Chrishaune
Veteran
You know they are going to shut it down when too many folk.......
get into it.
get into it.
Are realtors done? No more 6% commision
- Thread starter djthegreat88
- Start date
dj-method-x
Superstar
People are celebrating but this actually won't change much. When you dig into the details the changes that will happen are very minor.
Too many part time realtors. there are more realtors than house to sell/buy. Not to mention how incompetent a lot of them are. This was bound to happen
Damn that sucks for them....Back to bottle girl/stripping they go I suppose
Petty ass
Petty ass
This is my current train of thought. Attended a meeting today and the general consensus is that there will be a change, but things will more or less function the same way. The primary change is that listing agents can’t discuss buyer agent compensation with the seller. However, buyers and their agent can.
Numbers will just be in different places on a settlement statement. Time will tell though.
ogc163
Superstar
There was never a barrier, it’s always been what you can negotiate. The problem was that the realtor organization mandated that their members require at least 5% seller commission, and they weren’t allowed to show certain homes if the commission structure deviated from their rules, that was wrong.
A lot of buyers are going to get screwed because no one will be looking out for their interests if they decide to rely on a seller’s agent. Lawyers can represent clients as well but many don’t have the deftness to get past certain impasses in representing clients, pushing paper is easier. They for dam sure don’t like touring what can be dozens of homes.
To survive people will have to change their strategies.
For me it’s always been
the NAR because they discriminated against black folks and were against fair housing legislation.People need to realize realtors are just an organization that you join. Real estate brokers and salespersons are licensed by their respective state, and some join the realtor organization.
When my parents bought their crib, I thought they were totally useless, considering you can find everything about the house online
In reality, you just need the buyer, seller and the buyers lawyer and the sellers lawyer. Max. That's it.
The realtor didn't even find the house, my mother's coworker did. Then we had a home inspector who basically told us which house to purchase, and which one not to.
The home inspector is the most useful in the entire process and gets paid the least. ($3-400 a house ain't bad though)
In reality, you just need the buyer, seller and the buyers lawyer and the sellers lawyer. Max. That's it.
The realtor didn't even find the house, my mother's coworker did. Then we had a home inspector who basically told us which house to purchase, and which one not to.
The home inspector is the most useful in the entire process and gets paid the least. ($3-400 a house ain't bad though)
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I’ve been watching a lot of economy and housing podcasters since things went crazy trying to figure out what’s going on. One good channel is Melody Wright. She does actual research, she doesn’t just walk around a neighborhood and blabber for 20 minutes.
Her old job was coming up with ways to make real estate sales process more efficient. She said every time she came up with a product she’d get bought out then the customer would bury her idea. The system has been intentionally sucking money out of sellers and buyers and they want it to stay that way.
Prices are just so high I guess the government got desperate to find any ways it can to lower costs
EDIT: the video above is I think the one where wshe says she had reports that a lot of Chinese are dumping property in California, she thinks because of margin calls.
Her old job was coming up with ways to make real estate sales process more efficient. She said every time she came up with a product she’d get bought out then the customer would bury her idea. The system has been intentionally sucking money out of sellers and buyers and they want it to stay that way.
Prices are just so high I guess the government got desperate to find any ways it can to lower costs
EDIT: the video above is I think the one where wshe says she had reports that a lot of Chinese are dumping property in California, she thinks because of margin calls.
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The bolded is factually incorrect. That has never been true on a national level. That isn’t even close to what this settlement is about.There was never a barrier, it’s always been what you can negotiate. The problem was that the realtor organization mandated that their members require at least 5% seller commission, and they weren’t allowed to show certain homes if the commission structure deviated from their rules, that was wrong.
A lot of buyers are going to get screwed because no one will be looking out for their interests if they decide to rely on a seller’s agent. Lawyers can represent clients as well but many don’t have the deftness to get past certain impasses in representing clients, pushing paper is easier. They for dam sure don’t like touring what can be dozens of homes.
To survive people will have to change their strategies.
For me it’s always been
People need to realize realtors are just an organization that you join. Real estate brokers and salespersons are licensed by their respective state, and some join the realtor organization.
I can’t speak for each state, but in GA, that practice has never been widespread covertly or blatantly.
In fact, GA is actually one of the handful of states that uses a Buyer Brokerage Agreement that outlines compensation to buyers agent. Realtors have always been required by GA law to be open and upfront about what their requested compensation is.
Sellers/buyers have always had the power to negotiate. There are plenty of agents that will happily take business for below 3%. There are also Realtors that bring enough to the table to warrant 3.5-4% for their commission.
Ultimately, although I find these discussions interesting, I don’t believe it is necessarily worth the debate. The vast majority of homes are bought and sold with Realtor representation and this settlement won’t change that significantly. The average seller doesn’t have the time, capacity or knowledge to list and market their property for top dollar. The average buyer has no clue how to navigate the process at all.
I tend to find people that have a negative view of Realtors or have had a bad experience likely ended up with our industries version of a used car sales man. So I get it.
As long as it is universally understood that you shouldn’t expect the same level of service or reliability when buying a used BMW from a hole in the wall car lot versus going to a certified BMW dealership. Same industry, two totally different experiences and levels of service. The same is true for real estate.
Kurt off them percs
With Booker T wife
Whelp that's the end of that chapter.
Crazy because everyone on their momma was out there trying to sell Terrible homes in terrible areas.
I seen this IG video that kept mentioning 20 mins from Philadelphia in NJ. bytch was talking about north Camden
Crazy because everyone on their momma was out there trying to sell Terrible homes in terrible areas.
I seen this IG video that kept mentioning 20 mins from Philadelphia in NJ. bytch was talking about north Camden
This is always what it's been. The LAWSUIT was because the National Association of Realtors MANDATED that 6% was the floor for all their commissions, which is against anti-trust law. It just means 6% can't be their mandated floor. You DO have to be upfront with commissions and what your take is. Your brokerage may have a minimum of 3% but if it's a $2.2 million home they might bust down to 2.2% just to keep the client happy and have the sale in their bag.
But Brokers CANNOT collaborate with other Brokers and share or collude on commission rates. That's illegal and that's what this judgement was about. There's not a thing in it that says brokers can't charge 6%.
The problem is people working through shyt realtors as you illustrated. A good relator should be building a relationship with you. Sending weekly emails or texts, setting monthly meetings on how in or out of the market you are as a buyer. And for sellers, a good realtor is all about getting out there and staging the home well, making fire videos, etc.
When I was looking for my crib, I went with one of my girl's friends and she was fukking TERRIBLE. We said "newer build, single family and preferably a finished basement." This chick showed us a 1989 townhome with a semi-finished basement in an area we said we had minimal interest in. THEN she never fukking followed up with other properties.
It was TERRIBLE. But I've had much better experiences since.
This is the major piece of misinformation being spread through the media. NAR has never mandated a 6% commission. The same is true for Realtor Associations nationwide. Brokerages don’t negotiate commission. Independent Realtors do. The settlement clearly states, and all parties have agreed, that NAR does not mandate a 6% commission.
In regards to the example of $2.2 million dollar home - most luxury agents actually get around 7% on average on those types of deals. Marketing a multimillion dollar home is very expensive. There are agents that easily spend $5-10k in marketing luxury homes. If the home doesn’t sell, that money is gone. Big risk, big reward. And as I stated earlier in the thread - the luxury market will be the least impacted by this settlement. Those sellers/buyers are going to continue to use their Realtors and will happily pay them.
The funniest thing about the initial lawsuit is that the lawyers that stated the plaintiffs paid too much in commission are now arguing that they (the attorneys) are entitled to 40% of the settlement money (an estimated $80 million). The irony lol. But let them tell it, Realtors are the greedy people.
Outside of that, I agree with a lot of your post. Believe me bro, we can’t stand the terrible Realtors in the industry either. They are the same ones that don’t answer their phones, have no knowledge of the process, probably working a 9-5 and doing real estate on the side, lack professionalism, and I could go on and on. Would love if they could all be pushed out of the industry.
I have heard so many stories like your experience. Again, those types of agents don’t represent the majority but they do put a big stain on the industry.
