Housing Market Turns BAD for Buyers and Sellers
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- Опубликовано: 6 сен 2024
- Housing market turns for the worst! Both buyers and sellers will suffer as lawyers win their case.
#housingmarketnews #realestatenews #useconomy
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How can you say that a good agent is worth what they are being paid? How can an agent be worth $90,000 for a single transaction? This is the problem that most of us have with agent commissions. Why does the agent make so much more just because the house is worth more? It does not make sense.
I think listing agents should offer a la carte services on top of a reasonable base fee. No one is worth $90k
Because it’s a scam! Just like car salesman, why can’t I buy directly from manufacturer? Scam
yeah, like tipping at a restaurant. Same work, for cheap or more expensive food.
After working with many residential agents on the buy and sell sides of the aisle, I concluded that they are merely overpaid secretaries. Paying these secretaries 6% is completely absurd.
@@anynimus1617 In 2019, the median home price in the United States increased 6.2% to $258,000. At 6%, the fee is $15,480, how did we arrive at $90k?
Flat fee. The end. Commission is a scam. I have never signed a contract as a buyer or seller. Plenty of brokers are already willing to work within this frame, and there are plenty of external (unbiased) resources on both sides of the deal.
And just so I’m clear - SF Bay Area here.
Or a menu of fees and services, for both buyer and seller. Most realtors get in the way of the transactions. I've watched smart people become dumb as they echo whatever the MLS says, oblivious to what may really be going on in the market. Most of these people have zero economic expertise, much less sense. (Apologies to the very few good realtors out there.)
Everything is negotiable. No one has to pay 'retail' price for big ticket items. I wish more people understood this. This principle has always served me well.
Real Estate needs to change. Paying 6% for the sale of a home is ridiculous . And there is collusion because they all charge the same 6%. They hold a license yet they are not liable for anything. PLEASE! They should be paid hourly like attorneys. The real estate transaction takes 10 hours. A $500,000 home pays a commission of $30,000. Insane.
Very well said!
No they do not and commission has always been negotiable !
The transition may take that long however you are forgetting time spent looking at homes before they buyer decides.
@@KimOrlando-xe5vharen't you supposed to look for a job instead ongoing of wasting time on RUclips?
6% is a myth. Seller will laugh on their face when agents said 6% in my area. 4-4.5% now.
The first three real estate transactions I was involved in had agents on both sides and I thought it was a huge waste of money. The last real estate transaction I was involved in back in 2016 there were no agents. I had a house to sell and the buyer showed up and we negotiated a deal and attorneys did the paperwork. Agents are a waste of money. They should learn how to plumb or entertain on youtube if they want a future.
Same. Sold my house, saved nearly $50k in commissions. Smoothest transaction ever. Agents are simply not worth their commissions.
Two years ago I had an agent threaten to not show a listing unless I offered them a full 3 percent commission. They said in a text, "you posted a 2.5% Buyer Agent Commission. Can you please share with your clients that before I spend any time working on this I will need a written commitment to pay a 3% commission" "I need to have a written broker agreement on a 3%commission and then I will work on an offer" I shared the NAR Standard of Practice 1616 regarding showing all houses equally, and I was thanked for a lecture. This was a $2.5M house!
Unbelievable.
@@SachsRealty yes. And all in text!
I can’t believe anyone could be so dumb to turn down a 2.5% commission on a property of that value! It makes me wonder if that agent has any idea at all what he/she is talking about. In the end, best that you didn’t have to deal with that person.
@@SachsRealty i was about to write the same thing. I run a small but successful FSBO company in my area and I know agents sometimes boycott FSBO sellers. Not for much longer I should think.
I deplore real estate agents
My wife sold her flat in London and the Solicitor fee was $700 back in 2010. All sellers and buyers use a solicitor and the real estate fee for the sale was 1.5%
Realtor's standards are poor, not much transparency when it come to multiple offers, listing agent holding the listing hoping to get a buyer in house, and not explaining rules of the game. So many shenanigans. Can anyone say car salesmen.
Also information contained in the MLS data sheets are misleading, and inaccurate due to incompetence, and laziness. Realtors can't even measure up a home and find out the total square footage, lot sizes, lot dementions, room count, and overall general information. Then at the bottom of these MLS data sheet it reminds us that information could be incorrect and that the buyer needs to verify this information. What service are you paying for if they cant get simple information on a MLS data sheet correct. These actions, poor ethics, and the low standers of the NAR will get attention from the Federal government.
Realtors are the guys making a killing on a transaction, when compared to appraisers, lenders, and title companies. It looks like the game is up when you have online sites that will place your home on social media, that everyone can access too. More and more people have educate themselves which can save 5% to 6% on a commissions giving room to play with the sales price. Its a win win for both buyer and seller.
I wholeheartedly agree. This lawsuit has blown off the lid on the necessity of real estate agents. As more and more people become educated and knowledgeable about real estate transactions, they're going to start managing their own sale and purchase of homes and using attorneys or dedicated services to manage the transactions. Unfortunately, the people who will remain susceptible to thinking that they have to pay others to facilitate real estate transactions will be the less educated, those where English is a second language and those in the lower socioeconomic levels.
Think about the travel agency business. Now that technology provides direct access to travel related services to everyone, hardly anybody uses travel agents anymore. There's little mystery in finding bargains, comparison shopping and accumulating points. There will always be people who pay for the convenience of having someone else do the leg work or because they can access or arrange group trips. But this has resulted in a lot fewer travel agents, and the ones that remain are those at the top of their game. Give it about 10 years, and you might see the same thing with real estate agents.
The real estate industry needs to be transparent to the clients it serves and making MLS accessible to the public is a good start for it.
They already did. Sellers can list on mls, just running into another day.
*Thanks for this video! I feel sympathy and empathy for our country's low income, people are suffering to survive. I appreciate Luna Cox you've helped my family with your advice! Imagine investing $1.5k and receiving $5k in 4days*
Luna Cox totally changed my life for good. I have come across individuals but none is as honest as she is. So surprised you know her too.
It is really good to multiply your income before you wake up one day to realize you didn't plan well for your future endeavors!!!
Not surprised you know her, she just so good and her professional strategies are really mind blowing.
As of last week I counted on $5,000 but don't just know how to diversify it.
*SHE'S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME*
How is your guest not saying consumers need HOME PRICES AND RENT to come down first above food and gas??? C'mon!!
Now agents are running around begging for their commission.
I sold FSBO, offered 1%, to realtor, got nothing but rude, venomous blow back.
I run a successful FSBO company in my area (MidWest) and yeah i rarely see 1% commissions. This will change soon enough. Already this year I've had a number of sellers tell me that the agents accepted 1.5 -1.75% which is lower than I've historically observed. It'll be interesting to see how things will change come July and onwards.
1.5% commission is what agents in Europe have been getting for decades! @@anynimus1617
They are all greedy snots
I listenen to your podcast on a regular basis. It seems to me that the Housing industry including the realtors, lenders and anyone else who is involved buying, selling and financing of homes have needed structure and heavy handed over sight for quite some time. I'm not convinced that the many issues of the industry will be corrected anytime soon. We are getting ready to sell my mother's house and I am terrified to get into this cesspool of inadequacies that is the Housing industry right now!
Thank you for saying all the quite parts out loud. Ouch!
That's because you don't do physical work ! Most of us are worn out by the time for retirement !
I used to think that agents were way overpaid, until I became one. Real estate agents need to charge an upfront retainer like attorneys do. As the hours are used up for all the crap (emails, phone calls, questions, title company requirements, contracts, amendments, blah blah blah, - more money should be paid as the time is used up.
Hello from Winter Park Colorado where it’s living up to its namesake and snowing.
Love the show and the guests! Thank you for the great content!
Bro I’m in the south and it’s gonna get up to 90 with 96% humidity today
Why doesn't NAR get their house in order before telling others what to do.
Here is an idea, realtor as moderator, for hourly fee. Brings both sides for a sit down to reach agreement.
It would be super helpful if you would offer chapters on your videos
One thing is for sure, there's either going to be a crash or home prices are going to continue to soar to new levels. Weird times for sure
I think I like the new law because the agent can’t assume they are going to get a commission percentage. I already found a house I just need an agent for paperwork now.I am looking for the agent that will cost me the least(some skill needed) amount because I will offer to pay buyer agent fee as an negotiation tactic for the seller to give me the house at a lower price. Seller wont have to pay the commission to buyer agent. I will.
Just go get a lawyer to do the paperwork, you will spend less than a realtor would cost. Any decent attorney can due the contract .
Just get an attorney and pay the title company you do not need an agent.
This assumption that a real estate transaction boils down to a few hours of actual work is infuriating. Especially in this market! It’s true with certain transactions, which is why commission is negotiable. There are some transactions we put 40+ hours into whilst juggling several others. We’re available day, night weekends and driving all the place. We’re also writing up to 10+ offers for one buyer. It’s incredibly stressful and time-consuming if you’re a good agent.
Could the future be that a large corporation buys the property to sell. Independent brokers are eliminated. The seller is happy with quick sale and the buyer goes to the corporation to see all that's for sale. No commissions and not much haggling. The corporation buys at fair price and sells at what it can get. Buyers would be at a disadvantage in this scenario. Maybe that's already happening.
Realtors need to wake up to the coffee on Subject To. Love Todd but he is such a philistine on creative deals. Agents are offering SELLER FINANCE on the MLS now! Great show as always.
I am looking at these comments and most of these folks do not seem to value the work an agent does to bring buyer and seller together. We spend countless hours combing through inventory for buyers, trying to find pre market inventory, previewing property and showing property. Helping with the contract process( in Texas we do the contracts, not attorneys. We use promulgated forms online). We help with the option n inspection process, getting estimates and negotiating amendments. The process is complicated and not all buyers know it. We do add value to the transaction and many times particularly now no transaction would happen at all without us, particularly since Buyers think it is 2008 and Sellers think it is 2022. The 1 pct agents just are not as skilled and you try working for free and see how long that lasts for you. It is expensive to be a Realtor there are a lot of fees we have to pay. We do add value to a transaction and most would not happen at all without our intervention.
It's a box..that holds .shit. And people .
All a house is is a place to keep your stuff while you go out and get…. More stuff. - George Carlin
David was great. Todd great information. Loved this podcast
no, you can't charge your listing agent, because he/she works for a broker, and then the state pays for the broker, but charges interest. so, they spend all that time paying the state off for its trouble.
bottom line... agents represent their clients and should be compensated by those they represent. it's actually quite simple.
My friend and his family lived with his mother in law. She passed away. They stayed in the house, paid the mortgage and bills for a couple of years. Somehow the bank found out and told them they had to leave. As far as I know, he didn’t do anything to alert the bank.
What about buying a property using gold bullion coins only?
As an asset mgr. on the backend of REO, we were already cut out by the continued FCL moratorium. They said the moratorium was over in 2022, yet that is BS, it’s still there. Won’t be there to help when it comes back and honestly don’t care. I’ve retired and moved abroad, will watch it all implode from afar.
My son has a 2.5% FHA loan on a house he bought in 2021. He is in the process of fixing it up. 1920s craftsmen too big for him, too many projects and too far out of town. After he finishes both bathrooms, should he stop and sell as is or continue to fix it up? He wants a much smaller house closer to where he wants to live. FHA loan. Can he advertise it as assumable?
You posted same question on other videos. Why don't you let him contact an expert himself? Yes. That fool who overpaid for a house he does not need.
I don’t know that the agents will care about doing the right thing, because the punishment will fall on their company, or NAR. Have there been successful lawsuits against real estate agents?
Comment.....To buy or sell a house you do not need an agent to buy a house. As a buyer in most cases, you need to do your own research on how to buy a house.....like the old saying....buyer beware....and even if you use an agent to buy a house never trust what they are doing....always verify what they are doing..
Several states require that a licensed realtor be involved in all real estate transactions--California is an example.
On the unemployment rate it is absolutely wrong it's higher because the thousands that got huge severance packages have not even applied for unemployment yet and still won't be for months.
Buyers agent fees should be negotiable. What are they actually doing for the buyers? The answer varies greatly.
Need to revamp and have no buyers agent - criminal how much they make on one deal trying to cover lost time either showing dead end deals - like a vacuum salesman going house to house for weeks and then tacking on $20k to the one sale they finally get - NOT fair and needs to stop
excellent video. Go into tax reevaluation. How cities create there own market appraisal discrimination. Get away with it. How HUD has been sued before. On going discrimination. Incredible, unreal. Keep the good work up.
Maybe a seller don't need a seller agent. The seller should just put they house up for sale. Then the buyer agent should work the deal for both parties that is negotiating the deal between the two.
Sadly the legal / judicial system is not your friend in these situation. Your better figure out a way to get creative and get these people off your land, just as Todd experienced. Been there, done that. Yes I have stories: sorry, not so much willing to share on a public foreign.
...forum.
I hope Harry Dent is right! 👍
He rarely is
Yes, the criminals are that smart. They sequester ten of thousands of properties every year. It’s big business.
Nothing worse than a religious squatter! I leased out a home I owned in Jax FL years ago to a pastor and his wife.I assumed they would be great renters..well they paid 2 months then stopped paying..took months to evict them and they took every single appliance, ceiling fan and wall switch! Totally ruined the house! I won't admit it but I do avoid renting to certain groups..you can tell which group they are! The tent story cracked me up! I would have said I'm doing some brush burning and set the tent on fire! Hey, it's the owner's land! He has every legal right to do groundskeeping! He never authorized a tent to be erected on his land so he has every right to claim the tent as his! Basic legal speak!
Source Cash if any large deposit shows on last 2 or 3 statments.
Boston area new homes are 3000 sq ft, 1,600,000
If u take home buyers' classes, they teach you how to buy down realtor points.
These agents are opening a can of worms that they may realize was wasn’t dissimilar to shooting oneself in the foot. - Where ever an opportunity presents itself, there will be someone to walk through that door.
Hope y’all get my drift.
How would people feel if a group of people wanted to end their careers ?? This is ridiculous commission has always been negotiable ! If certain realtors didn’t disclose who was charging and making what money sue the individual agent !! You don’t get to cancel an entire industry !
Exactly
This is the biggest lie. Everytime I tried to negotiate the comission, the agent did not agree. Some would accept a small 0.25% reduction, but most would not.
Get to work lady! Most agents are overpaid leeches.
8300 is when you deposit more than $10k
Love your channel. May I suggest you limit interviews to 1hr or less…1hr is even too long most of the time, but 2hrs is crazy.
A cruise-ship full of attornies goes into Bermuda Triangle, s hit with a Hurricae and sinks..all the lifeboats are filled with Crew and the attornies jump into shark infested waters
When coast guard arrives to sinking they pickup all the attornies floating in the water and the last rescuer asks the biggest Great White
Why didnt you attack the attornies?
GreatWhiteShark>Professional Courtesy
Real estate fees need to be a third like 1% period
watch new companies will start up with 1%
Banks dont work with 10K cash (Its too much)...? They arent secure themselves are they...? No wonder they arent getting peoples money... Adios!
Thanks!
Thank you 🙏
Need to say .. Thank you Todd! I love this channel and the open honest conversation. If this industry had more of that, it would benefit everyone involved the immensely.
Unfortunately in our current world the pendulum has swung so far left (chaos) they perhaps what we will need to beware is the reverse swing.
This ruling is just going to insure that the “haves” and “have nots” separate further. The only people buying houses will be well-heeled, or institutional, due to this ruling.
I don't think so. Buyers ask Sellers all the time to pay for closing cost. They'll negotiate with sellers now on agent fees. Same game different board set up. And I think some buyers will simply finance the agent cost in the mortgage.
@@anynimus1617And how is that going to reduce the cost of homes (the point of the lawsuit) or the cost of mortgages?
@@monsteraetc I don't think all that much will change to be honest. Well, I should clarify that. I think a lot of the smaller agents will leave the industry. As to the cost for the seller I think many will end up giving concessions to buyer's for their agent fees. The sellers will possibly end up paying less than they would have under the traditional system, but those savings will not likely make it to the buyers.
These shows are too long,. By the end you could tell the guest was out of energy and kinda over it. This show should've wrapped after an hour
Lawyers make everything take forever
2 ………. 1 hour shows ……… would be better ……… part 1 & part 2
This guys guest's voice sounds like MARK CUBAN
What planet do these guys live on? Housing market in CA and FL is going strong.
FL is seeing inventory explosion
@Cyrus992 And what are prices doing ?
@@JimFriend-iw3ev no longer rising
@Cyrus992 You wish. 👌
Up 3%+ year to date already so far.
I'm not seeing that in Los Angeles. There are so few houses listed that you'd think there would still be bidding wars. There's not. Just small price reductions and sitting on the market, only to expire and then be relisted a few months later. I keep seeing the same houses over and over.
GFC ALL PLANNED BY DESIGN
Aside from the fact that we are law abiding citizens
In what planet does this criminally correct doi should not be sued and you guys can quit apologizing for serving the community 😊
That law suit is ridiculous …. Leave it to an attorney who makes ridiculous amounts of money per hour to bring a law suit to destroy an entire industry …..
LOL
Sack, you are forgetting that a lot of sellers don't speak English. MLS doesn't mean anything to them.
Speak for yourself. Market is local. They can get a transaction broker for a small fee that is bilingual.
Self serving Trump supporters
Sacky- Real Estate is finished, expedite your You Tube channel 😅