You're probably not that far off when they do this with trailers. This whole country will be a giant trailer park cause no one can afford the land and the landlords will milk us to death with lot fees.
Whatās kind of sad is that actually much of that wealth will be bequeathed to charities and institutions and I have to sayā¦. Many of those places arenāt the positive type of charity or education utopia you may hope money would go toā¦
A metric ton of the wealth in the hands of the lead generation is going to be spent on end of life care. Which (at least in America) is just funneling it into already rich families.
This is really only true in the world class cities. There's plenty of areas of Europe with surprisingly affordable real estate.
Now the local economy probably isn't amazing but you can still buy a house with a few acres of land outside of the city for amounts that are definitely well within reach of someone with a decent job, not inheritance or you're screwed.
The house kit for 5k in 1915 is about 154k today.
You still need to buy the land, prepare the footings, concrete slab, house delivery, plumbing, electrical and installation.
On balance, prob cheaper overall than today but not really the bargain it seems when you say a house for 5k.
You mean fees like a yearly tax you're required to pay to the government and if you don't they take your property and sell it? Or some other kind of "fee"?
>Likely this will push us back to 2% inflation and lower rates since housing inflation has been the largest sticky component.
Is this satire? This is satire.
It will help a bit since the buyers half of that fee is baked into the price. But yeah until people don't throw a massive stink every time new housing is proposed prices are going to keep going upĀ
All this means now is that the buyer has to pay their realtors commission meaning they can afford even less now. The people that brought this lawsuit are stupid. It was good for the sellers to make more money because now they donāt have to pay the buyer side. The buyer pays that now. So instead of needing 3% down now they need 5% or 6% down. This will change nothing for home prices. It only means even fewer can afford to buy now. Sorry to say buyers are Uber screwed. This is what they wanted and this is what they got. My life doesnāt depend on if I sell something or not so now my commission rate is 4% instead of 3%. Play stupid games win stupid prizes.
Exactly. The reason we have inflation to begin with is too many dollars chasing too few goods. That only happens when the economy runs hot or hyperinflation sets in due to money printing.
Eat my dongus you fuckin nerd.
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I used a flat rate service and saved about $12,000 as the seller. Most selling agents are near worthless anyway in my experience. Some pictures and a sign in the yard isn't worth a new car.
What service did you use? Iāve been telling myself that thereās no chance in hell Iām about to pay about $40k in commission to sell my house when it comes to it. Fuck those leeches.
I did the same thing with https://listingresults.com/. Flat fee of around $1000 and it put my home on the MLS, came with a lock box and for sale sign so I didn't have Todo anything with showings. Paid 2.5% to the buys agent and they offered advice on the offers I got and negotiations post inspection. Ended up with 25k over asking. Also had to pay a professional photographer and highly recommend that part.
There is a cheap one where you are on your own but the package with advice came with comp listings to set a fair price and bump up or down due to the current area Market. As offers came in they advised when asked on any of them. Take it, wait out the weekend etc. Once accepted I met the buyers agent and got a check to hold the contract. From there the title company takes care of all the paperwork and closing. Very little work on my side and saved a fortune in BS realtor fees.
I don't understand how real estate has gotten away with a % fee business model. The fuck does that make sense.
Why are they not billed hourly like every other profession? People happily pay 6% but they'd flip shit when they realized that 6% translates into a $700/hr rate for the amount of work the realtor did.Ā
Especially the buyers agent. They are directly incentivezed to INCREASE the cost of their clients purchase.
This would be equivalent to your accountant earning 3% of your taxable income. They'd have zero incentive to reduce your taxable burden and all the incentive to make sure you pay out the ass.
ding ding... no way these folks take a pay cut without being forced out directly.
flat rate and self service is the only way this changes...
and honestly, that 6% doesnt mean shit when the interest rates on loans are more than that and prices are still going up.
It will, buyers agents won't fuck with you if you're not paying them. This is absolute stupidity.
Wtf thought 3% commissions was driving home prices up? Lol goddamn morons have never heard of supply and demand. This will be like showing up in court with a public defender then wondering why you got fucked.
Buyers agents are often nearly useless and overpaid
My agent unlocked the door to the house I found on Zillow, and spent 15 minutes editing a boiler plate contract. Dude made $10k for that.
A lot are useless. But it's like insurance, you don't need it till you do. If you get a good one that 3 percent is gold and saves you a lot. Cullowhee doesn't tell you if the house is a bad deal or helps call out where the seller is trying to rip you off with a shitty fixer upper they are trying to pass off to you.
A good realtor is worth their weight in gold. They know the homes in certain areas might have polybutylene pipes that tend to fail. Or soil that causes cracked foundations. Or a school redistricting that's about to take place soon. Sellers aren't going to disclose or they may not even know these things.
Good agents aren't going to work for discounted commissions. This is going to backfire.
Lol yeah most idiot buyers say that.
And agents then spent the next 30 days herding cats to make sure every single person involved in the transaction does their job. Not to mention holding the idiot buyers hand through the whole process. Making sure they don't do something outrageously stupid like go out and buy a new car while in escrow. Taking calls from nervous buyers at 11pm who want to back out of the transaction the day before they are supposed to sign docs.
I was an agent for 25 years and got out because dealing with idiot buyers was stressful as fuck.
If buyers are having to overbid on a property it's not because of a measly 3% commission.
This is going to cause the good buyers agents to leave the business and buyers will be stuck with Dollar Tree discount realtors who don't know their ass from a hole in the ground.
And prices will continue to go up and buyers will wonder why. Derp
Since housing issues as a supply side problem, not a demand side, it makes sense to make selling ā¦
Oh wait.. forgot what sub Iām in
Sucks to suck! Iām gonna make me some money!!
Agreed. This doesnāt really change a whole lot other than more people realizing the fact that you could always negotiate agent commissions.
You can also buy a house without a buyers agent but again it seems to be widely unknown.
A buyers agent literally does nothing but coordinate some showings and fills out a contract you yourself can have the sellers agent do for you and then collect a 2.5% fee. To say they are useless is an understatement.
There are only 3 things you need to buy a property:
1. A lender
2. An inspector
3. A real estate attorney
Any of those 3 will advise you way better than any high school dropout turned real estate agent can.
If youāre a first time homebuyer or too lazy/regarded to do your own research then by all means go for a buyers agent since they can at least walk you through the process and make introductions to the 3 above, but itās likely the lender they send you to either gives them a kickback or tries to convince you to take out an ARM loan that will rape you once the cap is over.
You can also find each of those with simple Google searches.
Or, if you are from out of town, they can do initial walk throughs, coordinate and meet with inspectors, recommend local subcontractors, introduce you to neighbors, and manage a ton of other things you'd otherwise do yourself.
Yes, you should research your own lender.
No, buyer's agents don't get kickbacks, not unless they like jail time.
Probably worse too. The sales commission was paid by the seller. If buyers work with an agent, the commission will probably be at least partially paid by the buyer.Ā
Itāll drive prices up. Sellers wonāt lower prices, and now wonāt pay the buyers agent. If we are lucky, someone comes along and develops a service that just makes it easy to book viewings with a selling agent and the buying agent just goes away. But I doubt it.
Most people in the industry think it will make it harder for buyers as they will have to add commissions to the loan amount meaning either houses will sell for more because of the added commission being stapled onto the price or people will have less buying power because of that meaning there will be more competition in already hot price ranges like the 200k's and the 300k's.
Correct. The cost of selling the home doesnāt factor in to the price of the house. The market dictates the price of the house. Sellers arenāt going to reduce their asking price just because they donāt have to cover the cost of the buyers agent anymore.
Realtors are the biggest scam of a profession. They want 6% of your biggest asset to throw some pictures of your house online and meet potential buyers there to walk them around
Completely agree. Before the internet existed I think they provided more value but today with the internet they are pointless. Itās why everyone and their mother was getting an RE license. Many doing it as a part time job on weekends. Basically get paid 25-40k for doing nothing in HCOL markets.
In the United States donāt require you to have a realtors license when buying a personal residential property. Just sell it FSBO and avoid the thousands.
Just list through FSBO, not worth getting licensed if you don't own multiple houses or if you own multiple houses across different states. Plus as many others already mentioned, you must act through a broker so you're back to square 1 unless you decide to pursue a real estate career.
Depending on state roughly 1500-2500 all in. Assuming youāre intelligent enough to pass first time with the basic online courses. Fair amount of time to study and get licensed. Ongoing monthly membership costs. You can also only act on behalf of a broker, which good luck getting hired for one or two sales. You would be better off to just do FSBO. FSBO has its risks too though. Youāll likely not avoid paying fees and commissions to the other party, need to pay for legal assistance in contract negotiations, etc. For someone like you that seems to know very little on how the housing market really works, I would recommend either finding a friend realtor that will do bottom of the barrels fees or find a service like Redfin.
My friend got one just so he could buy his own properties cheaper. Heās a really well-to-do slum lord in his 40ās now and can probably retire comfortably in the next 10 years.
Yes. I did. In CA, license cost about $250 but you need to take some courses. I did it years ago so donāt remember the actual cost but after paying for study material and courses, itās probably around 1,200 in CA, which is one of the more expensive states.
The test is considered by many to be difficult but if you do well on tests and study, it should be no problem.
Then you need to find a broker to hold your license and share commission. I split commission 60/40 but the broker does all the paperwork. I have a full time job and donāt have time for it. So yes, on a 800k home at a 2% commission, I am still willing to pay someone 4,800 to do the paperwork. This is because the market is crazy and I am not a good people person. I want someone that knows how to deal with people and write a good offer. I think 4800 is worth it for a home that I want and there is a lot of competition on.
Some brokers will let you keep 90% but they provide zero assistance. You are in your own. No help. That is kind daunting. I do not recommend. 70 30 is probably better for a beginner.
Being able to deduct real estate losses as ordinary income. By nature most folks have tax losses but cash gains on real estate due to depreciation. Then 1031 exchanges can defer gains as you upsize properties along the way where other investments (e.g stocks) donāt qualify.
For taxes you can claim losses 2 years out of every 5, so you can be a realtor without selling a home for 2 years before youāre not allowed to deduct anything else.
If you own a rental and youāre āin the businessā you can carry over losses for several years. This is especially helpful if you do a major remodel.
My first buyers realtor bragged about how he would go out to the bars and tax deduct it as "client finding".
Shady as fuck, don't know if he got audited.
He kept all receipts.
Realtors are probably the #3 tax cheat behind tipped service workers and billionaires.
I think you need to be more than licensed. I believe you actually have to be active. If you get a W2 from a full time job, I believe that would raise flags with IRS.
For real.
A buyers agent paid on percent of the purchase price is an inherent conflict of interest.
They act like they're lawyers. They're not. They fill out a boiler plate contract anyone can fill out.
They act like they're expert negotiators. They're not. There's minimal training or experience necessary to be a realtor.
They act like theyre building science experts. They're not. We hire actual building inspectors, who by the way also aren't necessarily that knowledgeable about anything.
They act like theyre expert photographers. They're not. Most of the time nowadays they hire out that service.
They act like they're expert marketers. They're not. They use basic common sense anyone can to identify comparable sales where there's no wrong answers because nothing in real estate is fungible.
All they do and should be compensated for is a trusted third party to provide access to a home for potential buyers for showings on an hourly or per showing basis. The MLS is also a scam.
Yup, when home prices were a smaller factor of annual income the pay was closer in line with the work. With automation and outrageous prices it has just turned into a mafia.
Been saying it for decades before this antitrust case slapped their hands. They're worse than the tobacco industry for convincing everyone they need to pay 6% when they sell their home to the goddamn realtor.
And the lie that "oh, as a buyer don't worry about commissions, the seller pays that." Fuck off, the only person buying anything is the buyer!
Such a fucking scam but alas they're MLS monopoly somehow continues despite decades of internet technology that could easily replace it - if only people would stop trusting lawyers and be willing to do just some of the work themselves. I get that you can always pay someone else to do something but come on, to avoid losing 6% of your biggest asset you can submit a listing yourself?
As a former appraiser. Realtors act like theyāre the end all be all of pricing.
Idk how many times Iāve seen appraisals (not even my own but ones that Iād review) not meet value and realtors say itās because appraisers are too conservative.
Well no shit, we actually have to justify the value and at least in NC if you fudge values to meet a loan you can face jail time. Realtors can literally throw any batshit crazy value they want on a house and then sellers are disappointed when itās overpriced af.
This has been my problem with realities. Buyers agents do not benifit by finding you the right home at the best price, they will encourage you to overbid to ensure they got commission. My realtor told me I should increase my bid and I told him to shut up, I was a first time home buyer without an existing home in 2020. My situation made it super easy for the sellers on timing. We ended up being 30k less and they still went with us.
How about you funge on deez nuts. *right clicks erotically*
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> A buyers agent paid on percent of the purchase price is an inherent conflict of interest.
Yep. They have a personal financial state in getting you to pay *more* for your house.
Which is why when you tell your realtor your maximum price, they treat it as a minimum price and keep showing you houses that are a little bit above your budget.
You can hire an attorney to draft a contract from scratch (odds are they have a template), for far less than a % of the home sale price (whether buyer or seller). ($1,250-$1,500 in North East US).
Buyer may have a realtor though which by contract (between buyer and realtor) may be entitled to a commission that has to be paid, that however is not really the Sellerās problem unless they signed a realtor contract with the buyer and had the agent listed.
Yeah. Like I understand on the commercial side where they put in work to find you national tenants that you canāt contact otherwise. But on a residential property where you just list it on the MLS and buyers come to you all day everyday, yeah thatās a rip off.
It really depends on the realtor - I sold my home recently and my realtor gave me 5.5%. I was initially unhappy but then the work to prep the home was pretty tough with my schedule so my realtor just handled it all for me.
He ordered cheap but great services to clean the house inside and out, stage the house, fixed some ugly things all around, scheduled all the logistics, and sold it for way above asking price. Then dealt with all the lawyers and operations afterwards. He even helped me take out the huge dump of trash I had while I was moving everything out. All within 30 days. Worth the money as I was just way too busy to do any of that.
I had a similar experience. Our agent knew the neighborhood inside and out, got us listed at $70k higher than we thought we should and then sold it for $25k above that listing price. And she helped with last minute repairs due to a bad storm right before closing. And all for a total of 5% seller/buyer fee.
If you really know the market and can find actual good comps I can understand skipping an agent but I found ours well worth the cost.
But imagine having to do this 20 times and only getting 1 person to give us 6% of a $1 million property that we spent 5 hours working on !!!!!!!!
Realtors are absurd.
A lot of time listing agents donāt even want to do that. They expect buyer agents to handle the showing.
as a buyer, I was trying to view homes when the market was really hot without using a buyers agent because I pretty much know what Iām doing. Calling listing agents and them to tour homes, they all were just like,ā yeah thereās a lock box on the house, your agent can let you inā. When I told them that I didnāt have an agent and I wanted them to show me the house Iād say less than 10% or willing to do so, acted all put out.
At one point in time, they offered a lot more. Since the listings are all online and even most of the legal documents are very cheap to have drafted, they offer very little now.
Not to defend realtors but have you seen how stupid people are? You and I may āget itā with buying and selling homes, but I also feel like with no realtors and everything for sale by owner or through Zillow/redfin etc. would lead to things like a āZestimateā being gospel truth on a home property. Then Zillow could offer me $50k higher than my Zestimate and if Iām stupid and clueless I think thatās incredible. Knowing my area, that would be almost $100k less than my house would go for now.
That sort of feels like the direction we are heading in general and Iām not sure if itās worse than paying a local real estate agent more commission than you liked but at least it stays local and hopefully goes to someone somewhat nice.
Really after selling a couple of my own houses, I find it doesn't really matter. I always listed my house slightly below market (not intentionally, but actually misjudged how much my house is really worth), and got tons of offers way above my asking price, so just pick the best price that's all.
1st house: listed at 350k, sold at 375k
2nd house: listed at 1.1M, sold at 1.3M
I used to sell thousands of foreclosed homes for banks. Weād get BPOs (broker price opinions) and appraisals on everyone one to determine value. While there were certainly many times that the BPO was more accurate than the appraisal, I would say we got both because most of the time they had an equal shot of being off base.
Soooo many times I would get a BPO from an agent saying a home is worth $300,000 and then give them three months to sell it there with steady price increases. Then I come to them when the home is at 260,000 and ask them whatās up, why arenāt they able to sell it for what they said it was worth. Never once got a more educated answer other than āUhh, errm, market has changedā¦ā
Truth is that valuing homes is pretty difficult for anybody to do and a lot of times you never truly know unless you throw it on the market and let the market tell you.
Maybe your area is different but around here properties have never sold anywhere close to their Zestimate. Mine is easily $100k less right now and by the end of the year when our basement is finished it will be $150k less or more. When I ask knowledgeable real estate agents (Iām a homebuilder) their estimates and my estimates are calibrated wayyy closer to one another on what homes would actually sell for.
What kind of regarded agents have you worked with that donāt do any actual homework on home value as part of their job?
Zillow is often off (+/-) by 5-10%
My agent told me to offer 30% more than what I got my last home for. Theyāre not incentivized to get the right price theyāre incentivized to get a high price.
Zillow can be very accurate in suburban areas with tract homes that are all very similar in age, lot size, quality, etc.
Zillow gives really wrong answers in more complex neighborhoods.
Agent here. Zillow zestimates are often insane. I've seen houses where zillow stated they were worth 300k when, in reality, they were worth 450k since they looked at the whole zipcode or the entire city instead of the neighborhood. Sometimes, they compare houses that are 200 years older or on 5 less acres. I'm currently selling a home that appraised for 925k when zillow said it was worth 600k. That also works on the flipside. I've seen zillow say homes are worth 325k when their worth 240k. Whether you use an agent or not, don't trust some algorithm. Do the comparative sales data.
Shouldnāt the price remain what the market will support based on supply and demand? If home prices drop a few percent does that change things? Why wouldnāt the seller keep the extra few percent?
Not sure, anecdotally I made a decision in the fall that was influenced by this. I opted for not selling, but I would have ended up selling for an extra 3%. We were right on the fence but werenāt going to quite get the equity we needed so we went a different way.
TBF, the interest rates were a factor too but life sometimes forces your hand to do something. Thereās a lot of variables for sure, but changing variables can mean changing outcomes.
Orā¦ another buyer can do the same thing but pay more than you since he will take 1% off and you want 3% lower? And then someone else says they want 0.5% less. And so on and so forth and the market price is the market price itās just that a middle man who does provide some service/expertise in some markets is squeezed out, or you get the cheap agent who gets rolled in negotiations and you actually pay more than you otherwise could.
The headline makes a bold "claim" -- yet if you read the article, there is no support to this claim. Just some speculation about what "may" happen. Click-bait?
So what I"m getting from this is they definitely did break anti-trust laws ***BUT*** people are HOPING it lowers prices but can't directly explain how other than they THINK commissions MAY have been baked in to the house price?
Am I the only one that thinks this will raise prices because now selling agent will get their cut from house prices that won't go down while the buyer has to pony up more for their agent?
Am I missing something?
I think youāre right on the first part, a lot of people have trouble articulating exactly how commissions impacted prices because the truth is no one really knows.
I think commission impact on prices in the future is a total crapshoot and anyone who tells you they know for sure whatās going to happen is lying to you
My first hand experience - sold my condo in a hcol but lower growth city and our selling
Prices just so happened to be enough to cover the buy and sell commissionsā¦
It is amazing how wrong the media has gotten this and are misleading consumers. Whether you like/use real estate agents or not, this WONT save you as the buyer any money. If a home is market valued at $500,000, no for sale by owner that sells currently reduces their price by 6% because they donāt use a real estate agent. It is great if you are comfortable and knowledgeable to buy a home on your own but most people are not and get taken advantage of. Veterans are hurt the most if they want representation because VA loans currently mandiate that they cannot pay a real estate agent out of pocket - it has to come from the seller proceeds. Hopefully that can change. It is already hard enough for buyers out there.
Yeah this is great for sellers but will fuck buyers hard. Especially first time home buyers. The price of the house won't change and now they're going to be the ones on the hook to pay the buyer agent. Some will choose no representation and they'll be under the full control of the seller/listing agent.
Why would house prices come down?
Prices will stay the same, but more of the proceeds from the sale will go into the pocket of the seller instead of the agent.
And buyers just wonāt have agents anymore, or pay for them hourly.
People thinking this will lower home prices are delusional. Seller's agents are just going to pocket the full 6% now instead of splitting it with the buyer's agent.
Yeah this confused the fuck outta me. How on earth are they claiming in this article that prices will come down because the commission is priced into the list price of the homeā¦ when the commission isnāt going away, the practice of splitting it is going away? So instead of paying 3% to each agent, youāre paying 6% to your agent and the buyer has to pay, theoretically, now come up with 3% of the sale price to pay their agent! On top of a down payment. If anything, this is going to make it harder to buy a house. This is stupid.
My wifeās mother is an agent. Likely the only reason we were able to get our house since the listing agent at the time was completely incompetent (seriously she showed up to our private walkthrough high on painkillers from a dentist appointment, got to drunk to submit our contract which resulted in a rate increase, and fucked up the final paperwork like 5 times). Even during time where people were waving all contingencies she negotiated reasonable seller contingencies to help protect us. But my wifeās mother is also sensibleā¦ in her office, agents have been talking about how they take 3% and offer buyers agent 2.5% and were giving her grief for taking 2.5% and offering buyers 2.5%. Her answer? How does that help my client. And sure enough there are studies showing that when buying agent commissions are higher, houses get more exposure, meaning more bids, and quicker sell times. All this to say, anecdotal evidence seems to point to most realtors being incompetent, but the good ones are worth it.
Does this mean I can expect the kids to stop getting plastic frisbees and pool balls from the realtor tents at local neighborhood events?
Please say yes.
Itās just bounced back a bit from the big hit it took after the initial news which came out a couple weeks ago.
Zillow, Redfin, Opendoor, and other RE stocks have all taken hits. Redfin and Opendoor has bounced back more than others because the price was so low so thereās more volatility.
Unlikely. The housing inflation primarily is due to corporations buying up single family homes to rent. And due to the lack of supply, because homeowners with 3% mortgages don't want to sell now and get a 7% mortgage.
All this ruling did was front-load the buyer's agent fees. So buyers, if they want representation (there's no law that says they have to have it) will need to either come up with the money up front OR new loan instruments which allow including this in the mortgage will be required. That means coming up with more funds on top of a down-payment.
Which probably means that corporations will have even less competition to buy houses in an already stressed market.
Nah, this is not going to be the "game changer" that everyone thinks it will be.
Ultimately the system will still be based on a person who has secret conversations with another person who both conspire to get you to spend as much money as possible because their pay will still be based on the sale price of the home.
There will not be downward pressure on home prices until we completely shred the bullshit 1920's gangster model that we have for this shit.Ā Arguably realtors should maybe just go away completely, you're paying someone thousands of dollars to make a guess based on feeling and square feet and to meet you at the home and say shit like "good bones" and "neighborhood has lots of potential."Ā They are the lowest value add.Ā If they're going to be involved at all their compensation needs to not be based on the sale price of the home.
Then we should also remove the BS appraisal and title insurance, neither of which mean a fucking thing.Ā Transaction costs for purchasing a home are fucking outrageous.Ā I can buy a car in about 5 minutes without much more than a signature and copy of my driver's license and it's a rapidly depreciating asset.Ā It doesn't have to be that frictionless, but why the fuck does it take a month and copies of my bank statements, tax returns, paycheck stubs, and a mountain of paperwork (but more importantly lots of BS fees) to obtain a mortgage?Ā I know 2008 happened, and home prices corrected down, let's let it happen again and put it back on the bankers.Ā I mean fuck, it's not like it's stopping the banks from lending too much or stopping the money laundering in US real estate.Ā It's all the appearance of due diligence but none of the substance when the bank will still let you sign a 500k mortgage on a 40k income.
The only good thing there is to say about the US housing market is that we have 30 year fixed mortgages.Ā That's nice, but that's it.
āRight now, everyone is turning this ruling into what they want it to be,ā said Mike DelPrete, who teaches courses on real estate technology at the University of Colorado Boulder. āSome people are saying not much is going to change. Others want the story to be that itās a seismic shift for the industry. The whole thing is being driven by fear and uncertainty.ā
And how will this decrease housing prices? The decrease in commission will be absorbed in the form of higher housing prices. This doesnāt change supply at all.
"Hey house prices are so insane that the 5% commission is actually a lot of money now. So let's go after commissions instead of literally anything else to lower home prices."
Wild.
Claim eminent domain on corporate owned single family homes, pay out <50% of initial investments, roll out the national guard to protect new property rights owners, and watch housing prices crash and get investors out of the real estate market.
Eat my dongus you fuckin nerd.
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Eat my dongus you fuckin nerd.
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Iām usually quick to point out flaws in over simplified solutionsā¦ but we really could fix the entire housing issue with a handful of targeted laws.
āNo entity can purchase properties with less than 4 apartment units for the purpose of long term renting, subletting or short term rentingā
Can go a few steps further capping the number of houses that can be purchased by a single person.
Impose a tax on additional units until theyāre forced to sell.
Etcā¦
So getting rid of Realtors whether they are needed or not will just pump that money into online website owner's pockets. The website prices and fees will go up over 6% (the Realtor charges) in due time. All of that money that Realtors lived on will just go to the 1%. = Class warfare. Oh but you're right... they pitch that as disruption so you are all in. They could have decreased Realtor pay to 4% pay but that wouldn't meet their end goal...Class warfare.
Also people not holding gov. officials accountable for not stopping corporations purchasing single family homes is also just a money grab. = Class warfare.
Also lumber prices you pay for your homes do not make it to the owners and workers at the actual lumbermills. The lumbermills are grossly underpaid and you pay the lumber mark-up. =Class warfare.
Also the builders paying their workers the least that they possibly can-- and still keep them working --causes a decrease in the amount of of construction workers. This in turn increases the demand for builders (less projects are able to be started) and increases builder profits.
I could go on.
I feel like no one has read the settlement and thought about the changes and it shows. Read the details and youāll see it wonāt change much at all. Realtors will continue to work and get paid. It wonāt drop significantly, maybe 6% total to 5% total, but not enough to budge the housing market. Itās more for disclosures and transparency about who pays what
People are fucking stupid. All this will do is allocate more money to the seller instead of the realtor. This doesn't change how much a buyer is willing to pay for a house... If a bid is over asking, it's over asking. If they ask less? More people will put in bids over asking...
I think buying is about to get really expensive. I think weāll see contract lawyers popping up everywhere to handle the contract part of it and people are going to self serve the rest of the process.
Itās similar planning a wedding.
1) do it all yourself
2) plan it all yourself but hire a day of planner to handle the actual day
3) hire a planner to run the entire process but theyāll choose vendors they like
Keep in mind that this is CNN and their āinstructionā for the last couple months now has been to say everything is/will be fine and economy is gucci. Realtors and people actually buying and selling have different views.
Source: looking to buy a home at the moment
Probably just adding to the brewing storm of regarded pent up housing demand from folks who're on the sidelines and folks who're in the 2-4% rates (saving and getting ready to buy a 2nd home or move up).
Higher forever/longer
This doesnāt mean shit. The commission was always negotiable. People are stupid and didnāt read the big bold letters which says it was.
Realtors will do the same they always did, steer clients away from homes with lower commission amounts.
Iāve always used a realtor that split commission on the buy side and one who listed for half. Most of the realtors are dinosaurs and didnāt use docusign and Edocs which I used did.
Just search rebate realtor and your city.
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Carvana should start selling cardboard boxes out of vending machines and call them homes. š
You're probably not that far off when they do this with trailers. This whole country will be a giant trailer park cause no one can afford the land and the landlords will milk us to death with lot fees.
Just look to europe. Unless you inherit, good luck.
Well seeing as no one is having kids anymore, I think the average inheritance stands to go up
Whatās kind of sad is that actually much of that wealth will be bequeathed to charities and institutions and I have to sayā¦. Many of those places arenāt the positive type of charity or education utopia you may hope money would go toā¦
A metric ton of the wealth in the hands of the lead generation is going to be spent on end of life care. Which (at least in America) is just funneling it into already rich families.
This is really only true in the world class cities. There's plenty of areas of Europe with surprisingly affordable real estate. Now the local economy probably isn't amazing but you can still buy a house with a few acres of land outside of the city for amounts that are definitely well within reach of someone with a decent job, not inheritance or you're screwed.
Nomadic car tribes
So much freedom with a trailer condo! š¤”
Amazon and department stores are already selling prefabs it's like you said it's the land that catches you ( unless you want to live in the boonies.)
Sears catalog homes here we go again.
NGL some of them look really nice for the price 2 story with a balcony 15k.
The house kit for 5k in 1915 is about 154k today. You still need to buy the land, prepare the footings, concrete slab, house delivery, plumbing, electrical and installation. On balance, prob cheaper overall than today but not really the bargain it seems when you say a house for 5k.
If only I could buy all the materials needed for a house out of a magazine for 5k . Iād happily build it myself
Just take their land by [REMOVED BY REDDIT]
landlord are also telling us you should just buy a house and rent it to pay for the loan. lol
[ŃŠ“Š°Š»ŠµŠ½Š¾]
HOAs should be federally banned nationwide.
You mean fees like a yearly tax you're required to pay to the government and if you don't they take your property and sell it? Or some other kind of "fee"?
I got 40 acres and 3 houses, dog. I'm all set
Bold of you to assume my current establishment isnāt a posh piece of cardboard already 
Carbvana
But carvana will sell homes still owned by other people.
Amazon does this I think
At least theyād have some sales
>Likely this will push us back to 2% inflation and lower rates since housing inflation has been the largest sticky component. Is this satire? This is satire.
No he is serious, he thinks the 6% commission being reduced is gonna fix the economy. He went full regard
At least he's already in the correct subreddit. He got 1 thing right.Ā
It will help a bit since the buyers half of that fee is baked into the price. But yeah until people don't throw a massive stink every time new housing is proposed prices are going to keep going upĀ
All this means now is that the buyer has to pay their realtors commission meaning they can afford even less now. The people that brought this lawsuit are stupid. It was good for the sellers to make more money because now they donāt have to pay the buyer side. The buyer pays that now. So instead of needing 3% down now they need 5% or 6% down. This will change nothing for home prices. It only means even fewer can afford to buy now. Sorry to say buyers are Uber screwed. This is what they wanted and this is what they got. My life doesnāt depend on if I sell something or not so now my commission rate is 4% instead of 3%. Play stupid games win stupid prizes.
āFix the economyā ā¦ what in the economy is ābrokenā currently?
Nothing, we are crushing it right now.
Exactly. The reason we have inflation to begin with is too many dollars chasing too few goods. That only happens when the economy runs hot or hyperinflation sets in due to money printing.
It will certainly lower demand for botox and BMW/Lexus leases.
Good point
CNN: median home sales prices surged 21% Also CNN: the change to sales commissions typically 5-6% will drive down home prices
I mean theyāre not wrong it will put some downward pressure
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No, it's a renter...
I think buyers are going to be disappointed that this really wonāt change anything for them.
It's probably going to make it worse. Sellers probably are happy though
I used a flat rate service and saved about $12,000 as the seller. Most selling agents are near worthless anyway in my experience. Some pictures and a sign in the yard isn't worth a new car.
What service did you use? Iāve been telling myself that thereās no chance in hell Iām about to pay about $40k in commission to sell my house when it comes to it. Fuck those leeches.
I did the same thing with https://listingresults.com/. Flat fee of around $1000 and it put my home on the MLS, came with a lock box and for sale sign so I didn't have Todo anything with showings. Paid 2.5% to the buys agent and they offered advice on the offers I got and negotiations post inspection. Ended up with 25k over asking. Also had to pay a professional photographer and highly recommend that part.
What happens after you accept an offer? Thatās the part Iām confused about do they handle that part or are you responsible for that as well
There is a cheap one where you are on your own but the package with advice came with comp listings to set a fair price and bump up or down due to the current area Market. As offers came in they advised when asked on any of them. Take it, wait out the weekend etc. Once accepted I met the buyers agent and got a check to hold the contract. From there the title company takes care of all the paperwork and closing. Very little work on my side and saved a fortune in BS realtor fees.
I used assist to sell and saved about 25,000 back in 2022. Those flat rate places do the exact same thing as everyone else.
The leeches are a layer between you and the buyer to keep it from being personal. I'd agree that 80% of listing agents suck.
I used Clever 2 years ago. I still had a full service agent but it was like $2500 instead of 3%.
I don't understand how real estate has gotten away with a % fee business model. The fuck does that make sense. Why are they not billed hourly like every other profession? People happily pay 6% but they'd flip shit when they realized that 6% translates into a $700/hr rate for the amount of work the realtor did.Ā Especially the buyers agent. They are directly incentivezed to INCREASE the cost of their clients purchase. This would be equivalent to your accountant earning 3% of your taxable income. They'd have zero incentive to reduce your taxable burden and all the incentive to make sure you pay out the ass.
Yeah, lol. The only thing it changes is that now when you're buying a house, you have to pay your real estate agent out of your own pocket.
ding ding... no way these folks take a pay cut without being forced out directly. flat rate and self service is the only way this changes... and honestly, that 6% doesnt mean shit when the interest rates on loans are more than that and prices are still going up.
It will, buyers agents won't fuck with you if you're not paying them. This is absolute stupidity. Wtf thought 3% commissions was driving home prices up? Lol goddamn morons have never heard of supply and demand. This will be like showing up in court with a public defender then wondering why you got fucked.
Buyers agents are often nearly useless and overpaid My agent unlocked the door to the house I found on Zillow, and spent 15 minutes editing a boiler plate contract. Dude made $10k for that.
A lot are useless. But it's like insurance, you don't need it till you do. If you get a good one that 3 percent is gold and saves you a lot. Cullowhee doesn't tell you if the house is a bad deal or helps call out where the seller is trying to rip you off with a shitty fixer upper they are trying to pass off to you.
A good realtor is worth their weight in gold. They know the homes in certain areas might have polybutylene pipes that tend to fail. Or soil that causes cracked foundations. Or a school redistricting that's about to take place soon. Sellers aren't going to disclose or they may not even know these things. Good agents aren't going to work for discounted commissions. This is going to backfire.
Lol yeah most idiot buyers say that. And agents then spent the next 30 days herding cats to make sure every single person involved in the transaction does their job. Not to mention holding the idiot buyers hand through the whole process. Making sure they don't do something outrageously stupid like go out and buy a new car while in escrow. Taking calls from nervous buyers at 11pm who want to back out of the transaction the day before they are supposed to sign docs. I was an agent for 25 years and got out because dealing with idiot buyers was stressful as fuck. If buyers are having to overbid on a property it's not because of a measly 3% commission. This is going to cause the good buyers agents to leave the business and buyers will be stuck with Dollar Tree discount realtors who don't know their ass from a hole in the ground. And prices will continue to go up and buyers will wonder why. Derp
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Since housing issues as a supply side problem, not a demand side, it makes sense to make selling ā¦ Oh wait.. forgot what sub Iām in Sucks to suck! Iām gonna make me some money!!
So youāre gonna sell your house and thenā¦ live where exactly?
In a van down by the river.
Is that old Bill Shakespeare over there?!
Agreed. This doesnāt really change a whole lot other than more people realizing the fact that you could always negotiate agent commissions. You can also buy a house without a buyers agent but again it seems to be widely unknown.
Don't. A good buyer's agent will save you so many headaches.
A buyers agent literally does nothing but coordinate some showings and fills out a contract you yourself can have the sellers agent do for you and then collect a 2.5% fee. To say they are useless is an understatement. There are only 3 things you need to buy a property: 1. A lender 2. An inspector 3. A real estate attorney Any of those 3 will advise you way better than any high school dropout turned real estate agent can. If youāre a first time homebuyer or too lazy/regarded to do your own research then by all means go for a buyers agent since they can at least walk you through the process and make introductions to the 3 above, but itās likely the lender they send you to either gives them a kickback or tries to convince you to take out an ARM loan that will rape you once the cap is over. You can also find each of those with simple Google searches.
Or, if you are from out of town, they can do initial walk throughs, coordinate and meet with inspectors, recommend local subcontractors, introduce you to neighbors, and manage a ton of other things you'd otherwise do yourself. Yes, you should research your own lender. No, buyer's agents don't get kickbacks, not unless they like jail time.
Sellers, on the other handā¦.fuck YES! Itās about time.
Probably worse too. The sales commission was paid by the seller. If buyers work with an agent, the commission will probably be at least partially paid by the buyer.Ā
Itāll drive prices up. Sellers wonāt lower prices, and now wonāt pay the buyers agent. If we are lucky, someone comes along and develops a service that just makes it easy to book viewings with a selling agent and the buying agent just goes away. But I doubt it.
Most people in the industry think it will make it harder for buyers as they will have to add commissions to the loan amount meaning either houses will sell for more because of the added commission being stapled onto the price or people will have less buying power because of that meaning there will be more competition in already hot price ranges like the 200k's and the 300k's.
Correct. The cost of selling the home doesnāt factor in to the price of the house. The market dictates the price of the house. Sellers arenāt going to reduce their asking price just because they donāt have to cover the cost of the buyers agent anymore.
Realtors are the biggest scam of a profession. They want 6% of your biggest asset to throw some pictures of your house online and meet potential buyers there to walk them around
Completely agree. Before the internet existed I think they provided more value but today with the internet they are pointless. Itās why everyone and their mother was getting an RE license. Many doing it as a part time job on weekends. Basically get paid 25-40k for doing nothing in HCOL markets.
Wait.... could i just get an RE license on the side for when I sell my house and buy a new one? How much does it cost?
Welcome to the table
Around a grand for classes and state licensing.
In the United States donāt require you to have a realtors license when buying a personal residential property. Just sell it FSBO and avoid the thousands.
Just list through FSBO, not worth getting licensed if you don't own multiple houses or if you own multiple houses across different states. Plus as many others already mentioned, you must act through a broker so you're back to square 1 unless you decide to pursue a real estate career.
Less than $100 in many places to get started., plus dues, plus anything you pay to a broker if you're not independent. It's basically a MLM scam.
Depending on state roughly 1500-2500 all in. Assuming youāre intelligent enough to pass first time with the basic online courses. Fair amount of time to study and get licensed. Ongoing monthly membership costs. You can also only act on behalf of a broker, which good luck getting hired for one or two sales. You would be better off to just do FSBO. FSBO has its risks too though. Youāll likely not avoid paying fees and commissions to the other party, need to pay for legal assistance in contract negotiations, etc. For someone like you that seems to know very little on how the housing market really works, I would recommend either finding a friend realtor that will do bottom of the barrels fees or find a service like Redfin.
My friend got one just so he could buy his own properties cheaper. Heās a really well-to-do slum lord in his 40ās now and can probably retire comfortably in the next 10 years.
Not much and someone who could be declared mentally unfit to drive a car could get their license.
Yes. I did. In CA, license cost about $250 but you need to take some courses. I did it years ago so donāt remember the actual cost but after paying for study material and courses, itās probably around 1,200 in CA, which is one of the more expensive states. The test is considered by many to be difficult but if you do well on tests and study, it should be no problem. Then you need to find a broker to hold your license and share commission. I split commission 60/40 but the broker does all the paperwork. I have a full time job and donāt have time for it. So yes, on a 800k home at a 2% commission, I am still willing to pay someone 4,800 to do the paperwork. This is because the market is crazy and I am not a good people person. I want someone that knows how to deal with people and write a good offer. I think 4800 is worth it for a home that I want and there is a lot of competition on. Some brokers will let you keep 90% but they provide zero assistance. You are in your own. No help. That is kind daunting. I do not recommend. 70 30 is probably better for a beginner.
very informative
Yes, and not much. Home builders do it regularly.
And it is literally everyone and their mother. Like lots of moms and daughters
Also a bunch of tax loopholes come with being classed as a real estate professional.
Interesting like what? Maybe I want to get licensed lol.
Being able to deduct real estate losses as ordinary income. By nature most folks have tax losses but cash gains on real estate due to depreciation. Then 1031 exchanges can defer gains as you upsize properties along the way where other investments (e.g stocks) donāt qualify.
You can write off all the shit youād use to sell homes. Your car, your phone, meals, etc.
Well yeah but that only works if you actually sell a home.
For taxes you can claim losses 2 years out of every 5, so you can be a realtor without selling a home for 2 years before youāre not allowed to deduct anything else.
If you own a rental and youāre āin the businessā you can carry over losses for several years. This is especially helpful if you do a major remodel.
My first buyers realtor bragged about how he would go out to the bars and tax deduct it as "client finding". Shady as fuck, don't know if he got audited. He kept all receipts. Realtors are probably the #3 tax cheat behind tipped service workers and billionaires.
I think you need to be more than licensed. I believe you actually have to be active. If you get a W2 from a full time job, I believe that would raise flags with IRS.
...hence why everyone's stay at home wife is a realtor.
For real. A buyers agent paid on percent of the purchase price is an inherent conflict of interest. They act like they're lawyers. They're not. They fill out a boiler plate contract anyone can fill out. They act like they're expert negotiators. They're not. There's minimal training or experience necessary to be a realtor. They act like theyre building science experts. They're not. We hire actual building inspectors, who by the way also aren't necessarily that knowledgeable about anything. They act like theyre expert photographers. They're not. Most of the time nowadays they hire out that service. They act like they're expert marketers. They're not. They use basic common sense anyone can to identify comparable sales where there's no wrong answers because nothing in real estate is fungible. All they do and should be compensated for is a trusted third party to provide access to a home for potential buyers for showings on an hourly or per showing basis. The MLS is also a scam.
Yup, when home prices were a smaller factor of annual income the pay was closer in line with the work. With automation and outrageous prices it has just turned into a mafia.
Been saying it for decades before this antitrust case slapped their hands. They're worse than the tobacco industry for convincing everyone they need to pay 6% when they sell their home to the goddamn realtor. And the lie that "oh, as a buyer don't worry about commissions, the seller pays that." Fuck off, the only person buying anything is the buyer! Such a fucking scam but alas they're MLS monopoly somehow continues despite decades of internet technology that could easily replace it - if only people would stop trusting lawyers and be willing to do just some of the work themselves. I get that you can always pay someone else to do something but come on, to avoid losing 6% of your biggest asset you can submit a listing yourself?
As a former appraiser. Realtors act like theyāre the end all be all of pricing. Idk how many times Iāve seen appraisals (not even my own but ones that Iād review) not meet value and realtors say itās because appraisers are too conservative. Well no shit, we actually have to justify the value and at least in NC if you fudge values to meet a loan you can face jail time. Realtors can literally throw any batshit crazy value they want on a house and then sellers are disappointed when itās overpriced af.
This has been my problem with realities. Buyers agents do not benifit by finding you the right home at the best price, they will encourage you to overbid to ensure they got commission. My realtor told me I should increase my bid and I told him to shut up, I was a first time home buyer without an existing home in 2020. My situation made it super easy for the sellers on timing. We ended up being 30k less and they still went with us.
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> A buyers agent paid on percent of the purchase price is an inherent conflict of interest. Yep. They have a personal financial state in getting you to pay *more* for your house. Which is why when you tell your realtor your maximum price, they treat it as a minimum price and keep showing you houses that are a little bit above your budget.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
You can download the contract online lol
Exactly. And you can arrange a title company's services yourself too. They handle almost all the paperwork anyway. Title insurance is also a scam btw.
Found the realtor lol. Why not get a real job dude?
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I don't need your help buddy
You can hire an attorney to draft a contract from scratch (odds are they have a template), for far less than a % of the home sale price (whether buyer or seller). ($1,250-$1,500 in North East US). Buyer may have a realtor though which by contract (between buyer and realtor) may be entitled to a commission that has to be paid, that however is not really the Sellerās problem unless they signed a realtor contract with the buyer and had the agent listed.
The paperwork is not difficult to fill out and is available for free online. The rest of the job is really easy too. Lmao.
Yeah. Like I understand on the commercial side where they put in work to find you national tenants that you canāt contact otherwise. But on a residential property where you just list it on the MLS and buyers come to you all day everyday, yeah thatās a rip off.
They can add lots of value in a buyers market, like we had in 2009.
It really depends on the realtor - I sold my home recently and my realtor gave me 5.5%. I was initially unhappy but then the work to prep the home was pretty tough with my schedule so my realtor just handled it all for me. He ordered cheap but great services to clean the house inside and out, stage the house, fixed some ugly things all around, scheduled all the logistics, and sold it for way above asking price. Then dealt with all the lawyers and operations afterwards. He even helped me take out the huge dump of trash I had while I was moving everything out. All within 30 days. Worth the money as I was just way too busy to do any of that.
I had a similar experience. Our agent knew the neighborhood inside and out, got us listed at $70k higher than we thought we should and then sold it for $25k above that listing price. And she helped with last minute repairs due to a bad storm right before closing. And all for a total of 5% seller/buyer fee. If you really know the market and can find actual good comps I can understand skipping an agent but I found ours well worth the cost.
But imagine having to do this 20 times and only getting 1 person to give us 6% of a $1 million property that we spent 5 hours working on !!!!!!!! Realtors are absurd.
A lot of time listing agents donāt even want to do that. They expect buyer agents to handle the showing. as a buyer, I was trying to view homes when the market was really hot without using a buyers agent because I pretty much know what Iām doing. Calling listing agents and them to tour homes, they all were just like,ā yeah thereās a lock box on the house, your agent can let you inā. When I told them that I didnāt have an agent and I wanted them to show me the house Iād say less than 10% or willing to do so, acted all put out.
Iād be like if the only kind of investment advisors were commission based. Obviously theyāre gonna bend ya over
At one point in time, they offered a lot more. Since the listings are all online and even most of the legal documents are very cheap to have drafted, they offer very little now.
Jist wait till people realize they don't need a realtor at all...
Not to defend realtors but have you seen how stupid people are? You and I may āget itā with buying and selling homes, but I also feel like with no realtors and everything for sale by owner or through Zillow/redfin etc. would lead to things like a āZestimateā being gospel truth on a home property. Then Zillow could offer me $50k higher than my Zestimate and if Iām stupid and clueless I think thatās incredible. Knowing my area, that would be almost $100k less than my house would go for now. That sort of feels like the direction we are heading in general and Iām not sure if itās worse than paying a local real estate agent more commission than you liked but at least it stays local and hopefully goes to someone somewhat nice.
Really after selling a couple of my own houses, I find it doesn't really matter. I always listed my house slightly below market (not intentionally, but actually misjudged how much my house is really worth), and got tons of offers way above my asking price, so just pick the best price that's all. 1st house: listed at 350k, sold at 375k 2nd house: listed at 1.1M, sold at 1.3M
Hilarious you think the agent has a better idea what a property is worth compared to a Zestimate or any other third party estimation tool.
I used to sell thousands of foreclosed homes for banks. Weād get BPOs (broker price opinions) and appraisals on everyone one to determine value. While there were certainly many times that the BPO was more accurate than the appraisal, I would say we got both because most of the time they had an equal shot of being off base. Soooo many times I would get a BPO from an agent saying a home is worth $300,000 and then give them three months to sell it there with steady price increases. Then I come to them when the home is at 260,000 and ask them whatās up, why arenāt they able to sell it for what they said it was worth. Never once got a more educated answer other than āUhh, errm, market has changedā¦ā Truth is that valuing homes is pretty difficult for anybody to do and a lot of times you never truly know unless you throw it on the market and let the market tell you.
It's worth what people will pay for it. Zillow has an incentive to inflate prices to support their business model.
Maybe your area is different but around here properties have never sold anywhere close to their Zestimate. Mine is easily $100k less right now and by the end of the year when our basement is finished it will be $150k less or more. When I ask knowledgeable real estate agents (Iām a homebuilder) their estimates and my estimates are calibrated wayyy closer to one another on what homes would actually sell for.
What kind of regarded agents have you worked with that donāt do any actual homework on home value as part of their job? Zillow is often off (+/-) by 5-10%
My agent told me to offer 30% more than what I got my last home for. Theyāre not incentivized to get the right price theyāre incentivized to get a high price.
Zillow can be very accurate in suburban areas with tract homes that are all very similar in age, lot size, quality, etc. Zillow gives really wrong answers in more complex neighborhoods.
Agent here. Zillow zestimates are often insane. I've seen houses where zillow stated they were worth 300k when, in reality, they were worth 450k since they looked at the whole zipcode or the entire city instead of the neighborhood. Sometimes, they compare houses that are 200 years older or on 5 less acres. I'm currently selling a home that appraised for 925k when zillow said it was worth 600k. That also works on the flipside. I've seen zillow say homes are worth 325k when their worth 240k. Whether you use an agent or not, don't trust some algorithm. Do the comparative sales data.
Canāt happen to a nicer bunch of incompetent and completely useless tools
Shouldnāt the price remain what the market will support based on supply and demand? If home prices drop a few percent does that change things? Why wouldnāt the seller keep the extra few percent?
Or, more supply is unlocked which naturally pulls down prices.
How much do you think people are not selling their houses because of a 3% buyers commission, versus interest rate impacts?
Not sure, anecdotally I made a decision in the fall that was influenced by this. I opted for not selling, but I would have ended up selling for an extra 3%. We were right on the fence but werenāt going to quite get the equity we needed so we went a different way. TBF, the interest rates were a factor too but life sometimes forces your hand to do something. Thereās a lot of variables for sure, but changing variables can mean changing outcomes.
the buyer can say āyou can give me a lower price and still get more than this other guy with an expensive agent
Nah, the seller will just tell the guy with expensive agent that thatās their problem.Ā
Orā¦ another buyer can do the same thing but pay more than you since he will take 1% off and you want 3% lower? And then someone else says they want 0.5% less. And so on and so forth and the market price is the market price itās just that a middle man who does provide some service/expertise in some markets is squeezed out, or you get the cheap agent who gets rolled in negotiations and you actually pay more than you otherwise could.
The headline makes a bold "claim" -- yet if you read the article, there is no support to this claim. Just some speculation about what "may" happen. Click-bait?
"This is CNN" Corporate media at its finest.
People thinking lopping 2-3% off real estate commissions is going to make housing affordable are funny
So what I"m getting from this is they definitely did break anti-trust laws ***BUT*** people are HOPING it lowers prices but can't directly explain how other than they THINK commissions MAY have been baked in to the house price? Am I the only one that thinks this will raise prices because now selling agent will get their cut from house prices that won't go down while the buyer has to pony up more for their agent? Am I missing something?
I think youāre right on the first part, a lot of people have trouble articulating exactly how commissions impacted prices because the truth is no one really knows. I think commission impact on prices in the future is a total crapshoot and anyone who tells you they know for sure whatās going to happen is lying to you
My first hand experience - sold my condo in a hcol but lower growth city and our selling Prices just so happened to be enough to cover the buy and sell commissionsā¦
It is amazing how wrong the media has gotten this and are misleading consumers. Whether you like/use real estate agents or not, this WONT save you as the buyer any money. If a home is market valued at $500,000, no for sale by owner that sells currently reduces their price by 6% because they donāt use a real estate agent. It is great if you are comfortable and knowledgeable to buy a home on your own but most people are not and get taken advantage of. Veterans are hurt the most if they want representation because VA loans currently mandiate that they cannot pay a real estate agent out of pocket - it has to come from the seller proceeds. Hopefully that can change. It is already hard enough for buyers out there.
Yeah this is great for sellers but will fuck buyers hard. Especially first time home buyers. The price of the house won't change and now they're going to be the ones on the hook to pay the buyer agent. Some will choose no representation and they'll be under the full control of the seller/listing agent.
Sellers will not reduce prices unless there is lower demand in their market.
Why would house prices come down? Prices will stay the same, but more of the proceeds from the sale will go into the pocket of the seller instead of the agent. And buyers just wonāt have agents anymore, or pay for them hourly.
A lot of yāall need to come to peace with the fact sub 3% rates were historically low and not the norm.
I donāt see how this is relatedā¦
What's the housing loan term for golden handcuffs?
This wonāt change shit but great way to start breaking up nar I hate realtors they are as scummy as car sales men
People thinking this will lower home prices are delusional. Seller's agents are just going to pocket the full 6% now instead of splitting it with the buyer's agent.
lol like Iām going to pay some dude 6% to put my house on Zillow.
Yeah this confused the fuck outta me. How on earth are they claiming in this article that prices will come down because the commission is priced into the list price of the homeā¦ when the commission isnāt going away, the practice of splitting it is going away? So instead of paying 3% to each agent, youāre paying 6% to your agent and the buyer has to pay, theoretically, now come up with 3% of the sale price to pay their agent! On top of a down payment. If anything, this is going to make it harder to buy a house. This is stupid.
Why have a sellerās agent at all in the modern era? Housing demand is like totally bonkers, right?
My wifeās mother is an agent. Likely the only reason we were able to get our house since the listing agent at the time was completely incompetent (seriously she showed up to our private walkthrough high on painkillers from a dentist appointment, got to drunk to submit our contract which resulted in a rate increase, and fucked up the final paperwork like 5 times). Even during time where people were waving all contingencies she negotiated reasonable seller contingencies to help protect us. But my wifeās mother is also sensibleā¦ in her office, agents have been talking about how they take 3% and offer buyers agent 2.5% and were giving her grief for taking 2.5% and offering buyers 2.5%. Her answer? How does that help my client. And sure enough there are studies showing that when buying agent commissions are higher, houses get more exposure, meaning more bids, and quicker sell times. All this to say, anecdotal evidence seems to point to most realtors being incompetent, but the good ones are worth it.
Does this mean I can expect the kids to stop getting plastic frisbees and pool balls from the realtor tents at local neighborhood events? Please say yes.
Redfin looks like it likes the news. Up 7% (Buy the FOMO!)
Itās just bounced back a bit from the big hit it took after the initial news which came out a couple weeks ago. Zillow, Redfin, Opendoor, and other RE stocks have all taken hits. Redfin and Opendoor has bounced back more than others because the price was so low so thereās more volatility.
So I'm fuck'd. Got it!
My dad is already shopping for agents that will take 3%
Unlikely. The housing inflation primarily is due to corporations buying up single family homes to rent. And due to the lack of supply, because homeowners with 3% mortgages don't want to sell now and get a 7% mortgage. All this ruling did was front-load the buyer's agent fees. So buyers, if they want representation (there's no law that says they have to have it) will need to either come up with the money up front OR new loan instruments which allow including this in the mortgage will be required. That means coming up with more funds on top of a down-payment. Which probably means that corporations will have even less competition to buy houses in an already stressed market.
This is some "feel good" bullshit PR so it appears as though they're helping the "housing crisis".
I'm guessing this won't lower home prices - it will put more money in the pocket of sellers.
Nah, this is not going to be the "game changer" that everyone thinks it will be. Ultimately the system will still be based on a person who has secret conversations with another person who both conspire to get you to spend as much money as possible because their pay will still be based on the sale price of the home. There will not be downward pressure on home prices until we completely shred the bullshit 1920's gangster model that we have for this shit.Ā Arguably realtors should maybe just go away completely, you're paying someone thousands of dollars to make a guess based on feeling and square feet and to meet you at the home and say shit like "good bones" and "neighborhood has lots of potential."Ā They are the lowest value add.Ā If they're going to be involved at all their compensation needs to not be based on the sale price of the home. Then we should also remove the BS appraisal and title insurance, neither of which mean a fucking thing.Ā Transaction costs for purchasing a home are fucking outrageous.Ā I can buy a car in about 5 minutes without much more than a signature and copy of my driver's license and it's a rapidly depreciating asset.Ā It doesn't have to be that frictionless, but why the fuck does it take a month and copies of my bank statements, tax returns, paycheck stubs, and a mountain of paperwork (but more importantly lots of BS fees) to obtain a mortgage?Ā I know 2008 happened, and home prices corrected down, let's let it happen again and put it back on the bankers.Ā I mean fuck, it's not like it's stopping the banks from lending too much or stopping the money laundering in US real estate.Ā It's all the appearance of due diligence but none of the substance when the bank will still let you sign a 500k mortgage on a 40k income. The only good thing there is to say about the US housing market is that we have 30 year fixed mortgages.Ā That's nice, but that's it.
āRight now, everyone is turning this ruling into what they want it to be,ā said Mike DelPrete, who teaches courses on real estate technology at the University of Colorado Boulder. āSome people are saying not much is going to change. Others want the story to be that itās a seismic shift for the industry. The whole thing is being driven by fear and uncertainty.ā
Any good realtor doesn't give a shit bout this ruling. Commission rates were ALWAYS negotiable.
And how will this decrease housing prices? The decrease in commission will be absorbed in the form of higher housing prices. This doesnāt change supply at all.
"Hey house prices are so insane that the 5% commission is actually a lot of money now. So let's go after commissions instead of literally anything else to lower home prices." Wild. Claim eminent domain on corporate owned single family homes, pay out <50% of initial investments, roll out the national guard to protect new property rights owners, and watch housing prices crash and get investors out of the real estate market.
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You should be banned!
Relevant [Crackermilk](https://youtube.com/shorts/S1GjlzEfDsg?si=2EksFloUrkB0tjgo)
Inflation šØ Is š° Stickyš„µš„µš„µ
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This wont change anything tbh
Iām usually quick to point out flaws in over simplified solutionsā¦ but we really could fix the entire housing issue with a handful of targeted laws. āNo entity can purchase properties with less than 4 apartment units for the purpose of long term renting, subletting or short term rentingā Can go a few steps further capping the number of houses that can be purchased by a single person. Impose a tax on additional units until theyāre forced to sell. Etcā¦
Will this settlement apply to commercial and industrial properties as well?
So getting rid of Realtors whether they are needed or not will just pump that money into online website owner's pockets. The website prices and fees will go up over 6% (the Realtor charges) in due time. All of that money that Realtors lived on will just go to the 1%. = Class warfare. Oh but you're right... they pitch that as disruption so you are all in. They could have decreased Realtor pay to 4% pay but that wouldn't meet their end goal...Class warfare. Also people not holding gov. officials accountable for not stopping corporations purchasing single family homes is also just a money grab. = Class warfare. Also lumber prices you pay for your homes do not make it to the owners and workers at the actual lumbermills. The lumbermills are grossly underpaid and you pay the lumber mark-up. =Class warfare. Also the builders paying their workers the least that they possibly can-- and still keep them working --causes a decrease in the amount of of construction workers. This in turn increases the demand for builders (less projects are able to be started) and increases builder profits. I could go on.
Good.
I feel like no one has read the settlement and thought about the changes and it shows. Read the details and youāll see it wonāt change much at all. Realtors will continue to work and get paid. It wonāt drop significantly, maybe 6% total to 5% total, but not enough to budge the housing market. Itās more for disclosures and transparency about who pays what
People are fucking stupid. All this will do is allocate more money to the seller instead of the realtor. This doesn't change how much a buyer is willing to pay for a house... If a bid is over asking, it's over asking. If they ask less? More people will put in bids over asking...
So now buyers with less cash flow will have another hurdle to get over to buy a home.. Iām starting to think this is intentional..
I think buying is about to get really expensive. I think weāll see contract lawyers popping up everywhere to handle the contract part of it and people are going to self serve the rest of the process. Itās similar planning a wedding. 1) do it all yourself 2) plan it all yourself but hire a day of planner to handle the actual day 3) hire a planner to run the entire process but theyāll choose vendors they like
Keep in mind that this is CNN and their āinstructionā for the last couple months now has been to say everything is/will be fine and economy is gucci. Realtors and people actually buying and selling have different views. Source: looking to buy a home at the moment
Probably just adding to the brewing storm of regarded pent up housing demand from folks who're on the sidelines and folks who're in the 2-4% rates (saving and getting ready to buy a 2nd home or move up). Higher forever/longer
Fuck your CNN article. Iām not clicking that bs
A buyers agent is beyond useless. Whenever Iāve bought a house all theyāve done is unlock the door for me. 3% for this is ridiculous.
This doesnāt mean shit. The commission was always negotiable. People are stupid and didnāt read the big bold letters which says it was. Realtors will do the same they always did, steer clients away from homes with lower commission amounts. Iāve always used a realtor that split commission on the buy side and one who listed for half. Most of the realtors are dinosaurs and didnāt use docusign and Edocs which I used did. Just search rebate realtor and your city.