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My Response to the NAR Lawsuit (Real Estate Is Changing Forever) 

Graham Stephan
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Start your 7 day free trial and get 25% off Seeking Alpha Premium with my exclusive affiliate link at seekingalpha.m... | Thanks to SeekingAlpha for sponsoring today’s video. Let’s discuss the NAR Lawsuit Settlement and what this means for real estate, home buyers, and sellers - Add me on Instagram: GPStephan
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The NAR Realtor Settlement:
What Is The NAR?
This is a trade organization that real estate agents can pay into if they want to receive the designation of becoming a Realtor®. This means they’ve pledged to a higher code of ethics, adopt additional industry standards, and they get access to a wide range of services and forms.
The Current Payment Structure:
The commission is - and always has been - completely negotiable. However, the MLS previously required that the listing agent offer some form of compensation to the buyer’s agent - even if it was just $1. Despite this, most buyer’s agent commissions were listed at 2.5% in the MLS.
The NAR Lawsuit:
The lawsuit alleges the “existence of an anticompetitive agreement that resulted in home sellers paying inflated commissions to real estate brokers or agents in violation of antitrust law. Their entire argument relies on the belief that - if commission rates were negotiated directly by the home buyer, for their own services, commissions might begin to fall as agents compete for the buyer’s business.
The NAR Outcome For Housing Prices:
FOR SELLERS: The only confirmed change is that the MLS is no longer required to display buyer’s agent commissions. This doesn’t mean that sellers can’t (or won’t) pay commissions - but it’ll no longer be a required section to list.
For buyers, it’ll soon be required that they sign a buyer’s representation agreement before touring any MLS-listed property, that specifically states the amount or rate of the agent’s compensation.
The Realistic Changes:
I believe that buyers probably wouldn’t want to pay a cost like this out of pocket, especially when so many of them are already cash-strapped to begin with. This means, any commission would have to be written into the offer and “baked in” to the selling price of the home.
Second, I wouldn’t be surprised if some buyers simply chose to forgo any representation, entirely, as a way to either save money or make their offer more competitive - which, can be incredibly risky.
Sources:
List of NAR Dues and Benefits:
www.car.org/-/...
The Basis of the NAR Lawsuit
www.prnewswire...
The NAR Settlement for Buyers, Sellers, and Agents
apnews.com/art...
The NAR Presidents Resign:
www.nar.realto...
www.washington...
The $418 Million Settlement Terms
projects.propu...
Sellers May Receive Only $13
www.ocregister...
Additional Settlement Terms:
www.veteransun...
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30 окт 2024

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Комментарии : 1 тыс.   
@GrahamStephan
@GrahamStephan 6 месяцев назад
-Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy! docs.google.com/spreadsheets/d/1lcf98InSWCgBionMor1ZCFmX6-brB6EtAiH-nZ18XBc/edit?usp=sharing -Start your 7 day free trial and get 25% off Seeking Alpha Premium with my exclusive affiliate link seekingalpha.me/Graham
@OwenWithAHammer
@OwenWithAHammer 6 месяцев назад
The text in your videos is very low resolution, it bothers me! (example 14:24) It's been like this for a while.
@connorgodfrey
@connorgodfrey 6 месяцев назад
😊😊😊😊😊😊😊❤
@gaelortega4011
@gaelortega4011 6 месяцев назад
Thanks for share your time. I appreciate you
@KYLE_FROM_THE_FUTURE
@KYLE_FROM_THE_FUTURE 6 месяцев назад
Graham, hope you’re having a great day. What’s the best way to get in touch with you to setup a meeting? I have several business here in the vegas valley and want to connect with you. Much obliged, Kyle
@adm.monkey7431
@adm.monkey7431 6 месяцев назад
Are you no longer an agent?
@VictoriaWood-uc6mp
@VictoriaWood-uc6mp 6 месяцев назад
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
@SmithJones-yx1ut
@SmithJones-yx1ut 6 месяцев назад
Given that we are not used to such volatile markets, the fact that the US stock market has been on its longest bull run in history helps to explain the widespread fear and enthusiasm. There are chances if you know where to look, as you noted when I earned more than $780k in the prior ten months. I hired a portfolio advisor because I knew I would need a solid plan to get through these difficult times.
@EleanorShaw-od9dj
@EleanorShaw-od9dj 6 месяцев назад
Please who is the advisor that assist you with your investment and if you don't mind, how do I get in touch if you don't mind
@SmithJones-yx1ut
@SmithJones-yx1ut 6 месяцев назад
It was run by “Tenley Megan Amerson” , who I learned about and got in touch with thanks to a CNBC interview. Since then, it has served as the point of entry and departure for the games we have emphasized. A search on the internet can be done if tracking is necessary.
@richardhudson1243
@richardhudson1243 6 месяцев назад
Thank you for sharing, I must say, she appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
@fadirishmawi1308
@fadirishmawi1308 6 месяцев назад
As a “Realtor” I want to say thank you finally someone explained it correctly this going to show who’s a good agent and who’s just doing the bare minimum.
@GrahamStephan
@GrahamStephan 6 месяцев назад
You got it!
@RahmaniMaadat
@RahmaniMaadat 5 месяцев назад
@@GrahamStephan what about new agents, they don’t have that much experience, how are they going to convince the buyer that there worth it
@Nick-tm2sw
@Nick-tm2sw 5 месяцев назад
@@RahmaniMaadat Just like any other business does.
@doubts72
@doubts72 5 месяцев назад
Couldn’t agree more I had a bad experience buying my first home . The realtor lazy and let me go on my own to a lot of open houses . I was doing the searches for open houses and new sale homes . In between all that I met another realtor that knew the area better and I liked his customers service . He actually shared way more useful information. He put in the effort and said “ why wouldn’t your realtor come represent you,” I was like “ I know right !,” he snatched me away from the younger guy . He was older than the young guy that I got on Zillow . I ended up going with him and left the other younger guy . Not saying that age if a factor, but there’s a lot of lazy realtors that don’t really connect with home owners anymore. I think a lot of those are the ones that ruin the experience and in present time give “ Realtors,” a bad reputation.
@allurefemmecorp
@allurefemmecorp 4 месяца назад
@@RahmaniMaadat new agents should interview brokerages and see in writing which ones have a marketing plan that will help you do so. This lawsuit I think is putting the emphasis on the Brokerages greed; taking too much from agents and not providing them with enough value. I say that as a Brokerage owner now after almost 20 years as an agent. Agents deserve better for what they pay their brokerages in a lot of cases.
@TheCyberdeck
@TheCyberdeck 6 месяцев назад
You changed my whole life I was homeless couch surfing late early 30's whenever I subbed. Now I have my own home some debt and multiple sources of income plus investments. you thought me money I would hide a body for you ..... Thank you for everything you do and keep doing it you do have a good effect on the world
@tatianastarcic
@tatianastarcic 4 месяца назад
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
@berniceburgos-
@berniceburgos- 4 месяца назад
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
@nicolasbenson009
@nicolasbenson009 4 месяца назад
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.
@BridgetMiller-
@BridgetMiller- 4 месяца назад
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
@nicolasbenson009
@nicolasbenson009 4 месяца назад
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
@Michaelparker12
@Michaelparker12 4 месяца назад
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
@TheStormSuspect
@TheStormSuspect 6 месяцев назад
As I’ve finished the video now, I do agree the biggest change will be that some agents actually have to show “here’s why I’m worth what you’re paying me”, and that should hopefully cut out the incompetency in some agents. Sometimes it makes me think some people should retire early in RE. One time I had an older but very experienced agent text me, after we’ve been in contract for weeks and had dozens of communications on the phone, ask me where she can find my phone number, because she “couldn’t find it online”…. I was at a loss for words of the stupidity. I don’t see how she’s going to show her value over me after the changes, so agents like that will lose market share and have to just quit or transition out.
@LIVE781REDRUM
@LIVE781REDRUM 6 месяцев назад
Agent investors are going to be even more valuable. Average agent never even owns a property
@Superdada
@Superdada 6 месяцев назад
That’s funny. Well our agent was so old she had more lipstick on her teeth than her lips.
@Onelightoftheworld
@Onelightoftheworld 6 месяцев назад
@@Superdada😂😂😂
@KayKay14m
@KayKay14m 6 месяцев назад
The seller is NOT going to lower the price if they do not have to pay the realtor as much. They are just going to pocket that savings.
@JasonWalter1
@JasonWalter1 6 месяцев назад
exactly
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
Queue the lawsuits from the buyers that we saw in the late 80s early 90s saying that they are getting taken advantage of and demanding sellers agents cooperate and offer buyer agency again
@Likeaworm
@Likeaworm 6 месяцев назад
There is a reason why buyside compensation was offered out on the MLS and the industry will probably rediscover that was done in the first place 😂
@OtisHumphreys
@OtisHumphreys 6 месяцев назад
Correct. Markets have never and will never be determined by a margin or commission, they are based on what someone is willing to pay for a product or service. I.e. Supply versus Demand Econ 101. (Politics and marketing/media also play a part)
@btafan11
@btafan11 6 месяцев назад
​@@LikeawormThe rest of the world has discovered they don't need it
@JasonWalter1
@JasonWalter1 6 месяцев назад
Biggest winners: listing agents (seller's agents) if more choose to double end, home sellers and real estate attorneys (if we see an increase in listing agents representing the seller and the buyer = double ending). Those negatively effected are first time home buyers as well as FHA & VA buyers who may not have the funds to pay their real estate agent (if the seller is unwilling to pay for a buyer agent commission). So, in other words buyers getting screwed again when we already have high inflation, near record low housing affordability, 7%+ mortgage rates, elevated home prices, etc.
@bdhanes
@bdhanes 6 месяцев назад
Feels like in every story, in every industry, the buyers and the “have nots” are getting screwed by the “haves”. Increasingly Stacking the cards against us. 😢
@mnestlehut
@mnestlehut 6 месяцев назад
100% this.
@breyrey7612
@breyrey7612 6 месяцев назад
@@bdhanes Just try to remember, most of those 'haves' used be on the 'not have' camp as well. Stay with your game plan and don't lose hope - its a marathon not a sprint.
@aarongarmonRealtor
@aarongarmonRealtor 6 месяцев назад
I know I'm going to sound like a conspiracy theorists however, it seems as if big daddy GOV wants more institutional investors to win.
@ObstaclestoOpportunities
@ObstaclestoOpportunities 6 месяцев назад
I agree, sellers, listing agents, loan officers took massive advantage of the market during low interest rates, they knew buyers has more capital due to rates and increase their home values beyond reason and justification. There were multiple factors which set this in motion. Now buyers are in a interest rate market where the prices have not even decrease, a duplex renting for 3K per month 1.5K per unit is on the market for 600K, 700K and even 1M. This math does not add up at all. Regardless the market is entirely crazy, and renting is cheaper than buying. Plus all these is on theory, not evidence based. Moving forward there are many unknowns. I will stay out of the on market real estate market until the correction and if there is never an correction then I'm completely fine. There are other global markets.
@MonicaSzychulda
@MonicaSzychulda 6 месяцев назад
I agree with you, I don't think it will bring prices down and I think it will make it harder for buyers.
@JulioCastillo-j4u
@JulioCastillo-j4u 6 месяцев назад
You definitely have my sub. This content is next level. For me Eledator was the turning point. Please keep doing what you do and keep being you, love it.
@hardyfinancialcoaching
@hardyfinancialcoaching 6 месяцев назад
As a Realtor of over 20 years I definitely appreciate the thought you put into this video. The most important thing you mentioned was that the settlement is still subject to court approval. While things will change and lots of agents will quit the business the ones who stick around will definitely have to prove their worth.
@RideShareRocks
@RideShareRocks 6 месяцев назад
This lawsuit is disgusting and the DOJ made sure it happened. They interfered with the free market. It's a marxist mess! Sellers were always allowed to offer 1.00 to the buyer agent if they wanted to. This attack is about real estate as independent contractors. They want them all to be employees. There never was an Antitrust. This is all bogus!
@hardyfinancialcoaching
@hardyfinancialcoaching 6 месяцев назад
I totally get it. I’ve worked with plenty of good agents and some that were just looking for vacation money. When we are entrusted to assist someone with what is likely to be their largest financial purchase of their life there should be some sense of value provided right?! I take it as a great sense of responsibility when someone believes in me enough with that decision.
@DakotaFord592
@DakotaFord592 6 месяцев назад
Real estate is a perfect job for former sex workers or prostitutes. You you have to see as many clients as quickly as possible. You have to get them in and out as quickly as possible. You have to get the most money as quickly as possible... Some real estate agents will do ANYTHING to sell that house.
@RideShareRocks
@RideShareRocks 6 месяцев назад
@@DakotaFord592 Clown comment of te week.
@ProtoMaxoid
@ProtoMaxoid 6 месяцев назад
@@hardyfinancialcoachingwhat about the ones now entering the profession
@kuyjay9667
@kuyjay9667 6 месяцев назад
For a first-time homebuyer, I honestly feel like the majority of the process of me buying my first home was just myself handling the bulk of the process and negotations. I feel like i’ve spoken with the seller’s agent, lender, and title company more than the realtor has representing me.I feel like in the future, real estate agents representing homebuyers will definitely need to prove their worth once this takes into effect.
@sparksmcgee6641
@sparksmcgee6641 6 месяцев назад
Yep standard realtor. The title company does all the things that people think the realtor does.
@SandyLovesMarc
@SandyLovesMarc 6 месяцев назад
What? I’ve been in RE for 20 years. Never never would I let that happen. My buyer talk with the sellers or sellers agent?? No way. The only thing my buyer needs to take care of is their mortgage cause that’s a private financial matter.
@phillips8366
@phillips8366 6 месяцев назад
Yeah, I second what Sandy said. There’s absolutely no reason your agent should’ve even let you speak to the seller’s agent. You want as much ammo as possible when negotiating and you don’t want to trip over your words.
@Auburnfan2008
@Auburnfan2008 6 месяцев назад
I would fire my agent the second I had to talk to a listing agent
@johnathanbowers5433
@johnathanbowers5433 6 месяцев назад
if all that was true, your agent was terrible. maybe instead of telling them they need to prove their worth, you should know when to fire someone and not put yourself through that misery. victimhood mentality much?
@user-yb6yq7fz1d
@user-yb6yq7fz1d 6 месяцев назад
I wish people would stop saying it's "always" been negotiable. While that might be true, most agents never mentioned that. We need to be intellectually honest here. This typical non disclosure is why the lawsuit was brought and won.
@1999tenorio
@1999tenorio 6 месяцев назад
not true at all. I've always let my sellers know how the commission works and that it's negotiable
@aprilcooke8340
@aprilcooke8340 6 месяцев назад
When a seller asks me what is my commission, I always respond that commission is negotiable and we will go over that when we meet in person.
@brianmathay4088
@brianmathay4088 6 месяцев назад
Not sure what agent you worked with but I have always told my clients that I am open to negotiation. That's why you should always interview multiple agents before proceeding. Even when I knew I was pretty much was going to be selected, I still told my clients that the commission was negotiable. It's just bad for business not to disclose that.
@AlexM-iq3nh
@AlexM-iq3nh 6 месяцев назад
Looks at all the honest good agents saying "not me!"
@tangodown2721
@tangodown2721 6 месяцев назад
​@1999tenorio your sample size of one doesn't make it not true
@theryansimba
@theryansimba 6 месяцев назад
most of real estate agents representing buyer actually don't care about the buyer paying less for their property. It is in fact conflict of interest. I call BS on the word of mouth thing. Most of agents think only about the current sale, and they know this buyer is probably not going to buy another property for a very long time or never. So, yeah, agents will not try to negotiate on buyer's behalf
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
Please don't bucket us all into the same category that's super offensive. I lose sleep at night worrying about my client during and after the transaction especially the ones I warned not to buy the property in the first place. I've talked more buyers out of homes , than I have talked into buying specific homes. Don't hire an inexperienced Agent or one whom needs any one deal to close at any time My guess is with your attitude you hire the cheapest agent you can find or go directly thinking you're gonna save money in which case I love being on the Listing side of these fools because by law, I can't actually do anything other than represent the seller In that case you as a buyer have a lot higher chance of getting screwed because I can't represent you and I'm a better negotiator than you are by a longshot and I'm also better at marketing than you so if you don't give the offer I want I will find it as long as it's a number the market will pay and I've done a good job at marketing the property but you think you're getting a good deal and who am I to tell you any differently? , Listing Agent will be laughing all the way to the bank and so will their clients for the buyers who decide to go direct or end up negotiating with a inexperienced buyer agent at a cheap discounted commission rate you get what you pay for boo I love when an experienced agents come to me to negotiate because it makes it easier for me to garner a win for my seller clients. The more I see the comments on this the more excited I am to transition. At first I felt bad for a lot of buyers but now I'm starting to realize that most of them don't think we're worth anything which makes me even more valuable to my listing side clients negotiating is literally my favorite thing to do in life. that doesn't always mean nickel and diming the other side ... negotiating is an art best acquired over thousands of transactions
@ryangarrard3135
@ryangarrard3135 6 месяцев назад
Being good a screwing people over is not something to be proud of
@jacobmosses4554
@jacobmosses4554 6 месяцев назад
As a former agent we will do everything in our power to get you the best deal . Most the time you’re only gonna be able to negotiate a listing down $10k-50k . In California where the average home is $900k , that only takes around $250-$1250 out of our paycheck. We’re glad to lose that and make sure that you tell everyone that we saved you a good deal .
@tonyhernandez-fivestarreal1712
@tonyhernandez-fivestarreal1712 6 месяцев назад
Not true at all. There are some bad realtors of course, but one deal does not make a realtor. I want to negotiate for you and help you get the best value and represent your best interests. If you are happy, you will refer people to me.
@Mike-.
@Mike-. 6 месяцев назад
Agents would NEVER NEGOTIATE commission. I tried multiple times.
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
I know a lot of agents that negotiate their commission. When I was new to the business I probably would have if I had been a solo agent as I would have been experimenting on clients while I learned basics but I jumped on team immediately with agents who had been doing hundreds of transactions a year for decades and ranked top 20 in nation so that I wouldn't be experimenting on those clients given sale / purchase of a home is typically one of / if not their largest asset I was previously in consulting, and now I am in real estate for the last eight years I kind of find it to be similar to consulting and that if someone doesn't want to pay the amount I need to charge in order for me to see it to be worth my time / experience (my entire extended family is in RE brokerage / construction and development ) then I'm not interested in taking on the client especially given that I know my own colleagues and peers in the real estate business and I know that I provide more value. If someone wants to take a discounted agent im totally fine with that as long as they dont waste my time
@MikeCris
@MikeCris 6 месяцев назад
As a Seller, I've always negotiated the commission.
@1999tenorio
@1999tenorio 6 месяцев назад
not true
@sterlingmarshel6299
@sterlingmarshel6299 6 месяцев назад
@@1999tenorio The lawsuit says different
@1999tenorio
@1999tenorio 6 месяцев назад
@sterlingmarshel6299 then those realtors broke our code of ethics and should be reprimanded.
@sterlingmarshel6299
@sterlingmarshel6299 6 месяцев назад
Remember that this guy is just a RU-vidr. Always do your own research. Do not rely on random people to make big decisions. The idea that everything was negotiable is a complete lie that’s why the lawsuit was legitimate and the NAR was a monopoly. Also, why is the commission based on the gross sale of the house and not the net? Because agents want as much money as they can pull out of a seller. Hopefully the industry will change to à la cart menu or a truly negotiable price
@jamiesouza
@jamiesouza 6 месяцев назад
You do know that agents don’t get paid unless they sell and that the brokerage takes 30%-40% of the commission! Plus all the fees they have to pay every year…I’ve worked with people for months and got paid zero.
@jamiesouza
@jamiesouza 6 месяцев назад
An a la carte menu means a more concentration of real estate in fewer and fewer hands…That’s where this is going! And once that happens the bar to Americans owning their own home will be mostly a pipe dream! It’s already happening.
@Leon_Aldrich
@Leon_Aldrich 6 месяцев назад
@@jamiesouza The brokers/agents also carry E&O Insurance to deal with litigation. I wonder how many FSBO gets sued for non-disclosures annually?
@shurnbrendt7581
@shurnbrendt7581 2 месяца назад
It always has been negotiable. I’ve given friends and family discounts. But at a certain point, you need enough to make it worth the time and risk that you lose money or get paid a very bad hourly wage if issues pop up (difficult clients, bad inspection, title issues). I have lost money and time on several clients who I would’ve otherwise fired if I didn’t care about my reputation.
@mumap5
@mumap5 6 месяцев назад
The last house we bought was an FSBO and we didn't use a Realtor. Everything was handled through our lawyer, the bank, and the title company.
@coye9r
@coye9r 6 месяцев назад
How much was your lawyer?
@jeanneburgess7078
@jeanneburgess7078 6 месяцев назад
Certainly not 25k
@mumap5
@mumap5 6 месяцев назад
@@jeanneburgess7078 not at all
@coye9r
@coye9r 6 месяцев назад
@mumap5 my house was 280k, so a lawyer would have been more expensive for me.
@sjllee2588
@sjllee2588 6 месяцев назад
What is your state? I am just starting to think about getting out of California.
@cherd5343
@cherd5343 6 месяцев назад
People banking $10s of thousands for selling other people's property has always seemed absurd to me. The service should be based on a flat rate....... the current system is more like forced tipping (REALLY huge tip!).
@dogjeepmeat
@dogjeepmeat 6 месяцев назад
I agree or hourly with a list of what they did.
@Pseudify
@Pseudify 6 месяцев назад
I’ve sold a couple homes as FSBOs and tried with a third. My fear as a FSBO seller has been that RE agents will steer their clients away from properties. I know this happens but I don’t know how pervasive it is and how much it really impacts the sale of my properties.
@MrMoonDollar
@MrMoonDollar 6 месяцев назад
It's a good day when we get an upload from both Graham and the Hammer.
@GrahamStephan
@GrahamStephan 6 месяцев назад
Hope you enjoy!
@lethal_talon
@lethal_talon 6 месяцев назад
Buyers agents may end up disappearing. I mean, why not just look for a house yourself, get your own property inspector, then hire a real estate attorney to make sure you’re not getting screwed in the contract.
@staneyler
@staneyler 6 месяцев назад
Haaa, Try it sometime and take out "I won't get screwed insurance"...
@chrisknoblock
@chrisknoblock 6 месяцев назад
Because nothing stopped you from doing it before, yet buyer's agents still exist. There's a value to having an intermediary when you're buying, but unless you're relying on their expertise in a particular niche, the value is not worth the 2-3% they're making in most cases.
@DriveRevive0491
@DriveRevive0491 6 месяцев назад
Nothing stopped you from doing that before, FSBO ring a bell? One thing to note is for sale by owners on average sell for significantly less than properties that hit the market. Also buyers agents are out there vetting buyers working to get them pre approved. They have relationships with lenders and bring serious buyers, in your scenario good luck getting the most exposure in the form of qualified buyers, everyone wants to buy a home but who can actually do that. As a seller how does it benefit us to not have thousand of agents out there finding and qualifying buyers and then directing them to the MLS where sellers go to sell their home. Very short term outlook on this whole situation by most of the public. Real estate is sold the way it is because it’s the most effective way to get top dollar. I’ve listed a ton of properties and had the neighbors come stop me and ask what we are listing at and scoff and say that’s way overpriced but guess what everyone of those sold
@vickilindsey4499
@vickilindsey4499 6 месяцев назад
Not having a quality buyer rep will result in missed deadlines, litigation and failed closings. Additionally, sellers will put themselves at risk by showing their homes to those who have not been vetted. The unforeseen and unintended consequences of the anticipated changes will be far-reaching.
@chrisknoblock
@chrisknoblock 6 месяцев назад
@@vickilindsey4499 Agents will still exist, but they're probably gonna make less money.
@huh9200
@huh9200 6 месяцев назад
appreciate the real estate vid again, throwback to the channels roots
@GrahamStephan
@GrahamStephan 6 месяцев назад
Thank you!
@user-fx5sw4jy7hYz9Hzi
@user-fx5sw4jy7hYz9Hzi 6 месяцев назад
What is the real value of realtor? Showings? They don't tell you nothing about house condition, what to know. All they want to do is sell you a house. All technical stuff like home inspection, the legal contract and build process of of these things are not look through microscope with an agent. You have to do the work yourself. There is no value and there are not a lot of honest realtors.
@d13x001
@d13x001 6 месяцев назад
They're glorified comparison websites. "oh you want these things in a house? I'll run these listings through a filter to give you those things, which I'll present you in a list of results. I'll even make each one a link to view online!" They're redundant and they're now panicking
@aarongarmonRealtor
@aarongarmonRealtor 6 месяцев назад
We are legally bound not to give specifics. I want to help change the negative view.
@Purplesquigglystripe
@Purplesquigglystripe 6 месяцев назад
The one I worked with could get me viewings very quickly and even get an offer in before the open house even started, scheduled appointments for inspectors, and handled a lot of the process overall. I see the value for one in a competitive market.
@ObstaclestoOpportunities
@ObstaclestoOpportunities 6 месяцев назад
There is not a lot of honest people, period. This is not a realtor only thing.
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
You sound like you've dealt with a really crappy agent I'm sorry they hurt you. Majority of my clients are on their second third or fourth transaction (personally or via family) . I tend to talk buyers out of houses more than I talk them into buying them
@mlhm5
@mlhm5 6 месяцев назад
I do not understand why anyone would go into the RE business when unlike before, there will be no commission paid to the agency or broker who represents the buyer (good luck with that and good luck with the listing agent sitting in all open houses). Before the court ruling a 5% commission (or whatever was negotiated) was split between the listing agency and the agency and broker that represented the buyer of the house. If an agency or broker made 50% of their income from listing houses and 50% from selling not their own listings, then after July 2024 they will be missing 50% of their income or more because sellers will negotiate the 2.5% commission down to 1.5-2.0% leaving even less money for the RE agency and broker.
@OptLights
@OptLights 4 месяца назад
The Real Estate industry refuses to change it's business model for the times so it's starting to be changed for it. No one should be paying $20-$30-$40 Thousand dollars to sell their home. It's not your money it's the owners. This new ruling is just the start of whats to come. It's not about taken money from Realtors but when the technology changes everything you most change or get left behine. Sellers don't need two Realtors just one in the transaction. Change don't cry change.
@Dreygonfleye
@Dreygonfleye 6 месяцев назад
I feel like signing an agreement before you've looked at a property is going to get you stuck with an incompetent realtor. How do you know what kind of value and insight they have before touring a property? When you go with them they can point out possible future issues and its really their time to shine.
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
I agree with this as well as an agent I don't even know if I wanna work with specific clients until I've shown them a property or two, or sometimes several I would imagine that will be the same for them as well
@kharithoughts2679
@kharithoughts2679 6 месяцев назад
You can sign for just certain properties or for just the day.
@SandyLovesMarc
@SandyLovesMarc 6 месяцев назад
@@KeepswimmingkeepswimmingI thought that too as an agent. But yesterday I attended the FL Realtor association’s webinar about it. On the form it says the agent can get out of the agreement with a simple written request.
@stefaniamoore4641
@stefaniamoore4641 6 месяцев назад
You meet with the agents first. You do a buyer consultation.
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 4 месяца назад
I feel like neither party is usually down to f on the first date
@AgentJoeyG
@AgentJoeyG 6 месяцев назад
Graham, thank you so much for putting this video together. I thought about making one myself, but I don't have the following you do. You have pretty much said everything my broker and I have discussed in private. So many people, especially the media, have not covered this correctly. I feel like you are pretty spot on with your observation. This video will probably appeal to agents more than anyone else, but I feel it was worth your time to make. Not all agents are as educated on the matter (majority of part-timers) and are making assumptions based on inaccurate news and social media posts. This is my full-time career in which I'm very passionate about. One thing in particular that you touched on is exactly what I tell my clients, I'm here to make an honest living, not make a quick buck. My reviews are more important to me than anything. Thanks again for taking your time to make this video. I know you're a busy guy, but I'd be happy to discuss this or any other matter with you anytime. Keep up the good work!
@brock8232
@brock8232 6 месяцев назад
The sellers and their agent are incentivized to get a good price, and the buyers agent is incentivized to get the deal closed.
@TrueJames7
@TrueJames7 6 месяцев назад
Great video. When I was going through my licensing classes, I remember the teacher explaining that commissions were always "negotiable" but wink-nod it's always 5%-6%
@marciamakoviecki3295
@marciamakoviecki3295 6 месяцев назад
Yes, the local brokerages that control the majority of listings control the market rate for commissions.
@DakotaFord592
@DakotaFord592 6 месяцев назад
Real estate is a perfect job for former sex workers or prostitutes. You you have to see as many clients as quickly as possible. You have to get them in and out as quickly as possible. You have to get the most money as quickly as possible... Some real estate agents will do ANYTHING to sell that house.
@markme4
@markme4 6 месяцев назад
​@DakotaFord592 keep posting this comment, someone is bound to like it
@DakotaFord592
@DakotaFord592 6 месяцев назад
@@markme4 it's true. Real estate is the perfect profession for retired sex workers or prostitutes. ❤️ You have to get clients in and out of the house as quickly as possible. You have to get as many clients in and out of the house. Some real estate agents will do ANYTHING to make the sale. 💕
@Jackson_Hts_Mr_Randy_Watson
@Jackson_Hts_Mr_Randy_Watson 4 месяца назад
@@markme4 Dakota sounds like somebody who got their license and then couldn't close any deals.
@drewdreynolds
@drewdreynolds 6 месяцев назад
As a realtor, you are the first big content creator I have seen to accurately share what is going on rather than chasing headlines and clicks. You communicating in this way is going to save a lot of buyers/sellers from all of the misinformation out there!
@petem4089
@petem4089 6 месяцев назад
Graham, it sounds like incentivizing the sell side to not share with the buying agent, causing more successful agents to be selling agents and encouraging the sale of homes but not the purchase of homes. This along with themes like “renting is cheaper than owning”. Seems to me an attack on the only asset the middle class comfortably had which provided them generational wealth. I personally would like to see a detailed video on inequality.
@garypierce7380
@garypierce7380 6 месяцев назад
The agreement they made is a big mistake. They would be far better off going back to the old way of adding the buyer commission to the selling price. My realtor told me the commission would be less if there wasn't a buyer's agent....we agreed to it....there was a buyer's agent who I was happy to pay because the agents made it all happen and kept me out of it. Agents are a very useful buffer between the buyer and seller.
@Provojuggler
@Provojuggler 6 месяцев назад
Thanks for explaining it clearly, and being able to separate what actually is happening and what you think is going to happen. I really appreciate listening to you because you are able to make those clear lines of facts vs opinion. Keep up the great work!
@GrahamStephan
@GrahamStephan 6 месяцев назад
You're very welcome! Glad it was helpful!
@shortscvscvscv
@shortscvscvscv 6 месяцев назад
Heads up if you’ve never bought or sold a home: When you hear that realtors “ensure a smooth closing”. Its easy to imagine this means getting two people in a room, getting them to shake hands, sign forms, and take pictures. Whats hes actually referring to is a 30-45 day period where the inspectors, township, loan originators, appraisers, title company, lawyers, etc, all scrutinize and dissect the house, its history, past owners, etc etc, to see if the home is actually worth what everyone thinks it is, that its safe to live in, and that its not breaking any codes. Its the realtors job to coordinate all of this, and deal with/solve all the issues that come up, that would otherwise stop the sale of the home. The process doesn’t just end for them once they show a house and an offer is sent and accepted, as many assume.
@TheTomStoreyShow
@TheTomStoreyShow 6 месяцев назад
Will you come on The Tom Storey Show to talk Real Estate?
@SteveKarrasch
@SteveKarrasch 6 месяцев назад
That would be amazing!
@GrahamStephan
@GrahamStephan 6 месяцев назад
Not doing many collabs lately outside of the iced coffee hour!
@zachsmith5216
@zachsmith5216 6 месяцев назад
If commissions are to be paid, then it should be a percentage of the sellers realized profit..not the sales price. If the seller makes money so do the realtors.
@howifixedit.9076
@howifixedit.9076 6 месяцев назад
Great take on the subject. I do think buyer side commissions will go down but it won’t improve affordability. Most sellers will still continue to try to maximize their proceeds by pocketing the savings without lowering house prices.
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
By side commission should be much higher than it is because the cost in both time spent in person and level of uncertainty with each buyer is so much higher than doing a Listing
@howifixedit.9076
@howifixedit.9076 6 месяцев назад
@@Keepswimmingkeepswimming I know many listing agents that work with sellers for months getting a house ready for market. That’s said I do agree with you that buyer’s agent tend to have more hours invested and should be compensated more, there’s so much hand holding in the process with many new buyers.
@simonrbone
@simonrbone 6 месяцев назад
In the UK agent fees are 1-3% (less if they are the sole agent), you don't need any certification to be an agent and you generally only have agents representing the seller so fees are just paid by them on the transaction, not the buyer (though the buyer often has to pay government tax called SDLT)
@mannya_realtor
@mannya_realtor 6 месяцев назад
My thoughts are that this will be a big nothing burger when the dust settles. But there's going to be a tumultuous time in between when everyone tries to figure out how to navigate this new world.
@robinthestate6548
@robinthestate6548 6 месяцев назад
I totally agree with this. It could actually end in the really savvy persuasive agents making even more money because now they can negotiate even higher amounts. The standardization of prices made it easier for the bad agents to make money but harder for the good agents to make a lot. I want to see what will happen, but it will be interesting none the less.
@jcschwarb
@jcschwarb 6 месяцев назад
The primary justification for a RE broker is to achieve a higher sales price than one could get on their own. Today this is not as valid as previously due to ways around discount MLS, cutting seller fees and increasing buyer agent fees. Interesting times.
@HuyNguyen-vn5rp
@HuyNguyen-vn5rp 6 месяцев назад
To my understanding, just because buyer's agent commission is now negotiable between the buyer and the buyer's agent. DOES NOT mean that as a buyer's agent I am required to work for a discount rate or for free. Just by saying NO in a negotiation conversation, is in of itself, a negotiation nevertheless. It may not be the negotiation outcome that the buyer preferred, but again, if it were forced to be so, then that's not a negotiation.
@GrahamStephan
@GrahamStephan 6 месяцев назад
Agreed. Agents should value their time and expertise, if a buyer offers too little - no reason to work with them.
@WeTheeBrutal
@WeTheeBrutal 6 месяцев назад
True, but with the oversaturation of agents, you will have to REALLY show your worth it and have reputation or will be cut short from new agents wanting to glow their clientele.
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
@@WeTheeBrutal well if you want to experiment with a new agent to handle your largest asset then go for it I'm not discounting my rate I already feel like we don't get paid enough especially on the buy side And on the Listing side, there's no way I'm doing both buy side and the listing side jib duties or anywhere near what the media and the politicians commenting with no experience in the business are insinuating. I have no problem switching to a corporate role or fully into law. Consumers are playing themselves if they buy the BS thinking this will bring down home prices or be remotely beneficial to them. This is solely about corporations and government seeing opportunity for them to make more money and gain more control. Be careful what you wish for
@WeTheeBrutal
@WeTheeBrutal 6 месяцев назад
@Keepswimmingkeepswimming oh I'm against this. Buyers are going to get destroyed. But I also know the popularity of being a sales agent from media. You can only go so far into keeping your price before you start realizing it's not paying the bills anymore. So if it's someone's actual full time job and don't have a good reputation or well known network, it's going to be rough because if no one knows you, your just like any other rep to the buyer.
@d13x001
@d13x001 6 месяцев назад
HAHAHA you're not being asked to work for discount or free, you're being asked to get paid what you're actually worth and not whatever your entire industry has decided for us all
@MT-cc2fz
@MT-cc2fz 6 месяцев назад
This seems pretty strategic to me. Big funds bought a ton of housing, and are now looking to dump it, and don't want to pay the buyers agent. I don't think this is about realtors at all. I think this simply has to do with the bottom line. Change my mind.
@matthummel1279
@matthummel1279 6 месяцев назад
So much uncertainty around this but I feel like it will lead to industry consolidation. Only the competent full time agents will be able to itemize and productize their services. This will also mean that the agents who survive will survive on volume more than ever. So, you will have a small pool of agents doing more deals. While there is a lot of confusion to sort out, ultimately this just means there will be less commission to go around and the dominos will fall from there.
@Southwest55Plus
@Southwest55Plus 6 месяцев назад
Finally a video that perfect explains how things actually work! Please send the link to the talking heads in the media. They all seem to be clueless on this subject even though they're spouting all kinds of false ideas on this subject. Thanks for being a voice of reason and truth!
@markojokanovic349
@markojokanovic349 6 месяцев назад
First time on the channel: Subscribed based just on this video. Keep up the good content.
@GrahamStephan
@GrahamStephan 6 месяцев назад
Thank you so much!
@QwayczarMusic
@QwayczarMusic 6 месяцев назад
It will affect buyers, and buyers agents. It will not affect listing agents or experienced buyers negatively.
@LJMarte8
@LJMarte8 6 месяцев назад
It will affect listing agents if they have to do double the work of qualifying buyers, showing the property and more
@daleyfamily2179
@daleyfamily2179 6 месяцев назад
It never made sense to me why I was paying a commission to the buyers agent, whose sole purpose is to work against me for their client. Get, closing costs, paid, lower the house price, fix this fix that, pay this pay that. So I'm paying this person to work against me. Stupid. The argument is the buyer agent brings the buyer. BS. My house is for sale a buyer will come you don't bring them. No one brings me to a car dealership and negotiated my deal. I know where to find a house, I go look then I call the buyer agent and say hey I want to see this house I'm interested. There is no other business were the seller has to pay the other party to buy their property lol.
@sterlingmarshel6299
@sterlingmarshel6299 6 месяцев назад
the listing agent and the buyer's agent are working for themselves to close the deal as fast as possible to get paid. The negotiation is a theater. The Selling agent will convince you this is the best price and the buyer's agent is telling their client I am getting you the "best" price.
@LordCruse
@LordCruse 6 месяцев назад
Thanks for making this graham. I really appreciate the real estate videos you put out.
@seanhassard5668
@seanhassard5668 6 месяцев назад
Finally somebody with some knowledge making a reasonable report on the situation that wasn’t this ridiculous Clickbait stuff that I’m seeing on all these online news sources. Great job Graham. Well put.
@devlin1991
@devlin1991 6 месяцев назад
Commission should be a fixed dollar amount like almost every other service we buy as consumers. Using a % of the home value just seems scammy and incentivises the buyer agents to steer their clients to more expensive houses that may be a worse value deal for the client: overpriced, "fake counter bids" etc
@kharithoughts2679
@kharithoughts2679 6 месяцев назад
Then you offer that on your deals. No one is stopping you.
@focojeepr
@focojeepr 6 месяцев назад
This. Same with property taxes, shouldn’t be based on a percentage. An owner’s appreciation should not be shared with anyone else for no good reason.
@kharithoughts2679
@kharithoughts2679 6 месяцев назад
@@focojeepr Again, then offer that on your deals, no one is stopping you.
@devlin1991
@devlin1991 6 месяцев назад
@@focojeepr I agree on that one. I think it should be a sqft of land based tax. Which also heavily encourages denser housing since going vertical doesn't cost extra tax.
@SandyLovesMarc
@SandyLovesMarc 6 месяцев назад
At least in FL all listing agreements have a fixed price or percentage. The seller chooses. I’ve done both before. Have one right now that’s paying $1600 flat fee to split with another realtor! Has he had one solitary person make an offer? Nope. I agreed to it but nothing. I’ve advertised for him done all the same things I do for everyone else. Video photos social media. It’s the only listing I have not sold. Why? There are other ones exactly the same at a lower price (even after I told him) and paying more. The seller has always been in control.
@cherylhuffman1955
@cherylhuffman1955 6 месяцев назад
I wonder if companies like Redfin were behind this lawsuit-here in Missouri and several other states it is against the law to offer commission refunds. How exactly did this class action materialize-a bunch of KC sellers didn’t just get together and say hey - we’re being screwed. Agency laws have been in effect for many years in Missouri. I practiced here for over 30 years. Our offices commission was the same before the courts required buyers agency. I have a sneaky suspicion some investment firms overall don’t like how well priced a home is when it hits the market as agents have access to the sold listings and if you are good you price it correctly-commissions don’t affect the price like they are trying to say.
@carlosvoices966
@carlosvoices966 6 месяцев назад
Why did you even hesitate about talking about this? This is literally your wheelhouse, and important enough to be something you should feel you must talk about.
@sterlingmarshel6299
@sterlingmarshel6299 6 месяцев назад
because he has friends in the business who make money as buyers agents. He was probably conflicted about giving information that can save sellers money
@iamintractable1805
@iamintractable1805 6 месяцев назад
This has always been about the vagueness of Fiduciary responsibility and how so many Realtors don't understand it. I have always viewed the commission as Selling side / Buying side from a single Fiduciary perspective (seller subagents). That will likely continue, subagent commission will remain in the MLS and the only change is no reference to Buyer Agents in the MLS. Buyer agents will then have to make offers contingent on the redirection of the subagent (buyer side) commission with the permission of their client the buyer. If buyers will not agree to this arrangement then they dont need a Buyer Agent. The seller cost is the same.
@ChristianJaredful
@ChristianJaredful 6 месяцев назад
Real-estate Agents are the "waiters" of real-estate. Id rather walk to the counter to get my food.
@jaskij
@jaskij 6 месяцев назад
For some reason, I'm watching this, even though I don't live in the US. When you mentioned incompetence... every specialist knowledge-based industry has a problem with hacks. From mechanics, through dentists to realtors in the consumer market. And then, in the business market, there are consultants.
@financialnews9151
@financialnews9151 6 месяцев назад
I got my real estate license at 19 and worked in it for years while pursuing other interests. I learned early on that most agents and the industry care more about their own interests than the customer. I am not saying all do but most. I still do it sometimes because I really like the people but never wanted it to be my future. The NAR doesn't care about the customer. The local associations don't care about the customer. Zillow does not care about the customer. This is all of it coming home to roost. I think this is going to create a lot of opportunity but I don't think it is going to be for real estate agents. There is not a chance real estate agents should be getting anywhere near the amount of money they get now. $50,000 on a million dollar house? It is absolutely insane and I am an agent! An attorney on the same deal is maybe making $2,000. The mortgage broker/company, title company, no one is making anywhere near that kind of money. This is the beginning of the end for the real estate agent.
@BobB-z4k
@BobB-z4k 6 месяцев назад
50,000 for a million dollar sale is completely reasonable. Real estate is sales after all
@rypato1992
@rypato1992 6 месяцев назад
​@@BobB-z4kbut really how much more work is selling a $700k house than a $1 million house
@benberk8541
@benberk8541 6 месяцев назад
So did you refund your customers your commissions then? Or did you "work" in real estate for years and never made a sale?
@financialnews9151
@financialnews9151 6 месяцев назад
@@benberk8541 I've sold over 20 million dollars in real estate and these were not million dollar homes. No actual responses to my points. Good luck.
@financialnews9151
@financialnews9151 6 месяцев назад
@@BobB-z4k The mortgage broker is also sales but do they make $50,000? How about the title company? Attorney? $50,000 is crazy. Think about the seller in that situation.
@phillips8366
@phillips8366 6 месяцев назад
I’ve been a real estate appraiser for the last couple of years and I decided to become a realtor recently to learn more about the process. To me, the biggest issue isn’t buyer agency compensation, by far. It’s the fact that NAR is the only game in town. You HAVE to join NAR. They have stifled all competition in a way that isn’t healthy for the industry.
@kyleholmes5624
@kyleholmes5624 6 месяцев назад
Almost all of the "advantages" of a realtor mentioned are all done by 3rd parties and paid for by the buyer in addition to the realtors fees - inspection, appraisal, financing (underwriter), closing (title company). I have personally represented myself as a buyer and seller multiple times. It's really not that hard. Realtors get paid way more than they're worth
@dove861
@dove861 6 месяцев назад
I think a lot of the value of an agent is in the contract itself. Agents use contracts from their state realtor association that cover all of the bases. Some FSBO contracts I’ve read cause me anxiety even though I’m not an involved party.
@kyleholmes5624
@kyleholmes5624 6 месяцев назад
@@dove861 in the past, I have just paid a law firm specializing in real estate to handle the contract portion and it only cost me a few hundred dollars. Lawyers are much better at analyzing contracts. Realtors constantly miss things or give bad recommendations as a result of not having sufficient legal knowledge.
@joshuacontreras3371
@joshuacontreras3371 6 месяцев назад
A common argument and somewhat true. However, usually miss leading by saying it's really not that hard, as that can be put on any professional labor. You have similar arguments within the DIY world, whether working on automobiles or homes. I'm a real estate agent and I also do 90% of my own vehicle repairs and home improvements (including full plumbing and electrical work). Saving me tens of thousands of dollars in labor costs. Especially the plumbing work, they can easily run a homeowner 10-20k for a full 1200sqft ranch home plumbing reno that takes them 4-8hrs to complete. I can do the work "it's really not that hard", but I wouldn't tell people that, as most of the time when I try to walk someone through a DIY they go cross-eyed. And I only know what I know because I spent time learning it and I understood it and thought it worth my time to do myself. Many professional jobs come from a professional needing to redo DIY mistakes. So it really depends on what your time is worth ...sometimes it's worth more to hire a professional.
@QwayczarMusic
@QwayczarMusic 6 месяцев назад
It comes down to whether what you do nets more than an agent (or any other service professional) charges. If you make less than agents make, want to navigate it on your own, and have the contacts and knowledge to get through numerous issues that will absolutely arise when you buy and sell a lot of real estate; by all means, diy it. If you are worried about saving money by not using an agent, because you don't make as much as they do, just become an agent. Then you can make that "easy money". Most people can also hang a ceiling fan, but if you are an attorney, and make 300-400 an hour, what kind of sense does it make to save $100 for an hour by not just having an electrician do it, who will do it right? There are numerous examples, but the bottom line is, even if you can do it yourself, it isn't always worth the time, and they can more than likely do it better if you have a good one.
@kyleholmes5624
@kyleholmes5624 6 месяцев назад
@@QwayczarMusic My issue is mainly how much they make. Inspectors have a set price, lawyers have an hourly fee, yet realtors somehow they they deserve a percentage of the home value? That's insane. I personally would rather pay a lawyer, who has actually gone to law school, to look over the sales contract. Realtors who are supposedly "good" still miss things all the time in these contracts because that's not what their expertise is in yet we pay them 10x more than what a lawyer would cost. It makes no sense. Yes, they do other things, but that's really the most important part of the whole process
@AgiSunflowerVentures
@AgiSunflowerVentures 2 дня назад
In 2023, prior to knowing the depths of the NAR lawsuit, I quit the board of Realtors, which disconnected me from NAR. I was a “listing agent” for most of my 30 year career in real estate. I relied heavily on buyer agents to sell my listings. I am now an independent broker and offer a flat fee FSBO plan with high level professional assistance. I essentially do what I did as a Realtor and save sellers up to 40% with real estate fees, which includes compensating buyer agents. The amount for buyer agent compensation is determined after the seller reviews the estimated net proceeds. I believe my hybrid model will be a game changer with listing and selling real estate. I have to say, I love that I am no longer affiliated with NAR‼️
@MisterEO_YT
@MisterEO_YT 6 месяцев назад
I’m a Realtor, and when I defined this as steering, my peers literally yelled at me and called me a liar and an idiot online 🤣🤣🤣
@d13x001
@d13x001 6 месяцев назад
seems to be justifiable panic that they're reacting in fear 🙂
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
Steering how ? a lot of my clients want to know how much of the commission they'll have to cover That's like telling the buyer to ignore the sales price or ignore the interest rates when they're looking at homes to line up for the next day to view If you're a buyer agent and your client, the buyer doesn't understand what their net cost will be the day of closing and their payments moving forward thus it being important how much of the buyer commission is covered by the seller or how much will be coming out of pocket from the buyer Then the agent didn't explain their job because the part of commission that's paid is just as valuable as knowing the sales price of the home, the age of the HVAC, the age of the roof, the monthly payment, you guys are truly morons While I can see some people looking for higher commissions, as sales people, I've never in my life come across someone only showing certain properties because of the interest rate is more of a hay we're looking at blank this will cost you blank out-of-pocket or looking at blank, this will cost you blank out-of-pocket before you go view the home
@DakotaFord592
@DakotaFord592 6 месяцев назад
Real estate is a perfect job for former sex workers or prostitutes. You you have to see as many clients as quickly as possible. You have to get them in and out as quickly as possible. You have to get the most money as quickly as possible... Some real estate agents will do ANYTHING to sell that house.
@plutofs
@plutofs 6 месяцев назад
"Steering" does have a historical meaning which is not the same.
@jeanah685
@jeanah685 2 месяца назад
I've had agents who were near impossible to get a hold of. Who would cancel showings while I was on my way to one. Not listen to my requirements in the property or not in my price range. Those agents were fired ASAP. Now you're telling me I'm stuck with a bad agent if I sign a contract with them.
@Courtney-Alice-Gargani
@Courtney-Alice-Gargani 6 месяцев назад
I’m curious how much if it does change anything.
@vespaman101
@vespaman101 4 месяца назад
Before: buyer pays seller a price with the anticipation that the seller takes that money to pay off the buyers agent. Now: buyer has to save up another 2.5-3% of a homes price which could be tens of thousands. Buyer now tries to bargain down the cost of the house. This is foolish. Its already hard to save for a home.
@reynolds619
@reynolds619 6 месяцев назад
I just go straight to the listing agent to write my offer
@vahokie
@vahokie 6 месяцев назад
Thank you for finally explaining it like it actually is rather than the clickbait headlines full of incorrect information everywhere!
@jagsterr1
@jagsterr1 6 месяцев назад
This will not reduce prices. Prices are not based on commission they are based on what the people are "willing" to pay. They drive the prices up with multiple offers.
@27photogger
@27photogger 6 месяцев назад
Agree that most buyer agents will need to go to a fee for service, and not just take a chunk of the invested equity we earned
@MateoHall
@MateoHall 6 месяцев назад
Definitely hurts first time home buyers more than anyone. Speaking as someone who’s been licensed for 3.5 years and in the process of buying their first property.
@seankelley9710
@seankelley9710 6 месяцев назад
Not really. Prob just won’t get swindled into a bad deal by a “closer” buyer agent
@sparksmcgee6641
@sparksmcgee6641 6 месяцев назад
How's that? Sounds like a first time homebuyer using a 3.5% down mortgage could use that 2.5% that the typical agent that just a cab service.
@eddiemalvin
@eddiemalvin 6 месяцев назад
Can't the first time home buyers find the house using online tools and simply work directly with the listing agent (dual agency)? If so, they won't have to pay a dime... Or did I miss something?
@floryder8385
@floryder8385 6 месяцев назад
​@@sparksmcgee6641Most first time homebuyers really don't know what to ask for or look for. Has everyone seen more and more videos of horrible horrible new construction? Things don't get checked correctly. Even as simple as flushing all toilets and letting water run for a bit, do you think first time home buyers do that? Yes, there are some very informative buyers but usually not everyone. Let's be practical, buying a first house is and should be a great memorial experience but emotion sometimes clouds judgment. Now, choosing the right agent is definitely important. The same thing can be said in everything, you need to choose a great barber, butcher, cleaning crew, etc...
@marciamakoviecki3295
@marciamakoviecki3295 6 месяцев назад
Yes, correct and that's going to become more common. It's already common in smaller cities where a few brokerages handle 90% of the listings. It's very common for them to do dual agency. There are only a few states that don't allow it, and I bet those states will be quick to change their laws ​@@eddiemalvin
@That_Cyber_Dude
@That_Cyber_Dude 6 месяцев назад
Nah this is nothing big. This will just remove the part time agents. The top Realtors will be fine.
@jefftong95
@jefftong95 6 месяцев назад
You should put chapters for your video
@GrahamStephan
@GrahamStephan 6 месяцев назад
I’ve thought of doing that! That’s why I’ve put captions on screen for each section.
@jefftong95
@jefftong95 6 месяцев назад
@@GrahamStephanI see that. How about chapter time stamps? Would be easier to navigate the video
@codenameexoliby6020
@codenameexoliby6020 6 месяцев назад
Its the biggest sparsely regulated industry. And to your point mocking the idea of a conflict of interest, its a clear conflict of interest and no way that you spin it can avoid that fact
@mitchellbunnell7448
@mitchellbunnell7448 6 месяцев назад
As someone with no experience in real estate, who just finally saved up for a down payment, I feel completely drug through the mud… I know, because of my inexperience in real estate, this crap is gonna put me and probably most first time homebuyers at huge disadvantage. How easy will it be for a real estate pro to outbid a first timer just because they know the ins and outs of purchasing and don’t need to pay a buyers agent… this is so messed up 😔
@d13x001
@d13x001 6 месяцев назад
It's actually in your best interest. The agents are the ones who will have some difficulty as their free cash cow parasitic existense will now be up for scrutiny 🙂 shelter = fundamental human right
@aarongarmonRealtor
@aarongarmonRealtor 6 месяцев назад
It's going to on rough on first-time home buyers.
@aarongarmonRealtor
@aarongarmonRealtor 6 месяцев назад
​@@d13x001That's mean.
@garrydye2394
@garrydye2394 6 месяцев назад
@@d13x001 Agreed except the shelter is a fundamental human right. This is lazy talk.
@SeanBass-jn6jm
@SeanBass-jn6jm 6 месяцев назад
@@d13x001pay for my house then if it’s a fundamental right. In actuality, it’s not a right. It’s earned, just like everything else in life.
@nordicrealestateservices9824
@nordicrealestateservices9824 6 месяцев назад
Graham, your presentation was commendable, offering a clear overview of the situation. However, I would like to suggest enhancing it by discussing the significant value a buyer's broker or agent brings to the seller. By having professional representation for the buyer, there's an added layer of legal protection, significantly reducing the probability of legal disputes. This is particularly crucial for first-time homebuyers who might inadvertently make mistakes and attribute them to the seller, whereas having a knowledgeable agent mitigates such risks.
@GrahamStephan
@GrahamStephan 6 месяцев назад
Great points!
@heyaswinp
@heyaswinp 6 месяцев назад
Average home price in california is 800k. Imaging getting paid 25k for just hours of work. That’s crazy.
@Gomer-lw7rd
@Gomer-lw7rd 6 месяцев назад
Hours of work 😂😂😂😂 hilarious ! Clearly you have never walked a minute in a real estate agents shoes
@Keepswimmingkeepswimming
@Keepswimmingkeepswimming 6 месяцев назад
"Hours of work" are you out of your mind? I want to be upset with you for that comment but my guess is that as agents we have made this way too easy for our clients by working in the back and to make it more seamless for our clients,. But your comment is the exact reason why we're building out a new model that charges a retainer upfront, and then by the hour. I'm interested to see if I make more money that way by people like you who think that we do not work 🤣
@PM-lk9ph
@PM-lk9ph 6 месяцев назад
@@Keepswimmingkeepswimming You really want to enter the world of fiduciaries doing billable hours, the way lawyers do? Enjoy that, as the complaints come in.
@justinzunker
@justinzunker 6 месяцев назад
If you think it's easy, then become a Realtor.
@heyaswinp
@heyaswinp 6 месяцев назад
I think the lawsuit exposed the illegal activities of NAR and realtors. So, I know my argument has some standing.
@franciscoburgos787
@franciscoburgos787 6 месяцев назад
I believe it will just become the norm to sign a buyers agreement similar to the sellers agreement where the agent would ask for 3% +/- of the purchase price. It’s basically what they do now in a round about way. Hourly wages, or flat fees just don’t make sense. What if no home is purchased? And why would an agent be motivated to find you a home if they’re getting paid regardless?
@kharithoughts2679
@kharithoughts2679 6 месяцев назад
True
@okaydude2863
@okaydude2863 6 месяцев назад
I sold a house in Washington last year, I paid out $30,000 just in realtor commissions. I have grown to despise mortgage brokers, realtors and car dealerships.
@OptLights
@OptLights 4 месяца назад
Your right but you got what you deserved because you did not educate yourself before purchasing. You could of paid $10,000 only. Anyway the next time don't use a Realtor. Read and learn for one year before you sell
@cliftonortat513
@cliftonortat513 6 месяцев назад
If the property is hot, and likely to attract multiple offers - I won't bother using a buyers agent. If the seller/listing agent can be utilized as a transaction agent, they don't have to pay a portion of the commission to an independent buyers agent at closing. Consequently, a transaction agent will be more motivated to present and accept my offer over the contracts submitted by other parties (buyer's agents). The caveat, of course, is that a seller/transaction agent may not represent the buyer's best interest in negotiations. But according to my experiences, this isn't any different than working with a buyer's agent that doesn't save you anything and is just going along for the ride, so why bother? From my standpoint, the NAR lawsuit doesn't really change anything.
@chriseden202
@chriseden202 6 месяцев назад
My man. I’ve followed you for years. Been waiting for this video. Thank you!
@GrahamStephan
@GrahamStephan 6 месяцев назад
My pleasure!
@AutomotiveAnonymous208
@AutomotiveAnonymous208 6 месяцев назад
Hey Graham, this is totally unrelated to NAR lawsuit, but this morning I made public a video I filmed the other day of a 2024 C8 Corvette. That’s essentially my review style and an example of what I’d love to do with your Ford GT someday. Anyways, thanks for continuing to post such insightful information and staying relevant in your videos! 😊
@Valenzuela_Moses
@Valenzuela_Moses 6 месяцев назад
Great video Graham! Id like to add, so buyers are aware; listing agents are also going to have the buyers sign a BBA. It's obviously that they will have their sellers best interest in mind, and why it's crucial to hire an agent. Not speaking on this because I'm a Realtor, but because it's our job to protect the Public, and I feel like I should put that out there so they are informed.
@Teresa-o3i
@Teresa-o3i 6 месяцев назад
I live in a condo that is worth $700,000, and the guy next to me has just over half the space, and his condo is worth $420,000. Why should I pay $35,000 to sell while he pays $21,000? Percentage fee of any percent is ridiculous. And interesting enough I've yet to get any agent to answer my question.
@stefaniamoore4641
@stefaniamoore4641 6 месяцев назад
Because your property requires a listing agent to take on more risk. A listing agent will have to spend more money upfront on pictures, cleaning services, marketing, etc. In addition to the extra money, your property will take longer to sell because the buying pool for your property is smaller. On the other side of the transaction, a buyer's agent earns more commission because only a small amount of agents have access to buyers in that price range.
@dogjeepmeat
@dogjeepmeat 6 месяцев назад
It's doesn't actually cost that much more to market or photos. Maybe a hundred more for drone photos?
@franciscoburgos787
@franciscoburgos787 6 месяцев назад
It’s bc of videos like this that I believe people will wake up and realize that they don’t need realtors. They can buy and sell houses on their own. They only reason to use a realtor and the only reason to be a realtor was the MLS. But now with so many ways to find homes, Zillow, OfferUp, Craigslist, etc… you cans find your own home and take it from there. That alone is going to save you approximately around $3k for ever $100k. That’s about $12-15k commission for an avg house in SoCal.
@tonyhernandez-fivestarreal1712
@tonyhernandez-fivestarreal1712 6 месяцев назад
People can do that now. Some people want to be guided through the process others do not.
@gmeztubenation
@gmeztubenation 6 месяцев назад
You don’t need a buyer agent. You can find all the listings online. All you need is a lawyer and a title company
@johnmolina5630
@johnmolina5630 6 месяцев назад
Lawyers charge more than real estate agents since they generally charge by the hour. With how it was before, the seller would pay the commission fee and save the buyer all of those fees. I mean, if buyers want to waste more money, then by all means, go right ahead. I, on the other hand, preferred to save time and money. I went with a buyers agent on our first home who handled a ton of stuff for us. There's also very few buyers who actually know what the heck they are doing. They just pretend it's easy by being cheap. All fun and games until something goes south and ends up costing you even more money.
@gmeztubenation
@gmeztubenation 6 месяцев назад
@@johnmolina5630 I just bought a home the buyer agent took ~30k the lawyer costed ~2k to review everything (by law in NYC you need a lawyer when buying). Lawyer realized the first properties had issues and saved me. He also reviewed and edited the closing contracts and handled escrow. So the lawyer saved me from a bad decision and was way cheaper! The buyers agent was just a glorified secretary to me. I found all the listings on the internet and she just set up the appointments. Wish I could have saved the buyer agent fees.
@zildian1983
@zildian1983 6 месяцев назад
Graham thank you for pointing out the most important fact. The buyers do pay their agent, with the money used to pay the seller. Most cant comprehend this.
@derringer9542
@derringer9542 6 месяцев назад
Lol which comes out of the pocket of the seller..don't be silly
@AdamL135
@AdamL135 6 месяцев назад
Solid Video Graham. As a full-time real estate broker for the last 10 years in CA, good to hear a solid explanation on the upcoming changes in the Real Estate Industry. Change can be hard, but always creates new opportunities. It's about time to weed out the weak part time Agents who should not be offering real estate advice 🙂
@GrahamStephan
@GrahamStephan 6 месяцев назад
Thank you!
@auggieoutdoors3325
@auggieoutdoors3325 6 месяцев назад
The de-coupling of the commission structure is much-needed and long overdue. And it absolutely will result in major improvements to how transactions are conducted. The big problem with the existing model is that the co-op fee doesn't discriminate based on the agent's experience or value they provide. Lazy, unethical, & unprofessional buyer's agents are compensated the same $ rate as the competent & knowledgeable ones. This incentive combined with the low barrier to entry keeps the agent pool full of low quality participants. 74% of agents in my metro area closed between 0-2 homes last year. These folks need to find alternative careers or go work as assistants for the top performers
@Zsule
@Zsule 6 месяцев назад
AS a buyer, I'm not signing any contract just to look at a property, and I'm not paying a commission to purchase a property, that responsibility lands with the Seller whom contracted to sell their property with an Agent. They have the choice to sell buy owner which I would do if I was selling a house. It's easy, just go to the title Company and get the paperwork. it's free.
@Mynameisjoof
@Mynameisjoof 6 месяцев назад
Super interesting topic. Glad you tackled it!
@GrahamStephan
@GrahamStephan 6 месяцев назад
Glad you enjoyed it!
@NeoRazgriz
@NeoRazgriz 6 месяцев назад
Selling prices are so high because people don’t understand the term “value” anymore. Selling a 5 acre property with a trailer home on it for +$475K calling it a “fixer-upper” (because it’s not live/move-in ready) is retarded if not very insulting.
@Thefunone88
@Thefunone88 6 месяцев назад
Lets ask the question that nobody is asking..what was this lawsuit trully about..it def wasnt about the people
@jacobdavid3183
@jacobdavid3183 6 месяцев назад
as usual great job explaining what is actually going on. as an agent I think this is good. it will help get rid of all those agents that do bare minimum
@no1553
@no1553 6 месяцев назад
Agents are unnecessary middlemen. They’ve monopolized the process of buying/selling a home to the point where it isn’t feasible or realistic to do so without an agent
@Thewizzard15
@Thewizzard15 6 месяцев назад
Anyone can do it 😂 if you want to buy a house or sell a house without an agent you can do it.
@antoinedemm7533
@antoinedemm7533 6 месяцев назад
Interesting comment coming from someone who obviously has very little knowledge concerning real estate or what a monopoly is... many people sell real estate without an agent, people choose agents because they see the value of using one whether it is to save them time, money, or guide them through a complicated process.
@stevetse5603
@stevetse5603 6 месяцев назад
No one is buying a house right now. Mortgage rates just jumped today because of CPI went higher. So much for "Date the Interest Rate Marry the House". The Interest Rate just broke up with you and the House just Divorced you. The bad money will lose their house.
@FredMeyer-no3ji
@FredMeyer-no3ji 6 месяцев назад
You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K in a meme coin from just few months ago and now they are multimillionaires.❤
@bflamm86
@bflamm86 6 месяцев назад
Did you just rediscover the secret the rich intended to keep from you to keep people broke and dependent on government
@joseh3564
@joseh3564 5 месяцев назад
That's always been the case. 80%, 10%, 10% rule
@JustinEasley
@JustinEasley 6 месяцев назад
I love this! As someone who has worked in real estate and seen how common it is to pay out thousands for an agent to do the bare minimum this will help push them to do a better job or find another job. We live in a time where the average person can do their own research easily and just pay someone to inspect the property and do paperwork. The fact that agents would often withhold properties that fit the exact criteria of their client solely based on a low commission payout is disgusting.
@louisianabeast
@louisianabeast 6 месяцев назад
Still liking. I'm currently competing in my competition. It's pretty tough right now. Hope you doing well man!
@GrahamStephan
@GrahamStephan 6 месяцев назад
Good luck!! Thanks so much!
@brounoejereonyeoku6391
@brounoejereonyeoku6391 6 месяцев назад
hey Graham I'm 18yrs old and I want to know if can you talk about REITs, Aristocrat stocks, and Covered Call ETFs. I'm trying to diversify my stock portfolio but I need these topics to be simplified. Thank you for the videos, you've helped me in my investing journey. Wish you the best in life.
@inyagirlsdms7770
@inyagirlsdms7770 6 месяцев назад
wow thankyou for this info
@GrahamStephan
@GrahamStephan 6 месяцев назад
Glad it was helpful!
@Gdub33
@Gdub33 Месяц назад
So as an appraisal management company manager, I'm confused on how we are going to move forward. Are the appraiser's going to now need to count agent concessions into their report in order for the appraisals not to come in under value due to the agents commission being baked into the sales price? That is a dumb idea and is going to create a bunch of confusion for us and the appraisal industry. Edit: Thank you for the information, it was very insightful!
@guyaaz
@guyaaz 6 месяцев назад
most buyer's agent(s) don't do much other than write offers.
@petergoodman1337
@petergoodman1337 6 месяцев назад
As an ex broker, my first thought was the Big home builders and savy sellers will use this change to have an unfair competitive advantage. They will simply advertise a 3% buyers agent commission upfront if the buyer wants an agent. If the buyer chooses to have no agent they use this for closing costs.
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