Breakdown Of The New NAR COMMISSION RULES

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#realestate #firsttimehomebuyer #javiervidana

[EmmaConnors-no]

There are already buyer's agents out there who work on a flat fee. Our first buyers agent had a fee of $2500 which made us feel more like they weren't trying to upsell us and like they actually negotiated to help us. After we bought they wrote us a check for the amount over $2500 that they got from the closing. Best agent we ever had. Only time we felt like our home buying process wasn't a scam.

[LoveisnotAVictim]

Just seems like another hurdle us first time home buyers have to face along with limited homes and soaring prices.

[AlexM-vtpu]

People actually think that the sellers are going to pass on the savings to the buyers lol.

[pederrottiger]

I love this. Javi is definitely working clean up.

So here’s how you do it: discuss tiered pricing with your agent and work in a percent for yourself (you are now working on negotiating closing costs so you should be compensated). You, the buyer can work this in your favor. Here’s a sample offer what you can negotiate with an agent:
1. Up front/ sunken cost, let’s say 1.5k
2. Commission based bonus - if the agent can get the seller to pay for buyer’s agent, they get x%, let’s say 1%. This would REPLACE/ cover the sunken cost.
3. If they reach 3%, the. The agent can walk away with 2%, buyer gets 1%.
3. If they can get over a certain amount off of the purchase price by percentage, the buyer concedes the final 1 percent to the agent.


MAKE THEM WORK FOR IT and Do not give them a cut of the total off. Lazy agents should be a thing of the past. This does not suck for you unless you are lazy.

[andy]

Someone needs to start a lawsuit to end tipping “standards”

[joeyk]

I've bought and sold numerous houses myself with my lawyer, no agent. If you think what these agents do is worth $24, 000.... you're completely out of your mind.

[blancajrodriguez]

Honestly, I am a new agent, and I strongly agree that agents should NOT be getting paid this much in commissions! I think $5, 000 per transaction sounds fair. I mean, the transaction stuff I have done thus far doesn't seem like rocket science in order to justify earning $15, 000 in commission. I am also a special education teacher and I can honestly say that teaching is "harder" more "stressful" than real estate transactions. AND!!! I have 2 master's degrees and two credentials and I still don't make nearing enough to compensate for the VALUE and EDUCATION I provide to special needs students. So YEAH, real estate agents, stop complaining!! lol

[jfloresdrums]

In CA, commissions should be capped at 1.5% maximum if home is sold within 6 months. When we purchased our home we went with redfin because we had previously sold our home with redfin and their fees were very reasonable. We interviewed 3 other realtors and they all wanted no less than 3% and not once did they mention it was negotiable (i already knew it was negotiable, but they wouldn't budge).

[justagirl]

I think buyer's agents (and to an extent selling agents) have been overpaid for a long time with the 2.5-3% average. With everything so readily available online, the buyer's agent in particular is doing far less work than they did 20-30 years ago but they are getting paid far more with how far housing prices have gone up compared to inflation. This resets the playing field and I believe sellers will still be paying the buyer's agent in most cases, but the fees won't feel forced at 2.5 and instead can be reduced to a more reasonable agreement based on actual value of the work being done.

[amesasw]

In Cali where a cheap home is $1 million, flat fee is a dream. Even paying 1% 10k is a joke. Would happily pay 3-5k flat

[arga]

What is actually going to happen is that buyers will be more inclined to go without an agent and be rewarded with a lower price for doing so, OR buyer agents will move to a more fixed priced instead of commissions, where they'll get paid less but more consistently as those who didnt buy would still pay a fee.
Both of this scenarios are a win for everyone, including good agents as they will have less competition.

[reservecurrency]

Fear seems to be at all time highs amongst buyers. I think the best time to buy will be in the next 12-24 months. I think in 4-5 years, it will be another case of everyone saying "I wish I would have bought a home". With that being said, nobody should be overpaying for homes. Buyers should be looking for the best deal and only buying if they have great credit. I'm speculating... However, fear hasn't been this high in over a decade.

[mihoda]

This agreement gets at the fundamental issue:

Buying agents should be working for the buyer and therefore should be paid by the buyer.

That's it! Buying agents being paid by the selling agent is a blatant conflict of interest.

[sarahl]

I'm so glad that your channel helped me buy my first home last May. Even if we got a 6% interest rate, it was the time we were ready and financially prepared to buy. This new rule sounds really confusing and negotiation is actually scary to a lot of people.

[GeeMoneyESE]

That’s good. I was purchasing a home in 2022 and it’s seemed like “my agent” was representing the sellers interest over mine. F that

[humannature]

In other countries, there is only 1 agent for the buyer and the seller either supplied by the buyer or the seller but people generally go out and inquire on their own. For example: A house is for sale (for sale by owner). The owner has a real estate agent working for them. When a "direct buyer" wants to buy it, the seller's agent prepares all the paperwork and handles the transaction. The buyer has insurance for the purchase and has a contract prepared by their lawyer that the buyer agent would need to agree to. Then the rest is the same.

[CarlosMendez-gdzm]

You only mentioned the negatives of this new law. Without mentioning any potential benefits, I know you have a vested interest. But sometimes, most of the times in my perspective $15, 000 for two weeks worth of work on a few documents that are prefilled an exorbitant amount. $5000 flat, for each one is fair. Especially because a lot of the paperwork is pre-filled, and all your changing is a few items.

[siccerson]

Seems like any percentage model on the buying side gives the agent an incentive to find the highest price house you can afford, and incentive to NOT help you negotiate the price down. I like your viewer comments about fixed price + splitting what the agent can get the seller to pay in closing costs or buyers agent costs. Smart! Hoping for more videos on this!

[relaxinnature]

My previous buyers agent, who I didn't think was offering much value to the process, wanted me to sign a 6 month buyer-broker agreement after 3 months of us making multiple offers and not being successful. I refuse to tie myself to any one agent that I don't really know how well they will represent me.

[vee]

Every thing is negotiable but it’s rarely negotiated