NAR lawsuit Crushing Home Buyers and Realtors
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- Опубліковано 27 бер 2024
- The media has been telling you that home prices will finally be coming down because the National Association of Realtors had a lawsuit and now they can't charge 6%. But the truth is that real estate commissions don't affect home prices. So I'm going to tell you the truth about the lawsuit, real estate commissions, and housing prices that the main stream media won't tell you.
I don’t think that the rules will lower prices. In addition I think it would be malpractice not to tell your buyer client to add the condition in the offer that seller will pay buyer’s agent commission. However, endorsing channeling is both unethical and illegal. Agents that won’t show a house because the seller has decided in listing their house that they are not paying enough/any is channeling. The real estate community should not structure its fees to satisfy unethical and unlawful agent behavior.
There are just many things that could change it's hard to see what will really happen. If sellers don't want to pay buyers agents go forward then buyers will just have to pay it out of their pocket. And if they don't want to pay then they will just have to be unrepresented. And that will be bad for buyers.
Can't wait to sell my next home for alot less commision costs !!! This is long overdue in a grossly overpaid industry..
You never had to use a real estate in the first place. You can pay zero commissions and just do it yourself.
Excellent perspective that I have not seen in other videos
Thanks Darrell. Everyone else just wants to say prices will come down and realtors will go out of business. This whole thing has made people hate realtors and now everyone thinks they were over paid they should go away. So it will be interesting to see what really happens. I say that real estate should go on has it always has. But I have it felling it might not. It's going to be interesting.
i have always despised buy side agents. i trust sell side agents more because you know they are lying . with buy side you can't tell so its worse. anyway, i feel like this will make it easy to buy a house and save 2.5% by avoiding the bayside broker. i have already done all the work before, i know how to do it. the difference now is i dont have to fight the sell side agent that says the commission is 5% but if you say you have no broker then they take 4% so you can hardly save anything. now that changes. plus if i am selling a house, im not offering any commission to a buy side broker. who can make me? do you think the buyers won't show up now without me 'allocating money" to them? i think they will. to me as a home buyer and seller this is a game changer. if you have no sense and need a buy side broker i dont know what to tell you. yo are wasting your money. the only other tough thing is getting into to showings with no buy side broker. i will just call the seller and work it out.
I can see how you think this would work to your advantage. But, if you will be working against the seller and a sellers agent on your own. They don't want to help you get a lower price, they want to get as much money as you can. Just like you are saying as a seller you will not pay a buyers agent. You are not planning on lowering your price 3% go help buyers get a better deal, you are not paying a buyers agent because you want to make more money and keep it for yourself. So how are going to save 3% as a buyer if all of the sellers just think they are going to make more money? You are proving my point with your comment on how you will act a seller of real estate.
I love your content (recently FIREd to st croix) but disagree a bit on this one…I think just because something has always been a certain way, doesn’t make it the right/best way. For too long, many realtors have been more focused on their commissions than on their fiduciary duty to their clients. It is wild to not show a client what could be the perfect property for them bc the seller isn’t paying a high enough kick back. Under the current system,why would a buyer’s agent fight for the client to pay less when their pay is more when the purchase price is higher? The system is broken and hopefully this NAR settlement will force us to think of new and better ways to handle real estate transactions.
Oh, we do miss the USVI a little bit. Congrats on FIREing. Lots of people do disagree with my thoughts on this. But I think it's mostly because they want housing prices to come down. And, I'm afraid this is not going to do that. It is going to make prices go up. People have always had the option to buy and sell property without a Realtor. But, they find value in using them. We will see how it turns out. Thanks for posting your opinion, I appreciate hearing when people disagree with me. Especially when the comment doesn't start out with "you're an idiot...." 😅
Housing prices just continue to rise and rise. In NH they have skyrocketed the past 15 years.
I've been saying this for years and people keep telling me I'm stupid and that prices are going to crash.
@@TheRetirementality I’m not sure how anyone can afford it up here there are barely any high paying jobs.
@@OurRetireEarlyJourney Yea, I think we will continue to see consumer debt go up. I'm doing pretty good, but I am looking into moving to a lower cost country.
@@TheRetirementality Absolutely, last month was the first time credit card debt reached over 1.1 Trillion. With the average APR rate of over 21%, that number is going to skyrocket.
@@OurRetireEarlyJourney and next would come tapping into home equity but interest rates are too high.
The average Real Estate Agent salary in the USA is $45k/year. I don't get all these comments saying the industry is overpaid. I'm guessing everyone thinks all Realtors have the lives and incomes of those with TV shows. They forget that TV does not portray their local Realtors' lives. I am also surprised by how many people think Realtors should show properties, do their job, without even thinking of getting paid.... Everyone should get paid for performing their job!! A plumber charges $80 for just showing up and that is too much for just showing up, a teacher doesn't answer your calls at 8pm and that is unacceptable, they should be available, a Realtor doesn't want to do paperwork that he/she isn't paid for and it is outrageous.... I think our expectations are just wrong. Thanks for the video, sorry for the venting.
It's because the average realtor only does one to two transactions per year.
Realtors who are good will do ten or more per month. So a $500,000 home could make the realtor $10,000 after paying their broker.
$100,000 per month or $1.2 million a year is a lot of money.
There are very few Agents doing 10 transactions a month. You would need a team to do that.
@TheRetirementality Yes, you would need a couple of team members like any other business. $1.2 million per year is more than enough to pay a couple of assistants and still have $1 million in profits.
Realtors are way overpaid. In the next few years, as commissions collapse, we will see by how much.
@@scientificapproach6578 You aren't talking about the average realtor. Just google "average realtor income 2023" NAR says the average is $55K. That means there's a lot of agents making less than that.
@@TheRetirementality did you see where I said average realtors does 1 or 2 deals per year. That would mean they make less than $50k, are you saying you agree with me?
Why would any buyer save up thousands of dollars for a buyers agent to unlock doors? They're either going to pay the buyer agent a nominal fee like $500 or just go strait to the seller.
Ok, that is an option too. But, you won't find a good buyers agent who will do it for that. You could end up paying thousands of dollars too much for the house if you don't have access to comparable sales, you can't do a market anaylsis, you know how to do a home inspection, you don't know how argue an appraisal that comes in low. Buyers Agents do more than unlock doors. Experienced investors can do it themselves, but there are a lot of places for new home buyers to make mistakes. And mistakes cost money.
Sounds biased 😂
Yea, it's my opinion. It sounds like you have a differing opinion. I'd love to hear your thoughts.
lts his biased real estate background opinion. You are correct..
@@MikeHawk_007 People like to say I'm biased or that I'm wrong but every time I ask for their opinion they don't reply.
You retired after 4 houses? Was your day job McDonald's? Come on dude.
I said I reached financial independence after 4 houses. That means the rental income from my houses was enough to pay all of my bills. And yest I could have retired but I wanted to retire very well with extra income so I bought more houses and used my income to pay off mortgages. What matters is how much you spend not how much you make. So working at McDonalds or working on Wall Street isn't the point. Go check out my video about how I went broke at 38 and then retired at 45.