Barbara Corcoran: NAR settlement causing 'total confusion' in real estate
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- Опубліковано 4 чер 2024
- The National Association of Realtors (NAR) has agreed to pay $418 million after reaching a settlement in a lawsuit where a federal jury ruled the organization had conspired to inflate commissions. Corcoran Group Founder Barbara Corcoran joins Yahoo Finance Live in-studio, believing the ruling to be creating more "clarity" from real estate brokers, which may ultimately incur more service costs on homebuyers.
In Corcoran's words, the settlement has resulted in "total confusion" across the real estate industry. She explains the change that requires brokers to create a written document outlining all the services they will provide for buyers, as well as the cost of each service, will make "a clear difference," but that's the only upside.
Corcoran explains that sellers will have to "make good with the buyers" in order to help boost the price and sales of their homes, even if it means coming out of their own pockets for the "myriad of things" that could arise." However, she maintains that the ruling is "not a big deal," but rather, it's the confusion it has raised that is the real problem.
Corcoran notes that this ruling will not prompt home prices to come down, as sellers have "a one-time chance" to make profits on their house. She cites the housing inventory shortage as the reason why "prices have gone up despite everybody singing the blues," with prices continuing to rise due to the imbalance in supply and demand dynamics.
However, Corcoran advises that if you want to buy a house, the time is "right now." As people wait for rates to fall before entering the market, she warns that the optimal time will see "everybody in the market," and she questions, "Why would you wait for that?"
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Finally, someone who knows the business inside & out. Thanks Barbara for speaking the truth.
The purpose of the Seller offering to pay a Buyer's commission has always been to encourage Buyer's brokers to bring Buyers to the Seller to sell the house. If you are a Seller and don't need anyone to come to your property to sell it, or you will market it yourself--then you don't need to offer a Buyer's commission. But if you want to encourage more Buyers to get a better a price--then offer a Commission. Simple as that.
Barbara Corcoran is one of the smartest and most successful people . She really knows her stuff! I completely agree with her take on this NAR settlement causing confusion. It's hard to imagine sellers accepting less for their homes just to pass the savings on to buyers. At the end of the day, sellers want to maximize their profits, and most buyers don't want the extra out-of-pocket expenses either. 💰 Barbara's right - despite the uncertainty, now is still a great time to jump into the market and buy!
It sounds like it will close doors to people buying homes and leave the way open for investors to buy up homes to rent. This will force out regular families from being able to ever own a home. In my opinion
No, it lowers the cost of owning a home. Realtors charge 100 billion a year in commissions. Wouldnt it be nice for homeowners to offer a buyer 3% toward their downpayment, instead of feeling forced to give it to a buyer agent?
Both of my sons were wise enough to refi into 2% loans. Hell will freeze over before they sell their homes and my wife and I paid cash for ours. Nobody wants an 8% interest rate...
Also, buyers will be a great disadvantage if they choose to represent themselves since listing brokers have far more experience with real estate contracts.
Real estate contracts are as generic as they come. A 5th grader could understand a real estate contract. Realtors are not the brightest bulbs.
@@rack9458 There are different quality of realtors and everybody is entitled to their own opinion.
First-time home buyer advice:
Move to a city or buy in a town with new construction.
Most builders offer huge incentives that can be used to lower the interest rate or reduce the price. Many areas have grants and programs that help with the down payment. Some companies even buy the home for you and let you rent that home, and then you buy it from them when you are ready at an agreed-upon price.
Barbara is talking her book. Telling people to buy real estate at maximum unaffordability is either disingenuous or stupid. She's not stupid. So it's the former.
This is the best explanation on UA-cam. Pay attention to Barbara.
Barbara is a criminal. She was sued in November 2023. Google 'Corcoran Group'. Educate yourself.
@@larryjones9773Being sued doesn't mean you are a criminal.
@@rack9458 She's being sued for what NAR just admitted guilt over (price fixing). She's going to lose. All the big brokerages are settling.
Barbara is one of the biggest real estate grifters in the game
@@JeremiahShafer So says Jerry
so many ppl will not even be aware. realtors will keep on realting. nothin's gonna change...
Telling it like it is. Gotta respect her honesty.
America needs to stop allowing institutional investors to buy up most of lower priced residential housing stock. There should laws against this in every State.
First time homebuyers who are strapped for cash can not compete with these big wealthy bullies.
This is what is also causing low inventory but no one talks about it.
Learn what your talking about before you run your mouth
I wish I was the lawyer that got the win in the class action law suit, I bet that’s a 5% commission 😂😂😂
Probably more like 33 percent lol
They are arguing for 40% take@@bethsmith2243
there is a right up of him in the WSJ. he did just fine. milked side suits for 25 yrs till he got a whale...
It's a 50% commission. Lawyers take half.
Agree about the low interest rate-I’m not selling any time soon.
Spot on and exactly what we see in our market here in San Diego too!
What a great interview! I completely agree with her takes here, and it's refreshing for an outlet like Yahoo to air the truth!
As a buyer I am not ever going to pay a commission to a Buyer Agent. Afterall, who is coming up with all of the funds that is being used to pay all of these fees through the cost of the home...yes, me the buyer! No sale, no money. I will have closing costs, appraisals, inspections, etc. so don't need to pay additional fees. Plus, I am the one incurring debt not the one reaping thousands of dollars through a sale. A selling agent not willing to share a commission is a greedy one. If I show up with a Buyer Agent and end up purchasing the home, you've got a sale so pay for it! Selling agents not willing to share a commission with a buyer agent (just ran into this) will potentially turn away a sale. Buyer agents won't work for free.
SELLING AGENTS WILL NOT BE ABLE TO ASK THE SELLER TO PAY FOR THE BUYERS AGENT ANY LONGER, MAYBE YOU/BUYER CAN ASK IN YOUR PURCHASE CONTRACT, BUT SELLING/LISTING AGENTS CAN NOT ASK THE SELLER TO PAY FOR THE BUYER’S AGENT. IT WILL DEPEND ON THE MARKET CONDITIONS IF SELLERS WILL PAY. IF HOMES ARE SELLING QUICKLY WITH MULTIPLE OFFERS, THEY WON’T PAY, AND BUYERS WILL GET STUCK FINANCING IT INTO THEIR SALE. SO ULTIMATELY IT WILL COST THE BUYER MORE. THESE PEOPLE AND LAWYERS WHO BROUGHT THE SUIT, FELT THEY WERE HELPING BUYERS, THEY WILL ONLY HURT THE BUYER. NO SELLER IS GOING TO SELL THIER HOME FOR LOWER, ALL SELLERS WANT TOP DOLLAR FOR THEIR HOME. (IT’S NOT SELLING AGENTS NOT WILLING TO SHARE THEIR COMMISSION, SELLING AGENTS CANNOT ASK A SELLER TO PAY 2 SIDES, THEY CAN ONLY ASK THE SELLER TO PAY THEIR COMMISSION).
Great guest! Enjoy Barbara’s insight and wisdom!
She is surprisingly confident 😒. I follow a Realtor of 20+ years who is confounded on how things are going to work out. Leave it to investors, like her, to prop up the market.
I really think it's a lot of noise without much substance. I believe things will change some (mostly wording and forms), but sellers are still going to be paying commissions to Buyers Agents. (For the most part) Buyers have always paid their Buyer's Agent fees, it's just figured into the purchase price and their loan (if they finance).
You are the BEST! Professional and direct honest opinion,
This has just made it more expensive for buyers to buy.
How so?
Yep it’s more expensive for the buyers.
Hopefully making it even more expensive for buyer will signal buyers to stop buying… REAL ESTATE IS A RACKET! NAR IS CORUPT AND THE ENTIRE INDUSTRY IS FULL OF COLLUSION! Open your eyes people…
@@Vergy1331 rignt now the seller will pay for the commission of the buyers agent by increasing the price of the house so in a sense the buyer was financing the commission of their agent
You're not a buyer until you buy
Dammm this potential income of agents by half. Its like kicking the can down the road. Houses are to expensive to catch up.
If anything this settlement will make it more expensive and harder to buy a home, especially first time buyers. And we are only getting started with the lawsuits. Sad time for America
FINALLY! As a real estate team leader, I'm finally seeing a summation of the NAR settlement articulated in a way that is both true to how the outcome will impact consumers (it pretty much won't) and in a manner the layperson can understand. Thank you Barbara!
Well said, Barbara!
Well done explanation and added commentary. The confusion is chaotic!
Prices CAN NOT " GO THROUGH THE ROOF" because NO ONE CAN AFFORD the current prices.
Much less current Insurance rates & Property taxes.
The lawsuit made the lawyer very rich, Buyers get hurt.
BOTTOM LINE. Sellers should negotiate ANY commission to sellers agent BUT should HAVE NEVER bound the buyers with those enormous fees! Many buyers DON'T need or WANT ANY agent! Contrary to what NAR and many agents believe, buyers are savvy enough to research listings, get inspections and arrange financing. And yes, a buyer can even compose questions to a seller or sellers agent. The real estate industry has been a RIGGED SCAM for decades. No other country in the WORLD punishes buyers and sellers with 5, 6 or 7 percent fees. Usually one or 2 percent.
@@clearviewtechnical Most people buy one or two homes in their entire life. In your universe that makes buyers and sellers experts.
There is the FSBO market where you can play with no commission. Good luck with that. There is a reason why people list and buy homes with a real estate agent. The Lawfare shakedown will reek havoc on a already crazy real estate market. Thanks NAR for rolling over to the extortion.
The buyers didnt get hurt at all. They aren't going to pay realtors exorbitant fees. Thats the whole point: Stop the price gouging!
The future of buyer agent commissions should reflect their fair market value. Right now they are putting buyers behind a pay wall. That absolutley needs to be done away with. Good for the class action firms addressing this! Buyer agents should get paid what they are worth, as decided by buyers, and not a penny more! No more price fixing!
@@TheKindKids says the class action Laywer
@@americansailor7967 I'm not a class action lawyer, but thank god someone is here to help buyers push back against realtor price gouging.
Yep. We moved with a plan to re-evaluate location in 5 years (now halfway through), but with a 3% mortgage, it’s going to take something significant to make it feasible to move.
The reality is you don’t need to pay commission to buyers agent, you just deal with the sellers agent or the owner period. And if they don’t want to sell you the property for the price you willing to pay then move on to another property. Negotiate from a side of strength and walk away if you need to.😉
Sellers agent is not going to work with buyers for free.
THERE IS A SHORTAGE OF HOUSING, BUYERS ARE NOT MOVING ON TO ANOTHER PROPERTY. THEY WANT TO BUY AND OWN PROPERTY.
She is so right on so many points.
Great Lady. So Sharp!!
She is right 100%, the best explanation so far!
What’s interesting is how she says the sellers won’t want to give any of their equity gain to the buyer. 🤔 hmmm, but it’s ok for the seller to give the agents involved 6% of the equity 🤷♂️. Let’s make sure we negotiate what’s “always been negotiable” lol 😜
I have been in lending for 20 plus years. No buyer is going to pay 2 cents for a buyers agent .
I'm selling my house next year buyers are going to pay their own commissions not me
Some buyers agents are not worth 2 cents. Others are priceless.
Buyers do not need an agent. All information regarding paper work and instruction could be given by listing agent. Buyers could personaly negotiate. This is why they do not need to be represent by an agent. If a buyer insists to be represented then they should pay the fee themselves.
One might argue that, given the current state of technology, we might not need the selling agent either. Since people can control doors locks from their phones (they can control their own showings), hire lawyers cheaper than real estate agents, can hire inspectors from a range of places, apply for and get pre-approved for loans online, and have documents notarized for less than a combined $30, it could be a shift in the dynamic of the market. It could be that, in 15 years or so, real estate agents go the way of the traveling salesman.
It is argument, not an explicit statement of fact.
@@myronpriest4935 Good luck sitting on the market for months on end and wondering why the house down the street sold after a week. Most buyers can’t afford the commission. But, don’t take my word for it, try it your way first :).
She'll say anything to support her business.
Buyers are screwed
YES THEY ARE.
Nice Video great work my friend
Barbara gave a great job explaining this and the potential impact. There's so much confusion right now!
@ArdhiRealEstate "Barbara gave a great job explaining this and the potential impact."
DID a great job, not "gave" a great job.
@@Packhorse-bh8qn no she GAVE a great job, Bill was very receptive!
@@zachariah7114 There's always at least one who never matured past 7th grade
Barbara is brilliant. Thank you!
Great perspective from one of the icons in the industry
Barbara nailed it. Sadly too many people dont want to listen to the truth.
I know why she is so successful
Well said by someone who selling's homes for a living. "Always the best time to buy."
Barbara.... are you kidding me....? You are telling people to "rent" rather than "buy"???? Young people.... After 30 years you will have hundreds of thousands of dollars in equity and you will never have to make another rent payment or mortgage payment.... I can't believe you didn't tell people that renting is just throwing your money away every month and getting nothing for it but a roof over your head for now.... Geeez
If you are a first-time homebuyer or home seller and need a lot of hand-holding, I don't see the commission coming down that much. However, for people who have been through the process before, I hope there are now "a la carte" options so you only pay for the services you need.
Look at the videos from Audra Lambert about negotiating realtor commissions. She has some ideas about ala carte pricing.
get a top notch real essate lawyer anf promote the fact to buyers both sides win.
À la cart pricing gets tricky… You hire the agent to do the paperwork only but then sue him/her later because your basement floods unexpectedly. Unfortunately, the liability side of the equation never changes for the Realtor.
BOTTOM LINE. Sellers should negotiate ANY commission to sellers agent BUT should HAVE NEVER bound the buyers with those enormous fees! Many buyers DON'T need or WANT ANY agent! Contrary to what NAR and many agents believe, buyers are savvy enough to research listings, get inspections and arrange financing. And yes, a buyer can even compose questions to a seller or sellers agent. The real estate industry has been a RIGGED SCAM for decades. No other country in the WORLD punishes buyers and sellers with 5, 6 or 7 percent fees. Usually one or 2 percent.
@@clearviewtechnical I GUESS YOU DO NOT WORK WITH THE PUBLIC. MANY PEOPLE CANNOT DO THE THINGS YOU DESCRIBE ABOVE. THEY OWN BUSINESSES, HAVE EMPLOYEES TO SUPERVISE, HAVE JOBS, CHILDREN ETC… AND NEED A REALTOR TO ASSIST THEM. THE DATES COME UP VERY QUICKLY IN A CONTRACT. IF A DATE IS MISSED, YOU LOSE THAT CONTINGENCY TO GET OUT. MANY PEOPLE CANNOT UNDERSTAND THE TITLE COMMITMENT, OR EVEN KNOW WHY IT IS NECESSARY. MANY PEOPLE KNOW THEY NEED AN INSPECTION, BUT WHAT ABOUT MOLD TESTING, SEWER SCOPES, RADON TESTING. WORKING WITH AN EXPERIENCED REALTOR CAN SAVE YOU THOUSANDS IN MISTAKES AND HEADACHES. THE LAST PART OF YOUR STATEMENT, I AM NOT SURE HOW REALTORS DO IT FOR 1 %. FOR EXAMPLE I HAVE A LISTING FOR 649,000 NOW. 1 PERCENT WOULD BE 6490.00 TO ME, I HAVE TO PAY FOR PHOTOGRAPHY (400.00) MY SIGN IN THE YARD, FLYER BOXES, PAY FOR STAGING ADVICE, COLOR FLYERS TO BE CREATED AND PRINTED. ADVERTISING (WHICH IS VERY EXPENSIVE), GOING OVER THE CONTRACT AND DISCLOSURES WITH THE SELLER (MINIMUM 2 HOURS) FILLING OUT FORMS TO GET THE PROPERTY IN THE MLS, OR INPUTTING IT. HOLDING OPEN HOUSES, GETTING BACK TO BUYER/REALTOR INQUIRIES ON MY PHONE, TEXTS, AND EMAILS, GETTING IN OFFERS, GOING OVER THEM, 21 PAGE CONTRACT IN CO, GO OVER IT IN DETAIL WITH THE SELLER. POSSIBLY CREATING A COUNTERPROPOSAL AND AMEND EXTENDS. THEN FOLOW THE CONTRACT THROUGH TO CLOSING - EARNEST MONEY DELIVERY AND RECEIPT, INSPECTIONS AND NEGOTIATIONS, TITLE COMMITMENT, WORKING WITH THE LENDER ON BEHALF OF MY SELLER, GOING OVER IN DETAIL THE FINAL SETTLEMENT STATEMENT FOR ACCURACY, ATTENDING CLOSING. PAYING MY REAL ESTATE COMPANY 1300 TO 1500 A MONTH. THERE WOULD BE NO MONEY LEFT FOR ME, I AM NOT WORKING FOR FREE.
The small Perentage pf commision that goes to the agents for representation Is NOT gonna effect the prices of homes!! (Whats The reason prices are soo high is because we had a massive rate increase over an extreemly short period of time! And inflation.
Of course it does. Any intelligent seller adds 6% to the listing price for the commissions paid to agents.
And if 3% of $750k is small money to you, you're very,very financially blessed. For the rest of the world, that's HUGE money.
The problem with paying for the buyer's agent is you pay someone YOU didn't hire, to work against your best interests. All while doing everything they can to make sure you give away everything possible.
And for what exactly? The majority of buyers find their own properties now. The agents are doing less and charging more. It's about time this monopoly was dismantled.
@@tidycats151 They are working in your interest because they are bringing you someone who will buy your home! Your number one interest is getting your home SOLD! You need a buyer for that, and a buyer needs representation! Period end of story. And if you are not a real estate agent then you really cannot talk! You have NO idea what it is like to work for months, with out a pay and have a deal not close or fall out of escrow. You have no idea the stress of runing out of money and maxing out your credit cards while hoping to be able to finally close on a sale and put some money back in your account, while your also being eaten alive by fees and also stressing about how you are gonna get another deal, and knowing you are gonna have to spend more moeny to market etc. In my market the average home sale is 400,000 the average commission is 2.5% and an agent sells an average of 4 homes a year..and right now because of the high interest rates its extremely slow! Do that math! This isnt selling sunset we are NOT getting rich, and this is no monopoly!!
YES,, Just pay $ 10-12k of the buyers closing costs.. NO shortage of homes in Florida, Tons of available homes
If the numbers make sense, both parties would happily pay a commission. This is where negotiation savviness will need to be done.
The numbers haven’t made sense for a long time though.
Will these newly proposed rules / regulations apply to ALL real estate transactions within the U.S?
According to NAR "YES"
@@rolandguerra6156 f
For non NAR members?
Real estate need a disruptor like Amazon to make buying and selling cost effectiv.
I keep laughing at the people that think a crash is coming. This isn’t 2008. Buy now or pay more later
Leave some creepy notes on people houses got it
When there's more buyer's than Sellers= buyer's will have to pay commission or add to the purchase price. But when house isn't selling or more Sellers than qualified Buyers = Sellers will either pay Full commission or Lower price in order to Sell!!😊
Bleep the buyer's agent...If I list my home for sale and I hire an agent, I hire that agent. If you want to see that house, contact the LISTING AGENT. Re-write the agents code of conduct stating that the role of the listing agent is to represent both sides to facilitate a fair and reasonable agreement for both parties.
Still feel you need a buyers agent. Pay them yourself... This is how it is done in the rest of the free world.
I would be very reluctant to even use a buyers agent if I had to pay them a percentage on top of the insane home prices.
I wish I was the lawyer that got the win in the class action law suit. I bet that’s a 5% commission 😂😂😂
35%
Laywers Get 40-50% in commision!! and they are accusing reators of being greedy for geting 2.5 on a transaction. Its Rich! This lawyers payout for lying about realtors is about 9 million dollars.
So a record number of homes under contract and construction, inventory tripling in many states since '21, wages down, unemployment going up, individual savings at near record lows, credit card debt climbing, foreclosures and defaults going up...doesn't seem like a "prices going up" kind of formula. Never forget, these are the same people who shouted in 2008 that home prices were definitely going to go up. These are also the people who have constantly fail to look at how American financial situations are going to change real estate demand. On a long enough timeline this is completely unsustainable, as wages remain nearly flat the prices of homes continuously push people out of the market. A 6% YoY price increase takes $200k home to $358k in 10 years, and $641k in 20 years. So unless she is expecting something incredibly dramatic to happen to wages we're going to see real estate deflationary pressures sometime soon.
Less caffeine for you. 😁. Also unemployment is not going up. Many companies are having a difficult time filling positions and as much as inflation is still high. Try finding room at a restaurant on the weekend. Market correction on real estate, who knows when ? That’s normal . Also many homes are being purchased by hedge fund’s all over the country turning them into rental properties. Interesting developments. HOLD ON ! 🇺🇸🙈🇺🇸
@@rayRay-pw6gz Check out the End Hedge Fund Control of American Homes Act. It is due to be voted on soon. And unemployment is in the way back up from the January ‘23 lows, or at least that’s what the Bureau of Labor and Statistics holds to be true. And prices can only continue to go up if wages do the same, otherwise the purchasing pool (demand) gets smaller and smaller. Maybe we’ll adopt a 50 year mortgage option soon. Personally, I think it is far more likely we see a fairly big set of changes in how people buy homes from one another in a way that circumvents the bank loans and realty companies altogether. Our current state of technology would be capable of supporting such a concept.
Where is real estate inventory triping?....There is very little inventory where I am
she's a REALTOR''
''it's in her nature.''
they are not our friends. best bet is unincorporated raw land. get them all out of you lives and if still working, go remote. me? retiring to the above scenario...
We had a glut of homes in 2008
Large builders only want to build 9room 4 baths, 3-car garage monsters that will always be priced to the higher market. There are almost no "starter homes" anymore.
The new situation assumes a great deal. There is an assumption that the seller's agent is a sharp business person that can somehow attract the right buyers with the right financing. There will be no unpaid buyer agents going from listing to listing bringing in the deal. The seller's agent will not be dealing with experienced unpaid seller agents to make it all work when problems arise. If I am selling my home I would be hard-pressed to have newbies with no agent give me an offer.
Many states have required buyer agreements ; there are many undisciplined agents not getting written buyer agreements ( these agents need to be educated or leave the industry.
A seller “pays” compensation when a buyer settles on the purchase of a house. If the buyer does not buy, the seller receives and pays no money.
Dear sellers, before you decide you do not want to pay X amount of dollars for marketing, selling and processing the sale of your home, ask yourself how much time you have to study the data of sales for the last 6~18 months, how much time you have to market your home, host open houses, evaluate submitted offers, confirm lender data submitted, verify funding legitimacy, address title/ lien questions and on on. A house is sold when all steps have been taken not when an offer is accepted. Depending on the market we are in, you can sell the house on the first contract you get the first day it was listed or 180 days after it was listed….research how long it took homes to sales between 2005-2008
Rent is cheaper … people are being rip off with rent payments. Buying even if it sounds crazy, is ALWAYS a better option. Think, long term …
YOU ARE SOOOOO RIGHT!
Avoids basic question:
why are brokerage fees in the US 6% vs 2-3% in other countries?
Corcoran's company, Corcoran Group, was sued in November 2023. She's just mad that her crimes (violation of the Sherman Antitrust Act) are going to be exposed and she's going to have to pay back some money she stole from home sellers.
@@larryjones9773 This woman destroyed the real estate market in NYC when she started up. Drove prices way higher which just continued to skyrocket throughout the years.
NAR is basically like a union for realtors. They keep the fees high and they also spend big money on lobbyists. If you are a buyer, you need to get a good lawyer familiar with real estate law. And do your homework on buying a home. The devil is in the details. It is complex. Site problems, location financial information, builder issues and much more.
@@WonkaforeverSo Barbara single handly increased prices in NY?😂😂😂😂
@@larryjones9773Nobody cares about a lawsuit, Larry
I would not pay closing costs. Always found that comical. That’s the buyers job.
My broker has already made a statement that our Sellers will need to pay a "compensation" to a Buyer's Broker. Barbara, you need to check your states. Florida has WAY too many listings!!!!!
Then your Broker will be breaking the law. In California Sellers have never been obligated to pay the Buying side a commission. But they've always done so because it results in selling their home quicker and for the highest price. But they can't be forced to ... it's completely voluntary. It should be like that in every State ... requiring the Seller to compensate the Buyer's Broker will soon be illegal in every State. Barbara's facts are correct ... no need for her to check them again.
I disagree
Barbara Corona
it's total confusion and for that reason...I'm out
Lack of inventory? Not everywhere honey. She's always trying to pump prices up. Its in her interest
She is spot on in Ohio. Seller’s market. Lack of inventory for the amount of buyers wanting a home.
Most sellers are still willing to cover the buyer agents' commission. The media has blown this all out of proportion.
BOTTOM LINE. Sellers should negotiate ANY commission to sellers agent BUT should HAVE NEVER bound the buyers with those enormous fees! Many buyers DON'T need or WANT ANY agent! Contrary to what NAR and many agents believe, buyers are savvy enough to research listings, get inspections and arrange financing. And yes, a buyer can even compose questions to a seller or sellers agent. The real estate industry has been a RIGGED SCAM for decades. No other country in the WORLD punishes buyers and sellers with 5, 6 or 7 percent fees. Usually one or 2 percent.
2.9 % mortgage...........only my heirs will sell, not me.
In the public's mind, real estate licensees are not known for their competence and ethics. Example - the Phil Dunphy character on Modern Family. Why is it funny? Because there is a strong component of truth to it. Maybe this settlement will thin the herd. Though probably not. Multiple "experts" are already promoting ways to sidestep the upcoming changes.
I HAVE 30 YEARS EXPERIENCE AND OVER 450 TRANSACTIONS SOLD. I AM NOT PHIL DUNPHY. THERE ARE MANY GOOD REALTORS, I KNOW THEM AND WORK WITH THEM.
Buying a home you’re renting to pay bills water by electric bill taxes insurance this is so stupid. This is American dream. Maybe that’s why why this country is so messed up greediness
Two things:
1. The housing inventory shortage is also being caused by corporate investors buying up residential homes to rent back to tenants.
2. First time buyers actually get access to home-buying programs to assist them so it’s not as bleak as it seems. Unfortunately, in some places that funding is also being shared with “migrants” so first time buyers who are actual citizens need to act quickly and decisively.
First time home buyers are often in need of A person to guide them through, and negotiate on their behalf. First time rates- FHA or USDA, with low down payment, they do not have funds to hire an agent, if the seller is not paying buyers'' agent compensation. And the seller is not going to cut them a deal.
I guess ,sellers and buyers are craving for a model where buyers and sellers are directly connected . without the agents as they always represent themselves, neither the buyer nor the seller!
100% correct
Isnt that called "For Sale By Owner" ?
It’s always been an option, 92% of sellers choose an agent because agents get them 20+% more.
@@adamblacketter that’s easy when you people blackmail and boycott homes that don’t pay buyers agent a ransom fee. That what the jury said. Let’s have more lawsuits, drop the settlement because you people think you are in the right. And cookie cutter homes in California that were built in last 30 years. Less than 10% of homes have big/special features that can alter homes appreciably. In extreme sellers market with home selling in 5 days or less with homes sold as is, did agent really do much except drive affordability to 10%?
Barbara is smart BUT she's not addressing what's really happening and the LAWSUIT lost by NAR. NAR caused this lawsuit and the judgment was against NAR for dictating in MLS and to Agents and Brokers how they should and could conduct business. Buyers and Sellers DO NOT KNOW what Licensed Agents and Brokers do in real estate transactions and THIS IS NAR’S FAULT. Buyer Agents will now have to go to the Buyer and explain they are now REALLY responsible FOR THE ENTIRE COST OF USING AN AGENT OR BROKER. The Buyer Agent WILL ATTEMPT TO GET THE SELLER TO CONTRIBUTE TO THIS COST, I.E. PAYING 1% OF THE SALE PRICE TOWARD THE BUYER'S COST OF USING AN AGENT / BROKER, OR PAYING SOME OF THE BUYER'S CLOSING COSTS. BUYER AGENT / BROKERS ARE TIRED OF SHOWING PROPERTIES FOR FREE, WRITING AND NEGOTIATING COMPLEX LEGAL CONTRACTS FOR FREE AND ONLY GETTING PAID IF THE BUYER ACTUALLY CLOSES ON A PROPERTY AND DOESN'T CHANGE THEIR MIND ABOUT BUYING ANY PROPERTY. I think Buyer Agents and Brokers are GOING TO BE FEW AND FAR BETWEEN AND WE'RE GOING TO SEE MORE AND MORE WHERE ONE AGENT OR BROKER HANDLES THE ENTIRE TRANSACTION FOR BOTH THE SELLER AND THE BUYER....AS IN FUNCTIONING AS AN INTERMEDIARY! BUYERS ARE ALREADY STRAPPED FOR THEIR DOWNPAYMENT, THEIR LOAN COSTS, THEIR TITLE AND CLOSING COSTS AND WILL NOT WANT TO PAY AGENTS AND BROKERS WHAT THEY NEED TO BE PAID TO MAKE A LIVING. REALTOR ASSOCIATIONS NEED TO GO AWAY, WE HAVE STATE REAL ESTATE COMMISSIONS / BOARDS!
NAR HAS NEVER DICTATED WHAT I CHARGE. I WORK FOR RE/MAX, THEY HAVE NEVER TOLD ME IN 30 YEARS WHAT TO CHARGE A SELLER. COMMISSIONS HAVE ALWAYS BEEN NEGOTIABLE. WHERE ARE YOU GETTING THIS INFORMATION FROM???
The level of work and value that a buyer or seller agent provides is not worth 6% of a sale.
You must have had a bad experience- when it comes down to it I end up with 1% or less and have hunderds of hrs in emails, texts, showings, driving. Then the sellers have to turn around and pay a buyers agent now anyways now . I provide the best service and go above and beyond including hrs of free painting and much more. I do it to help and my commissions are never more than 4.5 % which I split 50/50 with the other agent then 50/50 with the brokerage then pay the mls, 25-35% in taxes after all said and done it equates to about 20 an hr. So….. read reviews and pick a good agent that loves their job and does way more than the minimum which is still a ton - no one sees behind the scenes and what it takes to get a home to the closing table.
It’s the liability and emotional stress. Plus all the upfront fees and costs.
Agreed!
If a broker puts 25% more money in your pocket, they are literally worth 24%.
BOTTOM LINE. Sellers should negotiate ANY commission to sellers agent BUT should HAVE NEVER bound the buyers with those enormous fees! Many buyers DON'T need or WANT ANY agent! Contrary to what NAR and many agents believe, buyers are savvy enough to research listings, get inspections and arrange financing. And yes, a buyer can even compose questions to a seller or sellers agent. The real estate industry has been a RIGGED SCAM for decades. No other country in the WORLD punishes buyers and sellers with 5, 6 or 7 percent fees. Usually one or 2 percent.
Barbara became so out of touch; it's painful to see.
Warren Buffett’s take was totally different so as one of the world’s richest man I will bet on what he says!
Real Estate Commission should drop to 1% or less with max cap set at 10k... This is pure BS. Why not put same 6% on buying cars?
Commissions have always been negotiable. Just find yourself a realtor who will do it all for 1%. Good luck by the way.
Selling housing real estate in today's world is like selling purses at Neiman Marcus. Buyer says to the sales agent, I will take that one. Agent says we are opening bids for that purse on Tuesday, and IMO it will go above asking price.
She's dreaming.... Affordability is a huge hurdle to address her comment about everybody and their mom buying houses when rates come down.
While a brilliant business woman, Mrs. Corcoran already mis-spoke about "the way" that real estate agents will represent their services. One way to do it going forward is to offer each of their services a-la-carte for a specific fee, but that is not the only way as Mrs. Corcoran stated. Agents can package their services and offer their services in a variety of ways as long as they are up front and transparent about their fees and how they will be paid. If all agents did this the same way, that's called collusion and very much against the Anti-Trust law that agents take an oath to uphold when they become a REALTOR. This is why I don't understand why everyone is running to the media to talk about the changes in the real estate market, when how you take the "proposed changes" and integrate them into your business plan is strictly between you and your Broker.
Talk about being transparent , terrible
Real estate brokers parasite industry they got headache how to make money now
Put the good realtors on salary. Period. Done. Why is this so difficult?
Once this goes into affect, and buyers have to pay for a commission, house prices will drop big time! Buyers will be out of the market and with less buyers … less demand … less demand, less housing prices
Buyers are not going anywhere. It's the buyer agents that will be looking for new jobs!
The reason their houses are high because no one is going to sell their house when they’re paying 2% interest there’s no shortage there’s houses but no one is stupid as they are to sell it and then to pay for another house 7 1/2% interest you don’t need a house Don’t fall into stupid trap. This is pure ignorance money money hungriness.
The single family home has been a disaster for Americans
Of course she’s gonna tell you to buy houses. She’s an investor. Her face shows greediness.
Hypothetical: Buyer finds dream home on Zillow and calls agent. Buyer's agent calls listing agent and is told seller is offering 0 in buyer's fee.
Buyer's agent calls client and says: ???
If I am the buyer, I call the listing agent and ask if he/she will show me the house. If I like it I will hire an attorney to review purchase document for much less than 3% of the contract price.
MY CHARGE TO REPRESENT YOU IS 2.0% OR 2.5% OR 2.80%, AND I EXPECT YOU, THE BUYER TO PAY ME FOR MY PROFESSIONAL SERVICES. CAN YOU AFFORD TO PAY ME OR DO YOU PREFER TO CALL YOUR LENDER AND SEE IF YOU CAN FINANCE MY COMMISSION?
She lost all credibility when she was saying publicly for everyone to continue to buy homes when rates increased and properties were overvalued. It's clear she has a vested interest.
Prices will come down when millions of new homes are built. Closing the border would help. Millions invading the country need houses.
Those "invading" aren't buying 300k+ houses
We close the border, who will roof the houses or do the landscaping? OPEN THE BORDER WIDER!
@@TheoriginalBMT I didn’t say they were and how do you know they’re not? Houses are for sale right now for less than $75,000 all over the US.
@@clearviewtechnical all the American contractors will continue doing those jobs. Not one non-American mows my lawn or works on my roof. Americans do.
BOTTOM LINE. Sellers should negotiate ANY commission to sellers agent BUT should HAVE NEVER bound the buyers with those enormous fees! Many buyers DON'T need or WANT ANY agent! Contrary to what NAR and many agents believe, buyers are savvy enough to research listings, get inspections and arrange financing. And yes, a buyer can even compose questions to a seller or sellers agent. The real estate industry has been a RIGGED SCAM for decades. No other country in the WORLD punishes buyers and sellers with 5, 6 or 7 percent fees. Usually one or 2 percent.
Dear Barbara Corcoran,
Do you remember the homeless woman that clung to your book as if it were the bible, because she related to your story growing up in a large NJ family and being a waitress?
You gave her so much hope!
Becoming homeless wasn't her fault, she just married the wrong man that took her down. She emailed you for help because she believed in you, but you wouldn't reply.
She didn't drink or do drugs, she just wanted your help for food to survive and she saw how you talked about your wealth so much that she tried to reach out to you for help.
I gave her all the help I could, and took her to eat so she could feel normal.
She doesn't need your help anymore. Someone gave her a rancid sandwich on the street where she begged in Clifton NJ, and it led to her death.
Today would have been her 57th birthday. She died with your book by her side. She left 3 kids behind.
I just thought you should know, in case someone else asks for help that believes in you... at least reply to them. Even if the answer is no, it will help them move on instead of continuing to wait for your reply. Next time you eat a sandwich, please think of her and appreciate what you have been gifted with.
Barbara can't reply to every one that reaches out to her. To blame Barbara for someone's death is pathetic!
@@rack9458 I don't blame her... those are your words not mine. I just want her to reply to people that reach out to her... and not ignore them.... because she waited months... where as a simple "no" would have let her move on and stop hoping.
That’s like saying Barack or Donald should call you when you tell them to.
@@FloridaLivingFun Get over it. She can't reply to every kook that sends a message
@@adamblacketter I have spoken to Barbara before and she replied in emails to me.
Agents are useless
You r
@@adamblacketter guess I found a useless agent
💯 most just dress well and bring no real value. Definitely don’t deserve 6% for showing homes to buyers.
BOTTOM LINE. Sellers should negotiate ANY commission to sellers agent BUT should HAVE NEVER bound the buyers with those enormous fees! Many buyers DON'T need or WANT ANY agent! Contrary to what NAR and many agents believe, buyers are savvy enough to research listings, get inspections and arrange financing. And yes, a buyer can even compose questions to a seller or sellers agent. The real estate industry has been a RIGGED SCAM for decades. No other country in the WORLD punishes buyers and sellers with 5, 6 or 7 percent fees. Usually one or 2 percent.
@@genepires9394 I recently got a seller client 65% more for their house than they could. They had multiple offers before I was hired. I got them 65% more than they got without me. They paid 5% for my services and I did a full junk clean-out of the property myself, filled 5 dumpsters. So because of me even after my fee, they got 60% more in their pocket for their house. Useless, yeah sure.