I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
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I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Melissa Terri Swayne 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 this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
@@MrJSpicoli Sure, you see a house worth Half a million Dollars and Shows me a house for 30 minutes, as a buyer I should pay the person that 15k? Are you people out of your minds? I am just going to get an attorney, skipping the realtor.
selling a $250,000 at 6% is $15,000 commission...... I've bought over 50 houses over the years and the only thing a real estate agent ever did for me is they unlocked the front door
@@JackieBaker The point of my comment was after an agent unlocks the front door they pass all the paper work over to the title company and they do all the work so let's say $15,000 is a lot for so little
I'm not selling my home. All the fees are ridiculous. Most of my income went into my home for 30 years. I talked to a realtor and I would have to pay them 35k. That didn't include other fees like closing and moving fees. I'm just going to stay in my home. I worked too hard to give someone over 40 k to move to a smaller home and pay more fees. People are smarter now.
@@aaroncarney7733 real estate agents can’t sell homes without a brokerage. You have to have your license with a broker and they take a huge chunk from the real estate agent.
I bought my last home directly from the seller. He posted a “for sale” sign. Since he found the buyer, there were no commission fees. He hired a local real estate agent to do all the paperwork (title, etc.) for a small fee. It was seemless and easy. I am going to sell my house the same way. The seller saved tons of money. The house was sold for $560,000. Commission would have been $33,000!
So how did that reduce the home prices as everyone is expecting out of this? That is really the question and it's good for you that you are smart enough to know how to deal with selling and buying on your own. Not a lot of people are capable of doing what you did. Prices of home are like any other items for sale out there. It's the demand that's affecting the price and not the costs associated with it selling it. If you know economics 101 you should know about the law of supply and demand where scarcity is the main driving force of where the prices of commodoties should go. NAR just screwed this all up instead of taking care of that lawsuit earlier on. Now it's us real estate agents who are getting screwed.
@obbie1osias467 no, is you real estate agents you barely did few hours of work for huge commissions. And dont tell me because I know most buyers do not have to see 50 homes to buy one, and anyway, you are in sales. You are extremely overpaid and in most of my transactions the agents added very little value since I found the homes, I did the research on crime, schools, hired the inspectors and worked with my lender. They never negotiated anything, actually encouraged to offer over listing and forego inspections. That is not negotiating. You are very overpaid even if you have to give your broker his cut. And don't get me with gas, CEUs wear and tear in the car, we all have to do this for our jobs and we cannot deduct those expenses. And don't get me with MLS, get rid of it and use a free database. It is very satisfying to see all these realtors whining all over the Internet worrying the easy money times are over.
@obbie1osias467 stop saying buyers are not smart enough for buying and selling ...please, don't flatter yourself, is not rocket science. Most realtors have only highschool and became realtors because they failed at anything else in life. There are probably 10 realtors within a mile radius of my house. Need to thin the herd and let only experienced ones survive.
@@fancyfeast6779 That is exactly what I will do too. My house has been listed for 6 months the realtor didn’t do anything. Listing is over on 8/23/24 I won’t be listing the house again until next year and hopefully not pay a commission.
Yep, I would never hire a realtor and will go directly to the source. The contracts are easy to download online, and title companies/lawyers are also easy to look up for titling purpose.
In addition, the cost of homes are excessive, so the % does come across as greedy. No one wants either realtor to work for free, but whether selling or buying, it is difficult to realize that despite the %, it is far more expensive to have someone represent you, whether buying or selling as the base price has doubled. Most jobs do not double their employee's income in a few years. If you use an agent, find one who wants to work for you, with your best interest at heart. A good seller will hire a photographer they pay out of their commission to present your home so that it sells. Before you hire, for either, ask questions!!
15+ years ago, being a realtor was a lot of hard work. Sitting by your land-line phone to make and receive clients' calls. Creating ads and buying space in magazines. Driving all day for 3 or 4 days with ONE home buyer. Copying hundreds of papers for client info, negotiations, and closings. Now, clients have Zillow, etc. Ads are online and mostly free. There are almost no expenses for paper and copying. Everything is done at your convenience online. You can live your life outside of your office with your cell phone. Etc. But, realtors are still getting 6% of a home's sale price. For what? It's time for homeowners to insist on some changes. This buyer's fee should be just a start.
My Mom was a very hard working Realtor! I remember her going canvassing back in the 90’s, knocking on every door. Everything you said, she did! She passed away at 87, 12 years ago, but she loved her job as a Realtor!!!
fees are not 6 percent that went away 10years ago most are 4% keep in mind and sellers were never forced to pay a buyers agent as a seller of a home it could have been zero most sellers wanted to pay to get more buyers to see their homes .
I was a mortgage lender the last 6 years of my career and worked with a lot of first-time buyers. I would say virtually none of these clients would have been able to buy a property where they had to pay a buyer agent commission as most were already tight on cash. They could reduce their offer to compensate for the additional cost of the commission but that won't generate any cash and you can't "cash out" with a purchase mortgage for up front costs. And buyers who COULD pay commissions wouldn't, as they'd rather use those funds for something where they see a benefit such as paying points to buy down their interest rate (especially in this rate environment). I am thinking that for the vast majority of transactions, the seller will have to pay all the commissions or the buyer won't buy and the seller won't be able to sell. So we end up right where we started.
I think there should be a flat fee for the service real estate agents perform. Real estate agents are not partners or investors. They did not put up any part of the down payment, they did not make the payments over the years, they did not maintain the property, and they did not take any risk. This new rule is not going to accomplish that.
2 месяца назад+1
@@genxx2724 I agree! There needs to be a flat fee. Forget them getting a big cut of what the sellers have worked for over many years--just for listing it on the MLS & showing it a few times. Sometimes, they don't even have to show it--others do.
I'm sorry if people are unkind to you. I love your channel and content. And I love your tough love, knowledgeable approach to things. You address elephants in the room a lot of realtors (and buyers) don't always own.
@@JackieBaker I agree. I don't mind people for their service. I just want to be treated fairly and not fleeced. I need to know that the PROFESIONAL I hire has my back, and I'm not comfortable having someone work for me and not paying them. ❤
I've purchased six house and have never used a buyer's agent. I just called the listing agent to set up a viewing and made my offer. And the listing agent wrote up the standard contract, and we closed thru the title agency.
@@MrJSpicoli Huh?? The commission is between the seller and the listing agent. I don't care what the listing agent's commission is. In fact, if the listing agent knows she is not going to have to split the commission with a buyer's agent, then she'll be incentivized to get the deal done and lower her commission to the seller; who then can be more flexible on sale price. What representation do I need from a buyer's agent. The contract is standard. I hire my own inspector. I know my initial and best & final offer. And the title agency handles the closing.
@@notnotnownow9622 To get the deal done. Listing agent could lower the sales commission from 6% to 5% or 4% to encourage the seller to accept the offer. Listing agent keeps all of the 4% (rather than hold out for another offer, likely represented by a buyer's agent - and the need to split 6% with buyer's agent). Or am I missing something?
My most favorite real estate agent is the one that I bought my luxury home from in 2015 where he represented both the me and the seller. We are still very good friends and I laud him for his honesty and integrity. Sadly, he is a dying breed.
That's what I finally came to the conclusion with, six years ago when the agent we were working with to find a condo for us, was more interested in hanging out with us, then being an aggressive agent. Property after property kept slipping through our hands because she was too late in making an offer. I finally just went to an open house of a property I was interested in without her, worked with the seller's agent because I figured, she would be motivated to sell to us since she didn't have to split her commission, and two months later, I was moving into that property, and continue to keep in contact with the agent to this day. People, you're not in any contract with a buyer's agent, and if you are being jerked around after weeks of working with one, cut them lose kindly, and move on.
@@ms.b9093 Yea, we all know that. It's their fiduciary responsibility, but when they know they can make a full commission without a buyer's agent involved, they're still legally allowed to entertain the buyer's offer as long as they are keeping the seller's in the loop. It's not a mystical event, it's literally a sale of goods, full stop.
*People will learn to represent themselves. There will be plenty of books, articles, youtube videos, etc, teaching people how to look out for their own interests. And they'll end up getting the seller's agents to open every house - which the seller's agents will (initially) balk at... (cuz they don't have to do it now and haven't had to do it in like forever).. but this is likely where things are going. Time will tell - THAT'S for sure.*
This is a great change, 6% on commission is ridiculous amount for showing my houses, most of my friend here sold our houses on our own and it will continue to do so. If you can’t afford to buy a home and pay your agent, then looking for a house on your own, they’re not that difficult.
There will still be 6% commissions paid by the seller! Are you paying attention?? They just can't list the commission fee *in the MLS.* It doesn't mean the seller doesn't pay the fee anymore. The fee DIDN'T CHANGE for most agents who have a brain.
@@alouise3557 Not if sellers have half a brain, we contracted our seller agent at 1%, as well as offering 1% to the buyer. Sold it in a week. Everyone won.
@@lucyluo3898 commission isn’t changing. It’ll still be 5-7%, like in commercial real estate. They had this approach commissions paid by each side for a long time now.
@@grQTbVMrZone only needs the attorney to review and advise on the documents. The viewing of properties can be done by yourself by simply calling the listing agent. Also, I agree with you. However, there are attorneys out there that charge a flat fee or a percentage of the purchase price. So no difference than paying the realtor fee. The biggest different, you have a legal, fiduciary, person looking over your shoulders.
@@robertscheinost179 that's the point. Instead of wasting money on a realtor that all they will do is try to make more money off of you. You now have a FIDUCIARY person helping you.
My family in Ireland sold their home last year and paid the standard 1,500 to a real estate agent. They take photos, list on MLS, do showings, do inspections and negotiate the whole transaction. This model is standard in most countries, I'd dare say US will be next.
Hopefully. There is no good reason why an agent should make tens of thousands more just for selling a nicer home, which I would argue is probably easier to sell anyways.
Photos are $400-$500, staging, advertising and service like open houses all will make your service level match that kind of a budget. Taxes, licensing. People do not work for free. Will you hire a homeless person to help you?
@@MrJSpicoli In other words, you're defending greed. If other countries can do it, we should be able to do it. No one said anything about a homeless person but yeah, feel free to shame their unfortunate situation while defending corporate greed.
1500? In Canada? I just tried to list and commission was 42,000 and the agents were MAD....lol..It wasn't enough They actually deterred buyers from my home..my listing expired and my agent told me (in writing) why it didn't sell....... 1500 omg, that's the rate for 100 years ago in Canada lol
I have bought a lot of homes and I had multiple realtors mess up. One even had me wire $200,000 to the wrong account. I think I would rather go without a realtor at this point. They're a huge liability and I know the whole buying process. Really tired of paying these people to screw up things.
It makes sense since they really have no requirements other than passing a state exam and fogging up a mirror to show that they are alive. Most of them are either lazy or failures in their career jobs.
@@porscheoscar he said he would. He sent me the wrong wire instructions from his previous broker. So it took a couple weeks but I got my money back. Just a pain in the butt. He said sorry a million times but I had to front a couple hundred grand to close that deal. If I didn't have that money just sitting around I would not have made the deal. I don't know why we pay these people so much money to do a bad job.
In 96 my mother worked for $11 an hour 50 hours a week and was able to get a 48k mortgage on a 1600sqf home from saving $200 a month for 2 years. Now I make $21 an hour 55 hour work weeks and... I live paycheck to paycheck in Lowe income government assistant housing because renting anything else would eat 2/3 my paycheck. I'll never afford to buy a house
@@AliciaSalvadoreluckily my mother never plans on selling. She's had the best years of her life in that place and is more than happy to will it to me and my family.
Buyers agent does way more work then sellers agent. I never saw the seller agent when I bought my house. Buyers agent showed multiple listing, showed us what to look for, financing, closing, the whole 9 yards.
Financing? Lol.....buyers get pre-approved by their lender, has nothing to do with realtors, unless the realtor will recommend a lender for kickbacks....stop making yourselves look so important
I don't know maybe it's just me... But I never thought the real estate agent was representing the buyer nor the cellar, the house is not his or her's, he/she needs the cellar to sell the house and the buyer to buy the house..... I always thought of the real estate agents as a mediator between the seller and the buyer, the agents was only looking out for him or herself finding the weakest link in the chain and then convincing the link one way or the other
In my case, all my realtor has done was LITERALLY open the doors for me! I found all the properties she let me into. And as a matter of fact,she never asked me what my price range was and has been sending me auto generated MLS listings that are a) out of my price range and b) not what I’m looking for. I did make the mistake of not interviewing other realtors and asking friends for referrals, and again, in my case that did NOT work out for the best.
So you sat on Zillow, and were too aloof to tell her your price range, you browsed and picked everything yourself because you chose to have fun looking at properties on your spare time, and you're sitting here complaining?? Are you aware that 90% of buyers ignore what the agents send because they're obsessed with looking at houses, and end up picking GARBAGE to look at because they don't take the brokers recommendations? 99% of the crap my buyers pick are ones I *crossed off the list* because there were issues with them that did not fit what the buyer wanted. When I explain why the house is *off the list* I hear, "Ohhh, I see. I didn't realize that. Oh yeah, now I see the problems in the pictures ... Oh oops, I didn't realize it was only 900 sqft... Ohhh I didn't realize there was no garage." Almost ALL of the homes I narrow the list down to are exact matches to what they're looking for, and they're *safe buys*. That is because I'm looking at 100 houses, browsing every single photo, zooming in to find the problems, cross checking tax records, and staying up all night just to find YOU the perfect match. 100% satisfaction, 5 star ratings, and my buyers highly respect me. If you don't choose an agent with a brain that's your fault. But you are just joining the masses of shit talkers who trash the industry and make us all look bad.
Let me tell you what….i chose my agent based on a recommendation from my lawyer’s paralegal who also works with this agent as her assistant. This paralegal knew me since JANUARY. So she absolutely knew my budget and me. She wasn’t a “random realtor” . She hyped up this realtor as “aggressive” and very experienced. But there’s more to the story than you know. So NO in answer to your question I didn’t just sit on Zillow 🙄, I was referred to a highly experienced, aggressive broker. I suppose I just trusted the wrong people and it wouldn’t be the first time, my bad!
@@notnotnownow9622 Well….it would have been in HER best interest to find me a home since she was selling mine. She split her commission in sales contract, 4% on the sale and 3% on finding me a house. Because she didn’t put much effort into finding me a home, only sent me auto-generated MLS listings, I ended up finding my own house (for sale by owner). She lost 3%. Like I said before, there’s more to this story!
We’ve recently discovered that estate sales in our area are a great way to see a house that is either on the market or coming on the market shortly. During the sale, the house usually looks awful because everything is pulled out and messy. We get to crawl through the space without any obligations or contracts. Quick way to rule in or out a property.
Right after all these investment firms bought up most of the single family home the rules change and the benefit for them so that they don't have to pay all of the fees. This will save them billions if not trillions.
@@John1908-vo1ivOf course it is because buyers will have less leverage, which is what all institutional owner/sellers want. Making homeownership cost prohibitive is the first step. Then the intrusion of government via the DOJ in this NAR settlement the 2nd step & we all know Wall Street & Gov are inextricably tied. Also word on the curb, private equity firms are buying up REOs & foreclosures directly from banks
I hope the sellers agent is ready to work with regular people trying to buy and asking questions. Nobody is going to pay for a buyer agent, housing is already completely unaffordable in NJ.
@@ianrooney2275 from my understanding, the listing agent can show you the property but as soon as the conversation starts getting deeper than they need to have the buyer agreement in place to work with the buyer.
We recently bought our first house and worked with only the sellers realtor. The house was well under market so we werent worried about negotiating. Closed in 30 days and everyone was happy.
@@alouise3557 they will pay commission for their listing agent to sell the house… the buyers agent doesn’t have to be paid by the seller any longer if they don’t wish to pay for it… That means a lot of sellers are gonna take advantage of that and that means many people are either going to not have a buyers agent or they’re going to have trouble with their buyers agent trying to sell them more house than they need so they can get a bigger commission ….
That's not true. I became a realtor after years of foreclosure prevention. I am actually not closing any transactions because I have older sellers who want to get an apartment that is double the price of the mortgage but if you are struggling it is not in my best interest to advise you to do this. I give all the options. Also, there are other options than selling your home when facing a foreclosure. You do not have to sell your home. Get an agent that actually wants you to succee, sale or not.
@@realvirginia I think you’re in the minority, especially down in my market in SoFlo. That being said, I don’t think it’s right to make a person work for free either, so I don’t fault the realtor.
I agree you should always have the client's best interest at the forefront of all of your actions. However, expecting a buyer's agent to work for free is not logical or sustainable. It makes zero sense.
@@Rich_Wagner Listen, angry person, nobody becomes a realtor with the primary goal of helping people, "and if they make money along the way, great." Not ONE person ever sat down and said, "You know, I'd really like to devote my life to helping people buy and sell homes, and make sure they get the home of their dreams with no hiccups." They become realtors to become wealthy. That's it and that's all.
If you hire someone for services, you should pay them. This is a change that is needed. I’m not paying any extra fees. If you want my house, you could pay 2% to your rep representing you. I’ve been in sales for 25 years , guess agents are going to have to be real salespeople now and “Earn” a buyers business.
@HarryDirtay they can kick the can down the curb for the next house, my friend lol clever, yes, but there’s plenty of moronic people out there that will agree to pay more commissions.
Jesus, how hard is it to buy a house? You got the price, down payment, and interest. This whole bureaucratic process is just a game for these people to make money. Closing costs? What for? I bought the freaking house.
Agreed , I was an agent for 5 years and it was a ridiculously complicated game thats designed to make the brokerage the majority of the $ while the agents do all the work and pay all the office overhead and real estate insurances !
I live in NJ in a development with HOA. Single family home around the corner ( not in development) was worked on for months. Removed old septic and hooked up to city pipes. New HVAC, new roof and back yard fence. Amazing job inside & out. Went to the open house and listing agent asked me if I had an agent. When I said no she was not only happy to tell me she would also help me to sell my home & purchase the one I was looking at she did so in an aggressive manner. I very quickly not only said no thank you, i made sure she saw the look of disgust on my face. She not only didn't speak to me any more, I think she was glad I left. I understand times are tough in the real estate world but please don't think those of us looking at a home are idiots. You don't have to be a genius to know the seller's agent is working for the seller not the buyer. I will never look at another home that agent is associated with.
Slime isn't reserved for the real estate profession, it's rampant in EVERY profession. Pick your RE agent carefully as you would hire an employee. I'm sorry you live in an HOA.
So they OFFERED to work for you and you showed them disdain. Yeah I don’t like sales vultures either but I also don’t treat them like vermin. The middle way. How would you act if you offered your work to a prospective employer and they looked down their nose at you.
Hello I am looking into buying a home and i am a first time home buyer. Since I am new at this I had a little a misunderstanding with 2 different agents, one who happens to be a family friend but looks very young and not enough experience the other one she's on top of her game seems like to me and talks a good one. She does sound very helpful to me, but now that I see this thing with the buyer being the responsible person to pay all the fees I am now hesitating that I am going into this blindly. Please tell me about "just getting an attorney" are you saying that they would be the ones negotiating my deal and writing out the contract?
These changes are VERY GOOD for buyers and sellers. Agents not so much. As a former buyer and future buyer I have NO issues paying an agent for their work for me.
@@StarfireReborn Regulations are there to help the big corporations and hurt the mom and pop businesses. In a free market there are no corporations because the government doesn’t charter corporations in a free market.
@@maximusmax5077 Just don't get a bad agent. It's good for buyers since it puts them in the drivers seat to set the terms and expectations and more should be expected from buyers agents seeing that they are now being paid directly by the buyer from their work. Buyers will also see ALL types of properties and not ones suggested by the agent to get them the most income from the sale.
@@Fairy71128 so that the selling agent can get the full 6% and then the buyer pays an extra 2 plus percent out of their pocket doesn't take a genius to figure that one out all about greed on the selling agent you're nothing but snakes
You’re absolutely right first time buyers are going to have a hell of a time! But with all these new changes comes competition . there will be realtors who are going to give full service at a discounted price! Now with that being said first time, buyers would be better off to walk into a new home subdivision and get all the discounts and credit they can get on a new build!!
You're still better off using a real estate agent. The new home builder's agent represents the homebuilder. If you bring your eal estate agent with you, he/she can negotiate extras like amenities and upgrades, can recommend a lender that works best for your situation, and can oversee a home inspection - you definitely should get your own inspection with a new build instead of relying on the builder. The buyer's agent doesn't cost the buyer anything - the builder has their commission built right into tthe price of the home, so you'll pay the same whether you have your own agent or only rely on the builder's agent.
@@deeannaburns912 I sell only new construction and there is a lot of myth and not a lot of fact in your response. First, no agent can negotiate upgrades that a builder hasn’t already factored into the equation, agents don’t have some magical talent that is going to make a builder give more than they typically would. In fact, the most negotiating is typically done with the home buyer who can demonstrate they are best qualified to perform and least likely to be a pain in the butt. This has absolutely nothing to do with having an agent or not, quite the opposite. Frequently we meet buyers that seem pretty reasonable but their agents are clueless and make all sorts of erroneous assumptions in attempts to prove their worth. Also, you don’t need an agent to get a home inspection with a builder. Our contract clearly outlines that the home buyer has a right to get a 3rd party inspection and we encourage it whether they have an agent or not. This really is not the big deal agents like to make it out to be. The home buyer gets their 3rd party inspection around the same time the local municipality is doing their inspections, and it all gets wrapped into a final punch list. No problem, standard procedure. Lastly….it’s now a big no to say agents services don’t cost a thing….come on now, have you completely not heard anything out of this law suit? 😂
@@ashdav9980thanks for commenting, agree, no need for buyer agents with a new build especially. Why would I need another person in the middle to complicate the whole process and collect money for nothing? I can go to the builder, look at models opened daily, get pre-approved, do inspections etc.
@@deeannaburns912you are very dishonest about the commission for a new build.The buyer agents will not do most of the things you said for a new build. They did not even attend inspections at used homes I purchased in the past, do you think they will come at a new home inspection? And like the guy below my comment, you forgot about what the NAR lawsuit was about?
I am about to buy a house cash in the Charleston SC area, if I see something I like on Realtor from what you just said I can talk to the listing agent and make my cash offer and don't need a buyers agent. Though they don't work for me they do have to present the offer and as the contract will be gone over by a lawyer before I sign it I can see I really don't need a buyers agent; thank you for this information
How many buyers can pay with cash? Everyone doesnt have that benefit. Even still, a lot of home buyers dont know what they SHOULD do when buying a home. Boomers have been buying homes for years and left millenials in apartments. No ownership.
The inspector my realty hired for me spent about 20 minutes there, my neighbors told me, and reported only the one problem obvious from the outside even to me, and found NONE of the other serious problems that would have certainly been found if he had truly looked inside the crawl space and attic and even checked fully inside the house. For a hefty inspection fee.
@@dorothymartin8557 yup. I've heard it from other inspectors that the "inspection" over the years has deteriorated into just smoke/co2 detectors, lead paint, popcorn/asbestos ceilings. Nothing that is really helpful to either buyer or seller. An inspector does NOT fix problems. All he does is inspect for signs that something could be "a problem" and then someone brings in a contractor.
That assumes everything goes well. When I was a realtor, I had to step in several times when all of a sudden the buyer, who was a lawyer, thought she didn’t have to come to closing, and she could sign closing paperwork whenever she felt like it, despite the fact that there is a date on the contract. I also had to step in when I was representing a seller and one of those “ buy a house with no money down” People showed up and wanted to write a contract with no money down and the ability to walk away whenever they felt like it with no repercussions.
True, despite having no prior investing knowledge, I got fully invested just before the pandemic and pulled $150k in profits that same year. In reality, all I was doing was following professional guidance, and as of today, I'm only 10% shy of a million dollar portfolio.
@@Curran-m-i real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed! who is your advisor please, if you dont mind me asking? i'm 56 and need to catch up with investing
She goes by ‘’Katherine Nance Dietz’’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
excellent share, just copied and pasted Katherine Nance Dietz on the web, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
I’m closing in on retirement and I'd love to move from Minnesota to a warmer climate, but home prices seems ridiculous today coupled with the fact that realtors these days are something else, do I go ahead with buying a house anyways, or look at other sectors of the market as of now?
consider talking to a well-experienced advisor about which sectors of the market to focus your portfolio on, diversification is actually key to good investing.
Agreed, amid covid-19 outbreak, I simply adopted the service of a certified financial planner instead of panic, and thankfully, I've accrued nearly $1m ROI after subsequent investments to date, marking my most significant financial milestone
I take guidance from a Montana-based advisor ''Katherine Nance Dietz'' To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Seems like a very simple answer. If you are the Buyer ---dont have an Agent. You are the buyers agent ---what do you need that for anyway with the internet. Seller pays his agent fee as he should. Sellers agent can do all the work and get the whole comission. Win-Win.
This was informative. Thank you. Awhile back we sold an inherited condo by owner. We hired a “transactional” realtor who just handled the paperwork for about $600. He also got us listed on the MLS. As a bonus he actually gave us some advice as we went along. Knowing that buyers agents tended to not show FSBOs, we put a 3% commission for buyers agents on the MLS. To us it was worth more money to have someone bring us a buyer than to sell the condo. Although the buyers agent obviously had disdain for us, our transactional realtor was a great go-between. Highly recommend this set up for similar situations. I don’t know how an FSBO can advertise a commission or that they will pay a fee now.
Ummm… Realtors constantly refuse to show homes to their buyers that are FSBO or flat fee. It's stupid, but now the gloves are off and we are NOT going to be nice. The days of the 6% commission are over and thank God we will see the number of agents cut by more than 75%
Hire/set agreement with a good attorney ahead of seen any houses, then contact listing agents to see any houses. Listing agent can write your offer, especially if it’s good.
For my last two homes I utilized a MLS listing service. It gets your home on the market and you pay around $300 for 3-6 months. The buyer usually has an agent. So you only pay 2.5 or 3% of sales price instead of 6%.
I guess it begs the question, why have real estate agents at all? Many more sellers should go FSBO and buyers can negotiate directly with sellers. Hire an attorney to do the paperwork and split the costs.
I bought my first house without an agent and we worked with the sellers agent only. It went fine. When i sold my first house, my selling agent was an idiot and ended up getting me sued by the buyer's some time later and he was no where to be found when i went to court.
@WaveRider-js8uh the contract stated I owed them appliances, but when I lowered the price by 25k, the appliances were no longer part of the deal. My realtor did not change that detail in the contract and just was lazy and changed the price. I didn't catch either. So they buyer sued me 6 months later.
I think buyers will do one of the following: use the sellers agent though it may not be prudent, pay a low flat fee to a buyer agent, or hire a real estate attorney rather than a buyer agent.
Attorneys aren’t going to leave their office for you. They don’t want the headache. They don’t know jack about homes, new or old, they don’t know what is important on an inspection report and what is just fluff. They don’t know how to analyze a home appraisal or how to fight it. They don’t have MLS access so they couldn’t fight it if they wanted to. They do NOT know how to negotiate. They are taught to SETTLE. People that think this is a good alternative are in for a rude awakening.
Thanks for explaining that you can agree to a "one day" buyers' agreement to at least get inside and see a property. I spoke to a realtor recently about seeing a property and he made it sound like I had to make him my exclusive buyer agent long term even though I only wanted to see the property inside to get a better idea if we truly wanted to pursue a purchase on it.
We purchased a home a few months ago using an attorney. The only problem was the selling realtor didn't like it, and made it difficult for us. It will take many years to change the culture.
FYI - as a Rea Estate broker - buyers can negotiate with the sellers regarding buyer commissions. And fyi - I work REALLY hard for buyers because in our state it is "buyer beware". The NWMLS is not part of the mentioned lawsuit. So for now, sellers are still paying some or all the buyer commissions. This may change but will take a while.
So glad I bought my house in 2019 because this sounds like a mess. I sold my other house private sale because realtors don't really do anything now. Everything is done online, all the contracts are digital and copy paste. What am I even paying for? I feel the same way about new car sales, just let me order it online and deliver it to my driveway lol.
Yes! And the percentages instead of flat fees is ridiculous. An agent does the same amount of time and paperwork on a 500,000 home as a 250,000 home. Why they should get thousands more for the same work is beyond me. It's pure greed. I don't trust any of them.
just go to the local Office Depot and buy a blank real estate sales contract for your state and buy from an owner and save everybody time and trouble. I find buyer's agents that I have used have less knowledge than I have and just seem to confuse everything.
@deelehey2827 hhmmm only good realtor I had was in 2005. All after, never helped, never negotiated anything, they were merely acting as an unnecessary middle men that required me to use them so they can email or call the listing agent with the offer or other questions. Def not worth the commission they demand. I can email and call myself.
All my real estate agents have been awesome full service. Loved all the benefits I received by working with them. Thank you for bringing this information to me in this video. 🙏💜💫
The real question is that realtors offer useless or very little service of real value for the huge commission they sometimes get. I have bought homes without realtors and guess what, it’s not complicated at all. There are standard contracts for buying and selling. The buyer would have to be more proactive in researching homeowners association rules but title companies will handle financial liabilities tied to the property. Unfortunately in this country realtors have total access to the price history of properties through the MLS. That’s really the only true value they offer. They usually don’t know a thing about the structural integrity of the home. They just open the door and make smell nice with cookies. Oh yes and often time they have a nice car to show you homes. I can guarantee most buyers would be happy to do their own research if it meant saving 50% or 70% on a highly priced home. Yea Jackie, don’t lecture me or try to justify your commissions. What is it that you do that a buyer or seller can’t do if they had full access to the MLS. I pay whoever maintains or creates those listing and open the door myself to the sale or purchase of a house.
Meh. I've had agents that absolutely earned their money. I had a home sit on the market for 6 months due to a bad agent. Fired the bad agent and got a new one who was amazing - made suggestions to get the property sold faster, got the subs to do the work, drummed up interest in the property and got it sold inside of 30 days. She earned every dime and I needed that help considering I had already moved to a different part of the country. Other agents I've worked with have been glorified home tour guides who didn't come close to earning their keep.
Me, too, first-time-buyer AND most likely will be buying a new-construction home in a new community/sub-division. However, I'll still be open to pre-owned homes so I'm not missing out on anything there that I might really like. Regardless, I still hesitate to go through the buying process alone due to my not knowing all the buying details such as timing things to get done, deadlines to meet, inspections, appraisals -- whatever. The SELLING process is not so complicated but BUYING is. As well, I'll be using a VA loan, And I'll need help finding the best (and reputable!) lender. Even buying a new-build directly from the builder isn't that easy, since builders have their own agents...I'd not want to use a builder's agent who's looking out for the builders best interests, not mine -- I'd want my own agent. My main problem is how to find the considerable amount of money (!) to pay my agent out of my own pocket...unless the builder pays him/her. Builders used to, but not sure they still will given these NAR changes. As for a pre-owned house -- should I find one I prefer vs. a new-build (for whatever reasons) -- yes, I'll be the one paying my agent. ;-) All that aside though, personally I still need to see mortgage interest rates come down. As for home prices, in my markets of interest they are and have been coming down even if slowly, but I expect them to come down roe when supply increases, that coming mainly from builders of new homes since most current home owners are still hesitant to sell (also due to high rates) IF they'll be needing a mortgage for their next home. which will be at a much higher interest rate. Of course, that doesn't apply to CASH home buyers (but that's not me!). -- BR
I’m not quite sure of the advantage of hiring a buyer agent. Why wouldn’t the listing agent be highly motivated to show their listings after talking with the prospect? I thought all commissions were settled by the listing agent’s broker among involved agents when a property is sold.
I have been starting to look into buying a house. My brother just bought a house in Jersey and I came upon one of your videos and I love the videos. Thank you! I will be watching more and more of them! You seem very down to earth and out to help the buyers
One more thing to note. Va does not allow the buyer's agent to get paid by the buyer. She also mentioned this will be tough for first-time buyers to come up with the money. So how does that affect the seller, well less offers. Plain and simple and the sellers will probably as she mentioned start reducing the price of the home. In my area the sellers are offering buyers compensation because at the end of the day the seller wants MORE OFFERS and does not want their house to sit.
@@NicolePiontek-sj1zg Let's hope they do and first time home buyers need a huge break because they won't be able to afford it and many 2nd home buyers won't either.
Great information. I just listed my house in CA I offered 3% buyer 3% seller fee. I had asked for another one of your clips since I am relocating to another state, WV. If I could just buy the house from the listing agent. You answered that question in this one. Thank you. I guess I will talk to them and see how honest they are. Thank you.
I agree that buyer should pay their own agent rather than seller paying for an agent who does not represent you in a sale. Frankly I've had it with agents getting a commission to basically list my house for sale, do an open house which has never resulted in a sale, and send out flyers. I'll deal with an atty next time around. I paid for my house and it's upkeep, not the realtor or the title company. What a scam.
I appreciate your forthcoming attitude and answers to a lot of questions. I am currently in need of renewing my Pennsylvania RE license . I do believe the costs of buying/selling ( mostly buying ) is completely out of reach for most normal hardworking people, but I don’t believe all hope is lost! The two RE transactions I have been part of for my immediate family has saved them thousands of dollars ! I enjoy the challenges being a Realtor brings. It is the best feeling in the world to know you helped someone achieve the purchase of their first home!
All stuff they did thirty years ago and confused everyone during the seller buyer transaction, incredibly complicated. So they revisit mass confusion. If a seller desires to offer 10% as incentive that is their choice. Developers do it all the time.
13:00 *Not sure how things work in NJ, but here in AZ, in a dual agency situation, the listing agent's fiduciary is no longer to the seller. The listing agent is now "representing" BOTH the seller AND the buyer, and is required legally to NOT favor one principal over the other.*
@nomdeguerre8464 no, it's not. We do it here all the time. It has to be disclosed in writing up front. We have special forms understood and signed by both parties.
@phx4closureman you don't understand what I'm saying. I'm saying, while legal and allowed, it is CONCEPTUALLY impossible to represent both parties. That's like having a single attorney as both the prosecution and defense.
I loved this video! You explained everything in black and white -- so clearly! I have listened to many NAR settlement videos, and every interpretation of the settlement in these videos was so different and confusing for me. Thank you from a South Jersey resident for your honesty and clarity.
I have purchased and sold several homes and it has always been like this on every transaction. If you elect zero your home may not sell. I have sold FSBO and purchased FSBO with the right agent it’s worth it if you need to sell or buy .
Buyers should finally realize they do not need a realtor to buy a house and in fact they are in a better position to negotiate when they do not have a realtor! We are heavy real estate investors and we absolutely never use a realtor which is why we get better deals!
I really appreciate your explanation of these changes!! There are still areas of the country where there are bidding wars on homes and people still paying $50k - %100k over list price. Rochester, NY is one of these areas. In that situation, I can't see sellers offering anything to help with the buyer's agent's fee - they don't need to because they are typically getting 7 - 15 offers on their homes. For me, I'm very upset this has happened. I've been trying to get a home for the last 3 years - looking in different areas. I've been outbid every single time by people with more cash and I'm not in a position to give an agent 3% in addition to what I'd be paying for a home. Most sellers are making a profit. I've sold 3 homes in my long life and never had a problem with the commission coming out of the proceeds - to cover both agents. Now, buyers have to come up with even more money - it's like you are being penalized for buying a home.
There is a lot of work that we do behind the scenes that you do not realize .. especially if you are getting a loan on the house .. if you have cash it’s a lot easier going thru the process of a title agency….in Florida .. Good luck 🍀
I have not heard a compelling reason for paying a real estate agent a % of the selling price of a home rather than a flat fee. The paperwork is the same on a $250k home as it is for a $750k house.
@@fastmz3 there are many companies and agent working on a flat fee, you choose whatever you want to use. The idea of commission is that you pay it only when is done and it's done only when you are happy. I would love to get half of that commission as flat fee but upfront, regardless if you sell or not your home. Do you agree?
Great breakdown of the new changes,Jackie! 👍👍👍 I was in real estate for 15 years. Retired in 2018. This sounds like there is simply greater disclosure and explanation to buyers and sellers and agents of how the commissions are paid, and who pays them. Educating buyers and sellers to understand this all is the key. But, oh my goodness, I'm sure all of the new contract legaleze must be a royal pain!!! 😓
If we use an agent, we will only sign for that property. Like Jackie mentioned. And go to open houses . But I may get a license for the heck of it as well.
My friend's brother-in-law just started his career as a Realtor about 2 years ago. He loves to brag how great he is at selling property. I think this law is going to be a wake up call for him
I have friends who are new agents. One is at almost zero earnings. Involved in about 350 k of sales this year. The other who started a bit earlier did ok last year. Ok being they actually make a few thousand at the end of the year. This year….not going well and sending desperation.
Yep! They got in after the 2006 crash and houses were booming. They just answered the phone and wrote contracts. My sister is a top realtor in my city and she said there was so much business it was not binging like the 80’s or 90’s, canvassing, mailing brochures to get potential customers. She couldn’t keep up, people were calling her. She’s gotten very well off. She worries about down times, and I see one coming.
I have had buyer sign the Buyer Agent Compensation Agreement. They were happy to. It is the Buyer's bringing the money to the sale. like you said put it in the negotiation. Thank you for this, hope it helps out people in Buying and Selling. Have a Blessed day. I am in Central Oregon.
Yeah, that’ll happen. I’m sure all sellers have a heart of gold and will say “Rather than keep this money, I’m going to lower the price of my home and let the buyers keep that money”. Uh huh 🤦♀️
You people have no idea how this works because you're listening to idiots. The sellers WILL STILL PAY THE FULL COMMISSION. It just will not have the amount listed on MLS. I cannot believe how gullible people are. There are explicit sections on the listing agreement allowing the seller to pay the compensation to the buyers agents, and THEY WILL when the brokers tell them that if they don't pay up, they don't sell. And I have news for you. Going directly to the agent will allow the seller to pay BOTH sides to the sellers agent. Yet you will not have undivided loyalty because you sat on youtube too long instead of talking to a professional.
Do you really think the prices will go down??? Be aware that prices always included both agents commissions and if you don’t want an agent - negotiate the price down by minimum 3%
Realtors’ commissions were absurdly excessive and this correction should have happened decades ago. How the industry and NAR got away with a level of greed that would have made Gordon Gecko blush is a mind-boggling. This is a win for sellers and buyers.
Exactly. They are after your money (your). It's not the seller's problem these RE companies have high expenses because of greed. It doesn't take that many people to find and close on a house. Pay nothing on the buyer's agent side buyers
@@LT-em1vu - if the buyer doesn't pay anything, then what incentive does an agent have to drive the buyer around, go look at 30 houses, negotiate the deal, get the inspector in line, get closers together, etc.? People don't work for free. Before it was just custom that the seller paid for both sides and now the buyer has to worry about this when they have to come up with down payment, inspection costs, pmi? I'm so glad, I don't need to buy or sell at this time. What a headache. I sure hope they come up with a better system when I need to sell and re buy or I can see houses just sitting.
Outstanding video. I am a real estate agent in Ocala, Florida. I like the detailed explanation, the pros and cons of each possible situation, how to maneuver with or without a buyer's agent, etc. Congratulations Jackie. I have watched famous real estate coaches explain this and watched many NAR videos. You are showing a practical application of the new rules.
These changes will affect first time buyers the most because they're not going to be represented by the listing agent accurately. The listing agent represents the seller.
@luke31ish. Seller agent represents the seller until they sign a contract with the buyer. They then have a fiducuary duty to represent both parties fairly throughout the process.
I'm in the process of buying the one house I love my realtor she is amazing so patient my first house changed my mind twice the second house wanted us to pay .5 percent of her commission 12hundred 95 dollars I had no problem I love my realtor I did finally find another house number 3 she negotiated a great price please if u have a great realtor make sure they get a good commission I live in Florida ❤thank u Casey u are the best realtor if ever see this❤
I've bought and sold 5 properties without a real estate agent or hiring an inspector. In this age of Zillow and social media, advertising is virtually free. There are purchase agreement templates online. The title insurance company handles the heavy lifting for a pittance. It's remarkably easy if you have practical skills in construction, tech, and business in general. Do a little research and MAYBE invest in an inspector if you lack the appropriate skills. Save tens of thousands of dollars.
Thank you Jackie for an informational message! I too share a similar sentiment that a buyer will ask the seller to drop the price to help pay for the buyer's broker compensation. What I have a hard time understanding in that thought process is this: Lowering the sales price to compensate a buyer's broker still doesn't put cash dollars in the buyers bank account whos attaining a loan for the purchase. It makes sense on a cash purchase, however those are not the majority of home purchases. I think a savvy Seller is going to know that paying a buyers broker commission is still the smart choice as their property most likely will sell for more money (that compensates for buyers compensations) and the buyer will not have to come up with the extra cash at closing while is all part of the lending process, as it has been for decades. "Subscribed"
Sorry but buyers agents are overrated... I bought 4 properties so far and I never thought "Glad I have an agent"... Most of the time I was wondering what they did for me...
Keep in mind that 5-6% were always in the sales price. So, if seller isn’t offering to pay for your agent, lower the price by 3-4% and pay your agent directly or ask sellers contribution
@Fairy71128 then the problem is I planned to ask for 3-4% off anyway so now to cover the cost of what I'll pay my buyer agent I'm talking about asking for 6-8% off which is much less likely😊
@@BelieverMeSF yes, you can negotiate yourself without an agent and save 3% off the price or more. You’ll need to find good comps, which is also possible. The only thing I find that agents help the transaction moving along, if the seller isn’t reasonable, the agent can reason them. Also you’ll need to contact a lot of seller’s agents to view houses to select what you like.
Well. I sold and bought a house 6 months ago and I went through nine realtors before the transaction was completed and I was still screwed over in the end. So there's definitely an issue going on.
Excellent presentation. However, I have a question that hope you or anyone posting here can answer. What are you accomplishing by not posting the buyer agent commission..??? The buyer agent has to call to make appointment to show the property, and can ask if there is any commission for the buyer agent..??? And the buyer agent need not to be stupid enough to say "If there is no commission, I will not show the property to my client."...!!! The buyer agent just simply avoids showing it. So, the buyer agent ends up showing the properties that do offer buyer agent commission !!!..Please explain how this changes anything? Please explain if I'm wrong...
My Buyer's Agent found a home listed in the newspaper and decided not to show it to me because it was a FSBO, and the owner was not offering a commission. I also found that home in the newspaper and asked my Buyer's Agent about it. Long story short, I bought that home and directly paid my Buyer's Agent. I will never again use agents. It was in the year 2000 for $215000 in Longmont Colorado, when interest rates were 7.25%. Now, it's worth about $500000 and I recently paid it off completely after cash-out refinancing it several times.
I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
this is all new to me, where do I find a fiduciary, can you recommend any?
My CFA SOPHIE LYNN CARRABUS a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Don't have a job = can't afford housing.
Have a job = can't afford housing.
So why have a job?
I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Melissa Terri Swayne 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 this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
To many vultures are feeding off the carcass of a real estate sale. The costs for buying and selling are too high. Things need to change.
There are also lots of mooches that speak before they understand complicated transactions.
@@MrJSpicoli By saying mooches you're saying someone who is a beggar or scrounger. Are you a mooch?
@@MrJSpicoli Sure, you see a house worth Half a million Dollars and Shows me a house for 30 minutes, as a buyer I should pay the person that 15k? Are you people out of your minds? I am just going to get an attorney, skipping the realtor.
Flat rates! For paperwork and legal contracts! This notion that “most” people will pay for a number of “showings!” Lmao
Realtors are not charities. All work should be paid.
selling a $250,000 at 6% is $15,000 commission...... I've bought over 50 houses over the years and the only thing a real estate agent ever did for me is they unlocked the front door
Sorry you had such a bad experience
@@tommykukulka7811 why didn't you just work through the listing agent? You probably would have gotten a better price.
@@JackieBaker The point of my comment was after an agent unlocks the front door they pass all the paper work over to the title company and they do all the work so let's say $15,000 is a lot for so little
@@marciamakoviecki3295 Yeah sometimes, but they also play games with bogus multiple offers and things like that
@@marciamakoviecki3295 I've been in real estate for quite a while
I'm not selling my home. All the fees are ridiculous. Most of my income went into my home for 30 years. I talked to a realtor and I would have to pay them 35k. That didn't include other fees like closing and moving fees. I'm just going to stay in my home. I worked too hard to give someone over 40 k to move to a smaller home and pay more fees. People are smarter now.
@@jacquelineglitter4328 💯
Cheaper to become your own real estate agent!
I think I'll do that and get a lawyer if I decide to sell it. I sold my mobile home years ago by myself.@@aaroncarney7733
You are so right I decided to stay on my house it cost too much to move with all the cost
@@aaroncarney7733 real estate agents can’t sell homes without a brokerage. You have to have your license with a broker and they take a huge chunk from the real estate agent.
I bought my last home directly from the seller. He posted a “for sale” sign. Since he found the buyer, there were no commission fees. He hired a local real estate agent to do all the paperwork (title, etc.) for a small fee. It was seemless and easy. I am going to sell my house the same way. The seller saved tons of money. The house was sold for $560,000. Commission would have been $33,000!
So how did that reduce the home prices as everyone is expecting out of this? That is really the question and it's good for you that you are smart enough to know how to deal with selling and buying on your own. Not a lot of people are capable of doing what you did. Prices of home are like any other items for sale out there. It's the demand that's affecting the price and not the costs associated with it selling it. If you know economics 101 you should know about the law of supply and demand where scarcity is the main driving force of where the prices of commodoties should go. NAR just screwed this all up instead of taking care of that lawsuit earlier on. Now it's us real estate agents who are getting screwed.
@obbie1osias467 no, is you real estate agents you barely did few hours of work for huge commissions. And dont tell me because I know most buyers do not have to see 50 homes to buy one, and anyway, you are in sales. You are extremely overpaid and in most of my transactions the agents added very little value since I found the homes, I did the research on crime, schools, hired the inspectors and worked with my lender. They never negotiated anything, actually encouraged to offer over listing and forego inspections. That is not negotiating. You are very overpaid even if you have to give your broker his cut. And don't get me with gas, CEUs wear and tear in the car, we all have to do this for our jobs and we cannot deduct those expenses. And don't get me with MLS, get rid of it and use a free database. It is very satisfying to see all these realtors whining all over the Internet worrying the easy money times are over.
@obbie1osias467 stop saying buyers are not smart enough for buying and selling ...please, don't flatter yourself, is not rocket science. Most realtors have only highschool and became realtors because they failed at anything else in life. There are probably 10 realtors within a mile radius of my house. Need to thin the herd and let only experienced ones survive.
@@fancyfeast6779 That is exactly what I will do too. My house has been listed for 6 months the realtor didn’t do anything. Listing is over on 8/23/24 I won’t be listing the house again until next year and hopefully not pay a commission.
Yep, I would never hire a realtor and will go directly to the source. The contracts are easy to download online, and title companies/lawyers are also easy to look up for titling purpose.
I remember when the combined buyer & seller Realtor commission was only 4% then it got raised to 6%. That 6% always felt like a rip off!
You are probably talking about 70-ies, when buyers didn’t have agents and all agents represented sellers.
In addition, the cost of homes are excessive, so the % does come across as greedy. No one wants either realtor to work for free, but whether selling or buying, it is difficult to realize that despite the %, it is far more expensive to have someone represent you, whether buying or selling as the base price has doubled. Most jobs do not double their employee's income in a few years.
If you use an agent, find one who wants to work for you, with your best interest at heart. A good seller will hire a photographer they pay out of their commission to present your home so that it sells. Before you hire, for either, ask questions!!
@Fairy71128 it's still ridiculous to pay 6% for a realtor to put it up on trulia
15+ years ago, being a realtor was a lot of hard work. Sitting by your land-line phone to make and receive clients' calls. Creating ads and buying space in magazines. Driving all day for 3 or 4 days with ONE home buyer. Copying hundreds of papers for client info, negotiations, and closings.
Now, clients have Zillow, etc. Ads are online and mostly free. There are almost no expenses for paper and copying. Everything is done at your convenience online. You can live your life outside of your office with your cell phone. Etc.
But, realtors are still getting 6% of a home's sale price. For what?
It's time for homeowners to insist on some changes. This buyer's fee should be just a start.
My Mom was a very hard working Realtor! I remember her going canvassing back in the 90’s, knocking on every door. Everything you said, she did! She passed away at 87, 12 years ago, but she loved her job as a Realtor!!!
fees are not 6 percent that went away 10years ago most are 4% keep in mind and sellers were never forced to pay a buyers agent as a seller of a home it could have been zero most sellers wanted to pay to get more buyers to see their homes .
I was a mortgage lender the last 6 years of my career and worked with a lot of first-time buyers. I would say virtually none of these clients would have been able to buy a property where they had to pay a buyer agent commission as most were already tight on cash. They could reduce their offer to compensate for the additional cost of the commission but that won't generate any cash and you can't "cash out" with a purchase mortgage for up front costs. And buyers who COULD pay commissions wouldn't, as they'd rather use those funds for something where they see a benefit such as paying points to buy down their interest rate (especially in this rate environment). I am thinking that for the vast majority of transactions, the seller will have to pay all the commissions or the buyer won't buy and the seller won't be able to sell. So we end up right where we started.
I think there should be a flat fee for the service real estate agents perform. Real estate agents are not partners or investors. They did not put up any part of the down payment, they did not make the payments over the years, they did not maintain the property, and they did not take any risk. This new rule is not going to accomplish that.
@@genxx2724 I agree! There needs to be a flat fee. Forget them getting a big cut of what the sellers have worked for over many years--just for listing it on the MLS & showing it a few times. Sometimes, they don't even have to show it--others do.
I'm sorry if people are unkind to you. I love your channel and content. And I love your tough love, knowledgeable approach to things. You address elephants in the room a lot of realtors (and buyers) don't always own.
Thank you so much! Glad you appreciate the video. Just being honest and want to help people!
@@JackieBaker I agree. I don't mind people for their service. I just want to be treated fairly and not fleeced. I need to know that the PROFESIONAL I hire has my back, and I'm not comfortable having someone work for me and not paying them. ❤
I've purchased six house and have never used a buyer's agent. I just called the listing agent to set up a viewing and made my offer. And the listing agent wrote up the standard contract, and we closed thru the title agency.
And the listing agent double booked commissions and you got zero representation.
@@MrJSpicoli Huh?? The commission is between the seller and the listing agent. I don't care what the listing agent's commission is. In fact, if the listing agent knows she is not going to have to split the commission with a buyer's agent, then she'll be incentivized to get the deal done and lower her commission to the seller; who then can be more flexible on sale price.
What representation do I need from a buyer's agent. The contract is standard. I hire my own inspector. I know my initial and best & final offer. And the title agency handles the closing.
Same. I never had a buyers agent and I don’t need one.
@@prettygirlus9008 Why is the listing agent incentivized to lower his commission if there is no buyer's agent?
@@notnotnownow9622 To get the deal done. Listing agent could lower the sales commission from 6% to 5% or 4% to encourage the seller to accept the offer. Listing agent keeps all of the 4% (rather than hold out for another offer, likely represented by a buyer's agent - and the need to split 6% with buyer's agent). Or am I missing something?
My most favorite real estate agent is the one that I bought my luxury home from in 2015 where he represented both the me and the seller. We are still very good friends and I laud him for his honesty and integrity. Sadly, he is a dying breed.
Transaction broker?
Did he cut his commission? I bet no.
@@specag31 Yes, he did actually, but I don't know how much. The seller was a major pain.
Having one agent for both the buyer and seller is one of the worst things you can do. It's actually illegal in some states
@@pbshooter100 I think the class action settlement allows it with hoops to jump through but that probably does not negate state law as you mentioned.
Seems fair. Having bought and sold several homes I’d have no problem just going to the seller’s agent and handling it myself.
me too.
Me too
That's what I finally came to the conclusion with, six years ago when the agent we were working with to find a condo for us, was more interested in hanging out with us, then being an aggressive agent. Property after property kept slipping through our hands because she was too late in making an offer. I finally just went to an open house of a property I was interested in without her, worked with the seller's agent because I figured, she would be motivated to sell to us since she didn't have to split her commission, and two months later, I was moving into that property, and continue to keep in contact with the agent to this day. People, you're not in any contract with a buyer's agent, and if you are being jerked around after weeks of working with one, cut them lose kindly, and move on.
The sellers agent t is paid o advocate for the seller. Not the buyer.
@@ms.b9093 Yea, we all know that. It's their fiduciary responsibility, but when they know they can make a full commission without a buyer's agent involved, they're still legally allowed to entertain the buyer's offer as long as they are keeping the seller's in the loop. It's not a mystical event, it's literally a sale of goods, full stop.
This could cause a lot of people to not get an agent
They get paid too much anyway lol
*People will learn to represent themselves. There will be plenty of books, articles, youtube videos, etc, teaching people how to look out for their own interests. And they'll end up getting the seller's agents to open every house - which the seller's agents will (initially) balk at... (cuz they don't have to do it now and haven't had to do it in like forever).. but this is likely where things are going. Time will tell - THAT'S for sure.*
I purchased my current home in 1996 directly from the seller. His attorney did it all for us.
@@grQTbVMrZ Marker for envious underachiever.
@@grQTbVMrZ at this point it is cheaper to hire an attorney. Can you believe it??!! lol
This is a great change, 6% on commission is ridiculous amount for showing my houses, most of my friend here sold our houses on our own and it will continue to do so. If you can’t afford to buy a home and pay your agent, then looking for a house on your own, they’re not that difficult.
There will still be 6% commissions paid by the seller! Are you paying attention?? They just can't list the commission fee *in the MLS.* It doesn't mean the seller doesn't pay the fee anymore. The fee DIDN'T CHANGE for most agents who have a brain.
@@alouise3557 💯 the professional agents will still charge 3% a side. Their time is worth this and more.
@@alouise3557 Not if sellers have half a brain, we contracted our seller agent at 1%, as well as offering 1% to the buyer. Sold it in a week. Everyone won.
@@alouise3557 after 8/17/24, the seller does not have to pay the buyers fee. The seller will most likely only pay 2-3 %
@@lucyluo3898 commission isn’t changing. It’ll still be 5-7%, like in commercial real estate. They had this approach commissions paid by each side for a long time now.
Buyers, you do not need to hire a Realtor. Hire an attorney.
As long as it's a flat fee!!! Good luck if you hire them on an hourly rate
@@grQTbVMrZone only needs the attorney to review and advise on the documents. The viewing of properties can be done by yourself by simply calling the listing agent.
Also, I agree with you. However, there are attorneys out there that charge a flat fee or a percentage of the purchase price. So no difference than paying the realtor fee. The biggest different, you have a legal, fiduciary, person looking over your shoulders.
You need to hire an attorney anyways.
@@robertscheinost179 that's the point. Instead of wasting money on a realtor that all they will do is try to make more money off of you. You now have a FIDUCIARY person helping you.
My parents bought their first house with just a lawyer. No realtor, they were agreeable with the seller. That was in 1960's.
My family in Ireland sold their home last year and paid the standard 1,500 to a real estate agent. They take photos, list on MLS, do showings, do inspections and negotiate the whole transaction. This model is standard in most countries, I'd dare say US will be next.
Nah, we're too money-centered. Would be nice, though.
Hopefully. There is no good reason why an agent should make tens of thousands more just for selling a nicer home, which I would argue is probably easier to sell anyways.
Photos are $400-$500, staging, advertising and service like open houses all will make your service level match that kind of a budget. Taxes, licensing. People do not work for free. Will you hire a homeless person to help you?
@@MrJSpicoli In other words, you're defending greed. If other countries can do it, we should be able to do it. No one said anything about a homeless person but yeah, feel free to shame their unfortunate situation while defending corporate greed.
1500? In Canada? I just tried to list and commission was 42,000 and the agents were MAD....lol..It wasn't enough They actually deterred buyers from my home..my listing expired and my agent told me (in writing) why it didn't sell....... 1500 omg, that's the rate for 100 years ago in Canada lol
I have bought a lot of homes and I had multiple realtors mess up. One even had me wire $200,000 to the wrong account. I think I would rather go without a realtor at this point. They're a huge liability and I know the whole buying process. Really tired of paying these people to screw up things.
@@WillProwse Not everyone knows the buying process and/or want to do all the work
@@DaveB25 yes and I do. Why are you mentioning them when they dont apply to me? I am talking about me right now, not others
It makes sense since they really have no requirements other than passing a state exam and fogging up a mirror to show that they are alive. Most of them are either lazy or failures in their career jobs.
How did you get your funds back after the wire? And were you compensated by the realtor?
@@porscheoscar he said he would. He sent me the wrong wire instructions from his previous broker. So it took a couple weeks but I got my money back. Just a pain in the butt. He said sorry a million times but I had to front a couple hundred grand to close that deal. If I didn't have that money just sitting around I would not have made the deal. I don't know why we pay these people so much money to do a bad job.
I wish we had you as our agent. You seem to be honest and care.
In 96 my mother worked for $11 an hour 50 hours a week and was able to get a 48k mortgage on a 1600sqf home from saving $200 a month for 2 years.
Now I make $21 an hour 55 hour work weeks and... I live paycheck to paycheck in Lowe income government assistant housing because renting anything else would eat 2/3 my paycheck. I'll never afford to buy a house
@GarryTilmanHow can i reach this Mary Callahan Erdoes, if you don't mind me asking?
Have you talked to your mother about her plans for the house?
@@AliciaSalvadoreluckily my mother never plans on selling. She's had the best years of her life in that place and is more than happy to will it to me and my family.
@GarryTilmanThank you for this tip. I just looked the name up, wrote to her through her webpage and booked a session..
This thread has been enlightening so far, some piece of Info I could use👍
Buyers agent does way more work then sellers agent. I never saw the seller agent when I bought my house. Buyers agent showed multiple listing, showed us what to look for, financing, closing, the whole 9 yards.
Financing? Lol.....buyers get pre-approved by their lender, has nothing to do with realtors, unless the realtor will recommend a lender for kickbacks....stop making yourselves look so important
@@J-122-qi6mdtrue!
I don't know maybe it's just me... But I never thought the real estate agent was representing the buyer nor the cellar, the house is not his or her's, he/she needs the cellar to sell the house and the buyer to buy the house..... I always thought of the real estate agents as a mediator between the seller and the buyer, the agents was only looking out for him or herself finding the weakest link in the chain and then convincing the link one way or the other
In my case, all my realtor has done was LITERALLY open the doors for me! I found all the properties she let me into. And as a matter of fact,she never asked me what my price range was and has been sending me auto generated MLS listings that are a) out of my price range and b) not what I’m looking for. I did make the mistake of not interviewing other realtors and asking friends for referrals, and again, in my case that did NOT work out for the best.
So you sat on Zillow, and were too aloof to tell her your price range, you browsed and picked everything yourself because you chose to have fun looking at properties on your spare time, and you're sitting here complaining?? Are you aware that 90% of buyers ignore what the agents send because they're obsessed with looking at houses, and end up picking GARBAGE to look at because they don't take the brokers recommendations? 99% of the crap my buyers pick are ones I *crossed off the list* because there were issues with them that did not fit what the buyer wanted. When I explain why the house is *off the list* I hear, "Ohhh, I see. I didn't realize that. Oh yeah, now I see the problems in the pictures ... Oh oops, I didn't realize it was only 900 sqft... Ohhh I didn't realize there was no garage." Almost ALL of the homes I narrow the list down to are exact matches to what they're looking for, and they're *safe buys*. That is because I'm looking at 100 houses, browsing every single photo, zooming in to find the problems, cross checking tax records, and staying up all night just to find YOU the perfect match. 100% satisfaction, 5 star ratings, and my buyers highly respect me. If you don't choose an agent with a brain that's your fault. But you are just joining the masses of shit talkers who trash the industry and make us all look bad.
Let me tell you what….i chose my agent based on a recommendation from my lawyer’s paralegal who also works with this agent as her assistant. This paralegal knew me since JANUARY. So she absolutely knew my budget and me. She wasn’t a “random realtor” . She hyped up this realtor as “aggressive” and very experienced. But there’s more to the story than you know. So NO in answer to your question I didn’t just sit on Zillow 🙄, I was referred to a highly experienced, aggressive broker. I suppose I just trusted the wrong people and it wouldn’t be the first time, my bad!
@@kathyf1964 Who cares about the referral? Why didn't you fired the agent after 1 or 2 weeks when you saw he doesn't do a good job?
@@notnotnownow9622 Well….it would have been in HER best interest to find me a home since she was selling mine. She split her commission in sales contract, 4% on the sale and 3% on finding me a house. Because she didn’t put much effort into finding me a home, only sent me auto-generated MLS listings, I ended up finding my own house (for sale by owner). She lost 3%. Like I said before, there’s more to this story!
We’ve recently discovered that estate sales in our area are a great way to see a house that is either on the market or coming on the market shortly. During the sale, the house usually looks awful because everything is pulled out and messy. We get to crawl through the space without any obligations or contracts. Quick way to rule in or out a property.
Right after all these investment firms bought up most of the single family home the rules change and the benefit for them so that they don't have to pay all of the fees. This will save them billions if not trillions.
I think is by design, to make us a nation of renters.
@@John1908-vo1ivOf course it is because buyers will have less leverage, which is what all institutional owner/sellers want. Making homeownership cost prohibitive is the first step. Then the intrusion of government via the DOJ in this NAR settlement the 2nd step & we all know Wall Street & Gov are inextricably tied. Also word on the curb, private equity firms are buying up REOs & foreclosures directly from banks
I hope the sellers agent is ready to work with regular people trying to buy and asking questions. Nobody is going to pay for a buyer agent, housing is already completely unaffordable in NJ.
The sellers WILL CONTINUE TO PAY COMMISSION.
@@ianrooney2275 from my understanding, the listing agent can show you the property but as soon as the conversation starts getting deeper than they need to have the buyer agreement in place to work with the buyer.
We recently bought our first house and worked with only the sellers realtor. The house was well under market so we werent worried about negotiating. Closed in 30 days and everyone was happy.
@@alouise3557 they will pay commission for their listing agent to sell the house… the buyers agent doesn’t have to be paid by the seller any longer if they don’t wish to pay for it…
That means a lot of sellers are gonna take advantage of that and that means many people are either going to not have a buyers agent or they’re going to have trouble with their buyers agent trying to sell them more house than they need so they can get a bigger commission ….
Nobody became a realtor to help people, they became realtors to make money.
That's not true. I became a realtor after years of foreclosure prevention. I am actually not closing any transactions because I have older sellers who want to get an apartment that is double the price of the mortgage but if you are struggling it is not in my best interest to advise you to do this. I give all the options. Also, there are other options than selling your home when facing a foreclosure. You do not have to sell your home. Get an agent that actually wants you to succee, sale or not.
@@realvirginia Thank you Virginia, for being caring, not all realtors are like that
@@realvirginia I think you’re in the minority, especially down in my market in SoFlo. That being said, I don’t think it’s right to make a person work for free either, so I don’t fault the realtor.
I agree you should always have the client's best interest at the forefront of all of your actions. However, expecting a buyer's agent to work for free is not logical or sustainable. It makes zero sense.
@@Rich_Wagner Listen, angry person, nobody becomes a realtor with the primary goal of helping people, "and if they make money along the way, great."
Not ONE person ever sat down and said, "You know, I'd really like to devote my life to helping people buy and sell homes, and make sure they get the home of their dreams with no hiccups."
They become realtors to become wealthy. That's it and that's all.
If you hire someone for services, you should pay them. This is a change that is needed. I’m not paying any extra fees. If you want my house, you could pay 2% to your rep representing you. I’ve been in sales for 25 years , guess agents are going to have to be real salespeople now and “Earn” a buyers business.
Exactly, be a real salesperson. This will get rid of many agents. It's needed.
@HarryDirtay ?
@HarryDirtay they can kick the can down the curb for the next house, my friend lol clever, yes, but there’s plenty of moronic people out there that will agree to pay more commissions.
Jesus, how hard is it to buy a house? You got the price, down payment, and interest. This whole bureaucratic process is just a game for these people to make money. Closing costs? What for? I bought the freaking house.
Yes, is definitely a lot easier to buy homes in other countries, the seller and buyer go to a notary to record the sale and transfer the deed.
Agreed , I was an agent for 5 years and it was a ridiculously complicated game thats designed to make the brokerage the majority of the $ while the agents do all the work and pay all the office overhead and real estate insurances !
@@johnCjr4671bingo 🎯
everyone wants their 'cut' for processing the transaction...recording fees, lender fees, the realtor, the inspector (which the lender requires) etc.
@johnCjr4671 yes, is a pyramid scheme.
I live in NJ in a development with HOA. Single family home around the corner ( not in development) was worked on for months. Removed old septic and hooked up to city pipes. New HVAC, new roof and back yard fence. Amazing job inside & out. Went to the open house and listing agent asked me if I had an agent. When I said no she was not only happy to tell me she would also help me to sell my home & purchase the one I was looking at she did so in an aggressive manner. I very quickly not only said no thank you, i made sure she saw the look of disgust on my face. She not only didn't speak to me any more, I think she was glad I left. I understand times are tough in the real estate world but please don't think those of us looking at a home are idiots. You don't have to be a genius to know the seller's agent is working for the seller not the buyer. I will never look at another home that agent is associated with.
I'm sorry that happened to you. Not all agents are bad. I swear!
Slime isn't reserved for the real estate profession, it's rampant in EVERY profession. Pick your RE agent carefully as you would hire an employee. I'm sorry you live in an HOA.
@@JackieBaker i met a good one once.....in 1975
So they OFFERED to work for you and you showed them disdain. Yeah I don’t like sales vultures either but I also don’t treat them like vermin. The middle way. How would you act if you offered your work to a prospective employer and they looked down their nose at you.
@@cece2347 I don’t understand the disgust
Avoid buying and selling through Realtors! Not necessary. Just need an attorney!!
Hello I am looking into buying a home and i am a first time home buyer. Since I am new at this I had a little a misunderstanding with 2 different agents, one who happens to be a family friend but looks very young and not enough experience the other one she's on top of her game seems like to me and talks a good one. She does sound very helpful to me, but now that I see this thing with the buyer being the responsible person to pay all the fees I am now hesitating that I am going into this blindly.
Please tell me about "just getting an attorney" are you saying that they would be the ones negotiating my deal and writing out the contract?
They just write the contract, you do everything else, including negotiating the deal
These changes are VERY GOOD for buyers and sellers. Agents not so much. As a former buyer and future buyer I have NO issues paying an agent for their work for me.
I am a seller myself presenting myself 😊
Zillow FSBO 1074 Hamlet dr Maitland, Fl 32751
15 away from downtown Orlando 🎉
@@StarfireReborn Regulations are there to help the big corporations and hurt the mom and pop businesses. In a free market there are no corporations because the government doesn’t charter corporations in a free market.
How is this great for buyers? Getting tied-up in a contract with a bad agent sounds like fun.
@@maximusmax5077 Just don't get a bad agent. It's good for buyers since it puts them in the drivers seat to set the terms and expectations and more should be expected from buyers agents seeing that they are now being paid directly by the buyer from their work. Buyers will also see ALL types of properties and not ones suggested by the agent to get them the most income from the sale.
@@Tammy-iz5rz Corporate ownership of single family dwellings should be illegal.
Weren't buyers already paying part of the commission, hidden in the sale price?
Yes, and that was the core of the lawsuit.
Yes, the buyers paid for everything. The lawsuit is beyond me. Why was it brought by sellers? What was sellers complaint if buyers paid for all…
@@Fairy71128 so that the selling agent can get the full 6% and then the buyer pays an extra 2 plus percent out of their pocket doesn't take a genius to figure that one out all about greed on the selling agent you're nothing but snakes
You’re absolutely right first time buyers are going to have a hell of a time! But with all these new changes comes competition . there will be realtors who are going to give full service at a discounted price! Now with that being said first time, buyers would be better off to walk into a new home subdivision and get all the discounts and credit they can get on a new build!!
You're still better off using a real estate agent. The new home builder's agent represents the homebuilder. If you bring your eal estate agent with you, he/she can negotiate extras like amenities and upgrades, can recommend a lender that works best for your situation, and can oversee a home inspection - you definitely should get your own inspection with a new build instead of relying on the builder. The buyer's agent doesn't cost the buyer anything - the builder has their commission built right into tthe price of the home, so you'll pay the same whether you have your own agent or only rely on the builder's agent.
@@deeannaburns912 I sell only new construction and there is a lot of myth and not a lot of fact in your response. First, no agent can negotiate upgrades that a builder hasn’t already factored into the equation, agents don’t have some magical talent that is going to make a builder give more than they typically would. In fact, the most negotiating is typically done with the home buyer who can demonstrate they are best qualified to perform and least likely to be a pain in the butt. This has absolutely nothing to do with having an agent or not, quite the opposite. Frequently we meet buyers that seem pretty reasonable but their agents are clueless and make all sorts of erroneous assumptions in attempts to prove their worth.
Also, you don’t need an agent to get a home inspection with a builder. Our contract clearly outlines that the home buyer has a right to get a 3rd party inspection and we encourage it whether they have an agent or not. This really is not the big deal agents like to make it out to be. The home buyer gets their 3rd party inspection around the same time the local municipality is doing their inspections, and it all gets wrapped into a final punch list. No problem, standard procedure.
Lastly….it’s now a big no to say agents services don’t cost a thing….come on now, have you completely not heard anything out of this law suit? 😂
@@ashdav9980thanks for commenting, agree, no need for buyer agents with a new build especially. Why would I need another person in the middle to complicate the whole process and collect money for nothing? I can go to the builder, look at models opened daily, get pre-approved, do inspections etc.
@@deeannaburns912you are very dishonest about the commission for a new build.The buyer agents will not do most of the things you said for a new build. They did not even attend inspections at used homes I purchased in the past, do you think they will come at a new home inspection? And like the guy below my comment, you forgot about what the NAR lawsuit was about?
I am about to buy a house cash in the Charleston SC area, if I see something I like on Realtor from what you just said I can talk to the listing agent and make my cash offer and don't need a buyers agent. Though they don't work for me they do have to present the offer and as the contract will be gone over by a lawyer before I sign it I can see I really don't need a buyers agent; thank you for this information
How many buyers can pay with cash? Everyone doesnt have that benefit. Even still, a lot of home buyers dont know what they SHOULD do when buying a home. Boomers have been buying homes for years and left millenials in apartments. No ownership.
Buyers and sellers need to recognize they can do all that is necessary themselves with inspectors and lawyers.
The inspector my realty hired for me spent about 20 minutes there, my neighbors told me, and reported only the one problem obvious from the outside even to me, and found NONE of the other serious problems that would have certainly been found if he had truly looked inside the crawl space and attic and even checked fully inside the house. For a hefty inspection fee.
@@dorothymartin8557 yup. I've heard it from other inspectors that the "inspection" over the years has deteriorated into just smoke/co2 detectors, lead paint, popcorn/asbestos ceilings. Nothing that is really helpful to either buyer or seller. An inspector does NOT fix problems. All he does is inspect for signs that something could be "a problem" and then someone brings in a contractor.
That assumes everything goes well. When I was a realtor, I had to step in several times when all of a sudden the buyer, who was a lawyer, thought she didn’t have to come to closing, and she could sign closing paperwork whenever she felt like it, despite the fact that there is a date on the contract. I also had to step in when I was representing a seller and one of those “ buy a house with no money down” People showed up and wanted to write a contract with no money down and the ability to walk away whenever they felt like it with no repercussions.
@@latsnojokelee6434 No lawyer would do what you say here.
Amen
Just made a home sale sitting on $545K equity, not sure where to go from here. Is it a good time to buy into stocks or do I stay 100% cash?
I wouldn't stay 100% cash, banks are ruining us in real time with inflation. I'd suggest you employ the service of a seasoned advisor
True, despite having no prior investing knowledge, I got fully invested just before the pandemic and pulled $150k in profits that same year. In reality, all I was doing was following professional guidance, and as of today, I'm only 10% shy of a million dollar portfolio.
@@Curran-m-i real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed! who is your advisor please, if you dont mind me asking? i'm 56 and need to catch up with investing
She goes by ‘’Katherine Nance Dietz’’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
excellent share, just copied and pasted Katherine Nance Dietz on the web, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
I’m closing in on retirement and I'd love to move from Minnesota to a warmer climate, but
home prices seems ridiculous today coupled with the fact that realtors these days are something else, do I go ahead with buying a house anyways, or look at other sectors of the market as of now?
consider talking to a well-experienced advisor about which sectors of the market to focus your portfolio on, diversification is actually key to good investing.
Agreed, amid covid-19 outbreak, I simply adopted the service of a certified financial
planner instead of panic, and thankfully, I've accrued nearly $1m ROI after subsequent
investments to date, marking my most significant financial milestone
@@J.woltz48 this is great! once you hit a big milestone, the next comes easier.. who is your CFP if you dont mind me asking?
I take guidance from a Montana-based advisor ''Katherine Nance Dietz'' To be honest, I
almost didn't buy the idea of letting someone handle growing my finance, but so glad I
did
very much appreciate this.. was able to look up Katherine by her full name and at once found her consulting page, she seems impeccable !>
The seller's agent will likely advise their client to increase the list price to allow for the anticipated request to reduce it by the buyer.
Seems like a very simple answer. If you are the Buyer ---dont have an Agent. You are the buyers agent ---what do you need that for anyway with the internet. Seller pays his agent fee as he should. Sellers agent can do all the work and get the whole comission. Win-Win.
Yes, your theory is right. Buyers will offrer less and this is how it works in other countries or work without buyer's agent. 🎉
This was informative. Thank you.
Awhile back we sold an inherited condo by owner. We hired a “transactional” realtor who just handled the paperwork for about $600. He also got us listed on the MLS. As a bonus he actually gave us some advice as we went along. Knowing that buyers agents tended to not show FSBOs, we put a 3% commission for buyers agents on the MLS. To us it was worth more money to have someone bring us a buyer than to sell the condo. Although the buyers agent obviously had disdain for us, our transactional realtor was a great go-between. Highly recommend this set up for similar situations. I don’t know how an FSBO can advertise a commission or that they will pay a fee now.
That's NOT what my rea state agent told me.
Commission can be negotiated with the other real state agent.
Ummm… Realtors constantly refuse to show homes to their buyers that are FSBO or flat fee. It's stupid, but now the gloves are off and we are NOT going to be nice. The days of the 6% commission are over and thank God we will see the number of agents cut by more than 75%
They called me today telling me i have a buyer but i have to list your home on MLS 😮
i said No !! I am FSBO but call me again after August 17 th 😂😂😂😂
Amen!!! I'm glad NAR is in place. I feel for the very few good ones but the other 97% get no pity from me.
Hire/set agreement with a good attorney ahead of seen any houses, then contact listing agents to see any houses. Listing agent can write your offer, especially if it’s good.
For my last two homes I utilized a MLS listing service. It gets your home on the market and you pay around $300 for 3-6 months. The buyer usually has an agent. So you only pay 2.5 or 3% of sales price instead of 6%.
I guess it begs the question, why have real estate agents at all? Many more sellers should go FSBO and buyers can negotiate directly with sellers. Hire an attorney to do the paperwork and split the costs.
I bought my first house without an agent and we worked with the sellers agent only. It went fine. When i sold my first house, my selling agent was an idiot and ended up getting me sued by the buyer's some time later and he was no where to be found when i went to court.
@@Lordy2020 how can you be sued by a buyer?
How can you be sued by a buyer?
@@SplashSymphony easy. They went to small claims court. They never turn down small claims.
@WaveRider-js8uh the contract stated I owed them appliances, but when I lowered the price by 25k, the appliances were no longer part of the deal. My realtor did not change that detail in the contract and just was lazy and changed the price. I didn't catch either. So they buyer sued me 6 months later.
@@Lordy2020 and who signed the contract? You mean you just signed a contract without reading it?
I think buyers will do one of the following: use the sellers agent though it may not be prudent, pay a low flat fee to a buyer agent, or hire a real estate attorney rather than a buyer agent.
Attorneys aren’t going to leave their office for you. They don’t want the headache. They don’t know jack about homes, new or old, they don’t know what is important on an inspection report and what is just fluff. They don’t know how to analyze a home appraisal or how to fight it. They don’t have MLS access so they couldn’t fight it if they wanted to. They do NOT know how to negotiate. They are taught to SETTLE.
People that think this is a good alternative are in for a rude awakening.
Thanks for explaining that you can agree to a "one day" buyers' agreement to at least get inside and see a property. I spoke to a realtor recently about seeing a property and he made it sound like I had to make him my exclusive buyer agent long term even though I only wanted to see the property inside to get a better idea if we truly wanted to pursue a purchase on it.
We purchased a home a few months ago using an attorney. The only problem was the selling realtor didn't like it, and made it difficult for us. It will take many years to change the culture.
Mooch culture
@@MrJSpicoliHeck yea, everyone and their brother and mother started selling real estate in Florida.
FYI - as a Rea Estate broker - buyers can negotiate with the sellers regarding buyer commissions. And fyi - I work REALLY hard for buyers because in our state it is "buyer beware". The NWMLS is not part of the mentioned lawsuit. So for now, sellers are still paying some or all the buyer commissions. This may change but will take a while.
So glad I bought my house in 2019 because this sounds like a mess. I sold my other house private sale because realtors don't really do anything now. Everything is done online, all the contracts are digital and copy paste. What am I even paying for? I feel the same way about new car sales, just let me order it online and deliver it to my driveway lol.
Yes! And the percentages instead of flat fees is ridiculous. An agent does the same amount of time and paperwork on a 500,000 home as a 250,000 home. Why they should get thousands more for the same work is beyond me. It's pure greed. I don't trust any of them.
just go to the local Office Depot and buy a blank real estate sales contract for your state and buy from an owner and save everybody time and trouble. I find buyer's agents that I have used have less knowledge than I have and just seem to confuse everything.
Just get rid of agents altogether, they just sign papers for you and take a piece, most wont answer questions or help with anything important anyway.
sounds like you’ve not had good realtors. mine has been amazingly helpful.
You obviously have no clue what an agent actually does.
@deelehey2827 hhmmm only good realtor I had was in 2005. All after, never helped, never negotiated anything, they were merely acting as an unnecessary middle men that required me to use them so they can email or call the listing agent with the offer or other questions. Def not worth the commission they demand. I can email and call myself.
@@deelehey2827sadly neither do most realtors
@deelhehey2827 ha. Look at Australia for ex. No buyer agent, only listing. 1% commission.
All my real estate agents have been awesome full service. Loved all the benefits I received by working with them. Thank you for bringing this information to me in this video. 🙏💜💫
The real question is that realtors offer useless or very little service of real value for the huge commission they sometimes get. I have bought homes without realtors and guess what, it’s not complicated at all. There are standard contracts for buying and selling. The buyer would have to be more proactive in researching homeowners association rules but title companies will handle financial liabilities tied to the property. Unfortunately in this country realtors have total access to the price history of properties through the MLS. That’s really the only true value they offer. They usually don’t know a thing about the structural integrity of the home. They just open the door and make smell nice with cookies. Oh yes and often time they have a nice car to show you homes. I can guarantee most buyers would be happy to do their own research if it meant saving 50% or 70% on a highly priced home. Yea Jackie, don’t lecture me or try to justify your commissions. What is it that you do that a buyer or seller can’t do if they had full access to the MLS. I pay whoever maintains or creates those listing and open the door myself to the sale or purchase of a house.
100% agree
Meh. I've had agents that absolutely earned their money. I had a home sit on the market for 6 months due to a bad agent. Fired the bad agent and got a new one who was amazing - made suggestions to get the property sold faster, got the subs to do the work, drummed up interest in the property and got it sold inside of 30 days. She earned every dime and I needed that help considering I had already moved to a different part of the country. Other agents I've worked with have been glorified home tour guides who didn't come close to earning their keep.
maybe I was lucky. I’m a first time home buyer and our agent did so much for us! I don’t know what we would have done without her.
Jackie, I feel so educated by you. Thank u so much
Thank you for all the info, I am going to buying as first time home buyer, I was thinking of buying a new home from the builder directly .
Me, too, first-time-buyer AND most likely will be buying a new-construction home in a new community/sub-division. However, I'll still be open to pre-owned homes so I'm not missing out on anything there that I might really like.
Regardless, I still hesitate to go through the buying process alone due to my not knowing all the buying details such as timing things to get done, deadlines to meet, inspections, appraisals -- whatever. The SELLING process is not so complicated but BUYING is. As well, I'll be using a VA loan, And I'll need help finding the best (and reputable!) lender.
Even buying a new-build directly from the builder isn't that easy, since builders have their own agents...I'd not want to use a builder's agent who's looking out for the builders best interests, not mine -- I'd want my own agent.
My main problem is how to find the considerable amount of money (!) to pay my agent out of my own pocket...unless the builder pays him/her. Builders used to, but not sure they still will given these NAR changes.
As for a pre-owned house -- should I find one I prefer vs. a new-build (for whatever reasons) -- yes, I'll be the one paying my agent. ;-)
All that aside though, personally I still need to see mortgage interest rates come down. As for home prices, in my markets of interest they are and have been coming down even if slowly, but I expect them to come down roe when supply increases, that coming mainly from builders of new homes since most current home owners are still hesitant to sell (also due to high rates) IF they'll be needing a mortgage for their next home. which will be at a much higher interest rate. Of course, that doesn't apply to CASH home buyers (but that's not me!).
-- BR
@@billredding2000get a real estate attorney, please. For pre-owned and new build, should be less than 1k.
@@John1908-vo1iv Thanks...
I’m not quite sure of the advantage of hiring a buyer agent. Why wouldn’t the listing agent be highly motivated to show their listings after talking with the prospect?
I thought all commissions were settled by the listing agent’s broker among involved agents when a property is sold.
I have purchased four out of seven homes without a buyers agent. I’ve never felt like I needed an agent to buy a home.
Thanks!
Thank YOU so much!!!
Thanks! I'll be buying and selling next year, what a mess they created.
I have been starting to look into buying a house. My brother just bought a house in Jersey and I came upon one of your videos and I love the videos. Thank you! I will be watching more and more of them! You seem very down to earth and out to help the buyers
One more thing to note. Va does not allow the buyer's agent to get paid by the buyer. She also mentioned this will be tough for first-time buyers to come up with the money. So how does that affect the seller, well less offers. Plain and simple and the sellers will probably as she mentioned start reducing the price of the home. In my area the sellers are offering buyers compensation because at the end of the day the seller wants MORE OFFERS and does not want their house to sit.
@@NicolePiontek-sj1zg Let's hope they do and first time home buyers need a huge break because they won't be able to afford it and many 2nd home buyers won't either.
Great information. I just listed my house in CA I offered 3% buyer 3% seller fee. I had asked for another one of your clips since I am relocating to another state, WV. If I could just buy the house from the listing agent. You answered that question in this one. Thank you. I guess I will talk to them and see how honest they are. Thank you.
I agree that buyer should pay their own agent rather than seller paying for an agent who does not represent you in a sale. Frankly I've had it with agents getting a commission to basically list my house for sale, do an open house which has never resulted in a sale, and send out flyers. I'll deal with an atty next time around. I paid for my house and it's upkeep, not the realtor or the title company. What a scam.
I appreciate your forthcoming attitude and answers to a lot of questions. I am currently in need of renewing my Pennsylvania RE license . I do believe the costs of buying/selling ( mostly buying ) is completely out of reach for most normal hardworking people, but I don’t believe all hope is lost! The two RE transactions I have been part of for my immediate family has saved them thousands of dollars ! I enjoy the challenges being a Realtor brings. It is the best feeling in the world to know you helped someone achieve the purchase of their first home!
All stuff they did thirty years ago and confused everyone during the seller buyer transaction, incredibly complicated. So they revisit mass confusion. If a seller desires to offer 10% as incentive that is their choice. Developers do it all the time.
Just work through a listing agent. Get an inspection company, attorney, and title company if you decide to buy.
13:00 *Not sure how things work in NJ, but here in AZ, in a dual agency situation, the listing agent's fiduciary is no longer to the seller. The listing agent is now "representing" BOTH the seller AND the buyer, and is required legally to NOT favor one principal over the other.*
Then who gets the best price?
@@phx4closureman ironically, that's impossible
@nomdeguerre8464 no, it's not. We do it here all the time. It has to be disclosed in writing up front. We have special forms understood and signed by both parties.
@phx4closureman you don't understand what I'm saying. I'm saying, while legal and allowed, it is CONCEPTUALLY impossible to represent both parties.
That's like having a single attorney as both the prosecution and defense.
I loved this video! You explained everything in black and white -- so clearly! I have listened to many NAR settlement videos, and every interpretation of the settlement in these videos was so different and confusing for me. Thank you from a South Jersey resident for your honesty and clarity.
You're a good agent thank you
I have purchased and sold several homes and it has always been like this on every transaction. If you elect zero your home may not sell. I have sold FSBO and purchased FSBO with the right agent it’s worth it if you need to sell or buy .
Buyers should finally realize they do not need a realtor to buy a house and in fact they are in a better position to negotiate when they do not have a realtor! We are heavy real estate investors and we absolutely never use a realtor which is why we get better deals!
I really appreciate your explanation of these changes!! There are still areas of the country where there are bidding wars on homes and people still paying $50k - %100k over list price. Rochester, NY is one of these areas. In that situation, I can't see sellers offering anything to help with the buyer's agent's fee - they don't need to because they are typically getting 7 - 15 offers on their homes. For me, I'm very upset this has happened. I've been trying to get a home for the last 3 years - looking in different areas. I've been outbid every single time by people with more cash and I'm not in a position to give an agent 3% in addition to what I'd be paying for a home. Most sellers are making a profit. I've sold 3 homes in my long life and never had a problem with the commission coming out of the proceeds - to cover both agents. Now, buyers have to come up with even more money - it's like you are being penalized for buying a home.
Honestly charging a6% is stealing from the owner. 3% should be fair
3% total, cost to buy sell close.
There is a lot of work that we do behind the scenes that you do not realize .. especially if you are getting a loan on the house .. if you have cash it’s a lot easier going thru the process of a title agency….in Florida ..
Good luck 🍀
I have not heard a compelling reason for paying a real estate agent a % of the selling price of a home rather than a flat fee. The paperwork is the same on a $250k home as it is for a $750k house.
@@fastmz3 You are 100% right. Agents just got sued in court and all they talk about is how to get around the law. That tells you everything.
@@fastmz3 there are many companies and agent working on a flat fee, you choose whatever you want to use. The idea of commission is that you pay it only when is done and it's done only when you are happy. I would love to get half of that commission as flat fee but upfront, regardless if you sell or not your home. Do you agree?
Great breakdown of the new changes,Jackie! 👍👍👍 I was in real estate for 15 years. Retired in 2018. This sounds like there is simply greater disclosure and explanation to buyers and sellers and agents of how the commissions are paid, and who pays them. Educating buyers and sellers to understand this all is the key. But, oh my goodness, I'm sure all of the new contract legaleze must be a royal pain!!! 😓
If we use an agent, we will only sign for that property. Like Jackie mentioned. And go to open houses . But I may get a license for the heck of it as well.
You're awesome, I was a realtor in NJ 40 yrs ago
Love your videos!
Thank YOU!!!
My friend's brother-in-law just started his career as a Realtor about 2 years ago. He loves to brag how great he is at selling property. I think this law is going to be a wake up call for him
I have friends who are new agents. One is at almost zero earnings. Involved in about 350 k of sales this year. The other who started a bit earlier did ok last year. Ok being they actually make a few thousand at the end of the year. This year….not going well and sending desperation.
@@vicp99those few thousands will barely pay for their license and monthly fees. They better get a real job soon.
Yep! They got in after the 2006 crash and houses were booming. They just answered the phone and wrote contracts. My sister is a top realtor in my city and she said there was so much business it was not binging like the 80’s or 90’s, canvassing, mailing brochures to get potential customers. She couldn’t keep up, people were calling her. She’s gotten very well off. She worries about down times, and I see one coming.
I have had buyer sign the Buyer Agent Compensation Agreement. They were happy to. It is the Buyer's bringing the money to the sale. like you said put it in the negotiation. Thank you for this, hope it helps out people in Buying and Selling. Have a Blessed day. I am in Central Oregon.
As a result, only fair thing is home price comes down since seller doesn’t have to pay full commission out of their home sale.
Yeah, that’ll happen. I’m sure all sellers have a heart of gold and will say “Rather than keep this money, I’m going to lower the price of my home and let the buyers keep that money”.
Uh huh 🤦♀️
Or split the closing costs in half
You people have no idea how this works because you're listening to idiots. The sellers WILL STILL PAY THE FULL COMMISSION. It just will not have the amount listed on MLS. I cannot believe how gullible people are. There are explicit sections on the listing agreement allowing the seller to pay the compensation to the buyers agents, and THEY WILL when the brokers tell them that if they don't pay up, they don't sell. And I have news for you. Going directly to the agent will allow the seller to pay BOTH sides to the sellers agent. Yet you will not have undivided loyalty because you sat on youtube too long instead of talking to a professional.
Do you really think the prices will go down??? Be aware that prices always included both agents commissions and if you don’t want an agent - negotiate the price down by minimum 3%
@@Fairy71128 that's absolutely ridiculous. SELLERS ARE STILL PAYING THE BUYERS AGENTS.
you have always been able (as a seller) to offer a lower or no buyers agent commission- it just won’t be listed on MLS now.
Realtors’ commissions were absurdly excessive and this correction should have happened decades ago. How the industry and NAR got away with a level of greed that would have made Gordon Gecko blush is a mind-boggling. This is a win for sellers and buyers.
Exactly. They are after your money (your). It's not the seller's problem these RE companies have high expenses because of greed. It doesn't take that many people to find and close on a house. Pay nothing on the buyer's agent side buyers
How is this a win for buyers?
@@LT-em1vu - if the buyer doesn't pay anything, then what incentive does an agent have to drive the buyer around, go look at 30 houses, negotiate the deal, get the inspector in line, get closers together, etc.? People don't work for free. Before it was just custom that the seller paid for both sides and now the buyer has to worry about this when they have to come up with down payment, inspection costs, pmi? I'm so glad, I don't need to buy or sell at this time. What a headache. I sure hope they come up with a better system when I need to sell and re buy or I can see houses just sitting.
The brokerages get most of the money lol, not the agents
@@JD-tn5tb It's a big win for buyers. We don't need two Agents involved. In your mind it's needed but not ours.
Outstanding video. I am a real estate agent in Ocala, Florida. I like the detailed explanation, the pros and cons of each possible situation, how to maneuver with or without a buyer's agent, etc. Congratulations Jackie. I have watched famous real estate coaches explain this and watched many NAR videos. You are showing a practical application of the new rules.
These changes will affect first time buyers the most because they're not going to be represented by the listing agent accurately. The listing agent represents the seller.
And the buyers agent represents him/herself. 😊
@luke31ish. Seller agent represents the seller until they sign a contract with the buyer. They then have a fiducuary duty to represent both parties fairly throughout the process.
I'm in the process of buying the one house I love my realtor she is amazing so patient my first house changed my mind twice the second house wanted us to pay .5 percent of her commission 12hundred 95 dollars I had no problem I love my realtor I did finally find another house number 3 she negotiated a great price please if u have a great realtor make sure they get a good commission I live in Florida ❤thank u Casey u are the best realtor if ever see this❤
I've bought and sold 5 properties without a real estate agent or hiring an inspector. In this age of Zillow and social media, advertising is virtually free. There are purchase agreement templates online. The title insurance company handles the heavy lifting for a pittance.
It's remarkably easy if you have practical skills in construction, tech, and business in general. Do a little research and MAYBE invest in an inspector if you lack the appropriate skills. Save tens of thousands of dollars.
As a first time home buyer I really just want to give up at this point.
I appreciate all the information you give on the housing market. Thank you sooo very much.🙂🙂🙂
I’ve never had a good real estate agent. I feel like most of them were only out to make money, and they didn’t care very much for me.
Thank you Jackie for an informational message! I too share a similar sentiment that a buyer will ask the seller to drop the price to help pay for the buyer's broker compensation. What I have a hard time understanding in that thought process is this: Lowering the sales price to compensate a buyer's broker still doesn't put cash dollars in the buyers bank account whos attaining a loan for the purchase. It makes sense on a cash purchase, however those are not the majority of home purchases. I think a savvy Seller is going to know that paying a buyers broker commission is still the smart choice as their property most likely will sell for more money (that compensates for buyers compensations) and the buyer will not have to come up with the extra cash at closing while is all part of the lending process, as it has been for decades. "Subscribed"
Sorry but buyers agents are overrated... I bought 4 properties so far and I never thought "Glad I have an agent"... Most of the time I was wondering what they did for me...
Thank you so much for explaining the new rules, ins and outs! I will listen to this video again.
This is unfair to buyers, I end up with the debt, I also have to pay for the closing costs, and now a fee as well?!
Keep in mind that 5-6% were always in the sales price. So, if seller isn’t offering to pay for your agent, lower the price by 3-4% and pay your agent directly or ask sellers contribution
@Fairy71128 then the problem is I planned to ask for 3-4% off anyway so now to cover the cost of what I'll pay my buyer agent I'm talking about asking for 6-8% off which is much less likely😊
@@BelieverMeSF yes, you can negotiate yourself without an agent and save 3% off the price or more. You’ll need to find good comps, which is also possible. The only thing I find that agents help the transaction moving along, if the seller isn’t reasonable, the agent can reason them. Also you’ll need to contact a lot of seller’s agents to view houses to select what you like.
Well. I sold and bought a house 6 months ago and I went through nine realtors before the transaction was completed and I was still screwed over in the end. So there's definitely an issue going on.
Agents should split their commissions with the buyers agent. According to Jackie, it's the right thing to do.
That is basically what was happening the old way.
That’s why listing agents love to sell their own listings.
Excellent presentation. However, I have a question that hope you or anyone posting here can answer. What are you accomplishing by not posting the buyer agent commission..??? The buyer agent has to call to make appointment to show the property, and can ask if there is any commission for the buyer agent..??? And the buyer agent need not to be stupid enough to say "If there is no commission, I will not show the property to my client."...!!! The buyer agent just simply avoids showing it. So, the buyer agent ends up showing the properties that do offer buyer agent commission !!!..Please explain how this changes anything? Please explain if I'm wrong...
My Buyer's Agent found a home listed in the newspaper and decided not to show it to me because it was a FSBO, and the owner was not offering a commission.
I also found that home in the newspaper and asked my Buyer's Agent about it.
Long story short, I bought that home and directly paid my Buyer's Agent.
I will never again use agents.
It was in the year 2000 for $215000 in Longmont Colorado, when interest rates were 7.25%.
Now, it's worth about $500000 and I recently paid it off completely after cash-out refinancing it several times.
And who hired and didn't fired that agent? Oh, you?