The percentage part is what gets it for me, No one else, GC, electrician, plumbers, carpenters (who do the most work 😏) plasterers, roofers, etc.) gets a percentage, except for this lady who walks in at the end and smiles for the pictures. Apologies to realtors,. Excuse my slight tone of resentment.
The problem with these commissions is that the proportionality is unrealistic. A 600k house does not require necessarily any more work on the part of the agents than a 300k house. I was a specialty inspector in residential did hundreds of inspections for realestate transactions. Stopped doing it, a quality inspection takes a lot of time and people didn't wanna pay a higher price for quality.
If you boil all this down, it simply means that ALL agents will have to become more competitive and hustle more. The days of sellers funding $20k paydays are over. I've FSBO my last three properties. I paid a buyer's commission in two of them, but in both cases I refused to pay more than 2%. With this settlement and it's mandated changes, that 2% will now be a flat $5-10k, max. Sellers agents are simply not doing enough work to warrant the kind of pay days that the previous 6% model gave them.
In today's environment (virtual listings, banks doing all the paperwork) the seller's agent (and frankly the buyer's) literally do nothing that adds value.
I have personally inspected several NEWLY built homes with too many material and labor quality issues to continue with the build without these being addressed; some with severe structural issues and these still managed to pass inspection . Housewrap, siding and drywall hides all sins. No other industry gets away with charging top dollar for an inferior product that goes unnoticed untill it's too late. A home that should last a lifetime CANNOT only have a one year warranty from the builder.
Never use an inspector in the same area of the real estate agent. Sorry to say it but agents want a sale and will use their inspector who will not give an accurate account of things.
Two whole days would be an eternity as far as I've seen. I looked at three homes back in the day and the agent acted like I was dragging my feet. She ended up making about $14K after putting in MAYBE six hours of work. And while it's true that they have to give a cut to the broker, that's still a huge rip off.
Not sure of you alls experience with an agent. However, a good agent does more than two days or six hours of work. I work everyday with my client until we get to the closing table. And, think about those months that go by as you show the buyer client around. We can go 6 months to 5 yrs showing around the same client before we reach the closing table and not get paid. Would you go 5 yrs where you worked without pay? Most people are only thinking about what a realtor might get paid, but fees are negotiable. Stop being small minded. Go out and actually interview a realtor. Ask them what they actually do. What was their longest transaction with a client, etc. Because you guys don't question a doctor that comes into the room, sits with you for 2 mins, gives you a prescription, then sends you on your way and charges your insurance for thousands of dollars.
@farrelli7777 I don't think that you're aware of what goes on behind the scenes. That being said, I don't like the system for compensating realtors either.
It was/is still ABSURD to pay a percentage as an agent fee. There should be a set fee for a set period of time. There is literally nothing substantial difference in listing a $100k house or $500k. Yet, paying 5x more because I sell a nicer home doesnt yield 5x more expense to the agent. When an agent provides additional services like 3D pictures...that's an expense. But, again, doesnt justify a %. It should be a fee, like everything else... Cost + Markup.
@@jessicah3782 The brokers are the ones making all the money. Agents a lot of times do a lot of work and people decide to not buy or use another agent. Agent gets paid nothing for their time.
Ms. Sylvester seems like a nice/honest person. I would be interested to know her take on whether Real Estate Agents play any part in the price inflation that has been going on. I know all the rest of the excuses. But there is still this "tiny inkling" ... that commissions have been incentives to padding the prices .. to increase commissions. I will "try" and listen to the rest of this discussion .. to see if anyone addresses this eternal question.
I was going to hire this agent, but he didn’t bother to come at least seeing my house after two weeks talking to him; I find him to be lazy for the commission I will pay him, so he was a no go
My ex just listed her house and was basically strong armed in to paying both the seller and buyers agent, by her agent basically saying no buying agent is going to bring their clients to your house if you are not offering a percentage. I was told this same thing by another agent in another town. The real estate industry is resisting this tooth and nail. Raleigh, nc.
This has been happening forever and immoral humans will find a way to game it for greed, if regulation doesnt shut it down. Big government? heck yes, that is why we can breath the air and drink the water today in the US. America is great because of regulation...government. I respect US government.
They'll hide the fees in concessions in August. White collar extortion for exposure is still extortion. Agents, you did this to yourself with greed. Help U Sell, FSBO services are the answer for transparency/value. Once that reaches critical mass acceptance, we'll have won the greed / little value added battle of the unscrupulous agents.
The buyers never had to reach in their pocket per say to pay the buyer agent commission, but they actually did, and it was worse! For ex, the house was listed at 430k instead of 400k, the commision was baked into the price, so actually the buyers were financing the 30k comission for the entire duration of the 30 year mortgage, which is worse! Because they are also financing the listing agent comission as well. The 30 k includes the comission for both brokerages, and this is how was done until now. Basically, the seller was paying the comission, but was inflating the house price to make up the commission. This 30k can be 42k after 30 years at 7% rate. Can't believe how many buyers do not realize they were paying both commissions all along! With few exceptions of desperate sellers, divorces, death in family, sudden relocation, job loss etc.
In 2017, my agent worked for an agency that was more concerned with protecting 'their builders' who refurbish homes than sellers. I felt abandoned by my agent and swore them off fir the future. This was apparently the best agency in the area.
@solitairecat1 Not all transactions need an agent, but some definitely do. To think there is never a scenario that would warrant realtor for a transaction is silly!
When we bought our first house in the late 90's, we were short on cash. I talked to the seller, and we worked out a deal. He raised the price of the house by $5k, and he had a check waiting for me at close, in an envelope. (The seller was in close first, and left the sealed envelope to be given to me after we signed all the documents.) - It basically just rolled the amount in to the loan for us, and was a push for him, since he had inherited the property and only had to pay taxes based on the value change of the property difference from the date he inherited it, and the date it was sold. He sold it under market value, even with the $5k increase, so he had zero tax implications on it.
This settlement will result in consumer savings. Under the new rules, buyers must sign contracts with their agents, and fees will be based on the level of service they request. Uncoupling buyer's commissions from the multiple listing of the property will allow the seller to evaluate the total offer from the buyer
The buyers agents can still negotiate for the seller to pay compensation for the buyers broker. Also, in order for any agent to open a house for a client to see they must have a contract in place that discusses compensation ahead of time.
I have been doing real estate investing and deals since before your guest. Since I was a graduate student in 1993 and purchased my first property at an auction. Flat fee is most likely the result for everyone. My best guess.
yup, my kids got a brand new construction during the insane seller's market and was buying from out of state. Because homes were selling fast, many people got roped into waiving the inspections! Kids were one, and house was built without a water barrier so they got water seeping into the rooms by the windows and warranty was expired.
Faulty window barriers is a common error in construction but ask Inspectors if is likely to catch it at the finished stage of constructiont/inspection...i have doubts any could.
I sold a home and bought land within weeks of each closing my agent was very active in both , the listing agent for the seller was late for all the meetings, barley said 3 words to me . I hated the thought of knowing she got paid!
Agree, they all say is negotiable, but yet, I never had an agent who agreed to lower their comission, not even by a measly 0.25%. Is an unspoken rule....saw a video on Sachs shows when he asked the listing agent if she will accept a lower commission to make the deal happen and she was very offended and said NO.
I was getting "cold-hearted" business-woman vibes .. which made me want to end it, too. Found other recent videos by Christina that are a delight more true to her form. :-) Then came back to sit it out because I appreciate her so much!
Yes, always get a home inspection and a land inspection (survey) especially in GA 😂....and some of these builders have to approve the home inspector too before they inspect the new builds.
Start with offering a listing agent a flat fee of less than 1%. Pay a procuring broker who actually is bringing a buyer if necessary. Get back to the FSBO model it works better and has made me a lot of money.
"In terms of commissions, the industry functions as a cartel. They enforce on the entire industry a certain high and relatively uniform commission level," said Stephen Brobeck, a senior fellow and former executive director of the Consumer Federation of America, a non-profit organization based in Washington, D.C.
I have many questions on the comments and video postings Kristina post incliuding her guests. How much and what does she sell? I have been in this business for 39 years and I don't have the time to do all of these "u-tubes", is this the new way of making money from clicks when you can'r sell ? This change is no different than 30- years ago when seller and buyer broker agency hit the world of real estate... It was a big deal and change and it all worked out after the initial introduction. Let's also remember this is a NAR settlement, Real Estate laws and regulations are per State Real Estate commissiion laws and regs. If I am not a member of NAR
hearing on these sites you are contributing to so called real estate agents that do not or can not succeed in the current post-covis difficult 99.9 % of the US market is experiencing. You all should be out in field advocating and pushing for reforms and incentives to help the first, second and in many cases 3rd time buyers find an affordable home. Shame on you Kristina and guests for exploiting real estate for your personal gains, I am sure you are not on here for fun or donating your online income to help the current real estate disaster the country is in..
To the blackpianist, The percentage is far from accurate. What most don't know is we work, show, run, drive ,spend gas money and time for many who never purchase. Hours of drawing contracts, negotiating, inspections, appraisals, ETC, ETC and if it doesn't close , we make nothing. The inspectors, attorneys, appraisers, all get paid, but we don't. The compensations we do get averages out over many deals that don't make it to a closing.. Electricians, plumbers and whoever get a check at the end when their job is finished, which usually may be a day or two... Ours can be 3,4,5,6 or more months from start to finish.. At the end maybe 10/15 bucks an hour, divide the plumber or your other references per the hours it takes them to complete the job and they are making way more than I am. I can't get a tradesmen to walk in my house for less than 100 bucks to just get a quote... without any work completed. I walk in for free and am competing at least with one other Realtor, who might be willing to cut their commission. Until you know the other workers/professionals day to day work and dealings, you are no one to judge or say we get paid too much. I bet you don't work for free for months.... ?? If you are in a trade, let me know, I need work completed on my house, but need someone cheap, I have two in college, one at 67K and the other 65K a year... I need all of the help I can get...
I do say my seller's agent was very valuable telling me what repairs to make, how to price the house, what colors to paint rooms, what to accept and not accept from the buyer, etc. The seller's agent hooked me up with a contractor to fix my house and arranged for all of the inspection terms with the buyer. I ended up not selling, but it was still valuable.
Have buyers already that are overwhelmed with the lending process and turning in all their paperwork in time. Imagine, going through the whole transaction by yourself. Or having the listing agent who is the Seller's fiduciary handling the contracts for the buyer. And the buyer will always be the customer in this scenario never the client. It will be interesting.
Hey Jen - Your phone comparison example fell flat. Mind, I understand your point. ALSO: Please don't diss Android products because you're an Apple fan who's convinced yourself there's "added value" in Apple products. Android phones are not lesser, they're different. And flip that: Apple products aren't better, they're different - and more expensive. FYI, $700 bucks for a new Android phone isn't cheap, or "cheapie."
My Android Samsung was 1400, not cheap, and comparable to iPhone. Not bragging, but I don't like Apple products and their proprietary software and apps. Android is compatible with so many types of software.
I do believe that buyers should pay a set few per showing. There are people out there that want to see 20 - 30 houses which is ridiculous. They should pay for that
I think there should be a standard process across the the states. Don't set a closing date unless every part is done. Make sure nothing else comes up. I try to buy a mobile home and land included that the lot was selling too. But the survey was wrong, and address was wrong 3 months in after the mobile was delivered and installed with all utilities. The thing is I saw the mistake before we closed. On top of everything it took them months just get the mobile home out there and all the utilities installed they claim it was because the heat wave we had in arkansas. As we was waiting we always have to approve the closing cost and it just kept going up so when i found the mistake of the land i just didn't want to wait for the inspection and survey redone and backed out cost me 500 dollars to do so last time i checked they sold it more than what i was going to pay for
Well you can't force a seller to make a concession? What is this? Nuts ,nebulous. The problem was the straight percentage method of payment when there just is not that much more work involved, especially these days on a more expensive house than a less expensive house. 18000 commission on my 300k house. 48000 on my 800 k house. The inspectors did the work. The rest was automated clicking on a laptop. Oh plus some door opening work travel. I know the agents get much less.
Oh and photographers took the photos and it wasn't even expensive. I handled my own deal once and things actually went quicker and smoother talking straight to the seller. Nothing got lost in translation.
The lady from mass actually put her foot in her mouth but what she described is what you do when you DIY it. And no body no body assumes hiring a realestate attorney means they are going do the services of a real estate agent. NO ONE assumes a settlement attorney is going to let you in a house call the other party etc. i keep hearing agents say this. No we FSBO people are not expecting that. That redic.
Bring on a guest and won’t let her finish a thought or give the insight into experience of what we can expect to happen going forward 😞 Storytelling is so passé
Here's the conversation I see happening. Buyer to buyer agent - "I can't pay you anything" Buyer Agent: "Don't worry, we'll ask the seller to make a concession to pay MY fee". EXPECTATIONS!!!
Most RE agents are DUMB . . and thats why aftr buying and selling my first home myself at 23 yrs old, I got my license not to hlep others buy and sell but to help myself.
So how is this going to make houses cheaper? Real estate will always have transaction costs. I go through the listing agent when possible you might be able to get them to discount their commission in some cases such as cash purchase, few or no contingencies but not in a hot market. All this is going to do is restructure real estate transactions with little to no actual effect. Commissions have always been negotiable and flate rate has been an option. How hard do you want your agent to work? In hot markets you should definitely negotiate commissions because they won't have to work hard for marketable properties.
It’s not going to make houses cheaper, and it wasn’t intended to do so. Haven’t you heard that the powers that be aim to have us all become renters forever? This law will push more people out of home ownership because they can’t afford to pay a realtor(on top of incredibly high home prices and interest rates), and increasing property values and insurance rates will eventually push current owners out too, because they won’t be able to afford property taxes and insurance. It’s all part of the plan.
When we talk to our realtor about selling our house, I asked my sister cause she was the executor if he would negotiate on the commission and he said I really can’t. I mean I didn’t know. I didn’t know what was negotiable. Are you talking about the 6%?
We have been socially conditioned to believe that the relationship between buyer and seller is inherently oppositional, and that we absolutely need realtors to protect us during the transaction. In reality, humans are naturally very cooperative and open to working together and compromising. Basically, we’re lied to(by all industries) about who we are, and sadly, we eat it up. Of course, there are lots of people who do seem to enjoy being confrontational and difficult, but that’s not who they naturally are, and it’s certainly not beyond their capabilities to get along well with everyone. But when we have been programmed from birth to believe we are a certain way, we end up unconsciously manifesting those traits in order to avoid cognitive dissonance.
Can't blame lending institutions for complications in the paperwork, 30:45 mins, we must blame American greed. US consumers needing more Regulation in this industry is the solution. Whenever a common transaction has mystery or black box or heavy legaleze involved, we find American sales types exploit that with collusion for their exorbitant salaries to make it all simple for US. Then we see their lobbyists buy legislators for more protection. Another battle to fight is the lending rates offered lower through brokers who make $5000 for their 90 mins of work, when the same lenders offer over-the-counter retail loans for a half a point higher. Then Title company greed is the next on my list that needs to see the sunlight of honesty. We have more important progress to make in the US but Sales and Marketing is sooooo lucrative still ! Imagine if sales people all accomplished a STEM degree instead, as I did, and we eliminated Real Estate and Medical drug commission transactions, we would have solved cancer and climate change by now. But the sales people will tell you those require a new drug or "its a hoax, trust me".
Kristina - what I understand and we are being taught/advised by our closing attorneys here in Georgia the seller can absolutely pay the buyer's broker/agent directly, they can also decide to have the compensation shared by the listing agent, or not pay anything to the buyer nor the buyer's agent OR any combination. Also from my understanding is if the seller is paying more then what the buyer's brokerage allows the SELLER will keep the difference, it does not go to the buyer. This is why this is going to be so confusing as everyone is interpreting the judgement differently! Lord help us!!
QUESTION- I live in Alabama and just listed my house 7/1/24. I was told I still had to pay the buyer’s realtor commission. Will that change after August 17 if my house hasn’t sold?
The seller agent pays the buyer agent out of their commission don't they? So you are paying the buyer agent but not directly. You sure shouldn't have to pay more commission than what you agreed to pay your agent.
Realtors get paid tons of money for doing nothing, easy money days are over. People know with internet the house sells itself. You only put pictures online then wait. No more free money
Help me understand the part at 32:00 mins where it sounds like Agents are still expecting Sellers to continue to be on the hook for the Buyer Agent's fees? If you agents collaborate/ communicate this using the word "concessions" aren't you circumventing the law that you know about and sellers won't?
Question… respectfully… Why has it always been the responsibility of the seller to pay both agents out of his or her profits? When somebody buys a house unless it’s there forever home they’re wanting that investment to grow I’ve never ever been an advocate of the seller using his or her profits to pay for somebody else’s service I’ll pay for my service and you pay for your service I’ve always thought that’s the way it should be If you go to refinance that house who plays the closing cost So that would also go along with why should the seller pay all the closing cost for somebody else’s loan? I just think everything so messed up.
Kristina, what do you think about sellers being present during the inspection? I recently had one, and I wasn't able to go inside the house, the seller did not answer the door, inspector was on the roof. It was very awkward and I left, but my feeling the seller wanted to hide defects. I never had an inspection with the seller present. BTW, house failed inspection.
I lawyer will charge you up front and will charge more than an agent. I hope people do go to attorneys so they can see what they get. A lawyer charges 40 percent. Not 3 percent.
So the loan officer should have a set % and cap, RE agent an advertiser they need a fee, Broker needs a cap %/fee why make thousands base on how much a house is worth or selling for its just blows my mind
I think a buyer's agent is much less valuable than a seller's agent. You can find so much data on the Internet, I am not sure you need a buyer's agent. You can read the contract yourself.
@@proudliberal24-sv1wo I disagree. The seller's agent typically just lists the property on the MLS and kicks back while the buyer's agent does the work showing the buyer multiple properties before a decision is made. I think sellers should be able to list on the MLS themselves and offer a fee to the buyer's agent. Who needs an agent to list their property anyway? Dumb!
Buying agents show people homes they are not interested in, and they would never show a home for sale by owner even if it is exactly what they want, because they wouldn't earn any fees.
DOJ is watching this video and other videos and posts by industry persons who are saying they have a work around and loophole. As of July 12, 2024 DOJ is eyeballing this. So if you say it’s a done deal I am skeptical. “The U.S. Circuit Court of Appeals in Washington, D.C., on Friday denied a request from the National Association of Realtors (NAR) for a rehearing of the court’s previous ruling that the Department of Justice (DOJ) can reopen an investigation into the trade organization.”
The near end of the world in 2008 is definitely partly the fault of realtors. Realtors weren't the lenders, but they'd say you can get do this abd that. Curious, how would you do it. Since it's all so dumb?
The percentage part is what gets it for me,
No one else, GC, electrician, plumbers, carpenters (who do the most work 😏) plasterers, roofers, etc.) gets a percentage, except for this lady who walks in at the end and smiles for the pictures.
Apologies to realtors,.
Excuse my slight tone of resentment.
Nailed it 💯
@@theblackpianist1905 don't apologize! Realtors have been ripping us off for decades! They're worse than used car salesmen 😡
now if the % commission was removed from the tax assessment
The problem with these commissions is that the proportionality is unrealistic. A 600k house does not require necessarily any more work on the part of the agents than a 300k house. I was a specialty inspector in residential did hundreds of inspections for realestate transactions. Stopped doing it, a quality inspection takes a lot of time and people didn't wanna pay a higher price for quality.
I paid $500 per inspection for a 63-point inspection in 2017. We did 3 of them and the final house we bought has been saved by its initial inspection.
So you were overcharging for the work you provided
Working with wealthy people is generally more emotionally demanding than working with “regular” people.
@@katieandnick4113 Why ?
If you boil all this down, it simply means that ALL agents will have to become more competitive and hustle more. The days of sellers funding $20k paydays are over. I've FSBO my last three properties. I paid a buyer's commission in two of them, but in both cases I refused to pay more than 2%. With this settlement and it's mandated changes, that 2% will now be a flat $5-10k, max. Sellers agents are simply not doing enough work to warrant the kind of pay days that the previous 6% model gave them.
In today's environment (virtual listings, banks doing all the paperwork) the seller's agent (and frankly the buyer's) literally do nothing that adds value.
@@robertgawrys4614 Totally agree! I’ve sold 2 FSBO then used agent, totally ridiculous fees. Next one, FSBO again for sure.
I have personally inspected several NEWLY built homes with too many material and labor quality issues to continue with the build without these being addressed; some with severe structural issues and these still managed to pass inspection . Housewrap, siding and drywall hides all sins. No other industry gets away with charging top dollar for an inferior product that goes unnoticed untill it's too late. A home that should last a lifetime CANNOT only have a one year warranty from the builder.
The auto industry has entered the chat.
@@matthewronson5218 That mortgage lasts up to 5 years, not 30.
Never use an inspector in the same area of the real estate agent. Sorry to say it but agents want a sale and will use their inspector who will not give an accurate account of things.
I've seen this more than once
The realtor is often your enemy not your friend,
Realtor saying it's worth 6% because she had to work two whole days!!!
🤣
Exactly my reaction. Becoming a Realtor seems like a job perfect for those who just don't want to do anything.
Two whole days would be an eternity as far as I've seen. I looked at three homes back in the day and the agent acted like I was dragging my feet. She ended up making about $14K after putting in MAYBE six hours of work. And while it's true that they have to give a cut to the broker, that's still a huge rip off.
Not sure of you alls experience with an agent. However, a good agent does more than two days or six hours of work. I work everyday with my client until we get to the closing table. And, think about those months that go by as you show the buyer client around. We can go 6 months to 5 yrs showing around the same client before we reach the closing table and not get paid. Would you go 5 yrs where you worked without pay? Most people are only thinking about what a realtor might get paid, but fees are negotiable. Stop being small minded. Go out and actually interview a realtor. Ask them what they actually do. What was their longest transaction with a client, etc. Because you guys don't question a doctor that comes into the room, sits with you for 2 mins, gives you a prescription, then sends you on your way and charges your insurance for thousands of dollars.
@farrelli7777 I don't think that you're aware of what goes on behind the scenes. That being said, I don't like the system for compensating realtors either.
@@Clarktherealtor I'll be glad to pay you $50 per hour.
It was/is still ABSURD to pay a percentage as an agent fee.
There should be a set fee for a set period of time.
There is literally nothing substantial difference in listing a $100k house or $500k. Yet, paying 5x more because I sell a nicer home doesnt yield 5x more expense to the agent.
When an agent provides additional services like 3D pictures...that's an expense. But, again, doesnt justify a %. It should be a fee, like everything else...
Cost + Markup.
Cost + would happen in Cristina's House Max concept scenario. Few know Carmax but most everyone knows what Costco is.
Thanks for sharing. I used to love real estate. Jumped out when I seen the corruption. I couldn’t compete. Ethics were mocked and frowned upon.
Yeah and it’s sort of a Ponzi scheme too. Agents need to work under brokers who get to profit off each agent with minimal to no work on their part.
@@jessicah3782 The brokers are the ones making all the money. Agents a lot of times do a lot of work and people decide to not buy or use another agent. Agent gets paid nothing for their time.
Ms. Sylvester seems like a nice/honest person. I would be interested to know her take on whether Real Estate Agents play any part in the price inflation that has been going on. I know all the rest of the excuses. But there is still this "tiny inkling" ... that commissions have been incentives to padding the prices .. to increase commissions.
I will "try" and listen to the rest of this discussion .. to see if anyone addresses this eternal question.
No part of concessions or commisions should be part of the sales price. This artificial inflates the value for the neighbors house.
and we pay property taxes on it
I was going to hire this agent, but he didn’t bother to come at least seeing my house after two weeks talking to him; I find him to be lazy for the commission I will pay him, so he was a no go
My ex just listed her house and was basically strong armed in to paying both the seller and buyers agent, by her agent basically saying no buying agent is going to bring their clients to your house if you are not offering a percentage. I was told this same thing by another agent in another town.
The real estate industry is resisting this tooth and nail.
Raleigh, nc.
This has been happening forever and immoral humans will find a way to game it for greed, if regulation doesnt shut it down. Big government? heck yes, that is why we can breath the air and drink the water today in the US. America is great because of regulation...government. I respect US government.
I just signed a contract to sell and was told the same. If you don't offer a % to the buyer they can't afford to buy your house
They'll hide the fees in concessions in August. White collar extortion for exposure is still extortion. Agents, you did this to yourself with greed. Help U Sell, FSBO services are the answer for transparency/value. Once that reaches critical mass acceptance, we'll have won the greed / little value added battle of the unscrupulous agents.
The buyers never had to reach in their pocket per say to pay the buyer agent commission, but they actually did, and it was worse! For ex, the house was listed at 430k instead of 400k, the commision was baked into the price, so actually the buyers were financing the 30k comission for the entire duration of the 30 year mortgage, which is worse! Because they are also financing the listing agent comission as well. The 30 k includes the comission for both brokerages, and this is how was done until now. Basically, the seller was paying the comission, but was inflating the house price to make up the commission. This 30k can be 42k after 30 years at 7% rate. Can't believe how many buyers do not realize they were paying both commissions all along! With few exceptions of desperate sellers, divorces, death in family, sudden relocation, job loss etc.
Inspections are a MUST! Realtor and Buyer need to be part of it! Not a day to miss! Everyone needs to be reasonable in their demands.
In 2017, my agent worked for an agency that was more concerned with protecting 'their builders' who refurbish homes than sellers. I felt abandoned by my agent and swore them off fir the future. This was apparently the best agency in the area.
This makes things even more expensive for the buyer
In a for sale by owner...that is all you need the attorney to do. That is how I bought my current home. Fraction of the cost and easy process
They've convince many buyers that they need a real estate agent to protect their interests. Hard to believe they fall for this but they do.
@solitairecat1 Not all transactions need an agent, but some definitely do. To think there is never a scenario that would warrant realtor for a transaction is silly!
@@MsPbass There is never a scenario that would warrant paying tens of thousands to a buying agent!
When we bought our first house in the late 90's, we were short on cash. I talked to the seller, and we worked out a deal.
He raised the price of the house by $5k, and he had a check waiting for me at close, in an envelope. (The seller was in close first, and left the sealed envelope to be given to me after we signed all the documents.) - It basically just rolled the amount in to the loan for us, and was a push for him, since he had inherited the property and only had to pay taxes based on the value change of the property difference from the date he inherited it, and the date it was sold. He sold it under market value, even with the $5k increase, so he had zero tax implications on it.
This settlement will result in consumer savings. Under the new rules, buyers must sign contracts with their agents, and fees will be based on the level of service they request. Uncoupling buyer's commissions from the multiple listing of the property will allow the seller to evaluate the total offer from the buyer
News flash.. buyers are NOT going to dish out commissions for their Realtors……. Dream on…
The buyers agents can still negotiate for the seller to pay compensation for the buyers broker. Also, in order for any agent to open a house for a client to see they must have a contract in place that discusses compensation ahead of time.
@@KristinaSmallhornI vote for more open houses 😁
This was hard to watch. You both just kept interrupting each other.
@@dsetitoff sorry. We get excited.
I have been doing real estate investing and deals since before your guest. Since I was a graduate student in 1993 and purchased my first property at an auction. Flat fee is most likely the result for everyone. My best guess.
This could cause real estate prices to come down which wouldn’t be a bad thing right now.
yup, my kids got a brand new construction during the insane seller's market and was buying from out of state. Because homes were selling fast, many people got roped into waiving the inspections! Kids were one, and house was built without a water barrier so they got water seeping into the rooms by the windows and warranty was expired.
Faulty window barriers is a common error in construction but ask Inspectors if is likely to catch it at the finished stage of constructiont/inspection...i have doubts any could.
I sold a home and bought land within weeks of each closing my agent was very active in both , the listing agent for the seller was late for all the meetings, barley said 3 words to me . I hated the thought of knowing she got paid!
commission, concession, a rose by any other name is still a rose.
As a home owner, I tried to negotiate my sellers fee to agents, and they all said no. They wouldn't do do it. This new law is great for sellers.
This new ruling doesn't change the fact they can still can say "No" each agent is allowed to set their own prices.
@@KristinaSmallhorn yes but now my price will be a lot lower when selling.
Agree, they all say is negotiable, but yet, I never had an agent who agreed to lower their comission, not even by a measly 0.25%. Is an unspoken rule....saw a video on Sachs shows when he asked the listing agent if she will accept a lower commission to make the deal happen and she was very offended and said NO.
@@John1908-vo1iv 100%
This one lost me right away. I had to bail.
I was getting "cold-hearted" business-woman vibes .. which made me want to end it, too. Found other recent videos by Christina that are a delight more true to her form. :-) Then came back to sit it out because I appreciate her so much!
I missed this live :-(. Love your programs especially about the Modular Homes. Hopefully will be able to get the next live show.
Questions. I have placed bids on a few homes but the agent didn't take the offers to the home owner.
Yes, always get a home inspection and a land inspection (survey) especially in GA 😂....and some of these builders have to approve the home inspector too before they inspect the new builds.
Start with offering a listing agent a flat fee of less than 1%. Pay a procuring broker who actually is bringing a buyer if necessary. Get back to the FSBO model it works better and has made me a lot of money.
It wasn't a failure to not disclose that fees are negotiable...it was an intentional feature that agents (& brokers) would not take less.
"In terms of commissions, the industry functions as a cartel. They enforce on the entire industry a certain high and relatively uniform commission level," said Stephen Brobeck, a senior fellow and former executive director of the Consumer Federation of America, a non-profit organization based in Washington, D.C.
I have many questions on the comments and video postings Kristina post incliuding her guests. How much and what does she sell? I have been in this business for 39 years and I don't have the time to do all of these "u-tubes", is this the new way of making money from clicks when you can'r sell ? This change is no different than 30- years ago when seller and buyer broker agency hit the world of real estate... It was a big deal and change and it all worked out after the initial introduction. Let's also remember this is a NAR settlement, Real Estate laws and regulations are per State Real Estate commissiion laws and regs. If I am not a member of NAR
hearing on these sites you are contributing to so called real estate agents that do not or can not succeed in the current post-covis difficult 99.9 % of the US market is experiencing. You all should be out in field advocating and pushing for reforms and incentives to help the first, second and in many cases 3rd time buyers find an affordable home. Shame on you Kristina and guests for exploiting real estate for your personal gains, I am sure you are not on here for fun or donating your online income to help the current real estate disaster the country is in..
To the blackpianist, The percentage is far from accurate. What most don't know is we work, show, run, drive ,spend gas money and time for many who never purchase. Hours of drawing contracts, negotiating, inspections, appraisals, ETC, ETC and if it doesn't close , we make nothing. The inspectors, attorneys, appraisers, all get paid, but we don't. The compensations we do get averages out over many deals that don't make it to a closing.. Electricians, plumbers and whoever get a check at the end when their job is finished, which usually may be a day or two... Ours can be 3,4,5,6 or more months from start to finish.. At the end maybe 10/15 bucks an hour, divide the plumber or your other references per the hours it takes them to complete the job and they are making way more than I am. I can't get a tradesmen to walk in my house for less than 100 bucks to just get a quote... without any work completed. I walk in for free and am competing at least with one other Realtor, who might be willing to cut their commission. Until you know the other workers/professionals day to day work and dealings, you are no one to judge or say we get paid too much. I bet you don't work for free for months.... ?? If you are in a trade, let me know, I need work completed on my house, but need someone cheap, I have two in college, one at 67K and the other 65K a year... I need all of the help I can get...
My first broker told us not bring contract under 6% this was the 90s. I had 7% contracts with seller.
It's called robbery!
Watching from Canada, planning to move to the U.S. where I'll buy a house. Sounds super messy! Thanks for sharing.
@pierregaudet3041 very messy.
Depends where. At 19k+ cities, YMMV
I disagree with Jen as to WHY people buy an iphone vs. Android....THEY WANT TO FIT IN, and that's all. I would NEVER buy an Apple product...EVER!!!
Thanks for clarifying the new rules.
Thanks Kristina, I've been wondering about this.
I am loving the real estate stream, K. But I must say... this hair color is fabulous! Itr makes you look more youthful and it is giving life!
Most lenders have a max 6% on buyer paid concessions !! Squeezing more buyers out of the market!
I do say my seller's agent was very valuable telling me what repairs to make, how to price the house, what colors to paint rooms, what to accept and not accept from the buyer, etc. The seller's agent hooked me up with a contractor to fix my house and arranged for all of the inspection terms with the buyer. I ended up not selling, but it was still valuable.
Perhaps the seller's agent gave you bad advice.
Have buyers already that are overwhelmed with the lending process and turning in all their paperwork in time. Imagine, going through the whole transaction by yourself. Or having the listing agent who is the Seller's fiduciary handling the contracts for the buyer. And the buyer will always be the customer in this scenario never the client. It will be interesting.
Buyers should shop without agents. Just find a house you love and get an attorney.
@@tabithan2978 they certainly can do that.
Can you include these buyers fees in the mortgage.
She talks about that around 13 mins
Hey Jen - Your phone comparison example fell flat. Mind, I understand your point. ALSO: Please don't diss Android products because you're an Apple fan who's convinced yourself there's "added value" in Apple products. Android phones are not lesser, they're different. And flip that: Apple products aren't better, they're different - and more expensive. FYI, $700 bucks for a new Android phone isn't cheap, or "cheapie."
My Android Samsung was 1400, not cheap, and comparable to iPhone. Not bragging, but I don't like Apple products and their proprietary software and apps. Android is compatible with so many types of software.
@@ggad1899 Android a the way!
Imo the brokers should be broker's! Not also selling homes !😢
I do believe that buyers should pay a set few per showing. There are people out there that want to see 20 - 30 houses which is ridiculous. They should pay for that
I think there should be a standard process across the the states. Don't set a closing date unless every part is done. Make sure nothing else comes up. I try to buy a mobile home and land included that the lot was selling too. But the survey was wrong, and address was wrong 3 months in after the mobile was delivered and installed with all utilities. The thing is I saw the mistake before we closed. On top of everything it took them months just get the mobile home out there and all the utilities installed they claim it was because the heat wave we had in arkansas. As we was waiting we always have to approve the closing cost and it just kept going up so when i found the mistake of the land i just didn't want to wait for the inspection and survey redone and backed out cost me 500 dollars to do so last time i checked they sold it more than what i was going to pay for
Well you can't force a seller to make a concession? What is this? Nuts ,nebulous. The problem was the straight percentage method of payment when there just is not that much more work involved, especially these days on a more expensive house than a less expensive house. 18000 commission on my 300k house. 48000 on my 800 k house. The inspectors did the work. The rest was automated clicking on a laptop. Oh plus some door opening work travel. I know the agents get much less.
Oh and photographers took the photos and it wasn't even expensive. I handled my own deal once and things actually went quicker and smoother talking straight to the seller. Nothing got lost in translation.
The lady from mass actually put her foot in her mouth but what she described is what you do when you DIY it. And no body no body assumes hiring a realestate attorney means they are going do the services of a real estate agent. NO ONE assumes a settlement attorney is going to let you in a house call the other party etc. i keep hearing agents say this. No we FSBO people are not expecting that. That redic.
Bring on a guest and won’t let her finish a thought or give the insight into experience of what we can expect to happen going forward 😞
Storytelling is so passé
Here's the conversation I see happening. Buyer to buyer agent - "I can't pay you anything" Buyer Agent: "Don't worry, we'll ask the seller to make a concession to pay MY fee". EXPECTATIONS!!!
Most RE agents are DUMB . . and thats why aftr buying and selling my first home myself at 23 yrs old, I got my license not to hlep others buy and sell but to help myself.
So how is this going to make houses cheaper? Real estate will always have transaction costs. I go through the listing agent when possible you might be able to get them to discount their commission in some cases such as cash purchase, few or no contingencies but not in a hot market. All this is going to do is restructure real estate transactions with little to no actual effect. Commissions have always been negotiable and flate rate has been an option. How hard do you want your agent to work? In hot markets you should definitely negotiate commissions because they won't have to work hard for marketable properties.
It’s not going to make houses cheaper, and it wasn’t intended to do so. Haven’t you heard that the powers that be aim to have us all become renters forever? This law will push more people out of home ownership because they can’t afford to pay a realtor(on top of incredibly high home prices and interest rates), and increasing property values and insurance rates will eventually push current owners out too, because they won’t be able to afford property taxes and insurance. It’s all part of the plan.
Thanks for the information!
When we talk to our realtor about selling our house, I asked my sister cause she was the executor if he would negotiate on the commission and he said I really can’t. I mean I didn’t know. I didn’t know what was negotiable. Are you talking about the 6%?
my wife sold house directly to buyer
no fees to agents
We have been socially conditioned to believe that the relationship between buyer and seller is inherently oppositional, and that we absolutely need realtors to protect us during the transaction. In reality, humans are naturally very cooperative and open to working together and compromising. Basically, we’re lied to(by all industries) about who we are, and sadly, we eat it up. Of course, there are lots of people who do seem to enjoy being confrontational and difficult, but that’s not who they naturally are, and it’s certainly not beyond their capabilities to get along well with everyone. But when we have been programmed from birth to believe we are a certain way, we end up unconsciously manifesting those traits in order to avoid cognitive dissonance.
Great guest !
Can't blame lending institutions for complications in the paperwork, 30:45 mins, we must blame American greed. US consumers needing more Regulation in this industry is the solution. Whenever a common transaction has mystery or black box or heavy legaleze involved, we find American sales types exploit that with collusion for their exorbitant salaries to make it all simple for US. Then we see their lobbyists buy legislators for more protection.
Another battle to fight is the lending rates offered lower through brokers who make $5000 for their 90 mins of work, when the same lenders offer over-the-counter retail loans for a half a point higher. Then Title company greed is the next on my list that needs to see the sunlight of honesty. We have more important progress to make in the US but Sales and Marketing is sooooo lucrative still ! Imagine if sales people all accomplished a STEM degree instead, as I did, and we eliminated Real Estate and Medical drug commission transactions, we would have solved cancer and climate change by now. But the sales people will tell you those require a new drug or "its a hoax, trust me".
Kristina - what I understand and we are being taught/advised by our closing attorneys here in Georgia the seller can absolutely pay the buyer's broker/agent directly, they can also decide to have the compensation shared by the listing agent, or not pay anything to the buyer nor the buyer's agent OR any combination. Also from my understanding is if the seller is paying more then what the buyer's brokerage allows the SELLER will keep the difference, it does not go to the buyer. This is why this is going to be so confusing as everyone is interpreting the judgement differently! Lord help us!!
@@jillinga10 August 17 is gonna be a wild day.
@KristinaSmallhorn and the 6 months afterwards!! Hang on 😀
Great informative show!!
QUESTION- I live in Alabama and just listed my house 7/1/24. I was told I still had to pay the buyer’s realtor commission. Will that change after August 17 if my house hasn’t sold?
Your realtor is lying. Fire your realtor.
The seller agent pays the buyer agent out of their commission don't they? So you are paying the buyer agent but not directly. You sure shouldn't have to pay more commission than what you agreed to pay your agent.
Brainless how do i pay my agent talked about at the close .. thats just bs.
Do you have to have a buyer’s agent to write your offer? Can’t I just use the NAR’s state contract template?
Never stop that happy dancin. Makes me smile every time! 😊
Realtors get paid tons of money for doing nothing, easy money days are over. People know with internet the house sells itself. You only put pictures online then wait. No more free money
Not sure which one is worse used car dealership or realtors ?
Help me understand the part at 32:00 mins where it sounds like Agents are still expecting Sellers to continue to be on the hook for the Buyer Agent's fees? If you agents collaborate/ communicate this using the word "concessions" aren't you circumventing the law that you know about and sellers won't?
Downward Pressure ⬇️
There's going to be a ton of lawsuits. Of buyers going on their own and getting had
There is nothing a realtor does that you can’t, absolutely nothing.
This is all ridiculous!! I will call the listing agent if K want to
Look at a house who needs a buyers agent that’s just lazy
Question Oregon has been split and I have paid as a buyer to my agent and I have sold and paid my agent.
Question… respectfully… Why has it always been the responsibility of the seller to pay both agents out of his or her profits?
When somebody buys a house unless it’s there forever home they’re wanting that investment to grow
I’ve never ever been an advocate of the seller using his or her profits to pay for somebody else’s service
I’ll pay for my service and you pay for your service I’ve always thought that’s the way it should be
If you go to refinance that house who plays the closing cost
So that would also go along with why should the seller pay all the closing cost for somebody else’s loan? I just think everything so messed up.
@@billcaudill5985 well, a lot of people thought that and now a seller technically doesn’t have offer compensation to the buyer broker.
Kristina, what do you think about sellers being present during the inspection? I recently had one, and I wasn't able to go inside the house, the seller did not answer the door, inspector was on the roof. It was very awkward and I left, but my feeling the seller wanted to hide defects. I never had an inspection with the seller present. BTW, house failed inspection.
i aint paying agent
I lawyer will charge you up front and will charge more than an agent. I hope people do go to attorneys so they can see what they get. A lawyer charges 40 percent. Not 3 percent.
KRISTINA , difference of a modular's & mobile home's w/ land in louisiana , in finance , mortgage & rates Thank You
So the loan officer should have a set % and cap, RE agent an advertiser they need a fee, Broker needs a cap %/fee why make thousands base on how much a house is worth or selling for its just blows my mind
Has anyone had a conversation about something less than 6% commission with their realtor? How did it go? Never went well for me. Sold a lot of homes.
I just sold my house 1.5 for listing agent 2.5 for the one that brought the buyer.
Real estate agents are arrogant af and definitely dont need a % cut it should be fixed. Pawns of the banksters should get nothing
I think a buyer's agent is much less valuable than a seller's agent. You can find so much data on the Internet, I am not sure you need a buyer's agent. You can read the contract yourself.
@@proudliberal24-sv1wo I disagree. The seller's agent typically just lists the property on the MLS and kicks back while the buyer's agent does the work showing the buyer multiple properties before a decision is made.
I think sellers should be able to list on the MLS themselves and offer a fee to the buyer's agent. Who needs an agent to list their property anyway? Dumb!
Buying agents show people homes they are not interested in, and they would never show a home for sale by owner even if it is exactly what they want, because they wouldn't earn any fees.
DOJ is watching this video and other videos and posts by industry persons who are saying they have a work around and loophole.
As of July 12, 2024 DOJ is eyeballing this.
So if you say it’s a done deal I am skeptical.
“The U.S. Circuit Court of Appeals in Washington, D.C., on Friday denied a request from the National Association of Realtors (NAR) for a rehearing of the court’s previous ruling that the Department of Justice (DOJ) can reopen an investigation into the trade organization.”
Heard you can have your attorney handle the legality of the purchase of buying a home and real estate agents are becoming a thing of the past.
Lol concessions are designed to help buyers buy your home not to pay useless agents.
Real estate professionals should work for a flat fee, or hourly fee, like lawyers.
@@tabithan2978 that could get pretty expensive for the home buyer.
I like Jen's Wonder-Woman logo on her mug!
buy directly from owner get lawyer for paperwork no commissions
Viva Colombia!!! GOOOOOOLL de Colombia all the way!
I knew this woman was from Massachusetts before it was said. Just… looks very Massachusetts.
The near end of the world in 2008 is definitely partly the fault of realtors. Realtors weren't the lenders, but they'd say you can get do this abd that.
Curious, how would you do it. Since it's all so dumb?
@@markpb4767 I don’t even understand the question.
Sounds to me like buyers wont need a realitor ...its not rocket sciemce ladies
Please let your guest speak , please stop cutting them off …
It was not disclosed purposely
They told us to lie and we did.
Ladies , If any knowledge on modular's & mobile homes w/ land Thank You
It's not negotiable cmon.
Great show❤
This new law is way past due!!!
Your silly. I love it