Bingo! Experienced corporate buyers are the winners here. You hear that average Joe American this helps corporations...not you!

So why should the seller have to pay your fee without being told they are doing so?

Even so, NAR’s agreement to scrap longstanding rules governing broker commission fees will slash a key expense Americans face when selling their homes. “It’s totally upended the current system as we know it,” Vasi Yiannoulis-Riva, a partner in the New York real estate team at Withers law firm, told The Hill. The agreement settles four antitrust cases that accused the powerful realtor organization of working with real estate brokerage firms to establish rules requiring home sellers to pay buyer broker fees, which they argue resulted in inflated rates. Most home sellers currently pay about 5 to 6 percent in commission fees, split between their own broker and the buyer’s broker. For a $1 million home, this could amount to $50,000 to $60,000 in fees. Under the newly scrapped NAR rules, which were enacted in the 1990s, sellers were required to pay for the broker representing the buyer and offer a commission for the buyer’s broker when initially listing a property. The realtor group, which denied any wrongdoing, argued that these rules “help make professional representation more accessible, decrease costs for home buyers to secure these services, increase fair housing opportunities, and increase the potential buyer pool for sellers.” However, the lawsuits alleged that this incentivized sellers to offer higher commission fees to buyer brokers, since they would be more likely to show homes with higher fees to potential buyers. “Buyers and sellers lose some money because they have to pay these agent fees that would otherwise be lower,” said Tomasz Piskorski, a real estate professor at Columbia Business School.

It's better idiot

This will negatively affect the buyers, they will have to pay more money upfront in fees and therefore will hurt the seller market by lowering home prices now that the buyer has less upfront capital and therefore can’t afford as much.

@@WaltWW I disagree, there’s plenty of buyers available at current inventory levels that are looking for a house.

Yes that’s correct but with this change seller’s agent will not split their commission with the buyer’s agent, the agent has to negotiate that with the buyer. Sellers agents will not be able to charge 5-6 % anymore. Not sure how buyers’ agent will be compensated maybe listing agents will have to do more legwork and find a buyer.

Thank you! That IS how it currently works. Also, this guy kind of "debunked" his own prediction when on one hand said "agents will say 'forget the buyers agents', and offer to list the home at only 2.5%", then turn around and explain that during the housing crash during the recession, listing agents would offer "buyers agent incentives" of higher commission. When he advocated for cutting out the buyers agent's commission, there will be less buyers. Guess what he's gonna have to do to get the buyers and agents back???

You are right. Most people on this thread have no idea what they are talking about

Amen! I love the fact that as an older woman you clearly seem to know exactly how the real estate transaction works and yet how so many younger people appear to know nothing even after going through the process themselves. What you say is exactly the problem! Agents are there for buyers and sellers protection. Buyers agent especially does a lot of the hard work. No agent is doing that for free. The housing market will stall and buyers will get screwed in mass because let’s face it most people need to be overseen to do the right thing.

You gotta pay fees to become a realtor and pay yearly fees, about $1200 a year.

Bingo

Exactly. Rental inventory keeps going up and prices are going down. Even here in Cali, they cut the rent on my unit from $2,700 to $2,100 from 2023 to 2024 (I observed the last tenants rental amount). That being said, can’t find any properties on Zillow in this area anymore lol

You seem to be in the business and you make the time for it. Your invested with multiple properties. No?

People should really learn how to sell and buy property without a middle man, that's not necessary.

Congratulations. If you are very experienced that's great. The average person has very little experience with the ins & outs and managing the roughly 10-15 people and deadlines involved from start to finish to get the deal closed. They'd need to take a month off work to handle all the details and phone calls.

10% of all homes are sold by owner. Congratulations. Everyone else is doing it and has been forever.

not everyone wants to do everything and feels comfortable doing everything. just like some people don't want to change their own oil and fix their own pipes.

Where do you live? Might need to get out of a big city if that’s where you are.

Commissions were always negotiable. Savy million-dollar sellers know that to get well-connected, buyer's agents with the clientele they need to sell their house will take a proper incentive.

If you understand this, then you should realize that the next bubble is coming and be getting ready. Most people won't do whatever it takes. In 2007, I moved into a single wide trailer with 2 roommates and only ate cooked bulk food. Saved every cent I could and spent zero on frivolous items. In 2009, I was moving into my %40 off 2006 built house.

Get a better paying job.

@@aaronb7990you must mean bubble pop.

Sorry you had a bad experience…

I could have found them myself (but didn't). There's a saying "Fool me once....." Sounds like you like to be fooled. LOL

The rich get richer.

You better believe something like that would better fly in Europe where it appears as if the government is a lot more serious about protecting regular people from each other and corporations, but in the US, sheesh that will lead to chaos because our nature is so…. Greedy.

Realtors are lazy and do nothing for society, infrastructure, or technological advances.

Oh please. First of all, you show me the percentage of listings that have one picture or tell me where to find them- I’ll wait. It’s a damn lie. Secondly, you say 99% of buyer’s agents don’t work, again where is your proof! I guarantee you there is no way a single real estate transaction would successfully go through if it weren’t for the buyers agent! They make the buyers aware of all the terms of the contract, help the buyers to negotiate the contract to something they can afford and actually live up to, they ensure buyers are meeting all of their deadlines for inspections, title search, securing financing, appealing to potential problems they discover during the processes and then renegotiating terms or walking away from the deal if truly not in the buyer’s best interest and all with their earnest deposits still in tact, protecting buyers from falling for many of the tactics some unscrupulous sellers will use to unknowingly have buyers breach a part of the contract thus giving them the option to keep their earnest deposit while also walking away from the deal, or worse, forcing the buyer to buy a home that is truly a pit and or not in the buyer’s best interest. I have seen so much in just 4 years in the business (no longer and agent but I definitely learned it is so much work and for most agents they are so far underpaid).

Spend a day in the life as a realtor and you will be shocked . 6% isn’t enough , should be 7-8% , costs 15-30% to take a high value item to auction 😂😂

100%. Not to mention commissions were already going down. Who's to say that in 10 years it would be a 2% total commission situation.

I’d like to know why isn’t it

It's privately owned. Why would an independent American citizen put their private property for sale in a "public record"? What could possible go wrong? Isn't the government in our pockets enough?

Because licensed agents pay money to be a member. It's a Co-op@@edennard1

Monopoly powers enforced by government regulations paid for by the monopoly to keep its monopoly. Just like every other major "regulated industry" the illusion of capitalism

@@edennard1 “The Multiple Listing Service (MLS) is private because it's a professional database that's owned and operated by real estate brokers. The MLS is created, maintained, and paid for by brokers to help their clients buy and sell property. Brokers pay fees to the MLS for administrative and security costs, so they don't want the MLS to be free and open to the public. The MLS also has private remarks, showing information, and commission amounts, which can help buyers make informed decisions.” It’s antiquated and it’s time for change. Been around since 1907. In the age of the internet this needs to be free information for anyone 🤷🏼‍♀️ I think in 1907, 1950, even 1997 it had a place. 2024? No way.

lol, at the expense of the buyer. This will have ripples in the hosing market when too many buyers get screwed because they will not have agents! Basic laws, every action has an equal reaction. No way sellers will go unscathed.

I agree

It’s called a flat fee Lsiting company. This was always an option; has been for the past 50 years.

Yup. People making the laws are pretty much universally all real estate investors, all owning multiple properties, and they use their positions to make their lives better. Always has worked that way. If you look at the organizations that rate freedom rankings and democracy rankings, the freedom Index in the US has taken a nosedive over the last 15 years due to blatant corruption in the govt, and now we are listed as either a flawed democracy or even failed democracy.

Kevin is misleading viewers here. Overall commissions for both Sellers and buyers agents will go down, (no more 6% rule) as both of them have to compete for business with clients. New Startups might come up or Redfin or Zillow may offer buyer agents commissions. Imagine websites like Expedia or Kayak for real estate instead of the old MLS.

You actually believe buyer agents advocate for buyers, that's adorable.

Exactly…everyone against agents are just asking for a wealth transfer. People don’t know what they’re really asking for here. This is the catalyst event.

Can that robot open a door?

that's exactly what will happen and I've been saying this for the last 3 years, big corporation will be offering to sell the properties for let's say $500 dollars flat fee and that will be the end of real estate agents and brokers, so realtors will go the way of travel agents and we don't see too many of those any more

Yes. That would be if you know it. Just making you pay and not telling you is dispicable.

How!! Please explain 😂

yep

No... first time homebuyers will be forced to educate themselves on the home purchasing process. It is possibly the most important purchase of your life, wouldn't you want to know as much as possible on how to best navigate the transaction?

You're right. first time home buyers will just go through builders like DRHorton cause you don't need an agent to buy a new home with them. I think you will see second time home buyers get it the hardest. You won't have enough equity to cover selling your old home, paying the new buyer agent fees and also putting 20% down on your new home

Save your money. Get banks to go back to take over payments.

Who hurt you and what did they do so bad to make you say such a thing?

Who said it has to come from “profits” would you prefer a separate out of pocket up front sellers fee? By all means open a school for home owners on how to sell on your own without an agent/broker. You’d potentially make millions. You can create video content. And then you can one day read a comment from some random individual asking “i cant believe this guy is making money from teaching people the complexities of selling a their own home” 🤣

F At fee, agents are worth 3% of $3MM

Have you ever tried to sell a $3M house? It’s hard as hell.

@@MikesLARE 😭😭😭😭😭😭😭😭

agreed. I think buyers will move towards of a model of finding a home themselves. At THAT point I think more buyers will hire a real estate attorney to represent them (at an hourly rate) instead of handing out big chunks of their equity to buyers agents.

First time homebuyers get screwed! But f-them am I right?!

For sure... and then they don't get a house because the vast majority of homes are still being bought by cash buyers above listing price.

Then they don't represent the buyer do they? Ethics matter....

Would you work for free?

@@binwin2582 No, that is exactly what I am saying, pay nothing to a buyers agent and there will be no buyers agents, its that simple, look at my other comment. I said the buyers agent is the one that does all the work, still pay them and get rid of the listing agents, let the buyer pay to put the house on MLS, they can hire a photographer to take photos if they don't want to take their own then do their own research to figure out what the house is worth or hire someone that can give them that info but to pay a listing agent is kind of a waste in my opinion.

They will still show the house, its just that they will get paid much less, like a flat fee of 1 or 2 grands

That's for the buyer to figure out. No one's saying a buyer's agent has to work for free

Who needs an agent to find a house when there’s Redfin and Zillow.

I think buyer's agents will be hired on fixed fees from here on. Because as per the court rulings, hint/ indication of any commission from the seller or his agent to the buyer's agent is now punishable. So buyer and his agent will decide their fixed fees based on their budget and then the buyer's agent will fight/ negotiate more fiercely with the seller's agent on price. Also Buyer and agent can have an arrangement about commission based on potential savings.

Yup, agree seller/agent will also get screwed; Kevin is wrong.

Buyers don’t need agents to access MLS now with Zillow and all the other sites featuring the property, it’s 2024 not 2010

I think most buyers nowadays look for homes at Zillow and Redfin. The days of realtors showing you the binders of the house are gone. If the buyer wants to buy a house, they would find an agent who would help them get that house. When I bought my house, I mostly did the most of the work to file the offer. My buyer agent just opened the door and filed the offer for me.

As a realtor I advise buying a house sight unseen. I have no problem showing one of my listings to qualified potential buyers.

If you are making a simple sale and don’t need to contact the seller then that will work just fine. Most people aren’t savvy enough and or need too many issues resolved and contingencies. I am always shocked how many people ask their agent to help them through the lending process. It’s sad but most people need A LOT of hand holding.

For sure, family/relatives or friends transacting amongst each other have at it. You want to sell your home for actual market value and do it right, hire professional agents/brokers. There will always be the DIY mindset, I DIY what I can, everyone has limitations whether it be skills or actual time. Pick and choose your battles friend. Be happy and thrive!

Horrible idea. You can find yourself in a very bad spot if you don’t know the right questions to ask.

That's what I did worked perfect. I paid $500 for the lawyer

Also too high to get it sold.

i KNOW. CUSHY JOB.

Exactly thats why a buyers agent relies on a motivated seller to compensate. Thats how it works 😂

Great idea. Just to let you know you will also need to pay dues, desk fees, errors and omissions insurance. And you have to pay fees e an electronic key too

You don't need a license to sell your own home. There is no law that requires you to use an agent.

That’s exactly what I did. Forget giving someone free money when you can invest that in yourself

Good for you but this story sounds like it's from 1985.

And we'll charge the buyers for the help.