MAJOR changes you should know when buying and selling a home | NAR Settlement 2024
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- Опубликовано: 12 окт 2024
- Starting July 2024, realtor compensation is going to change, making each party in a home sale pay for their own representation. While this will sound like a huge savings for sellers, its going to cost the home buyers more. In this video, we are going to talk about what this change means how it impacts, sellers and buyers and what to expect.
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To be quite honest Buyers Agents were WILDLY OVERPAID! The majority of their expense was putting gas in their car and showing clients around. Typically your client wants to put in a offer on the first 3 houses. One day of actual work gets them 3% is and always has been CRAZY! On the other hand listing agents have to market the house & deal with a home owner in all aspects of getting the home ready to sell.
My listing agent did nothing to get my home ready to sell, other than listing it in the MLS. How long does that take? An hour? And my agent didn't have to 'deal with me', as I was already on my way to my destination city. But, I agree with your WILDLY OVERPAID statement, except BOTH listing and buyer agents were WILDLY OVERPAID. This scheme that was designed by the big boys at NAR (National Association of Realtors) are probably still laughing at how successful this scheme was. 99% of agents still don't fully understand the rigged system, or they are pretending they don't.
In 2008, when I was shopping for my current home, I called the listing agent and asked if I could see my home without having to 'hire' a buyer's agent. The listing agent said, 'no', without explanation. I was desperate to get into a house in my new city, so I didn't ask for further explanation. I had suspected price fixing from this industry, as I had heard coworkers complaining about exorbitant agent fees, for decades. I remember getting off the phone and saying to myself, 'HOW DO THEY ENFORCE THIS?' At the time, I didn't know there was a corrupt organization known as NAR. I now know they enforce the corrupt scheme very simply: they make a rule that the seller pays the listing AND buyer agent fee. And force the buyer to 'hire' an agent, supposedly for FREE, which is a lie, as all fees end up in the sale price. This scheme led to the largest financial crime in U.S. history. Yeah, I'm upset about it.
I would have to say that a buyers agent does and should do alot more than just driving around and opening doors for clients. There are alot of negotiation, making sure that the buyer understand what they are getting themselves into, legal documents to make sure that the buyer is not getting into something they will regret in the future and so much more behind the scenes that most people do not see and hear about. I do know that not all Real estate agents are the same and I will have to agree that there are some that do the bare minimum.
Not to mention, the educational requirements to be an agent are nearly nil. They've been able to charge heart surgeon rates, for decades. Heart surgeons have to go to school for years, followed by residency, put themselves in extreme debt and put up with insurance companies, along with risk of getting sued when a patient dies.
In my state of Texas, agents can be a high school dropout. The training requirements are 15 days of training and passing a single test. It's my understanding that this training is mostly geared towards teaching agents how to avoid litigation (ironically).
Thankfully, this rigged system has finally been exposed by our courts. The Missouri juror's GUILTY verdict was a unanimous vote.
@@larryjones9773 Dude in California I literally studied for 3 days and took the exam and easily passed. The Broker exam was a bit harder but the basic Real Estate Salespersons license was easy to get. There were people in the office who would refer to a lot of agents as “idiot agents” because so many of them do not know wtf they are doing, but are racking in commissions which in my opinion is them sticking their hands in the home owners pockets. Glad things are changing
@@jaymeez The illegal price fixing scheme was simple, yet brilliant.
Warren Buffett's Berkshire Hathaway has 455,000 agents. I'm sure Warren fully understands how this scheme works. You would think a billionaire, at some point, would start feeling guilty about stealing money from America's homeowners. But, apparently not. It's not like Warren needs more money. He already has more money than he'd ever need and he's 94 years old.
Why you need a buyer agent? Do you need a buyer agent to buy a washer and dryer? all the buyers can buy a house by themselves because they know what kind of house they want to buy. The seller also can use flat fee agent to listing property for sale.
Because buying a home is one of the biggest investments you will ever make and is nothing like spending a couple hundred dollars on a washer and dryer and actually you would probably ask the people at the store for advice on which to buy snd why. Buying a home is expensive and you do not want to get into something thats not a good investment for you and your family. There are lots of disclosures you should understand, understanding what the comps are so you are not over paying, negotiating to make sure you are not spending too much and the loan process is a whole other thing, making sure there is no liens on your home and that issues are disclosed by the seller in case any big issues come up. Its not just about finding a house you like.
@@livinginnortherncalifornia Attorneys check to see if there are liens on a home. Agents don't have that skill. Accountants handle the closing. Agents don't have that skill. Professional appraisers handle appraisals. Agents don't have that skill.
Homes sell themselves. Agents open doors. Landian's $49 door opener fee is a fair price. Paying an agent thousands of dollars to open a door is silly.
Traditional Realtors are worthless in this new environment.
I took six years of woodworking in junior high & high school. I also worked a couple summers during college as a home builder. Most agents don't know a 2X4 from a jigsaw.
Getting a Realtor title takes no special skill other than paying $$$ to their cartel leader (NAR), each year. They gotta keep the Mob Boss happy. NAR used this money to pay off Washington politicians to keep the rigged system in place. It worked, for years, until now.
New home builders are 'saying' they'll pay for the buyer's agent, but I guarantee you they will accept offers from unrepresented buyers, if the 'net' offer (price less $0 agent fee) is higher than the other offers.
I'll be selling my home in a couple years and I will be doing the same as new home builders. I'll broadcast that I'll pay for buyer agent fees, in order to get more prospective buyers. But, like the new home builders, I'll accept the unrepresented buyer offer, if it is higher than the represented buyer offers.
Bottom line: unrepresented buyers will have an advantage. Represented buyers who hire an 18 year old agent at a cheap fee will have an advantage over buyers who have signed a buyer/agent contract, for a 3% fee.
Conclusion: Agent fees will plunge lower. They have been illegally and enormously inflated for decades. I predict a 75% fee reduction, within a year. Our free market will decide agent fees from now on. My prediction is just speculation. The rest of the world gets along just fine with very few buyer agents. I'm sure America can as well.
Best of luck with that plan
Sellers will accept the offer that provides them the most money (offer price less buyer agent fee). Thus, buyers are incentivized to be unrepresented or sign a buyer/agent contract with an agent who agrees to a low fee.
You are correct, it all comes down to the sellers net but one of way of looking at this is there are going to be alot of buyers that want and need representation, as a seller who choses not to offer this concession for agent commissions could potentially lose a good amount of buyers who are able to purchase your home because they cannot afford to pay for their buyers agent which could result your home to sit on the market longer which leads to drop in sales price.
@@livinginnortherncalifornia As I said below, 'I'll broadcast that I'll pay for buyer agent fees, in order to get more prospective buyers.'
Landian provides for a much cheaper method of buying a home. I plan to buy in California in two years. I plan to be an unrepresented buyer (no buyer's agent). My offers will be more appealing to sellers since they won't have to pay a fee for my non-existent buyer's agent. If listing agents are unavailable to show me homes I'm interested in, I'll pay Landian's $49 door opening fee, for each home I'm interested in touring. Josh Sitzer (named plaintiff in Sitzer/Burnett v. NAR et al) is a co-founder of Landian. I'm a class member in this Missouri case. I sold my Missouri home in 2019, and I've been following this litigation closely. I'll be submitting my claim for this lawsuit in a couple months. I knew agent fees were illegally rigged, but I still had to pay the exorbitant agent fees, as this lawsuit wasn't settled until 2023.
Sorry to hear about your experience and unfortunately you should have been informed that commissions are negotiable on all sides.
@@livinginnortherncalifornia I knew commissions were negotiable. In order to avoid steering, I had to pay the higher fee.
Agents are unindicted co-conspirators in the largest financial crime in U.S. history.
@@livinginnortherncalifornia I knew agent fees were negotiable, but I decided to pay the higher fee to avoid the rampant steering that your industry participated in. The new, unrigged process, will discourage steering, which will drive agent fees downward.
Under the old rules, I'm sure you were reluctant to show a home to a prospective buyer, if your fee was lower than other homes. You discriminated against that home seller. That was the essence of the last five years of litigation. You were operating in an illegal cartel, whether you knew it or not.
Your cartel leader (NAR) encourages agents to say that commissions are negotiable, which you are complying with. It's true that agent fees have been negotiable MINIMALLY. The average under the rigged system was 5.5%, which is WILDLY INFLATED. You will now have to participate in an unrigged process, just like every other industry has to.
An Australian broker testified at trial and explained their unrigged process. He was shocked at America's rigged pricing. He said, 'do you guys not have the Internet?'. The Internet replaced buyer agents throughout the world. This didn't occur in the U.S., due to the rigged process. Buyer agents should have gone extinct like travel agents did, once we had access to the Internet. Do you remember using a travel agent?
@@larryjones9773Actually while some agents may have been reluctant to show lower paid commission homes, we have never avoided any. Like I mentioned, not all Realtors are the same.
@@livinginnortherncalifornia Many documented cases of steering were presented at trial. It's only human nature to show homes that pay the buyer agent a higher fee. The system was rigged by the big boys at NAR.
You've already mentioned that under the new process that you'll recommend that sellers offer to pay the buyer agent's fee, in order to get more prospective buyers. That's a form of steering. Other sellers that
don't realize they should do this, will be discriminated against.
I suspect that nearly all agents were involved in steering in the rigged process, which is why the discount brokers couldn't compete and would be forced out of business.
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