Summers: End of 6% Real Estate Commissions is 'Win-Win'

Lawrence H. Summers, former US Treasury Secretary and Wall Street Week contributor, says that the National Association of Realtors' settlement on real estate commissions will reduce frictions for homebuyers and sellers.

[VelmanLukas]

As a newbie that wants to invest, you must have these three things in mind

1. Have a long term mindset.

2. Be willing to take risk.

3. Be careful on money usage, if you're not spending to earn back, then stop spending.

4. Never claim to know - Ask questions and it's best you work with a financial advisor.

[TheChangNetwork]

Real estate agents dont offer any value

[lostlandmarks]

Realtors don't need to exist in 2024.

[sunriver]

Realtors are the laziest salespeople! All they are is paper pushers. What value do they bring? The house sells itself.

[christiancoronado]

Every realtor I see in social media and TV can be described as sketchy at best. They make commission on the value of the transaction, and have incentive to push up prices as much as possible. I don't like realtors.

[johnstephenification]

Every decision impacts people differently. Instead of taking a myopic view of whether or not this helps or hurts people, realize that it's not as black and white as these responses portray. I've spent the last 24 years as a Mortgage Broker and part of that time was spent as a Realtor. Yes, more competition helps the consumer; however, other groups will be irrevocably experience harm, specifically 1st Time HomeBuyers. Most of these people need asssistance in negotiating a contract. If the Seller won't pay the Buyers Agency Commission, they'll be forced to work with the Seller's Agent, who was hired to achieve the highest price for that Seller. Is that fit Representation (to represent both parties)? Absolutely not. Furthermore, what 1st Time HomeBuyer has an extra 1-3% laying around for a BAC when they've already been savings for their closing costs and down payment for years. THINK PEOPLE! This interview is click bate fodder, presented by those outside of the business, appealing to consumers who don't know the truth behind the day-to-day practice of Real Estate. THINK!

[bella]

Real estate agents mooched off home buyers for decades. The buyer has always paid ALL the commission and still will despite the judgement against National Association of Realtors. Only home buyers bring money to purchase. This has been a massive misnomer promoted by real estate industry. No one gets paid without a buyer. Commissions, attorneys, lenders, inspectors, listing agents, etc.

[monseneureconomist]

WELCOME to the era of no real estate agent to sell/buy a house BU BYE!!

[urbancondospacesseattle]

This is a poor take in my opinion. Hey Larry, help explain how you can automate this:

When representing a seller. Pricing analysis, necessary upgrades, paint colors, vendor process management between painters, handyman, stagers, photographers and videographers are just the start. Pricing analysis has to be perfect. What about resale certificate reviews and then picking your target audience and running paid advertising/marketing to target and retarget them? We haven't touched on multiple offer strategy (just had 10 offers on a listing outside of Seattle). Who is going to skillfully work that room? Not just the open house but fielding 50 calls over the weekend, while helping buyers prepare their offers?

I'm thinking you haven't worked with a great listing agent yet. Bottom line is, on either side, you get what you pay. I highly doubt you, yourself would work with a discounted broker on what is likely your most important asset. I could be proven wrong but I doubt it .

[joec]

I’ve never bought or sold a property and didn’t feel like I was being grotesquely being ripped off by the middle men especially the realtors.

[simpleman]

It's amazing that we (buyer/seller) still have to deal with this framework in modern day where everything can be done over the internet with the exception of viewing/inspecting the property. Most of the time, seller will sell AS-IS anyway; they will disclose what the state requires them to disclose. In some cases, buyers are more knowledgeable (plumbing, foundation, roof, etc - except for the paperwork) than some agents. If the sellers want to sell the property themselves, all we need is a flat fee for seller to list on MLS and they can do their own open house themselves and hire real estate lawyer to do the paperwork (way less expensive). Buyers always can search for properties on any MLS, they can go to open house and either hire an agent to submit an offer (pay their own agent fee) or just hire a real estate lawyer like the seller (way less fee). I searched and went to open house to all the properties I bought over the years and the only reason I needed the agent is to submit the paperwork.

[ColleenMcLean]

It's sad to listen to these "experts" that seem to have no idea what they are talking about . Housing prices will not go down because of seller 's no longer pay the buyer's side fees. You better find a way for buyers to get those fees paid for now, either lenders or families cause they don't want to use their cash, believe me. Or better yet go ahead, don't be represented and see what that costs you

[DemoSpar]

How about doing something about paying escrow 6000 dollars just to do paperwork and see what we can get...

[JamesG]

Redfin has offered total commissions of 3.5% but their market share sucks. Sellers don't choose them because their agents work on salary and don't give a shit if they sell a house or not.

[kennycollins]

With over twenty years experience I assure you I'm not the one uninformed!

[davidtriol]

why doesnt he tell us these new guy knows nothing

[mariapilarme]

I was always thought was abusive. I sold my house with a 1% only in 2008

[MichaelBrown-nyet]

Buyers getting hosed even more. You’ll own nothing and like it. Goodbye buyers agents. By 2030, we will be e told where we’ll be living.

[mrchadz]

To his point about online views.. Yes it can be done because during Covid, you could not view any apartments in person. You could barely get in touch with them on the phone. That said, if I buy a house, I do want to see it in person. Its not the same as Renting. If you rent, you are going to leave and there is no personal investment, for the most part, although you do have to live there for a duration. Thats all the investment you have when renting

[andreawahleithner]

Lol thats pretty funny. Good luck making sure your contract is correct😂 its a legally binding contract