A RUDE Awakening Of The End of 6% Real Estate Commissions

If you wanted to buy or sell a house, a significant fee was involved, typically around 6% of the house's price, split between both sides of the real estate transaction. However, that's changing. In November, the housing market was shaken by a $1.87 billion lawsuit. The National Association of Realtors (NAR), representing over a million real estate agents, decided to settle multiple lawsuits by agreeing to pay $418 million and implement changes to reduce these high fees. They will no longer require agent fees to be listed on house listings, theoretically making buying and selling houses cheaper. This change could potentially lower real estate agent fees by 25% to 50%, allowing various services that assist with buying and selling houses to compete more effectively. As a result, houses could become more affordable for everyone. Many people are excited about the prospect of new, more cost-effective methods for buying and selling houses, benefiting both buyers and sellers.


For A Collaboration Video For Your Affordable Housing Option Or Comp.
➡️Listen to this as a podcast;


Or You Can Call Me Direct At: 1-225-246-1812

📭To Send Mail:
Kristina Smallhorn
PO BOX 1271
Prairieville LA 70769
#housingmarket #homes #KristinaSmallhorn

eXp Realty LLC,2900 Westfork Dr. Suite 401, Baton Rouge LA 70817
225-246-1812, Office [phone] ext# 149
Kristina Smallhorn is a licensed REALTOR® with the state of Louisiana, License 0912122918
Disclaimer:
LIVE STREAMS ARE OPINIONS EXPRESSED BY LICENSED REAL ESTATE AGENTS IN DIFFERENT REAL ESTATE MARKETS. DO NOT BASE YOUR HOME PURCHASE OR SALE ON THE OPINIONS EXPRESSED IN THIS STREAM. ALWAYS CONSULT YOUR LOCAL REALTOR FOR YOUR MARKET CONDITIONS.

[theblackpianist]

The percentage part is what gets it for me,

No one else, GC, electrician, plumbers, carpenters (who do the most work 😏) plasterers, roofers, etc.) gets a percentage, except for this lady who walks in at the end and smiles for the pictures.

Apologies to realtors, .

Excuse my slight tone of resentment.

[Horatiobuild]

The problem with these commissions is that the proportionality is unrealistic. A 600k house does not require necessarily any more work on the part of the agents than a 300k house. I was a specialty inspector in residential did hundreds of inspections for realestate transactions. Stopped doing it, a quality inspection takes a lot of time and people didn't wanna pay a higher price for quality.

[robertgawrys]

If you boil all this down, it simply means that ALL agents will have to become more competitive and hustle more. The days of sellers funding $20k paydays are over. I've FSBO my last three properties. I paid a buyer's commission in two of them, but in both cases I refused to pay more than 2%. With this settlement and it's mandated changes, that 2% will now be a flat $5-10k, max. Sellers agents are simply not doing enough work to warrant the kind of pay days that the previous 6% model gave them.

[makidominguez]

I have personally inspected several NEWLY built homes with too many material and labor quality issues to continue with the build without these being addressed; some with severe structural issues and these still managed to pass inspection . Housewrap, siding and drywall hides all sins. No other industry gets away with charging top dollar for an inferior product that goes unnoticed untill it's too late. A home that should last a lifetime CANNOT only have a one year warranty from the builder.

[UKindness]

Never use an inspector in the same area of the real estate agent. Sorry to say it but agents want a sale and will use their inspector who will not give an accurate account of things.

[s]

Realtor saying it's worth 6% because she had to work two whole days!!!

[Gudgurl]

Thanks for sharing. I used to love real estate. Jumped out when I seen the corruption. I couldn’t compete. Ethics were mocked and frowned upon.

[michaelsmith]

It was/is still ABSURD to pay a percentage as an agent fee.
There should be a set fee for a set period of time.
There is literally nothing substantial difference in listing a $100k house or $500k. Yet, paying 5x more because I sell a nicer home doesnt yield 5x more expense to the agent.
When an agent provides additional services like 3D pictures...that's an expense. But, again, doesnt justify a %. It should be a fee, like everything else...
Cost + Markup.

[Vport]

Ms. Sylvester seems like a nice/honest person. I would be interested to know her take on whether Real Estate Agents play any part in the price inflation that has been going on. I know all the rest of the excuses. But there is still this "tiny inkling" ... that commissions have been incentives to padding the prices .. to increase commissions.

I will "try" and listen to the rest of this discussion .. to see if anyone addresses this eternal question.

[triciab]

No part of concessions or commisions should be part of the sales price. This artificial inflates the value for the neighbors house.

[thiskiddyahoo]

Inspections are a MUST! Realtor and Buyer need to be part of it! Not a day to miss! Everyone needs to be reasonable in their demands.

[techworld-kclt]

I was going to hire this agent, but he didn’t bother to come at least seeing my house after two weeks talking to him; I find him to be lazy for the commission I will pay him, so he was a no go

[craigdvance]

My ex just listed her house and was basically strong armed in to paying both the seller and buyers agent, by her agent basically saying no buying agent is going to bring their clients to your house if you are not offering a percentage. I was told this same thing by another agent in another town.
The real estate industry is resisting this tooth and nail.
Raleigh, nc.

[John-voiv]

The buyers never had to reach in their pocket per say to pay the buyer agent commission, but they actually did, and it was worse! For ex, the house was listed at 430k instead of 400k, the commision was baked into the price, so actually the buyers were financing the 30k comission for the entire duration of the 30 year mortgage, which is worse! Because they are also financing the listing agent comission as well. The 30 k includes the comission for both brokerages, and this is how was done until now. Basically, the seller was paying the comission, but was inflating the house price to make up the commission. This 30k can be 42k after 30 years at 7% rate. Can't believe how many buyers do not realize they were paying both commissions all along! With few exceptions of desperate sellers, divorces, death in family, sudden relocation, job loss etc.

[bmanagement]

In 2017, my agent worked for an agency that was more concerned with protecting 'their builders' who refurbish homes than sellers. I felt abandoned by my agent and swore them off fir the future. This was apparently the best agency in the area.

[soccersprint]

This makes things even more expensive for the buyer

[zachsmith]

In a for sale by owner...that is all you need the attorney to do. That is how I bought my current home. Fraction of the cost and easy process

[Newsinrealestate]

News flash.. buyers are NOT going to dish out commissions for their Realtors……. Dream on…

[JustMe-zkwh]

yup, my kids got a brand new construction during the insane seller's market and was buying from out of state. Because homes were selling fast, many people got roped into waiving the inspections! Kids were one, and house was built without a water barrier so they got water seeping into the rooms by the windows and warranty was expired.

[dsetitoff]

This was hard to watch. You both just kept interrupting each other.