Real estate agencies quit National Association of Realtors | FOX 13 Seattle
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- Опубліковано 8 жов 2023
- The multi-billion-dollar real estate industry is being rocked by one of the biggest revolts in its modern history -- multiple agencies have decided to quit the group that’s long set the rules for realtors.
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Investing in both real estate and stocks can be prudent choices, particularly when backed by a robust trading strategy that can navigate you through prosperous periods.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
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I bought a "For Sale by Owner" house 30 years ago, without any problems.
We took the documents to a lawyer and paid him instead.
We got one at auction , when you couldn't even find one through a realtor, could have made it quick 50 to $100,000 reselling it
Totally valid way to do it! Glad you had a good experience.
Exactly
I use title companies they provide a lawyer
are those sellers reasonable with their negotiations?
Its about damn time. Your cannot believe the fees real estate agents have to pay to keep their license. It has gotten out of control. Ban the NAR.
Without this insurance companies will no longer cover your house. You just pay for nothing
That’s y I’m no longer an agent. The shit is so unreal !!!
YES@@shamandalei9452
🎻
Nobody's making you join NAR.
Sold my house in the Netherlands- paid 1% commission. The advent of the internet truly transformed the industry there and made it much cheaper to buy and sell a house. In the US its highway robbery for every single service including 5-6% brokerage fees which is completely ridiculous. For a free market economy country, its not really a free market here. Monopolistic and cartel like behavior created and enforced through lobbying and the American people lose all the time.
yep. we arent truly capitalistic they really gotta stop saying shit that isnt true. we are more commie than anything nowadays
Please don't compare a socialist economy to a capitalistic economy.
@@edmund6392 you should read a little. Most western european economies are capitalist economies in case you didnt know. In a capitalist economy innovation disrupts incumbents introduces competition and makes processes and pricing continuously efficient. just like internet disrupted travel agency business, the internet has disrupted brokerage business in most capitalist european countries but not in America - the apparent paragon of capitalism where brokers associations through lobbying have kept prices artificially high..
@@edmund6392 The Netherlands as well as the Nordic countries all have market economies.
sellers have plenty of choices. FSBO, Zillow, Craigslist, direct mail, open houses, signs.
Its NEVER been mandatory to offer a commission to the seller or buyers agents. BUT If you want 500 or more agents working to bring you offers...you negotiate a commission...INCLUDING the buyers commission. You are offering 50% to any buyers agent after you negotiate the commission with your listing agent. If you don't want to pay a buyers agent than you can waive broker cooperation...WHY should a buyers agent bring you an offer for free?? ALSO, the other agen doesn't have to work in the capacity of a buyers agent...he/she can represent both the buyer and seller or neither. The whole concept that a seller wrongfully pays a buyers agent is ridiculously stupid. The seller is paying a commission for selling his property ( to join a network). The buyers agent is actually the " selling" agent. Buyers agent disclose they represent the buyer. It makes sense that offers are negotiated by both parties with representation and it makes sense that the seller pays a fee to Realtors for the completion of the sale of HIS/HER home.
To be clear: sellers were never required by anyone to have a real estate agent to sell their property. They can always put a sign in the front yard and sell it themselves. This is called FSBO or For Sale By Owner. There are even web sites available where you can list your property and get buyer leads. So happy day for everyone - especially the LAWYERS!
U can represent yourself in a court of law as well. You can even represent yourself on a VOTING BALLOT. About the only thing you cant do is write yourself your own medication prescription.
90% of FSBO’s end up w/ realtor. I wonder why 🤔
Hahaha how much do you thing the lawyer is going to charge...? What about the availability of lawyers, they don't work on weekends or evenings. What about marketing, advertising, signs, flyers, postcards, internet, etc
@@johnsnow145
Exactly...and the other 10% wait months and months...
@@johnsnow145 exactly!
What realtor in their right mind would allow their commission be negotiated to 0%… why would i even help you buy a house if i am not getting paid
Because maybe you're the selling realtor too, so you didn't do double work to represent the buyer, i.e., a foreclosure forced representation.
Why I left the business! Costs $3,000 a year to just have an active license here in CA! It’s insane!
Nothing is “buried” or “hidden” the exclusive right to sell agreement has all the commission numbers as negotiable items and is not buried under any other documents relating to insurance, taxes, or whatever else they mentioned in this video. This is a serious piece of misinformation and insulting to realtors.
Not when they band together to keep commissions high!!
@@alm4132 do you not understand the meaning of negotiable ? I can pull up MLS right now and see commissions rates of flat fees in the 1000’s, 1%, 1.5% 2%, 2.5% 3%. Where’s the collusion ?
People want to be the victim, they want to say they were scammed. Because they don’t have time to read the contract they’re signing. Or understand what they’re paying for in that 3%. That’s what people are mad about. I would love to see the real estate industry in like five years. Because buyers are going to be buying some junk houses. And they’re not gonna have anyone to blame but themselves. They are definitely get what they pay for then.
@@alm4132
THAT DOES _NOT_ HAPPEN.
@@MtnLakeKeowee SURE it doesn't,,,,,🤫
I'm not driving around showing people listings that aren't mine for the fun of it. 😂
Theirs literally disclosures about fees and how they are paid and then the owners signs those such said disclosures.....
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Real estate investors losing money is music to my ears. They are a major reason why the real estate market is the way that it is now.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
STEPHINE KOPP MEEKS is who i work with look her
Thanks for recommending i find her and left her message online
I was a broker years ago and would have left the national and local associations myself except that I needed to be able to access the MLS system. The reporter even said at the end that although the brokers won't require their agents to be members of the association anymore, the agents will still need to have MLS access so I'm not sure how they'll avoid the associations.
Companies can have their own listing on their own systems. It's the Internet age now. You don't have to depend on any one company to have your own listings. Heck it might even be easier to find a place you like with a better price that way, maybe.
Zillow
Back in the day, early 2000s they had the option where you could pay the MLS fee access, but didn’t have to be apart of the the NAR. You just needed the NAR to access their contracts. My first year as a real estate agent I wasn’t even a realtor, but I MLS access.
@@CaroleODell Zillow gets their listings from the MLS.
In my state, the MLS in online for everybody to see.
It's Funny people never question their lawyers rate at 33% plus expenses win or loss. A real estate broker charges 5% and everybody is having a baby. The more you mess around the more they are going to find out how vital good Realtors are to this process. Do I like paying all these high arse dues every year....heck no. Buyers will be the biggest losers along with the sellers cause agent's will not show a property they know they won't be paid for. Why would I burn all my gas riding around and help folks with 75 pages of contract just to get a pet on the head at the end. Even if I sold my house I would still have to pay a brokerage fee to the buyers agent. Otherwise you are wasting your time having anybody that's unqualified roaming through your house. NO Thanks!
EXACTLY!!!!
I know that's right! 🤣👏🏾👏🏾👏🏾
That is very correct. Before you show a property you find out if the seller is going to pull one over on you, the buyers agent and your clients.
Frankly I'm thinking about leaving NAR and tell them to shove their ridiculous contracts that shame buyers agents.
I think this is another communist maneuver to eventually capture those commissions by Black Rock etc
I listened to this carefully 2-3X, and I still don't know why agencies are quitting NAR because the reporter or her interviewees didn't state it. I guess it has something to do with the buyer's agent fee? Lousy reporting.
Darn, I was going to watch 😔
WERE SUPPOSE TO FEEL SORRY FOR THE BOOMERS THAT RUINED THE COUNTRY AND NOW THEY ARE COMPLAINING ABOUT PAYING 30K FOR OVER A HALF A MILLION BROKER DEAL. THESE PEOPLE ARE WORSE THAN BIPOCS
Big Litigation going on with these Real Estate Firms!
Because NAR has everything in the sales contracts and fees along with a buyer agent are all in there and they let this get that far when Realtors have to pay fees every year to be a part. Kind of like union dues. If your union rep does nothing to represent you why be a part of the union?
@@kevinclement9127 From the New York Times: More Brokerages Leave Powerful Realtor Group
Re/Max and Anywhere Real Estate, a brokerage franchiser, will no longer require agents to belong to the National Association of Realtors, as part of agreements to settle two class-action lawsuits.
If you are realtor! Get ready things are going to change. But if someone tells you that this is the end. Don’t be there friend. Because this is opportunity to grow very fast.
Commissions have always been negotiable. But down to zero, not that's a great idea. If you can find an agent willing to do the work for free, to pay out of pocket expenses, pay errors and omissions insurance, broker commissions, marketing costs, tangible costs, continuing education costs then yeah this all makes sense. Why not attorney fees as well? I'm sure home inspectors and appraisers don't need payment for their services. Lenders too.
I have no skin in the game as I'm retired long ago.
The old adage: you get what you pay for...
Nobody works for free 🤡
Realtors will continue to make 5-6%. Here is why; 95% of people will not want to sell their homes themselves. 95% of people do not want to go through the process of buying a home by themselves. The failure of the early versions of Zillow and Redfin proves this point.
Watch it change. More and more internet savvy owners are able to sell without the middle men raking in exaggerated fees for little work. There are people who buy new cars from dealerships and pay way too much, but they choose too. Houses are so expensive, people are getting smarter and not believing the smokescreens and double-talk of the realtors.
Crazy! everyone thinks that an agent doesn’t do anything lol. It’s a difficult business it all comes down to envy. You also don’t need a mechanic to change your oil but there you go 😂
Mechanics to charge commission.
Ridiculous comparison takes way more education to become a mechanic than it does to become an re agent
@@elperrroverde It takes a lot of education to become a competent agent - hence why 85% of new RE licensees leave the business in the first year.
@@elperrroverde And it takes way more education to be a teacher than a mechanic yet they make way less money. It's not about education. Nobody is required to use an agent to buy or sell a house so all this whining is a bunch of BS. Bottom line is people want agents to do their dirty work but want them to take a pay cut. L O f***ing L
Many of todays realtors have only lived on easy street not having to do much work but making extreme amounts of money since the pandemic housing rush. Now that things are returning to pre pandemic realities they cant deal with it.
Seriously! Zillow made it very easy for them.
Is that why 80% of realtors don’t make it past their first year? I guess it was too easy and they needed a more challenging job.
@@aracelimalone1167 No Good realtor uses Zillow! Zillow drives prices of homes up!
@@rstvanman1999 It's probably b/c there are too many realtors.
Easy! Pfff selling houses is not easy!
I am a Broker. The day I started my own company, I quit the NAR, GAR, etc. Why be independent and then force a boss upon myself? I watched those slimes sell properties they knew people could not afford before the last crash. They ruined lives by the millions for commissions. My Broker said their ability to pay was not our concern. I could not run fast enough. My "local" required agents to sign non-litigation against all other members. Never in a million years. Glorified used car salesmen, most of them.
I did the same. As a small office, it’s not practical to join then require my agents to join just because I’m a member.
Only a fool would use a discount brokerage.
If you are going to complain about something, complain about taxes.
On average, 85% of new agents quit after their 1st year. Most agent in America make on average $7000 per sale, yet a buyer will end up paying $800,000 on a 30 year mortgage on a house that cost $250,000.
Then they wonder why no one can buy a home
@@Antony..24 ask the federal government why. Ask Zillow and Blackstone why. They are the reasons why we are currently in this predicament.
@@itsmebedazzle It's good people are waking up this scam. HOA & Insurances is another big money scam.
@@itsmebedazzle No GREED is why..
Everything sounds like a scam until you understand it. HOA provide valuable service if they are well-run and if the homeowners attend meetings and care about the welfare of their community and make sure to protect the community from losing value due to failing infrastructures like recreational facilities or private roads or exterior maintenance. Insurance is a complete waste of money ... until you need it because of a disaster! Think, Anthony, think! @@Antony..24
You're NOT paying for the buyer's agent. You're paying for the listing agent. The listing brokerage OFFERS compensation to the selling brokerage to incentivize buyer's agents to show and sell the house.
This is plainly defined and disclosed in the legal contracts that the sellers’ sign. Homeowners’ are just trying to weasel out of fees owed.
You forgot to mention they have to "offer" that to access the MLS. 😅
Goblity gook. Overpaid. Seller should shell out 2%, max.
Sellers have to pay way too much in fees to both agents. All the fees should be reduced to 3% total for both buyer and seller agents, 1.5% to each. It’s going to change going forward, that’s for sure. I have a great friend of over 30 years who’s a top selling real estate agent, and he’s the first to say that he’s way overpaid for the effort he has to put in on a sale, and that it won’t last much longer.
@@993mike Are "some" agents overpaid for the value they provide? This is a very subjective question to answer. In my opinion, yes, some agents are vastly overpaid for the amount of "work" they do. But that is just one man's opinion, who works in the business. Generally those are the agents who you want to have sell your house. They should bring something of value that your run of the mill agent doesn't, in either superior marketing, a large client base, negotiating savvy or something else. Going with an untrained agent who more or less moonlights as a realtor, or trying to sell FSBO, will probably cost you on the quality of offers, sale price and terms. A good agent will be knowledgeable about and provide invaluable guidance on a variety of negotiable terms (other than sale price) to keep all parties moving along. A great agent pays their own commission in superior offers and overall time-to-close. There are so many potential landmines on the sale of real estate that I wouldn't suggest anyone who doesn't have at least some hard-won experience endeavor it to go it alone.
About 1.5% over here in the UK. American realtors are ripping-off homeowners.
No one cares about Redcoats
@@ptturboe5792bruh chill he just sharing info lol
The same UK that voted Brexit? 😂😂😂😂 your German monarchs are laughing at you
Hard to find an agent? Let me get myself off the floor...I just fell out of my chair laughing so hard.
This is all incorrect!
Correction realtor paid fees all year to be a part of the nar association.
The commission that’s is paid to the listing agent is for executing the sale of the property and is always negotiable then the buyer agent received compensation from the listing agent cause is already has being disclosed prior selling the property!
Please get your story right!!!!
My view is that this verdict will mean the end of the "buyer's" agent. No buyer will want to actually write a separate check to someone to "represent" them when they are buying a house. The listing agent for the seller will end up with both sides of the transaction and the negotiated fee will probably remain about the same. Agents who don't have what it takes to procure inventory will just do something different. Happy Day!
I would, I’d know that my Agent was Motivated to help me buy a home and review the paperwork. Instead of motivated to stick me with the most expensive thing possible to inflate his commission
I doubt it. Most buyers I work with are educated and understand the dangers of dual agency. In the end, consumers will decide what direction this goes based in what they demand. It will surely weed out lazy, useless agents on both sides which is great. Industry needs a purge.
I'm happy for this verdict. The NAR is extremely corrupt...but don't be surprised if real estate firms try to convince lenders to simply wrap the buyer's agent fees within the mortgage. So, those buyer's agents will still get paid at closing on the HUD-1 (or ALTA) statement from the funds released by the bank...while the new homeowner (the buyer) would be paying that buyer's agent fee over time within their monthly mortgage payments, with interest, towards the lender.
Possibly. It might just make more double agent transactions
And they will all work for Zillow.
Washington State is too expensive!
3% commission for homes in Bay Area and NY is insane, that’s lot of money.
Lately most of the work is done by buyer, search online to find the home they like, all realtor does it make sure documents are right.
They don’t even negotiate the price anymore.
100% I bought my first house last year and did all the work myself. Despite the fact I had an agent.....every house we toured I found online, and it seemed like the guy didn't know much about my area or state in general. Anytime I would ask for his expertise, he would say, "Whatever you think is best" worst agent ever.
@@poppyflower9003. Exactly. I found it odd the one we had “never” was inside the very large condo community we bought. The automatic “wow look at this place” I’m sorry, and your an area expert?
Good news for you. Now you are on your own with your honest non-profit good lawyer 😂😂😂
@@michaelvargas2005
I purchased two homes with two different agents, I found the home online, they made an offer, they sent me all the documents, they didn’t even negotiate for me.
All they did was suggested a price which was more than asking price, made an offer.
Realestate agents are still there.
Sounds like your on the F around and fine out plan which i am in 100% support of.. 😅
This should have happened a long tome ago. We need to get rid of all trade organizations. It is just as Adam Smith said. “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”
I mean…capitalism. 🤷🏽♀️
Greeds gonna Greed.
@@ec9833Oh Please, As if you’d do a single thing in relation to building a Free communist home. Sure you’d be happy to order the troops to murder some millionaire and take his home “For the people IE yourself” as they did in Venezuela. But you wouldn’t clear the land, lay the foundation, build the structure, inspect for safety. None of it. Lazy bones just want free chit
Excellent
The public doesn't understand that not every agent has listings under their name as a selling agent and at times you make your sales as a buyer's agent.
Back in the eighties, when my mom was a realtor, the commission was seven percent and the buyers realtor had to pay the sellers agent three percent of their commission.
I feel like if everyone understood the actual breakdown of everything it would put more context behind using a good realtor. All realtors are not built the same. And the realtor is the last person to see the pay check after several splits have been taken out. There is a lot behind real estate, I feel like social media and these shows nowadays make it look like realtors are just collecting checks when there is a lot behind it. Now don’t beat me up in the comments 😂
Totally agree! People asume that we only collect the check. Also, they think that each realtor gets the 5% commission ( or whatever it is , nowadays even 2% ) not half of it.
You’re right. I went and got my license to buy two properties. The learning curve was too steep.
So true. The sunk costs (in money and time) of driving buyers around and looking at all those houses, or deals that fall through, are just two factors that people generally overlook about the industry. Also consider that not only does the realtor get paid last, he doesn't even get paid until and unless he performs (sells the home). So he's carrying a great deal of risk on a given deal. If sellers were to pay for services in advance, and thus take the risk off the agents shoulders, I could see justifying lowering the fee to somewhere around 2%. But, by and large, if propositioned about writing me a $20,000 check today or a $40,000 check tomorrow and contingent on the sale of your home, homeowners almost always pick the contingency pay. The commission ensures your agent has skin in the game and he will perform better for you. The standard industry practice of splitting the commission is just that, a standard industry practice, because it works. Homeowners have always been free to negotiate these details with their realtors. Overall, I think it will be a good thing for the industry to spend more time explaining this to their clients.
Don’t trust the media...this is not a good thing! Realtors work very hard and have A LOT of liability for selling homes.
Quick question….
I now variables play a factor. But what is your annual salary if you sell just the minimum amount of homes?
As a realtor, if I go to sell one of my houses, I’m still paying a buyers agent commission. Why? Because doing that makes me way more money than it costs. A lot of buyers want to be represented and are represented and pushing the cost onto them makes the cash to close higher for them. I look at it as a sellers assist. If they had to come up with that fee, it’s going to reduce their buying power
Well said. This is how savvy sellers think about it and why the industry has settled around this non-mandatory practice.
Not being an agent it’s easy to cast stones and make accusations of what the agent does or doesn’t do.
How much did the lawyer make after the lawsuit?
News that isn’t. If National association of Realtors controls. Multiple listing service. Agents will continue to be members. Regardless of if their office/ agency requires it or not. The MLS is the market tool all agents use to list and find properties for their clients.
You said exactly the problem- everyone stays on NAR because it’s the tool everyone HAS to use. That’s a monopoly, and they maintain it through anti competitive behavior that prevents competing platforms from emerging
The National Association of Realtors does not control any state's multiple listing service. When I was an agent years ago, we were not required to join the NAR, and frankly, I never saw any benefit to joining. Having said that, it is not made clear in this video why many real estate brokerages are breaking away from the NAR, but I'm pretty sure it has something to do with the fees that agents do not want to pay. In addition, most people have no idea that a real estate agent is not automatically a "Realtor," as many people use those terms interchangeably.
Wait until yall find out how much they making off your loans. Yall have to be insane to think paying a commission is not worth it . Even lawyers on this case are probably walking away with 40% of that billion dollars. This is insane
This person get's it.
You're a "realtor" who can't properly structure a sentence. It's a low bar for entry.
@@JGable-um9vj Found the grammar Nazi.
@@JGable-um9vj I didnt knwo i had to be so proper for youtube comments . is thAt Betta?
Lmao I bet your two brain cells almost got fried trying to structure that sentence. @@JGable-um9vj
Makes sense. If a party is involved in a contract but doesn't contribute value they shouldn't receive points on it. NAR is pork belly in a contract between buyers and sellers.
From what I understand from the brokerages in my area, most agents are Independent Contractors that are able to use agency resources...so 100% of their income is from commission of a sale. They don't get hourly. They often work between 60-80 hours per week. I'm not in a position to sell a house (and with prices the way they are, not in a position to buy one either), but the system just feels very bad all around.
It's a good system. Good companies train their agents who are independent contractors and the company gets a portion of the sale as does the agent. My company provides many valuable services and support and on going training to keep up with changes in laws and technology, etc. This agents who are on their own with little or no training are risks to themselves as well as their clients.
"Often work 60-80 hours a week". 🤣😂😂. Sure......
Most of their hours go into trying to find leads to steal money from
How are they "stealing" money from "leads"? If they are assisting a buyer to find the right property and helping them navigate the buying process, do you call that stealing? If they help a seller get their home sold by listing and marketing it and advising the seller, is that stealing? Help me understand. No one HAS to hire an agent if they want to do it on their own. Since it is often one of the biggest investments for a buyer or seller, expert advise is usually extremely valuable. On average FSBO's sell far below what they would have NETTED with an agent - 87% of what they would have netted due to the wide net and advice the agent provides. Now, are you the sort that self-medicates when you are ill, the sort that self-diagnoses when you think you might have a disease, or do you consult a doctor?
@@damp_squid
@@damp_squid Have you ever been in this business? You sound clueless.
@@MtnLakeKeowee I'm sure the NAR would love to send you a reward for trying to defend them in random, 5 month old UA-cam threads
But unfortunately all their funds are tied up in settling lawsuits related to dishonest and illegal business practices.
Sure sounds like a group of honest, hard-working people
Commission has ALWAYS been negotiated right up to the day of closing! There has always been transparency. I really wish the media would get the facts straight before they report what they think the facts are.
This article title is supposed to be about Brokers not belonging to NAR so doesn't really have anything to do with commission but that's all they talked about. Realtors take on an incredible amount of liability in a transaction. Buyers and sellers have no idea about this. People can sue for literally anything and if so we have to pay the lawyers $5000 immediately (this varies with the errors and omissions insurance the broker carries) out of our pocket. That is our deductible we pay. We will never see that $5000 again, win or lose, that money is gone. Even if you did nothing wrong. We also lose the commission on that house. With all that liability I will never understand someone wanting to do this yourself (no different than trying to be your own lawyer and defending yourself in court, or operating on yourself). Stop complaining about paying a real estate agent or do it yourself and take all that liability on yourself. The amount of crap we have to put up with is astronomical!
In many other first world countries it’s law that the seller pays the listing agent and buyer pays their agent. Even in the US it’s always been optional and negotiable, most agents just do a poor job explaining this or fail to mention it at all.
Many other first world countries have universal healthcare and living wages too.
@@damham5689$30,000 commission jist for the sale of one property is way more than a living wage. Don’t even try to act like RE are in the same category income wise as a person who actually is getting payed minimum wages. All my RE friends are working and taking lavish vacations often.
It’s not as optional as you make it sound. NAR requires seller to pay buyer agents fees. They require you to do that on other platforms as well as long as you use them. And you kinda have to use them since they have monopoly over the MLS. This prevents alternative platforms from gaining traction. It also makes sellers agents steer from your listing if you don’t have high enough buyer commissions. There’s a lot more complexity to it that makes what they have done anti-competitive
But why pay someone 15K to input data into a form and take a few pictures when the seller can easily do this themselves. Same goes for showings? The closing can be handled by real estate attorney for around 2k and title company.
Also Why Would someone pay 15K to find a home for you when the buyer can easily do this as well and search themselves online and visit the property themselves?
Unfortunately for realtors , the consumers are not seeing the value or benefit to pay a middle man 30K for something they can do themselves.
I do feel bad for the realtors as I don't want anyone to lose a job, but I seriously I don't see the value of paying 30K for a middle man. Hence I have sold and purchased numerous homes within 3+ decades and never used a realtor to represent me, even before the internet was a thing.
I think most of the so called realtors will find out how many people resent them. Most of them are horrible, but you have no options.
She's right in her last comment about MLS. Retired now, but more than two decades ago, agents talked among themselves about opting out of MLS to collectively create their own multiple listing service (MLS) but it never got enough steam behind it to give it given its complexities. Had they done that, we would certainly be in a much better place today. MLS today is more of a behemoth than back then making it almost impossible to recreate another one in some of these markets. These MLServices are absolutely the primary tool of any brokerage agency and agent. It would be a collective fight for brokerages to convince the MLS to break their relationship with NAR. Good luck!
If you think that's a rip-off, study the banks amortization table to see outrageous interest rates lenders charge...
Usury is a sin
I am suprised realtor are still a thing, why should any seller or any buyer have to give a realtor a cut of the transaction on top of closing costs etc… I look at realtors like I look at blockbuster. It’s only a matter of time before some big corporation comes in and makes home selling/buying with the times.
Redfin tried to do that. Their agents are W2 employees and offer low commissions to sellers. However, they don't do much for the seller. They stick a lockbox on the house and tell other agents to call them for appointments. Not very good. Let's not forget Zillow too. But they also failed.
@@aristotlekumpis7095 Having a good experienced agent guide you through the listing process including marketing and searching for a buyer for you is worth more than most people know. There is a much higher rate of lawsuits with FSBO's because they don't know what they are doing and do not know the laws. Buying a house without a realtor to help you first to find the right house and then to guide you on the offer and then to walk with you step by step from Contract to close. No, people who think this is a cake walk and can do it on their own are the same ones who think all horses are just the same and all art is equal and anyone can be an artist. Yup, go ahead.
what is the valuable service that agents provide, exactly?
It’s easy. Get your license and find out
Warning: there is math involved
Anybody in this day and age who dont know the total commission is split between the listing agent and sellers agent
They literally are disclosed lol and you Don't Pay buyers commission, you pay the listing agent to sell your house, period
*see kids, this is why you sell your own home yourself and with internet you can just list your house for sale and wait for someone to find it.*
👍👍👍
And you will wait longer and get less money than if you hired an agent
And where do you list said house? Facebook Marketplace?
Corrupt market wants to not be held liable.
In my opinion, having to pay 5 or 6 percent of the sale price of your home to realtors is, with very rare exception, excessive. The forms used are publicly available and widely used. Market research, for those willing to do the work, is widely available, as are the contact information for most of the inspectors, escrow companies, and others you may need. Monopolized access to the most widely used and essential tools to selling a home (the MLS) seems to be a large contributor to the problem. To the extent realtors refuse to work with those buyers or sellers that are not represented by another realtor, they may be violating obligations to their client as well as potentially engaging in unfair competition.
You some excellent points. By and large, NAR has exercised an effective monopoly on the most important selling tools and I wouldn't mind seeing them being kicked down a peg or two. Are they worth the price of membership? Absolutely, but times are changing and I think in many ways, industry practices are playing catch up to a digital world and will be for some time.
The forms are not publicly available, at least not the CAR ones in California. Good luck closing a deal with some other similar forms. I tried that once and got laughed out of a deal. NAR and CAR lock down the forms and MLS access. Good luck closing deals without them, they are like a cartel. As they say, plata o plomo.
But do you know how to fill the forms out correctly so that you don’t end up in legal trouble yourself?
@@emilyfeagin2673 Most don't, that's why they use agents. Nobody said agents were useless, they're just incredibly overpriced for what they do.
In Georgia, we use GAR forms and they are the best for protecting both the buyer and the seller. Generic forms you buy from staples will not protect either side.
I have been in sales my entire career. People love to screw the salesman because they all think making deals is so easy, yet they don’t appreciate the work that goes into making it happen. They don’t understand that many deals are not consummated because of a few factors, some of which include unqualified buyers, folks that just like to talk to salesmen (a nod to GlenGarry GlenRoss), and people who are just are wishful thinkers.
Getting down to brass tacks, if you’re in the market to buy a home, will you pay someone a fee to find you a property and act in your best interest to negotiate a deal? It has been my experience that you get what you pay for. If you pay peanuts, you get monkeys. As it pains me to say this,the current status quo is fine by me. Maybe you can negotiate a 4% commission and split it as you see fit.
Today it is a sellers market so many think that finding a buyer is like shooting fish in a barrel. But times like this don’t last forever and it will eventually become a buyers market.
Negotiated all fees on my agents for years.
Google is being prosecuted for anti-trust, but NAR seem to skate by, year-after-year, despite blatant price fixing. In the UK, they pay 1-1.25% and they think that is daylight robbery. If house prices go up, why does the fee go up? Aren't the costs the same?
the fees are negotiable. NAR doesnt set the commission ... the broker does
DONT LIKE IT DONT BUY IT
Fee is a %.
There is no price fixing. I’ve charged 0% and I’ve charged 20%. Every situation is different.
@@herbankiddThe fees are NOT negotiable, but the seller is required to offer a blanket fee to all potential buyer’s agents regardless of who it is or what they know or do. That lack of negotiation (which would usually be done by the buyer) was one of the main arguments
This is going to hurt the buyers more than ever. Certain types of loans don't allow compensation, so things may have to change the way Fannie Mae runs. But here's the deal, people. Everything is negotiable! This does not mean the seller does not have to pay the buyer's agent. It just can't be published in the MLS. We can still negotiate the compensation, especially for a VA loan. If you want your house to sell, you must compensate those trying to sell it. Nothing is free in life, and yes, lawyers do charge. They are not free either.
Be real people. As a licensed real estate agent why would I work for free.
I see everybody on here saying realtors make too much money, because in reality it’s due to the high prices of houses now. I’ve never seen anybody complaining about this one houses for $200,000. now they’re half 1 million and everybody’s crying about 6%. Which the buyers agent only gets 3%. And then your broker gets 30% of that. And then if you were using any marketing companies to find buyers They usually get like 10 to 20%. Then you pay taxes. So say you made like $20,000. You’re only going to be taken home like 5000 of that. And you probably could’ve showed that buyer 20 houses for that. So think about that. Honestly, it’s not the commission problem. It’s that everyone’s houses are way too much. Nobody wants to hear that. I know it’s your retirement blah blah blah. Which honestly is the biggest scam in the world because the company work short for should be paying you a pension. But instead they’re making your retirement your responsibility. Good job capitalism ! But your house is over price that’s the problem. That’s the reason the commissions are so high because your house cost too much. People are delusional
That fee has always been negotiable…always…
Commissions are negotiable!!!!!!! Sellers need to understand this..."For Sale By Owner"
A lot of "realtors" looking for an exit....and/or a chance to cut costs in this crappy market. SayoNARa!
I fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $500k, but I'm not sure on how to mitigate risk.
Consider shifting your investments from real estate to equities. Severe recessions present market buyers with caution, since instability might produce short-term trading chances. Although this is not financial advise, it may be prudent to invest because cash is not optimal at this time.
Home prices, in my opinion, will need to decrease by at least 40% before the market can be considered normal. If you are unsure whether to buy a property or not, it is essential to get the advice of an experienced adviser for correct portfolio allocation. That's how I've managed to keep afloat for the past 5 years, earning approximately $1 million in return on investments.
@@AbdoolLogodesign I hope you don't mind if I ask you recommend this particular professional you use their service?
“Julie Anne Hoover" oversees my portfolio, simply do your due diligence. She's an extremely intelligent person, very thoughtful, cautious, and shows a great deal of expertise with over two decade of experience in her line of work.
@@AbdoolLogodesign Thank you for this tip , I must say, Julie appears to be quite knowledgeable. After coming across her web page, I went through her resume and I must say, it was quite impressive. I reached out and scheduled a call
I'm sorry, but they need to be paid.
NEWS FLASH…..real estate commissions have ALWAYS been negotiable, AND sellers have always known about what they’re paying, AS IT’S IN THE CONTRACTS!!
How many professionals work for free?
Bought and sold over 30 properties, never used an agent, my lawyer handles everything, I found agents to be annoying and not that smart.
Their fees are outrageously high. Good!
The MLS really isn't necessary to sell real estate. It's just the biggest of it kind. NAR has taken so much money from realtors in fees. It's about time for that requirement to over!
I had said this way in 2016 when I had opened relax in Haiti 🇭🇹..
FREEDOM! Finally!
What about the banks? You're upset with the realtor, but not the bank😂😂
They're lucky to even make $1,000 off of a house sale, it's not like rocket science their fees are insane
Agents can list the property independently on Zillow, etc. so why pay NAR for the MLS? Also, they want to keep the full commission if possible.
And Zillow sells those leads to real estate agents for a referral fee.
Poorly done article by folks who either do not understand the industry or do not care to present a balanced picture. Real estate fees have ALWAYS been negotiable. The buyer's and sellers agents generally receive a portion of the fee, and often the selling agent representing the buyer gets less than the listing agent, BUT could be offered MORE by the seller and listing agent in order to attract more interest from buyer's agents. Realtors and Rea Estate agents can charge what the market will support and what sellers are willing to pay. All the litigation in the world doesn't change that. The lawsuit was ridiculous, and was a power play by the online giants to decimate their competition: Local real estate agents who know the market and their communities. Some are better than others, for sure, but they can only charge what they can convince people to pay. I got out decades ago, so i have no skin in the game. What went down is very sad and how the media is presenting it in often abysmal.
So basically it’s having access to MLS that’s holding realtors hostage to the NAR??
With the internet and self-showings, realtors don't have do as much as in the past (pre-internet), but they are making record commissions due to the inflated home prices. Does selling a $1,000,000 house take 10-times more effort than selling a $100,000 house? No, it does not. A flat-fee for selling your home would make more sense nowadays. But then again, I'm not a realtor.
So what should the fee be? I’m thinking around at least 20 to 25,000. And that might not be a big deal for someone that owns $1 million house. But what about that young family that wants to upgrade and their house is only selling for 250,000. Should they pay 10% now in commission? Because if you’re going to have a flat fee has to be equal for everyone.if you take a $20,000 commission by the time You pay your broker, you pay your taxes, your pay all your marketing and all your all your fees. You’re only going to be bringing home between 8 to 10,000 of that. And God knows how many houses you show that buyer.
Fun fact: the only difference between a "Realtor" and a "Real Estate Agent" in my state is $700 a year. If all those $700 payments NAR collected went to hiring top notch attorneys, maybe we wouldn't be here right now...
The brokerages split the commission with the selling agencies and listing agencies.
It’s always been negotiable , good luck buyers if you are not paying for the buyers agent be careful when you sign contracts
So how is the buyer's agent going to be paid for bringing a buyer?
In England there are far fewer realtors, and commissions are capped at 2%. The listing services monopolize information illegally and bar relators and brokers who would charge less than the going rate. Getting listed should be a 1% cap in the U.S. and no commission on any property should be more than 10k. The system is absurd and causes relators to inflate and maintain home prices in order to protect their commissions. They violate the law by refusing to send low offers to the seller, and they collude to keep certain people out of specific neighborhoods.
Then people are going to have to negotiate the buying process without a realtor. Realtors should not have to work for free. Most people don't understand that all signs, all paperwork, all office space is paid for by the realtor, plus the realtors are required to take CE courses that they have to pay for, they have a lot of overhead. The reason for not having to be part of NAR is that is a humongous fee every year for the realtor on top of the rest of it. The only money realtors make is off the commission from the sale of the house, if they only sell 2 houses a year that isn't much money at all. No one pays a realtor an hourly pay. If realtors aren't paid to take buyers around for hours on end and negotiate prices for buyers then they won't be out there working for buyers, people will have to depend on the realtor that is trying to get the most money for the sellers of the house so buyers will no longer be represented.
"alot of overhead" must be the oldest excuse in the book cuz i see they make bank.
Source: I have a cleaning company that has dozens of RE clients
@@blipblop92 At least in California, for every agent who makes bank, there are probably four or five who barely eek out a living. The attrition rate in this industry, in our state, is HUGE. The agents who make it look like easy street don't usually tell their clients how long it took to get there.
JC can it no one needs an re agent it's that simple
What is so hard about negotiating? I'm asking $420k I'm offered $390k "oh no what do I do now?!" Come back with $410k
Sellers and buyers can do what they want on their own but this could expose them to legal risk. This is why agents work for their clients
You won't be sitting on first class by paying coach fares. 😂😂😂😂
The MLS/NAR relationship is designed to keep realtor's commissions inflated. It needs to go away.
In this day and age an agent is not required for a home/property purchase. My wife and i have never used an agent for any property we have purchased.
Yes all these fees are high way robbery. It is not necessary at all. Especially if a seller is trying to sell their home the amount of money spent is way to high.
Real estate agents punching the air right now😂
I’m not
I know what I’m worth
@@emilyfeagin2673 Riiiiiiiiight…keep telling yourself that😂
@EdgeTradingFX- 👏👏👏
It’s always been negociable
I saw this coming
So a 2.5% buyers commission is too much but a 40% lawyer's commission on multi-billion dollar settlements is fine. And paying like $550,000 interest on a $250,000 home is also fine. Lol. The system is way more fucked up but we all focused on trivial shit. Everyone shits on realtors but no one would last a week doing their job. Sales jobs are not easy. Try having your time wasted 90% of the time while using all your resources, time and money for $0 in return.
Honestly, the buyers and sellers should have been fighting the banks instead of this. After a 30-year loan, you're paying damn near double the price of the house. I'd rather pay an agent fee than 30 years of interest, costing upward $150,000 in interest.
Georgia is absolutely horrible... And the Real Estate Commission ran out of Atlanta is exactly what youd expect... Nasty with no oversight
The seller agent can also be the buyers agent. What happens then? Do they collect a huge fee from seller and buyer ?
Duel-agency has to be disclosed to both parties because there is an inherent conflict of interest between buyer's and seller's interest: Buyers want the lowest price, Sellers want the highest price. In cases of duel-agency, the competitive realtor might offer a lower commission % since they're not splitting it with a buyer's agent.
Since you are doing all the work, yes
No one works for free
If you WORK both sides, you get PAID for both sides.
I understand commission is negotiable but not zero, that’s just an exaggeration. Nobody works for free; even though agents are told commission is negotiable, there are those who will not take less than 6%, which I think is ridiculous. If your house is 500k and over, negotiate a flat fee from 20k to no more than 100k. The NAR, the MLS and ridiculous franchise fees in some cases are milking the agents who work hard. I’m glad this is happening.
It was always negotiable.
These commission vampires only quit because they. Don't want to catch any blowback from all these lawsuits coming their way.
I pay my lawyer his fees after selling a house and it’s nowhere near 30k!! Realtors should have a flat fee like 2-3k per home - that’s fair not 30k +
You have no idea how much work it takes to sell a home.
They're leaving NAR because they don't want to get sued.
Realtors provide a valuable service. FSBO's (For Sale By Owners) on average net much less than if they had listed with a good agent. Both Buyers and Sellers need professional advice in order to protect them financially and to help them avoid a legal quagmire with the other party. This lawsuit makes no sense to me. No one HAS to list with me - it's up to them and the commission is written in and agreed to by all parties. How much is being paid to the Buyers agent is published in the MLS and fully disclosed.
I’ve observed most of them don’t have college degrees (that’s too much money for uneducated) and the last two years I’ve heard a couple give out the worst advice just to collect a commission. “Now is a great time to buy, don’t worry about the rate just refi!” As a result I refuse to list any of our properties with a realtor and I ended up getting my license and will be listing them.
I can’t and won’t pay a realtor for something I knew I could do; passed the test the first time and look forward to never paying an agent to list our properties! I’m not a fan of the fees for the NAR or the MLS either and was wondering how this “relationship” is even legal as it’s a monopoly and almost seems like a form of racketeering.
In the UK the average commission split is less than 2% and I don’t care what anyone says NO REALTOR/BROKER deserves to walk with 3% of someone’s asset. I look forward to the future Change in the industry, if that means I make less so be it! These realtors are too fucking greedy and I’m glad the public is pushing back!
Wow you hate realtors
Did one sleep with your spouse?
If intelligence was measured by college degrees then I could see your concern. While I have an MBA I believe most agents who are motivated, hard working and intelligent, who focus on the needs of their clients, and are knowledgeable about the market are often great agents and usually a pleasure to work with.@@MrsDavis333
No lol I hate stupid people that don't see an issue with over charging clients. I'm not paying a high school graduate a percentage linked to the value of my properties for printing the correct forms. As I stated I knew I could get my license based off of how many dumb realtors I've met. The worst was one that had never OWNED a house, was just a renter. It'd be great if people could see their realtors credit scores as well. Why the hell should people be taking advice from realtors that don't own anything and have shit for credit scores. @@EnterTainment-vv1qs
Ha. What a joke. Seller has to sign Disclosure.. and 2 realtors lowballed my price to make that a quick sale. I would have lost $20 grand if I went with the professionals. what’s 5% loss of that to THEM.