IS THE REAL ESTATE INDUSTRY CHANGED FOREVER? NAR LOSES 1.8B LAWSUIT!
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- Опубліковано 6 лип 2024
- Is the real estate industry undergoing a seismic shift following the recent legal battle that shook the National Association of Realtors (NAR)? In a landmark lawsuit resulting in a staggering $1.8 billion verdict, the implications for the industry could be monumental, prompting many to question the future of real estate practices and standards.
Join me as I delve into the repercussions of this lawsuit and explore how it could transform the industry forever. I’ll discuss the key elements of the case, and its impact on the NAR, real estate agents, and most importantly, on consumers. What does this mean for transparency, competition, and the overall structure of real estate transactions?
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Melanie Atkinson is a Tampa Bay Area REALTOR® with COMPASS (at time of filming with Smith & Associates). She is a full-time, residential REALTOR® with over 17 years of experience. Whether you are new to the Tampa Area or a long-time resident, Melanie is here to help you navigate the buying & selling process. This channel was started because Melanie loves to show newcomers to the Tampa Area, or those pondering a move, why it is such a special place to call home ❤️🏡
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The problem is that there is a commission based off the sale price of the home. It’s basically the same amount of work to sell a $200k as a $200 mil home. Also the standard 6% commission is insane imo. There should be a flat fee (that’s no where close to 6%) and possibly an hourly rate on top of that for actual time spent by a realtor in the home sale process…. There are a lot of great realtors out there, but the model for the industry is flawed because it allows for unchecked human greed to usurp what’s most cost effective for a buyer/seller.
Realtors do more than just put a sign in the yard or unlock doors. Depending on the situation of a transactions such as a home in probate, realtors sometimes invest a great deal of time. Not every deal is the same. Not to mention the fees paid to our broker, NAR, Local Realty Board THE mls Fees. We also have to pay to renew our licenses, pay for continuing education courses, no to mention what we put out in advertising fees and photography and so much more.
Everyone thinks its easy, until they have to do it. Sellers are in for a world of hurt...
I'm a lender and am so turned off by this market and how everyone is acting. The last few years were amazing for the real estate market however, no one wants to pay realtors and lenders for transacting the purchase of their home. They do not have money to put down, for closing costs, or paying for a realtor. Sellers feel like they should not have to pay for 2 realtors. It's all so frustrating to be in the middle and not ask them how they would like to work for free
It is definitely challenging on many fronts! My lender partners are dealing with some crazy things trying to get loans for their buyers. The people in our industry that work hard for their clients always weather the storms. Keep it up!!
That’s because no one is building homes to lower prices. Prices being high make the percentages the first thing they can control since they cannot build their own home.
Hi Melanie, I just discovered your channel and I watched one of your videos about why not to move to Florida. I can understand why people would not.But, I have lived in Florida for over 17 years as a renter. I need your thoughts on a few things for me if possible. Do you have an e mail address I can send you an e mail? Thanks
Congratulations! I’m a Realtor and this is the best video/explanation to the public in regards to this matter I’ve watched so far. All the best to you!
Thank you so much 💕
The way I understand it. The seller is not paying the buyers broker. The listing broker pays from the commission budget they received. They can pay any %. But as fiduciary duty, my brokerage will be not pay less than 3% to a buyers agent so as to help draw more buyers.
Exactly! The Listing Broker is agreeing to split the total commission with the buyers broker 🎯
That's called steering. It's a crime, in violation of the Sherman Antitrust Act. It's the reason the defendants lost in the Burnett v. NAR, et al case.
@@larryjones9773 IMO - I think that the issue would be solved by changing the commission into a fee where the amount is set by the state, like title, appraisal and other fees. Also, steering is used when referring to protected characteristics.
Well said! Great job making sense of a complicated bunch of issues
Great job Melanie! I'm an Associate Broker in PA. My husband watches your channel & showed me this segment. You explained things so well! We are definitely going to see some changes, but the world isn't going to end.
Thank you so much for watching and for the comment! We will definitely be ok 🙌🏻💕
Just a thought that I’m sure realtors won’t like. I pay my agent 3 percent not 6 which is insane. The buyer can pay their agent 3 percent. That seems more fair and reasonable. Just my humble opinion.
you can tell your listing agent that you will only pay 3 or 4% for the transaction . the agent can split that with the buyer agent. the 6% is not a rule . it is all negotiable.
I think 3% is still too high. It’s literally just a couple hours of work on either agents part. The average home price in America is $416k. A 3% commission would yield about $14,400… four about the 4 hours worth of work it takes a realtor that’s over $3000 an hour…. If they actual spend 8 hours helping sell/buy your home than that’s cuts it to $1500 an hour…. It’s literally insane hey get paid that much and we have to pay for it while they are off taking vacations with our money 🤷🏽♂️🥸
Agreed
Opinions are like A--holes everybody has one Rico its common to spend weeks and even mouths working with a buyer...@@RICO_SUAVE21
If you don't want to pay, just sell it yourself.
I just sold my Dad's house (he passed away) in Connecticut, I had to pay both my agent (who was fabulous and worth every penny) and the buyer's agent, who was in Texas. Not happy about that!
That’s a great point and definitely something the lawsuit addressed as well!
This video came up in my feed. Hey, great channel.
Thanks so much!
Flat Fee
Great job breaking things down Melanie.
I love the breakdown. Great explanation
The best video ever. Thank you so much. Greetings from Miami Beach!!!
thank you Melanie! that was an excellent explanation and great insight!
Melanie, excellent explanation, easy to understand .
Great video Melanie. So will the language in the listing agreements and contracts need to say something different? Is your office modifying contracts now because of it?
I’ve got over 25 years in the business. It’s been a while since I checked the numbers but most residential lawsuits come from non-brokers who are trying to represent themselves.
I have sold many homes and What you are not mentioning is the unwritten conversation that happens goes like this: seller’s realtor: “if you don’t pay the buyer’s agent 3%, they won’t bring clients to your home”! This is BS and fraud. The buyer’s agent should not ever get 3% from a seller for practically zero work! Every time I have negotiated rates for selling my home, my agent has always taken the hit on fees and the buyer always gets their 3%! Total BS. Glad to see this happening! I’m done paying such huge fees.
Great commentary and best breakdown of facts and history. Thanks
Thank you!
It's funny those sellers don't want to pay a selling commission, but will pay $900,000 on a 30-year mortgage for a home that initially $250,000. The sellers get the same curtesy when they become buyers on their next home.
Well said .... I'm in Virginia which is a 'buyer beware' state. It is scary to think that buyers would not be representative.
Its BS. 6% selling commissions is rip off when in the UK its only 3%. Sellers are being taken for a ride
I sold a 2nd home in April of 2023. I listed home at 2.5% Buyers agent ,which I was told is high for NJ. House was sold in less than a week. I don't work for free I would not expect anyone else to.
So agree! I rarely work with first time homebuyers because of the market I’m in (Punta Gorda). My very experienced buyers have no interest in buying without an agent. Yet, we are going to make it more difficult for first timers? Also, would love to see NAR require more practical education.
🙌🏻❤️
You are 100% right.
My only issue with all of this is the fees being a percent of the sale price.
Great video! I sold a home many years ago and the Buyer was a Realtor representing herself. I That didn’t sit well with me that I had to pay her commission.
Also, I bought a car once using an auto broker(yep they exist) and the dealer didn’t pay his fee, I did! And I was happy to, he did a great job! It’s not that different..
Of course Florida weather coming from the northeast is nice, but the traffic , crime and phonies are definitely non-desirable!
We’ll done video Melanie.
Thank you Doug ☺️
The problem with buyers paying for they're own agent is most of them simply don't have the money. They have to come up with the down payment that is a minimum of 3.5% plus there closing costs that can be as much as the down payment. Unfortunately if this happens a lot of buyers are going to be relaying on the agent that is paid by the seller to take care of them. Most of the cases will be ok but they're will for sure be buyers getting a bad deal.
Yes, totally agree! That is my fear for buyers
Love your videos. We all know that if 2-3% is not offered on the buyer side then they will not be interested in showing the house to their buyers. It may not be written like that but we all know how it works. I do agree that buyers agents do a great service for the buyers that need them but the buyers agent fee should be paid for by the buyer.