Buying or Selling Homes? Here is What You Need to Know About Realtor Commission Changes

[@California.Insider]

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[@MsHarasan]

I think realtors should be paid a flat fee not a percentage. Especially in todays price range, this causes unbelievable hardship on people struggling to save for a down payment, now this?

[@Garth2011]

They can't because of the overhead, insurance, liability exposures and other fees and overhead that are all based on the transaction amount.

[@MrsRanchoFiesta]

The buyer's agent had no insensitive to buy low because their fee was a percentage of the price. I know bc our real estate scoundrel kept putting in higher offers against NO ONE. We found out 10 yrs later by accident in a conversation with someone who worked in the "seller's" office

[@ripvanrevs]

The buyers agent works for YOU. The only offer they should be putting in is what you tell them to put in.

[@youaregoingtolovethis]

@@ripvanrevs They lie. They want bigger commission like the poster said. They pretend there are other higher offers. How would you know if they are lying or not? You just take their word and hope they aren't lying as there is no way to verify short of calling the seller's agent and if the seller's agent tells the truth then you know your agent is a liar. If they are both in on it and both agree to lie and say there was other offers you would be screwed which I know happens way more than people would like to believe. Since everybody wins except the buyer with a higher price. They have a conflict of interest to be honest. Since when are sales people known to be honest and trustworthy?

[@정의구-f1c]

That is why I decided not to hire an agent and directly contact the seller's agent myself.

[@maximus4329]

The buyer's client also has the option on to agree on a flat fee instead of a percentage %. Then it doesn't matter how much the home costs.

[@paulgilliland2992]

You’d be pretty naive as a buyer to have the sellers agent act as your representative. This is big red flag and unless you know both the seller and agent no one is in your corner.

[@simplip4934]

So great to hear there is someone out there, like Mr.Hickman, who speaks the truth about most real estate agents' behaviors, which is more about profiting them than earning consumers' trust and providing the best and most transparent services. Finally, consumers, sellers & buyers, are acknowledged, respected, and appreciated.

[@nina4053]

Thank you Mr. Hickman, I truly respect your viewpoint. It is apparent you are an ethical business person. Thank you for this great information.

[@cecilarollroll]

As a Real Estate Investor I firmly believe and support the changes in The Real Estate Industry. I’ve learned new information and I’m grateful for your channel content.

[@alicerose8057]

Im happy about this. I told my buyers agent if she could get the price down I would give her extra commission. Unfortunately the way it’s been set up, buyer’s agents have a conflict of interest because they get paid more based on the sales price. Their job should be to get the buyer the best deal and they should get paid based on that not on a higher price.

[@guineapigzed]

LOL

[@stevodakine1]

Like 6% commission isn’t crime? For what? It’s absurd.

[@HouseOfChunky]

Our last agent charged us a whopping 6% and he was a total snake! 😡😡😡

[@MacRogersrealestatebroker]

At the risk of getting killed here, lol. I totally hear you-6% can feel like a lot (and it is a lot), and it’s understandable to question it. The reality is, a significant reason for this is liability. A lot goes towards legal and compliance work that protects both buyers and sellers. There’s a lot of liability involved, and agents have to ensure everything is handled correctly to avoid legal issues down the line. It’s not just about showing homes; it’s about navigating a complex process that involves a lot of risk and responsibility. Commissions are negotiable, and I always advise buyers and sellers to push the envelope when negotiating fees. It’s crucial to find the right agent who provides real value and will work hard to achieve the best outcome for you. Don't hesitate to ask tough questions and make sure you feel good about the service you’re getting-because at the end of the day, the right agent should more than earn their keep.

[@ripvanrevs]

@@MacRogersrealestatebroker I agree. I've sold about 100 houses over the last 30 years. Using a realtor allows me to have an arms length transaction. I rarely meet or know the buyer until closing. A lot of closings now are done separately and I never meet the buyers. The realtors I use are worth every bit of what I pay.

[@cherlgolja5402]

@@MacRogersrealestatebrokerjust get Realistate lawyer!

[@MacRogersrealestatebroker]

@@ripvanrevs 100!!! I would like to be your best friend 🤣🤑🤑🤑.

[@prairiedog6]

To a real estate agent, it’s always a good time to buy, regardless of market conditions, because the agent will make money from the transaction no matter how bad a deal is made. Buyers and sellers can never trust the advice of real estate agents, because the agents represent their own interest above all else.

[@lettyvelasco2584]

Thank you for this program, the information and your guest. I was so confused and misinformed about this topic and try to read about it but the jargon made it difficult to understand. The host and the guest speaker spoke in plain simple English, I appreciate it. Saved it to my favorites to go back and use it as a reference.

[@sweetiepie1110]

I was a realtor in Cali I quit because the market is dead and there’s so many ridiculous cost of operating as a licensee

[@New-bw4kz]

You just couldn’t afford it..

[@MacRogersrealestatebroker]

Where in "Cali" (people not from California are the only ones who say Cali 😇)? Market is dead? Is this up north? But it is true that the cost is ridiculous.

[@donneone]

The market is not dead in California. Certainly not in any So Cal major urban area. It's been robust since 2010-2011 recovering from the home loan crash of 2008. Then home loan interest rates dropped to almost 1% and its been a Buyers market for around 10 years. This contributed greatly to the increase in home sales and the demand lead to a frenzy in construction of new housing properties, although still not enough units. Since then, the cost of buying a home has only risen. This was and still is a contributing factor for a lot of people to move elsewhere. The home prices in California are the highest in the nation with an average single family home in the $1.4M range in So Cal. This is what is making it difficult to afford a first time home for many. No one would call it a dead market. It's the opposite. The market is crazy with selling prices all over the place and buyers willing and able to pay the high prices. Inventory is low and this also drives up the price of existing homes coming on the market. Have you heard about the California housing shortage? It's real. The law of supply and demand in action. It's not just that there's not enough available houses of any type. It's also that it's just not affordable to most. Yet, there are still Sellers selling for all kinds of reasons such as downsizing, buying up, forever homes, or moving elsewhere. The Buyers are out there looking for their first time home, forever home, downsized home, vacation home, investment rental or flip home. It's busy with Buyers in all price ranges. Admittedly, it has slowed some the past month. Most likely due to Sellers and Buyers waiting to see the outcome of the Aug 16 Broker's commission settled and the Sept 17 Fed interest rate reduction. Now that those have happened as expected, the market is picking up more just as expected. Tons of Open Houses and price fluctuations. It's looking crazy again as usual. Nope, no dead market here.

[@sheepishmclemmingston5550]

​@@donneoneyou're mistaken. I live in SLO county. One of the LIVELIEST markets in California. And yet, even it is dead. You know why it doesnt appear so? Thats simple. You see, it is in imitation of the theory behind the "Undead". The brain being dead, the body having missed the memo, simply neglects to lay down and act the part. Soon enough though the "magic" animating of the corpse stops. And just like that, the walking cadaver will all at once collapse in and down on itself like a stinking, sodden pile of rags dropped from height, a resounding, wet "SSLLLAAAAAAPPPP"! Echoing shaply and repeating as it rolls off into the distant horizon

[@sheepishmclemmingston5550]

​@@MacRogersrealestatebrokerI live in SLO county, raised here born in SoCal. Sometimes even I refer to it as "Cali". Although I MOST often refer to it by "The Fifedom of Phuqtardistan (Formerly known as The Republic of Commieslavia)" which is its MOST accurate name AND descriptor.

[@Thecode-vf9oi]

I found a buyer's agent who charges a flat fee of $5900 regardless of the price of the property. Considering the median home price in California is $904000 that's a saving of $21,220.

[@jroysdon]

Show homes and printing out the forms and making sure they're signed costs the same, no matter the cost of the home. A flat rate sounds pretty reasonable considering this.

[@maximus4329]

You are 100% correct. It doesn't have to be a commission percentage to use real estate agent.

[@MetalBum]

I’ve heard those agents. They’re the worst. The 1% or flat fee ones don’t do shi. They lost me 30k on my last deal.

[@mlbonfox8199]

@@Thecode-vf9oi Great info Ty

[@militantondreea443]

Just helped a client for a $4m home, I took a flat fee of 15k. It really depends on who you work with but overall, we sent over 6 offers, but we got an amazing deal. Plus took $40k flat fee for listing a $5m home. Sold the home within 2 weeks and got the other home pending within a few days of the property on the market.

[@g.i.520]

I work for a brokerage in LA, agents are laughing now they are asking 6% PER SIDE when they used to ask for 2.5% per side. Lawsuits always serve the lawyers and end up making me have to deal with more paperwork 😮

[@terryshull4477]

B.S. FROM A BROKER OF 47 YEARS

[@artimeis]

I can ask 100% and I will have zero business lol

[@bikesbeersbeats]

In the UK only the selling agent receives a commission, the buyers use a flat fee solicitor (attorney) to handle their transaction and legal work. Its very straight forward. I've never seen anywhere else where the buyers side has an agent that is rewarded for increasing the sales price.

[@wt3447]

I'm not sure what the point of NAR except it mandate broker and agent to pay them a fee. It's obviously a monopoly.

[@biskit7]

Would love to see how this all works out. The old way was actually a great system, now its very confusing and open ended. How can I buy a house, not knowing if the seller is paying the buyers agent, now I have to pay them, so of course I want to take that from the sale price... and what happens during a multiple offer situation. This is a cluster!

[@GiggleButtz]

Amazing conversation! Mike Hickman has a great mindset and comes across as transparent.

[@guineapigzed]

He is; seems like nothing has changed. Still gonna put your feet to the fire.

[@robertglover8819]

Lawyers have corrupted the process of how homes are bought and sold in the United States. After the lawsuit settlement with NAR, buyers now either have to agree to pay their agent directly through the new buyer broker compensation agreement or raise their offer price to the seller and ask for the buyer's agent compensation to be paid by the seller from escrow. Ultimately, the net proceeds are what the seller is concerned about. If that works for the seller, then the buyer does not have to pay the buyer's agent compensation direct. This new buyer broker compensation agreement is another form for realtors to complete a transaction. However, not much has changed in way of realtor compensation. If you hire an attorney, you have to sign an compensation agreement upfront. Now real estate is more aligned with that model.

[@stevenyu5384]

Excellent comment. The idea of hiring an attorney for real estate transactions would only increase the cost of doing business.

[@Garth2011]

That is exactly what will be happening...prices just went up all while the NAR plaintiff lawyers are having cocktails thinking they helped buyers.

[@Jeff-fc7nf]

Makes no sense to me that you cant basically sell and buy a house on craigslist without any middle men. I just dont get it. Somewhere some people made up some laws to screw people over like not being able to buy a car directly from the factory. There is no reason why I shouldnt be able to just buy my car from a Honda/Ford factory and just have it shipped to my house. I dont get it.

[@fuzzytigercat]

If you were the factory, would you want to deal with every person that wants a car? I think not especially considering how crazy people are.

[@donneone]

Well, you actually can buy a car "semi-direct" from the factory. If you work for a company like Honda, you can buy it through the company's Employee Purchase Plan. Other car companies probably have something similar. You can pick your options and actually track it's progress.

[@civilwolf4843]

You can buy and sell without an agent. All you need is a title company, escrow company, and lawyer if you want a contract reviewed.

[@bitkrusher5948]

It's called systemic control ...... Monopoly of all rules and regulations of society.......

[@g.i.520]

You must have never owned a home?!? It’s insanely complicated with hundreds of docs to fill and inspections to complete. One mistake and you have a 800K headache

[@cecilarollroll]

Outstanding Valuable Informative Content. Appreciated!!

[@ripvanrevs]

If you DON'T agree to pay a buyers agent, you are only allowing the selling agent to sell your property. If you do agree to pay a buyers agent, you are allowing hundreds or thousands of other agents to help sell your property. If your agent has 0 buyers, you aren't going to sell your house. If other agents bring many buyers, you will sell your home quicker and for more money. What would you choose?

[@Garth2011]

The old way of course.

[@p.o.4339]

Offers will include wording that requires the seller to pay the buyer's agent, which is essentially the old system. For the most part, in California with it's inflated prices, real estate agents are overpaid

[@guineapigzed]

Bingo

[@unclepeanut9600]

This not a California issue. It's a nation wide issue

[@cherlgolja5402]

I hate realtors they are just fancy used car salesman, only 20 % are professional and Educated!

[@civilwolf4843]

@@cherlgolja5402 Most of them are junior college dropouts!

[@KDFantastic]

Thank you, that was an eye-opening discussion 🎉🎉🎉

[@Slide61]

Buyers and sellers were unaware commissions were negotiable. The broker and realtor are. So, why wasn't that disclosed. Due diligence - right? What happened when it was the realtors listing? Just took 3%. Yeah...good one. Ever try to negotiate a lower commission? Another good one. Realtors didn't show your house. Just go to the listing agent and use them as a go between for negotiations between the buyer and seller. After all everything is by the book now. No more shenanigans - right? If the sellers agent says no move on

[@tw8725]

I think the real problem here today is the listing price has gone up by 30~40%, regardless of how much the interest rate has or will come down. Everytime I looked at the house searching websites, I'd asked myself, "Do I really want to pay this much more even if I'm making 500k a year?"

[@markinlosangeles9108]

Everything is Negotiable, right? So if a Buyer signs a 12 month exclusive agreement with their Buyer's agent, this is NONE of NAR's business, right? Or is NAR placing additional controls on relationship between Buyers and their agents? This NAR settlement is BS.

[@stevenyu5384]

This lawsuit was has created a mess for the market. Lawyers are the only winners.

[@come2idlewild]

Great Piece…Thanks 4 Sharing…

[@simpleman5541]

From seller perspective, the bottom line is offer price minus buyer & seller fees vs just seller fee. I have bought many houses and most of the time I go to the open house and just have the agent do the paperwork.

[@Garth2011]

Now you will have to sign those papers that amount to about 70 pages then, you can use the listing agent to help you. I swear, all of these documents/contracts are just more words for folks to have to read and sign. In my experience, most folks do not read the contracts and sign them due to the amount of fine print and obvious content.

[@BrandenRunyan]

We have been trying to sell our home since 2022 in California. I never imagined that realtors were so incompetent and sleazy. You do not need a realtor in today’s market. Do everything yourself and deal with the title company directly. If you have a smartphone it’s quite doable.

[@elvozelka3200]

@BrandenRunyan You should look into an agent or will

[@elvozelka3200]

There are some agencies that will post your home on mls for a small fee. They won't represent or help you with forms. Good luck

[@alexiswinter6948]

Real estate lawyers will do all of your paperwork for you. They'll charge about $1,500.

[@Garth2011]

All good if things get done correctly. If the buyer decides the deal wasn't fair or the property has been misrepresented or has issues and hires a lawyer, all that you saved will be gone in just the first few weeks of legal expenses and expert opinions etc. Buyers remorse after escrow closes is usually the reason for most buyers wanting out of the deal afterwards or they are simply that dead set on suing for profit.

[@mankind5709]

So now buyers will be locked out of deals because they cannot come up with an initial fee up front to look at a house. So the corporations are the ones that benefitted the most from this settlement. The average buyers are screwed again.

[@bindilove3899]

Buyers need to buy the home from the listing agent, not walk in with their own agent. I just sold a CA home and every offer we received, the buyers wanted us to pay their agent’s fee. We said NO and finally sold to someone who didn’t make that request.

[@rcampbell4967]

It's going to be interesting to see how this shakes out, but many people didn't realize that unless a Buyers Agreement was signed with the buyer, the buyers agent legally represented the seller. The new law at least clarifies the relationship between the buyer and buyers agent.

[@voiceofraisin241]

The more people that leave. The more taxes that are needed to make up the loss, which in turn chases off more people. We need a leader that is not certified.

[@bigdougscommentary5719]

Moronic comment. The leader you prefer is CERTIFIABLY NUTS.

[@antareschen4451]

I tried to negotiate with a buyer agent to return 1% to me. I just need her to put in an offer. She said NO she works hard so no reduction or discount. So I went with another agent who gives me some back.

[@MacRogersrealestatebroker]

I totally get it! It can be frustrating when you're just looking for a little flexibility. Every agent runs their business differently(often times dictated by the office)-some are willing to negotiate on fees, and some aren’t. It’s great that you found someone who was willing to work with you on that. At the end of the day, it’s all about finding the right fit for you and your needs. Hope it worked out well for you!

[@marcellabrowning315]

That might be problematic, especially depending in the funding of the transaction.

[@antareschen4451]

I keep hearing realtors on KZbin saying that the agent fees are negotiable. But have you ever tried it? Most buyer agent don’t have a mind set of negotiation

[@MacRogersrealestatebroker]

​@@antareschen4451 Not only buyers agent but pretty much every agent.

[@Garth2011]

that has to be in writing...

[@douglasthompson9482]

As a person living in Canada, realtors need far more transparency. A very dirty unregulated industry. Here,as in California, housing has gone through the roof. Unscrupulous realtors are very common,especially over the past 15 years. These unregulated sharks need to be following stringent rules to abide by. I applaud all regulations against realtors. Families are not able to afford housing, major problems have been created due to massive housing costs. Realtors are a major reason why prices are the way they are…. One other thing….the governing board does not act on claims by the general public. Also each realtor will not act against their “ brother “.

[@elizabethann-z1q]

I had a Realator in June try to represent buyer and seller changing 7% in Palm Springs California

[@donneone]

So, with the Agent compensation fee ruling change, does that make the Seller's pre-Aug 16 Listing Agreement now void regarding having to pay both the Seller's and Buyer's Agent fees at 2%?

[@elvozelka3200]

Not really. Basically, new listing don't have option for composition in mls. Old are still valid, but you can cencel that agreement and do new one

[@mchristr]

I don't fully understand the reason for the real estate industry. I can see the benefit in a long distance purchase, where a buyer needs someone else to do the groundwork. But with the internet, details about a home are readily available. Why not hire an inspector, negotiate with the seller based on local prices, and then pay to have a legally binding purchase contract written?

[@Garth2011]

Try to sell a home on your own...its almost impossible to reach enough of the public without having the MLS do its thing.

[@ZROGERZ]

The WORST negotiation is to paya “Percentage” to your buyers agent ‘cause their commission still attached to “negotiate” a higher price. You, as a buyer, do not need to pay 2 or 3% anymore. You can have an agreement with your agent to pay 3 to 5K as a FLAT FEE if you purchase the home that their find for you. That way is no bias on the selling price. And please, REJECT all the “Sellers will help with buyers commission” because the buyers agent will make you pay more telling you that your offer is too low, sound familiar to you?

[@mjs3343]

I would never pay any Buyer's fee since I would use an attorney to help me craft an offer after viewing the property.

[@lockup6104]

Time to get a new agent who is retired just supplementing their income. The ones that have been on that fat money train bye bye.

[@jimd421]

The 6% they charge doesn't include escrow fees and a million other fees.I think the real estate commissions are too high.When you look at the price of homes today it should be a lower number in my opinion. With that in mind however i've dealt with seven gables realty an Orange County with an agent named Gilda and that particular case.She was more than worth the fees.She did such an excellent job.I didn't mind it a bit. We refer to several people and everybody's been happy with her.

[@alfredoestrada3737]

Is there a way to only have one realtor agent in charge?

[@MacRogersrealestatebroker]

Yes, it’s called dual agency-one agent represents both the buyer and seller. They’re technically doing both jobs, so they get paid from both sides. But I get the feeling you’re asking if one agent could handle both for a reduced commission, right?

[@jroysdon]

The problem here is that there is a conflict of interest. Actually, the reality is the agent doesn't care about the seller or the buyer, they just want the sale to go through to get paid. But think about how that goes negotiating when the middle man represents both sides, but has a vested interest in the price being as high as possible as they are paid based on a percentage of the sale.

[@MacRogersrealestatebroker]

@@jroysdon true. This is actually one of the hardest thing when representing both sides. Avoiding conflict of interest. As for the "the agent doesn't care...." I'm not speaking for everyone but when I am doing it, I am sooooooo worried about what you just said "conflict of interest". So much so that now, I will refer out the other side to another agent. This is not a popular opinion among real estate brokers but if you ask me I believe it should n't be allowed.

[@Garth2011]

@36:40 he is wrong about a buyer who agrees to 3% with his agent and the seller offers 2%, the buyer agent only gets 2% and shouldn't ask the buyer for the 1%. THAT IS WRONG because the controlling document says 3% so no matter what, the buyer needs to pay 3% to buyer agent unless they agree in writing to change it. In that case, I would say to the buyer, what a dream of a deal that you just saved 2% ! The only time a buyer agent cannot be paid more than the controlling document says, in this case, is if a seller offers more than 3%.

[@TheTruthSeeker756]

Do it yourself. You don’t need a Realtor

[@SelfMadeGrnd]

California is a hot mess

[@TruthFactOC]

We really learned how government policies and corruptive officials ，could destroy a used to be [Golden State ] so badly. We have too many nonsense laws passed without our knowledge, thx to those foolish voters let us suffer high costs and taxes, crime rates, unemployment, traffic problems .

[@bigdougscommentary5719]

Nationwide EINSTEIN

[@MartinSage]

So if I buy a $500,000 home I will have to pay $15,000. I had my RE license in the 80’s and the sales agreement in Ca was 12 pages. Now it’s 50 pages? Nuts. Buying a home should be simple and straightforward. I’ve bought several homes including a $0 down.

[@artimeis]

The funny thing is that they mandate you mentioned is illegal based on the ruling...good luck!

[@lauraleayoung6402]

I think it is the buyer that needs better representation and protection. The NRA squished the for sale by owner portals...which hurt sellers and buyers!

[@Parasefvirte]

Can someone tell me Whom is going to represent a buyer for free? This has to go back to how it was before. This is not going to work out well

[@danpress7745]

The buyer has no agent. Why, agents make $ on the sale $ of the home.

[@civilwolf4843]

Lol you don't need an agent to buy a home. You can go directly to the listing agent!

[@nohemivasquez4909]

@@civilwolf4843It would be like getting a divorce and ask your future ex lawyer to represent you as well.

[@New-bw4kz]

Didnt both commissions always came out from the buyers purchasing price anyways via Loans

[@MacRogersrealestatebroker]

You’re right! At the end of the day, the commissions are usually baked into the home’s price, and most buyers cover that indirectly through their loan. It’s one of those things that’s a part of the overall deal, but it still feels like a lot when you see those numbers! The key is making sure you’re getting value (NEGOTIATE) from the agent you’re working with, whether that’s through their service, advice, or even some flexibility on fees.

[@ernestgonzalez941]

Sample: OLD way when buying on a 500,000 home Seller paid 6% comm (30k) seller netted 470,000 , Buyer was into it for 500,000.. NEW way on that SAME 500,000 home, the Seller now pays 3% comm (15k) nets now 485,000 (higher amount) Buyer pays own comm @ 3% (15k) ADDED to 500K making it 515,000 total cost, A HIGHER amount,, SO NO,,,, Realtors use this lie to justify this new way.. the Home is BASED on Comps of similar homes, not commissions ( I know Commission is Neg.)

[@JimBridgerHarney]

lol, the buyer can finance the agent’s fees as a closing cost if they would like, making the only difference that the buyer controls the buyer’s agent fee now. I’ve hired an agent based on a fixed rate within the amount I intend to spend, with 2.5% if I go over or under a 150k window. Should end up being reasonably fair, and cut the incentive to push me into more expensive options.

[@marcoflores8004]

this guy was great!

[@NickC341]

5-6% is a crime. cost in UK is 1.5-2%

[@NickC341]

also in UK. no property taxes. no has their house stolen ..

[@LizzyGlizzyArt]

Getting a real estate license just so you can do the whole process yourself just to not pay commission is crazy! Gigga chad move.

[@prairiedog6]

The problem with the entire real estate industry is that the real estate brokers want to have a monopoly on all real estate transactions. If I want to buy a house, I should be able to go to the seller, or the seller’s agent, and say, show me this house. I don’t need an agent to represent me, because I’m a sophisticated buyer. I can negotiate price with the seller or the seller’s agent. There’s no need for a buyer’s agent. The seller’s agent prepares the contract and the escrow company handles their closing as disinterested party. Same process if I am a the seller and want to do a FISBO, and sell directly to a buyer. If all these extremely hight commissions are taken out the process, homes will become less expensive. Under the new rules some listing brokers won’t show a house unless the buyer has a buyer’s agent on contract. That’s a failure to perform on the part of the seller’s agent, whose job it is to show the property to any qualified prospective buyer, with or without a buyer’s agent involved.

[@randomthings-0001]

I bought direct from the builder it was easy.

[@stevenyu5384]

Zillow, Redfin, etc. take a junk of fees but fail to disclose.

[@alexiswinter6948]

5 months ago I gave $36,000 to a person I didn't hire, and never met. WHY? Realtors have a big part in the housing market. My house sold in 10 days and it closed 15 days after that. Who makes $36,000 in 25 days? My realtor should have made $4,000 at the most, and I shouldn't have had to pay the buyer's temporary employee.

[@Garth2011]

Why? Because that agent had an unknown buyer and sold your house to him/her. They have lots of other choices as well. Most folks put some value in those costs because they want to make a move this year not next year and they don't want any legal issues later on because something wasn't explained or made aware of to the buyer in writing. Also, your seller agent likely knew his/her business well enough to market your property and get it sold quickly. Don't hear any complaints about the selling price that paid all of those fees.

[@danpress7745]

Geeesh, Sounds like a SCAN written by Lawyers. So, simple, buyer agent gets commision on lowering the sale $ of the home.

[@user-rm8rc1xi8g]

This channel and the guest Realtor are advocating for lawyers because the transaction without buyer representation are ended up in lawsuits.

[@Garth2011]

Yes and NAR didn't help out the agents any...they only covered NAR's tail.

[@greaselighting101]

I love my realtor. We’ve purchased multiple properties and her knowledge of markets is exceptional. Her office handles everything and I don’t have to worry. She is wealthy already and doesn’t need to the commission. She’s always negotiated in my best interest. Worth her weight in gold.

[@bigdougscommentary5719]

Trump is wealthy musk is wealthy, but they always want more.

[@mchristr]

Your situation in no way applies to the average buyer who is looking for one home they can live in. They have struggled to come up with 10 or 20 percent, and now there's a 6 percent surcharge.

[@Lileigh980]

You will own nothing and you will be happy.

[@bigfins215]

40 years in the business and this seems so silly to me. Buyer has always paid for everything. Honest brokers with well informed buyers will understand total cost involved and discuss what is and isn’t negotiable. A well informed seller understands that it’s all about the bottom line. You get what buyers pay for on both sides.

[@bathtubs]

I disagree on timing. People should wait. Houses are to high. At least in Calif.

[@paulgilliland2992]

To me it seems the jury didn’t have any skin in the game if what he’s saying is accurate. And he sounds bitter that the plaintiff open a real estate business. As usual the trial lawyers made out like bandits.

[@jroysdon]

There is zero need for a buyer's agent. All of the form processing should be done online by a computer system. Any legal advice or direction should be coming from a real estate lawyer, not a real estate agent. Real estate agents give bad advice all the time and aren't liable for it; but those they represent have no idea about this. Those buying/selling would be better off knowing they are on their own for legal info and/or could decide to higher a lawyer.

[@Garth2011]

Not all states use attorneys.

[@Garth2011]

The last 15 minutes is pretty much opinion and personal preference. Most of this change is not benefiting the consumer, it is choking them with legalize and dumb mandates.

[@ernestgonzalez941]

NO the Buyers don't like it!!! these guys (realtors) are Now new Car salesman, SLEAZY and want total control

[@MacRogersrealestatebroker]

I've met a few of those agents in my time... and yeah, they definitely exist! But hey, are my only choices really between a used car salesman or a snake? 🤣 It can feel like that sometimes, but I promise, not all of us are like that. There are agents out there who genuinely care and want to do right by their clients. The key is finding someone who’s honest and actually has your back-you deserve better. Everybody does.

[@ernestgonzalez941]

@@MacRogersrealestatebroker Then Please direct this philosophy to London Properties,,Century 21, Compass , Remax and ALL these brokers who have stated that they don't care about the Buyers agents consideration ... It's all about squeezing out every drop !!!! Sales Tactics ensuring max control and keeping the customer in a vise will make the consumer go to Flat rate realty only transation , just wait...

[@marcoflores8004]

keep looking and do some research. you will find that as soon as the agents see that you know some things the greasyness starts to drip off becuase they know they cant swindle you!

[@MetalBum]

And the lawyers get 50% of the settlement. Real estate agents getting 2.5-3% each

[@stevenyu5384]

Hire an attorney? Lol, one sure way to lose a house.

[@lorenzonewhouse6552]

Who in their right mind would want to buy a home now a days. As it is home prices and interest rates are over kill, just ridiculous. You want to be a debt slave, be my guest!!?......................

[@marcoflores8004]

people who want to start a family or who want to build wealth

[@bitkrusher5948]

Just went thru escrow paid a grand to find out it's a no go 1350 month mortgage ....130 went to the cost of house the rest was fees interest insurance etc etc ...only 10 percent of amount paid a month wtf....crooks all thes tie wearing corporate criminals

[@peterpeet4507]

That's y I buy land and slowly build a moderate home. Way cheaper then a house now

[@anthonyld88]

This guy is not fully transparent when he said the fees/commissions are always negotiable. In the lawsuit, they found that over 90% or even higher % of the transactions are at least 5% commission. Most agents would not do less than 5% so it is not negotiable. That was why they lost.

[@Garth2011]

There is a thing as the going rate. Try to get a lawyer to negotiate fees.

[@imageisn0thing]

As a real estate agent myself I have always looked out for my clients interest first. Not all agents only look out for themselves (but there are definitely those that do). This is why you as a buyer or seller must do your own due diligence in choosing an agent. The same way you would in hiring a contractor or baby sitter.

[@humanbeing3337]

Buyers need to stop reacting and work with each other not with the corporations to control the market.

[@ObservaDome]

🧐"Our Philosophy Is Customer First"... The Big "Realtor" Lie🧐

[@nohopeequalsnofear3242]

I'm just not going to use a buyers agent then

[@Garth2011]

You can't. If you want the seller agent to help you, you have to hire that person. If you don't want either, you won't get the paperwork done without help.

[@nohopeequalsnofear3242]

@Garth2011 again..in 1999 I bought a brand new condo. Neither side had a realitor

[@nohopeequalsnofear3242]

@@Garth2011 I know how to fill out forms... I don't need help with that

[@Garth2011]

@@nohopeequalsnofear3242 Oh great. One mistake and the deal could fall through or it might cost you. Hard to tell until it happens.

[@deborahbuffamanti4847]

Maybe the guest or his broker should have trained the agent

[@kathybrady4033]

Sorry but the interviewee sounded totally incoherent and evasive. This change cannot be good for buyers.

[@mr.d7237]

If I’m a seller, I’m not paying a buyers agent. I don’t care what anyone says.

[@Garth2011]

Buyers usually pay enough to cover that expense so, its always been "buyer pays for everything" because he/she brings the agreed price money to the table.

[@scottfranco1962]

This is interviewing the fox how he feels about the henhouse. Realtors have a host of price fixing and monopolizing practices they do. Hiding the buyers agent fees is just one of them. The MLS was designed to exclude non-"licenced" realtors because they would have no access to listings. Zillow and other companies broke that monopoly. The other one is that once you pick an agent to show you houses in a given area, that agent OWNS you. No other agent will work with you. Further, the buyers agent actually used to search for houses for you. That is no longer necessary. The buyers agent does nothing you could not do by browsing though Zillow listings, but gets %3 of your money for doing that (and make no mistake, YOU pay, even if indirectly). Finally, sellers are duped into believing they can't sell a house without a realtor. These days you can list a house yourself and not pay an agent.

[@ernestgonzalez941]

YOU are SOoooo Right, but No realtor will say this out Loud

[@je5406]

Funny. This show almost always interviews the fox.

[@Garth2011]

No the buyer commissions are on the HUD1 statement at closing and its always presented when escrow opens as estimated closing costs. Nothing is hidden. For sale by owner usually doesn't work out too well as sellers can't deal with the public failing to show up with an appointment and then their many questions and further appointments then, no thank you. It doesn't take long and sellers find that they aren't geared for it. Most of real estate is about what you must know, what not to know, what to focus on etc. Sellers don't do well in that area.

[@paradise6606]

Never met an agent worth what they make. They always only have their commission first a forth most ahead of everything. I find they only convolute a traction.

[@Garth2011]

Never met a lawyer worth what they charge.

[@g.i.520]

He is not taking into account the amount of people who are working 2-3 jobs.

[@gregspeth7910]

Agents only care about themselves.

[@ivansanzana8676]

Good luck surviving in Orange County making no money, good luck hiring a lawyer to show you a house and negotiate the contract for you, good luck! Good luck collecting a commission from the buyer. By the way, this sounds a lot like a paid advertising video.

[@ForTheFLOL]

Get rid of this system, we good.

[@ruralangwin]

SPBB? oh come on.

[@simoncourt1]

It's rich this guy saying all this after he has made millions on the old rules.

[@redleo380]

Why do we need an agent? Property transfer really isn't that hard. Unless the government had made it that hard.

[@guineapigzed]

After finding out that my dues went to new suits, no longer a NRA member. This guy is slime. Listen to how he is going to continue as he did before. Just like a used car salesman. Double speak on overtime.

[@Garth2011]

NAR

[@williamtsol636]

👍

[@Mish_the_ish]

in other words its not worth buying a home in the Golden State unless you're a billionaire.

[@MathCrazyProfessor]

This whole thing is garbage. It is a transfer of wealth from younger people to older people. Right now most home owners are older and now they have to pay less to sell their home. That means that buyers are now taking on that cost. It is a transfer of wealth. Do not let this man trick you into thinking it is anything else.

[@Garth2011]

Not so, old homeowners will pay more because the property is worth 10 times what they paid for it. So, even if there is no fee to the buyer agent, it's still 3%

[@MathCrazyProfessor]

​@Garth2011 Not true, the math is simple. The change in law benefits the seller. Suppose someone sells a home for 1,000,000 and they have completely paid the mortgage. If the seller and buyer agents are charging 3% commission then they will each get 30,000. Before the law passed the seller had to pay the 60,000 and the buyer paid 0. After the law the seller pays 30,000 and the buyer pays 30,000. A transfer of wealth from older people (most sellers are older) to younger people (most buyers are younger).

[@Garth2011]

@@MathCrazyProfessor Not if the buyer hasn't got the $30,000. Thats a big order for any buyer to have on hand.

[@MathCrazyProfessor]

@@Garth2011 That is the point. They need to pay an extra amount. It is basic math. The buyers now need to fork out more money that the seller no longer needs to pay. Hence if someone purchases a home the cost of buying increases for them. Most people who want to buy a home tend to be younger and most people selling their home tend to be older. So my point is made. Also I am done replying to this thread. I spelled out the math for you and I hope you are able to understand it along side the conclusion. It is a purely mathematical point, it is not an opinion.

[@Garth2011]

@@MathCrazyProfessor Good to know you are done with further comments. This case is not helping either side, not sellers and not buyers. They believe it is reducing sales prices which won't happen.

[@melissagilbert9654]

Agents are not necessary!!! They’re in a competitive position! It doesn’t work!!!

[@KC-bz7eb]

As an insurance agent, I agree this is good for consumer. But at the same time I have many consumer who takes this to another level, where they take your valuable time and energy, only to turn around and say they will do it themself. Yeah, Thanks for wasting your valuable time and energy to answer all my questions, now I can go do it myself. You know my time is what I count on to make my daily living too. So entitled consumer mind set is also a problem in my opinion.

[@Garth2011]

I have to suggest that commissions with the insurance brokers should or could use the same disclosures. When I am given a set of insurance quotes from a few companies by my insurance broker, I'd like to know which quote is paying the most commission !

[@MAURICZZIO1]

Buyers MUST HAVE THE MONEY to pay the Buyer's Agent before representation. Sellers MAY or MAY not pay for their work. Who works for FREE? NO ME

[@elvozelka3200]

You need to be willing to pay buyer agent if the seller doesn't offer any compensation. You can negotiate $1k or whatever

[@ddlynndesigns]

Nope! I'll go directly to the seller. No agent. FSBO- FOR SALE BY OWNER

[@bigdougscommentary5719]

The plaintiff’s starting his own real estate firm is inconsequential and a useless fact to bring up. The buyer can always negotiate that the seller pays the buyer’s rep’s commission. The ruling ONLY disallows the predetermined fee. Of course’s realtors don’t like this. And the “legal” representation that a realtor provides isn’t legally binding either. Just read one of these agreements.

[@Garth2011]

The largest decline in this is the fact that the MLS no longer will display seller offered commissions to a buyer. So, that means every offer made now will also be accompanied by a request that seller compensate the buyer broker commission. Even then, the seller/buyer agent can negotiate that fee if its less than the original agreement with the buyer fee agreement.