Home Buyers Will REGRET the New Commission Rules

Home buyers are going to regret this recent settlement with the National Associations of Realtors. Come July, realtor compensation is going to change, making each party in a home sale pay for their own representation. While this will be a huge savings for sellers it’s going to cost the home buyers more. Let me explain how this is will effect the pocketbook of home buyers and I’m going to give you suggestions on how to move forward with this.

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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River

#realestate #jackiebakerrealtor #jackiebakersellsnj #homebuyingtips #homesellingtips #realestateinvesting #jackiebaker

[AndrewTrung]

In 2004, I bought my first home without an agent from the seller who didn't have an agent. I then sold my first house without an agent to a buyer who didn't have an agent. Cost= $2, 500 attorney fees + 1/2 closing costs. 5 houses later still no need for an agent.

[mbear-lvxq]

I would be more comfortable in negotiating for myself than to have two real estate agents making side deals.

[petebusch]

We hire an "agent" to look out for our best interests only to find out realtors are only looking out for their best interest.

[elbertkim]

No broker should receive anywhere near 2-3% on either side. They are glorified sales persons . They should work on a flat fee. The closing attorneys do the paperwork and that should be it....$1, 500 is a reasonable fee for the attorney.

[matthewsmith]

I don’t know guys
I’m 40 and over the last 18 years I have bought and sold 10 residential single families and one small commercial building and I’m no genius but I did not need an agent once. With the internet and a million different businesses out there to facilitate the contracts and the help of transaction coordinator. Buyers agent are about as useful these days as a travel agent lol.

[chrisb]

I think it's hilarious that the only people saying these changes are bad for the buyer are agents. The same agents who have been benefiting financially for decades off the backs of these outrageous commission rates.

[rsmith]

the LISTING agents are WORTHLESS the LISTING AGENTS should be subject to a flat fee ...once they throw the listing into the MLS they are NEVER heard from again. It is the BUYER's AGENT that does the bulk of the work in a property sale

[angelalaskodi]

Here's a pretty good one. In 1996 I purchased my home without having my own agent. I also told the seller's agent that I want $2, 000 back during escrow for not having an agent. They gave me exactly what I wanted..

[Pomp]

I negotiated to 5% seven years ago with my agent, which I still thought was ridiculous. 3% is more than sufficient. This change should’ve happened a decade ago.

[richardbarry]

I will gladly pay my buyer's agent $12, 500 when I am about to commit a half of million dollars plus interest on a deal if he/she refers me to good inspectors and title insurance and negotiates so that I can back out of the deal if the foundation is found to be cracked or the sewer line is about to implode or has unpermitted construction. Obviously, someone who does not want to pay for services provided by agents does not have a clue about how much money and disruption repairs require.

[aalhdy]

that's going to be even worse towards the sellers, because the buyers not going to be happy about it and will be less buyers in the market,

[marvelwonderwoman]

I've never needed a realtor. Waste of money!

[adtsproduction]

I’ve owned several homes in the past and I have successfully sold everyone of them for sale by owner. You have to find an attorney that specializes in this and usually their fees extremely low compared to real estate fees. There’s no law that says you have to hire a person from a real estate agent to sell your home.

[thndercat]

Disagree. It has never been easier with software and technology to close the gap and get buyers and sellers together. If you think the paperwork and process is worth 3% or more you are old and should retire.

[petebusch]

I hired an agent to locate and find the home were looking for. All they did was send us a link to listings they could make money off of while at the same time overlooking properties that may have worked out very well for us because there was no money in it for them. I didn't know this and am now very pissed off about it. For the money you agents make and what you provide is an absolute joke.

[tcs]

There are so many misleading statements in this video, including the assumption that the buyer's agent will look out for the best interest of the buyer. They are very much aligned with the seller's agent in aiming for the highest price possible and closing the deal as quickly as possible. Anyone who believes that the buyer's agent looks out for the buyers best interest is living in la-la land.

[carieyounginsurance]

We wouldn’t be here if commissions weren’t so damn high in the first place 5-7% is ridiculous if you think about it- it eats up way to much of someone’s equity in these times where housing is more expensive than ever

[Skeptik]

Chuckle, and no way. An agent commission was always negotiable. I bought and sold several of my houses without the services of an agent and saved both my buyer and myself thousands. All an agent does is bring a buyer and seller together (I took the agent classes both in PA. and Florida). It is easy to advertise a property today and an attorney can settle the paperwork. I met several agents who rely on the RPR and know next to know next to nothing about construction and upgrades. I advertised a 1/2 acre lot last year and a buyer's agent called me saying he had a buyer. OK, I paid him a 2% commission and got full fair market asking price. I doubt if he had 4 hours time invested.

[BigGollum]

To be honest 3% it is a lot so everyone lately was a realtor, this commission shouldn't be based on the price of the property more on the hours you dedicate!! most realtors won't do much

[stedmays]

Confusing --- nobody knows how this will play out in the real-estate market, and it's completely unclear and confusing for cause buyers to postpone buying till new norms are actually established about buyer commission amounts.