BREAKING: Sellers Won't Pay Buyer Commissions Anymore (2024)
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- Опубликовано: 16 сен 2024
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Incorrect. Sellers can still pay the commission but it can’t market it on MLS.
True...and I give it 6 to 8 months before sellers will be begging to pay a buyers agent because their homes has sat on the market.
@@mistafrank31 sellers will still be paying in most cases. But most of those that don’t will fall under your scenario. The only thing more ridiculous than realtors overreactions right now is the fact that this stupid lawsuit even won.
@@MeyerDantelGroup yeah there’s a huge conspiracy of set commission rates… yet you can find 1-3% comissions and flat rate commission all over every mls. Hard data I guess has no place in federal court ?
This is an insidious, sinister agenda aimed at disrupting the real estate industry to ensure we have a country of renters only in the future.
I don’t know about y’all, but here in South Florida most buildings being erected are rentals. Why are they not building more affordable housing? 🤨
I do agree some of us will create more opportunities for ourselves by adjusting and redesigning our business models.
On a side note, I wonder how many sellers involved in the law suit paid their own Buyer Agents when they purchased their homes. I’m willing to bet that number is close to zero, unless they represented themselves.
Also, it’s always been known buyers are the ones who ultimately pay the commission which is built into the sales price of the home.
That is true but remember that you don't want to do any type of commission sharing between agents. This is spelled out by the DOJ in the Noselek v. MLSPIN case. The seller can pay the buyer's agent commission but it should be offered by the seller to the buyer.
This is not what I’m hearing…. The commission can’t be advertised in the MLS, however, you submit the offers with your commission. On the listing side you set expectations that they will probably have to offer something because people don’t work for free.
I recently sold my condo for $400k and i want to invest the money in the stock market. However, it appears the market is at an all-time high. Should I invest elsewhere or wait for a market correction?
The stock market is risky But staying on the sidelines is riskier. Missing the next bull run will be far more costly to your long-term wealth than getting in at the "right price". Consult a financial advisor if you're unsure how to proceed.
You're right, I and a few Neighbours in Bel-Air Area work with an advisor who prefers we DCA across other prospective sectors. Instead of a lump sum purchase, Following this, my portfolio grew 37% in the last quarter
Mind if I look up your advisr please? I've worked in real estate for over 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now
I've stuck with the popularly ‘’Laura Grace Abels” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up
thank you for putting this out, it has rekindled the fire to my goal... was able to spot Laura after inputting her full name on the web, she seems highly professional with over a decades of experience
Depends on the market and leverage, but where I am buying another home, it's definitely flipped to a buyers market. No way I am or anyone that is smart is paying a commission as a buyer. Either the seller makes that deal with their agent, or it negotiated in the offer, but either way they pay or won't sell.
The range of prices for homes could vary as much as $35 to 50 thousand. So what are we talking about. To get a listing agents will temp sellers with a high listing price and compete in the market. Buyers can still make an offer with or without a buyers agent based on whether he thinks the house is a good deal. What we have here are agents claiming you can't live without them!
Ricky I am hearing VERY different information than what you are stating here
So am I
So am I
The information he's providing in these videos is just completely wrong.
Dude isn't an attorney and his information is 100% opinion.
Buyers commission would be a flat fee to write and present the offer $1000 -$5000 and tens of thousands of starving realtors will step up. The genie is out of the bottle.
LOL!
The offer will be presented with the contract. Want to buy the house? Offer a check and sign the contract subject to the terms of the contract.
There's a bigger picture working here. It will definitely increase the cost of sale for both sides.
How will this increase the cost/commission for both the seller and buyer? It will be the opposite. Buyers can't afford to pay what buyer agents were getting paid in the old model (2.5%-3%) out of pocket because it never should have been this way or this much. Maybe in lower priced markets but 2.5%-3% in San Francisco where I live is outrageous. And decoupling the commissions will also put pressure on commissions coming down on the list side. No longer can list agents discourage a seller from negotiating commissions because buyer agents will not show your home. The whole system is set up for Realtors to win but not the consumers.
Ricky the answer to this is listings, listings,listings.
Are buyers really going to sign a contract stating they have to pay the Realtor $8,000-$12,000 or more to open doors? Before they even go through a door?
@@dougdk59 exactly. I think the biggest losers will be the teams that pay heavily into Zillow each month. Team leaders are under immense pressure to pay their buyer agents, feed them if you will. Most buyers click thru Zillow to purchase a house and don’t use individual brokerages webpages to browse. We all know Zillow buyers want to see a property yesterday and to your point, good luck getting them to sign a contract that puts them on the line to pay a percentage even before they get to see the property or even know about the agent
My buyers are saying that they only want to see homes and have me write offers on listings where the seller is willing to pay my commission or they want me to negotiate my commission with their offer. In other words, buyers will most likely push back and say they will not buy the home unless the seller pays enough towards the concessions to cover the buyer agent’s commission.
@thedesertdancer this does put the buyer at a disadvantage because you don't see homes that may work fir you but seller ruling out paying the buyer commission.
@@thedesertdancer .......and the seller will raise the price to cover the buyers agent comm!!! So who is really is paying the fee?
Bought a house from a flipper. No lawyer, no agent went to court house and transferred deed. No problems.
Real Estate is an industry where the top 4-5% of agents make the most money and sell the most houses. The buyer agent will be this way even more so. People will find and seek out the best 1% of buyer agents and the rest may starve.
You know, with the current housing crisis and the state of the economy, it's tough to even think about buying a home these days. Prices are skyrocketing, and it seems like everyone is feeling the pinch.
Absolutely, Jeffery. The housing market is incredibly volatile right now. We've seen a dramatic increase in home prices due to low inventory and high demand. It's a tough situation for potential homebuyers.
Buyers will lean towards not paying an agent if they have a choice not to my guess is pretty high like 60 to 70% will simply contact the listing agent. Buyers are a lot more educated and have access to a lot of information on houseing values etc. Listing fees will be 1% to 3% total with listing agents working both sides. Here in Florida it's not duel agency its Transaction broker.
I think that is a possible realistic outcome. I think it might be 60% in the beginning and slowly rise over time. And, I also believe listing agents will negotiate an extra percentage or so if with the seller if they end up dealing with an unrepresented buyer. Good Stuff man.
You believe listing agents are going to accept less % wise and work more?
From my experience on the ground here California, most buyers especially new home buyers are not educated enough in regards to real estate. They will be eaten alive in Cali, especially new home buyer who don't have a clue. Also remember only 30% of people here in Los Angeles owns a home, most people in Los Angeles are renters
If I decide to purchase a house I'm going directly to the seller's agent.
Attorneys charge enormous prices, why won't they crack down on these guys too, also add in car dealerships, or any other group that works on commissions?
Its because there is no commission sharing in any of those scenarios. That's what the DOJ wants to stop.
@@benvigilrepro
That’s why I disagree with the DOJ since we have disclosed to the listing agent where the money is going. After all, nobody works for free and it is fair for the listing agent to pay part of half of the commission to the buyer’s agent. The issue is is not really that they don’t want us to share the compensation. Sellers just don’t want to pay the buyer’s agent. If it was up to the seller, they wouldn’t pay the listing agent either! If they think realtors are price fixing their commission, then all professions and industries should be sued since we all know that each business will charge enough to cover paying their employees and the cost of the delivering the product or service. Every industry has a standard fee and some pay above or below that standard. For example, doctors typically charge $200 to $500 fee for a 15 minute office visit and from there, they may charge more billing codes for each additional health issue discussed or if there is an examination. The insurance companies have negotiated with doctors and have a contract with each doctor that accepts their insurance. The point is that doctors and all professionals have a standard fee. An engineer, for example, knows that based on his level of education and experience, that he or she can expect or negotiate a certain range of an annual salary.
This law suit is ridiculous and makes no sense. Most likely, it will get sellers fewer offers to no offers unless they drop their list price significantly or they are willing to pay a large enough concession to cover their he fee for a buyer to pay the buyer’s agent. Or, like this video, this real estate coach is saying that the listing agent may end up representing both seller and buyer but can still charge the seller more if they end up representing the buyer. So, the seller may still end up paying less than 5% or 6% even if they pay their listing agent additional money to also represent the buyer. Hope that many listing agents negotiate to get their seller to pay them at least 2.5% if they end up representing the buyer.
Attorneys actually deserve the high $$ to be fair, same as doctors. Let’s be real anybody can to get a real estate license.
Attorneys are about to see a surge in earnings! I foresee a wave of lawsuits on the horizon.
Just have to wait for a different DOJ to be more friendly to agents and business, instead of these loony toons we have now
Our MLS started this week with this. It is an absolute mess.....
Ultimately, the buyers are just going to offer less or ask for the seller to cover buyer agent fees if they want a higher price for their home
Sellers should have the option to offer compensation/concession as a means of marketing the property if they so choose!
My firm does not practice dual agency due to the built-in conflict of interest. I can’t get a seller the highest and best while simultaneously getting a buyer the lowest price they need to pay to win an offer. We become transactional brokers with no advantage to either side.
With this now that the buyer has to pay the buyer agent fee outside of the house sale. It can’t be part of the Mortgage and that will be a big problem because the buyer will have to come up with a crazy amount of money in cash . The money down, the closing costs and now the buyers agent fee. It’s now all out of pocket. That’s a problem
Our broker at EXP just informed us yesterday that California received a cease and desist letter from the department of Justice And Exp themselves just announced also yesterday that they are no longer participating in broker to broker compensation. So we’ll only be negotiating our list side fee only and leaving it up to the seller whether or not they want to offer compensation to a buyer broker directly. Plus, we can also negotiate potentially an additional fee In the case that we procure an unrepresented buyer. So moving forward, all offers will just have to have buyer broker compensation requested to be paid by the seller in the form of concessions
Ricky is creating videos about this to supposedly educate but doesn’t appear to have any clue what is going on. The first 2 minutes of this video are just filled with 100% factually incorrect statements. The settlement - in paragraph 58 (xiii) SPECIFICALLY allows for “offers of compensation to buyer brokers…off of the MLS.” It says NOTHING about it having to be phrased as “concessions.” The DOJ is “nationwide,” BUT…the DOJ hasn’t launched a formal inquiry into the standard forms being used by ANY other Realtor Association BUT California’s. What California has done with its form was an attempt to avoid possible further issues with the DOJ…not because the DOJ has any actual authority at the moment. The idea that commission have been “coupled” and are now being “decoupled” is nothing more than nominalism. It exists in words only but has no actual effect in practice. Sellers have always paid the buyers agent and nothing in this settlement will materially change that. I’m not sure how we are 4 months into this but we still are getting video like this that are just feeding the BS machine.
Seller isn’t paying the buyer agent anymore or at least not the 3% or even remotely close to that
@@raz1739 LOL! You clearly don’t work in the industry, do ya? They rarely ever paid 3%, but they did pay 2.5-2.8% about 90% of the time, and well of 9% of the remaining 10% was between 2-2.5%. And…guess what? In the 5 months since the settlement was announced…sellers have still paid…and have still paid at the same 90% rate of 2.5% to 3%, with the remainder being between 2-2.5%. Nothing has changed expect listing agent can’t advertise the seller’s offer of buyer compensation on the MLS. But you know where else they can? Everywhere else. I’d try not commenting on things you don’t know anything about.
Thanks for this Ricky! It is helpful and you given some good ideas. We are all going to have to muddle through this a few months.
Listing agents will get bombarded by buyer agents asking if seller is offering concessions. Seller concessions have not existed for a few years now in this current market. Sellers tell the buyers to take a hike when buyers ask for a credit at closing to say fix a leaky roof, outdated electrical panel, etc. good luck asking them for 2% or 3% kickback to pay buyers agent, won’t happen.
We’ll see what happens after August 17. Many buyers are saying they don’t want to buy a home unless the seller will pay enough in concessions so that it covers a minimum of the fee they have to pay their buyer’s agents. If this is the case with most buyers, then homes will sit on the market and the home will most likely sell below market or not sell at all unless they seller pays enough concessions to cover the fee to pay the buyer’s agent. Without buyers, the seller Cannot sell their home and cannot pay their own agent or the buyer’s agent. Hope that no agent will agree to work for peanuts and I think most sellers will not buy a home if they have to pay a minimum of 2.5% commission. I really hope that all realtors, whether they are representing buyers or sellers, learn how to negotiate a decent commission of minimum 2.5%. Otherwise, the agents who cannot negotiate and will work for less than 2.5%, will ruin the business for all hardworking realtors.
But now most buyers will need a concession, not just weak buyers. If all offers include concession seller will take best offer and will not tell all buyers to kick rocks
How will this play into concession limits. For example, over the past 3 years we had people ditch FHA and VA loans to be competitive, but just because they can afford a little more money than 3.5 down, doesn't mean they can pay their own closing costs. Half of my conventional loans were 5-10% down but still asking for 3% in seller concessions for closing costs. At 5% down, you can not ask for more than 3% in concessions on a conventional loan.
I have not heard anything about where I cannot offer a commission to a buyers agent.
Can't put it in the MLS from what I've been hearing
It’s verbiage. Commissions vs. concessions same same. This puts the ball in the buyers court. We must articulate out value and allow them to understand they cannot successfully get through a transaction without an agent.
Depends on the state. The state more in Idaho says buyer commission cannot be a concession.
@ 7:20 exactly right! This statement alone ends offers of buyer compensation totally
That is not correct Ricky. Sellers can still pay the buyer's agent commission. We can't just mention it on the MLS. Also, we can share our commission with the buyer's agent. NAR settlement FAQs No 51
Give it a few minutes...the DOJ will take care of that.
If I recall correctly, that California Listing Agreement prevents the LA from compensating the BA. So, any compensation will most likely come in the form of a Seller Concession or from the Buyer.
Unfortunately, Buyers who could benefit with a Seller Credit Interest Rate Buydown or Repair Credits may end up with nothing. So sad 😢
@@tonyfield11 that is incorrect. Yes we have a new listing agreement and there’s no coop anymore in the agreement but sellers can still pay for compensation and listing agents can still split their compensation if they choose to, previous authorization of sellers. We just need to disclose. As usual. We had several townhalls, emails and trainings about this
When I work both sides, I make 5-6%. My income is cut if the new system works and seller offers me 1% if I bring a buyer. Sucks.There has to be a way that realtors can circumvent this BS. Face it, we’re screwed.
Let's say you get 3 to list plus one if an unrepresented buyer comes along. You get 4%...you can become extremely wealthy off 4%. Adapt, get rich & move on to bigger and better things.
No seller will be paying you 3% anymore. Good riddance
Can you offer an exclusive to your listing broker. Buyers must buy from the listing broker. What is to prevent the seller advertising without a broker.
Interesting, it sounds like it will cost sellers more money to sell now than before.
At the end of the day, sellers will buy, and buyers will sell at some point.🤷🏽♀️ Bring it on, you all. Let's get it going.🤑🤑🤑🏡🏡🏡
"Let the games begin" - Ceasar
Sellers: “ buyer compensation is negotiable? Ok, I’m offering zero…thanks.”
“I understand. Just curious, do you think offering $0 buyer’s agent compensation will create more interest or less interest in your property compared to other properties that are offering compensation?
@@cesarrincon2008 that’s the sell. Good to have
@@cesarrincon2008 less interest of course. The agent steering will continue as always.
Ricky, if you think commissions are going to drop I have this question for you: Why cant you or I as a listing agent negotiate representation from a buyer that comes to us unrepresented? Im not going to represent a buyer for free, otherwise they can purchase the home, I will represent the Seller and the Buyer can proceed unrepresented.
Brokers commission has always been negotiated! In nj, the buyer wants to buy they need representation. And if they want the listing agent to rep them, then the agent becomes a designated agent within the agent office.
So if I have a buyer, I am going to have a buyer broker agreement. If the BBA says I am making 2.5% on any sale that the buyer closes, those concessions will be paid to the buyer at closing and then funds from the buyers side will go to fulfill the BBA commission.
Assuming they’re offering concessions. Maybe charge a non-refundable retainer fee for the length of contract.
@@InvestorVenturesexactly. Seller could simply say, no, not offering any buyer compensation
What happened with court and your speeding ticket?
Thank you for the breakdown Ricky
No seller should have to pay a buyers agent 3%! Highway robbery! Good riddance
Incorrect information. Sellers CAN offer Buyer Agent Commission. They simply will not be able to display that commission amount in the MLS. Stop spreading bs.
Watch the video
Why is nobody talking about the fact that previous buyer agreements did say that buyers would pay a commission, and that it was going to be offset when buying a property in the MLS with a commission payable to buyer by the broker, which was pre negotiated with the seller and listing agent? What am I missing here? Why nobody talks about that?
I think you are a bit off here ricky. Commissions can still be offered our new forms even still SHOW listing agent splitting with buyers agents here in texas.. we just cannot put it in the MLS..I know the DOJ wants to decouple, but as it sits right now we STILL LEGALLY can still split commissions
you said it...as it sits right now. furthermore, there will be plenty of brokerages who won't allow you to couple commissions in Texas (soon to be all). This is what the entire lawsuit was about. Price fixing.
I’m afraid that by writing the offer for an unrepresented buyer can ultimately be construed as your their agent by the attorneys whether written or implied. Hopefully I’m wrong.
Why would you not want to be a dual agent on every listing?
@@trippettd123 because the buyer refuses to pay you and the seller won’t pay buyers agent. I don’t know how this will shake out. In CT we’ve been doing buyer broker agreements since 1996. We shall see I guess. Thx
The listing agent cannot write an offer for the unrepresented buyer. Two options…1. Find an attorney to write or 2. Sign exclusive agreement with listings agent. Florida we are transaction brokers.
Listing at 3%... which take longer to sell because you don't have an army of agent working you can market too. So lowering time on the market.
My realtors really working hard at selling my home even though I’m in California. I have some investors that are interested in my property and they’re going through it with a fine tooth comb so things have to be repaired to their liking which never seem to be an issue in my life for all the years that I lived here like 2930 years I don’t knowgoes by fast in that time. However, the driveway it cracked and one side of it is higher than the other side so they want that shaved off.
This ain’t correct. Sellers can still offer cooperative compensation but mls can’t list the amount
Do not call it cooperative. Use only "compensation"
@@VENEBOSTON I agree cooperative has been taken out of context by the media and dishonest lawyers. Just want to make it clear that seller compensation to buyer agent is not going away in any way shape or form.
You are not accurate with this clickbait headline
Its accurate. They might pay concessions, but not commissions. And, I wouldn't advise that to a seller myself. Thanks for commenting.
@@RickyCarruth Please provide us with the language in the settlement you believe limits payment to "concession." Nowhere does it limit payment from seller to buyer to "concessions." But, I'll wait to see what you got. But, just so you know, Colorado's new Contract to Buy and Sell has a specific section that breaks out what the seller is going to pay to the buyer's brokerage firm from the concessions they might be offering elsewhere in the contract. So, if you "think" you have something, you should get it to the Colorado Real Estate Commission because they apparently haven't read what you have. 😂
BS seller can pay. Time to unsubscribe from you
Probably less expensive to just get an Atty. Real Estate agents have been ripping off people for years and years.
I am selling my home myself hoping to get a buyer who can save as well money no agent no real state
Zillow FSBO 1074 Hamlet Dr Maitland, FL 32751
Clickbait headlines to the left and to the right… you can do better. You better check yourself on those Buyer concessions too.
Inaccurate
Buyer can't afford to pay bac
They about to learn!!!
Here in Seattle we can still advertise in MLS and seller can still pay buyer broker via listing agreement. Or MLS is more transparent than what Nar is doing
for now you can. give it a few
Nwmls has been years ahead of this. We decoupled compensation 5 years ago(past statute of limitations). Buyers agreements have been required for a while now here as well. We opted out of the lawsuit because it's more transparent that the changes NAR is forcing. NAR won't exist in 2 years. They won't survive this.@@RickyCarruth
I think you'll see that sellers who aren't willing to pay a buyer commission will have to list their home 10% below market value to convince a buyer to pay the buyer's agent.
na, buyers will go straight to listing agent if they can't afford too pay their own agent
@@RickyCarruthagree some buyers agent provide value. Just don't think it should be 2.5%
we have seen market flipped to a buyers market so this is alot of speculation of how this turns out…every market is different…but its easy to spin the narrative & cause more fear when you have a big tv behind you to sell courses to win more listings…
Thats exactly what I plan to bring to light on Tuesdays zoom call. The fact that this could play out many different ways and to be prepared for anything instead of thinking you KNOW how it's going to play out. Noone really knows. But, the ones who have looked at all scenarios and are ready to adjust the quickest, will crush it.
Buyers will still pay agents. We are just going to see price compression
Just an observation... You keep using the word, "commission" as many of us do out of habit. However, none of the new agreements (at least here in Florida) use the word "commission." There are Fees and Compensation, but no Commission.
Ricky, our Far Bar contracts in Florida, the new ones dated July, do not have any of that stuff from Cal.
Since this only came about because of an agreed settlement how strong are the new "laws" really?
They aren't laws...but, if you break the rules, you will more than likely end up in the middle of your own lawsuit.
I believe most sellers will pay buyers agent commision .... between 1% to 1.5%
Saying home buyers won’t be able to pay commission is just not true
Some will, some can't
Winner agents gon win moar
Thx for the intel!!! 😁
Anytime brother
Wow, you are so clueless. Why would you put out so much false information?
Commision rules have changed again since this post.
Ricky, thank you
Ricky and don’t forget when they call for free advice. 😆
Guess what/ If the seller doesn't pay the buyer agent compensation it will be "no sale".
The buyer just won't buy?
The sellers will not pay anything if they do not have to pay ... buyer broker will br lucker to ger 1500 tp 2k a deal like europe or austraila
Banks won’t finance seller concessions
realtors are where stockbrokers were in the early 90's ... today, we have ETrade, get yourself a million dollars worth of stocks for $9.95... horrible execution, but hey, if you're going to buy and hold, who cares ...
Awesome.!!
We're planning on buying another home early next year. The way I see it, listing agents are getting ready to make a killing with the homes that will be coming on the market next year. I was wondering how we as buyers could navigate this without coming out of our pockets for commissions. Thanks for this video.
Bravo.
❤❤❤❤
lol you guys are clueless
Buyers will not pay
What does the buyer agent do?
Nothing so you get paid nothing
Wake up
First
I thought this stopped being a thing 20 years ago. 😐
@@LivingInMaricopayou snooze you lose!!
@@solidunsprage5164 Not something I'm concerned about, but I hope you get a pony as a prize.
Un represented buyers, will they file lawsuits after the sale? What if a seller does not want to work with an un represented buyer? They should be able to make that choice not to work with them. Higher probability of lawsuits imo for a seller. Boomerang!!!!
The change is going to be crazy and many new models will come up. Like Ricky says you just need to know the rules and play the game! Buyer agents can make more money than ever, you can charge $150 per door to show a property, if they are undecided and wants to see 10 properties find - I am cash flowing baby! Start being creative