Zillow Plunges After Verdict on Real Estate Brokerage Commissions
- Thread starter GON
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Uhh, to my knowledge Uncle Sam doesn't get a penny. Your local county, city, state might - but Uncle Sugar does not.Sorry, Additional rant; Closing Cost / Title Company fees are total BS.... Example, I am paying a document fee, a processing fee and a examination fee (Apparently paying hundreds for preparing a document does not include said document being reviewed)
Don't even get me started with Uncle Sam getting his share... $3,300+ in recording fees, stamps and taxes! For what? Some government worker spends 5 minutes or less updating a database is updated and maybe printing/filing a hard copy. Does that cost $3,300? Heck no, just the local gubernant getting their piece
Closing fees, Title company fees are real costs. You will be happy to have paid those when there is claim against your title for something that happened 75 years ago you knew nothing about (ie, developer built YOUR house on a graveyard and now your house is being condemned - guess who pays you (hint - title insurance).
And you are right about "said document not being reviewed". Different people doing different jobs.
That's why there are mortgage brokers, mortgage bankers, realtors, agents, lawyers, title examiners, surveyors, paralegals, and more. Doc fees go to the county and have to be paid to register your deed at the office of deeds. The history of title has to be researched, and "certified" before title insurance will be written, etc.
That's why there are lawyers who specialize in real estate - a mistake is expensive and can cost a lawyer their license (so they lose their livelihood).
You get what you pay for.
For most people, a house is the most complex financial contract they will ever sign. Just because it's hard to understand, doesn't mean it is not necessary.
See my post above.
Buyer's have to be vetted, documents verified, funds verified, etc. That all takes time and time is money.
Education is not everything. Some poorly educated people are the wealthiest in the world because they have the skills and experience to grow their own businesses. If you think RE agents are overpaid you are always welcome to join and see if you can make it. Not everyone makes money just like many in the field of other sales.
Marketing cost, the time you spend listing, the time you spend negotiating, the time you spend staging, the "free sandwiches and tacos" to lure you to the house they list, the showing someone a house and the other services they offer not officially in the job description (driving people around to listing, searching for listing for you to take a look at, etc).
And sometimes they get sued like any business owners because the seller lied, or they made a mistake, etc.
Unlike a paycheck, RE agents are more like a business owner who may not break even sometimes. You see the successful ones but there are many who tried and couldn't make the cut.
Your response is born out of ignorance. The words "generally accepted" proves it.
Then again, this is the same type of posts we read about the medical, law, building, plumbing, electrical etc industry or any industry where one has no knowledge nor understanding.
HM...NO. You are really showing your ignorance in such matters.
The case recently settled: https://fortune.com/2024/03/15/nar-settles-lawsuits-real-estate-commissions-threat/
It states "The settlement could slash real estate agents’ commissions by up to 30% over time and reduce the total number of real estate agents considerably, according to some industry analysts."
Any realtors with insight as to when this reduction would be effective or what period of time it would be phased in?
It states "The settlement could slash real estate agents’ commissions by up to 30% over time and reduce the total number of real estate agents considerably, according to some industry analysts."
Any realtors with insight as to when this reduction would be effective or what period of time it would be phased in?
Its collusion - which is not allowed in a free market.
MLS controls the market. There a monopoly. They force 6% on you if you want into MLS. 6% in a market where houses sell above ask in 2 days is too high. In a slow market - it might be too low. Its simply illegal activity to dictate price in a free market, especially given that all these agents and buyers and sellers are supposed to be independant.
Standard Oil and Ma Bell were forcibly broken up for having less power. The govt recently squashed the merger of two nothing airlines Jet BLue and Spirit for anti competitive reasons. Yet the one entity that controls the biggest sale or purchase of your life is a complete monopoly. The fact that they weren't broken up 30 years ago is pure proof of the power of their lobby.
Really some people should go to jail but that never happens.
This is the same in every sales profession. If you were guaranteed a result it would no longer be a sales position.
Again, I am not saying agents are worth more or less. I can say, without a shadow of a doubt - that fixing the agency fee is collusive.
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What happened to Cheathem? Was he disbarred?!
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I know when I bought my house in 2002 I had zero experience nor understanding. I called the number on the for sale sign and the realtor was so happy to show me this house and all the others he was the selling agent for.
Anyone worth his salt would have explained that I should have my own agent.
Years ago I was being sued for $2 mil and an atty explained to me I need my own representation as the insurance cos attys are acting in my employer’s best interests to include throwing me under the bus.
Western states normally do NOT need a lawyer.
6% was never ever actually earned, only served to make prices higher, artificially.
Negotiable the last many years, now gone. Thank you very much.
6% was never ever actually earned, only served to make prices higher, artificially.
Negotiable the last many years, now gone. Thank you very much.
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My experience when I got in trouble in my early 20s.
An attorney told me, have you been charged with a crime? No? Then you don’t need me.
“There is nothing that I can do for you, that you cannot do for yourself. But if you want me to hold your hand and be with you in court? I will be glad to take your money.”
It’s amazing how people treat you when you’re young—free and good advice.
I don’t know what a lawyer can do for someone in the purchase of a home. But I’m not very experienced, just applying common sense.
I've always thought 3% is crazy.
300k sale, that's 9,000. No way they are putting 300+ hrs of work into that sale.
300k sale, that's 9,000. No way they are putting 300+ hrs of work into that sale.
6% is twice as crazy? NO it's a million times as crazy.
Seller paying!
What you mean $300K?? That was so 25+ years ago. Try a $6000 commission for the same or even less work when buyers are BIDDING on the house ABOVE asking price.
I paid less than 300k for my 4.5 acres and buildings in 2022. Offered almost 50k less than asking.
Paid 200k for .5 acres and new 3 bed house in 2009
It's not as big a deal as the media and grandstanding public officials make it out to me. It's more the uniformed media who is clueless on all subjects they report in today's world. Can anyone disagree with that statement?
First let's be clear, there was a settlement offered by the NAR to avoid possibly a VERY costly penalty.
What does this mean to the public? Not much, contrary to many of the posts I am reading here shows that the buying public and so called reporters do not understand agency and fees.
Previously in many states if not all. In a listing the listing agent along with the homeowner would list the percentage of the sell price that an agent selling the house would get. Simple stuff and REALLY that simple.
This is now regarded as price fixing (or whatever you want to call it) Also NAR would require you to join the association to list homes on MLS>
Selling agent fee and listing agent fee, NOTHING CHANGES except it makes is more transparent to buyers and their agents that the agents working with buyers can ask any fee they want now.
SO what does this mean to the consumer and the agent? Nothing.
The listing agent will still get his/her fee of 2 to 3% when the house sells.
The agent that sells the house will get whatever fee that agent has with his now client/customer. Typically 2 to 3%
SO what is the bottom line, it cost the buyer 4 to 6% to buy the house or if you want to look at it the other way, it cost the seller 4 to 6% to sell the house. Either way the commission is eventually built into the selling price of the house most times.
The public and media so uninformed do not even realize, commissions can go higher now. A selling agent can require a 3% selling commission (or any commission) and a buyers agent can refuse to work with anyone who doesnt pay 3, 4, 5, 6 or any number that the buyer agent wants.
The old way, even with buyers agency was known as SBC selling broker commission. It was a suggestion of what the homeowner would pay. The homeowner and selling agent should make out better in this new deal and the buyers agent will only make out if they are good and not work with any buyer for less than the agent wants.
So now the rule change makes it clear, both parties, selling agents and selling buyers can ask any commission that they want and no longer can a homeowner and their agent suggest a fee that they will pay to a selling agent. At the time an offer is presented, the fees will be in the offer, it is at that point that the homeowner can tell the agents yes or no. The homeowner will no longer be able to expect what fee the selling agent is asking in the deal until the deal is presented where previously they sort of knew the selling agent would most likely adhere to whatever was listed as the SBC (selling broker commission)
Quite honestly the homeowner is at a disadvantage now. Listing agent most likely will list a home at 3% (or any number they choose), homeowner wont realize when a buyer comes along, buyers agent could ask for anything they want, meaning even 5%.
It really is a big nothing but attorneys and politicians will grandstand and the public will not make out as the media presents it. In fact in many states it already works like this anyway. An agent who is working in a client relationship with a buyer already has a contract with that buyer on what the selling agents fee will be.
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Location, location, location
It is interesting according to my daughter in Kodiak, many folks who are assigned, stay or come back. Another daughter in Juneau has located a couple neat places. A house where your view is the glacier would be nice.
Me, thinking HI next stop.
Maybe, but in the past you had to list the buyer agent fee - and if you listed one low no buyers agent would bring customers to your property. Now its negotiable once the buyers customer has fallen in love with the property. Make bets there will be plenty of under the table deals going on now.
In reality the current system if extremely flawed in that the buyers agent does not work for the buyer - they work for the commission the seller is paying. I don't think that is a particularly good scenario - given how there is usually one or two big brokers in every market that control everything anyway.
Also, this is just one lawsuit settled with the NAR. There is a DOJ probe of the NAR, a class action, and several suits in particular states as well as against specific brokerages that this suit does not affect. If anything this settlement tells all the lawyers there on the right scent.
