I am curious to get the take on the real estate market and the lawsuit that was just settled. Apparently you can now negotiate you're the commission rate........on the surface, it doesn't look good for realtors but I don't know enough about it and wondering what this will do to the industry. "If the settlement announced Friday is approved by a federal court, the standard 6% commission goes away. Sellers would no longer have to make a compensation proposal to prospective buyers and their agents. Critics have said the encouraged brokers to push their clients toward more expensive properties. Another new rule would see homebuyers having to sign an explicit deal with a broker before they start working with one — something experts say would lead many homebuyers to forgo using brokers entirely. The new rules would kick in within months of approval, currently expected around mid-July." https://www.nbcnews.com/business/re...iation-realtors-settlement-changes-rcna143634
You should know: Commission, and who pays it, has always been negotiable in real estate transactions. Who pays it (buyer or seller), how much, etc. I just bought a property that the (cheapskate) seller used a listing agent with a flat fee. The seller did most of the work and their agent got $250, total. When I've sold properties, I've paid buyer's agent bonuses to the buyer's agent. The agent doesn't have to disclose that at all to their client (ethically they should, but that's their responsibility). But it certainly drove more buyers to my properties because the agent wanted more $. Always read any contract before you sign it. You may be surprised by a few things. Also note that a 'Realtor' is a membership-only group of licensed real estate agents. You can be a real estate agent and opt not to join the Realtors.
As @Xerobull noted, commissions have always been negotiated. 5% has been the common standard. I believe the biggest difference is that commission rates are no longer posted until after the sale. Also I believe buyer agents are now required to go under contract. Personally I think the Real Estate agent needs to go away and only have Real Estate brokers who have employees do the leg work. Buyers should employee Buyer agents if they wish to do so. There is still immense value for Buyer agents, unfortunately the whole industry is filled with RE agent hacks who have no business in the industry.
It was always a scam. There's no way real estate agents do work that's worth that amount of money. Have a set fee and an hourly rate just like other professions. After all, the majority of buyers find their homes via the Internet. It shouldn't cost 5-6% of your home's worth to put up some photos and work the process. You can put the photos up yourself and a freaking lawyer is cheaper than a real estate agent on commission. On the other hand, who is going to lease all those BMWs and Mercedes now? Will aging hot chicks who partied too much in college ever be able to find a similar paying job? Will those obnoxious billboards that feature head shots of real estate agents no longer be available as we're driving down the road?
There are a lot of really crappy realtors out there, but a good realtor is worth it IMO. I heard that 80% of houses are sold by 20% of the realtors and visa versa. I've worked with great realtors who call me multiple times a day with updates and have multiple showings every day and get a good offer in less than a week. And I've had realtors who have literally done NOTHING. When I look for one, the only thing I care about is how many houses they sold last year. No friends or family friends. No rookies who just got their licenses last month. How many houses have you sold this year?
100% - the ones who hustle and have buy/sell the most to have the saavy to help their buyers and sellers are worth it. In any market they help you understand where you need to come in, what you can ask for, etc. In our two home purchases they have been really valuable IMO. Then you get the people that are in it because it's lucrative and low barrier to entry that don't really know what they are doing but get some business that falls in their lap from friends and family. Stay away from them.
I'm a realtor, its always been negotiable... The better agent's wont work for less than the 3%... I won't unless its a friend or family member. Not worried about it.... I do my due diligence and make sure my clients get the best results possible.
This is long overdue. Paying 6% commission to sell your house is ridiculous especially at 2024 prices. Can you list your home on the MLS or HAR without a realtor? As long as you can post the ad yourself you don’t need a realtor.
Respectfully, you might want to think about this one. The last thing you want is a realtor reaming you on charges because you're picky and want to look at a lot of houses, or they are doing a lot of faux-paperwork. But I agree, the majority of realtors are just skimming off of people's hardworking dollars as a side hustle, driving around in their Range Rovers paid for by people's equity. That's true for so many industries though. Good help is hard to find. Incentives run the world.
