Realtor group could cut commissions to settle lawsuits
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- Опубликовано: 14 мар 2024
- The National Association of Realtors has agreed to a settlement that would cut commissions. NBC News' Brian Cheung reports on the decision and how it could affect homebuyers.
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#RealEstate #Lawsuit #Homebuyers
There's about to be a bunch of luxury cars getting repo'd 😂
😂😂😂
@@beaznuts I think that an ability to broadly show a flat fee or commission will drive out older agents....but I'm not sure what your spin was? I would love to hear it :)
@@chappybobappy Online is where 83% of buyers start, if they dont have an agent, they will call the sellers agents. We all know this - So we will all aim to become sellers agents. Current listing agents get their workload doubled. Lazy agents will fail out & young hungry buyers agents will soak it all up.
Finally, I hope the commission drops to 2%-3%.
Americans pay around $100 billion in real estate commissions a year!
The real estate agents have some of the highest standard commissions in the world. While commissions in many other countries are usually between 1% and 3%.
@@ttp8973 Theres also a million realtors - do the math, we make as much as anyone else.
The corrupt real estate industry … next joke ..
What a coincidence her brother in law is in such a high position
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How can we generate more revenue during quantitative times? I can't afford to see my savings crumble to dust.
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As a buyer in an already ridiculously over-priced market, there’s no way I’m paying 3% to a buyer’s agent.
lol seller will just inflate price by 3%. Also good luck paying agent when its not being financed anymore. All this does is make the money required to save for a home even higher.
Enjoy navigating the contract an addenda, the title commitment, the survey, the lender requirements; also enjoy doing your own leg work to find out if there is a pipeline, undesirable future planned highways or development that could get your new home caught in eminent domain in 3 years; or whether there is a potential for adverse possession of any part of your new property; encroachments; whether you are buying property in flood plain, endangered species area, a PID, PUD, MUD or SUD. Don't know what those are? Your Realtor would. Deed restrictions? Utility availability? Navigate the resale certificate and obtaining the HOA documents to review prior to closing? Get protections in the contract for a feasibility time, contengency clause, kick-out clause; did they provide you with a lead paint notice on a home built prior to 1978; did they provide you with a Seller's Disclosures? If you don't have a Realtor to protect you, I can guarantee you will eat that fee and more in other ways. Good luck with that.
As a buyer, you can add the 3% to your home loan and pay your own agent. Your agent picks you up in his fancy car, shows you a bunch of properties, takes you to lunch a few times, and buys you a housewarming gift at the closing, and then you expect the seller to pay your agent commission. In what universe does that make sense?
Next on the chopping block should be these ridiculous loan origination fees.
PMI…
Pay a realtor hourly!
Good. I’ll pay them for their 2 hrs of work
This encourages realtors to drag out deadlines and draw out closings. Is that what you’d want the housing market to shift to?
@@LBoubacar-lb2gw Then leave an honest review online and get a better realtor.
DO IT YOURSELF THEN.
@@LBoubacar-lb2gw Just leave an honest review on yelp with the realtors name and get a better realtor.
6% in US and 2% to 3% TOTAL COST to sell a house in the rest if the world. Does NAR being the largest lobby in Washington have anything to do with it?
No. What has something to do with it is the US is the only country where the government guarantees the mortgage bonds, and the banks have created the world’s most robust mortgage bond market. As a result we have a high homeownership rate. In the “rest of the world” you love middle class people don’t own homes in Europe and are facing a bubble in China losing all their value.
Finally, I hope the commission drops to 2%-3%.
Americans pay around $100 billion in real estate commissions a year!
The real estate agents have some of the highest standard commissions in the world. While commissions in many other countries are usually between 1% and 3%.
@@ttp8973 How do you know that though? The NY Times said so? They didn't cite any source - its just a vague round number. Here is the facts: at any moment before this bogus suit you could find a company to list a home for 1% There have always been 1% brokers. There also is no one forcing anyone to hire a firm for 5%, 6% or 7%. The premise are all false. Now, if you hire a lawyer, some cost more some cost less. People pay for performance. If a seller thinks a 6% broker will net them 10% more profit, then why can't they do that?
Finally, I hope the commission drops to 2%-3%.
Americans pay around $100 billion in real estate commissions a year!
The real estate agents have some of the highest standard commissions in the world. While commissions in many other countries are usually between 1% and 3%.
The NAR is a monopoly. An agent must be a part of it in order to work since they control the multiple listing service (access to homes). There is no other option. The dues are outrageous with zero benefits.
Agreed 👍🏾
Indeed. And they sell out data to Zillow and Redfin. Who are going to be overjoyed with this decision by the way. Then instead of just ad fees for agents they can charge buyers and sellers an online fee for a chatbot. Like getting your agent on “Wish”. Gonna be a mess.
You are misinformed. Anyone can hold a real estate license. You do not have to belong to the NRA or any association. You can sell real estate anywhere in the state you are licensed in. You can advertise your service any way you want, and with online marketing you can find listings through a number of free listing sites; but you are right, the dues are too much, and we get little for it. Now they've rolled us over in the clover with this settlement. Every one of those plaintiffs signed a listing agreement, agreeing to the fees. No one held a "pew-pew" to their head. And where are the damages? Did their homes get sold? Did each Realtor provide a service? YES! The NAR should have fought this all the way to the Supreme Court.
This is long overdue. Most real estate "professionals" are WAY overpaid. They do little or nothing to truly add value to a transaction. Most agents are "paint by numbers" drones whose real job is to open a front door, let the prospective buyer look around, then lock the door. For that, the brokerage gets paid outrageously well. It's always puzzled me why Google doesn't get into the real estate marketing business. Google could totally overhaul the entire real estate market for the better.
Shut up
No most agents are broke and struggling. Don’t let social media fool you. Now this will hurt on both sides
Commission of loans don’t add thousands of dollars to the price of the home. I have never seen the commission adding price to the whole loan, unless you get scammed.
The fact she says realtors with three syllables....😂😂😂
I have a colleague who has been a Rel-A-Tor for more years than I, and she says it the same way. It's embarrassing.
That’s not unusual. I hear it pronounced that way all the time
People are buying houses! People are making the offers and that drives the market up. The realtor is not drinking the market up. Buyers are driving the market up.
This is not good for buyers. Home prices will remain the same but now the buyer will have to pay additional for an agent. That price used to be included in the cost of the home and now it all goes to the seller.
Good
I don't believe the whole being included trope. In a hot market, most sellers will price that in
Don’t wanna pay a commission? Sell your own home.. easy..
It is easy I did it sold my rental just hire a lawyer it was much cheaper than a realitor
Yup did it twice! My equity is mine. Saved $32k on first house and $28k on second house. That’s where your eyes open. It is not a single digit percent. For many it’s several months’ net income.
Commissions were never fixed and have always been negotiable.
As an agent of 19 years, this whole thing is based on a false premise. There is never a standard commission, I often charge 5% or 4%, and others charge less. It vaires by location.
Also depends on the level of service the client would like 😂
Amen! same here! NAR is a good for nothing racket that I pay to for Dotloop pretty much
David, are you saying that if the seller is paying you 4% to list his home and the buyer agent demands 3%, you will be happy with only 1%? I have my doubts!
@@Gheorghe99 not how it works. We split the commission. Ppl can demand whatever they want. We say no. Lots of practice
And, many people don’t “split it.” Most people live in places where the listing agent takes more and gives less. Even here in NYC, Manhattan, most people split it, but if it’s new, the buyer gets more. In Queens, they don’t give the buyers agents anything. In Texas they don’t give buyers agents much, in Miami, it’s 5% for buyers alone on certain buildings
Every real estate company and ALL their realtors should be held accountable for misleading every single buyer to buy a "Home" that will become their worst nightmare.
NAR never mandated a set rate and in fact has provided training and guidelines discouraging the practice of agents coercing certain commission rates. While it's been an industry norm, charging a "standard" rate has explicitly been frowned upon.
I feel like all of this is initiated by greed, yes by NAR but also by sellers. The problem is, buyers could be at a disadvantage if representing themselves without agent expertise just to get the house for a lower price.
Without adequate buyer's agent guidance, buyers risk taking on expensive hidden issues or buying into hazardous situations.
I also feel like the true victims in all of this are the newly licensed agents. The single moms who are trying to provide for their children but can’t because of the multiple arbitrary membership fees in order to work.
The only thing this going to cause more lawsuits between buyers and sellers
Timmy, if what you say is true, can you explain to me how come that all realtors from NYC to LA are demanding 6% commission? Did all of them wake up one morning and decide that 6% is the magic number that would fairly compensate them for all the education, experience, and hard work that goes into taking a few pictures and listing the property on MLS. Please do tell.
@@Gheorghe99 NY agents aren’t part of NAR. Interestingly enough, the concept of buyer’s agents don’t exist in NY. If you are buying a house in NY, you need to hire an attorney to interpret purchase contracts which can be far more expensive than paying for an agent, attorney fees aren’t “rolled” into the purchase price (like buyers agents) and attorneys aren’t showing houses. 🙃
@@Gheorghe99 I don’t know about agency in Cali since I’m not licensed there.
There was only 4 percent sold by owner last year. That tell you something!? Most end up getting realtors. If you want to enter a court room without a lawyer that’s what your up against. Ooh and lawyers are your worst crooks.
Commissions won’t be slashed. these headlines are funny commissions will just be decoupled between buyer and seller side
The commission varied by location. Some sites charge less. Sounds like buyer will have to put up money up front to either pay for expensive, hourly real estate lawyer, or pay up front for a real estate agent to represent the buyer during contracts and negotiations. Appears to be a detriment to buyer. Lawyers got a big win though since more will be involved in real estate transactions or in law suits dealing with issues with contracts with no buyer representation for those that can't afford it.
They really need to replace all of them with AI.
Real estate lawyer would cost much less than these ridiculous prices for a job that doesn't merit said prices.
Whos been paying 6% ?
I FSBO’d my last two home sales. The title company does the work, MLS flat fee and Zillow did the rest My equity is mine and mine alone. Bye realtors!
There's no standard commission, this is bad information
It’s only on sales that the consumer wants you to not get paid smh
I never understood why when I sold my house I had to pay the buyer's agent a 3.5% commission. I never met him, he never did anything for me, but I ended up giving him $16k. Happy to hear that his crazy system is coming to an end.
From the buyers agent prospective: if you're only offering a 3% commission to your listing agent without any compensation for the buyers agent who is bringing the buyer, what motivation to show your property?
@@PravinDesilva How about the buyer pay his own agent? It would make more sense for the buyer and the agent to agree on a flat fee, a percentage of the property, hourly rates, beaver pelts, or whatever, I don't care, I pay my agent, you pay yours. And to answer your question, if the agent wants to find a house for the buyer, he/she will have to show homes. Now that the game is not going to be rigged in favor of the agents, sellers will have the freedom to say no, I'm not agreeing to pay the buyer agent fees and this scam will end.
@@PravinDesilva end of useless agents milking the seller. They’re just sad it’s the end of easy money
@@PravinDesilva OP - Your buyers will drop you if you put your priorities ahead of theirs. This change allows them to find better agents.
That is the point though, when there are no commissions being paid to the buyers agent, there is no reason to help them. You only take on liability. Buyers have little/no money to be able to pay realtors up front. This means buyers will go straight to sellers agents for representation, thus getting bad information/withheld info to get the house sold. Also, successful realtors usually run large teams. If one agent is being paid a commission from a buyer, but another buyer with a better offer isn’t paying that realtor, the team may go with the less good offer for compensation purposes. An hourly wage doesn’t do anyone any good as that encourages realtors to delay deadlines and keep the transaction open as long as possible. Also, realtors in general (95% or more) live paycheck to paycheck (like other career fields) so lowering the amount of money they make doesn’t seem to be a great option.Ultimately, It sounds like better solution, but it’s not
If a buyer thinks an agent can help them get a better deal the they should pay their own agent. You pay for the home inspection because you are not comfortable/ skilled enough to do it. Why should the seller pay this.
REALTOR GROUP COULD CUT COMMISSIONS. NAR? I am living at IL without knowing about any standard commision 6% since become a realtor. All I know realtor have not any minimum pay rate, no medical, no pension and any Lead or clients resource supports from NAR and any sponsoring broker company. However, I have to pay insurance, NAR association fee and sponsoring broker office fee, and any broker education fee. I didn't have more than two deal in the first year, but had to pay all the expenses of the marketing yourself. I didn't enjoy any benefit from such as Realtor Group, but have to follow the rule to provide all the benefit for my client. How sad what I can say? Seller have taken all benefit (high return from the property sold) from the deal. They are still complaining on the commission, and misleading the information about commission rate. That's is terrible things I never see before.
Only a fool thinks home sellers will lower the price of their homes. They'll pocket the extra cash.
Realtors open doors, not figuratively, they literally insert a key or punch in a code and open the door to a home, walk around, show the space and pass along business cards. That's all they do.
They don't (can't) draft the sale agreement.
They cannot give legal advice in the event a complication arises (structural issue, riparian rights, zoning, easement and eminent domain concerns, boundary disputes, inheritance/estate matters, title issues, mortgage contingency, foreclosure, general liability, etc.)
They cannot make act on behalf of the seller, in fact they serve merely as a relay or intermediary of messages between buyer/seller
They cannot be accountable for anything
All the key elements of a home sale are performed by attorneys, title company (who employee attorneys to transfer/record the deed), city inspector, and home inspector. The closing is managed by the title company closing coordinator. No realtor required at any step.
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People dont see the work that realtors do behind the scenes.
Like, sit on their hands and wait for their paycheck? Scabs.
You clearly have no idea
Realtors open doors, not figuratively, they literally insert a key or punch in a code and open the door to a home, walk around, show the space and pass along business cards. That's all they do.
They don't (can't) draft the sale agreement.
They cannot give legal advice in the event a complication arises (structural issue, riparian rights, zoning, easement and eminent domain concerns, boundary disputes, inheritance/estate matters, title issues, mortgage contingency, foreclosure, general liability, etc.)
They cannot make act on behalf of the seller, in fact they serve merely as a relay or intermediary of messages between buyer/seller
They cannot serve as escrow agent.
They cannot be accountable for anything.
All the key elements of a home sale are performed by attorneys, title/escrow company (who employee attorneys to transfer/record the deed), city inspector, and home inspector. The closing is managed by the title company closing coordinator. The checks are cut by the title/escrow agent. No realtor required at any step.
@@paranoidhumanoid A good realtor knows how to facilitate between ALL of these things. The experienced agents offer a great value to those who are not familiar with the market. That said, real estate agents do a lot to coordinate a complex transaction and are trained to help the seller execute a “by the book” deal.
You have no idea what you're talking about.
@@paranoidhumanoid no one told you to use a realtor to buy or sell your house. You sound angry perhaps you need a snickers bar and a little nap.
This could collapse the reality and real estate market because Nothing Sales it’s self .. and it will have massive unemployment problems which will trigger a massive recession. 😢.
Whoa slow down Jony. That’s much economic hyperbolic gymnastics going on. Take a breath, the economy is not fundamentally reliant on real estate agents making money.
Home seller pass on the savings? 😂
Maybe, but in the meantime less money goes to agents for work not worth 20k
Lol
Shrinkflation😂
Realtors are ridiculous and BS anyway
00:01
Lol😂 good I can’t stand realitors they are complete slime
realtor agents are over rated. max 1% for each agents
Considering the broker can take upto 50% of that and then the government takes another 30%, I don't see how they would work.
@@drewsmith455 Good point, I have seen several people who believe that realtors have nothing to offer shoot themselves in the foot. One such man bought a property next to a church with a large building he planned to use for a business. The large door was only accessible through the church parking lot. The previous owner had a handshake agreement to use the parking lot for access( he was a deacon there). Two weeks after he closed on the deal the church put up a big fence on that side of the property.
1% ON A 80K HOUSE IS 800 DOLLARS
@user-ut2it9hl5d yes, and if we as independent contractors of the brokerage have to pay 50% to the broker and then taxes, you have what 300.00 or so dollars left for the realtor. Gas/advertising/office/fees/ licensing ect still need to be covered by the Independent contractor aka the agent.
Now let's add house payment, car, food, everyday living expenses...
Average realtor sells 4 homes per year, say that goes upto 30. That's a 9000.00 a year business.
You cannot reason with people that do not respect what value a good agent brings to the table. I have used real estate agents in several states and have been very satisfied. Their unique understanding of their area and their network of contacts has saved me an enormous amount of stress and money. In my experience even more than the 5-6% commission. @@drewsmith455