Realtor commissions explained
Realtor commissions explained
A class action lawsuit alleges the rules written by the National Association of Realtors have created inflated commissions unbeknownst to buyers and sellers. Here’s a look at how the commissions are determined and what the lawsuit is alleging.
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This whole video is a joke! Where in the NAR rules does it say any of this?
Has this guy ever bought or sold a home?
There’s a seller/agent agreement and a buyer/agent agreement both outlining the fees of agent services.
All fees are negotiable.
The seller doesn’t “pay” out of pocket, the seller agrees to disperse monies owed to services from the transaction of the sale.
The price of a home is based on market value, not agent fees.
On 18th of july the law of changed in 2024 now buyer will give the commision on his own.
Buyers are NOT out of the conversations at all. Buyers are many times willing to pay agent commissions but IF the seller are ok to pay the buyers side commission that ONLY helps the buyer and yes the agents. If the seller agreed to pay all commissions, it is usually split equally between agents unless an agent is greedy. This article acts like there is secrets. Commissions from EITHER side are normal FOR ALL THE WORK WE DO. Some sales go easy and yes owners can sell alone BUT many are not easy. Sellers dont always have time to show the home at all hours and ability to qualify each buyer. Not to mention all the scammers now out there pretending to be a buyer or seller. Plus handling all the inspections, appraisals and any thing else needed concerning deed, title, insurance , termites or any other problem with house OR contract. An agents experience is what your paying for.
The only real thing changing is more sellers deciding they dont want to do as much concessions for buyer therefore the buyer will pay more out of pocket. Buyers will then have to JUST look at For sale by owner homes. Then without an agent they wont be guided on the true value of the home and may pay too much or get screwed other ways. Trust me.
THIS is all only hurting the buyers – really think about it. This article is is just trying to bash agents. The commissions have ALWAYS been negotiable for both seller and buyers. If their agent did not explain any of that then they are in the wrong. Many clients that are fine with helping the buyer cut costs as most sellers are getting a good profit. Buyers have so much upfront expenses. Now it will be even more costly for BUYERS 🙁
There are MANY FALSE statements in this video. -realtor Bridget (hopefully some people fact check that these are not NAR rules.)
Who the hell in 2024 is using a realtor to buy or sell a home. My god, it's so 1980.
I am a seller and I will pay 7% commission to my sales agent. Sold the property for $75000 and after all the fees , charges and commission i end up paying I will get only little over $66000 net proceeds . Now that's a legal robbery
The AGENTS don't necessarily earn a full 3% as this video states. The BROKERAGES get paid first. Then, they have a "split" or agreement with their agents determining their pay. Way to make it look like every dime goes to the agent…it doesn't, and we are one of the very few career industries that puts a significant amount of money OUT before we see a possibility of it coming IN. Is that a risk some of you would take, or COULD take? You need to have $$ in the bank to do this career. And we work pretty much 24/7 without a vacation that we can be 100% OFF and left to enjoy our time off……
I guess this is in the US, I'm in Canada. I'm not an agent. Here the commission for the buying and selling agents is split out and had been typically 5% (2.5 & 2.5) but it is set by the Seller/Seller Agent. The Seller can shop around and negotiate for the Selling Agents commission and together decide on what the Buying Agent gets. With competition the selling agents have been offering 1% and they typically offer buying agents 2 to 2.5%. You offer high for Buyer Agents because you want to attract a buyer. Both agents invest their time up-front with no pay and no guarantees. Sellers and Buyers can change agents, leaving previous agents without any pay. On top of that, agents invest in their clients. For Sellers, agents may put up sales signs, open house signs, run open houses, assist with decluttering, staging, photos, videos, drones, website posting, brochures, hand-outs etc. as well as their knowledge and expertise, education, certification, advise, connections to services, negotiate, and file the appropriate paperwork. Selling agents also advise on clauses to you and review Buying Agents clauses and to make sure that the deal goes through clean. Buying Agents too invest in their clients with no up-front payment and can get dropped and replaced with another agent at anytime. Buying Agents are helping you look for a home to fit your needs. They will show you a lot of homes without pay without any commitment from the Buyer that they are actually going to purchase something. There is a lot to scheduling a showing, including being prepared with listing printouts, reviewing in advance, doing market analysis for your client for all the homes they are looking at. During each showing, the Selling Agent has to think that you may decide to put an offer in on it, so they are inspecting the home as they walk through it. They are looking for concerns that they can advise you of, clauses to add to the offer, and making note of anything that you may want to specify keep, like appliances (makes), window coverings, light fixtures, shelving, things that are attached to the home, and even furniture, outdoor equipment etc.
So do you think the Selling Agent is worth 2.5% and the Buying Agent 2.5%? Well, they don't get that. They have yearly fees to be licensed for this profession, yearly fees to the Real Estate Agency, Yearly office expenses, AND they pay a percentage of their commission to the Real Estate Agency. If they have not made their quota the percentage to the Real Estate Agency can be very high. PLUS, Agents pay for access to MLS and other tools required to do their job, like other Real Estate Boards & DocuSign.
I think we should be looking at how other people get paid for their work, Real Estate Agents are the most under appreciated and underpaid profession that I have run across. They should be paid for the work they do, when they do it, like a Lawyer does. Commissions on Buying and Selling should be lower and seen as a bonus not as their base pay. But maybe that is just me.
Completely and totally untrue. This is a very biased opinion- commissions have always been negotiable.
I know this is a 3 year old video but it’s an eye opener. Recently sold our “paid in full” home. We were told in order to buy the house we wanted priced $150,000. plus pay everyone involved we needed a minimum of $175,000. Once we had a buyer and we accepted the $175,000. Offer based on what we were told. Well once the paperwork got to the lawyer and he dispensed all the payments he announced we had a deficit. This means $175,000. was not enough to pay everyone. We accepted the offer based on what they told us! So the nice bank set us up with a mini short term mortgage of $1,100. a month how nice of them. And we are older on fixed income. We went from a paid in full home deed in hand to a mortgaged home with bank clause (claws). I was shocked!! How can they tell us $175, would be enough and then poof it wasn’t. They are the $ professionals aren’t they? This has caused us terrible hardship. There was an agent we enlisted and an agent that actually found a buyer. As far as I understood those 2 share the commission. The payouts for just those two was $12,000. seems rather high gee what is 6% of $175,000? And as soon as we moved in we got a past due municipal tax bill. How possibly do we owe property tax on a house before we took possession of it? I thought all accounts were started at $0. for new owners?? Who do we go to about this problem. So paying a mortgage for a deficient and now demand back taxes on a house we just bought? This just doesn’t sound fair. And no $ to get a not corrupt lawyer to check those payouts.
Laughing at all the butt hurt agents now that the party's officially over 🤣🤣🫵🏽
Absurd..Ridiculous.!!
lol no thats not how it works KARE 11 needs to do more research than reading huffpost blogs
So as a buyer I could ask to see what commissions my agent would be receiving on the houses I'm looking at. From there I can only pick the houses with sellers which made a good deal with the brokerage/agent they chose. This would bring back competition.
I do this day in and day out I can tell you how much your house will sell for and how to sell it fast and I can help you negóciate with the sellers and make sure you pass all inspections, I can also help buyers negóciate the house to a good price for them and help them fined a good house that the bank will finance or if it’s even in an good area or if the prices in the area are going up or down. I think I’m worth my 2.5% commission. My broker takes 20% of that I don’t keep it all.
I do this day in and day out I can tell you how much your house will sell for and how to sell it fast and I can help you negóciate with the sellers and make sure you pass all inspections, I can also help buyers negóciate the house to a good price for them and help them fined a good house that the bank will finance or if it’s even in an good area or if the prices in the area are going up or down. I think I’m worth my 2.5% commission. My broker takes 20% of that I don’t keep it all. I make an average of 2,000 that I have to pay taxes on at the end of the year.
"Screws one of the only jobs left that helps the middle class succeed"
Amazing video, I enjoy the content on your channel. I am a realtor out here in Chicago, recently started my channel. Would love to support one another and potentially collaberate together in the future. Hit me up on IG @fullerlifestyle_