National Association of Realtors Settlement Explained-Audra Lambert 2024
Рет қаралды 24,253
3 ай бұрынWhat exactly is the real estate settlement all about? Realtor's Perspective!
This video explains the new proposed changes that may come about through the National Association of Realtor's proposed Settlement. This is my opinion and experience so far.
Looking to interview realtors in your area? I can connect you to a few in your area! Just fill out this this information in the link below and we will coordinate a few agents for you to interview:
lambert.homes/referral
What not to say to a Contractor video:
• Never Say this to a Ge...
Interview Questions to ask a Listing agent (top 13 Questions):
lambert.homes/questions-to-ask
Video on interviewing a listing agent: • Interview Questions fo...
Interview Questions to ask a Buyer's Agent (Check List):
lambert.homes/buyer-agent-que...
Video on interviewing a Buyer's agent:
• Questions To Ask Your ...
Showing a property video:
• Tips for Showing a Pro...
Staging your home Checklist:
lambert.homes/staging-checklist
Avoid a Bad Home Inspection Checklist:
lambertgrouphomes.com/home-in...
Showing a property video:
• Tips for Showing a Pro...
💰 HOME VALUATION: hmbt.co/TaWy3g
If you are considering moving or selling your property in Orange County, don’t hesitate in reaching out to me.
For more information visit www.LambertGroupHomes.com or give me a call at (949) 697-2232
💁♀️ My name is Audra Lambert. I am a realtor in Orange County, California. I have over 20 years experience! I lived in this area most of my life. I love what I do and Love where I live! Please reach out to me with any of your questions.
🔍 WATCH NEXT:
What shows up in a home inspection report: • Fix these items to avo...
What not to fix when selling a home: • Selling a house? Don't...
Prepare your home for Sale: • Get Your Home Ready To...
This is not legal advice, nor can I give you legal advice Sorry! Everything here is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Nothing here should be construed to form and attorney client relationship. Audra Lambert with the Lambert Group does not render or offer to render personalized investment advice, tax advice, or real estate investment advice. The information provided is for informational purposes only.
CONTACT INFO
Audra Lambert, Lambert Group Homes
📞 949.697.2232
💌 Audra@LambertGroupHomes.com
🖥 www. LambertGroupHomes.com
👉🏾 DRE#01909872
👋 LET’S CONNECT
Like me on Facebook: / audra.lambert1
Follow me on Instagram: lambertaudra
🧡 Subscribe to my youtube channel: / @audralambert
#CARealEstate #CARealtor #CARealEstateAgent #Realtor #Homeownership #House #Homebuyers #Mortgage #San Juan Capistrano #SanJuanCapistranoRealtor #SJCrealtor #OrangeCounty #LivinginSanJuanCapistrano #MovingtoOC #audralambert #movingtosanjuancapistrano #toprealtorinSanJuan
@kortyEdna825 Ай бұрын
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
@carssimplified2195 Ай бұрын
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
@brucemichelle5689. Ай бұрын
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.
@NicholasHarmon-ow3jl Ай бұрын
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
@brucemichelle5689. Ай бұрын
My CFA ’’Colleen Rose Mccaffery’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@NicholasHarmon-ow3jl Ай бұрын
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Colleen.
@alanfaber1261 3 ай бұрын
I asked my buyers agent how the settlement would affect things. She said the lawsuit was Totally bogus, commissions have always been totally negotiable. Later, in the conversation, I asked her what she would accept in terms of compensation. She said she was instructed by her broker, not to accept anything less than 2.5% For the buyers agent commission. So much for “totally negotiable”!
@alejandrorubio4707 3 ай бұрын
Those are thier terms. Some say 3%. Find another agent that is willing to go lower...
@AudraLambert 3 ай бұрын
Ugh..okay..no..that's not how it works now. So sorry to hear that! Hence the reason for the lawsuit.
@andreavandekleut6379 3 ай бұрын
dcrop her and represent yourself nad ask the seller for a " finders fee" ( of 2.5%) or WALK,.
@alanfaber1261 3 ай бұрын
@@andreavandekleut6379 I thought about representing myself, but the reality is that not all of us have the knowledge or the personality to represent ourselves in such an important transaction.
@mdzmdz7329 3 ай бұрын
Agents the majority are really immoral. The max charges should be no more than 1 percent. Mas 1.5 period. The buyer has to set the tone not the Agent. There are thousands who will take the 1% gladly. My broker sd BS is just that bs. Also never let the selling agent also be able to be the buying agent. I had a nightmare agent who held my property hostage until she could be both. Dirty and so corrupt. If you do your homework u don't need a agent. Seek a real estate attorney its cheaper.
@cobrabtc 3 ай бұрын
Can’t tell you how many times I sold my home or bought a home and were told that the 6% commission was mandatory! Non negotiable! And as a seller if I didn’t pay that amount, I wouldn’t be able to sell my house! Finally some adults in the room and the laws are changing.
@AudraLambert 3 ай бұрын
Yes, I can't agree more. That should have never been communicated to you in that way. Commissions have always been negotiable...unfortunately a lot people were told otherwise. So sorry:(
@reneec.venegas6560 3 ай бұрын
Some offices have minimal commission their brokers allow them to accept. I happen to only work with brokers that allow me to set my own commission. You as the seller can pass on an agent that you feel is charging too high. I've had some sellers pay the buyer agent a higher commission than I received because they wanted to give the buyer an incentive to bring a buyer to them. I'm fine with that as long as I am satisfied with what I'm making! I feel the seller should pay, because without the buyer NO ONE WILL GET PAID! The sellers are the ones making the profit and the buyers are the ones paying more for their house than the seller paid to make that profit. Guess what buyers! Now you're on the hook to pay more for the house, pay for your own agent or do the work of an agent to do it yourself without the knowledge of a trained and licensed agent! I think the buyer is the real loser. Who will want to be a buyers agent now. There will end up being a shortage. They will be interviewing you and will work with you only if you pay the commission they want otherwise you can't preview the houses! You will also be financially obligated to the agent via the contract. Sellers will not be giving concessions to buyers. They get greedy! In a sellers market, they will pick the buyer who is willing to pay 100% of commission to their buyers agent! It is a bad new law!
@deborahculbertson578 2 ай бұрын
I’ve bought and sold over 40 homes. I would negotiate a 5% total commission on the sold. If the buyers agent was not getting 3% or at least 2.5% they would not show the property to their Buyer and steer them to a house they could make more! This new law is better for sellers!
@ThisIsTheMajor Ай бұрын
@@AudraLambert Yes, commissions have always been negotiable. It is simply not true that this has always been widely known by the buying public and eagerly disclosed by agents/brokers as they are now asserting. Do you tell all of your buyers at any point before writing a contract or after one is accepted that the co-broke commission you're being paid can be reduced?
@craigguffin7018 28 күн бұрын
If you are building a home do you negotiate the price or do you get quotes from different builders? Once you settle on a builder do you tell the builder how much you're willing to "allow" them to pay the company that digs the hole, or the plumber that lays the pipe etc...?
@BobbieJeanM 3 ай бұрын
This is interesting and somewhat confusing because 20 years ago when I bought my house I was “required” to sign an agreement and told the commission percentage was basically nonnegotiable because all agents charged the same. I was also told not to offer anything lower than the asking price because it was such a hot market. To be fair that was at the beginning of the crazy market when lending institutions were basically throwing money at people and that didn’t work out so well for them and many buyers. It was also the only house that I had found, yes I, because I drove by it, saw the new sign in the yard and called my agent. I don’t remember now if I wrote a separate check or how it was paid. I was a single woman on the higher end of middle age and had never bought a house or been involved in the purchase of a house before. I don’t lie and trusted others to be honest too, especially if they were supposed to be working for me and on my behalf. It turned out to be a valuable and expensive lesson in several ways and one I haven’t forgotten.
@WakeupAmerica777 3 ай бұрын
Learned this expensive lesson myself with my neighbor of 25 years who is a Realtor. Since I was not married (divorced) she told me I couldn’t bring anyone with me to sign the documents and to trust her. I ended up paying her $43,000 or 6% on the sale of my home. She did everything possible to let me know she was the boss and knew better than me. I sold my home but was left homeless living in hotel’s for months. I’m still trying to heal from it. Don’t punish yourself for the past. Learn and move forward. Blessings to you!
@AudraLambert 3 ай бұрын
Ugh...again...hate hearing this. That should have NEVER happened. So sorry to hear about your experience:(
@DailyStalkerUpdate 3 ай бұрын
"I was “required” to sign an agreement and told the commission percentage was basically nonnegotiable because all agents charged the same." A business has a right to make their own policy requiring you to sign documents before they work for you. You have the right to refuse, and they will tell you goodbye. The brokerage is free to negotiate, that doesn't mean that they HAVE to. You have the right to keep shopping around for another agent. "I was also told not to offer anything lower than the asking price because it was such a hot market." This is ADVICE. You as a buyer have the absolute right to offer below asking if you wish. The agent isn't your boss. Some agents will tell you this to coerce you into submitting an offer which is likely to get accepted so that they get paid. In many cases they're trying to close a deal, not save you money.
@tonimurray2865 3 ай бұрын
The agent that had been referred to me wanted me to sign the documents before he could work with me. I did not do that on the spot as he would’ve liked. I’m not the smartest tool in the shed and I am just thankful that I read and reread until I understood it and told him goodbye.
@Myopiniononly313 3 ай бұрын
Agents are overpaid. Most buyers have already found their home,research the market, assessed rates, and know what they want. Agents process paper work and makes 5-6% of the value of an overpriced home. Maybe agents earned commission in the 70’s and 80’s but technology has changed everything and that earned commission doesn’t amount to the work agents are putting in.
@AudraLambert 3 ай бұрын
I hear ya perspective...and you aren't wrong in some situations. There are agents that earn every penny of their commission....a lot do not. I always suggest any seller to interview at least 3 agents before hiring anyone (do research)...and negotiate commission/structures. As a home owner, you can always sell your house FSBO. I would just understand the pros and cons of doing so.
@jaccole 13 күн бұрын
So true. The owner/broker used to be the listing agent obtaining comps by doing days of research at City Hall, the showing agent, the selling and closing agent. Now we have the internet with all that info at our fingertips. The owner/broker, listing agent, showing agent and selling/closing agent are all separate agents with a buyer’s agent thrown in and they all want a full months paycheck for doing 1/4 of the work. Biggest rip off “profession” (I use that word lightly), basically well-dressed pretty people pushing contracts across the table.
@nataliedigiovanni4863 11 күн бұрын
Agree i dislike realtors more than attorneys. Services should be offered ala cart. Work done by agent should also be documented.
@mikefults3149 3 ай бұрын
Been following this story for a week or so. This is the best breakdown and explanation I have heard. Thanks for sharing your thoughts and knowledge on this subject.
@AudraLambert 3 ай бұрын
You are so very welcome. Appreciate your kind words. Means a lot.
@BigGodLife 8 күн бұрын
I think I got bamboozled, I signed in a rush, an agreement 6% for 6 mos. I ended up splitting the property acres and sold the raw land but not house acres. I questioned the way the buyers agent got paid and she said she split her commission with the buyers agent. I asked didn't the buyer pay for her own agents commission and she said no, she was paying from her commission. So 3% each. I didn't know all of this three months ago, my fault. I do now! I'm thinking of taking my home off market and renting. Thanks for the awesome content, I'm learning a lot!
@mscervantesg 15 күн бұрын
Hi Audra, very nicely explained. There is a lot of confusion and fear with agents and misinformation with the public in general! Thanks much! I am a Realtor in NW Arkansas
@theGHSV 3 ай бұрын
Another great quote in this video at 10:57 mark… “The buyer and seller are finally aware that they can negotiate those commissions. Ok, it’s kinda always been a secret thing.” You are literally admitting that the ability to negotiate commissions was kinda kept secret from the buyer and seller. That was a major premise of the lawsuit and you just said that it occurred. Crazy.
@ashdav9980 3 ай бұрын
Give her a minute and she will remove your comment.
@seanm3226 3 ай бұрын
Perhaps people who weren’t aware that agent commissions have ALWAYS been negotiable shouldn’t be involved in real estate at all.
@AudraLambert 3 ай бұрын
OKAY...as I stated in my video, the buyer's agent did not need to disclose to the buyer in the past what commission they were making...it wasn't a requirement. Now buyer agent commissions are published on most real estate websites. I have always been upfront with my sellers regarding why I charge what I do for my services. Where the commission game became a problem is some agents would tell their prospective clients that commissions were set (these agents were very upfront about that statement). What I think most seller's didn't know is that they could negotiate their commission...they assumed it was a set amount. That's where the problem lies.
@theGHSV 3 ай бұрын
@@AudraLambertThank you for your response. We are in agreement that one of the most egregious practices occurred when listing agents were presenting to their seller clients that the commission was set and not negotiable. I think this will be a learning experience for everyone.
@maddierosemusic 3 ай бұрын
If you are just a sheep and don't try and negotiate everything including brokers' fees, that's on you. If it's $10 mil property you are buying, don't you think there's wiggle room? Yes. $60k property? No fat on that bone.
@Danapizzarelli 3 ай бұрын
Perfect simplified explanation. I’m not sure why everyone thinks the sky is falling.
@AudraLambert 3 ай бұрын
I think a lot of consumers are really angry about paying high commission to agents that didn't serve them well. I don't think this settlement is going to devastate our industry. However, if you are readying the comments on this video..WOWZIE! We have angry consumers. I do think the industry should do a better job of producing high quality, professional agents. Really appreciate your comment.
@mikedv7954 3 ай бұрын
Useful information. Thanks!
@AudraLambert 3 ай бұрын
Thank you..glad you got some value. Appreciate the comment.
@jazzyflorida3757 3 ай бұрын
Looking forward to paying 2% max in the future for selling any home. With online mls agents have not done much for me in my last 5 home purchases. Other than setting up a mls automatic emails. I did that myself with online searches, and would tell the realtor let’s see these homes. And I have been a better negotiator than the realtors that are usually talking to each other behind the scenes. There are lots of unethical realtors out there, just like any other profession.
@AudraLambert 3 ай бұрын
I hear ya...unfortunately you're not wrong. There are a lot of good realtors out there. You just got to find them. You may want to watch this video I did on do I really need buyer's agents: kzfaq.info/get/bejne/jLR8p9uhra2yhGw.htmlsi=lEDp1hVhiEpo5a3Z. If you are going to represent yourself, you may get some helpful tips.
@georgiahamilton4346 3 ай бұрын
I'm in CA, if you have time you may want to get your license it's super easy only 3 classes and you take a test. Most community colleges offer these classes. You will save yourself a lot of money, even if the only transaction is your own home. You can hire a real estate photographer, hire someone to paint the house and a stager for next to nothing in what you will pay in commissions.
@jaccole 2 ай бұрын
@@AudraLambert Even the “good realtors” are only worth 1.5-2% total commission. Never the 5-6%. If they want the whole commission then they are going to have to work for it; Listing, Selling and Closing agent on the whole transaction. If they only want to do part of the transaction, then they only get a percentage of the 1.5-2% total commission. Going forward I see brokerages will try to keep the whole transaction in their brokerage and not piece meal it out to other brokerages. Keep all the commissions in-house.
@tammyrussell-rice5508 3 ай бұрын
What I find ironic about this whole thing is that ultimately ALL of the money is coming from the Buyer in the first place?! The Seller is not actually paying anything. All closing costs, including transfer fees, commissions, etc are subtracted from the money paid by the BUYER! Tomato, tomauto!
@AudraLambert 3 ай бұрын
Laughing...great perspective. Tomato, tomauto!
@mariahurtado5864 2 ай бұрын
Agreed! Seller makes money, sellers agent makes money, buyers agent makes money… BUYER owes money that paid the rest…?
@ThisIsTheMajor Ай бұрын
Great post. Partially tomato/tomauto, partially tomato/watermelon. What is disingenuous is that brokers/agents claim that sellers AND buyers have always known that commissions are negotiable. Partially true. Most sellers know this. But buyers agents almost never tell their buyers that they can negotiate their commissions down. Audra is clearly a top tier agent of the highest caliber. But I've asked her if she tells her buyers that her commission is negotiable. If so, has she done so since she's had her license? And does she do so with every buyer? She doesn't respond.
@anaverran3040 3 ай бұрын
Thank you for addressing this topic.
@AudraLambert 3 ай бұрын
Of course!!!
@bobwilliams3502 3 ай бұрын
@@AudraLambert does the buyer really need his or her own realtor/agent and if so, can the sellers agent also be the buyers agent? And if that is the case, what are the pitfalls for the buyer? Thanks for your time.
@AudraLambert 3 ай бұрын
@@bobwilliams3502 Hi Bob, every state is different regarding dual agency (listing agent representing both the buyer and seller). You may want to watch this video on the topic: kzfaq.info/get/bejne/laeDn9JmvZrQcZ8.htmlsi=UTXfIVntYYHme8BJ. The problem with the buyer not having representation is that they do not have the forms and the knowledge to complete the transaction. I will reduce my commission if I represent both the buyer and seller. It makes it financially beneficial for the seller...and the buyer is directed through the process with the correct representation/guidance. Thanks for your question.
@DJohnson-od6oj 3 ай бұрын
Great video and unique perspective.
@AudraLambert 3 ай бұрын
Ahh..thanks for your comment. I appreciate it.
@sunnyday3539 3 ай бұрын
Audra, you make fantastic videos! Thank you for the information you provide. My husband and I are planning to list our home within the next two months. We interviewed a couple different realtors three weeks ago. I just had a Zoom call with one of them, and asked whether it would be possible to offer a "negotiable" buyer's agent commission (in other words, when the buyer makes an offer on the house, we'll let them specify what percentage should be paid to their agent). The realtor told me they no longer are interested in working with us as clients and practically hung up on us!
@AudraLambert 3 ай бұрын
Well, it sounds like you shouldn't hire that agent...lol! The answer of course is YES you can. A lot of the agents out there are still adjusting to the changes. You'll find the right agent for you...they will work with you. Its good you are weeding out the bad ones. Best of luck to you...you'll do great. Thanks for watching my videos.
@kathymartin2306 2 ай бұрын
thanks for the break- down
@AudraLambert 2 ай бұрын
You are so very welcome!
@DeeKumarOnline 3 ай бұрын
Great video. I think these potential changes will also encourage buyers to consider taking a real estate class/get licensed. Not only can you represent yourself or "refer yourself" and earn a commission if you have a real estate license, but they'll also be able to follow along with the transaction more confidently so they can feel confident with the process.
@AudraLambert 3 ай бұрын
Hello there! Buying a house sounds easy....but its the details that are very important. I would just do your due diligence...make sure you know what you are buying and signing. Most people do not. Best of luck to you.
@SA-qk8uh 3 ай бұрын
Not every buyer need buyers agent. Almost anyone can go to mls and look for homes in their desired area and see the sold houses data to compare. So buyers can save a lot of money.seller don’t need listing agent bcz they can put their own property on mls on a nominal fee. Looks like another mafia is going Down.
@billfly2186 3 ай бұрын
Then you better hire an attorney for the transaction. There's a lot legalities involved.
@Asmrfoodshorts 3 ай бұрын
You don’t have access to MLS without a licence and there’s many liabilities to do it on your own but go ahead. Good luck!
@SA-qk8uh 3 ай бұрын
@@billfly2186 there is always an attorney involved. The RE lawyer
@timnasseh4838 3 ай бұрын
@@SA-qk8uhnot in Florida
@steveearnshaw5426 3 ай бұрын
Every state is different. Real estate agents are governed by state statutes and administrative rules. Additionally, the mls’s have specific rules, and brokerage firms have different policies and practices. No two agents are alike. They have different levels of experience and background before becoming agents. Some specialize with different types of properties or specific neighborhoods. Now the buyers will paying their own brokers. My best advice is to interview three brokers. Be prepared with specific questions. A professional broker will also want to be a good match with you.
@johnborges5938 18 күн бұрын
Excellent explanation of how we got here. Ultimately having the buyer, who in the end, let's face it, is putting up the cash to pay for everything in the sale, have transparent bargaining power over their own agent should make for a more efficient marketplace, but no doubt that will take some time. I can imagine at some point in the future a buyer will pay a base amount to their agent whether they ultimately make a purchase or not, which seems fair given the amount of time and energy agents must put into the search.
@johnborges5938 18 күн бұрын
I should add here: I really love how smart and accessible this channel's explanatory videos are.
@roderickthomas3690 3 ай бұрын
I really like how you explained this
@AudraLambert 3 ай бұрын
Oh good, I am glad!!
@Ellis1127 3 ай бұрын
Great information! We are prepping our home to get on the market in April once we do some interviews!
@AudraLambert 3 ай бұрын
Great news!! You'll do great!! Keep me posted on those interviews!!
@kaystinebrink1220 3 ай бұрын
Thanks. I've been waiting for your take on the changes.
@AudraLambert 3 ай бұрын
You are so very welcome...thanks for waiting:)
@kaystinebrink1220 3 ай бұрын
@@AudraLambert You explanation is the only one I'm letting my husband watch. We are putting our home on the market in April.
@HodgeChris Ай бұрын
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
@Pamela.jess.245 Ай бұрын
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
@PatrickFitzgerald-cx6io Ай бұрын
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
@KaurKhangura Ай бұрын
This is huge! think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.
@PatrickFitzgerald-cx6io Ай бұрын
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
@KaurKhangura Ай бұрын
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
@valeriewright9250 3 ай бұрын
Audra, Thanks for your take on what is going on. I do think that we will see many part time agents leave the profession. This is probably a good thing and could be an opportunity for other agents to have more volume. What I would like to see as a seller is more agents listing services ala carte….like photography, staging, private showings and open houses etc. I’m not in this field, but in labor/legal issues with HR. My husband and I understand all the processes to buy and sell real estate. We have been on both sides with and without agents, but we do always use our real estate attorney. I think that all involved in the transaction should know all the fees, commissions, and or concessions. Do you have any opinions that you would like to share about the necessary contract with a buyers agent? Since it seems that they will no longer be compensated at the closing table, what if their buyer/client fails to pay them? Does the brokerage sue the buyer/client for the money? How will selling agents handle open house going forward? I think that this solves some problems and maybe creates different problems. 😂
@AudraLambert 3 ай бұрын
You make very good points. To be honest, we are working out the details every day. In the California Real Estate Buyer Broker form, the buyer and buyer's agent can decide how they are paid. We have escrow in California so the payment can be processed through escrow. If the buyer does not agree to pay the commission through escrow, its a trust thing. The contracts are always between the Broker and the principle. The broker would go after the buyer's agent if they refused to pay. It does create different problems. I am sure that the listing agents would have a blank buyer/broker forms available to fill out for buyers who want to make offer on the house who do not have representation. I bet you will see a lot of hard copy buyer/broker agreements out there using ink not Docusign. Nuts!
@ThisIsTheMajor 3 ай бұрын
Audra, at 3:00, not sure about all states, but brokers have never been required to be part of an MLS. But they ARE required to be a member of the NAR to have access to the MLS, the data of which is given away the Zillows of the industry. Brilliant move! And why are commissions commensurate with property values for the agent services that are virtually identical for all residential properties? Using the example: $500k vs $5m property/$30,000 vs $300,000 total commissions respectively. What precisely are the agents doing differently to justify the additional $270,000 commission? Are there that many more documents? Does the escrow process cost more for the agents? Are they driving 10k+ miles to show homes?
@AudraLambert 3 ай бұрын
Hello there. YOU ARE RIGHT...thanks for catching that!! Brokers are (proposed )not required to be members of NAR. Ugh..sorry about that. The premise behind commissions are based off of sale price is a few things: risk and liability is greater. It usually takes longer for higher priced home to sell than lower priced homes (more work)...except for the last 3 years lol. The homes I sell have have a broad price range $750k-$4m. The higher priced homes require a heck of a lot more prep, attention, knowledge and skill. NO LOCKBOX on higher priced homes. Higher priced home sellers usually will pay a higher fee for the highest quality realtor. Marketing materials and exposure is also more expensive. Also, the concession amounts on higher priced homes is usually greater than on lower priced homes (agents throw in commissions to assist with the transaction...no always, I know).
@johnhaller5851 3 ай бұрын
One other part driving a percentage is that in areas with $5m homes, the cost of everything is higher. The office will have higher rent or property taxes, accountants will be more expensive, and yes, Realtors will be more expensive. Do you want a Realtor who has always lived in apartments giving you advice on a $5 million purchase or sale? The Realtor may not be living in a $5 million house, but there probably are not any $300,000 houses anywhere in the area. To interest people to become and contribute bring a Realtor living in representative housing of the area, it has to be worth their time, as opposed to other occupations. You see what Audra is wearing, I doubt her clients would be impressed in the latest fashion found at Target. I'm not saying that the relationship is necessarily linear, but there will be a higher cost to get a quality Realtor in a higher cost of living area.
@ThisIsTheMajor 3 ай бұрын
@@AudraLambertThanks for your response. I respectfully disagree with you on some issues: Risks and liability are not greater. Liability costs are fixed for an agent, limited to their brokers deductible. Brokers costs are fixed, limited to their E & O insurance premiums. But liability is zero if they do their jobs correctly. Off the top of my head I can't think of another industry in which the clients agree to spend huge sums of money in part because there's a possibility that their highest quality realtor might screw something up terribly. Longer to sell? More work? The principles of marketing properties in all price ranges are the same. And the vast majority of marketing is done automatically. You're not spending $20k-$30k on marketing materials and exposure. And you're certainly not stomping the pavement everyday marketing your listings. Most days are spent passively waiting for a showing request from the same digital exposure. Homes sold through anything other than this exposure are rare. Then at some point the seller offers a concession or price reduction if the property lingers. This exists in all price ranges. "Heck of a lot more prep, knowledge, attention, skill?" Those are assertions to justify inflated dollar value on commissions. Every moderately competent agent has the same skill sets for their respective markets. But you're doing nothing groundbreaking nor remarkable in yours. Explaining to the sellers how to prepare their homes takes less than a day. Let's call it two 8-hour days. Then most of the actual preparation is done by others. No lockbox? Fair enough. But driving to show your listing doesn't require a lot of skill or time to justify an additional $270k in my example. Concession amounts are usually greater because valuing custom homes is extremely subjective. You convince sellers their homes are valued at e.g. $5m. But if it doesn't sell they lower the price $200k-$300k. Doesn't seem to say much about the valuation skill sets of those same highest quality realtors you alluded to. Tradition is the only reason agents and brokers are defending the archaic commission structure. Now that buyers and sellers are educated on how the industry works, they're realizing they have other options. But the luxury market will likely not be affected nearly as much as homes in the lower value markets. The industry has been agent/broker centric for decades and is in need of changing. How it will end up is anyones guess. Appreciate you taking the time.
@georgiahamilton4346 3 ай бұрын
Yes, I live in Silicon Valley, I think you don't really need an agent here, but you need access to the MLS which you can't get without a license. People here generally know the value of the house based on location and school district. Agents are grossly overpaid for what they do in the Bay Area@@ThisIsTheMajor
@RG-cz1tc 3 ай бұрын
@@johnhaller5851 Well that is interesting, but remember that your medical doctor or surgeon gets paid about the same by Medicare whether they live in Newport Beach or Omaha, the cost of living adjustments are minimal. So yes the realtor who lives in an expensive area has higher costs but also enjoys that high end community and sells houses for commissions that require effort but how much more effort?
@luckylouwho1372 3 ай бұрын
I've been watching your videos because we want to list our house here in Colorado soon. I like the way you explain stuff 😊 Thanks
@AudraLambert 3 ай бұрын
Oh wow...thank you! Best of luck to you selling in Colorado. You'll do great!
@zanzibarspice 3 ай бұрын
I had an agent (friend) many years ago say in a booming market, “I don’t negotiate my commission because there’s high demand for my services.” Then when the market went down he said that times were tough and he wouldn’t lower rates because he need the money (paraphrasing). Sure seemed fishy to me. I was too young to know better then. And still, having lived in Silicon Valley with outrageous housing costs, the realtors didn’t have to negotiate. Sigh.
@audiophileman7047 3 ай бұрын
If they see that you'll walk away from a signing with them, they'll lower their commission rate. I saw it happen when we interviewed three agents and sold a condo in San Jose near Milpitas way back in 1997. When we told one agent that we were going with somebody else, he offered a commission reduction to win us back. Please keep in mind that this was at a time when the market in north San Jose was very hot. We received a massive amount of offers and sold it to the highest bidder.
@AudraLambert 3 ай бұрын
Oh wow...that's a good one. Commissions have always been negotiable. Its a shame that the consumers felt they were set. Not cool.
@therealestateexpertonline 3 ай бұрын
buyer agent agreements were introduced in 1994.I remember trying to get the buyer to sign it before taking them out to show property. Most would cut and run out the door.
@AudraLambert 3 ай бұрын
Yes, I agree. Well now they can't if the settlement gets approved. Listing agents may require to see a buyer/broker agreement before showing a property.
@tdixon8377 3 ай бұрын
Love all your videos Audra. Thank you for all the information. As a buyer, if I choose to go directly to the seller’s agent and not utilize as Buyers Agent, will I need to sign the Buyers Agreement with the listing brokerage? If so, will they charge fees? Thanks again for all the effort you put into your videos….and you are Funny 🙂
@AudraLambert 3 ай бұрын
Glad you think I am funny!!! Yes, you would need to sign a buyer/broker agreement if you went directly to the listing agent..BUT...you could negotiated the commissions with them. I always write into my listing contract that if I represent both sides of a transaction, I reduce my commission by 1% or more depending on the price of the home. I let the buyer's know my agreement with the seller if they wanted to use me as their buyer representation...the commission would then be processed through the transaction. Hope that help.
@redhatbear1135 3 ай бұрын
In the mid 80s as a buyer I managed to buy a house, with a realtor I already knew, where I paid at least my part of the commission. It was investment property and I was able to write them off and lower the price. I was assuming a loan. My settlement attorney was impressed he never had seen that done. He note it saved taxes as well as commission dollars too!
@AudraLambert 3 ай бұрын
Love it!! Well done!!
@ClearThinking101 3 ай бұрын
Seller concessions are limited by mortgage program LTV... example; 95% LTV conforming is limited to 3% seller concessions, which is not enough for commission & closing costs.
@AudraLambert 3 ай бұрын
Well, typically its 2% limit for investors...and can go up to 6% or more depending on LTVs. Remember, we are talking ONLY about the buyer's agent commission being processes through concession amounts. A 2%-6% concession amount for just the buyer is A LOT!! You also don't know if those limits might increase (new limits established by government eventually) now that concessions may increase due to this change. You could always take the concession out of the price if both seller and buyer agree.
@ClearThinking101 3 ай бұрын
@@AudraLambert nay, agencies (fannie, freddie, HUD) won't allow higher seller concession because it will increase sale price, then it is a dollar for a dollar. Most loan program under 90% LTV only allows 3% seller concession to cover all closing costs. (Buyer commission, escrow, title, etc) I do have the solution for it, but I can't share it with you!
@loanofficerwhocares6951 3 ай бұрын
With Fha the seller can give up to 6% seller credits. keep up the good work @AudraLambert
@ClearThinking101 3 ай бұрын
@loanofficerwhocares6951 3.5% is used for a buydown on FHA loans, plus loan amounts are too low for the OC housing market.
@ClearThinking101 2 ай бұрын
Judges deny plaintiffs’ request to consolidate commission lawsuits The Multidistrict Litigation panel denied the request on Friday, but they did not rule out the possibility of consolidating in the future
@jennifershevin5588 3 ай бұрын
Audra, you are fabulous. I've been a mortgage LO for over 20 years. Big difference between commission and concession for buyer. Seller concessions are limited by program and LTV so if a large chunk is going for commission, that may not leave enough for fixed and % closing costs. Please realize that if you are in a lower priced market than CA, it makes a difference % wise. 3% of $350,000 is very different than 3% of $2,000,000. Also changing the price to cover commission affects appraisal and down payment requirements, and the buyer, who requires a mortgage, doesn't get the funds required to pay the commission out of pocket. You end up with a higher priced home with potentially higher insurance and property taxes. Unless you are a cash buyer or have deep pockets, you are not benefitting from paying a higher price to have your commissions paid. Additionally, many agents are required to charge a brokerage fee on top of commission for both sides, which drive buyers and sellers crazy when they see the CD and they are listed below the sales commission. Basic insult to injury. BTW, go easy on the mortgage industry. Just like in RE, there are good ones and bad. I can't tell you how many times I had to train RE agents or deal with non-compliant clients.
@AudraLambert 3 ай бұрын
Hi Jennifer, thanks for you comment. Trust me there are some great lenders and realtors out there. My beef with the lending industry is that the loan officer really can't effect the loan approval process...but most consumers think they can. Its the underwriting department who makes those decisions. I just finally closed on a transaction for a buyer where the lender was making all these unrealistic promises...of course they did not have the authority to do so. The day of closing, the lender couldn't close. Buyers were in a moving truck for a week. Good gracious. The requirements/restrictions on loans are getting tougher and tougher....and I still can't believe it takes 17 days for receive loan approval with conditions...and you still don't know if those conditions are going to get approved. You never know if a loan is going to fund until it does. That's no fault of the loan officer...just the process. Regarding the Concessions, I would bet the guidelines would have to increase regarding concession limits. There are going to be a lot of changes across various industries who are related to real estate. I do agree with the LTV values being tighter on a lower valued home. Really appreciate your comment!! Thanks for sharing. your perspective.
@stephanie7351 3 ай бұрын
Thank you for explaining this to us so clearly. Your breakdown is the best I have heard. I'm so glad I subscribed. 😊
@AudraLambert 3 ай бұрын
Well, thank you Stephanie. I appreciate you subscribing...and glad you are getting value out of my video. :)
@389293912 3 ай бұрын
Is it legal to tell my buyer agent, "your commission is 1/2 of what you negotiate off the house listed price". Now the buyer agent can point out flaws in the property to convince the seller to lower the price, "Now that the failing septic system is known, you can't pretend you didn't know about it if you try to get another buyer. You need to lower the price to compensate the buyer for repairs"
@AudraLambert 3 ай бұрын
Hello there, remember the buyer's agent doesn't work for you. The buyer's agent works for the buyer. When you are giving a commission (posting on MLS) to the buyer's agent (currently) you as the seller do not get to negotiate the commission with the buyer's agent. Now you can put no commission in MLS and try to negotiate with the buyer...however, the seller and the buyer's agent don't negotiate. You could always offer a concession amount to the buyer and tell the buyer this is all I am giving you to cover repairs and your commissions. That is the way it looks to be trending.
@zachgreen4486 3 ай бұрын
Thank you for simplifying and breaking everything down and getting straight to the point !
@AudraLambert 3 ай бұрын
So glad you like it. Happy to help. Appreciate your comemnt.
@angiehiga4086 Ай бұрын
Mahalo for explaining
@mikehoyt7592 3 ай бұрын
I recently bought a house. My wife haunted Zillow for weeks, only once was our Agent available to show the houses, mostly we just drove by or met the Sellers agents. We found one we liked, our Agent was not available except to give me the number of the escrow company. There was a little back and forth over the inspection, all handled by email. We closed without our Agent ever having seen the property. For which I presume she got 3%. Not sure how much liability I'm really incurring as the buyer, but since I have to hire the Inspector, and the Escrow Company, and my wife is doing the heavy looking .... what exactly do I need a Buyers Agent for at all? Or if I do need one to walk me through the process I'd a lot rather pay by the hour then a percentage of the purchase. I suspect there will soon be Buyers agents or Lawyers who are willing to do that
@AudraLambert 3 ай бұрын
Hi Mike...first off, so sorry to hear about your experience. That is just awful!! I am primarily a listing agent. I can't tell you how many times I am doing the buyer's agents duties (because they aren't available or showing up). Often times, I don't even meet the buyer's agent. Now that is not the norm..but it does happen. There are a lot of changes out there right now. You get to negotiate the commission with your buyer. You can negotiate a base fee, hourly fee, a commission fee. A good buyer's agent is worth their weight in gold. Sounds like you weren't working with one.
@EmEmEm579 3 ай бұрын
Hi , Mike , I have same experience like you . I found the house on Redfin , went there to see multiple houses during the house hunting time . Agent never go with me . We found the house , close transaction in a month . They got easily 3 percent which was 50k at that time 😅 I don’t understand why. All they did was to help us put in an offer 😱
@AudraLambert 3 ай бұрын
@@EmEmEm579 Remember, Redfin's agents are employees. They do not make commissions they may make some bonuses. You get what you pay for sometimes. Zillow can take up to 40% of their agent's commission. I am not a huge fan of Zillow and Redfin agents...only because they don't manage their business like a real business...they are running their business like they are employees...just showing up...looking at their app...following their marching orders. I am not saying their aren't good Zillow/Redfin agents out there...but if they are good, why are they working for another company who is gauging their commission. I don't get it. Most the on line agents from these types of companies are meeting their buyers at the property for the first time. Drives me nuts. I would highly suggest you interview 3 buyers agents before selecting one. Its important.
@EmEmEm579 3 ай бұрын
@@AudraLambert Hi, Audra, actually I wasn't working with a redfin or Zillow agent. I was unable to interview one. I was force to work with a "relative /friend". They know you are buying and want to represent you. But all they care about is to make quick money not truly helping you. . I closed two house in two month . We put offer in in one week . minimum work being done, agent walked away with big bucks (About 70 to 80k in commission). The house had so many issue (It past inspection but a whole underground 10ft pipe missing!) I was so angry. Agent don't care, they got the money and moved on to next transaction .... Thanks for listening ...
@AudraLambert 3 ай бұрын
@@EmEmEm579 Oh..that's just terrible. I am also not a fan of hiring a relative/friend. Creates way too much drama.Truly sorry for your experience. That is a lot of money in commissions...did they offer to pay for the whole underground 10ft pipe that was missing? If not, I'd ask. That is not cool!! Always good to hire a pro...and order that sewer line inspection. Ugh. So sorry.
@worldoftone 3 ай бұрын
Gonna push up the sell date of my place a bit to avoid this lunacy. I don't mind paying the commissions
@AudraLambert 3 ай бұрын
Great agents make the transaction run smooth and offer great service.
@thnksno 3 ай бұрын
We've used a buyers agent 3 times. The first 2 times, I was surprised they even made $500 off the deal. WE did all the legwork. The 3rd time we did as well. No buyer's agent found the property. However, the third time is a charm. Our agent got us access ahead of showing and helped us undercut the best offer. Could I have done the same myself? Probably. But who cares, the seller was paying. However, this new ruling. Maybe, finally, As a future seller of property #2. I'll get the benefit of a lower commission.
@AudraLambert 3 ай бұрын
Thanks for sharing. Commissions aren't set...they are negotiable...even today. There are some great realtors out there...and some not so much. The realtors that negotiate down their commission too quickly may do the same when it comes to selling your home...or may not negotiate enough on the purchase side. Really be selective on who you hire...it really does matter. OR find someone who will do it cheap and you can tell them what so say...lol.
@EmilyOlson-sw9ii 2 ай бұрын
Most of my buyers barely have funds for closing costs on top of the purchase price. My main concern is if a listing doesn't offer a concession, my buyers cant afford to pay me even if we agree on a very inexpensive buyers agent commission. What are your thoughts on buyers having no funds in this business? Just followed and subscribed to you! Love how you teach and educate people!
@audiophileman7047 3 ай бұрын
This is an excellent explanation of this commission issue that has now become a part of legal contention. As you intimated, we mustn't lose sight of where the money for the transaction comes from and how it will be distributed. I like the term "concession in escrow" you used, because that really tells you where the action takes place. Selection of a really good escrow company is extremely important, but the escrow instructions to be carried out are drawn from the purchase agreement. Pay special attention to the purchase agreement and be certain you can live with its terms. I fully expect a flood of sellers and buyers who will think they now have the power by court order to low ball agents on commissions. That would be a big mistake. Understanding how to arrive at a fair commission for all parties involved in the sale for services provided must be the goal. Have you done a video on how to choose an escrow company and what are fair fees for an escrow company?
@AudraLambert 3 ай бұрын
Okay..you get 5 stars for that comment. COULD NOT AGREE MORE WITH YOUR STATEMENT! Well said. Thank you!! I have not done a video on how to select escrow companies...its on my list. That is a very very good topic as well. Really appreciate your comment.
@audiophileman7047 3 ай бұрын
You're welcome! I always enjoy watching your videos, Audra. You get me to think. I look forward to your next video, be it on escrow companies or something else.👍👍👍 @@AudraLambert
@reneec.venegas6560 3 ай бұрын
Keep in mind, the buyer and seller has a right to pick their own escrow, however, it will be costly to each if they are different escrow companies. Again, a buyers agent would help negotiate with the seller to use your escrow company! I think if I were a buyer, I'd look for the most experienced agents as opposed to the cheapest agents. Good luck getting rid of a bad agent, once you sign a contract. Most agents willing to work for below fair commission wages will be a challenging agent to work for. They will be focused on quantity and not quality!
@AudraLambert 3 ай бұрын
@@reneec.venegas6560 Great advice.
@bymilliebphotography8249 Ай бұрын
Firstly, Audra, you always do such an excellent job at explaining things! As Audra mentioned, the commission fee has always been negotiable. It was negotiable before the lawsuit, but unfortunately, so many realtors didn't explain things or are not fully transparent, and so many buyers don't do their homework and know their rights. At least now buyers will have more clarity, and buyer's agents will now have a buyer's agent agreement. Unfortunately, this means that some buyers who don't do their homework or ask the right questions will get stuck with bad agents for a while. I am wondering, with closing costs already being so high, and depending on the loan product, there is a limit (max %) as to how high seller concessions are allowed to be. Some buyers may have to dig deep into their pockets or consider using "gift funds" to help cover the buyer's realtor fee (new closing cost fee) that was not part of buyer's closing cost since before the NAR Settlement. I guess that's for the loan officer to figure out. I'm sure that we will all figure it out and adjust.
@AudraLambert Ай бұрын
Wow...couldn't have said it better myself. Apparently, realtors/brokers can advertise buyer's agent's commission on their business or personal websites...just not MLS. I am sure there will be some adjustments for the concessions amount. However, a seller can always reduce their price and have the buyer compensate their agent directly (if the concession amount. limits are reached)...after the property closes. There is a lot of risk for the buyer's agent not getting paid this way. I am sure "they" will figure it out. Appreciate your comment...you're a smart cookie too.
@CHASI146 3 ай бұрын
To put this in context , buyer actually pays all commission . Seller is just a collector of these commission and pass onto both agents . Lender will collect the closing cost to the remaining scavengers. If a buyer knows this game , he can easily win this game . Golden rule is not to fall in love with the home you buy and fix the price with seller back door and take on the agents
@johnd4348 3 ай бұрын
Really, the buy pays all the commissions. BS. 10 of thousands come off the top of the sells price everytime I have sold a home. Last time it was 28 K. Buyer did not pay that, I did.
@KAZHE63 3 ай бұрын
@@johnd4348it’s baked in your listing price
@arnkriegbaum 3 ай бұрын
@@johnd4348 by definition the the buyer pays 100% of the sale price. you don't have to sell at any reduced price unless you think that reduction is fair
@AudraLambert 3 ай бұрын
Uhh...I disagree. The listing agreement is very specific to the seller paying for commission on both sides if they want to. A buyer can fill out a buyer/broker agreement creating agreement with their representation as to the agreed upon fees...but historically, the seller is usually paying the fees (not always).
@WalkerOne 3 ай бұрын
Best explanation I have heard so far. I heard this settlement is only for 7 years, what happens after that?
@AudraLambert 3 ай бұрын
Thanks for the comment. The settlement is a 4 year payout. The terms of the settlement I believe are set in place moving forward. We are still in the settlement stages...lets see what happens in July.
@ladikmk 3 ай бұрын
Great explanation Audra! Thanks for sharing.
@AudraLambert 3 ай бұрын
You are so very welcome!!
@ericslee1328 3 ай бұрын
Excellent Audra! Well done! E🙂
@AudraLambert 3 ай бұрын
Thank you! Cheers!
@rioraton 2 ай бұрын
In my opinion this should have happened decades ago....why should the seller pay for everything. Buyer and seller should pay there own costs. Good explanation by the way.
@AudraLambert 2 ай бұрын
Ahhh...thanks! Glad you got some value out of the video. Thanks for watching.
@rioraton 2 ай бұрын
@@AudraLambert One other question comes to mind what if the buyer sees a for sale sign and calls the listing office does the buyer have to sign an agreement with the listing office to see the property? I am thinking yes under this new arrangement?
@chrishoermle2621 2 ай бұрын
Thank you so much for this video- i’m extremely interested in the part where you mention about MLS’s and no longer mandatory membership for brokers Can you please go into more detail on that?
@AudraLambert Ай бұрын
Yes! Brokers are not required to be a member of NAR...even today without the lawsuits even being finalized. I believe I said they don't have to be members of the MLS..which they don't today either. However, if the brokers are apart of NAR then they are covered under the settlement for any further lawsuits (if its settles). A broker doesn't have to be apart of MLS..but it a bit difficult to sell properties if you are not participating in MLS.
@sophiewu3691 2 ай бұрын
I can see how seller agents put work into selling a house. A seller agent’s best interest aligned with the seller’s. But if buyer agents commission is based on a percentage of the sales price, wouldn’t that be a conflict of interest to whom they represent?
@AudraLambert 2 ай бұрын
Great point! And yes, you are right. However, most buyer's agents aren't going to negotiate the sales price up just to get the highest commission possible...they are more concerned about just getting paid...even if its a bit less, they still would rather get paid. All realtor's don't get paid until they close a deal. Their motivation is to get paid! That also has a conflict of interest attached to it...indirectly.
@RG-cz1tc 3 ай бұрын
Hi Audra,a great video. I would like you to do a video explaining the mysterious role of the broker. Does the broker get half of the sellers' agent commission, are the sellers agents basically "serfs" of the broker? Why don't we just have real estate agents and real estate lawyers for transactions, what is the brokers' special talent here. I think a lawyer would be cheaper for the agent and the seller. Look forward to your comments on this. Why can't we have independent real estate agents without the broker?
@AudraLambert 3 ай бұрын
That is a GREAT question!! Realtors can get their own broker license. I don't because I don't want the liability or hassle. Most brokers take 20-30% of the agents commission. Zillow can take up to 40% of the agent's commission. The broker that I hang my license under is a flat fee broker where I get over 96% of my commission. My broker keeps me up on all the current changes/updates, they store my documents, and have a compliance center doing quality control on my files. They earn every penny of what I pay them. I have an amazing manager too. However, the bigger brand brokerage firms take a huge hunk of the agent's commission because they offer marketing programs, listing presentation, luxury branding campaigns, training, certifications, etc. Personally, I don't see the value in these types of brokerage houses...but a lot of people do. With the money I save using a flat fee brokerage, I invest my money into hiring my own marketing team. I run my business like a true business. Most agents don't and feel more comfortable having their broker's services behind them. The feel more confident walking into a listing presentation talking about their brokerage's programs. Not for me...I am selling my own services.
@RG-cz1tc 3 ай бұрын
@@AudraLambert That makes a lot of sense. Thanks!
@AudraLambert 3 ай бұрын
@@RG-cz1tc Glad you got some value!
@loanofficerwhocares6951 3 ай бұрын
Great explanation
@AudraLambert 3 ай бұрын
Glad it was helpful! Thanks for the comment:)
@CO-id8cy 3 ай бұрын
Great video From a VA buyer perspective, this seems like a bad outcome. Before this, the commission would most likely have been covered plus still get concession for closing costs or am I misunderstanding? Sachs Realty and Real Estate Mindset also good
@AudraLambert 3 ай бұрын
Yes, you are right. However, remember you can always negotiate with the seller concession amounts. Before it was very difficult to negotiate your buyer's agent's commission if you were buyer. Now you can hire a buyer's agent at whatever a buyer's agent is willing to be hired for. The seller concessions can assist with covering your buyer's commission and any additional repairs. If the seller isn't offering concessions, you can alway request it in the offer. If the seller won't work with you on your offer price and details...go find another house. The key to this settlement is negotiations are at play way more than they were before. Find a good agent who can negotiate for you.
@peterbedford2610 3 ай бұрын
If this gets sellers to keep more profit, perhaps it may help increase inventory?
@AudraLambert 3 ай бұрын
Perhaps...but I am never selling my house...I have a 3% mortgage rate. Most homeowner aren't selling because they love their mortgage rate...not necessarily because they can make more money. Heck, if they sell, their profits get eaten up from capital gains tax. Its a pity.
@tammyrussell-rice5508 3 ай бұрын
More likely, Buyers will make Offers for 3-percent less as a purchase price. 😅
@andreavandekleut6379 3 ай бұрын
so , If i represent myself , ( no buyers agent in the deal) . will the seller/ sellers agent now NOT show us any properties? i realize all things we need to do on our own. Bbut the main question is the same will the seller not show any properties now , eventhough we or I represent ourself? there is no law against being my own buyer representative, as far as i can remember.
@AudraLambert 3 ай бұрын
So the problem lies with how are you as the buyer going to make a formal offer? What contract are you going to write your offer on? If you just pull up a form on line and fill out a few blank spaces and present it to the seller, they may say NO WAY! I know I would. Your state's purchase agreements are solid. They are tried and true and have every provision thought of in their contracts. Even if you were to get ahold of one of these contracts (which usually has an agent's name at the bottom of the form), there are other forms that are required to close the transaction...which you do not have access to if you are not a realtor). You may find a seller that would entertain an offer like this...but if the seller has an agent they are working with, probably not. Only because you don't have the proper forms and knowledge on what those forms mean. There is literally about 100+ forms we fill out for the buyer and seller to protect each party. A buyer doesn't need to have representation...but the seller can refuse to work with you.
@caroltrenda1719 3 ай бұрын
Thank you so much for the 😊 education. I would hire you for sure. But not in CA.
@AudraLambert 3 ай бұрын
Ahhh...that is so nice. Thank you so m uch!!
@JeepdudeFL 3 ай бұрын
Who will enforce or control whether an Agent shows a home with or without a Buyer's Agency Agreement in place?
@AudraLambert 3 ай бұрын
EXACTLY!! They are still working out the details. I would assume the local real estate associations would be auditing the files. The brokers would also be required to document the buyer/broker agreements. Great question. Thanks for commenting.
@EliezerRivera 3 ай бұрын
There is a huge difference between commission/compensation to an agent and a concession to the buyer. In my opinion, while the seller is compensating the buyer's agent, there will always be issues. Hard pill to swallow, but at the end, buyers paying their own agents would fix many issues for buyers and also in the industry.
@AudraLambert 3 ай бұрын
Yes, true. My concern is that if the buyer is paying the buyer's agent directly what assurances are place to ensure the buyer's agent gets paid unless processed through the transaction. Its going to squirrelly. I do like the seller concessions to buyer...it gets rid of that dang repair request that I HATE!!
@arthurcwalina106 3 ай бұрын
agreed 100%
@AudraLambert 3 ай бұрын
Thanks Arthur!! Means a lot.
@organizer14 2 ай бұрын
What does it apply to eg homes, apartments, office Bldg s etc etc or just houses?
@AudraLambert 2 ай бұрын
The lawsuit is really addressing residential properties. If you are buying or selling homes (apartments, single family residence, condos etc) then the lawsuit applies. Its really disclosing that all commission are negotiable and are not fixed. Hope that helps.
@florencehendrick4781 3 ай бұрын
Yes, Audra, you are SUPERIOR indeed, with the HIGHEST ETHICS I've ever seen in this profession. I've seen realtors take buyers into a home and then just let them walk around un-escorted, never explaining anything....what a poor representation of an industry that deserves more professionalism. Not sure, just a feeling.....I think that here in Florida, there is an extremely tight-knit community within this profession.
@AudraLambert 3 ай бұрын
HI Flo, thank you so much for your kind comment. I do know there are a lot of tight. knit communities in some areas. Thanks for your continued support.
@lesliekrill1 3 ай бұрын
So if I am buying a new build home, do I have to pay a commission to the builder and to my agent who is representing me?
@AudraLambert 3 ай бұрын
No, usually new builders give the agents a "finder fee." You should be good:)
@tonimurray2865 3 ай бұрын
I’m so new to all of this. If I put my house for sale right now, will I be paying the buyer commission? Did that change in January and if so then my agent will only get around 3% unless I decide to make any concessions? Would it be beneficial to wait for a decision on this topic?
@Starfish2145 3 ай бұрын
I can answer that for you. None of these proposed changes will take affect until at least July. And this assumes that the proposed settlement is approved by the court. You should list your house now if you want to sell your house now. It is in your best interest to incentivize buyer agents to bring buyers to your house. You will get more offers and probably a higher price.
@AudraLambert 3 ай бұрын
Hello there! Great question. First off, you are not required to pay anyone anything unless you want to hire an agent to sell your home. You can sell your house yourself. Lots of people do it everyday. Just want to make that clear. If you decide to hire a listing agent, you will want to negotiate with them their listing fees..ask them what they are offering for their services. As a seller, you can offer a commission to the buyer's agent now..or not. If you do not offer a buyer's agent commission, the buyer may ask you to assist with their buyer's agent commission..you can always say no. The key here is you have the ability to negotiate. I wouldn't hold off on selling your home waiting for a settlement to clear. You never know what may or may not happen. If now makes sense for you to sell, then sell. Agent commissions aren't set...so I cannot tell you if 3% is the norm. However, I can tell you that a 3% listing commission is a lot...the listing agent should be doing a lot for a 3% commission...make sure you ask them what's included in their commission. Interview at list 3 agents for the job..you'll thank me later.
@johnhaller5851 3 ай бұрын
@@Starfish2145This is mostly bad advice. Buyers are finding the homes they want online, and they didn't particularly care how much their buyers broker is getting. How long would a buyers broker last when they decline to show an interested buyer a house because it only offers 2% to the buyers agent? Still, buyers are frequently strapped for cash and buying something at the top of what they can afford. To not offer some concession to those buyers will eliminate the people right at the edge of affordability, and people who can afford more are probably looking at more expensive houses. The buyer and their agent will need to have a serious discussion if a property offers a 2% concession, but they signed a 3% buyer's agent commission, and the buyer can't afford it. Will the buyer's agent drop their commission, or will they lose all of the commission if the deal doesn't go through. Or, the buyer could propose a 3% concession and leave it up to the seller to decide what to do. This is bound to make for difficult negotiations between buyer, seller, agents and brokers.
@JimenezFernando 3 ай бұрын
Beautiful !!! Informative video !!!! Thank you !!!!!
@AudraLambert 3 ай бұрын
You are so welcome. Glad you liked it.
@MichaelBrown-ny3et 2 ай бұрын
Sellers agent can open the door. My theory as to why this came about is due to bidding wars, cash buyers, and pricing average buyers out of the market. So, after bidding on 40 homes and no closed deal, buyers agents want to be paid whether there’s a deal or not. Hire an attorney. Now you’re legally represented.
@AudraLambert 2 ай бұрын
Well..I am not disagreeing with you...but what do attorneys know about real estate? I have sold and bought properties with attorneys as my clients...they had NO IDEA what they were doing...they honestly didn't really understand the contract either. Just something to think about.
@marvinyoung7545 3 ай бұрын
Will a buyer/broker agreement requirement limit viewings and deter bidding wars, multiple offers, and wasted time viewing properties? How does it affect open house?
@AudraLambert 3 ай бұрын
Well, we've been using this buyer/broker agreement since the beginning of the year. It doesn't appear to limit bidding wars, multiple offers etc. If I had to guess, at open houses the listing agent would have buyer/broker agreements printed out at an open house ready to fill out if a buyer wanted them to represent them in a sale. We are still navigating through the process.
@nancienordwick4169 3 ай бұрын
It was totally non negotiable 6% from the seller to pay both and it hurt.
@AudraLambert 3 ай бұрын
That's crazy...to be honest where I live, I have never heard a 6% commission. Not cool.
@power4things 3 ай бұрын
Virtually every major transaction among humans utilizes an agent of some kind, who deserves to be paid like anyone else for their services and knowledge. RE commissions were always negotiable, and for commercial and larger 7- and 8-figure home sales they usually are. Hardly anyone at the consumer level did because most people considered it a reasonable cost for the services received from your agent, and potential liability that realtors defend you from. But, everyone thinks your expertise should be free. I'm an engineering consultant, I know - no one wants to pay you for your work anymore. I think our national habit of handouts has helped create this culture and expectation.
@AudraLambert 3 ай бұрын
You make some very valid points. I do agree that people should be paid for their work/expertise. The issue with my business is that we have a lot of agents out there that aren't trained or have the knowledge to properly represent either party in a transaction. Most all realtors are independent contractors...meaning they are not employees of the broker. The broker can't require trainings and meetings to help educate their realtors. Its like herding cats for these brokers. Their is very little quality control in my business. There are some amazing agents out there too. Most the complaints from the consumers out there is they are paying a lot of money for not great service or guidance. Appreciate your comment.
@power4things 3 ай бұрын
@@AudraLambert As usual, Audra, you hit the nail on the head. So many amateur, side-hustle, hobby, "part-time" and just plain incompetent realtors out there, culling the herd will be good. The quality of service can hopefully improve when we remove these "how hard can it be?" guys. This "contractor" and "outsourcing" thing is so prevalent today, it's everywhere and completely removes real accountability in business. Good observation.
@jenniferbmendezful 3 ай бұрын
It may hurt the buyer in terms of concession credits limited by lender. Does that go up? If seller allows concession credit.
@AudraLambert 3 ай бұрын
The concession limits are rather high currently...also, the government may increase those limits due to the new changes. We are still is in the proposed stages. There is a lot of details that still needs to work out.
@user-yk7vp2qw4h 3 ай бұрын
This is amazing! How to be own on this list : Becauze my daugjters are planing on purchase a house' this is wonderful...
@AudraLambert 3 ай бұрын
Glad it was helpful!
@kevinleatherman8278 3 ай бұрын
The NAR Settlement requires Cooperating Broker Compensation to be off-MLS. Some states have multiple types of agency; not just Buyer Agency Compensation.
@AudraLambert 3 ай бұрын
Good to know about some states having multiple types of agency.
@gregkloe 3 ай бұрын
I'm confused. As a buyer, I have never paid any agent anything. The seller paid out any commissions to both the listing agent and the buyers agent if it was different. If am going to be forced to sign a contract and pay an agent to find me a house, I'll just work alone. This sounds like expenses that would be tough to calculate. I looked at 100 homex with my last purchase.
@mommom3172 3 ай бұрын
Doesn't this sound better for consumers? Thats what DOJ wants. 😂
@AudraLambert 3 ай бұрын
You got that right! I think a lot of buyers will take that same approach. Just remember dual agency isn't allowed in every state. You. may want to watch this video on the topic: kzfaq.info/get/bejne/laeDn9JmvZrQcZ8.htmlsi=UTXfIVntYYHme8BJ.
@florencehendrick4781 3 ай бұрын
Thank you again, I've been sharing this video #50MillionSubscribersStrong
@AudraLambert 3 ай бұрын
Thanks Flo!! I got your email. I will respond to it next. Good grief!!
@Detached_AZ 3 ай бұрын
So, if someone is out there today with a "Buyer's Agent" and are made to sign that agreement, agreeing to PAY the Buyer's Agent to represent them...I want to know wht happens on MY end as a seller of the property, who already agreed to pay their agent 3%.....In other words, how is my contract with my listing agent changed?
@AudraLambert 3 ай бұрын
Okay...remember this is just a proposed settlement so nothing has changed yet. If you already signed a listing agreement and your property is online with the commission amounts posted in MLS, you can always ask the listing agent to adjust the commission structure (there would need to be an addendum created). If you accepted an offer already, then the buyer's agent's commission is to be paid at the agreed upon amount. A buyer can always request the seller to offer concessions amounts to the buyer to cover certain costs: closing costs, repairs, commission. The seller doesn't have to agree..but the buyer can always go find another house. If you do not offer a commission to the buyer's agent, the buyer may request that you assist with covering their commissions via a concession agreement. Once again, you can always say no. The listing contract has not changed YET..but you can modify the terms in you are not under contract.
@DailyStalkerUpdate 3 ай бұрын
It may end up where there are concessions listed in the MLS "broker notes" which can be used to pay the buyer's agent, but there's another possibility. Up utill now, the only way a buyer's agent got paid was through escrow, and the fee was determined by the seller. This required buyer's agents to show countless homes for FREE, until there was an actual closed sale. Many "buyers" think nothing of wasting an agent's time looking at homes for fun, just to kill a weekend. I watched it happen selling my own house recently. I'd like to see a model evolve where buyer's agents charged per showing with maybe a 2% commission paid at closing by the buyer. That would kill off a lot of time-wasting fake buyers and also make sure that buyer's agents were never wasting their time showing homes to people who never end up actually buying.
@AudraLambert 3 ай бұрын
Great comment!! Really appreciate your perspective. You aren't wrong. I am primarily a listing agent. When I do take on buyers I let them know I am in the business of selling homes...not showing homes. If they are serious, then I will work for them and give it my all. If not, I am out. I am fortunate that I have earned the respect of my clients due to my past history/reputation in the business... but most agents don't. I can usually tell right away if someone is serious or not...its something I can read right away. Less experienced agents may not pick up on the non-serious buy signs...or may be in a position where they feel desperate and are hanging on to every last crumb. My recommendation for any agent out there is find the motivation of the buyer....its very telling.
@theowl3756 3 ай бұрын
I have never been a fan of real estate agents, But the Listing Agent is the one who should get a small flat fee for Listing and advertising. The listing agents put the property on MLS, and sit on their ass until the buyer agent sells the property..!!!.If there ever was a need for a fixed commision, it should be for Listing Agent.
@AudraLambert 3 ай бұрын
Laughing...not all agents are like that...but some are unfortunately. I can't remember the last time I have sat on butt as a listing agent. It really depends on who you are working with...I promise.
@phillB 3 ай бұрын
I am 65 years old and I have bought and sold six homes. From my perspective the only thing these realtors represent, buyers or sellers, is themselves. The quicker they can get that home moved, the sooner they canSpend time on a new transaction, that’s making more money. It seems to me that a 6% commission is ridiculous also. What do they do to earn 6%? A lot of them on driving around in Lincolns, BMWs, and Cadillacs. What does that tell you?
@AudraLambert 3 ай бұрын
Unfortunately, there is some truth to your statement. However, there are great agents out there that earn every bit of that commission. Unfortunately, there are a lot of agent out there that don't have the property education/skills earning commissions that are not in line with their performance.
@user-cd6zj9sx1t 2 ай бұрын
Thank you for this information. It is very helpful. As you said, transparency is the key in any transaction. I never quite understood why a seller paid the buyer's agent a commission when in essence the buyer's agent is working against them so to speak. I appreciate all of the information you provide as well as your perspective.
@s1n27 Ай бұрын
This is a false statement. They do a lot. If you sit in a room with a true agent for a day you'll see that it's constant work even late nights. They have to do so much that the buyer or seller doesn't see to put out fires and negotiate terms and show property, write contracts and much more. They may work with a client for a year before they get paid from the sale. That's all of the costs of being a real estate agent. They have to pay for everything from the Brokers to their gas to show property. They have to pay for leads that aren't always good leads. They have to put together open houses and spend money to accommodate the guest. They have yo pay for their own marketing and they even have to win over a client because client is jump around between agents When they work for a month trying to get a home for a client, they find a house they like but the agent tells them what to do and they dont listen. They miss out on the house and the agent had to start over and it may take another month or 2 because they can't find a house that the owner likes again. Clients are so difficult and there are a lot of moving pieces. There are many things that can screw you when buying a home. it's the biggest purchase of most people's entire lives and it is easy for an uneducated person to get screwed. People get a professional to inform them on new HVAC system, 10-30 thousand dollars so why wouldn't you get a professional to help with 3-6 hundred thousand dollar investment that your going to pay on for half your life.
@drewgrandi5413 7 күн бұрын
No they don’t there glorified Walmart greeters. That shit isn’t hard you don’t deserve 6 percent for opening a damn door
@2023Red 3 ай бұрын
@Audra. Three questions as potential seller that I ask you respond to. 1. Are terms Listing Fee and Commission the same, and only apply if the house sells? 2. Are virtual staging and drone coverage prepaid or paid only if house sells. 3. Without fogging into the "well, that depends on this and on that" responses, what percent range would an experience realtor such as yourself charge for Listing or Commission for SFR around $500k with pool? And Virtual staging and drones? Robert P.
@LABoyko 3 ай бұрын
@2023Red. You are the one with the asset. You hold the advantage in any negotiation with anyone. You aren't pre-paying for a damn thing. Listing fees, drone shots, staging, all that crap comes out of their commission and they don't get paid until closing. RE agents need you a lot more than you need them. Never forget that.
@AudraLambert 3 ай бұрын
Hello there! Answer #1: In the California purchase agreement we use the terminology "Compensation for services" to designate commission. Not sure where you live..you'd have to check with your agent. Listing Fee and Commissions can be used interchangeably BUT...Trust but verify. See it in writing and make sure you know what you are signing. Answer #2: I pay for all my marketing, drones photos, staging upfront at no cost to seller EVEN if I don't sell the property. That should be a service your agent covers. If they don't, run for the hills. They are making a lot of money...they should cover this. As agents we are in a high risk/high reward model. Answer #3: For my full service I charge 2.5%..HOWEVER, if the price point is significantly higher I may charge a 2% commission. I don't want to gauge my clients...but also want to be fairly compensated for my services. If I have a seller that does not want my full service (wants lockbox, a few photos, no open houses, no marketing), I may charge a 1.5% commission....Really depends (thought you'd like that last statement.). Let me know if you have any other questions Robert P. Have a lovely day.
@2023Red 3 ай бұрын
@@AudraLambert Thank you for your outstanding responses!
@AudraLambert 3 ай бұрын
@@2023Red Yes, of course. Happy to help.
@ksnax 3 ай бұрын
Wondering how this will affect buyer expenses up front, as many first time buyers obviously struggle with that already.
@KAZHE63 3 ай бұрын
In this ridiculously over-priced market, it’s not just first time homebuyers struggling.
@AudraLambert 3 ай бұрын
Yes, its a huge concern. There are going to be sellers who work with you on the buyer's agent commissions and some sellers that won't. Buyer are having to come up with a lot of money upfront. This is just another cost they have to occur. I think most first time home buyers are going to have to ask the seller to assist with their buyer's agent's commission.
@amymcginty6634 3 ай бұрын
What about Open Houses, where the buyer encounters the seller’s agent? If the buyer walked in & already saw the house, the seller’s agent, who might be a Transaction Agent, wouldn’t have already had the contract signed by the buyer. What a conundrum!
@AudraLambert 3 ай бұрын
Yes, I agree. I think we are going to be seeing a lot of Buyer Broker agreement signed in ink..not Docusign if you know what I mean?
@tamaralucas7138 3 ай бұрын
If this settlement is approved, then Buyer's agents will be disrupted and I believe an a la carte menu will appeal to buyers. You show me X number of homes for $X with multiple tiers. Most people tell their agent the homes they want to visit. Next, contract review and advisement (explain in laymen's terms) $250-$350 for this service. Schedule the home inspector, $50. I see the two models evolving, one a low-cost a la carte item to show sellers that they won't have to pay for realtor fees because they have paid for the services, or they could ask for the $1,500 in fess as a concession. Next is a white glove agent that spells out the 3% commission and if they select a home that does not pay the 3% fee, the buyer will pay the fee or make up the difference that is being offered.
@AudraLambert 3 ай бұрын
Hello there, you may be right. I think what no one is talking about is the risk the buyer's agent is taking one. Its not just about showing properties and doing inspections...its knowing what the heck the buyer is signing and the risk they are taking by not having an experienced agent to guide them. Just because there is an inspection completed, doesn't mean that more should be performed. Also, who's doing the inspection? You pay an attorney to read and create documents to protect in various situations. In my area, that is what the buyer's agent is doing for the buyer. However, I do know a lot of buyer's agents who aren't that good. The flat fee might make sense for some. In some cases, you get what you pay for.
@theowl3756 3 ай бұрын
The real issue is forcing the seller to pay for the agent of the buyer. It is one thing to tell the Seller that it is in his own interest to provide incentive for the Buyer Agent. But it is completely stupid to tell the Seller that he must agree in advance to compensate the Buyer for hiring his own agent...!!!....The result may be the same, but it is simple psychology that the seller may be more comfortable to give something to an agent who brings him a buyer.
@AudraLambert 3 ай бұрын
Well, I can't disagree with your comment. Very good point.
@pamelaolsongrouprealty 2 ай бұрын
Agents are asking if it is obligatory to be a member of the NAR, could they only be members of the local board?
@AudraLambert 2 ай бұрын
Well remember, we are still in the Settlement stages of the lawsuit. We don't know all the details. Broker's and real estate agents are not required to be members of NAR even before the lawsuit. However, if they are not members of NAR than they are not Realtors...they are real estate agents. If you are a real estate agent, its really going to be dependent on your broker's requirements.
@pamelaolsongrouprealty 2 ай бұрын
Thank you very much for your answer.
@tranathackberry 2 ай бұрын
I see the value of an well connected agent. I bought my current home before it hit the market years back. Not sure how much I paid for the buyer agent but it worth every penny of it. (not 3%, I dont think)
@AudraLambert 2 ай бұрын
Finding the right agent is extremely important. If you find the right agent, they are your lifetime agent. Now the buyer can look up the buyer's agent commissions...sounds like you weren't sure what they were getting paid. So glad you had a good agent to represent you.
@maddierosemusic 3 ай бұрын
DOJ sees money and wants it. That's been their M.O. for the last 3 years. I wouldn't settle with these thugs. I signed a buyer's agreement 30 years ago. Your videos are great.
@tammyrussell-rice5508 3 ай бұрын
Now the DOJ is going after Apple.
@AudraLambert 3 ай бұрын
Well, I can't disagree with you...and thanks so much for your support.
@maddierosemusic 3 ай бұрын
They are thugs. Welcome to the totalitarian Marxists. Watch out if you are a registered Republican.@@tammyrussell-rice5508
@mrllblasi 3 ай бұрын
I want to sell…should I wait until the settlement is settled or just list now?
@AudraLambert 3 ай бұрын
I don't think the settlement is going to change the price of your home. If now makes sense to sell..then sell.
@imalivinintexas 3 ай бұрын
Hello from Texas Ms. Audra 🇨🇱 Non-realtor / average citizen question. Hasn’t it been “standard / customary” for the seller to pay both ends of the commission for many years now? What precipitated this lawsuit, and why all of the sudden did this become an issue now? To me, commission fees are just a part of the cost of doing business / getting your house sold. More concerning to me is the way Zillow is allowed to publicly publish information about my home that is totally unverified and inaccurate. And then use their so called proprietary formula to provide a “Zestimate” on a house they’ve never seen. And if my house isn’t for sale then why is this information being published without my permission anyway? Apologies for the rant and love, love, love your channel \o/
@AudraLambert 3 ай бұрын
Hello there! I am laughing about the non-realtor/average citizen comment. First off, I agree with you 1000% about Zillow and other sites giving estimates on property values. I think it should be outlawed. The main issue with the lawsuits are that buyer's couldn't negotiate their commission with their buyer's agent. There is a cost to selling a house...but the fees should be transparent. Also, the perception that commission fees were fixed or set goes against the Sherman Act. Commissions have always been negotiable..but a lot of agents/brokers didn't position it that way over the years with the sellers/buyers. It will all resolve itself over time. Thanks for your support..and am glad you are enjoying my videos.
@imalivinintexas 3 ай бұрын
Thanks so much Ms. Audra for the reply and explaining real-estate “stuff” in a way we can understand !
@AudraLambert 3 ай бұрын
@@imalivinintexas You are so very welcome. Glad I could help!!
@JoeKubinec 3 ай бұрын
Wait... did Audra say the buyers agents were established back in the day to protect the buyer? That does not comport to my experience where I had to sign documents that said I understood that the buyers agent is paid by the seller and is therefore a representative of the seller... and has no reason to fairly treat the buyer. These changes are a good thing in my opinion.
@AudraLambert 3 ай бұрын
Hello there, not sure how it works in other states, but both the buyer and seller sign representation agreements stating they are acting on behalf of the client they are representing in California. The buyer should be protected through this process. Its an important decision...they need not be taken advantage of.
@JoeKubinec 3 ай бұрын
@@AudraLambert t/y for reply... this was Maryland. Best regards.
@AudraLambert 3 ай бұрын
@@JoeKubinec Hello again...yes, I don't know much about real estate in Maryland...other than its beautiful out here. Have a good day and glad I could help.
@dalethompson6952 3 ай бұрын
I agree that the buyer is additionally burdened. The buyer is already saddled with bank costs: surveys,appraisals, credit reports, etc. I am a former realtor and my thought is, if it ain’t broke, don’t fix it.
@AudraLambert 3 ай бұрын
Hi Dale, I hear ya on the buyer being burdened with cost. In fact, the crazy thing, the buyer is the one bringing in all the money to close the deal. Most sellers aren't dishing out cash upfront through the process...they are usually paying for any concessions by the equity they have built up in their homes.
@DavidWillims20 3 ай бұрын
You miss an important point.. you can go alone and not have a buyer's agent. This will help the lawyers if you know the area really well. 😊😊
@AudraLambert 3 ай бұрын
Hi David, you are obviously not in California. We don't use attorneys...the listing and buying agent do all the contracts. That's why this settlement is such a big ordeal for us. You make a good point:)
@KAZHE63 3 ай бұрын
This is malarkey! There is no way I’m signing a BBA. The “buyer’s agent” will have ZERO incentive to get seller to chip in now. And sellers are not lowering their already ridiculously over-priced structures prices. I don’t have time to go sign a new agreement for each house I view, and likewise- I’m not signing a 30-90 day commitment to buyer’s agent. VA buyers are not allowed to pay for these things!
@rubyannr6898 3 ай бұрын
😂😂😂 They're drunk. Go to the listing broker, bypass the agent.
@alanfaber1261 3 ай бұрын
@@rubyannr6898you can do that, but you would then not have anyone representing your best interests
@AudraLambert 3 ай бұрын
Well if the settlement gets approved, I promise you the VA rules will have to change too. I hear you regarding not wanting to sign a bunch of buyer/broker agreements. I am just trying to protect you not being roped into a long term contract with a buyer's agent who may not be great. I agree the process is a bunch of Malarkey...but it is what it is unfortunately.
@therealestateexpertonline 3 ай бұрын
concession to buyers is considered a kickback which I believe is still illegal
@AudraLambert 3 ай бұрын
Nah...concessions have a limitation of what can be passed through via a mortgage....it depends on your LTV. It ranges from 2%-6% in most cases.
@pamr.3723 3 ай бұрын
I'm seriously interested in knowing why years ago the realtor fees were split between the buyer and seller. Why does the seller pay all the realestate fees?
@KAZHE63 3 ай бұрын
The buyer pays! It’s your buyer who brings the funds to write everyone a check!
@bobneedham6224 3 ай бұрын
@@KAZHE63 Wrong again
@LABoyko 3 ай бұрын
@pamr.3723. It's all semantics. Ultimately the Buyer pays for everything. The closing costs, commissions, taxes, other nonsense are all extricated from the Seller's cut at closing. That whole regime is made more arcane by this proposal.
@bobneedham6224 3 ай бұрын
@@LABoyko Semantics? Tell that to the seller whose net worth dropped by the amount he paid in commission. When the buyer pays his portion of the commission I don’t think he’ll conclude it’s only a matter of semantics.
@ashdav9980 3 ай бұрын
@@KAZHE63real estate agents scream to the roof tops and hundreds of videos are probably being removed right now, that say exactly what they have been saying for years….”you should hire a buyer agent because it doesn’t cost a thing, and why pass up representation when it’s 100% paid by the seller?” Now all of a sudden they want to change their tune and start saying the buyers were always paying for it. Can’t have your cake and eat it too. The problem with telling everyone your service is free is that no one values it. Realtors have made their bed due to resistance to change….time to sleep in it a while.
@roylappin4491 3 ай бұрын
If the seller has an open house and buyer comes to the open house without representation can they save 3% ??? What about a new build?
@johnhaller5851 3 ай бұрын
The only problem is that most people only buy a house a small number of times. If someone negotiates contracts all the time, and understands the local real estate market, maybe. But, if having an agent tells them that the house is overpriced by 5%, is it worth paying them 2% for that knowledge? Does the buyer have time to attend inspections, and will the selling broker charge to attend the inspection if there is no buying broker, and the house needs to be monitored during the inspection? There are still a lot of things to be worked out.
@AudraLambert 3 ай бұрын
Here lies the question: How are you going to present an offer if you are representing yourself? If the property is already listed in MLS, more than likely the seller will not want to work directly with you unless you can guide yourself with the proper forms through the process. Which you probably can't. If you want to hire the listing agent to do this for you, they more than likely will at a discount. You would have to ask that question to the listing agent.
@roylappin4491 3 ай бұрын
@@AudraLambert thank you for your response, it will interesting to see how this all works out. I think I am seeing an advantage to the builders.
@AudraLambert 3 ай бұрын
@@roylappin4491 Yes, new builders are going to offer a good solution...for sure!!
@BobPenzien 3 ай бұрын
These new rules do not apply to a licensed broker who is not a member of NAR and does not subscribe to any MLS.
@AudraLambert 3 ай бұрын
Bob you are right!
@MichaelBrown-ny3et 2 ай бұрын
The first thing an agent tells you is that they are not an attorney and can’t give legal advice. Feel protected?
@AudraLambert 2 ай бұрын
That is true...but the purchase agreement we write our contracts on was written by attorneys...which is at least some protection.
@florencehendrick4781 3 ай бұрын
Audra Lambert your content is ALWAYS OF GREAT VALUE....we are so blessed to have you and still saying.......50 Million Strong....
@AudraLambert 3 ай бұрын
Thanks FLO...my number one fan!!
@jamesduong8052 3 ай бұрын
So if I sell my house for $1mil, then id it reasonable to give 15K to my realtor and 15K to buyer's realtor? Yes, the seller is me still paying for both sides, which total 30K (3%), instead of 6%.
@AudraLambert 3 ай бұрын
Hello there James, you can offer whatever commission or no commission you like. You have to find someone to work with you on the listing for that amount...and the buyer may ask for more commission to offset their cost for their representation through their offer..but its a free world..lol. Always has been, you probably just didn't know you could negotiate commission. If I am offering my full services to you, I wouldn't agree to the $15K commission on the listing side. I usually put $6-7K..even more in some circumstances..wouldn't make sense for me ( I have other holding cost I incur as well) But if you told me you didn't want great photos, were good with a lockbox, no open houses, and required very little marketing, I may consider it...especially if your house was in good shape and you were fair on your asking price. It really depends on the services you want on your property and if someone is willing to work for that:) Best of luck.
@thepreston1021 3 ай бұрын
Great Video, great analysis
@AudraLambert 3 ай бұрын
Glad you liked it! Appreciate the comment.
@AudraLambert 3 ай бұрын
Glad you liked it! Appreciate the comment.
@ThisIsTheMajor 28 күн бұрын
8:10, Audra, you state, "we're already doing that right now." This is because you were forced into doing go. Perhaps the outlier agents practiced this. But it has never been standard practice. I'll try this for a third time. Before this lawsuit and since you've been an agent have you always advised your BUYERS prior to or anytime during escrow that they can negotiate with you the commission you're being paid by the seller's broker?
SMOL Italian
Рет қаралды 43 МЛН
Yahoo Finance
Рет қаралды 98 М.
Audra Lambert, Realtor
Рет қаралды 94 М.
Audra Lambert, Realtor
Рет қаралды 13 М.
SMOL Italian
Рет қаралды 43 МЛН