New rules shake up realtor pay: Here's what to know
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- Опубликовано: 11 сен 2024
- CNBC’s Diana Olick and Amy Lessinger, RE/MAX president, join 'Squawk Box' to discuss new rules that will impact how realtors are paid, how the new rules will impact the real estate business, and more.
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Dodges direct questions with Completely useless answers. Just platitudes. Should never have this woman back on.
A real estate agents job is to get a buyer and a seller together. With the internet and listings you can do the leg work yourself and save 5% to 6% on the sale. The bank will do all the work for you. Once you sign a contract with an agent you are stuck with them per the contract agreement. The biggest piece for any buyer if they plan to get a bank loan is to get pre approval for the amount they qualify for so they are not wasting anyone's time. IE; if you qualify for a 300K loan don't go looking at houses above that price. Putting 20% down will also eliminate the PMI. The bank will not loan you the money without proper inspection of the home before purchasing. Ie; structure, termites, flood zone etc.
@@nickbargas7352 That sounds like a very good idea! It's 2024, we need to get rid of the middleman.
@@AB-uz8fy some busy people that don't want to do the leg work want an agent, there is a need for certain people.
@@nickbargas7352 Honestly, it’s ridiculous to pay 3% on a $1 million house to someone who just found those houses on a website, sent you a bunch of emails, and took you to see a few of them. I'm from LA.
Simple answer:
Everything is negotiable!
Her answers seem like Realtor talking points instead of useful information for buyers/sellers
She is only clear about one thing -she will not admit realtors are overpaid and will not tell anyone how to use the law to only pay what they are worth.
She dodged all the important questions and responded with empty sales pitches.
Exactly!
Not true. She did well.
The answers were accurate.
You can spend 1 hour+ answering each question with all the details and intricacies.
Real estate agents spend hours every day studying these changing contracts. And they will continue to change in the near term with these new laws.
Of course - buyers and sellers can navigate this area doing a transaction without a real estate professional. As that has ALWAYS been their right to do so.
Most agents are worthless…
all
They don't have client's best interest in mind. They only get paid once client close on the house so they advise to up the price bid.
@@Mark-ph5nh In Texas, we let high school dropouts to be agents, if they are 18 years old. I don't have a problem with that, since agents are simply door openers. I do have a problem with the heart surgeon rates they've charged for decades.
They pretend they are lawyers… which is comical.
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Im sorry but explaining what contingencies and appraisals are is not worth 3% of a home’s price that is now, on average nearly half a million dollars.
Exactly, that garbage really artificially pushes up inflation. 1% should be max but I think the mean should be .5%
End use buyers are going to lose on this one. They just know it or understand. Investor buyers and sellers are going to really win out going forward.
This lady is amazing at saying nothing
😂
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she said what was relevant. the agreement is between a buyer/seller and agent. They can negotiate the fees involved with procuring the property. the percentage is no longer explicitly defined. buyers/sellers can get more favorable terms AND the agent has to work for the sale. that's what she basically said.
Well that was a useless interview
She literally dodged 3/4’s of the questions
I think you're underestimating.
watching this got me more confused and concerned about the lack of clarity regarding these contracts.
It is worrying that this is your source for clarity on real estate regulations and contracts.
What’s the other side of the coin? Cas this lady is clearly biased.
My experience with buyers agents - they are not looking out for your best interest, they are worried about getting you to buy a home so they can get paid. Real Estate agents are leaches. You have a real estate attorney who represents you in the sale.
Lots of lawsuits coming from buyers against their agents. Realtors are supposed to be advocating in their buyers best interest. So here's a hypothetical situation that will happen often as interest rates come down and things get competitive again.
A house has 3-5 offers. The seller will most likely take the offer with the lowest buyers agent commission. The buyers agent will have an ego and say "I only work for 2/3%". The buyer will lose out on the home because their agent wasn't willing to take a 1/1.5% commission on the deal. That buyer will bring their agent to court saying they didn't have their best interest in mind.
That’s exactly what happened with us when we bought our current home. We were one of multiple offers for the house. Our offer was slightly lower than one other offer, but the higher offer required the seller to pay their agent an extra one percent more than the normal commission. This caused their offer to be lower than ours and as a result, that agent cost them the house.
I don’t think it will hold up in court due to the fact that the buyers agency agreement will be signed and outline what duties and costs are owed to the buyer. And the buyer to the buyers agent. and it will be agreed-upon prior to making an offer and looking at homes. just like any other contract. It’s all about prior written consent.
@@robertmd2013 lol kind of like this entire shakeup of the industry?
@@nolanstephenson2599 It’s not a huge shakeup imo just more paperwork and explanations.
The unintended consequence.
Such a “master” of not answering a question. She should get into politics.
Amy Lessinger (Re/Max President) is not a good representation of a good quality real estate agent that she describes.
The goal of both the Seller and Buyer agent is to close the deal and get paid.
How about adding a fiduciary standard to the buyer's agreement.
Never sign a buyer's agreement. Just call the seller's agent to view the home, and save yourself a LOT of $.
@@larryjones9773100% - seller agents will be willing to see quick whoever reaches to them.
Imagine being on TV and giving BS non-answers for 5 minutes 🤦🏽♂️
This woman is a perfect example of why RE agents are overpriced/obsolete. She dodged every question -AI could do that for next to nothing! Agents can’t be held responsible -AI can’t be held responsible!
In a couple years, robots will handle residential real estate transactions (hopefully). A tech firm will take over, and fees will plunge lower.
How many of you know the anchor is a realtor herself😂😂😂
Rigged interview from a rigged industry. They're all crooks/thieves.
Which one 😮?
A lot of talking and no communication. This is the type of agent you should avoid.
She sure doesnt sound like a trusted agent.
This woman is an expert at dodging questions. I expect her to run for congress soon.
As a tele-sales person, she has a transcript of answers
"Real Estate agent add a lot of value"
"Prices are negotiable, commissions are negotiable"
"Price of property is based on supply and demand"
Bull. There's no point paying 2.5 each for buyer and seller agent.
I would say pay a max of 5K each and get done with it
This is absolutely deplorable. Buyers now have NO protection from awful realtors. What has this country become?! I'm flabbergasted that this passed.
Always negotiable instead of 6% I can do 5% . Did she even answer one of those questions? What a nightmare .
The 6% will become 1%.
Still too much
@@jayr3053 I suspect you are right. The carpenters did the hard work (building the home). I worked as a carpenter a couple summers for a little over minimum wage. Seeing these agents capitalizing on my hard work, is very annoying.
Realtors provide valuable service. Sure, just not worth $25k in commission if I pick my own house. All other inportant services: inspection, attorney, title, I pay for it myself
Amy has a great second career as a national office candidate! She talks exactly like a Congress person or Senator!😊
Everything in the contracts negotiable and right now we are in the wild West for real estate negotiations and prices there is gonna be no proper answer you’re gonna find online because a lot of it can be localized. Some brokers in areas are still charging 3% and a lesser percentage for lesser services. I’ve seen people charge more also. You literally got a shop around and figure out what you want in a home and how much do you want help in buying a home. Also, for the most part almost every seller still offering commission and there’s other places they can write it up. If you want your home to get sold then your gonna offer a commission because most people still gonna have a buyers agent and they’re gonna want a home that the commissions covered so they don’t have to pay for it.
This agent was not being completely representative of what the NAR settlement really means.
Amy is really good at obfuscating. Did she directly answer even one question?
I live in California. The prices here are nuts though I can’t complain since I choose to live here.
if I buy a $2m home and the agent makes 2%, that’s $40k for a few hours of work. Even the most high paid attorneys at white shoe firms on Wall Street don’t charge that much per hour.
Sellside agents put in many more hours and still are overpaid using percentage formula. The buyside fee is egregious and was ripe to change for decades. Amazed that it took this long for the MLS monopoly power of agents to be broken up.
Tired of agents claims "the commission has alway been negotiable" which is absolute BS.
I have purchased 3 homes over my life and just helped my sister close a deal as well and at NO time have I EVER had an agent say their salary was negotiable, it was a flat 2.5 or 3% paid by the seller.
Friends and family have bought homes and that was never disclosed…
I have bought two homes new, both direct from the builder/developer. Eliminates all this BS.
Why would i want a buyers agent who's pay is based off the sale price? Sounds like they have a vested interest to screw you.
You DO NOT need a BUYERS AGENT to buy a house.
I really wish someone else was interviewed on this subject because it is very important everyone is represented but she did not explain properly why. The interviewers as well were very uneducated with their questions.
I bought my first home last year. My agent obsoletely didn’t do anything to help me during the inspection/ loan process. In fact he was MIA during last week of my closing. Never returned my calls. He called me a week after I moved in, thanking me for buying the house. His share of the commission was $14k.
you should have hired a realestate lawyer to do the transaction for $1000 and its done much better
I am still confused. Did this woman explain it and I missed it? Did she skirt around the question and leave me still confused?
If you are a buyer Just go straight to seller's agent and have him/her represent you and they will offer good % since they are on both end of the transaction.
Also, I think that money is going to be pocketed by the listing agent.
Say they charged 5% before, 2.5% for listing and 2.5% buyer's agent.
But now, they won't have to give half to the buyer's agent. That doesn't mean the listing agent won't continue to charge 5%. I don't think it will lower any prices. Just one person there pockets more.
But time will show us.
Perhaps realtors should be compensated with a flat fee, or per-hour basis. Charging a % of transaction value is an arbitrary amount to an overpaid profession. Buying or selling a $1.5 million house is not inherently 3x more difficult than buying or selling a $500k house, yet many agents expect to be paid $45,000 for their half of the transaction. Crazy when so many stick a sign in a yard, have a photographer take some photos, stick it on MLS, and then field a few calls with offers. Ridiculous.
Commissions are negotiable but every realtor in north Alabama charge 6% bottom line and no the prices will not come down
What if the property is not listed through any MLS? Can someone want to take a look at the house follow this requirement, which needs a buyer agent?
Lol paying 5 figures for "local expertise" makes me want to throw up. These guys and car dealerships are just professional and branded parasites in society.
Some thing need to done with Property taxes as well, its keeps going up and is not reasonable in New Jersey.
My opinion is the Agent should give a potential buyer a website link or document to fill out. I know Ground Breaking thought, buyer would fill out and prioritize what they Need the house to have, what they want, what would be nice to have. Buyer would scan different home styles, layouts, amenities and prioritize what they like best. Buyer would pay a fair negotiated fee/price for a level of service required. I know agents who have spent 6 weeks, 45 plus hours with potential clients and received 0 zero to cover expenses.
Terrible interview on her part. She just protected the industry without answering your questions directly. And I am saying that as a former agent.
Let's do this. We all know nowadays the home buying/selling process has been streamlined these days. I understand the argument of 1st time home buyer may need more help/time to buy a house. Let's make a mandatory for 1st time home buyers to take free community classes to learn about the process, like getting a loan, escrow, etc. Then, the work for a buyer agent will be a lot less, and they should charge a flat fee instead of % of house price.
As a rule, this will make no difference on prices. The theory sounds good but really is mainly just theory. There has already been and should be more movement of using only buyers agents instead of a second seller agent, which confuses the public. I have never paid 3% by the way, always less if a simple residential sale, sometimes more in a difficult market or complex property. Like RESPA it sits on a largely inaccurate theory that people will generally shop around and compare service providers before first looking for a property to buy or to list for sale. Too many other factors come into play that are more important. Similarly, these same types of theorists insist on TILA disclosures and then make them so compound and confusing that consumers can’t reasonably follow all the ins and outs.
Absolutely useless interview and a giant waste of 5 minutes
In California, it is law an agent has a fiduciary to their client so their client's best interests come first before an agent's commission. The DOJ has it out for NAR and NAR pretends this is all perfectly normal "we've always done it this way anyway" in 20 states. NAR wouldn't say sh*t if they had a mouthful. A San Diego real estate attorney recently said the new NAR/CAR buyer broker agreement is a trap for lawsuits. He doesn't recommend agents or home buyers to sign one.
I didn’t pick up on any new info. I didn’t pick up on any answers. It’s basically, go speak to an agent. Great waste of time.
Buyers and sellers compensation has ALWAYS been negotiable. The main change is the MLS/local real estate agency’s no longer ‘require’ at least $1 in co-brokerage compensation.
What we very well may see is price discovery and competition now. Theres already discount brokers like Redfin who are rock bottom on their commisions. The question will be what equilibrium will be struck between price and value provided. In the short term a lot of realtors whove been contenet to just send you a few links to an mls and collect commisions on sales may be hurting as they now in theory have to compete to show value for their commision.
Let's see...
Buyer's monies to buy prior to this new policy:
1. Down payment
2. Credit report Inspections & Appraisal
3. Closing costs
4. And now agent's commissions?
It's funny how this new change has been marketed to seem it's helping the consumer, when in fact the consumer is the buyer and not the seller.
If you are a first time home buyer, be sure to be working with a sharp agent to still get the seller to credit your agent's commission, rather than adding an additional cost to your purchase.
At the end of the day and when all the smoke clears, the ones that are going to be hit the hardest will be the buyer's agents, since commissions are negotiable and a buyer could tell the agent to take a 1% commission vs 3% or take a walk.
The ones well position in this change are the listing agents.
If prices start to drop as a result of this, sellers would rather pay a buyer's agent vs taking a bigger loss of their property sits on the market for too long.
All in all, it's too premature to determine which way the wind will blow with this change.
Real estate agents are not professional real estate appraisers. That is another profession. Get your home appraised or go to the county records for the homes they used to appraise your home if recent. If the buyer agrees with the appraisal they can make an offer. There is too much data available today for the buyer and seller to pay a real estate agent anything but a flat fee. You want them to give their opinion, write the offer and do the paperwork along with negotiating any issues the come up on inspection.
The Realtor Can be important for first time buyers. Knowing who and what level of financing they qualify for. Recommending Closing/Settlement companies are not all the same (There are a lot of detailed paperwork, that needs to be almost 100% accurate, all taxes, fees, recording at city/county office, escrow, funding received and paid) The Realtor has minimal work in this process. Some experienced, knowledgeable Realtors can be helpful with determining Fair Market Value, Tradesman to provide estimates if home needs work, Days on Market, Things not accounted for with buyer that may increase/decrease the value/price of a home.
The fact that an agent always represents the best interests of a buyer is a joke. Several of them just want to close a deal and pocket his commission
She never gives a straight answer! Just answer the questions directly please!
Buyers will pay the Buyer Agent's commission, instead of it coming out of the profit from the sale of the house. They will need to negotiate that percentage before the Agent shows them houses. The Seller will pay the Seller's Agent commission.
Please do a story about Australia, where homes are sold at auction for only a few hundred dollars in fees.
What a waste of time
she's selling so hard to use an agent. lmfao, not buying it
New system will bring more online automated systems for buyers. That will drop buyer 3%. As the buyer commissions will drop, seller’s 3% will also go tru a downfall to match.
@2:21 did one of them fart?😂
The way she dodged questions, reminds me of the head of Secret Service during the Congressional hearing.
This lady should be a car salesman should sell a lot of cars. She avoids all the questions.
Realtors are paid waaaay too much as is
Shouldn't have been such a lucrative job last few years in the first place
hire a realestate lawyer to do the transaction for you for a low fee. you dont need an agent
Buyer: It looks like the house needs work possibly a new roof ect. Realtor: Oh no the roof was replaced 30 years ago it still has 20 years left on it. The only person more slimer then a used car salesman is a realtor. 99% of realtors will say anything to make the sell then deny it after closing.
What are unintended consequences? …silence 👎
"Trusted" and "realtor" don't generally go together 😂
Why would a buyers agent negotiate a lower price on behalf of the buyer when it directly means lower pay check at the end of the deal.
Answer the question directly. It’s 2024
As long as buyer agents get paid a percentage, it's an incentive to get the buyer to pay more. Also, if sellers aren't paying buyer agents, they still won't lower their price to reflect that. All these new rules mean is buyers will have to pay more.
if you can't afford buyer commissions, you should not be buying a home. It will make the market more healthy in the long term
BTW, if a Realtor refuses to show you a house for sale unless you sign an agreement, contact the FREC (Florida Real Estate Commission) and file a complaint! If that realtor is found to be guilty after an investigation, their license will be revoked!!! There is NO law in Florida that says you must have a realtor to buy or sell your own home!!! FSBO (For Sale By Owner!)
What happens if the agent fails to provide information? What is the process if an agent needs to remember to provide HOA information? What if the property had water or other damage, and the agent failed to acquire this information? Could you tell me what is available if an agent doesn't do their job?
She just showed how to avoid answering an honest question with a honest answer. Bad Politician vibes. Basically, Agents have been way OVER Paid for way too long. Now, buyers agent will have to accept way less compensation due to the value of their service. $20k commission for opening doors??? That BS is over unless seller is going to pay it. Rolling that on top of sales price won't work if the appraisal doesn't support it. Bottom line, buyers aren't going to be paying absorbent Buyers Agent commissions out of pocket. Buh Bye unearned Range Rovers 😂
This lady is a plug from the NRA.
It appears that a decent real estate attorney would be more valuable in the moment.
Lady President next time prepare for a national broadcast interview. Think about both sides, people see your Bias and attempts to Inflate a Realtors Value to buyers/sellers. Talk Both sides of the issue
I was thinking about selling and buying a house in Arizona now I’m selling and buying a house in Spain. That you UsA
Yes, it's going to be tough for the buyer.
If the homeowner wants to sell a home and has a realtor who likes to navigate away from topic just like the broker being interviewed here, sounds like only self interest.
Who's going to defend the buyer?
Buyer versus two on the other side, mostly greedy
I guess we'll have to see where that money will go.
She didn't answer that question.
Because everyone knows your realtor has you best interest not just making money 💰 never to be heard from again.😢
She answered the question without answering the question...
Those savy enough to use online platforms will save thousands
3% of 500000 = 15K; 4% is 20K, that is steep
Im just going to apply for a mortgage, put 20% down, and buy a new built home in a new built neighborhood. Avoid all that extra.
Realtors are the most useless people.. they're basically uber drivers..
Over 10 year Real Estate Investor, Home Prices are Not solely determined by Supply and Demand. Sellers urgency to sell, location, home condition, home design and layout (Many Factors) to home price Lady.
These changes will have zero impact on house pricing. The amount a buyer is willing to pay includes all expenses and the seller will receive what the market is willing to provide including any fees.
She's a complete liar. Agents will always tell the inexperienced clients that fees are standard and regardless of which side of the transaction you're on seems like they always tell you that the other side pays the fee. It's a total con game.
Lower costs doesn't equate lower price, its pretty simple my boi no need to ask
If you can't answer the question don't don't the interviews...
What a shock: a realtor who does nothing but spin and BS. Right above a used car salesman we have these folks. I look forward to having the option to use AI instead of a broker who gets such a sizable commission for doing so little.
Regurgitating talking points without answering any questions. "You need to be represented by a trusted professional" is about the only she says. Completely self-interested. It also assumes an agent is competent and professional. So many are incompetent, divorced former housewives who need a job when their marriage ends, or total clowns who know about as much as the average person about real estate.
I still have MLS access from when I purchased a home... My friend from DC calls asking all these questions during home purchase. I was able to go on the MLS, provide disclosure documents, etc. that his buyer agent never did and point out some sub-division yearly fee time "x" years for sewer infrastructure. I got a little annoyed and told him that I'm spending more time answering his questions and his agent is getting roughly 3% of 500K. Long-story short, my friend acted a little childish over some small issues and threatened to pull his offer. His agent offered to pay him 5k towards closing cost to close the deal... Agent did nothing and basically make 10-12k...
@@zacharyfair6738 that is why we need to get rid of the middleman. Internet and AI can replace them. I hope this future is around the corner.
Most buyers are useless, Zero benefits to buyer whatsoever. Have an inspection, appraisal, look it over well, it's wood, nails, electrical & plumbing. No biggie. You don't need an agent to buy a house any than an Agent to Buy a Car. Have a RE attorney review documents for a few hundred bucks. No biggie. Especially if these lame Agents can do it, so can anyone. Finding a good loan with a humble Wholesale Broker is more important.
If someone is willing to pay me $600,000 for my house I am not going to sell it for less just because i don't have to pay an agent anymore. That's the point. If someone is willing to pay it because of lack of inventory I am not going to lower my price.
What’s the bottom line here from buyer and seller’s perspective? she didn’t answer the most basic question all buyers and sellers are wondering about. Waste of time!