The 21 Mike Team is the 1-stop shop for buying and selling real estate in Northeast Ohio, from helping to prepare homes for sale, to cutting edge marketing and promotion, we help with ALL aspects of buying and selling. We guarantee your home will sell or we'll BUY it. We even offer a service to purchase your buyer's home so that they can buy yours. The 21 Mike Team--a true full-service real estate team that takes the stress out of buying and selling!
Usually it's realtors that are desperate for them to ask you to sign a buyers contract. A seller has a commission in the selling price. Politely say thank you I'm working with someone else now. If you find me the house I want to buy great we have a meeting of the minds and your commission will be paid when we close.
Can't do that any longer. It's now a law that agents must have a signed agreement before even showing a property. Not my opinion, law. Plus, I disagree with the desperate agent comment. We've been using buyer agreements for years. It's smart business, provides transparency, clarity. And we're the #1 Century 21 team in the world! Our agreement has an additional clause that it can be terminated at any time. How can that be a bad thing?
First off Commission SHOULD be the sellers responsibility as cost of doing business of selling their home, I never bought groceries and had to pay the cost of delivery or cost of goods sold, that is for the sellers job to incorporate that into their asking price. Now what are buyers getting for paying a buyers commission, is the buyers agent going to pay for and complete a title search and warrant against any problems, are they going to pay for the buyers costing costs, are they going to stand any responsibility at all for what a buyer pays for or is it a money making scheme to burden a buyer with more expenses and the agent do little to nothing for their commission. What sicko brought about this CRAP.
The changes are now law in most states, so all we can do is adapt and make the best of it. I hope agents, buyers, and sellers can navigate the new "normal"
Trumbul county 90ndays behind on surveys causing some people to lose there loans or have to reapply also making lenders stop lending in a down economy.....another failure to the people and the country TRUMBUL COUNTY.....ask about there septic market ...
I'm just a prospective buyer and certainly no expert, but common sense tells me that with this new required, anti-buyers agreement the number of buyers (and probably buyers agents) will be going down. And if that happens I'd expect prices to go down as well. Also, if interest rates go down I expect there will by more sellers, causing a shift more to a buyers market.
Wow, what a great comment! I love "anti-buyers agreement"! Totally going to steal that, thank you :-) that said, I think buyers are going to adjust to the idea of signing a buyers agreement in the same way that sellers completely understand that they sign a contract when they work with an agent to sell their property. Good luck with your home search! Feel free to reach out if we can help
@@clevelandrealestate I see where Zillow found a way to circumvent the new NAR bs with their 7 day non-exclusive touring agreement. Sounds good to me! And I can't wait to see more of that kind of creativeness from other brokers. Let the games begin!
@@rondorazio4921 yes, everyone has a touring agreement or unrepresented buyer agreement. This gets complicated. Does this mean buyers can just view a home and incur no costs? Can they just go to the listing agent to avoid paying a buyer's agent? Sort of. Most listing agents will charge some kind of fee to either the buyer or seller for handling both sides of the deal, double the liability, etc. Someone will pay for that. If it's the seller, they may be less likely to negotiate the sale price. Lots of variables here. Too much for a reply here, but thanks for your thoughts!
Zillow has a 7 day "touring agreement", meaning the buyers agent can show homes to a prospective buyer for 7 days without an exclusive buyers agreement. You can google Zillow Touring Agreement for Ohio. It's a simple one page agreement with no commitments.
Why would reduced interest rates increase sellers? I think it will increase buyers. I also don’t see a “buyer’s market” anytime soon. What’s the benefit to sell right now unless you absolutely have to? My house is worth $120k more than I paid for it in 2020 and I’m paying 3.0% interest. I could never get into a comparable house for the same monthly note as I’m currently paying. Any profit made off my existing house would get swallowed up in today’s prices and interest rates.
I'm a new Homestar Realtor and just listed my first property. A video on the negotiating stage, what to somewhat expect, what we can use to our advantage and get our sellers the best offer. What the buyers agents will throw at us. I would love some insight into this. Love your videos, and appreciate your experience and insight.
Welcome to Homestar! Congrats on your listing! Glad you are enjoying the videos. Shoot me an email and I will send you a couple of our past videos on these topics. You can also search for content on our channel. We have done lots of videos about negotiating and how to handle multiple offers both as a listing agent and buyers agent. Mike@21mike.com
"Tony" is not good. He takes what you said and starts mucking it up. Nobody wants to here about a "Consumer Guide" rulebook just BE TRANSPARENT and explain to them straight out> "Buyer pays for Buyer's Broker...Seller pays for Seller's Broker" simple as that...
Hey Steve, I like it, nice and simple. But here's the thing: great buyers agents should still be trying to get the seller to pay the buyers agency fee on their behalf. Think about FHA and VA buyers who don't have that much cash. My prediction is that over 90% of sellers will still pay the buyers agent. I guess we will see.
Transaction Broker is what we have in Florida. We do have a single agent agency, but it is against the state law to be a dual agent. If you go into a listing as a single agent with a seller, if you get a buyer who wants to work with you on your listing, then you have to have paperwork signed by the seller allowing you to change to a transaction agent.
@@clevelandrealestate I started off in Kentucky and did many Dual Agency deals up there for about 10 years. That was crazy doing that as you were walking on eggshells every time you talked to the buyer or seller. Down here as a transaction broker, you represent the transaction and have limited Duties to a buyer or seller which include; (a) Dealing honestly and fairly; (b) Accounting for all funds; (c) Using skill, care, and diligence in the transaction (d) Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer (e) Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; (f) Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and (g) Any additional duties that are mutually agreed to with a party. A transaction broker does not have the duties of loyalty, obedience and full disclosure as is the case with a single agent. How will that work when you still have dual agency?
Do you see the NAR August 17th date changing anything with buyers? Will they clam up? Be more skittish? Just shop online and reach out directly to listing agents?
I think you'll see an increased number of buyers reach out to the listing agent directly, but it won't be a significant change. Don't agree that MOST buyers WANT representation? Whether it's an agent or an attorney, I think they do. Yes, a few don't, but I believe they are the minority. Buyers will adjust within 6 months, I think. Initially, many will push back, not understanding why they need to sign a buyer's agreement. My opinions.
The buyers will not want to pay a commission they will want to negotiate with the listing agent instead for a lower compensation. Also sellers will no longer obligated to pay the buyers agent's compensation so because of this it's going to make it harder for the buyer's agent to try to negotiate this agreement. 😢
Hi Emma, SO many videos on this topic! I don't have one specifically on our updated presentation, but maybe consider subscribing and checking out these: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-C_V0_2AZfyQ.htmlsi=JQhQj0-ss8oeK49U ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-lrA42PQ8CWs.htmlsi=g-Nu0JDc3A4mADNh ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PmYwglddA10.htmlsi=2l-jwo6O-eQeGLKN ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Syk1v3hCDAU.htmlsi=cS397tG0PW7eGN_B
Imagine a car dealership, plumber, physician demanding your signature for before they provide you services. I will not let you test drive a car unless you sign here. I will not give you a job bid on your house unless you agree to use me. I will not see you in my clinic unless you pay me up front. Crazy. I've lost too many property deals because of lazy and incompetent realtors.
It's going to be a change in Ohio. In other states, they've practiced use of buyer agency agreements for years. Sounds like you've had poor agents. But aren't there poor car dealers, incompetent plumbers, quack physicians as well? You have the opportunity to interview, even to "buy" those services from other suppliers. Interview first, then hire. And if the service stinks, cancel the agreement. Starting Aug 17, any agent who shows a property to a buyer they represent without having a signed buyer's agreement will be breaking the rules!
What if your realtor told you to not shop before you went under contract? Then the day after going under checked one more place (home bank) and got a rate that’s 3/4 better than the original plus 2100 cheaper. Would you still say it’s a bad idea to switch? Would you say that realtor has your best interest in mind?
Hmm, that doesn't sound good! I'd need more info, but I think what is most important is to know what your purchase agreement (contract) says. Each contract can be different. However, if the seller agrees to allow a change of lenders, you could be ok to switch. The biggest problem I see is buyers switching lenders without telling anyone, which is sometimes a violation of the contract. As always, while I'm a broker, not an attorney, it's best when you have questions on legal documents to consult a lawyer!
the listing agents fiduciary duties are to the sellers. if the sellers asked for feedback, what should we do? we have to be truthful. OLD CAR , Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable Care and Deligence
While true that sellers have never had to pay a buyer's commission, that was never made clear to them and 6% was considered the industry "standard." Hence the NAR ruling and upcoming changes. There's going to be A LOT of sellers listing at 3% or less. A truly competitive marketplace is coming.
I like the non exclusive agreement...agents are lying to me thst i have sign a exclusive...i am full of ire. I am investor ...i can take care of myself. I dont like feeling like i dont have a choice...i am so angry i will quit buying anything in mls...furthermore, if i find a property on my own...i dont want pay commission or put up with realtor. I can live with nonexclusive and property specifics..i give u my name but i am not giving u personal information like dk and ss if i am not turning a offer in. I provide proof of funds or pre-approval letters...u not getting my personal information I okay with p
Hi Debbie, starting in August, the requirement is that agents MUST have a buyer agency agreement signed, but you're right, there are no rules as to whether it's exclusive, how much the fees are, etc. Sounds like you just need to find someone to work with who is a good fit for YOU! Skipping anything on the MLS will reduce your buying opportunities, right? Just like skipping off-market opportunities will...
I enjoy listening to you both! Thank you for sharing your professional thoughts and insights on these new changes and challenges in the real estate industry today! I am optimistic that we will continue to grow as we provide excellent service to our sellers and buyers!👏👏👏
If the buyer refuses to sign the BAA, they should have the option to decline by initialing the buyer's agency agreement form. That also protects the broker's responsibility.
This isn't complicated. The buyer simply has to call the listing agent and then tell them BTW I understand your commission is negotiable and I also understand you are no longer obligated to pay a buyers agent half so your max commission if I buy your house is 3% right?
Mike & Tony I love listening to all your videos! Thanks for all your insightful information and your professionalism concerning the real estate industry! I have been working in the industry for the past 23 years in Cape May County, New Jersey! I ❤️ this profession!
Thanks Debbie! We appreciate your kind words. NJ is quite different than our Ohio markets, that's for sure! Greater Cleveland real estate still has homes under $100k believe it or not!
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It really depends on what your purchase agreement says (it's a contract, so you want to make sure you're not breaking it). Plus before considering changing lenders, make sure you can still be ready for the closing date. I'd discuss with your agent or an attorney. What state are you in?
I’m in Cleveland and this is the 3rd time I’ve been denied a transaction by my broker on the listing side for different reasons… I had promoted a property in distress as an off-market opportunity.. We got under contract and my broker told me a couldn’t work on the transaction because they don’t work with wholesalers. I literally had to step out of the transaction as the listing agent because it was the best offer I was going to get for my clients and we already put this under contract for exactly what they wanted.. I’m out here kicking rocks, thinking this is stupid..and up pops this video. 🙂↕️
Hi, each broker's policy is different. Our brokerage, for example, does not allow wholesaling. Our insurance doesn't cover us. Other brokerages DO allow it. You should probably investigate what your brokerage does allow to see if you can do what you're trying to do. If they don't, check around to see who does allow it.
I always buy from the listing agent to let them make more commission and to make my offer more attractive. Plus the seller pays less commission. Another plus.
Whatever works for you, but I bet you've made some listing agents VERY happy as they collect both sides of the commission, as they are not required to reduce it! And you have no representation....
@@xamatox it varies state by state. In Ohio, we have dual agency where in theory, the list agent COULD rep both parties. But they become quite limited on how they can serve both clients. Some states don't allow dual agency, so the list agent essentially becomes an admin for the transaction
