & Disclosures
59. Once Under Contract, Send to Title Company
60. Coordinate Earnest Money Drop Off
61. Deliver Copies to Mortgage Lender
62. Obtain Copy of Sellers Disclosure for Buyers
63. Deliver Copies of Contract/Addendum to Buyers
64. Obtain A Copy of HOA Bylaws
65. Keep Track of Copies for Office File
66. Coordinate Inspections with Buyers
67. Meet Inspector At The Property
68. Review Home Inspection with Buyers
69. Negotiate Inspection Objections
70. Get All Agreed Upon Repair Items in Writing
71. Verify any Existing Lease Agreements
72. Check In With Lender To Verify Loan Status
73. Check on the Appraisal Date
74. Negotiate Any Unsatisfactory Appraisals
75. Coordinate Closing Times & Location
76. Make Sure All Documents Are Fully Signed
77. Verify Title Company Has Everything Needed
78. Remind Buyers to Schedule Utilities
79. Make Sure All Parties Are Notified of Closing Time
80. Solve Any Title Problems Before Closing
81. Receive and Review Closing Documents
82. Review Closing Figures With Buyers
83. Confirm Repairs Have Been Made By Sellers
84. Perform Final Walk-Through with Buyers
85. Resolve Any Last Minute Issues
86. Get CDA Signed By Brokerage
87. Attend Closing with Buyers
88. Provide Home Warranty Paperwork
89. Give Keys and Accessories to Buyers
90. Close Out Buyer’s File Brokerage
@@catmini72 The buyers will be paying for the buyers agent if they want one. Different buyers are going to want different levels of service from their agent.
@@info781You are in for a wake up call. Tell me you don't work with buyers on a daily basis without telling me. If sellers alienate the 9 out of 10 buyers who want to use an agent for representation, they can. Meanwhile, their neighbor who is more motivated is realistic and understands that buyers are already shouldering high interest rates and high prices and has enough equity to bring the deal to the closing table closes on his sale. And, you'll wonder why. OR, your prospective buyers will go to new construction. And, now compensation to the buyer's broker is confidential so you won't even know how to compete with your neighboring properties. 😂
It’s seasonal for sure.
All this is going to do is confuse everyone and complicate transactions going forward. There was a very simple system in place where a broker represented the seller and sold the property and broker got paid a fixed percentage of the sales price. If it was a direct deal, the broker got a 6 or 5 or 4%. If it was cobroked with a buyers broker, the commission was split. It didn’t cost the seller a penny more. It’s now going to be a total zoo.
Simple system for agents. Agent doesn't do their job? Screw you, pay me. They get people to sign a contract so they get a cut no matter how they perform.
I flip homes and have always done FSBO. I tell buyers they can get their earnest money back at any time before close and walk away, no problem. In my listing text I put "3% to buyer or buyer's agent". Simple. Instead of 4 parties in negotiation there's just 2. I see offers without an agent sweet talking me to close.
And yeah, I get less money for my properties...6% less. But my net is the same and my buyers also pay 6% less. To me and my buyers it's a win-win.
@@MrWaterbugdesign yawn 🥱 thanks for sharing. You sound very impressed with yourself
You don't get 6% less and your net amount is NOT the same. Sellers who sell as a FSBO get 16-24% LESS than a home listed and fully marketed by a licensed agent in the MLS. That's the national average. You're doing yourself a disservice by not listing with an agent and putting your home on the open market, in front of as many qualified buyers as possible.
@@MrWaterbugdesign So, what are you complaining about? I can build houses, but not everyone can, so they hire people for their service. You said nothing of any importance. Did you want a pat on the back for selling your own property or something? Congratulations, you did it all by yourself; you’re a big boy now.
@@MrWaterbugdesignYou've benefited from a hot market. We saw all this before in 2007. Hurry up and get all your listings sold. It's going to be a bumpy rest of 2024 and 2025.
Next up we need to go after insurance companies who have been robbing clients REPEATEDLY at a much higher frequency and for much more overall than NAR has been.
He is really making it sound good because Redfin business model is built on buyer commissions. They are really going to have to change their operation and, if they offer 1% listing commission, they will change their fees for mortgage and title so they still make some more money.
Has redfin ever turned a profit?
@@carneragenoNo, not in 10 years. And, they were named in a copycat lawsuit so things aren't looking good for them. They aren't protected/released under the NAR settlement because they are not NAR members. 😂
This news will enable Redfin to capture market share
Have you checked their profitability? He said they've been doing this 10 years! How are they still not profitable. They haven't proven their business model. They also have awful reviews on BBB and Consumer Complaints. I rarely see a Redfin agent in the field in my market in South Florida. They will have a steep hill to climb to make a dent in market share.
They were early….business model is built for the post NRA settlement fee-competitive environment. And their balance sheet is improving (losses are shrinking) but to ur point yes their business model is still unproven- high risk/reward here
Everyone has always had the choice to use an agent or not, and how much they pay them
Yeah. And if the mob comes to your store and wants protection money you have the choice to pay them or not too.
Agents have been running a protection scam forever. Agents steer buyers away from sellers not using a listing agent and therefore not guaranteeing their skim. Well documented. Listing agents scare seller into giving 3%, maybe 2.5% to buyer agents because of steering.
So yeah, always had a choice. But now the choices are being talked about a little more. A few more people are going to start understanding agents are not needed at all.
@@MrWaterbugdesignwahhhhhhhh 😥😥
Redfins stock is down 40 percent ,
How disappointing to hear that from Redfin! Most Redfin agents are buyers agents.
I've never seen a listing of theirs in Fort Lauderdale Florida in 10 years.
Wow this CEO is a real boss. Speaks so well and knows his stuff. 🔥
disagree completely. he's just plugging Redfin. All of these companies are trash! There's data to support that they aren't a better option than working with agents. This NAR jazz is nonsense. Commissions have always been negotiable and every single human knows that- This was never about consumers! this is about attorneys making money and hedge funds owning every single house they can get their grimey hands on. This is being pitched to americans under a false narrative. This hurts americans as a whole way more than it could ever help them. Weeding out the part time agents who make the true industry professionals look bad is a very good thing, but for buyers and sellers....this will have an impact!
What matters is entire West nations tops %2 to %3 total commission yet our realtors in US for a century enjoyed that rip off..
AI real estate agent for the win, inexpensive, just a fraction of the cost, no commissions, flat rate
It won't work in real estate. Too many moving parts between property taxes, title insurance, liens, permitting, property insurance, HOA's * more. How is AI handling all those adjacent entities.
Denial is a river in Egypt. Wrong person to interview, please interview someone at NAR or affiliated to NAR. The questions asked in this interview says a lot about RedFin’s bias. ( Nothing to see here )
This whole segment was just him plugging his bottom-of-the-barrel agents lol
Let me guess... you're an agent?
@@MrWaterbugdesign No. Are you an agent?
Wonder if he is for the People to have a say in the Pay of the Redfin CEO, Trust me Redfin Realtors on crap low producers and will do anything to close a deal Good Luck Byers
The ones I have crossed paths with don't even TRY to get their clients offers accepted. I can't reach them with questions about the offer so we have no choice but to move on. Is thay the kind of "representation" people want? 😂
@@mommom3172 quit using crap agents
Although buying a home is probably the biggest financial transaction most people ever do, they know very little about because people rarely do it.
Many people in the real estate industry take advantage of this fact.
Same with hiring a lawyer when you get sued, people know very little and rarely represent themselves, and lawyers charge 33%.
@@Cdub0619two wrongs don't make a right.
In what way?
@@allisoncassieri8168 By making sellers believe that they have to pay 6% to get a good price for their house. I know people have to make money, but 6% is far too high. It should be 2% for selling agent and flat fee for buyers agent depending on amount of work.
Agents should get paid same amount no matter how expensive is the house...period
How does that make any sense? You think selling a 30 million dollar estate is the same amount of work and marketing costs the same as selling a 200k house? 😂
Smooth brain logic. More expensive homes have a smaller buyer pool therefor are harder to sale. Also, seller's agents pay for the marketing of a home (photos, videos, advertising, open houses, broker's opens, putting the homes on MLS), not to mention the time and gas. Plus, brokerages take a cut out of the commission before an agent even sees it. If it were so easy that people like you claim it is, more people would do FSBO. Bottom line is y'all want agents to still do the work but get paid less and it isn't going to happen. If you don't want to pay an agent then don't use one. If you want a bottom-of-the-barrel agent that will take a low commission, use a Redfin agent.
Odd isn't that home values are up 25-40% in places over the past 3-4 years so agents have been getting 25-40% more cash. Has your income gone up 25-40%?
@@volcrazy89 then what is the difference in selling a house fir 100k then a house for 300k suddenly the fuel is more expensive when agent is driving to more expensive house??? Harder to sell then no fuel is wasted, because much less people want to see it, also agent has more properties to sell not just one. At least in Chicago area.
@@zach2733 really selling 30 million dollars home hast to cost 5 million dollars. I need so hell hood explanation??
shame on you Refin CEO. Commissions have ALWAYS been negotiable AND will continue to be negotiable. Prices arent going down. Seller still will want top dollar. Commissions dont dictate home prices
This is very bad news for redfin. Now that the seller doesn’t have to pay a buyers commission that reduces the overall commission for full service Real Estate Agents. There’s less incentive to use their service. I don’t see how this business survives maybe reduced their fee to $300 and try to get commission from other seller services like title escrow, mortgage, etc. .😅
I don't think they thought this through. One of their big offers was a rebate on the buy side commission. That info will no longer be published so how does their model hold up. I've never come across a Redfin listing in South Florida so they don't have a presence on the listing side. The company is still unprofitable after 10 years and the online reviews are awful. They haven't proven their business model in a meaningful way. 🙊
Do it!
The buyer's agent needs the agent. The selling agent should pay less. The seller agent should be paid for the pictures and marketing materials. The buyer agent runs the buyers all over the world.
Problem is buyers agents run people all over the world who are absolute time wasters, never buy a house, don’t have buyers agreements in place, and won’t even get prequalified for a loan. Then, some random seller whose house sold after one showing has to pay for that agents time with the time waster. Buyer agents are really bad about vetting their people because there is an oversupply of agents for number of houses sold in one year, the industry makes it the norm to have tire kickers, including the fact 30% of agents fail within a year due to the way the system operates. As someone who sells only new construction….. I welcome all the time wasters to exit the industry. Only people who are serious about buying a house, are prequalified if they need a loan….should be going into peoples homes and taking up hours of time for free.
Buyers should pay a la carte for services depending on how much hand holding they need, or how much time they want to dedicate to finding that unicorn gem of a house on a rock bottom price. Others should not have to pay for that for them, but currently that is how the distribution works out.
It piece of you know what what he’s saying. He just wants more business to make his investor happy.
He looks like happy
Good luck Redfin, see if you will be used
So now buyer’s have to come out of pocked to pay their agent. That will not be allowed to be financed! So save up buyer’s so you can pay your agent!
They can in the form of concessions, brokers compensation just can't be listed on the MLS. A buyer's agent just has to pick up the phone and call the seller's agent. There's also a limit on concession depending on the type of loan a buyer gets and if it doesn't cover the buyer's broker agreement the buyer will have to come out of pocket. First-time home buyers are the ones that ultimately get hurt.
Or you just use a real estate lawyer who actually has a buyers best interest in mind
@@superjock28 Good luck with that! Business is driven by money!
@tigris5831 saved me 10s of thousands of dollars! My last home I won I had a lower offer buy offered to negate the buyer commission!
Good luck with that... an attorney will be far more expensive than an agent.
This guy acting like a Redfin agent is not a bottom-of-the-barrel agent that only does the bare minimum for their customers is ridiculous. Redfin agents have been around for a while and it's not required to use an agent AT ALL to buy or sell a home. So why are people complaining? If you don't want to pay an agent X amount of money, then don't. Use someone else or do it yourself. Also, agents don't HAVE to work for lower commissions. If they have a set fee, then that's their set fee. Some are flexible, some are not. They don't have to work for anyone that they don't want to. Same thing with clients. Which is why I don't understand all the whining about commissions when people sign contracts agreeing to those commissions. You can always find someone out there that will work for a lesser commission and it's always been that way.
I love how realtors are acting like this hurts buyers. “Oh no! Now buyers will have to pay our outrageous fees since the seller won’t pay it all!”
Or they just don’t pay your outrageous fees.
The whole point of a free market is that we don’t pay in excess of your services, that includes opening doors and blowing up balloons. Why in gods name should I have to hand over 6% of my equity as a seller that I took all the risk on to somebody with at best one semester of community college when a title company and a real estate lawyer who went to college for 7 years will do it all for less than 5 grand as a flat fee. This is how I sold my home last week FSBO and I saved over $30k in commissions. Realtors are blood sucking leeches and this settlement will be their undoing. Have fun being bottle service girls and selling insurance products again 😂
@@joshs9066 oh and clearly you should use a lawyer because they arnt blood sucking leeches at all when they’re making 33%-40% of a 420 million dollar settlement 😂
@@joshs90666% isn't the standard nation-wide. I've lived in TN, KY, CA and NV and in none of those states was the standard 6%. And you've never HAD to do anything, as I've already stated. Maybe you just don't know how to read? :( If you don't want to use a real estate agent, then don't do it. (I doubt you've ever sold or bought a house, though.) But if they were as useless as you claim, they wouldn't still be in business. If FSBO were as easy as you claim, more people would do it.
Why? Simple! Because you get 16%-24% MORE for your house when you list it with a full service brokerage and get the exposure of the entire market - not just bottom feeders, like you, apparently.
No idea why you would think that agents aren't educated. I'll gladly put my master's degree and genius IQ up against you any day of the week. But, since you aren't sharp enough to even realize that you didn't SAVE money but LOST it by going FSBO, I'll set that debate aside. It's clear that you're obviously ill-equipped to have an actual mindful discussion centered around reality, logic, and common sense.
Have fun being a jealous hater! Your life must truly be horrible.
Redfin charges 1%.
1% to much now! Flat fee is the way to go!😊
Advertising for Redfin.
All fees have always been negotiable. There has never been a standard fee.
Regardless of whether all fees have been technically negotiated, in practice the operations and nature of the coop agreements made that technical option invalid. Add to it that the industry as a whole operates in a collusive manner threatening that if one doesn’t keep the standard commission then no agent will show their house, which on a side note makes fiduciary duty laughable. Don’t bother saying agents don’t do this because vast numbers of people have directly experienced it, AND agents haven’t learned their lesson and already many you tube videos have agents touting how they are going to share commission numbers outside the MLS with each other to “fight back” and keep all commissions the same…..hello, collusion is why they just had this lawsuit and there answers are to continue colluding but just do it outside NAR. 🤦♀️
The 100+ old NAR cartel reminds me of the folks up in Congress…..a dying dinosaur mooing and whaling their cries of distress as time moves on and they are stuck in the past, eventually dying. Mooo…..Mooo…..wah……wah….wah….. 🦖 NAR could have seen the future by shifting to a la carte and fee options like most of the world currently operates in, but they chose to hold onto the good old boy system, while, ironically…..telling their members to check their privilege and started color coordinating members to a greater extent on their surveys. 😂😂😂😂
This interview is just bad reporting. We should be striving for quality representation for both buyer and seller.
look at that huge corny smile that he shows off all the time
They continue with the BS,, the seller has always known what the agent is charging as a commission (and NO its not the standard 6%),, Its on the contract!!!!!!! You guys are the worse...
load the boat with rdfn stock boys and girls
Why? After 10 years, they still haven't turned a profit. Their business model has not been proven.
🤥🤥🤥🤥🤥🤥🤥
😂😂😂😂
redfinceo=creepylookindude
Redfins stock is down 40 percent YTD and this guy is lecturing on finance....LOL
They also have a high turnover of agents. If you can't make a living at your job you leave. This is true for any profession. Those that I have spoke with are there any new very new.
Their Glassdoor reviews speak for themselves. The Redfin agents who have submitted offers on my listings don't try very hard to get their offers accepted. Can't even reach them to negotiate. 🙊
To be fair, all real estate related stocks are down YTD. Interest rates are killing the real estate market.
Relying on the CEO of Redfin, as an insider to the industry, for opinions on anything to do with the National Association of Realtors, is like asking a far right Republican for their thoughts on the ACLU, or asking a far left democrat to talk about the NRA. Redfin has less than 1% market share in the United States (2023) and they are not Realtors. Only members of NAR are Realtors. In 2023, Redfin left NAR, and has gone beyond just discouraging their agents from being members of NAR. The CEO of Redfin loves the camera and cable news, but his perspective and opinions are highly skewed, in opposition of the real estate industry and the vast majority of the people that it serves. It's sensationalism. It is not fair, balanced or factual insight. While the Redfin website might be popular among the masses, their services are not, which is evident by their small market share. Their business model is different from traditional brokerages, and even though it is different, Redfin has not been excluded or immune from these class action lawsuits over commissions. It was only last fall when Redfin settled and removed themselves from the lawsuit that last week's settlement seeks to conclude.
Very well said
Why do you think Redfin only has 1% market share? It's because of that gangster-like organization called NAR who has stymied all forms of competition through lobbying and other tactics. NAR doesn't want competition. But the class action lawsuit exposed their monopoly agenda and that's why they folded like a deck of cards. It's the end of the line. NAR is garbage.
You absolutely nailed it. Also, this CEO appearance on CNBC is just an ad buy. Redfin paid for this "reaction interview". I like em tho, and I hope they survive this new low cost listing environment.
Look at the way this guys hands move around!! Seams like a dishonest person 😢
Redfin doesn’t have clean hands, buyer & seller beware
This guy is a clown. I used Redfin to sell a home. It went poorly. Agent works on salary and he didn't give a rat's ass if it sold or not. I'd use a motivated commission salesperson. Redfin will be bankrupt.
Seriously the wrong person to interview. With all the other services provided by Redfin they’ll make up the difference in commissions.. In the end your only helping yourself.
Yes, what about RESPA? Where is the interview about Redfin pushing their "providers" from which they make additional money off their clients?
Glen is a liar. Redfin no longer offers a “refund” and no way they charge 1% to list. Read between the lines before you consult with a Redfin agent.
The refund policy is not available in all markets. There might be some markets that still offer it.
I didn't realize the redfin CEO is a clown unitl now...
Flat fee MLS listing to include recent market comparison. If needed. Paid up front by seller.
Show your own house. If you can't answer potential buyer questions, or understand what offer ammount you should accept or reject... then you need to go the 6% commision route. And pay the man
Intermediary without appointments. A good one will have a realestate transaction coordinator.
Flat fee split between seller and buyer 20/80. But Extremely negotiable
Buyers need to pay for their own agent!!! Period!! They must pay for the level of assistance they need.
Completely out of touch with the market. 42% of the market is made up of first time homebuyers who barely can get enough money together to cover their down payment and closing costs.
And using a flat fee discount joker is a horrible idea. Nobody wants to deal with them, which is common sense, although part of what this lawsuit is about.
@@catmini72 Owners of a 400k home are unwilling to pay 24k in commisions to sell their home. Do you know how much 24k impacts the average yearly income for people who own homes in this range. Their is a shortage of homes and these sellers understand that. This portion of the market is saying we no longer want to pay for the buyers need for financial support or realestate education.
Now that buyers understand they have to pay for their own agents, they will make greater effort to reduce thier own cost. They don't care now because the buyers agents LITERALLY talks them into paying for the sellers representation. THAT IS HORRIBLE AND SELLERS DONT WANT TO DEAL WITH THAT.
I'm not in realestate but some how I new the outcome of this lawsuit before it went to trial. My proof, I've been making these comments before the case went to trial and they are date and time stamped all over youtube. Im very much intouch with the market I own a home in. Im just baffled that the agent community as a whole never promoted multiple levels of agent service. Instead it was proven the agent community as a whole was in collusion to inflate commussions.
If i had a dollar for each time an agent said to me and people I know and viewer on youtube... that if you don't put a certain commision ammount then the seller agent won't show the home..... I would be rich. Collusion
@@Jay-fc4fgI am an agent and the top two sales pitches made by agents, and there are hundreds of you tube videos to back me up is:
1) Listing Agent: “Seller, if you don’t list your home with 5-6% commission offer, then no buyer agent will show your home.” “Homes sit on the market if you don’t offer the standard commission.”
2) Buyer agents: “Buyer, you should hire me because it costs you absolutely nothing, it’s free, so why go without representation when you can have someone on your side and it doesn’t cost you a thing.”
Yes, absolutely collusion across the board….experienced it many times. The thing is, when you go around advertising that your services are free and don’t ever bother to get buyer agreements, people tend to not value free stuff. This is all a direct doing by standard operations in the industry.
Will agents be able to create value? I don’t think it will be to the tune to 6%. Agents could never interpret contracts because they are not lawyers, they couldn’t evaluate problems with homes because they aren’t inspectors, etc.
NOW…..it’s also standard across the board have agents saying it’s not the job of buyer agents to find home as a way to justify that most buyers find the home on zillow and bring it to their buyer agents. On the selling side, you have listing agents that say their job isn’t to show a house and open houses don’t work. It seems most of them have a longer pitch of what isn’t their job than what is, not sure how they will demonstrate measured value.
When you claim nothing is your responsibility, yet people are paying double digits for it, they tend to not be happy.
@@Jay-fc4fgthe hot market is over. And, this settlement stipulates thay buyers who want to see MLS listed properties have to sign representation agreements with their brokers. Guess what that means? You're eliminating a huge pool of buyers by excluding them from your marketing plan. No more multiple offers. Good luck negotiating with that cash buyer from Cali or NY. The people in your neighborhood who are actually motivated to sell will help get the ready, willing & able buyer to the closing table just like they did pre-pandemic to cover closing costs and other expenses. Sellers aren't calling the shots anymore and let me warn you, there is pending up resentment from buyers right now from being screwed from 2021-2022. Now, that offer of compensation will be done in a phone call or text and our buyers can request to exclude properties that will not offer to cover their representation costs. So it goes both ways! It is just a function of the market.
You all think this guy is your friend!! He only cares about his investors.. let's say realtors do go away... Are you so gullible that you believe he and his investors will will allow you to use his platform for a small fee? If you think that, you deserve to get screwed over
This guy's a liar and a sham
Delete the redfin app. One way to smile with him
3% for a sellers agent used to be modest, 3 % of 100,000 was reasonable, then real estate agents became snakes happy about jacking up prices, 3% of 1,000,000 is suddenly too much
Um... real estate agents don't control prices of real estate any more than the President controls the price of gas.
They might get paid too much for expensive real estate. Did any of them pay back the free Covid loans?@@catmini72
@@catmini72RE agents are greedy pigs!
Terrible one sided point of view.
Of course Redfin loves this, the rich gets richer.
He’s a tiny bit annoying and by tiny bit I mean a lot. That inappropriate smile is weird.
he needs to go lay down...Redfin does NOT represent buyers in the buyers best interest ever! He could care less about the buyer....
This guy is a clown 🤡
This guy-Redfin CEO has a cayman sly aura, I don't know why but this is the impression that I get.
Happiness is seeping through every pore since NAR fell from grace, his plan is to continue fleecing buyers. CNBC Television should be more careful to how they ask for opinion in this case... Interview this cayman sly aura guy is not going to do a good thing to public, he is not being trustworthy.
#deleteredfin