Real estate commission lawsuit has power to change real estate landscape: Pasalis
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- Опубликовано: 19 июн 2024
- Toronto real estate class-action could affect billions of dollars in commissions, John Pasalis, president and broker of Realosophy Realty says our real estate market could begin to resemble that of Europe.
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The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Real estate investors losing money is music to my ears. They are a major reason why the real estate market is the way that it is now.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
STEPHINE KOPP MEEKS is who i work with look her
Thanks for recommending i find her and left her message online
No one needs to make $100k commission for posting a listing online and having it sell in less than a month. These need to be adjusted drastically.
So sell it yourself
@@3joewj Actually I have man times. Everyone should.
@@cbarfoot8456 then what is there to complain about??
@@cbarfoot8456how do you find a buyer? Especially when not many people can qualify for an average priced home now? As a developer myself, I don’t see any other way to get as much exposure as you would by listing it in the MLS
Talk to anyone Not in real estate industry, and they All said real estate agents are Overpaid… Commission structure still based on same % of selling price, set up decades ago before Internet…. Today everyone can see all sales listings on Internet… Realtors don’t need to search properties for their clients. All realtors do today just negotiate the price, if at all…
Then don’t get a real estate agent. You don’t need them and it’s on people who sign a contract with them if they want to be dumb. Commissions are always negotiable IF you ever decide to get one too so if you don’t want to pay the 5% then negotiate it off. These people just want to act like babies thinking they’re forced to do things when they’re simply ignorant and don’t want to take any accountability for signing a contract THAT THEY WEREN’T FORCED TO. Just wait until they find out that they don’t have to use the promulgated forms that real estate agents use to buy or sell real estate too 🤯🤯🤯 if you can find a house/land that you want to buy then go ahead and do it. If they need advice or opinions or a lawyer to be a paper pusher, they can find a lawyer who gets paid by the hour to do so. In some cases it can be significantly cheaper.
I said that over 10 years ago!! There profits are unacceptable for doing so little!!! Some agents told me easiest money I've ever yearned!! I've sold 2 homes with no agent, made real money. Take away that 6-7% you just lost 15-25,000 dollars so your house really didn't sell for what you think. Damn what does someone know without that piece of wallpaper 😡
Exactly. You are a brilliant man and know that you can do it yourself. If these people are dumb enough to sign a contract with an agent and not negotiate their commissions (it’s not 3% on each side like what is publicly believed), then that’s on them for being stupid. They sign a contract and then cry about paying commissions when there are alternative routes they can go. I’ve sold land before without an agent. You’re also limited to fair housing laws too if you go with an agent. It’s a free country and I should be allowed to discriminate if I don’t want to sell to certain individuals. I get that right taken away from me if I sign with a stealestate agent. If you don’t want to do an exclusive right to sell, you could always do an open listing, exclusive agency (where you don’t have to pay a commission if you find your own buyer), or a net listing if that’s legal in your state. There are so many alternatives out there, but nobody wants to take accountability for not doing their own research. We need more people like you who actually know what they’re talking about.
I think its time for a overall change in the realtor commissions.
Blows my mind we need to pay outrageous fees on our hard earned home equity.
agree long overdue and a big win for average Canadian if real estate commissions are regulated.
It also made it a massive incentive for real estate agents to manipulate the markets to increase prices as much as possible and in the end the only one benefiting from this process was the greedy real estate agents. I'm just happy it seems there might be some correction here.
@@DavidMcCalister It's impossible for agents to influence the market. We work to set up the asset so it presents itself well and market it in order to get the highest value possible in the current market. The majority of the market is determined by supply and demand. Prices are up because there is a major lack of supply and the Liberal government created an artificial market with rock-bottom interest rates. If you want to point to manipulation, look no further than the government manipulating the rates thereby manipulating the market.
@@stevezahnd I'm not sure how it could be impossible for real estate agents to influence. I've worked with them on design build project for single family dwellings and ive worked with the biggest firms that work on condo projects. Real estate agents even design our units which is super depressing since its all about fitting as much junk in their as possible to fill out an excel spreadsheet. I've had friends try to sell at even 2% commission and no interest, the following week he went back to the 2.5% and he had a flurry of interest. I also hear pundit real estate agents on news media always saying things are going to be getting better, and pushing developers to keep investing, and I've had real estate agents say they they don't actually think its going to be a good market but they are supposed to say it will be.... Its true that we are living in artificial scarcity caused by nimby zoning regulations causing 2 main issues -1 limiting development and slowing the process as much as possible (stepping ziggurat forms that cost 15-20% more to build per square foot for shadows) and 2 - having commercial rental and development fees subsidies existing home owners with cheap property taxes. That being said, a lot of the frenzy came from the hype machine that is the relators and their organizations encouraging the notion that if you don't get in now you'll never get in. All the bidding wars, the hidden bids, fighting to control information so that no one except the relators had knowledge. Don't forget steering and how the industry works to go against lower commissions. Its a monopoly cartel and back to the influence... developers who build thousands of units on a site will bring in their real estate agent and they will tell us what to do... that sounds a lot like influence.
All this to say i do very strongly agree with you on the Liberals manipulating the market and I remember being really angry at Trudeau 2 elections ago for clearly choosing to do nothing since some of his supporters felt like they were getting wealthy when in fact they weren't, our industry was breaking. It also covered the fact (along with the low interest rates) that our economy was failing under poor leadership and they were leveraging Canadian futures to pretend they were doing a good job. Even their showy and quite dumb wartime approval of pre-permitted projects would save 1-5% of the time of a project where the years are a result of the nimby zoning policies I've noted above. The immigration policy was another attempt to make it look like our economy wasn't failing but its essentially leveraging immigrants personal savings at their expense... which to me seems more like a hatred of immigrants than a love.
All in all I think there are issues with the real estate industry in Canada and there needs to be a correction. It may save 10% at most of the costs, likely closer to 5% but its still an issue. The biggest issues are Federal and Municipal hands down.
Lol...educate yourself. You're free to put a sign out front...what are you talking about??
Real estate agents are the most over paid for the lowest work and needs least qualifications
Exactly.. overpayed with very little education.
3 weekend and a relative in the buisness and a leased luxury car and away you go.
Don’t use them then or don’t sign an exclusive right to sell with them. Problem solved. It’s so simple. People think you have to get a real estate agent so that’s on them for not knowing any better and it’s their fault that real estate agents are making money off their stupidity. Do a for sale by owner, open listing, net listing, or exclusive agency (where they don’t get a commission if you find your own buyer) instead. During Covid, I had agents who were willing to get paid a set amount too instead of a percentage because of how the market was.
Everything that they know is publicly available information. If you think you can do a better job then do it yourself and stop complaining
@@JacksonWalter735 part of what you said is right, but not all. If you are selling your house as a owner and if a buyer already has an agent they will never let their buyer to visit your home. On the other side, if you are a buyer (I tried this) made an offer directly to the seller's agent, they were not willing to share my offer with the owner unless I accept them (listing agent) as a buyer agent or bring my own agent. I said I did all the work of finding and researching, their response was their offer acceptance system is automated and they have to key-in my information in that and for that they want 2.5% of the property value from the buyer also (in addition to the 2.5% they get from the seller). So your "stop complaining" response to me is perhaps due to your lack of this awareness on this!
5% commission fee for Canadian realtors in such a overpriced transactions … time to act . 0.5% to 1% each side , would be fair …
Is that the mandatory commission fee in Canada? If so you need to move to a real country. In the U.S. you can actually negotiate to the percentages you are discussing here IF YOU WANT TO USE AN AGENT. You don’t have to use one though, but I’m not sure if it’s the same in Canada
It's a silent agreement between agents. I listed a property without and agent and willing to pay the buyers agent comission and not one single agent showed up. Why? Becouse they are all in this. If someone sells private and the word gets out they lose transactions and the esy money they make. They do nothing for you most of the time 4% or more out your hard earned money is a total fraud! It should stop.
Dealing with self represented parties has risks for agents and buyers/seller. Also, anytime I deal with a seller or buyer that want to self represent try to pull questionable tactics. Most unethical group in the market. We'd rather work with professionals.
Everybody wants a deal, my friends are looking for a house but are adamant of getting rock bottom price. Maybe try listing for less money all people care about is the money, and getting a good deal. It’s a win-win and both people do it how they prefer.
@@stevezahnd and get the commission nice and easy. Yeah right......
Then find your own buyer. That’s what I did and paid an hourly lawyer to basically push paper through. Saved a significant amount of money selling some of my land out in Argyle, Texas doing that.
Same with me. The agents are colluding for sure. I am sure buyers see the ad and notify their agent who has never mentioned it, and the agent tells them it's got lots of problems and then steers them to a house paying a 6% commission . Very few buyers are going to want to pay their agent 3%. They know how little work the agent does. The agent gets $10-15K for few hours of effort while they buyers take 4-6 months to make at their jobs.
Less than 1% for buyer and seller agents combined is reasonable.
It’s always negotiable if you want to go that route. If they don’t want to do so, keep looking for an agent who will if you want to get an agent in the first place
“SOLD BELOW ASKING” “NOT COMING SOON” signs of the times.
The middle man's are ruining the industry ,main reason for all the pain. Why can't we buy and sell directly with just a lawyer doing the paper work?? Also mortgage agents are next frauds.. why can't I directly apply for loans may be it's possible but it's hard to get all approvals. Make it free from these agents who does lot of false paper work which leads to higher prices
You can directly go to a bank and apply for a mortgage. It's just that your not qualified for the loan you want and have gone to a shady mortgage broker. Your actually just as bad as these crooks
You literally can buy and sell directly while paying a lawyer to do the paper work…… with real estate agents they use promulgated forms written by lawyers. You don’t have to use them. You can get your own attorney to write up your own forms to sell. Depending on what you need, paying a lawyer who charges hourly to be a paper pusher can be significantly cheaper.
I agree with mortgage lenders though. At least in real estate IF you decide to sign with an agent, their commissions are negotiable and you can see it on the contracts. With a mortgage lender, they make a substantial amount of money with each loan you sign up for BUT YOU NEVER SEE HOW MUCH OF A CUT THEY MAKE. Those guys make a substantial amount of money and you don’t know how much you’re paying them. If anything that is more troubling than the current lawsuit towards real estate agents because you at least know how much they’re making and can negotiate that.
The buyer paying commission makes more sense then how it is done now where as a buyer I have had to sign a buying agreement with the agents I have worked with. i would rather have the opportunity to use whatever agent I choose during my search or change them if we are not working well together.
Do your own research and don’t sign a buying agreement until you find the house you want. You don’t need a real estate agent to buy a home. If you’re on the listing side when you sign those you are giving them an exclusive right to sell. That’s not the only option. You can do an open listing, a net listing (if that is legal in your state), or an exclusive agency (where if you find a buyer then the agents don’t get a cut of that commission). If you willingly choose to get a realtor or sign an exclusive right to sell, that’s on you for not knowing enough. There are alternatives out there but you guys only want to complain after choosing the wrong choice.
My house sold in 1 week. It should not cost $14,000 to have an open house, 3 views and a few hours of paper work.
Disgusting!
That’s on you for being dumb enough to sign a contract with a real estate agent. Even after signing one you did absolutely terrible on negotiating the commission 😂 take some accountability for once. I do for sale by owner for my land out in Argyle, TX and find my own buyers. It’s so simple. The one time I ran into issues, I hired an hourly lawyer to help me work it out and then basically push through paperwork.
SUE: = I need my 3.5% back
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You'll surely reach her
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No Agents required, in this tech powered world...let platforms be accessible to sellers/buyers...with more info...no real-estate agents/ mortgage agents required to fudge, manipulate system and customers...just transparent legal standardize system...with notory
It’s about time!
This guy's info on RE in the US sunbelt is sus af. Prices are dropping and inventory is exploding in a lot of areas there.
Buy Sell PRIVATE --- Might take a little extra time buy EASILY done remove these extra costs and split with Buyer/Seller
This is a silly issue. The seller has a price in mind n can add 5% to it, thereby extracting the buyer commission from the buyer itself.
Key question is : Y pay 5% for a service that is pretty standardized n is quite automated. Plus, with high home prices they rake in more for less work. Agents make more money for less work.
I got 1.5% of my buyers agent's 2% comission. never buy without first negotiating this amount. Agent may require you to go to open houses and do research yourself. Very easy way to get $15,000+ in cash back!
Times up!!
If you write 0% on buyer agent they will stigmatize your home and it will
Never sell
Then go find your own buyer. It’s that simple. It’s what I did. I don’t want to pay them and found my own buyers by advertising on Facebook. It was so simple.
US real estate market is different from Canada , no capital gain on your principal home !
Hedge funds wont be buying homes in Canada. Why? You can't rent out a million dollar home very easily. Houses are twice the cost in Canada vs the US. That ratio is even higher when compared to the SE United States. In addition, since the US per capita income is slightly higher, it decreases the desirability of the Canadian housing market vs the US.
i want to add that people are going to Texas as well because of bad policy's from other states. In other words they are running from socialism
Buyers agent commission should have component based on how much they can negotiate down from the market price CAUSE sellers agent commission is based on how much higher they can sell for. THAT WILL BE A FAIR GAME. COME BE A SPORTS MEN AND PLAY FAIR GAME.
Haven’t seen him on TV for a while - it looks like he’s aged 15 years since 2022 🤣
Buying a $10M home with a broker is easier than investing $10k with a broker. 🤯
Interesting times. Let’s see what happens… 😊
Sell private. It’s definitely not rocket science what realtors do. 😂
And lawyers do all the paper work. It drives me nuts how much real estate agents charge
Lol. Love the comments in here. Literally easiest money ever made, make way too much money, yet, if it was really that easy, why aren't you all successful realtors?
Right, nearly 90% of agents fail.
Easy right
Cuz a lot of us have morals and we are not crooks, how can you justify getting paid that much for being an usher nowadays. You guys are disgusting
Either way, when a transaction happens with a realtor, they are over paid. I figured it out once on one of my properties, and the agent maybe did 10 hours worth of work, tops. Him and his agency took $40K from my sale! I would be okay with 10K … maybe a little less
I think you forget that not all the money goes to the agent. Brokerage takes a %. Real estate board has membership fees and insurance they charge. I'm sure the ones who sell volume make money. But you also probably didn't factor in their ads that's why you called them.
@andrewp1981 I am an agent. I was replying sarcastically. But you're right. I have a team of 23 people. My margins are thin. I invest a lot in operations, office space, coaching for my agents, and advertising. Plus, we pay the brokerage for compliance and insurance. Everything costs money. Plus, people forget that realtors need to make a profit, too. Like, do you want us to make no money to feed our families and put clothes on their backs?
We also spent many hours with clients showing houses and investing money to put listings up, and the clients changed their minds. 10,000s of thousands in lost time and actual money serving clients that don't end up buying or selling. People are so easy to judge.
I wouldn't expect you to go to your work and not get paid, but we do it all the time. The real estate business is about risk and reward. High risk, medium tip. That's why most don't make it.
@@andrewp1981 no matter how you look at it, it is way to much money for commission. Someone sells a house for a $1million and they have to give up $50,000.00 to the realtor etc? Nah. Most people don’t even make $50K in a year here in Canada. As for me calling the agent, it was someone I knew and used in the past. I never referenced any ads from realtors.