Realtor commission structures could change as early as July 2024
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- Опубликовано: 19 июн 2024
- Walter Melanson, co-founder and market analyst at PropertyGuys.com joins BNN Bloomberg to break down the recent U.S. Class Action Settlement with the National Association of Realtors. He says this settlement will eventually push down commissions and create a climate with fewer agents.
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Realtors make way too much money for what they do
but who else is going to tell us the living room gets alot of sun??
I’m a agent n I’m 21 n bruh it’s literally robbery , hardest part is finding the client n once the client puts in the offer and it gets accepted all we do it email documents back in forth
Maybe no one has ever broke it down for you so I will. 😁
500,000 + 6%= $30,000
Listing Broker 3% - $15,000
Buyer Broker3% - $15,000
My broker split is 80% to me so $12,000
After taxes $7560 to me as the listing agent…
Oh and that’s before I pay for professional pictures, Marketing, cleaning, staging, etc.
After all of the hours and money that I put into the service It really adds up. For me to get a $30,000 paycheck after taxes I need to sell approximately
- 1 $2,000,000 house
- 4 $500,000 houses
- 8 $250,000 houses
to make that $30,000 after taxes. Again that doesn’t even include my expenses..🤙🏼
@@landoncarter1088pictures cleaning and staging is all one day, you don’t even need to hire a professional photographer too no one is not going to buy a house due to bad pictures, admit it or not 90% or the work is sitting at your computer/phone sending out documents to get signed , 7k for doing all that is still a large amount , 1 sale a month is 84k , doing better then majority of Americans
You haren't doing shit, that's how you are been replace with a thousand buck service.
As a realtor in my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Realtors are fly by night we have way too many and for the most part they are unregulated. Imagine spending 50K + on. Realtor. Transactions should be flat fee. 5K sellers agent and 5K buyers agent. If you don’t like it, there’s lots of agents that would jump at the opportunity. Time for Canadians to smarten up about this whole realtor scheme.
Upfront flat fee regardless if it closes? Hell yeah! I'm an agent and I'd love that because you have no idea how much people waste our time & never close. 😂
@@mommom3172 Yeah, so are car salesmen, mortgage brokers, and every other sales job. Reatlors is the most worthless job and should be replaced by in the age of the Internet. If it is not because of their monopoly and the barriers in the system.
@@mommom3172no, all realtors are way overpaid
Give me a break. Too many Realtors make over $200k for working 1/4 of the normal individual. I'm an tax accountant and see it first hand @@mommom3172
How about 500 upfront fee and 4500 at the time of closing?
yep, the real estate commission percentage is way too high!! Overcharged!!
The party is over! Get a real job!
You stole my comment 😂
No
100% , can’t wait to see these cheap suits have to work a real job lol
You wouldn't last a day as a realtor.
This should definitely come to canada .
Buyer finds a home on MLS, buyer gets a pre approval from the bank, a buyer decided their top budget, a buyer driver themselves to a housing appointment and realtor comes and opens the lock box and they were getting 2-2.5%. Glorified lock box openers, the party is over. If anything it should be a set fee of no more than 5k per a sale, given technology available there is no need for a realtor anymore
Yeah, you have no idea...
@@blues1331 The list doesn't enter there. The lawyers do the title checks and close the transcation, the stager comes to stage the house and the cleaner or house owner does the cleaning. None of these people get paid nearly anywhere close to the realtor, yet they do a lot more. Please tell me what I don't know and how this is justified.
@@kennyho6821 who do you think pays for the stager, the photography and any extra cleaning? The realtor. Being a realtor is a business, you pay association fees, insurance, marketing, advertsing dont forget your HST and incomes taxes. So yeah, you know nothing and it shows.
@@blues1331so true it seems like everybody is hating on us this guy is a f****** idiot give it a little while though they'll be dying and begging for a buyer's agent they're not even paying attention to the real target it's the lawyer who's getting away with highway robbery for 33%
@@blues1331explain to me why the realtor needs to pay for those things out of pocket? What’s stopping the seller from getting a house staged and putting some photos up on Kijiji? Any grown adult can post an ad on the MLS. It isn’t rocket science.
Realtors better enjoy those big commission checks…. Soon they will be lucky to get 2%.
Does Canada really need a 140,000 realtors ?? 😂 it’s not rocket science to sell a home privately!
What can possibly justify a commission of 7% on a 1M$ property? Anyone knows?
He's totally mistaken. It's 7% on the first $100,000 and less than half of that on the balance
I am all for it. Bought 5 properties over last 40 years. Found one realtor who wasn’t pushing for overbid the deal. You got to watch your back, they won’t hesitate to stab you for extra few pennies. I didn’t say $ for a reason.
If affordability of homes is a factors real estate commissions is something that should be dealt with- also blind bidding could be done away with as well
Realtors shouldn't make more than a teacher. I rather an elementary school teacher make 100k a year instead of realtor making 100k off of selling 3 houses. There nothing special. Houses are going to sell no matter what, also Google can do most of the work.
What are you talking about? Teachers make close to that and get the equivalent of four months off with full benefits and a full pension at retirement. One other thing elementary school teachers aren't really teachers, they're babysitters.
@renjiththariath7831 That's the point.. baby sitting is hard work and more valuable than selling real estate. Early education matters more.
I think the problem here is people take for granted the fact that they are able to get a piece of real estate and sell it back years later without any issues it's called biting the hand that feeds you The funny thing is I don't see anybody selling much of anything with this structure and it will return back over time
@jhu2319 the only reason it might get a return is if ppl want it. If the government didn't ramp up immigration and we saw our population decline. The value would also decline.
Big victory for consumers and a freer market.
Most people are buying and selling at the same time. They are actually going to end up paying more. Has anyone done the actual math? I'm all for it! 😂
And, our compensation is NOW completely confidential. Y'all have no idea what goes on behind closed doors and now you'll never know because it won't be published on MLS. 😂
@@mommom3172found the realtor
in canada they can still milk the people 😢
What is an agent worth an hour? If my doctor is $265 an hour, my mechanic is $125 an hour, the electrician is 70 an hour, my daughter is a respiratory therapist she gets $40 an hour, a ER nurse gets 50 an hour, policeman make 25-55 an hour. What is a realtor worth an hour? There is not. A single realtor alive worth 6% of a 500k house. What’s the number?
I charge $120/hr and my clients are happy to pay me. I help them avoid very expensive miatakes and protect their escrow. It ends up costing them more per hour for all the hours of research, phone calls text messages, follow up with all parties involved, tracking deliverables like estoppels, loan payoffs, lien searches, title and loan commitments, insurance binders, HOA applications & approvals, ensuring home warranties are transferred, reviewing inspection and appraisal reports, attending inspections and appraisals, taking their late night calls and texts after the kids are in bed with items they want me to follow up on the next day with the places open 9-5 while they are at work and most importantly...protecting their escrow that they may have saved years to come up with. All of this under a mutual agreement that if they lose their job 3 days before closing & can't close, I'll try to find a loophole to get them out of the contract, I'm due nothing & we can try again when they get back on their feet in 12 months. So. It is about mutual trust and respect. I'd love to get paid for my time upfront hourly. It would make my income a lot more predictable. But, the reality is that so many transactions fall apart & don't close. Buyers would deplete their savings if they paid hourly or flat fee upfront for all the failed offers they paid to have prepared & transactions that don't close. Agents have absorbed that unpaid labor & expenses for years. And because people don't really want to be burdened with paying upfront in exchange for services in real-time they rather shift the risk to us, allow us to work for free, and let us cash in if we can get the deal done. Sellers instinctively know they have to offer incentives or they can do all the work themselves via FSBO. Redfin has tried the hourly model on the buyer side. They end up with brand-new unskilled agents and the reviews aren't very good so it's kind of a pipe dream that people think the results we deliver "just happen" . I've spent a decade building out my network of prospective buyers, agents across the country, vendors, attorneys to get free advice for clients, contacts at the permitting offices, FEMA, the property management companies. It isn't always what you know, it's who you know in a business like this. What's it worth to get plugged into that? Again, this is why it is such an over simplification to commodatize the value I bring to the table. All I know is I have very happy clients who know they can call me about anything real estate related and if I don't have the answer, I can make one call and find out.
3k$ flat fee
@@donm2067 tops. Especially on a service that you can do yourself that takes an actual 10-20 hours of your time.
Just by her writing all this paragraph shows how desperate they getting trying to defend this garbage corrupt industry
Commission is 3.5 % for seller and 3.5 % to lister on first 100k. 1.5% for seller and 1.5 for lister on remainder of sell price above 100K. 500k home would be 7k plus 12k. So 19k on 500k. For 1 Mil, 34k.
In the uk realtors are beginning to be obsolete, they are replaced by websites
That's the normal way, not forcing sellers/ buyers to pay for something they can figure out themselves
The UK is a sh!thole. Who would want to live in a depressing place where the sun never comes out and everything is run down.
You can see house price history and do not need buyers agent there. Canada is a monopolist plutocracy
The transaction fees on real estate purchases is insane
I dont see how being a real estate ageny is a job still around.
Shoukd be 2% with a cap. The realtor doesn't do anything more on a 500K Condo than a 2M Penthouse or Home, ywr gets more $s commission?
In s hot market, hoises will sell. In a down market, they won't.
Can the realtor sell your 500K condo for 1.2M....? Theres no big secret or way of selling it. Thats why they want the listing and sit back and do nothing.
Fixed rate. Only be getting between $5k-$12k. How can everything from debt to investments be over 5% right now with the most risk. But realtor get the full 5% with so little work. After real estate. Cars also needa to regulated as well. Both the housing and car industry so crooked and unregulated. Too much bullshit adminy crap. And all their vehicle warranty that cost $3000-$6000 extra and sometimes they don't even honor the warranty. Reason why people just jump on the corrupted money making industries but they ditch all the hard labour jobs. Reason why all your bacon and eggs restaurants operated by children paid minimum wage and get yelled at by piece of shit customers above them. Things need to fucking change. I don't even understand this country is even Canada anymore. Ottawa used to have so much land with forestry and now just all these ugly ass condos being built. all these cheapass houses. Shit getting ridiculous
He avoided your question!!!! How much to sell 700.000 house
There should be no commission at all since we have websites to buy and sell.
In Canada, there really isn't any rationale to have an agent sell ones home. With today's technology and ability to market your home why is it so hard to have FSBO in provinces like Manitoba? Id be more than happy to help someone sell there home for a flat fee.
All the NAR ruling changes is the compensation being published on the MLS. This ain't the win most people think it is.
Good riddance to these overpriced real-estate agents. I've never had one agent perform miracles and get a higher price in bad times 😂
Exactly. They will all be looking for jobs soon enough
Realtors make way too much for what they actually do. I never want to sell my house.
Oh, that’s too bad, I was going to offer you $5 million for it ;)
It’s about time !!!
The greater Toronto area has 77,000 real estate agents!
Canadians move on average 5 times in their lifetime. Average house price in Cda is like $700K. 5% commission is $35K. $35K x 5 times = $175K. The average family income is about $100K in Canada. So in Canada, families have to work 1.75 years of their working lives to pay house commissions. Actually even more because you'll pay with after tax income. Seems absurd, because it is. Even worse when talking Vcr and TO. Flat fee needed.
Lawyers percentage is next they make way too much money compared to a realtor who gets 3% and splits it with the house so it's less than 3% realistically when a lawyer gets 33% highway robbery complaining about 6% you'll see just how well this works out in the end all of you will see
The realtors just won’t show your property to their clients if they don’t get a proper commission. It’s Business that’s too easy to be corrupt in.
If their client sees that property on MLS or House Sigmq how can a realtor refuse to take their clients for that showing? Were they ever really working in clients best interest?? Party is over
The realtor will just say the property is inferior or something in order to steer their client to a higher commission property.
@@Michael_Livingstonethen that realtor needs to be banned
@@realnapster1522 If that was the case, I’d say most realtors would be banned. I suspect they assume that their clients don’t know any better.
@@user-xz5xp2ii7rrealtor not gonna show you squat for free
Why not bring on a traditional realty firm vs the FSBO discounter?
Media doesn’t want a balanced discussion. So much of what that reporter said was incorrect.
Realtors should be stopped from price fixing. It is amazing to watch how fast they do it.
Next that needs to be looked at is financial commissions on wealth management.
Nah. More like car dealerships, and waiters. Two of the biggest scams in Canada. Want tips? Make 3$ an hour like they do in the wealthiest country in the world.
Why? Management max MER is like 2-2.5%. thats lower then 7. Not everything should be heavily discounted or free. Unless you can do everything yourself.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy, or not?
Stocks with yields that outperform the market should be on your radar, as should shares that at least lag the market over the long term. But if you want a long-term strategy that works, I advise you to consult a broker or financial advisor.
Don't depend your market assessments and decisions on hearsay and rumors; I did it in 2020 and ended up with worthless market holdings. Before I started noticing any notable improvements in my portfolio, and I had to completely rebuild it. I've been using the same advisor ever then, and in just two years I've scaled up to $876k. Depending on where you look, a bullish or down market might both produce good profits.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’AILEEN GERTRUDE TIPPY” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Good
Great news ..commissions are way too high ..
Why would let realtors make so much money for what they do?? I’m just gonna use online platform to sell mine myself
Anyone who thinks this is going to reduce housing costs is, to put it politely, naive. To put it more honestly, they're gullible fools. Who will be the big winner? Lawyers. Lawyers have been lobbying for decades to put realtors out of business so that they can swoop in and do the work realtors do at much less cost than a slimy attorney will charge. Yes, their rates will go up, way up. Who else will benefit? Big corporations selling homes. And title companies will up their already hefty fees to make up for the work realtors used to do that title companies will now have to do. The price of a house will not drop a dime. Congrats, Mr. Attorney -- you've consolidated even further the power you and your scummy brethren have over all of us.
😂😂😂😂😂😂😂 in Canada blind bidding and high comissions are a joke😂😂😂😂😂😂😂😂😂
Good job on building homes in other countries across the world and in Canada and in the USA 🇺🇸
System is corrupt so these agents will find ways to make profit over helping clients!
Very good move
Where in the country does a realtor make 7% on the entire selling price??? How about it's actually 7% on the first $100,000. and at least half that amount on the balance!! Commissions are also negotiable! No realtor is getting $70,000 commission!
😂😂😂😂😂😂Walters day has finally come🎉!
How about 500$ for the paperwork, nothing more. People can sell their own homes!
We should do differently.
This is so ignorant. Commissions aren’t going down they’re just being split between the buyer and seller instead of it only coming off the sellers proceeds at closing. Learn the facts. lol
Exactly. And, people are buying and selling at the same time. A person is going to pay more in total brokerage fees if they arr upgrading to a larger home than if they just paid on the selling side. Has anyone actually done the math?
Wrong ! Buyers agents will out compete each other and they will charge less .. already desperate as they are ... not surprising. So..yeah ..thats facts for you 🤡
@@vmtl4659 yeah, inflation is going up so let’s charge less.. makes sense. We’ll see how long they last in the business only charging pennies. 🤡
@@vmtl4659 Yeah, you’re so smart! They’ll charge less until their business model crumbles from being underpaid. Inflation is at a high and so I’d take a pay cut too if I were them. 🤡
Real estate anti trust laws😂😅👍👍👍
1. P. Oh man home prices are going up.
1. S. Ok, let's decrease the int. Rates slowly.
2. P. Oh no, our int. Rates are so low we can't pay for stuff.
2. S. Ok, we have gone low enough, now we increase rates and these crazy home prices should decrease.
3. P. Oh no, int. Rates are up to a 50 yr high and homes just increased by 30% nationwide.
3. S. Oh, well if we can't decrease the int. Rate because we need money and the markets are inflated, then what do we do? I know, we make new laws/regulating to make home buying easier. What in the home buying process costs buyer money? I know, THE BIG REALTOR COMMISSION FEES. let's change them.
Hypothesis: since the govt. Has no other way to make money but to inc. Int. Rates, they WILL find other avenues of allowing people to get into more debt, without actually helping anyone but themselves.
Then there is HST on top of these ridiculously high fees.
Standard flat fee that's it. No more commission = No more inflated price.
So never actually went over what the changes were because of the lawsuit, great...this is why no one watches Canadian networks.
I sold my house in march 2024 and I believe that we got more because of my agent and we also paid for the buyers agent commission. I would use a realtor again. I’d pay a 6% commission again, no problem.
Buyer paid the commission. Creative accounting/math makes it appear you did.
Give it 5 years AI will take over everyone’s job and every service will be free.
Time for real estate agents to get a real job. 99% of these agents don’t even know what a french drain is, simply put they are morons who just say this is the kitchen and this is the bathroom. Commissions should be a flat 10,000$ per transaction for both listing and buyer agents. That’s what they are worth. Not a penny more.
Naturally Walter Melanson is bias towards fixed fee commissions, he wants to get paid whether a house sells or not. This is not in the best interest of the seller.
Here's the truth, about commissions. For example, as a listing agent with a large brokerage in Calgary, I ONLY get paid a commission if/when a house sells and there is no "set" commission structure; if a house doesn't sell, I don't get paid. ALL commissions are negotiable. What is common within the city of Calgary is a seller pays 7% on the first $100,000 plus 3% on the balance of sale price to the listing brokerage plus GST. This commission is split (in most cases) 50/50 with the cooperating (buyers) brokerage. For example, if a house sells for $700,000, the total fee paid by the seller would be $25,000 plus GST.
If u uee property guys.....😂😂😂😂hint no one will bring a buyer unless the agent is offerdd 2.5% or so....that is the reality.....agents collude against the sellers...beware😮😮😮😮😮😮😮😮
Wrong answer Walter....people need to see compariables
As I realtor, I’ve saved some buyers 20k+, I’ve also had very satisfied sellers. Some dedicate their entire time to one client in hopes of making their day by finding them their dream home in a tough market.
Brokerages now = Broker's rage
This is only a part of the story. Interviewing the wrong person as well.
Won't somebody please think of the realtors!
commissions are usually 4-5% total....not 6 or 7%. You buy junk service from this guy you get junk service
How long you been real estate agent?
Party is over
Honestly CANADA is mocked around the world that, Canada DOES NOT produce anything significant , neither has any innovation but has HELL A LOT OF REALORS WHO SELL HOMES AMOUNGST EACH OTHER....My own friend circle has everyone becoming realtors holding multiple properties just to Flip also....Most of the newly landed immigrants also becoming realtors but honestly , Canada is loosing here with people selling homes instead of contributing to innovation or manufacturing. Now we have realtors who are even specifically only working for one language people or location people also leading to even worst situation where , ideally when a dependent home maker go to a university or college to get to a meaningful career is now selling homes in her own language and religion resulting in Ghettos communities.
About time! Fees for real estate professionals should be flat fees. It takes the same amount of effort to sell a property, pretty much no matter what the listing price is, so why should commissions be fee based? Just makes the realtors want the price to be as high as possible!
Here's someone who has never been a realtor!!! Would you like to know which properties actually take the most amount of time and effort and work to sell? The lowest end of the market - first time home buyers! They have to babysat every step of the way. A sophisticated buyer (meaning one who has bought/sold previously, likely a few times) meanwhile does not require so much hand-holding from the realtor. Realtors do not set the prices. So many misconceptions.
Realtors are making insane money they have no business making
It might take the same amount of effort. However, it does take significantly longer to sell a $2 million home vs $400k home. Not as many potential buyers in the higher price point. If it were a flat fee, i would rather be involved with the $400k home, so I get paid sooner.