Thanks for explaining it, I just read about it today in the news! I always use a buyer's agent. My last purchase the house was listed as a block home, which was an absolute must for me, but the DAY before the closing when getting insurance, I discovered it was a frame house. Without a buyer's agent I would have probably been screwed. I was able to cancel the transaction and I got my deposit back. I've purchased a few properties and investment units, GET A BUYER'S AGENT!
Okay, this cleared it up well. As a buyer, it’s always up to me to determine that I won’t buy a home where there isn’t a seller covering the buyer’s agent commission. Generally that’s that approach I’d take. I’d just not make an offer on a home where the seller isn’t covering the buyer’s agent commission. However, the possibility still exists where the deal my agent and I can make on a property may be sufficiently attractive that it would offset the commission I would then have to cover for my buyer agent. I’m cool with that.
Your last piece played out recently for one of my clients. I got them to pay my commission, if the house appraised at a certain amount, in order to beat out two cash offers on a property. They put a little less down and the seller netted an additional 3%. The appraisal came back $15k over which more than justified my commission earned. My client never once complained about paying my commission because they know they wouldn’t have gotten the property otherwise.
@@PalmBeachesPaulit comes through in your videos that you’re one of the good ones who has your client’s best interests in mind. What do they say about defendants who represent themselves in court; they have a fool for a client. I’d always have a buyer’s agent to represent me; it’s only the details that need to be worked out on any given transaction.
Paul, love your videos. Here is a quick story regarding RE brokers that happened to me as I was retiring and moving back to Florida. I was located in a suburb of north Dallas Texas. Mega-Broker had the market for RE locked up. I listed my home with a small broker-45 days later and two price drops, no sale. Listed with another broker-not Mega-Broker-and half way through that 45 day contract I had a lady pull up to my curb while I was outside, and she was with Mega-Broker. She looked at me and said, " You know you will never sell this house right?" I knew then what the deal was. At the end of the contract I listed with Mega-Broker. They priced my house at a high price that I could not believe. Within four days I had five offers and two over asking price. Was that corruption? Yes, yes and yes! I had to play their game or they would continue to bad mouth my house and it would have never sold.
Your WORTH is what you bring to the table. This decision is great. Maybe now ex McDonald’s employees will be pushed out. Just like all other industries, or maybe go work for the USPS . If you are capable then you will survive. If being a lawyer is so bad then go to school for 8+ years. Then you can actually charge for your time. Wish you the best.
I'm currently sitting with six listings and soon to be eight and just put an offer on a condo for buyers who signed the buyers broker agreement guaranteeing my commission. So I'm gonna do just fine but others will suffer.
Basically some of us really do just need someone to open the door. But at 65, I am very experienced with the process. Many people are not. So as usual the lawyers from the bottom feeder class action A H and the "we're from the gov@t and we're here to help" have made things even a bigger mess. Oh I don't think any of us implied that a title company is going to show you a house, call inspectors etc. I like your channel but come on.
@horatio1886build I appreciate your comment and watching. That remark about "just opening doors" was for all the idiots out there who think we dont do anything for our commissions. Some agents are lazy and do nothing and they don't last.
There is a minor issue nobody has raised. And that’s the cost basis of your new home, which will come into effect when you, years down the road, sell it and pay taxes on the profits. When the seller pays the buyer’s agent commission the cost of that commission is factored into the price the seller accepts for the property. And that sets the property price a little higher, which then becomes the cost basis for the buyer. But when the buyer pays the buyer’s agent commission, assuming all things being equal, he would presumably have offered a little less for the property in order to cover the commission he has to pay. But in this case, he pays the same amount out of pocket at closing, but his cost basis on the property is lower, meaning his profits on it, and the taxes on those profits, when he eventually sells the house years later, will be higher. It’s not a big amount, but it is an effect of this change.
Sir. Yes it was a monopoly. It was never negotiable. A buyer had no choice. Agents would only show high fee properties. Maybe a few agents are ethical but you cannot fight the system. It’s time for nominal fees on the selling side and buying side (buyer’s selling agent actually do more work).
lol the loan officer, what a joke... lets finance the buyer agent's commission over 30 years by rolling it into the loan so the buyer pays 10k to the agent PLUS 10k to the lender over the next 30 years at 5% interest, and the market is at 6.875 currently, yeah that will fly. the lenders would LOVE it, f the agent in the weeds doing the work and the lender gets it instead. the buyers will love it also everytime they make a mortgage payment. hey buy a smaller house then you want so you can pay the buyer commission... also that will fly with the buyers, not. i see docu signing "this new buyer agreement" form at the showing or even before anything happens going something like the usual x% comp to buyer agent paid by seller at closing like it is now, or 50% of all agents are out of a job and the ones that remain do twice the work for the same pay as before....
They should earn a flat fee no more % just like sellers never had to pay a buyers agents commission sellers and buyers never had to pay a % commission could always have been a flat fee take it or leave it if you want to stay in real estate you will take it.
Thanks for your videos. I have been looking for a second home in West Palm for a while. I know the community I want to be in and will be reaching out when I see a home that meets my requirements.
Sir. Yes it was a monopoly. It was never negotiable. A buyer had no choice. Agents would only show high fee properties. Maybe a few agents are ethical but you cannot fight the system. It’s time for nominal fees on the selling side and buying side (buyer’s selling agent actually do more work).
Sorry but you're wrong .They were always negotiable and buyers were never paying a commission, it was always paid from the seller to the listing broker and that broker shared it with the buyers broker. As far as realtors only taking people to higher commissions, well that kind of behavior goes the same for police, doctors, lawyers, teachers, politicians, priest, car mechanics you name it the. Remember I guarantee you I've been effed over by car mechanics multiple times and I didn't know it because I'm not a mechanic. so they should all be put on a fixed fee, it doesn't matter if it's a transmission or battery change it's $800
There is always homes and there has always been plenty of people purchased a home without the buyers broker and gotten a tremendously better deal. Please don’t scare anybody. We don’t need any agents that receives 6% anyway even that has always been negotiated and was paid only one percent to the sellers agent even years ago before this. So everything is done by negotiation and no, you do not need a broker at all and it’s better not to buy directly from the owner lawyers do charge by an hour. You don’t need more than one hour. This is how it’s done in Europe maximum you’ll pay $500-$1000, and get done with you on the commission and you pocket that money and live happily ever after
You never need a broker or a buyers agent. You always need a real estate attorney when purchasing a property. 😊 because brokers are never to be trusted and they don’t know anything anyways so you don’t need them. You can negotiate one percent or a half a percent with the sellers broker however make sure you have protection by having an attorney maybe give them $500 or. $1000.00 maximum to make sure everything is done right and correctly.
10:58 you don’t want to say it so I will. The ones vilifying realtors have no idea how difficult this industry it is. 87% of realtors fail in the first 5 years. This is a commission only sales job and on average it takes a new agent 6 months to sell their first home. Most people can’t go 6 months without a paycheck and bail or find another way to make money (flipping, leasing, property management, etc). The 13% that do make it work their tails off to build a successful business. Yes, that’s what this is. We’re building businesses. We are 1099 contractors so we don’t have 401k’s, benefits or healthcare paid by our employers. The general public also doesn’t realize that a considerable amount of our commission goes to our brokers. Splits range from 60/40, 70/30. 80/20, etc. We’re taking home far less than 3% when you tack on the 20-30% we pay in taxes due to being 1099 commission only contractors. Then why would anyone choose this industry? Well, for me, I enjoy being my own boss. I know that I work harder than 90% of the agents in my market and will be rewarded because of that. The relationships that I’ve made doing this are so important to me I love the thrill of negotiating. It’s not for everyone but I thoroughly enjoy what I do and it gives me a sense of purpose unlike any other career I’ve ever had.
Maybe so but that would eliminate a huge portion of homebuyers who are typically your first time buyers with little to no money and 3 1/2% gives some that opportunity to get into the homeownership build equity and then make the next purchase with 20% down
I am originally from Bulgaria, Eastern Europe. Recently, I inherited a condo. I met with a local real estate agent to help me sell it. I was surprised that in opposite if the US in Bulgaria - the seller pays their agent and the buyer pays their agent. I thought it is very confusing. I like the US way. Or what used to be the US way, When the commission comes from the seller and it is distributed at both agents at closing. I guess we have to wait and see how it will work in the US.
SHOULD REALTORS EARN A COMMISSION OR A FLAT FEE?
Thanks for explaining it, I just read about it today in the news! I always use a buyer's agent. My last purchase the house was listed as a block home, which was an absolute must for me, but the DAY before the closing when getting insurance, I discovered it was a frame house. Without a buyer's agent I would have probably been screwed. I was able to cancel the transaction and I got my deposit back. I've purchased a few properties and investment units, GET A BUYER'S AGENT!
Okay, this cleared it up well.
As a buyer, it’s always up to me to determine that I won’t buy a home where there isn’t a seller covering the buyer’s agent commission. Generally that’s that approach I’d take. I’d just not make an offer on a home where the seller isn’t covering the buyer’s agent commission.
However, the possibility still exists where the deal my agent and I can make on a property may be sufficiently attractive that it would offset the commission I would then have to cover for my buyer agent. I’m cool with that.
Your last piece played out recently for one of my clients. I got them to pay my commission, if the house appraised at a certain amount, in order to beat out two cash offers on a property. They put a little less down and the seller netted an additional 3%. The appraisal came back $15k over which more than justified my commission earned. My client never once complained about paying my commission because they know they wouldn’t have gotten the property otherwise.
@carlwithacamera thx buddy, I appreciate your constent support of my channel over the years. Sending you positive vibes 🤙
@@PalmBeachesPaulit comes through in your videos that you’re one of the good ones who has your client’s best interests in mind. What do they say about defendants who represent themselves in court; they have a fool for a client. I’d always have a buyer’s agent to represent me; it’s only the details that need to be worked out on any given transaction.
Paul, love your videos. Here is a quick story regarding RE brokers that happened to me as I was retiring and moving back to Florida. I was located in a suburb of north Dallas Texas. Mega-Broker had the market for RE locked up. I listed my home with a small broker-45 days later and two price drops, no sale. Listed with another broker-not Mega-Broker-and half way through that 45 day contract I had a lady pull up to my curb while I was outside, and she was with Mega-Broker. She looked at me and said, " You know you will never sell this house right?" I knew then what the deal was. At the end of the contract I listed with Mega-Broker. They priced my house at a high price that I could not believe. Within four days I had five offers and two over asking price. Was that corruption? Yes, yes and yes! I had to play their game or they would continue to bad mouth my house and it would have never sold.
Your WORTH is what you bring to the table. This decision is great. Maybe now ex McDonald’s employees will be pushed out. Just like all other industries, or maybe go work for the USPS . If you are capable then you will survive. If being a lawyer is so bad then go to school for 8+ years. Then you can actually charge for your time. Wish you the best.
I'm currently sitting with six listings and soon to be eight and just put an offer on a condo for buyers who signed the buyers broker agreement guaranteeing my commission. So I'm gonna do just fine but others will suffer.
Basically some of us really do just need someone to open the door. But at 65, I am very experienced with the process. Many people are not. So as usual the lawyers from the bottom feeder class action A H and the "we're from the gov@t and we're here to help" have made things even a bigger mess. Oh I don't think any of us implied that a title company is going to show you a house, call inspectors etc. I like your channel but come on.
@horatio1886build I appreciate your comment and watching. That remark about "just opening doors" was for all the idiots out there who think we dont do anything for our commissions. Some agents are lazy and do nothing and they don't last.
There is a minor issue nobody has raised. And that’s the cost basis of your new home, which will come into effect when you, years down the road, sell it and pay taxes on the profits.
When the seller pays the buyer’s agent commission the cost of that commission is factored into the price the seller accepts for the property. And that sets the property price a little higher, which then becomes the cost basis for the buyer.
But when the buyer pays the buyer’s agent commission, assuming all things being equal, he would presumably have offered a little less for the property in order to cover the commission he has to pay. But in this case, he pays the same amount out of pocket at closing, but his cost basis on the property is lower, meaning his profits on it, and the taxes on those profits, when he eventually sells the house years later, will be higher. It’s not a big amount, but it is an effect of this change.
Sir. Yes it was a monopoly. It was never negotiable. A buyer had no choice. Agents would only show high fee properties. Maybe a few agents are ethical but you cannot fight the system. It’s time for nominal fees on the selling side and buying side (buyer’s selling agent actually do more work).
lol the loan officer, what a joke... lets finance the buyer agent's commission over 30 years by rolling it into the loan so the buyer pays 10k to the agent PLUS 10k to the lender over the next 30 years at 5% interest, and the market is at 6.875 currently, yeah that will fly. the lenders would LOVE it, f the agent in the weeds doing the work and the lender gets it instead. the buyers will love it also everytime they make a mortgage payment. hey buy a smaller house then you want so you can pay the buyer commission... also that will fly with the buyers, not. i see docu signing "this new buyer agreement" form at the showing or even before anything happens going something like the usual x% comp to buyer agent paid by seller at closing like it is now, or 50% of all agents are out of a job and the ones that remain do twice the work for the same pay as before....
They should earn a flat fee no more % just like sellers never had to pay a buyers agents commission sellers and buyers never had to pay a % commission could always have been a flat fee take it or leave it if you want to stay in real estate you will take it.
Thanks for your videos. I have been looking for a second home in West Palm for a while. I know the community I want to be in and will be reaching out when I see a home that meets my requirements.
Thx Joe. All my contact information is listed when you're ready to reach out to me.
Sir. Yes it was a monopoly. It was never negotiable. A buyer had no choice. Agents would only show high fee properties. Maybe a few agents are ethical but you cannot fight the system. It’s time for nominal fees on the selling side and buying side (buyer’s selling agent actually do more work).
Sorry but you're wrong .They were always negotiable and buyers were never paying a commission, it was always paid from the seller to the listing broker and that broker shared it with the buyers broker. As far as realtors only taking people to higher commissions, well that kind of behavior goes the same for police, doctors, lawyers, teachers, politicians, priest, car mechanics you name it the. Remember I guarantee you I've been effed over by car mechanics multiple times and I didn't know it because I'm not a mechanic. so they should all be put on a fixed fee, it doesn't matter if it's a transmission or battery change it's $800
👍👍👍
There is always homes and there has always been plenty of people purchased a home without the buyers broker and gotten a tremendously better deal. Please don’t scare anybody. We don’t need any agents that receives 6% anyway even that has always been negotiated and was paid only one percent to the sellers agent even years ago before this. So everything is done by negotiation and no, you do not need a broker at all and it’s better not to buy directly from the owner lawyers do charge by an hour. You don’t need more than one hour. This is how it’s done in Europe maximum you’ll pay $500-$1000, and get done with you on the commission and you pocket that money and live happily ever after
You never need a broker or a buyers agent. You always need a real estate attorney when purchasing a property. 😊 because brokers are never to be trusted and they don’t know anything anyways so you don’t need them. You can negotiate one percent or a half a percent with the sellers broker however make sure you have protection by having an attorney maybe give them $500 or. $1000.00 maximum to make sure everything is done right and correctly.
10:58 you don’t want to say it so I will. The ones vilifying realtors have no idea how difficult this industry it is. 87% of realtors fail in the first 5 years. This is a commission only sales job and on average it takes a new agent 6 months to sell their first home. Most people can’t go 6 months without a paycheck and bail or find another way to make money (flipping, leasing, property management, etc). The 13% that do make it work their tails off to build a successful business. Yes, that’s what this is. We’re building businesses. We are 1099 contractors so we don’t have 401k’s, benefits or healthcare paid by our employers. The general public also doesn’t realize that a considerable amount of our commission goes to our brokers. Splits range from 60/40, 70/30. 80/20, etc. We’re taking home far less than 3% when you tack on the 20-30% we pay in taxes due to being 1099 commission only contractors. Then why would anyone choose this industry? Well, for me, I enjoy being my own boss. I know that I work harder than 90% of the agents in my market and will be rewarded because of that. The relationships that I’ve made doing this are so important to me I love the thrill of negotiating. It’s not for everyone but I thoroughly enjoy what I do and it gives me a sense of purpose unlike any other career I’ve ever had.
thx sir. Its not a job for everyone thats for sure.
Nobody should be buying homes with only 3% down, in my opinion. Should be 20% minimum.
Maybe so but that would eliminate a huge portion of homebuyers who are typically your first time buyers with little to no money and 3 1/2% gives some that opportunity to get into the homeownership build equity and then make the next purchase with 20% down
@@PalmBeachesPaul not everyone is meant to own😀. I’d like to live in a mansion in Beverly Hills, but I must understand my lot in life.
Good morning Paul Happy Sunday!!
Morning!
I am originally from Bulgaria, Eastern Europe.
Recently, I inherited a condo.
I met with a local real estate agent to help me sell it.
I was surprised that in opposite if the US in Bulgaria - the seller pays their agent and the buyer pays their agent. I thought it is very confusing. I like the US way.
Or what used to be the US way,
When the commission comes from the seller and it is distributed at both agents at closing.
I guess we have to wait and see how it will work in the US.
I don't think you would make it as a waiter. You cry too much!
😂
@@PalmBeachesPaulYou mean 😢😭