I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Kimberly Doran
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
As a 50+ year licensed RE agent now retired, I'm not certain who's worse - lawyers, DOJ, the legacy lying media, or NAR. In any event, this entire program is possibly the un-useful end result for all involved - agents, sellers, and buyers!
You're right, the system was working extremely well, everyone knows that commissions were always negotiable. I think this settlement was designed simply for attorneys to get a huge paycheck. And in so doing they destroyed the industry.
Sellers are sick of real estate agents too…why should you get paid a commission on the full value of my house when I have to pay off the bank and only get what’s left over? For instance, my house sells for $1m, I have to pay off my existing loan say $500k, then I’ve put &150k into upgrades to get that $1m…. Did you share in those expenses?! I’m ok with paying a commission on $350k…. MY net proceeds, why do you get paid on $1m? It’s time to correct this entitlement on all levels!
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 use agents again.
Are u telling us, that commission has increased from 6 to 9%?! 6 to listing and 3 buyers? Yes, buying a house got more expensive for the buyer, first time home owner.
Ive been a realtor part time for over 16yrs done hundreds of deals, I go above and beyond for my clients. Im honest to a fault at times lost plenty of sales for my honesty Yes there are some lying aweful agents out there but there are lying aweful lawyers Drs and so on. Not every agent is a liar and just looking to make a quick buck. Great video the goverment did it once again stuck there nose where they really had no business.
No honest person should be against what this good human being is saying to warn people about the things that are happening. Thank you very much for this video.
Simple fix my friend. I put my house up for sale myself! I hang a little sign under the for sale sign that says agents welcome for a flat fee of $1000 at closing if you find me a buyer. Done. 😎. It’s very simple. Not complicated at all.
Alot of agents don't take clients to see the homes. Or they try to play a bidding war against the buyers for their benefit. The higher the price of the home, the more commission they get from both sides.
@@Jetski270 gated communities don’t need signs out front anyways because no one drives through gated communities unless they live there or a family member visiting. You advertise everything online nowadays. You can however, put the sign up in your window. HOA’s SUCK!!!!!! I would never buy a home in a subdivision.
I’m a Realtor and will continue to operate my listings the same. My listings will continue to offer buyers agent commission paid by seller ect. That’s what the strong agents have to do!
Paying off the mortgage, canceling the insurance, and taking a chance are some solutions to the house insurance dilemma. Mortgage holders would have to pay much more for insurance.
If you don't have enough money to restore your home after the terrible Mize, I advise you to at least purchase a high deductible insurance policy. A qualified market consultant can also help you find a better position in the market.
A gain-hungry person will not escape punishment. I don't require many Americans. Please be respectful with me, and I will return the favor. All I need is excellent food and positive energy. attempting to sell everything.
You go there where joy is waiting for you. Some folks just don't have the daring and adventurous attitude to be among the first. I'm excited to celebrate my 60th birthday on August 4 and I feel like my F.A is trying to help me get rich.
How cute a little girl thinks she knows how the world works. A lawyer will be way more than 500, and you pay them whether you close or not. They won’t order inspections, appraisal or survey. They won’t negotiate. They will write a contract and poorly at that. Good luck miss know it all!
Quickest, easiest home purchase I've made was a person to person sale. We both benefitted from the transaction so we worked together to get the inspections & appraisal, agreed on the attorney who drew up all the paperwork and we split the fees. Even the attorney couldn't believe we completed everything and were at the closing table in less than 3 weeks without any realtors involved. It can be done!
Sold my house in 2020, put it on Zillow myself and hired an attorney. In SC its a law now you have to have an attorney even if you use a realtor. It cost me like $900 instead of 6k.
I hate this process….real estate agents are officially worse than used car salesmen. They dont give a damn about anything but their compensation. Disgusting way to earn a living.
you dont have to use an agent to buy or sell a home. its not a process... its a service that is offerd to both buyers and sellers. it can be used or not.
@@puppydog6915 forcing someone to sign an exclusive agent agreement so that you get the compensation for any house that they buy regardless of if they found the house on their own is a service?
Real estate agents are very sneaky. I have dealt with 6 and they got very mad because I caught on to their lies. I have proof they break the TREC rules and regulations. One tried charging me the 3% already by sneaking it on to the contract. Umm I do read before I sign. She said that's how it has to be documented but I won't be charged. Don't believe them. So, if we need to take it to a title company or a lawyer then why use the agents? Now there needs to be a company that only shows home like open door doors. Another agent only wanted to take me to new builds after I specifically stated I didn't want me builds. The other only wanted me to use their preferred lender to make an offer after I already had to preapprovals from two different lenders. I mean a horrible experience that we have been going thru. And we still can't get a good Agent. Austin tx here btw
Buyers are finding their own homes through internet. Realtors want a ridiculous amount of money just to open the door so you can see it. Never " a good system "...the industry has always been corrupt. Billions of seller equity given to greedy brokers. We just need a way to see homes and cut out agents. A small flat fee for open house monitors and a small fee for lawyer to write offers and contracts is all either side needs.
You don’t realize those homes on the internet for the most part are put there by real estate agents with listings ! Only maybe 1 percent are FSBO. So every portal on internet showing homes for sale is getting a feed from real estate MLS of homes listed by agents for sellers.
@Ms.matrixmetaphor lol...of course the information is taken from mls...but a realtor wants 2.5 to 3 percent of your equity just to input the data with 300 dollars for professional photos. Then, they want another 2.5 or 3 percent just to open the door! That translates to billions of hard earned equity from sellers and now ridiculous they think a buyer would hand over the same. Too many hands outreached for so little work. They won't even show the house to an interested buyer without expecting even more. They even "sell" you to others in their office or simply take more by dual agency. The system is still corrupt.
@@bean6528 sorry your experience of agents has been so terrible . Not all are the same and many work extremely hard for money earned . Average agent makes less than 40k a year.
@@bean6528 all commissions are split with agents broker. Agent does not pocket that. In addition they pay tax also from thier share after split with broker .
@@bean6528 there are limited service companies who will put your home on mls for 500 and you as owner can directly negotiate with any buyer agent if you want. There has always been the option for a seller to list their home with a buyer agent commission of 1 cent and in many MLS zero . I don’t think you are presenting correct info here. Before mid 90’s there was no such thing as a buyers agent, all agents represented the seller. Commissions have ALWAYS been negotiable. The only people who will be hurt by this new lawsuit will be disadvantage buyers who cannot afford to pay a buyers agent and save for down payment . Those buyers who are already considered marginalized are now totally kicked out of the market . It is a sad day for real estate but those who don’t understand the nuance of how it did work for last 100 years can’t even grasp how it will now work going forward . They are just listening to the regurgitated news which is being incorrectly presented to the public.
Very often the buyer's worst enemy is his agent. The best deals are done with no agents involved. A buyer's agent will not show you a house she can't profit on.
There is no reason to ever pay a broker more than 2-2.5% to sell your home in 2024. Commission rates coming down are 20 years past due....... agents simply do not add that much value.
Sellers can now pay for their own marketing to attract Buyers, and hopefully be able to navigate the system to know the pricing strategy, and be available to show their homes at times when Buyers want to look. Can pay for the signage, pay the websites, understand surveys, appraisals,TitleCommitments. Oh, and pay for professional pictures because a good picture can speak a thousand words. And be available for a few hours while the inspector is there. Sounds like fun doesn’t it?
I know nothing bout this industry. Is this being done to benefit the corporations buying up these properties? Is this confusing new laws a road block for us ordinary people to give corporations a leg up?
Yes it is, exactly to make it harder for regular buyers to buy any property. It has now been rigged to help the invester. Now they have little to no competition, so they no longer have to pay full price !
Whether you’re buying a house or buying a car or buying anything on credit, it is against the law to add a commission to the process. And that’s the law of full faith and credit .
Wealthy people won’t care about paying a buyers agent. And they will expect a lot from that agent. Regular people will do whatever they need to, to not pay a buyers agent. What that means for the market, and for agents in general, I don’t know. But I do know that tacking on another 10K on average to an already overpriced home won’t sit well with the middle and upper middle class. Or what’s left of them by the end of this year. Good luck out there.
it mostly means that "new home owners" are out of luck and 2nd home buyers who are buying rentals will continue to dominate the market as they have been , some short term rental propertys are making 50-60k a year profit they have no issue paying a buyers agent 20k commission to bring a great deal to them.
It’s simple, the buyer pays their agent and seller pays theirs. Both have agreements in place from the beginning so there’s complete transparency. It makes no sense that sellers ever had to pay both the buyers agent and sellers.
I was renting and the owner decided to sale and gave me first option before going to market. It woked out for well for both of us and we both saved money, i didn't have to move and they didn't have to list
Thank you for sharing your thoughts about this situation! I am an agent here in Corpus Christi/Port Aransas/Rockport/ Aransas Pass on the Gulf Coast. Ive been in real estate for 24 years and yes I didn't see this coming! Being ethical is the most important value we bring to the table at closing. My mom owned a real estate company back in the 70's to late 90's when she sold the business. i am second generation real estate agent and now my daughter is third generation. I have instilled in her the value of being ethical and transparent with every person you meet in real estate! It will always pay off in the end. I wish the best for all. of us as agents because I know from experience we work hard to keep our reputations as being ethical. Thank you again for your insight and what will be a challenge for the future. Wishing you all the best from Corpus Christi ,Texas.
Ask your agent…no tell your agent if your selling or buying….that you want a itemized cost disclosure NTE sheet that estimates the maximum you will pay once the house is sold or bought. If they don’t provide up front…find one that will..
If a seller got scammed in the way you described they are getting scammed by someone every day of their life. It’s easier than ever to do research. Plus interviewing multiple agents should help avoid that situation.
The DOJ and unfortunately the NAR has created this confusion. There are some extremely good realtor agents out there. Some not so good either. However everyone of them is trying to navigate this muddy language. Great video. Showing the Buyers your value is critical and also sharing the changes to the Sellers. Keep being helpful and transparent and you will be fine. Have a great day.
I'm really glad you pointed this out. I'm not sure exactly how the seller is going to easily find out prior to money changing hands where everything is going.
for the most part sellers agree to a commission up front before their house goes on that market that comission the seller agreed to , for the most part is the same reguardless of if another agent is involved or not it doesnt change for the seller they agree in the begining to what that will be.
A clause in your offer that states ALL DOCUMENTATION from BOTH parties shall be open to inspection by all at any time once the due diligence period begins and that any element found unacceptable will be cause for ending the offer with no penalty, no loss of earnest moneys. True transparency. Then it is up to the seller if they want to be transparent. Or not close the deal. I WOULD NEVER close a deal where things are hidden during the due diligence. NOT ANYTHING! You could be buying the next toxic dump crisis.
The problem is, most people don’t know how to write a contract. Don’t know who’s paying title insurance, don’t know about contingency dates. Good luck. Realtors offer a service that you NEVER had to use
@@teleskopossomnium I have a realtor on standby that will do all of that for me for 1000.00 With the market going down the way it is ...one should be able to find a hungry realtor that would love 1000 cash for menial paperwork chores
yes i knew the agent didnt know much about the properties we looked at and tryed to get me to go with there lender, tryed to tell me to put offer over asking , looking for $2500 check. ill buy direct with owner of property with a lawyer; no commissions. my wife sold her parents house no agent , no problems
Yes they do that alot. I look up the property taxes. And the comps around the area and tell them no I won't pay the asking price. I've told them they make the market go up and down by their lies. They get mad lol
@@virginiaescalante2520😂😂 imagine believing this. The market is whatever people are willing to pay. Agents have no control over that. STATE APPOINTED APPRAISERS SET THE PRICE. i love how the internet is full of people with no knowledge what so ever.
The only one that really gets injured in the scenario is if the sellers agent charges 5 to 6% to sell the house. Not scenario because the seller is not aware of what's going on he pays an extra 2.5% that he doesn't have to. Buyers will just have to make their offers based upon what commission they're paying their buyers agent. savvy buyers may have an opportunity to save some money by foregoing a real estate agent in this new environment.
I think as time moves forward seller's will pay the listing agent's (seller's) brokerage and buyers will pay the buyer's brokerage. If buyers want the seller to pay the agreed compensation/commission between buyer & buyer's brokerage, it will have to be stated/requested in the contract to Buy and Sell (Offer) and the commission/compensation be stated in buyer's contract with the buyer's brokerage. In the near future the Buyer's Agent may ask the Listing Agent if a commission or compensation will be offered to the buyer/Buyer's brokerage prior to writing up an offer. It will be disclosed in the Contract to Buy and Sale and the closing financial documents.
I went through 8 realtors trying to find a home in central Florida. They didn't do anything. I found the homes and ended up calling the seller's agent. What's the point? I'll be selling with no agent.
Out of California here, There is no way in hell I’m paying anyone 3 to 6 % for walk through and a deal proposal. Cheaper to hire an attorney to do it, his hourly will be far less. the selling agent can open the door and let me look around title co will take care of the rest. And I always get my own inspection. At some point they will create an app to fix this as I see no reason for a buying agent. My experience both agents work together to drive the price up and create a bidding war and why not they all stand to win except the buyer typically they have no experience the exact reason they go to a realtor. Someone who doesn’t need a high school diploma to get their license.
I’m in the process of selling my house in Louisiana. My listing agent included a Compensation Disclosure for me to sign for the buyer’s broker(agent) to receive 2.5%. My agent advised that this will not be in addition to the compensation that we agreed upon. It will be inclusive. Is this the proper way ?
Thing is, for ages, most people truly believed that the seller's agent got paid 6%. As a former realtor, I can't tell you the amount of times I had to explain to people (and in comments).that is not how it works. That is scary that they are not being upfront about commissions. I went fsbo for my house but insisted I see the hud statement before closing to be sure what I agreed to with the buyer's agent was what I was going to pay.
@@jessec.8052 Yeah...I got mine the night before :-( and found an error. Then, after reminding my attorney I wanted a wire transfer of my funds, he gives me a check at closing. ...just one job to do (eyes rolling).
Who on earth under these new laws is going to sign a listing agreement for 5% to listing agent when for years its been 2.5 and 2.5% -- sellers all know this as its been a regular listing price and selling agent percentage for EVER!!! I don’t know how this would even happen??? No one is that naive here in Southern California….
Now only the seller's agent will be showing houses. If a buyer brings an agent they will sign an agreement to pay that buyer's agent. It's supposed to be simple unless you complicate it.
Thanks for your thoughts. I think people like you will help get this worked out over time. We have dealt with many realtors that were just sales people. Not good people. hard to find a good one that’s looking out for you. Easy to find one that tries to screw you. Lol.
Because commissions are material to a buyer who make a home purchase, seller side commission should be shown to buyer prior to an offer being made. No showing commission would be fraud without a license.
Great video! If I were to sell, I would have a clause stating that I am open to paying a buyers commission depending on the offer presented, but I would not disclose how much. That would be part of the negotiation. As for a seller agent, unless they have an amazing history of sales, I would negotiate that commission as well. I’ve been ripped off too many times before. I’ve learned and now I am informed. 😎
I'm for the changes The reason why someone might be scammed as u indicated is bc real estate agents were not transparent to begin with. I have bought many houses before and never has an agent ever volunteered info that the seller agent collects the 6 percent and splits with the other agent. You have to ask for agents to divulge this info. If agents had been transparent to begin with on where the 6 percent was going, these sxammers wouldn't be able to do this Also, i bever thought it was fair for a seller to pay the 3 percent for the buyers agent. This should be paid by buyer
A simpler way for it to work, is cap the realtor commission. Buyer pays 1%-1.5% to their realtor, seller pays the same to their realtor. Provided either wish to use a realtor.
I am in MD, and in most of my transactions representing the buyer, I get 2-2.5% commissionand the listing agent 3.5-4%. This happens because there is no supervision from the real estate commission or brokers. when they sign the listing agreement, they do not specify what will they pay with the listing fee, and that allows them to treat the buyer's agent like trash. They want and need our buyers, but they do not want to share a fair commission. I am talking about the past few years, now imagine what they are getting ready to do. They will sign a listing agreement like you said, 5% and will tell the seller that the seller is not obligated to pay the buyer's agent. It is crazy, but that is our future from now on.
As a Mortgage Broker who’s also a real estate broker, you make some good points. I think the banking industry might find a way to finance part of commissions on the back end as a closing cost.
You bet! FINANCE MORE WITH ME! ADD MORE FEES AND INTEREST! DIG YOUR FINANCIAL HOLE EVEN DEEPER TO KEEP US GOING! GET EVEN MORE UPSIDE DOWN! Right up there with the other scams. fthat nonsense.
Bottom line is as a buyer, I'm not paying a commission. I'll negotiate the purchase price with the seller, paying whatever both Realtors want in commissions. If my agent as a buyer won't do this, I'll use the listing agent as my agent and then we're both, buyer & seller using the same Realtor where the seller can establish what they (seller) is willing to pay in commission to sell there home.
To many contracts ! People don't realize you can make your own contracts ...if they offer you one, offer them one on your terms ! Don't be intimidated !!!!
Is there a reason the seller should offer the buyer commission the same as the seller agent? I’m thinking the selling agent’s paying for my staging, pics, videos and drone. So, I’d offer my selling agent more than the buying agent. 🤷🏻♀️
This has been the way it's always been the only difference is the commission is not going to be shown to agents now. Listing agreements have always been between sellers and the listing agent. Your not really saying anything new here...
You sound like you want to watch my pockets as the listing agent. The listing Agreement WAS NEVER SHOWN, it’s none of your business and never has been. It appears you need to actually negotiate with your buyers better or Disclose your your own listings agreements and lead the way to the new culture
Huh. I hope that sellers aren’t going to fall for this. But I don’t know if this is unethical for a sellers agent to charge 2, 5, 8%. I just hope the sellers don’t do that.
I am not an agent nor a broker, anymore. I can pay your price when you accept my payment terms. I can meet your payment terms when you accept my price. Which is more important to you: How *much* money you get or *when* you get your money?
FL is the only state that's having issues with the rent cap. Florida's drastic/criminal increases in rents from 2019 - today has caused these rent caps. It's not a problem in other states. As far as my properties I've sold, I'll never pay 7% again. It's now negotiable. Which hurts Realtors or....hurts those sellers & buyers who aren't up to speed on the recent changes.
Gone will be quick offers to buy because no agent is going to want to represent a buyer quickly on the spot w/o a lot of hassle legal agreements and it's going to cost the buyer more upfront when some of them want a flat fee or hourly amount just for finding out some info or showing you the property or writing the offer. I think this will make buying more difficult and more prone to being ripped off by buyer agents. They screwed things up where it should have been left alone. And this will influence my willingness and ability to buy a property beginnning once this goes into full effect. Totally stupid ruling.
Thanks for the insight. My husband and I REFUSE to sign any buyer's agreement or pay any commission as buyers. We will now go FSBO, which is easy to do. All this law does is put hefty expense on the buyer while ensuring the real estate agencies make lots of profits. This new law guarantees price-fixing and monopolizing. And some of these state purchase contracts are corrupt, making buyers and sellers pay commission to their agents even if the sale falls through. READ every contract carefully...buyer's agreement, listing agreement, and purchase agreement. This new law has opened the door to corruption, leaving buyers and sellers unprotected.
I will be buying a home within the next 12-18 months and I have no intention of paying a buyer's agent. I've bought and sold my homes in the past with one sometimes and without them. I never had an issue. The thing that concerns me is if I call the listing agent and ask them to show me the house, are they going to be willing to do that or are they going to tell me I have to have a buyer's agent to show me the property? I know it won't be mandatory but I wonder if some buyers will have issues with some listing agents not wanting to deal with the buyer without an agent.
You might. It depends on the agent but I think most would be more than happy to show you the property. Agents need a buyer in order to sell a property and make a commission so they should encourage buyers to look at their property.
Yes you can call the sellers agent to show you the property. But if you are unrepresented you will sign a Buyer’s Agreement with that agent and agree that they will represent you and the seller. You may get a discount on the commission but you will also get less representation. For experienced buyers this is fine.
@@richard9827What do you mean, get a discount on the commission? I'm not paying the seller's agent commission and if I'm representing myself, there shouldn't be a buyer's agent commission to be paid. If I want to buy a home and the seller wants to sell it, it seems to me that the seller agent should do their job for the seller. If I'm going to be forced to pay the seller agent, I guess I won't be buying anything.
@richard9827 I'll try this again... (my comment was deleted, apparently because I saw it earlier). I'm not asking rudely, but actually want to know why would I pay the seller's agent commission for showing me the house? Discount or not, it's not my place to do that. If I had a buyer's agent that wasn't charging me, what's the difference with that and me representing myself?
@@TLC717 let me explain. If a home is listed by a realtor they work for the seller who would pay them. If you were to want to look at the house outside of an open house you need to engage the sellers realtor as your agent and need to sign a contract with them. This agent is now a duel agent representing both you and the seller. Both seller and buyer must agree to this arrangement in writing. Why wouldn't a buyers agent charge you. As of August 17 the only way that a buyers agent gets paid is by the buyer. Now the seller still has the option contributing to the buyers agent fee if they want but they no longer need to. So starting Aug 17 all buyers will have to pay for their agent, again some sellers may contribute to the buyers agent fee. Your previous experience with FSBO isn't relevant for a home listed with a Realtor and listed on the MLS. Maybe I'm misunderstanding you. If you have a buyers agent then they should show you the house. If you don't have a buyers agent then you need one to submit any offer. Outside of an open house i wouldn't spend my time showing a random person who i don't know if they are qualified a house I was selling. Look up the word fiduciary. Normally your agent is a fiduciary to you. Under dual agency the realtor is not a fiduciary to either. At this point the realtor is only doing paperwork for both. If this stilll isn't clear please ask more questions.
I just got caught up in this mess s a buyer. I was ready to put an offer on a house then my realtor says, BTW there is new document that you have to sign and you must agree to pay me 2.5% compensation. What??? From my realtor, oh don’t worry we will ask the seller to pay for your buyer compensation and they will do it. Okay , then why do I have to sign this new document stating I will pay 2.5% to you? I did not sign any documents and walked away from that transaction. I am backing out of the real estate market until there is better clarity around the buyer compensation piece.
Real sate companies, title companies and agents have been charging sellers too much for way too long for the little work they do. I am glad this mess is happening, hopefully they pass a law to cap fees to 3% or less.
on both the buy side and the sales side there is ALWAYS somone who will do it cheaper , same as any idustry there are plumbers who charge $1000 to replace a bathtub and there are people who do it for $100 every industry is that way. real estate is no diffrent.
@MrJSpicoli Only 4. There are no good realtors out there. In the end, they all take your money. Last house I sold, I lost 20k to fees, no side worked more than 8 hours.
@@yordanrodriguez42 the average time to sell a house is three months, the average time a buyer looks for a home is 6 months ... where do you get " 8" hours in that ???
@puppydog6915 Simple, nowadays the average buyer looks for his/her house on Zillow, Realtor, Redfin or wherever then like. Then, they'll contact the agent and tell him "buddy, that's the house I want to see" the agent sets up an appointment to show the house and that usually takes around 2hrs total or less if not far. The average buyer usually buys a house within the first 3 he sees. Not much to do other than send your offer and wait. BTW I used the 8hrs because that's what a regular day of work is but if you think it takes more lets do some math, 20hrs put in by each agent = 40hrs total. In my case on the last house I sold I ended up paying over 20k on fees, 6% agent fees, 1.75% title company plus other fees they added it was around 2% so anyways 20k/40hrs= 500 dollars an hour. Do you think that is fair? I only feel sorry for those who sell their house for 400k or more.
Real Estate commission is NEGOTIABLE on both sides of the transaction. Buyers and Sellers. It used to be where the selller ‘s agent negotiated for the Buyer’s Agent. Now the Buyer’s Agent has to Negotiate for themselves. You seem to trash agents for no reason. They weren’t the ones who decided to change the rules. Very Condescending. There is a learning curve with everything new change. The agents who don’t know the changes and are not working, will not eat.
Putting an agent into the mix won't change that owner's mind. In fact, that unrealistic price could be the reason that owner doesn't have an agent. Who knows. I sold my home in 2020 with the assistance of a buddy who is a lawyer. After I found the buyer, he emailed me the blank contract and a list of disclosure pages I needed to print out to give to the buyer in Virginia. When I had the signed contract he had me sign some forms and took everything to the title company office that did the closing for $550. My buddy charged me $350. I paid half the $550 fee. Oh, and he delivered a voided check of mine to the title company so they could deposit the proceeds. In this area the seller does not have to attend the closing (the papers my lawyer had me sign in advance took care of my end of the closing.) My wife and I are buying a beach cottage in a couple of weeks from friends. No agents involved. The closing is being handled by a NC law firm, so we will meet there. We briefly thought we could do a remote closing, but the law firm has never met any of us and wanted to see some IDs since there is a lot of money changing hands. The title search paperwork should be back today or tomorrow with any luck.
How would it work if you pay for your own MLS listing? I heard you can do that. Would that mean you just pay buyer's agent? What happens to the money if buyer is paying their agent and I offered to pay towards buyer agent? Does it go back in my pocket or does buyer agent get money from buyer and seller?
I am selling a home and I asked my agent to sign a mon disclosure. She can't not disclose what the commission will be paid to her. We show paying a 1 % commission to the buyers agent. Quick whing .. you are still part of the problem .. commission steering is still an issue.
You have to pay to get your house shown and sold. Commission has always been negotiable. You have to pay to play. No one will want to be a buyers agent if they can’t get paid. Of course that has always been an interesting proposition…It will cause so many issues. There should have just been a disclosure saying commissions are negotiable….sign that. I think it was always unrealistic to get 3 to 6% on these million dollar homes. Small homes harder to sell, get most commission you can. Be ethical and treat your clients with respect.
Because you guys are assuming that just because the buyers agency fee is not being offered that the listing agent or anyone else is going to deal with another person in the deal for free handling the buyer is not just finding the home and inserting said offer. It's a whole babysitting job that the listing agent. Most of the time will not want to do unless they are. Frankly not in Demand and desperate😅
If this is the NAR’s solution instead of total transparency and disclosure, how can one trust agents? I guess one can just go directly to the homeowners, then they wouldn’t have to pay any commission. You can get comps from Title companies.
Why is a private contract between the seller and their agent anyones business? Buyer agents are finally going to have to prove their worth and not just pretend to act busy until closing day.
Seller's agents will get 1 to 2% only. OR we go FSBO which is just the same. Title companies do everything! You still have to clean, stage and show for every showing. Everyone will be looking for FSBO homes.
I have yet to learn as someone looking to buy a second home soon, and I feel that I am in a worse position. Honestly, I'm looking at Open Door or another company selling to avoid this chaos. Unfortunately, home buying has entered the used car salesman territory.
Todays agents are sneaky lying greedy sob’s, they’re all trained in the same system. They all want the offer to be put in….. So then they can get that multiple offer bidding war going. It doesn’t benefit the buyer. Every one and their mother feeds off the buyer.
Don't use them. They won't budge on the price. Then if you have their agent to take you to look at a home that's not on their list of homes. They will snatch it up and it will be pending about the time you want to put an offer on.
@virginiaescalante2520 Good points. I understand they are not willing to negotiate and all. I am just observing that this is why CarMax and other set-price companies for vehicles had a rise. Consumers would rather overpay by a percentage for straightforward purchase agreements. And it's unfortunate to see home buying falling to this level. As someone looking to buy another home while coordinating a cross-country move and all the logistics that follow, these corporate entities are upfront about what they offer. While not the best, it is becoming more attractive.
@@swimmerdawg123 they can only hold up for so long, we the buyer have the upper hand, they don’t sell, they go broke, that’s why you finally see the dropping of prices. Just be patient. These greedy commission breathed sales people will go broke soon.
What happens to listing agreements that started before rule changes but listed long enough to not close till after rule changes? Do they need a New Contract for new rules?
As a buyer whatever I’m going to pay to any realtor comes off the price I pay after all as a buyer I’ve already done all the work that’s needed to do for me to know I want the property other then a title search and the paperwork In most instances I know more then the realtor before I even make an offer so in reality all I really need to do is cut a check to the owner and do a quick claim on the property and file it myself
its called a Quit claim" not Quick claim" and a "quit claim" in the state of florida does not guarentee home ownership. it simply means that person "quit" their claim of a proprty to you. if you know more than your agent then find an agent that knows more than you.
😂 you don't want to buy a property through quit claim.its very risky. You also make sure to get title insurance of which the title company will not allow the transaction to be quit claim during closing as the holder of title is the new insured entity in the chain of ownership. Quit claim would let you transfer title with pending issues that you inherit. At this point everyone should take classes so we all get caught up because it's not rocket science
the end game of the DOJ is that you as a buyer pay your buyers agent commission and the seller pays the sellers commission and they are not linked together in anyway , due to existing law its hard for the DOJ to tell a seller they " can't " offer buyer agent compensation. so they have decided to hide it from public view , for the past year or so buyers agent paid comission was public for everyone to see that has now been removed. and its secret.
Thanks for watching! Check this video out- Florida Housing Crisis just got worse!- ruclips.net/video/eWeaX8qOjp8/видео.html
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Kimberly Doran
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
You trade with Kimberly Doran too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.
As a 50+ year licensed RE agent now retired, I'm not certain who's worse - lawyers, DOJ, the legacy lying media, or NAR. In any event, this entire program is possibly the un-useful end result for all involved - agents, sellers, and buyers!
You're right, the system was working extremely well, everyone knows that commissions were always negotiable. I think this settlement was designed simply for attorneys to get a huge paycheck. And in so doing they destroyed the industry.
Sellers are sick of real estate agents too…why should you get paid a commission on the full value of my house when I have to pay off the bank and only get what’s left over? For instance, my house sells for $1m, I have to pay off my existing loan say $500k, then I’ve put &150k into upgrades to get that $1m…. Did you share in those expenses?! I’m ok with paying a commission on $350k…. MY net proceeds, why do you get paid on $1m? It’s time to correct this entitlement on all levels!
Good point!
It's Over... For sale by owners open houses are the only ones with lines 😢
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 use agents again.
By owner is going to be the way to go.
I'd rather pay a lawyer 500.00 than an agent thousands!
Paid your buyer's agent for WHAT??
There was no reason to pay that buyer's agent unless a few hundred dollars if she showed you a ton of homes.
@@356MD NO, it's NOT! Anyone can buy or sell by owner and own nada to these used car salesmen aka buyer's agents.
Are u telling us, that commission has increased from 6 to 9%?! 6 to listing and 3 buyers? Yes, buying a house got more expensive for the buyer, first time home owner.
It was all a lawyers gig from the beginning. Nobody was going to win but them. Said that from the start..
I freaked out recently when I saw Closing Costs on Houses hovering right around 10%!
Like WTF...!
Ive been a realtor part time for over 16yrs done hundreds of deals, I go above and beyond for my clients. Im honest to a fault at times lost plenty of sales for my honesty Yes there are some lying aweful agents out there but there are lying aweful lawyers Drs and so on. Not every agent is a liar and just looking to make a quick buck. Great video the goverment did it once again stuck there nose where they really had no business.
No honest person should be against what this good human being is saying to warn people about the things that are happening. Thank you very much for this video.
Simple fix my friend. I put my house up for sale myself! I hang a little sign under the for sale sign that says agents welcome for a flat fee of $1000 at closing if you find me a buyer. Done. 😎. It’s very simple. Not complicated at all.
And that's how it should be plus alot ch😮eaper for the seller.
Alot of agents don't take clients to see the homes. Or they try to play a bidding war against the buyers for their benefit. The higher the price of the home, the more commission they get from both sides.
Most HOAs won't let you put up a for sale sign by owners
The amount of hours an agent puts in wth their buyers is worth way more than $1000. Do you work for $1.00 an hour?
@@Jetski270 gated communities don’t need signs out front anyways because no one drives through gated communities unless they live there or a family member visiting. You advertise everything online nowadays. You can however, put the sign up in your window. HOA’s SUCK!!!!!! I would never buy a home in a subdivision.
I’m a Realtor and will continue to operate my listings the same. My listings will continue to offer buyers agent commission paid by seller ect. That’s what the strong agents have to do!
As long as you keep it fair and honest !
Paying off the mortgage, canceling the insurance, and taking a chance are some solutions to the house insurance dilemma. Mortgage holders would have to pay much more for insurance.
If you don't have enough money to restore your home after the terrible Mize, I advise you to at least purchase a high deductible insurance policy. A qualified market consultant can also help you find a better position in the market.
Eighty percent of purchasers think that now is not the right time to buy a house.
A gain-hungry person will not escape punishment. I don't require many Americans. Please be respectful with me, and I will return the favor. All I need is excellent food and positive energy. attempting to sell everything.
You go there where joy is waiting for you. Some folks just don't have the daring and adventurous attitude to be among the first. I'm excited to celebrate my 60th birthday on August 4 and I feel like my F.A is trying to help me get rich.
It is good to have to celebrate milestones now that I've been working with my market analyst *Leah* *Alderman* *Foster* for a few years.
DO NOT SIGN AN EXCLUSIVE! Go directly to the seller's agent to buy. Get yourself a lawyer for $500 at most. You don't need an agent!!
How cute a little girl thinks she knows how the world works. A lawyer will be way more than 500, and you pay them whether you close or not. They won’t order inspections, appraisal or survey. They won’t negotiate. They will write a contract and poorly at that. Good luck miss know it all!
Quickest, easiest home purchase I've made was a person to person sale. We both benefitted from the transaction so we worked together to get the inspections & appraisal, agreed on the attorney who drew up all the paperwork and we split the fees. Even the attorney couldn't believe we completed everything and were at the closing table in less than 3 weeks without any realtors involved. It can be done!
Sold my house in 2020, put it on Zillow myself and hired an attorney. In SC its a law now you have to have an attorney even if you use a realtor. It cost me like $900 instead of 6k.
I hate this process….real estate agents are officially worse than used car salesmen. They dont give a damn about anything but their compensation. Disgusting way to earn a living.
you dont have to use an agent to buy or sell a home. its not a process... its a service that is offerd to both buyers and sellers. it can be used or not.
They're just pimping themselves out like most of us.
@@puppydog6915 true
@@puppydog6915 forcing someone to sign an exclusive agent agreement so that you get the compensation for any house that they buy regardless of if they found the house on their own is a service?
Real estate agents are very sneaky. I have dealt with 6 and they got very mad because I caught on to their lies. I have proof they break the TREC rules and regulations. One tried charging me the 3% already by sneaking it on to the contract. Umm I do read before I sign. She said that's how it has to be documented but I won't be charged. Don't believe them. So, if we need to take it to a title company or a lawyer then why use the agents? Now there needs to be a company that only shows home like open door doors. Another agent only wanted to take me to new builds after I specifically stated I didn't want me builds. The other only wanted me to use their preferred lender to make an offer after I already had to preapprovals from two different lenders. I mean a horrible experience that we have been going thru. And we still can't get a good Agent. Austin tx here btw
Buyers are finding their own homes through internet. Realtors want a ridiculous amount of money just to open the door so you can see it. Never " a good system "...the industry has always been corrupt. Billions of seller equity given to greedy brokers. We just need a way to see homes and cut out agents. A small flat fee for open house monitors and a small fee for lawyer to write offers and contracts is all either side needs.
You don’t realize those homes on the internet for the most part are put there by real estate agents with listings ! Only maybe 1 percent are FSBO. So every portal on internet showing homes for sale is getting a feed from real estate MLS of homes listed by agents for sellers.
@Ms.matrixmetaphor lol...of course the information is taken from mls...but a realtor wants 2.5 to 3 percent of your equity just to input the data with 300 dollars for professional photos. Then, they want another 2.5 or 3 percent just to open the door! That translates to billions of hard earned equity from sellers and now ridiculous they think a buyer would hand over the same. Too many hands outreached for so little work. They won't even show the house to an interested buyer without expecting even more. They even "sell" you to others in their office or simply take more by dual agency. The system is still corrupt.
@@bean6528 sorry your experience of agents has been so terrible . Not all are the same and many work extremely hard for money earned . Average agent makes less than 40k a year.
@@bean6528 all commissions are split with agents broker. Agent does not pocket that. In addition they pay tax also from thier share after split with broker .
@@bean6528 there are limited service companies who will put your home on mls for 500 and you as owner can directly negotiate with any buyer agent if you want. There has always been the option for a seller to list their home with a buyer agent commission of 1 cent and in many MLS zero . I don’t think you are presenting correct info here. Before mid 90’s there was no such thing as a buyers agent, all agents represented the seller. Commissions have ALWAYS been negotiable. The only people who will be hurt by this new lawsuit will be disadvantage buyers who cannot afford to pay a buyers agent and save for down payment . Those buyers who are already considered marginalized are now totally kicked out of the market . It is a sad day for real estate but those who don’t understand the nuance of how it did work for last 100 years can’t even grasp how it will now work going forward . They are just listening to the regurgitated news which is being incorrectly presented to the public.
Very often the buyer's worst enemy is his agent. The best deals are done with no agents involved. A buyer's agent will not show you a house she can't profit on.
As an Attorney who got
My Realestate license. Most of what the realtor class taught about legal rights was wrong
Jack, can you name a few examples? So I can read more about them! Thanks.
So, would it be better to just hire a real estate attorney to do the transaction for me if I’m in the buyer market?
Sleezy agents refused to show my properties as commissions too low!!! Most buyers don't need agents anyway
There is no reason to ever pay a broker more than 2-2.5% to sell your home in 2024. Commission rates coming down are 20 years past due....... agents simply do not add that much value.
Sellers can now pay for their own marketing to attract Buyers, and hopefully be able to navigate the system to know the pricing strategy, and be available to show their homes at times when Buyers want to look. Can pay for the signage, pay the websites, understand surveys, appraisals,TitleCommitments. Oh, and pay for professional pictures because a good picture can speak a thousand words. And be available for a few hours while the inspector is there. Sounds like fun doesn’t it?
I know nothing bout this industry. Is this being done to benefit the corporations buying up these properties? Is this confusing new laws a road block for us ordinary people to give corporations a leg up?
Yes it is, exactly to make it harder for regular buyers to buy any property. It has now been rigged to help the invester. Now they have little to no competition, so they no longer have to pay full price !
Whether you’re buying a house or buying a car or buying anything on credit, it is against the law to add a commission to the process.
And that’s the law of full faith and credit .
The commission isn't factored into the loan. It's not against the law to be compensated for working.
Wealthy people won’t care about paying a buyers agent. And they will expect a lot from that agent.
Regular people will do whatever they need to, to not pay a buyers agent. What that means for the market, and for agents in general, I don’t know. But I do know that tacking on another 10K on average to an already overpriced home won’t sit well with the middle and upper middle class. Or what’s left of them by the end of this year.
Good luck out there.
it mostly means that "new home owners" are out of luck and 2nd home buyers who are buying rentals will continue to dominate the market as they have been , some short term rental propertys are making 50-60k a year profit they have no issue paying a buyers agent 20k commission to bring a great deal to them.
Unfortunately the new wave of Real estate agents are worst than car salesmen.
It’s simple, the buyer pays their agent and seller pays theirs. Both have agreements in place from the beginning so there’s complete transparency. It makes no sense that sellers ever had to pay both the buyers agent and sellers.
I was renting and the owner decided to sale and gave me first option before going to market. It woked out for well for both of us and we both saved money, i didn't have to move and they didn't have to list
Thank you for sharing your thoughts about this situation! I am an agent here in Corpus Christi/Port Aransas/Rockport/ Aransas Pass on the Gulf Coast. Ive been in real estate for 24 years and yes I didn't see this coming! Being ethical is the most important value we bring to the table at closing. My mom owned a real estate company back in the 70's to late 90's when she sold the business. i am second generation real estate agent and now my daughter is third generation. I have instilled in her the value of being ethical and transparent with every person you meet in real estate! It will always pay off in the end. I wish the best for all. of us as agents because I know from experience we work hard to keep our reputations as being ethical. Thank you again for your insight and what will be a challenge for the future. Wishing you all the best from Corpus Christi ,Texas.
As complicated as they've made it now it seems like I could just hire a lawyer to represent me at closing and sell my own property.
" real estate " commissions are chump change to lawyers good luck with that. they might be willing to finalise a deal that you put together yourself.
You can and should
That's always been an option.
You can and what if your deal falls through. Lawyer still wants his billable hours and you start from scratch.
@@sportsman4545not true. Lawyer gets a flat fee when the house sells.
Ask your agent…no tell your agent if your selling or buying….that you want a itemized cost disclosure NTE sheet that estimates the maximum you will pay once the house is sold or bought. If they don’t provide up front…find one that will..
If a seller got scammed in the way you described they are getting scammed by someone every day of their life. It’s easier than ever to do research. Plus interviewing multiple agents should help avoid that situation.
Fire the useless agents.
The DOJ and unfortunately the NAR has created this confusion. There are some extremely good realtor agents out there. Some not so good either. However everyone of them is trying to navigate this muddy language. Great video. Showing the Buyers your value is critical and also sharing the changes to the Sellers.
Keep being helpful and transparent and you will be fine. Have a great day.
I'm really glad you pointed this out. I'm not sure exactly how the seller is going to easily find out prior to money changing hands where everything is going.
for the most part sellers agree to a commission up front before their house goes on that market that comission the seller agreed to , for the most part is the same reguardless of if another agent is involved or not it doesnt change for the seller they agree in the begining to what that will be.
A clause in your offer that states ALL DOCUMENTATION from BOTH parties shall be open to inspection by all at any time once the due diligence period begins and that any element found unacceptable will be cause for ending the offer with no penalty, no loss of earnest moneys.
True transparency.
Then it is up to the seller if they want to be transparent. Or not close the deal.
I WOULD NEVER close a deal where things are hidden during the due diligence. NOT ANYTHING!
You could be buying the next toxic dump crisis.
I have an idea. We are selling our house without a realtor. Won't have to worry about who gets what commission.
You've always had the option to do that. Good luck. Most for sale by owners are unsuccessful and end up using a realtor
@@sunshine12038I see you, salty realtor, posting up. Sales are drying up and it's time to get a real job.
The problem is, most people don’t know how to write a contract. Don’t know who’s paying title insurance, don’t know about contingency dates. Good luck. Realtors offer a service that you NEVER had to use
@@teleskopossomnium I have a realtor on standby that will do all of that for me for 1000.00
With the market going down the way it is ...one should be able to find a hungry realtor that would love 1000 cash for menial paperwork chores
yes i knew the agent didnt know much about the properties we looked at and tryed to get me to go with there lender, tryed to tell me to put offer over asking , looking for $2500 check.
ill buy direct with owner of property with a lawyer;
no commissions. my wife sold her parents house no agent , no problems
Yes they do that alot. I look up the property taxes. And the comps around the area and tell them no I won't pay the asking price. I've told them they make the market go up and down by their lies. They get mad lol
@@virginiaescalante2520😂😂 imagine believing this. The market is whatever people are willing to pay. Agents have no control over that. STATE APPOINTED APPRAISERS SET THE PRICE. i love how the internet is full of people with no knowledge what so ever.
The only one that really gets injured in the scenario is if the sellers agent charges 5 to 6% to sell the house. Not scenario because the seller is not aware of what's going on he pays an extra 2.5% that he doesn't have to. Buyers will just have to make their offers based upon what commission they're paying their buyers agent. savvy buyers may have an opportunity to save some money by foregoing a real estate agent in this new environment.
No im not doing buyèrs work as listing agemr im not a charity
It seems like the only smart thing to do is sell your own house and save on commissions
I think as time moves forward seller's will pay the listing agent's (seller's) brokerage and buyers will pay the buyer's brokerage. If buyers want the seller to pay the agreed compensation/commission between buyer & buyer's brokerage, it will have to be stated/requested in the contract to Buy and Sell (Offer) and the commission/compensation be stated in buyer's contract with the buyer's brokerage. In the near future the Buyer's Agent may ask the Listing Agent if a commission or compensation will be offered to the buyer/Buyer's brokerage prior to writing up an offer. It will be disclosed in the Contract to Buy and Sale and the closing financial documents.
Agent here, 100% agree with you. I’ve already had it happen to me.
I went through 8 realtors trying to find a home in central Florida. They didn't do anything. I found the homes and ended up calling the seller's agent. What's the point? I'll be selling with no agent.
Wow. Thank you! You are right, scam.Buyers agents are screwed. It was hard enough to compete with the listing agent, now why even try to get paid.
Right?
Out of California here, There is no way in hell I’m paying anyone 3 to 6 % for walk through and a deal proposal. Cheaper to hire an attorney to do it, his hourly will be far less. the selling agent can open the door and let me look around title co will take care of the rest. And I always get my own inspection. At some point they will create an app to fix this as I see no reason for a buying agent. My experience both agents work together to drive the price up and create a bidding war and why not they all stand to win except the buyer typically they have no experience the exact reason they go to a realtor. Someone who doesn’t need a high school diploma to get their license.
I’m in the process of selling my house in Louisiana. My listing agent included a Compensation Disclosure for me to sign for the buyer’s broker(agent) to receive 2.5%. My agent advised that this will not be in addition to the compensation that we agreed upon. It will be inclusive. Is this the proper way ?
You have an honest agent!
Thing is, for ages, most people truly believed that the seller's agent got paid 6%. As a former realtor, I can't tell you the amount of times I had to explain to people (and in comments).that is not how it works. That is scary that they are not being upfront about commissions. I went fsbo for my house but insisted I see the hud statement before closing to be sure what I agreed to with the buyer's agent was what I was going to pay.
Huge transparency issue not being discussed is title companies wait to the last minute to send HUD previews. One, maybe two days before closing.
@@jessec.8052 Yeah...I got mine the night before :-( and found an error. Then, after reminding my attorney I wanted a wire transfer of my funds, he gives me a check at closing. ...just one job to do (eyes rolling).
Who on earth under these new laws is going to sign a listing agreement for 5% to listing agent when for years its been 2.5 and 2.5% -- sellers all know this as its been a regular listing price and selling agent percentage for EVER!!! I don’t know how this would even happen??? No one is that naive here in Southern California….
Now only the seller's agent will be showing houses. If a buyer brings an agent they will sign an agreement to pay that buyer's agent. It's supposed to be simple unless you complicate it.
Thanks for your thoughts. I think people like you will help get this worked out over time. We have dealt with many realtors that were just sales people. Not good people. hard to find a good one that’s looking out for you. Easy to find one that tries to screw you. Lol.
Doing the math, seller agent just doubled their commission by keeping it all! "You, buying agent", go work some deal with the buyer to get paid.
Because commissions are material to a buyer who make a home purchase, seller side commission should be shown to buyer prior to an offer being made. No showing commission would be fraud without a license.
Great video! If I were to sell, I would have a clause stating that I am open to paying a buyers commission depending on the offer presented, but I would not disclose how much. That would be part of the negotiation. As for a seller agent, unless they have an amazing history of sales, I would negotiate that commission as well. I’ve been ripped off too many times before. I’ve learned and now I am informed. 😎
I'm for the changes
The reason why someone might be scammed as u indicated is bc real estate agents were not transparent to begin with. I have bought many houses before and never has an agent ever volunteered info that the seller agent collects the 6 percent and splits with the other agent. You have to ask for agents to divulge this info. If agents had been transparent to begin with on where the 6 percent was going, these sxammers wouldn't be able to do this
Also, i bever thought it was fair for a seller to pay the 3 percent for the buyers agent. This should be paid by buyer
The Federal government has no Constitutional say in rent caps. Say "NO" to TYRANNY .
We ALL take time away from our families when we work!!!
It has always been negotiable. BUT MOST LIKELY THE BUYER WILL HAVE TO PAY 3%.
Buyers Agents keeps brushing that off.
Customers are getting screwed.
A simpler way for it to work, is cap the realtor commission. Buyer pays 1%-1.5% to their realtor, seller pays the same to their realtor. Provided either wish to use a realtor.
I am in MD, and in most of my transactions representing the buyer, I get 2-2.5% commissionand the listing agent 3.5-4%. This happens because there is no supervision from the real estate commission or brokers. when they sign the listing agreement, they do not specify what will they pay with the listing fee, and that allows them to treat the buyer's agent like trash. They want and need our buyers, but they do not want to share a fair commission. I am talking about the past few years, now imagine what they are getting ready to do. They will sign a listing agreement like you said, 5% and will tell the seller that the seller is not obligated to pay the buyer's agent. It is crazy, but that is our future from now on.
As a Mortgage Broker who’s also a real estate broker, you make some good points. I think the banking industry might find a way to finance part of commissions on the back end as a closing cost.
You bet!
FINANCE MORE WITH ME!
ADD MORE FEES AND INTEREST!
DIG YOUR FINANCIAL HOLE EVEN DEEPER TO KEEP US GOING!
GET EVEN MORE UPSIDE DOWN!
Right up there with the other scams. fthat nonsense.
Bottom line is as a buyer, I'm not paying a commission. I'll negotiate the purchase price with the seller, paying whatever both Realtors want in commissions. If my agent as a buyer won't do this, I'll use the listing agent as my agent and then we're both, buyer & seller using the same Realtor where the seller can establish what they (seller) is willing to pay in commission to sell there home.
for sale by owner is the best !
To many contracts ! People don't realize you can make your own contracts ...if they offer you one, offer them one on your terms ! Don't be intimidated !!!!
Is there a reason the seller should offer the buyer commission the same as the seller agent? I’m thinking the selling agent’s paying for my staging, pics, videos and drone. So, I’d offer my selling agent more than the buying agent. 🤷🏻♀️
Great info. I thought a cricket was in my house at one point😊
This has been the way it's always been the only difference is the commission is not going to be shown to agents now. Listing agreements have always been between sellers and the listing agent. Your not really saying anything new here...
You sound like you want to watch my pockets as the listing agent. The listing Agreement WAS NEVER SHOWN, it’s none of your business and never has been. It appears you need to actually negotiate with your buyers better or Disclose your your own listings agreements and lead the way to the new culture
Huh. I hope that sellers aren’t going to fall for this. But I don’t know if this is unethical for a sellers agent to charge 2, 5, 8%. I just hope the sellers don’t do that.
I am not an agent nor a broker, anymore.
I can pay your price when you accept my payment terms.
I can meet your payment terms when you accept my price.
Which is more important to you: How *much* money you get or *when* you get your money?
FL is the only state that's having issues with the rent cap. Florida's drastic/criminal increases in rents from 2019 - today has caused these rent caps. It's not a problem in other states. As far as my properties I've sold, I'll never pay 7% again. It's now negotiable. Which hurts Realtors or....hurts those sellers & buyers who aren't up to speed on the recent changes.
Gone will be quick offers to buy because no agent is going to want to represent a buyer quickly on the spot w/o a lot of hassle legal agreements and it's going to cost the buyer more upfront when some of them want a flat fee or hourly amount just for finding out some info or showing you the property or writing the offer. I think this will make buying more difficult and more prone to being ripped off by buyer agents. They screwed things up where it should have been left alone. And this will influence my willingness and ability to buy a property beginnning once this goes into full effect. Totally stupid ruling.
Thanks for the insight. My husband and I REFUSE to sign any buyer's agreement or pay any commission as buyers. We will now go FSBO, which is easy to do. All this law does is put hefty expense on the buyer while ensuring the real estate agencies make lots of profits. This new law guarantees price-fixing and monopolizing. And some of these state purchase contracts are corrupt, making buyers and sellers pay commission to their agents even if the sale falls through. READ every contract carefully...buyer's agreement, listing agreement, and purchase agreement. This new law has opened the door to corruption, leaving buyers and sellers unprotected.
What a stupid remedy to what started as consumers trying to curb high estate commissions 🤦♀️
Don't ask. Don't tell !
I will be buying a home within the next 12-18 months and I have no intention of paying a buyer's agent. I've bought and sold my homes in the past with one sometimes and without them. I never had an issue. The thing that concerns me is if I call the listing agent and ask them to show me the house, are they going to be willing to do that or are they going to tell me I have to have a buyer's agent to show me the property? I know it won't be mandatory but I wonder if some buyers will have issues with some listing agents not wanting to deal with the buyer without an agent.
You might. It depends on the agent but I think most would be more than happy to show you the property. Agents need a buyer in order to sell a property and make a commission so they should encourage buyers to look at their property.
Yes you can call the sellers agent to show you the property. But if you are unrepresented you will sign a Buyer’s Agreement with that agent and agree that they will represent you and the seller. You may get a discount on the commission but you will also get less representation. For experienced buyers this is fine.
@@richard9827What do you mean, get a discount on the commission? I'm not paying the seller's agent commission and if I'm representing myself, there shouldn't be a buyer's agent commission to be paid. If I want to buy a home and the seller wants to sell it, it seems to me that the seller agent should do their job for the seller. If I'm going to be forced to pay the seller agent, I guess I won't be buying anything.
@richard9827 I'll try this again... (my comment was deleted, apparently because I saw it earlier).
I'm not asking rudely, but actually want to know why would I pay the seller's agent commission for showing me the house? Discount or not, it's not my place to do that. If I had a buyer's agent that wasn't charging me, what's the difference with that and me representing myself?
@@TLC717 let me explain. If a home is listed by a realtor they work for the seller who would pay them. If you were to want to look at the house outside of an open house you need to engage the sellers realtor as your agent and need to sign a contract with them. This agent is now a duel agent representing both you and the seller. Both seller and buyer must agree to this arrangement in writing.
Why wouldn't a buyers agent charge you. As of August 17 the only way that a buyers agent gets paid is by the buyer. Now the seller still has the option contributing to the buyers agent fee if they want but they no longer need to. So starting Aug 17 all buyers will have to pay for their agent, again some sellers may contribute to the buyers agent fee.
Your previous experience with FSBO isn't relevant for a home listed with a Realtor and listed on the MLS.
Maybe I'm misunderstanding you. If you have a buyers agent then they should show you the house. If you don't have a buyers agent then you need one to submit any offer. Outside of an open house i wouldn't spend my time showing a random person who i don't know if they are qualified a house I was selling.
Look up the word fiduciary. Normally your agent is a fiduciary to you. Under dual agency the realtor is not a fiduciary to either. At this point the realtor is only doing paperwork for both.
If this stilll isn't clear please ask more questions.
More reason for a Flat Fee rule.
Yes because price controls do wonders
I just got caught up in this mess s a buyer. I was ready to put an offer on a house then my realtor says, BTW there is new document that you have to sign and you must agree to pay me 2.5% compensation. What??? From my realtor, oh don’t worry we will ask the seller to pay for your buyer compensation and they will do it. Okay , then why do I have to sign this new document stating I will pay 2.5% to you? I did not sign any documents and walked away from that transaction. I am backing out of the real estate market until there is better clarity around the buyer compensation piece.
Real sate companies, title companies and agents have been charging sellers too much for way too long for the little work they do. I am glad this mess is happening, hopefully they pass a law to cap fees to 3% or less.
on both the buy side and the sales side there is ALWAYS somone who will do it cheaper , same as any idustry there are plumbers who charge $1000 to replace a bathtub and there are people who do it for $100 every industry is that way. real estate is no diffrent.
You need a better realtor, or haven't experienced one.
@MrJSpicoli Only 4. There are no good realtors out there. In the end, they all take your money. Last house I sold, I lost 20k to fees, no side worked more than 8 hours.
@@yordanrodriguez42 the average time to sell a house is three months, the average time a buyer looks for a home is 6 months ... where do you get " 8" hours in that ???
@puppydog6915 Simple, nowadays the average buyer looks for his/her house on Zillow, Realtor, Redfin or wherever then like. Then, they'll contact the agent and tell him "buddy, that's the house I want to see" the agent sets up an appointment to show the house and that usually takes around 2hrs total or less if not far. The average buyer usually buys a house within the first 3 he sees. Not much to do other than send your offer and wait. BTW I used the 8hrs because that's what a regular day of work is but if you think it takes more lets do some math, 20hrs put in by each agent = 40hrs total. In my case on the last house I sold I ended up paying over 20k on fees, 6% agent fees, 1.75% title company plus other fees they added it was around 2% so anyways 20k/40hrs= 500 dollars an hour. Do you think that is fair? I only feel sorry for those who sell their house for 400k or more.
Real Estate commission is NEGOTIABLE on both sides of the transaction. Buyers and Sellers. It used to be where the selller ‘s agent negotiated for the Buyer’s Agent. Now the Buyer’s Agent has to Negotiate for themselves. You seem to trash agents for no reason. They weren’t the ones who decided to change the rules. Very Condescending. There is a learning curve with everything new change. The agents who don’t know the changes and are not working, will not eat.
I tried to buy a house from the owner... doesn't work...the owners think their house is way worth more than it is
Putting an agent into the mix won't change that owner's mind. In fact, that unrealistic price could be the reason that owner doesn't have an agent. Who knows.
I sold my home in 2020 with the assistance of a buddy who is a lawyer. After I found the buyer, he emailed me the blank contract and a list of disclosure pages I needed to print out to give to the buyer in Virginia. When I had the signed contract he had me sign some forms and took everything to the title company office that did the closing for $550. My buddy charged me $350. I paid half the $550 fee. Oh, and he delivered a voided check of mine to the title company so they could deposit the proceeds. In this area the seller does not have to attend the closing (the papers my lawyer had me sign in advance took care of my end of the closing.)
My wife and I are buying a beach cottage in a couple of weeks from friends. No agents involved. The closing is being handled by a NC law firm, so we will meet there. We briefly thought we could do a remote closing, but the law firm has never met any of us and wanted to see some IDs since there is a lot of money changing hands. The title search paperwork should be back today or tomorrow with any luck.
How would it work if you pay for your own MLS listing? I heard you can do that. Would that mean you just pay buyer's agent? What happens to the money if buyer is paying their agent and I offered to pay towards buyer agent? Does it go back in my pocket or does buyer agent get money from buyer and seller?
Real estate agents, Insurance agents and car salesmen/saleswomen can never be trusted.
You must deal with some bad apples.
I am selling a home and I asked my agent to sign a mon disclosure. She can't not disclose what the commission will be paid to her. We show paying a 1 % commission to the buyers agent.
Quick whing .. you are still part of the problem .. commission steering is still an issue.
You have to pay to get your house shown and sold. Commission has always been negotiable. You have to pay to play. No one will want to be a buyers agent if they can’t get paid. Of course that has always been an interesting proposition…It will cause so many issues. There should have just been a disclosure saying commissions are negotiable….sign that. I think it was always unrealistic to get 3 to 6% on these million dollar homes. Small homes harder to sell, get most commission you can. Be ethical and treat your clients with respect.
the settlement sheet is a breakdown of where every penny is going.. no confusion..
Wait for property to come off listing . Then deal with the owner . Meanwhile hire lawyer to close on property.
Thank you for sharing this....
So why not have my real estate attorney pay my total agreed upon price and everyone else figure out how they want to split it.
Because you guys are assuming that just because the buyers agency fee is not being offered that the listing agent or anyone else is going to deal with another person in the deal for free handling the buyer is not just finding the home and inserting said offer. It's a whole babysitting job that the listing agent. Most of the time will not want to do unless they are. Frankly not in Demand and desperate😅
THANK YOU! Yak Motley!!! God bless you.
If this is the NAR’s solution instead of total transparency and disclosure, how can one trust agents? I guess one can just go directly to the homeowners, then they wouldn’t have to pay any commission. You can get comps from Title companies.
Why is a private contract between the seller and their agent anyones business? Buyer agents are finally going to have to prove their worth and not just pretend to act busy until closing day.
Seller's agents will get 1 to 2% only. OR we go FSBO which is just the same. Title companies do everything! You still have to clean, stage and show for every showing. Everyone will be looking for FSBO homes.
5.5% for WHAT?
Any seller agreeing to pay that is insane as half that is too much!
5%..just put in spec.provisions chapter,'seller not responsible for buyers rep'/commissions
I heard that a buyer will need to pay a negotiated amount to see each house that the are interested in.
I know the rules. I didn't need agents before the settlement, don't need them now.
I have yet to learn as someone looking to buy a second home soon, and I feel that I am in a worse position. Honestly, I'm looking at Open Door or another company selling to avoid this chaos. Unfortunately, home buying has entered the used car salesman territory.
Todays agents are sneaky lying greedy sob’s, they’re all trained in the same system.
They all want the offer to be put in…..
So then they can get that multiple offer bidding war going. It doesn’t benefit the buyer. Every one and their mother feeds off the buyer.
Don't use them. They won't budge on the price. Then if you have their agent to take you to look at a home that's not on their list of homes. They will snatch it up and it will be pending about the time you want to put an offer on.
@virginiaescalante2520 Good points. I understand they are not willing to negotiate and all. I am just observing that this is why CarMax and other set-price companies for vehicles had a rise. Consumers would rather overpay by a percentage for straightforward purchase agreements. And it's unfortunate to see home buying falling to this level. As someone looking to buy another home while coordinating a cross-country move and all the logistics that follow, these corporate entities are upfront about what they offer. While not the best, it is becoming more attractive.
@@swimmerdawg123 they can only hold up for so long, we the buyer have the upper hand, they don’t sell, they go broke, that’s why you finally see the dropping of prices. Just be patient. These greedy commission breathed sales people will go broke soon.
What happens to listing agreements that started before rule changes but listed long enough to not close till after rule changes? Do they need a New Contract for new rules?
Selling agents commission is not the buyers agent business
As a buyer whatever I’m going to pay to any realtor comes off the price I pay after all as a buyer I’ve already done all the work that’s needed to do for me to know I want the property other then a title search and the paperwork
In most instances I know more then the realtor before I even make an offer so in reality all I really need to do is cut a check to the owner and do a quick claim on the property and file it myself
its called a Quit claim" not Quick claim" and a "quit claim" in the state of florida does not guarentee home ownership. it simply means that person "quit" their claim of a proprty to you.
if you know more than your agent then find an agent that knows more than you.
Prime example of someone who is going to suffer from this new regulation.
Oh and they don't like that a person knows more than them. 🤝
😂 you don't want to buy a property through quit claim.its very risky. You also make sure to get title insurance of which the title company will not allow the transaction to be quit claim during closing as the holder of title is the new insured entity in the chain of ownership. Quit claim would let you transfer title with pending issues that you inherit. At this point everyone should take classes so we all get caught up because it's not rocket science
@@maxiest200508 you still do the title search
It's called a "contract" for a reason. This should all be stipulated in the sales contract.
It is!
So do you as a buyer, need to pay a realtor to buy a home? I thought the seller pays a percentage and they split it between two brokers and 2 agents.
the end game of the DOJ is that you as a buyer pay your buyers agent commission and the seller pays the sellers commission and they are not linked together in anyway , due to existing law its hard for the DOJ to tell a seller they " can't " offer buyer agent compensation. so they have decided to hide it from public view , for the past year or so buyers agent paid comission was public for everyone to see that has now been removed. and its secret.