My Reaction to NAR Settlement
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- Опубліковано 9 лип 2024
- This is a Data centric Analytical approach to the Nashville Tn Housing Market. We look at trends in active listings, median price, mortgage rates, contracts, rent rates
Ethan Flynn
www.ethanflynn.com
423-767-6000
tflynn@realtracs.com
www.ethanflynn.com
Let's talk! Book time here: calendly.com/ethanflynn/30min
Newsletter: ethanflynn.substack.com/p/com...
TN CPA License: 24309
TN Real Estate License: 356949
greaternashvillerealtors.org
www.realtracs.com
Recurve Real Estate
DANA JORGENSEN
PRINCIPAL BROKER | OWNER
LICENSE: 344195
(615) 496-3837
dana@recurverealestate.com
#housingmarketupdate #nashville #housingcrash #housingmarket
Ethan, I am sorry to hear about the NAR settlement. I don't think we could have worked in Nashville without your support. But honestly in some ways, I support the settlement. This settlement allows for the natural market dynamics to decide the buyer agent’s fee and I think its fair that the free market decide what is the value of service for a buyer agent. This is true for workers in other industries as well. Having said that, I think that the settlement will give quality agents like you a leverage in the market. I would not hesitate to pay people like you a fee to help us find a home. Anyone who has gone through the buying/selling process understands the value of a good agent. You and the team are the kind of agents the modern housing market needs. I don't think your value is in making sure the buyers adhere to the timelines of the sales contract. Your value is in providing insights that are hard to find otherwise, like the fair price of the house, the safety, the neighborhood, the cost of repairs, hazards to the home etc. You saved us from buying a home that would not be a good fit for our needs. Besides this, when we did find an another home we liked, you helped us negotiate a better price with the sellers, something I am not good at doing myself. So yeah, I think a lot of changes are about to come, and I think the unknown ahead makes this phase scary but I don’t think that is going to put you out of business. When we are back in the Nashville market, we will love to have you represent us again! Thank you for putting out this video and sharing your opinion candidly. I really admire your honesty! Good luck!
This settlement is anti-capitalist and anti-free market. This is another example of Marxism in ameriKa. The government has stepped in and destroyed a career. Buyers now have no representation, especially FHA and VA. The end goal is to eliminate buyer agents as independent contractors and other professionals will follow. They want everyone to be an employee of the state.
Your transparency and sincerity are truly inspiring. I’ve purchased numerous homes with multiple different agents and I can say confidently that the service you provide with regards to data analysis and consideration of housing trends in the greater context of macroeconomics is not at all typical. The service you provide to buyers is particularly insightful and very valuable. Those who are stand-outs always make a way. Thank you for your reflections on what the NAR settlement will mean for the real estate profession and thank you for the excellent content. We (your viewers) learn so so much from your videos and we appreciate your time and insights.
Thank you for the feedback. Glad to provide a unique perspective and I love doing it! 🤞
The NAR settlement provides an opportunity for disruptive innovation and Ethan, your approach, talents, and values will serve you well during this transition in the real estate sector. You and Andy made our 2023 home purchase and move to Nashville seamless. Your negotiation process and data approach were on point. Creating a new, previously unimaginable service that includes data and negotiation for buyers can transform the whole experience for buyers.
The buyer pays for the house and the seller pays for both the buyer and seller agent commissions, otherwise the seller would get more money at closing if he didn’t pay the buyer agent.
This system is a huge conflict of interest against the buyer, because you basically have both agents in the sellers pocket working to get the seller the highest asking price, at the end of the day it is the seller paying both agents.
Finally someone understands!
I totally agree. The incentives aren’t aligned even though buyers agents have a fiduciary duty. However, I will say we get more joy out of getting a good deal than we do doing the deal. It’s a lot of fun to get sellers to drop price.
That’s is incorrect
You’re not entirely wrong, most of that was happening during the housing boom, however now not as much now. When I sold my house last year I sold 90k under appraisal, 10k finance credit, and had to move in less than two weeks per buyers request. The buyers had so many weird demands and the agent’s emails were always condescending. I even denied their offers several times because the offers were worse, and they were wasting my time, and flat out didn’t want to do business with them, but my agent and their agent kept persisting. They would come to the house a lot via last minute and wait around the corner and call us while working or just show up unannounced. I guess because the agent knows she’s getting paid so it’s okay to intrude on other peoples time. All they would do it’s just walk around and talk about where their furniture would go and etc. When I brought up the buyers agent commission, my agent said the broker set the rate and it’s not negotiable. They both got paid 15k. I paid the buyers agent to work against me and to represent the buyer.
the seller is payting the selling agent. the selling agent's commission in split between the brokers. Have you ever sold furniture or clothing at a thrift shop?
I never understood the commission percentage on the sales price of a home. Is it more work to sell a $600,000 home than it is to sell a $300,000 home??? Seems like a flat fee would be more appropriate in most markets.
I would suggest that it is much easier to sell a $600k home that is priced reasonably in a healthy market than a $200k home that is priced slightly above what similar comparable homes sold for in a less healthy market-- yet the easier sale earns double the commission. No other industry gets away with this.
Believe it or not. The higher up you go = less work. Most $1M homes take care of their houses. They are proud of what they are handing off. More transparent and amenable to fix something.
@@paulbailey4843 yep. That's my point. Why does it cost twice as much to sell the more expensive home if less effort/time is involved to do so? Never understood that.
flat fees are also on the exclusive listing agreement that the owner reviews and signs. The listing/sellers agent does go through the entire contract and the owner has a right to a copy within a day of signing... In the end, the owner realizes that a higher percentage other than a flat fee will work for him/her...
@@gabequezada2066 wow. What a leap of logic to assume that because we are compelled to sign a contract with an agent for 5-6% to access the MLS, that in the end we realize it was worth it. I certainly didn’t feel it was worth it the 7 times I used an agent. In fact for me, the last three purchases were private transactions - using only attorneys and home inspectors - and these transactions were by far the smoothest.
Thanks for your honesty and objectivity. Most realtors over the last several days have simply denied any wrongdoing, blamed everyone but themselves for past industry practices, and are trying to figure out ways around the new imposed restrictions so they can keep the same commission schemes in place. God bless them because if things don’t change there will always be more attorneys and more lawsuits. One of the biggest complaints I’ve heard from realtors is that this isn’t good for buyers. Well, that’s because this is a NAR settlement with seller plaintiffs only. There are class action lawsuits on behalf of buyer plaintiffs already in the courts. This is the tip of the iceberg and even more changes are coming down the road for agents.
FINALLY!!!! An honest and transparent agent who truly understands the real estate agent value proposition. Not surprised that he is also a CPA.
Thanks! Value value value. People mistake being busy with value. I think we have created a lot of busy work but not focused on value.
Let me explain to you what it was like for my friend to buy a home in the UK where they don’t have buyers agents. She and her husband had to call every estate agent, a.k.a. Listing agent to look at a house. Half the time those agents wouldn’t even return her calls! Then they had to negotiate the sales price and set up their own inspections and Navigate the whole process entirely without representation! It totally sucked.
The home selling process works because of the current model of buyer and seller agents. It's going to be chaotic like you describe above without this model Existing home sales may drop considerably. Most people don't care that much about the 3 % commission issue (and it's actually as low as 1% today). This is an attack on the American Dream by making buying a home more confusing and scary.
It doesn’t have to work that way. The listing agent works for a brokerage. The brokerage contact number should be listed so that the call comes to the brokerage and they can assign an agent to meet the buyer to show the house.
@@logicrules4033Most agents don’t “work” for a brokerage. They’re independent contractors that hang their license under a brokerage. If someone calls the brokerage main number and wants to be shown a house, who is going to do that if the listing agent is not available? Part of the NAR Settlement says that agents MUST have a buyer representation agreement signed with a potential buyer BEFORE showing any property and that agreement outlines what their fees are for their services. It seems likely buyers will have a hard time finding agents willing to run around and show houses with no buyer representation agreement signed because they will be working for free.
I don't know about other states, but in NC the seller always had the option and opportunity to set the commission split to the buyers agent for any amount (including zero) in the listing agreement. It's completely transparent here, and we're doing alright with 50/50 or 60/40 ish splits. If I've read the NAR email correctly, the commission splits aren't going away. Only thing changing is communicating the split amount, if any, on the MLS for every agent to see. I have a feeling that the split will be communicated at the point of scheduling a showing prior to the home tour, and that's why NAR wants a buyers agency before the first showing.
My husband and I have an amazing buyers' agent that we have used to not only buy houses, but also to buy land here in Texas. If you buy land in Texas, if you don't have a great agent, you need a real estate lawyer because there are a ton of pitfalls that a normal person won't even think of. That is the value an experienced agent brings to the table. They help you avoid serious financial and legal problems.
What is his or her name? Do they work in the Hill Country?
No our agent does not work in the Hill Country.@@VishalRaoOnUA-cam
Wow. The most honest realtor I have ever heard speak. Your hired. Hear me out. What if I paid you a retainer. Of xxxx. And then I paid you xxxx for every 5k down you negotiate the price for me. The buyers agent needs to be in competition against the seller. Every transaction needs to be a battle to the bottom not the top.
Ty! Very interesting. I’ve thought about this. Not convinced anyone would pay a retainer. I like the direction though especially incentivizing agent to save money.
@@EthanFlynn there are buyers like myself who really care about the bottom line, and feel there is a massive conflict of interest in the seller paying the buyer to purchase the house. I buy multiple smaller properties with cash and finance larger properties. Lots of people like myself that want someone 100% battling for our best interest.
You are already ahead of the game. You are genuine and self-reflective. Show this video to your new clients, or leave it on your website. People appreciate honesty. Also, people are still coming to the Nashville. Concentrate on showcasing Nashville. GOOD LUCK!
Thank you for the kind words. I do try to stay ahead of the curve. Maybe that’s why I like forecasting so much!
Sounds like a good service many can benefit from
Awesome. Thanks for the feedback.
Pretty soon they’ll be able to get rid of sellers agents too. Also in my opinion buyers agents weren’t incentivized to get a lower price with the % model …. Maybe with a smaller fixed fee agents will be more incentivized to move inventory thereby making housing a store of value like it used to be rather than a speculative investment?
I agree.
I think the lawyers will be the winners here.
People should be sick in paying property taxes every year .
I know right? It equals the seller commission EVERY year!
finally an honest realtor on the NAR issue. Bravo Sir!
Thank you!
I’ve got to say ,First Thing is How much I appreciate your honesty 👍. This is another weird hiccup in the real estate market and I truly understand what you’re saying here. I’m so sorry that this is happening in the Business you’re in. I’m pretty sure that your brainstorming will work out because I find you to be a very intelligent man.
Just keep being Honest and I believe that you’ll be on the right track. Thank you for a midweek video. Good luck as always. Blessings,Carlos ✝️🙏❤️😊🇺🇸
Thank you Carlos! Always appreciate your encouragement.
Great honest and candid views! Good luck to you and your business Ethan!
Thank you!🙏
Great job on sharing your heart and perspective. It was refreshing to hear a fellow agent prioritize the client and embrace an unknown future. I believe the best is yet to come and am excited about what can come as a result of the impending changes.
Great points! Thank you for sharing your views. They are thought-provoking.
Thanks for watching!
Thank you for that perspective. Good luck!
There’s inherent conflict against the buyer- as long as the sellers or buyers agent is getting a percentage of the selling price - there’s no incentive help buyers reduce the price of the house.
Its so refreshing to hear honesty from someone on the agent side.. as long as you have this you have strength and value
Sorry to hear that, you're a CPA you'll do fine
Thanks!
Amazing Video Ethan, I always love how candid and honest you are! I've been curious about how this will affect buyers in the future. I've often thought that a buyers agent deserves the 3% for putting up with all of the crap us buyers put them through when shopping for a house but it's not always the case. With so many online services to help buy a house, it also seems like a large reason buyers agents is also to just get access to the MLS which hardly justifies the fee by itself. Now that things are changing, I'm wondering if that will negatively affect buyers as their agents may not be so invested to work with them with lower commissions or perhaps there will be have to be a fee paid to their agent via their mortgage vs the sellers equity.
Thanks Garrett! I do agree the amount of work agents put in. Curious how much is manufactured vs true value add though. The whole experience should be easier for buyers.
Real estate agent is a dying profession. Glad you have the foresight to “reinvent” yourself
Travel agents died as well.
Just to let you know, most sellers don't own $500,000 homes. Agents that work with the average buyer will be affected even more. Also, the average or low-end buyer typically can't afford the extra cost. So, whose really suffering here! We'll see!!
Most buyers won't hire an agent. That's the way the rest of the world works. Homes still get bought & sold. The U.S. system is illegal (violation of the Sherman Antitrust Act).
Thank you so much for this video. I have watched 4 or 5 other videos on this topic and didn't understand it. Now I understand what this really means. And I hope you do well adapting. Actually you will probably do well, because the way you explained it I think people will trust that you will give them a fair rate.
Do you think that some Real Estate Attorneys will start to offer some of the duties you describe that enjoy doing(providing data, negotiating, hitting contract deadlines) for buyers since buyers are already used to paying a set fee to an attorney? Or perhaps some buyers agents, becoming attorneys to offer a hybrid service?
Very possible. Makes sense. The data and navigating the purchase is what people need. Not help finding a house. Or showing.
I think we should charge buyers a fee every time we show them a home and maybe we can even set it up for you know tier one is just an afternoon tier 2 you get a week maybe tier 3 you get two weeks and we'll just keep charging buyers that don't actually close homes lots of money
I have always felt the buyers agents are the ones actually selling houses. Selling agents provide straight forward service that should not be a % but a fixed fee. IMO
I can see that.
Good observation!...The listing agents put the property on MLS, and sit on their ass until the buyer agent sells the property...If there ever was a need for a fixed commision, it should be for Listing Agent.
Your content has been excellent! I bought in 12 south a few months back and if you had an option to buy a fixed rate analysis of the market/house, I probably would have purchased it. My friend was my buyers agent and pushed a concession at closing but if not, the agents would have made 70k for doing minimal work, pretty insane. I think you providing fixed pricing for strategic analysis is something that is much needed in the buying process.
Amazing. Thank you for the feedback!
So now the question is, what's the value of NAR?
What is the value of NAR?
MLS
WOW, you are a special person to be so honest. I have my Real Estate license but don't practice anymore. Everything you are saying is so true. I was lucky when I did practice because for some reason all of my deals were listings except for 2 buyers agencies. Even I don't understand that one. Good luck to you. I wish you all the best!
Thank you Cindy!
were you saying these things prior to the settlement ?
The settlement was a great opportunity to reflect on the value I provide.
Very fair overview of the current situation
Thanks. 🙏
You are right. Only list agent has better info about the house for sale. That is the reason we always use list agent to be our buyers agent. In this case, the list agent gets full 5 or 6 % which is unfair (too high). But that is the system.
I think theres a large population that operates like you. And the business model should change to reflect that.
Other professionals offer flat fee service. Price your services appropriately for your time.
Ethan. I've listened to the end
As a soon to be seller, in an in-demand market, I could probably put an ad on NextDoor and have a dozen people at my door the next morning. BUT that discounts the listing agent and buyers agent knowledge of the process. You are offering a service to navigate that process, including the negotiation.
Price your services for your time. You are entitled to be paid for your expertise. In light of the changes, I have been trying to work out what is fair compensation to the buyer agent in order to offer that as a concession. (But I am leaning to $ amount rather than %)
When I bought in 2002 I had a buyers agent that I paid $4000 to on a $160K purchase (Seller was FSBO and using an attoney only). I have no idea if that was a fair price but it freed me up from all the stuff I didn't know. Don't understate your worth as a professional .
Good luck with your new model because you are completely undervaluing the part of the process that you're good at. Who cares what the cabinets are made of? What matters is the deal that the buyers get themselves into and have to live with. Listening to you, I'm convinced you're going to undersell your services. Please don't .And as far as the sellers winning in this settlement? Without a good agent on the other side, deals are going to fall apart, take longer to close, and be subject to buyers remorse litigation later. No, nobody wins in the settlement except the class action lawyers.
This is none news except for remax, KW, etc big name agencies. Independent and small agencies always had flexibility on commissions....
There comes a time in a career when one needs to pivot. It sounds like that for you, it may be for me. But don’t forget, you are a superb content creator.
Always find your content valuable. I think you could provide a service that would benefit buyers. I am glad the real estate commission structure is changing, but sorry it is effecting you. Good luck out there.
Thank you!🙏
Out of 7 purchased properties with the same agent, I've called my agent to set up showings each time. She's knowledgeable and amazing to work with however there is no one who works faster or harder at getting into these properties than me so I'm all in for the change. I am more than willing to pay on either side of the table however accordingly.
Yeah I think this is one of the problems is the inability to get in to see properties. Many people don’t care they just want someone to open the door.
6% was totally unfair I feel. Especially when the home basically sells itself. I can see paying 5k to an agent who gets us an amazing deal, possibly even helps with an assumable mortgage.
THIS! I would willingly pay a fee to any agent that could find me an assumable mortgage. Majority of them don’t even know what one is or acts like they don’t exist. They don’t want to do the work to find one. 😩
lol yep. the homes literally sell themselves now
Obviously some need help but with a short supply homes often sell without any help.
@@raymond_sycamore
I can help with that 🙂
@@MelieSue We know! Trouble is buyers cannot afford to buy out the seller and wait the 45-90 days to get these to closing! I did one last year. A VA deal and it took the buyers bringing the equity the seller earned and waiting almost 65 days for Pennymac to agree and to close it. It took calling the CEO of Pennymac and speaking to his assistant to get it done. Lenders don't really want to do these and it is up to them to honor and accept the buyer. Its not as "easy" as you think. I did another with USAA. Went under contract in April took to August to close. Most buyers do not have the 100-200 K to bring to the table to get these deals done.
Firstly, if I were a buyer, I’d be very wary of having the seller or their agent spoon feeding me info on the house because fact is there are shady sellers as well as list agents who will turn into used car salesmen as soon as a buyer walks in the door. You, as the buyers agent, should be knowledgeable and experienced enough to help your novice buyer not get taken by deceitful sellers. Sure, not all sellers are deceitful, but fact is you have no idea if the one your talking to is or isn’t a good guy. Another consideration is the buyer will now need to pay you directly for your help on a house that may not close because you can’t waive the fee for assistance you’ve provided. This isn’t the case in the current model, if the contract falls through, the buyer isn’t paying anything except possibly an inspection fee. Sellers paying buyer commission also avoids putting more closing cost burden on a buyer with tight finances. What really should happen is the percent model should die, everything should be a fixed price, back when houses sold for $100k, 5 or 6% was reasonable, but with prices at $400k more, 6% is a ton of money.
I find this argument interesting. A list agent will be shady so hire another person who gets a large cut based on sales price who won’t be. 🤔
Most typical realtors don't even know the data very well and don't effectively negotiate because they never have strong willingness to take a chance at losing the deal. Their primary goal and incentive is to close the deal, not to get the very best deal for their buyer. Especially if it's a high value home with a 3% commission to BA. They ain't losing that deal. They're actually negotiating with their own buyer client to justify the seller's requests.
If you let the buyer find/view the house directly through the listing agent, and then you help them write an offer...they may sue you for "procuring cause". Correct?
Not if I’m not representing the buyer. I am not accepting compensation from the seller. I’m simply sending an invoice to the buyer that can be paid by the buyer at close.
Obviously I’m not an attorney but procuring cause from my understanding is a dispute about what commission the agent is entitled to.
I was watching a documentary on Hulu regarding the house market. I think there's is different in Canada buyers need agents Home sellers don't. So the crazy thing that i saw the buyers agents avoided showing the clients a house that wasn't offering commission or didn't have an agent. Cut throat idea this may happen here as well.
What is the documentary called?
@alyschajohnson6668 I don't remember the name but many home industries outside the US already do this Also Puerto Rico.
I know but the doc sounds so interesting!! I was thinking about downloading Hulu in order to watch it:(. Is there no way you can remember the name of it??
@alyschajohnson6668 This is part of an Article the Documentary I can't find i wish there was a list of things i viewed on hulu like a library, but there isn't. (Some agents may also choose to prioritize their fees over all else, and may not show properties that offer less than the usual cooperating commission. However, a good agent can implement a marketing plan that will help the buyer get more money.)
For all the paperwork and the contracts and legal stuff, it would be... not only more affordable but preferred (in my opinion) to have a real estate person handle as opposed to a lawyer. I don't like lawyers. I'm sorry. I have never met or used a lawyer that hasn't had their eyes on my $$$ instead of helping/assisting me with something they are skilled and experienced with. I'm almost to the point of going out into the woods, building a log cabin and living off the land just to avoid humanity because all of this legal, expensive crap is just too much to deal with. I never went to college. There's reasons for that. I don't have the brain capacity to do what others can do. I'm no simpleton but I'm also not that smart. I for one value real estate agents and appreciate them.
“Paper work and contracts and legal stuff” is a boogie man. Unless you are doing a big commercial deal or a creative deal with many moving parts, all you need is a solid PSA and a reputable title company. I’ve bought, sold, wrapped, sub to, wholesaled and owner financed close to one hundred transactions and any realtors involved in the deals were basically hitching their wagon to our hard work and getting scraps for nothing.
Key 🔑 is saving the buyer money - if you can show that, people will need your service
Gloom and doom
Sellers that seriously want to sell a home will pay to bring a buyer
Developers offer 5-10% commissions for a reason, move pruduct
Sellers have offered flat fees and 1% for years so it's a free planet
I prefer to pay and get better service marketing and talent like any business
What is the value of a real estate coordinator vs paying a realestate agent doing the same work?
Well then buyers will need to go look on there own and are they going to write up a contract and make appt to go see homes on there own? Or are they going to try and make the listing agent do all the work for way less money. nobody’s gonna wanna be a realtor why would you, you have to use your car? You have to pay for a bunch of expenses and it’s very stressful. Maybe people should just sell their own homes then they’re gonna hire an attorney and Attorney is going to charge them way more than a real estate agent would. Contracts in California are 26 pages long. And when buyers agents write offers they are overly aggressive. The listing agent protects the seller from these crazy realtors that are overly aggressive. This is gonna be fun to see the Kaos that will be coming.
Great video. If you feel you don't offer any value then don't get paid.
success is about adaptation and you will do better with this model….. from my perspective this model only helps buyers agents from wasting vast amounts of time unnecessarily without compensation
I hope so. Thank you!
You could rebrand your business as “buyers services” residential and commercial the cost of selling/rolled on to the buyer just got too much!
👏 👏 👏 👏 Great content 👏 👏 👏
17 years in RE here. I think this video is ridiculous. So little experience yet so many words of wisdom for tubers
commission is negotiable.. always has been.... where is 6% set in stone? Not being confrontational here but this is a fact... As well, buyers fee will not disappear. It just can not be posted on the MLS but it can be on the businesses website or the website of the specific agent...
God bless you buddy! 🥰🙏💕💕
Thank you!
Redfin charges 1%. Has for a while.
But , all other vendors in the sales transfer gets a set fee. Why should realtors get a percentage? Having both buyer and seller agents getting paid on closing almost guarantees that the agents need to get a close a lot more than getting their client a better deal.
Agree. I think incentives are misaligned.
According to the new book, The Bubble That Broke The Bank, the coming real estate crash will create new problems for realtors. As billions are vaporized by the crash, the market will shrink. The coming AI revolution is already here and now sellers can access buyers and close with para-professional AI real estate teams. The UK firm PurpleBricks is the future model of the new real estate on-line firm.
Buyer's agents are not really necessary. Because of high Realtor commissions, there are peripheral real estate businesses with their hands out for a cut of a Realtor's commission. Staging and professional photography were never a thing when selling a home. Today if a Realtor doesn't provide those services for a home seller they're not competitive. It used to be so much easier and faster to sell homes before the glitzy glamour bloat in recent years.
I have never been a fan of real estate agents, But the Listing Agent is the one who should get a small flat fee for Listing and advertising. The listing agents put the property on MLS, and sit on their ass until the buyer agent sells the property..!!!.If there ever was a need for a fixed commision, it should be for Listing Agent.
Yes, they’re the middle man, it’s not their commodity
We shall see how well the houses sell themselves 😅
Time will tell. 🤷♂️
A good priced deal is a deal - it will sell itself. If sellers are pumped up by agents on some unrealistic BS, then it won’t sell. #offmarket
Where do you live?
All the discount realtors in San Diego suck.
You see a lot of 1% listing and they never sell because the agents don’t work
Real estate is a perfect job for former sex workers or prostitutes. You you have to see as many clients as quickly as possible. You have to get them in and out as quickly as possible. You have to get the most money as quickly as possible...
0:51
Don't you think the buyer can pay your fee instead of the seller. I think it's only right. Why should a seller pay both sides. Both have an advantage. The buyer agent is doing a service for the buyer and the seller agent is doing something for the seller. Just get a contract with your client. I'm selling and I won't offer the buyer agent anything. If I did, it would be a flat fee, which has always been the most fair for buyers and sellers. The work is likely the same for a 100k house as a 1M house. Why the treasure trove for scoring a high dollar asset. It's never been right as far as I'm concerned. There needs to be a purge of the dead wood uncommitted weekend realtors anyway. Maybe this will clean up the industry a little, I hope so.
Absolutely. I think buyers should pay the fee. And it should be fixed price. Having a percent of the sale incentivizes higher price. I’m not sure how having a “fiduciary” duty and being rewarded for more expensive houses makes any sense. Incentivizes need to be aligned for buyer.
Bro, it looks like real estate is much different in ny and Miami. For someone to not use a realtor is asking for trouble. Everyone is trying to eat..... and a buyer wants to jump in without representation? Lmao As a top producing listing agent id run circles around the buyer when it comes to negotiations. They'd feel like they won and come to realize a few weeks after closing how much they lost. My fiduciary duties are to my seller. Not the buyer.
No doubt. I wonder though why you pay buyer agent a percentage of sales price? Surely it’s not to drive up the price? Incentives aren’t aligned for buyers in the process.
@EthanFlynn i do agree that the system isn't perfect but the currently system has been the best thus far to minimize margin error for those unprofessional agents. I don't think it's driven up the price because the market speaks for itself. We live in a capitalistic country and if the buyer believes in the price then they'll make the purchase. If buyers don't believe in it then the sellers will have to do the price in order for it to sell.
@EthanFlynn and when it comes to percentage..... that's always been negotiable. Imo a per hour rate will be horrible in order to truly get paid for your work. Not only that, but it can easily be manipulated by agents and by buyers. More lawsuits can come about as well. I can see agents putting in unnecessary hours and buyers not paying the agents for their time as well. As an agent, we all know the buyers never see the work we put in. They honestly believe we just open doors and that's it. A great portion of buyers last years with us showing houses and never getting paid. I myself am a listing agent and the times I've worked with buyers weren't fun for the most part. Buyers don't realize that you've been showing property for hours prior to meeting up with them and some still disrespect the time you've made for them by going with another agent.
@@clo-br3oy no doubt buyers waste agents time. I agree. And hourly also isn’t a good form of compensation. Fixed fee that includes a number of showings makes sense to me. The best value I provide is negotiating and using data driven approach has been a huge advantage.
@@EthanFlynn I can see that 👍🏼
Sounds like you don’t value yourself and the work you do. You are in the wrong business to begin with.
This guy has sold 10 homes and wants to talk about his value lol! You have to love the internet lol!
You’re hired!
Yes!
Buyers agents have saved buyers far more money than the 3% commission. A buyers agent is worth every penny.
They absolutely can be gold. But I don’t think that’s always the case.
Lol
Agree that buyer agents can be valuable to the buyer so let the buyer negotiate and pay their own fees. That’s what the settlement is expecting.
4 to 5% is the norm not 6%
6% is pretty common in Nashville.
Says who? The average person does not know they can negotiate that fee. I’ve NEVER met a realtor that said “btw my fee is negotiable.”
I don't hear him bitchingnabiut leaders fees
See Ethan’s problem is 2 things (although he makes some good points) He is NOT a seasoned realtor the guy is hardly selling any houses. He has the experience of a rookie you can see his number of sales online. So he is not going to provide much value as he basically told you just comps. Also he works in a Higher market price.so yes on top of his general inexperience he is well over payed for HIS price point and VALUE. Ethan has basically sold 10 more homes than your Grandmother.
Good riddance. Seriously.
No disrespect when i say this, but you don't sound like a salesman. You sound more like an appraiser. Again, no disrespect when i say this.
None taken. I don’t think of my self as a salesman. Interesting you say that. I view myself as someone trying to assess the value of a property and then get a better price for my buyers. So I guess appraiser fits lol.
@@EthanFlynn 😆 great technique to have either way. Great way to stand out imo when working with buyers
Dude go get a real job. Buyers don't need agents. Sellers need agents. They have houses. Buyers just either want it or not.