Realtors: Do this if the seller won’t pay a buyer agent commission
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This video is exactly what I needed to hear right now! Thank you both for being proactive.
Brandon the people that complaint to you about buyer agents are the same agents that don’t prospect. You’re doing a phenomenal job. I appreciate your videos
You find a buyers agent that is not charging this 3% commission but a flat fee of $1000.These agents are wanting to keep there jobs you will find one that will be doing it for less to get more buyers.You will be getting the home inspection done title company and mortgage company will be doing the rest of the work not the agent.Also the appraiser should not know what the contract price is of a home for appraisal.
How did you get your agent for 1k?
😂😂😂 you just said title will be doing the work.
The profession of a real estate agent is quite complex and demanding. While there are certainly many agents who do not perform well, there are also many who handle their work professionally. Their role is akin to that of a conductor of an orchestra. The attorney, inspector, and title company do not take the lead in guiding all the parties involved in the transaction toward the goal of closing. The real estate agent plays a crucial role in this process.
After the NAR settlement, there won’t be many buyers who are readily willing to pay the buyer’s agent commission. In the future, agents will need to demonstrate their value to the market through their expertise, and the transactions related to the buyer’s agent commission, which were automatically paid before the NAR settlement, will be handled in a more professional manner. The days when real estate agents automatically received a commission just for finding a buyer and getting a deal started will soon be over. Agents will be recognized for their skills. Instead of focusing on how to receive commissions, let’s focus on how to improve our skills as agents so that we can earn fair compensation from our clients.
There are top-performing real estate agents, and there are those at the bottom. I offer this advice to my fellow agents who have been earning commissions without putting in much effort: If you become an expert in your field, you won’t need to worry about commissions. If you are competent, the money will follow you.”
Why would you pay an agent $1000? I’ve flipped houses for 22 year, never use an agent to sell or buy. It ridiculously easy. Agents don’t actually do anything except make it complicated to scare people into paying them. 99% of the work agents do is marketing themselves to suckers.
Start out offering 3% under list while asking sellers to pay 3% commission if they refuse say will offer full list if they pay the 3% that way your showing value to both sides
I am already losing buyers because they are unable to afford my services. I will not work with someone who does not have the means to pay me. Of course, I will always ask the seller to pay, but in this seller’s market, it’s unlikely they will when there are 27 offers. Very few buyers are going to want to add the commission to the purchase price of the home.
You guys are doing magic math. They DO NOT have $13,800 which is why they need to finance it in the first place. You make it sound like they are deciding to keep the $13,800 instead of paying for it upfront.
It’s time to face reality. Buyer agency will be essentially dead in about a year. Agents can’t work for free very long and stay in business. In your example, you say that the seller agrees to 1% which would still leave a deficit of 2% since the agent was contracted at 3%. It’s not that buyers do not want to work with an agent, it’s that many simply cannot afford one.
Greedy! 27 offers?? 🤣where are you??
@@KAZHE63 I’m in Boston market which is still very hot due to low inventory. How can you call me greedy if I have not shared what I’m charging? 🤔
I expect the same. Now that agents have more risk lying to buyers “seller pays my fee” it makes it much harder to convince a buyer. Seeing a lot of talk on social media questioning this old lie. $400k price, 3% to buyer agent. Buyer puts $400k on the table. Escrow agent cuts out $12k and pushes it the seller who pushes it back across the table to the buyer’s agent. Buyer is “Hey, wait a minute. I thought you said the seller always pays?” “Why yes, didn’t you see the seller give me your money?”
Smart agents will, and many already have, only list homes. Other agents are setting up new businesses doing à la carte services. There’s lower per buyer/seller fees per transaction, but they can do 1000x more transactions.
Then there are the agents staring into the headlights.
There’s plenty of agents I’ve seen online that have the game plan of contract at 3%. If the seller agrees to one or 2% then you can addendum the agreement and lower the agreed commission to either except only what the seller offers or lower. what the buyer comes out of pocket. For example, seller agrees to one percent you can addendum it to have the buyer pay one and a half percent, netting a total of 2 1/2%
@@waterbug1135 I wouldn’t say “the seller pays my fees “I would more than likely explain my ability to negotiate my fee into the deal and let them know that that may entail them paying my fee part of my fee and very rare cases none of my fee
Another option would be the lender to credit their own fee to help the buyer pay their agent. 😊
Yup, everyone has to pay except of course the buyer…who hired the agent and agreed to to a huge payday.
I ate at a very nice restaurant last night. The bill was kind of high so I asked the Maître d’ to kick in some of his salary to help pay my bill. Can’t believe he refused.
So a lender should work for free? It’s the same “work for free” argument from the agent side. Are you suggesting the lender credit ALL their fee? I like the idea of everyone kicking in to get a deal done…but in the worst case scenario…where a lender is only charging a 1% origination only…how much exactly are they supposed to “credit”? I’m licensed as both just to be transparent. I don’t mind the argument but provide a little real number clarity to your blanket statement. If a lender is only making 1 or even 1.5 yet an agent is pushing for 3 and making a lender or buyer feel bad…who really is being unrealistic?? I just don’t think there is an easy solution for any party.
@@robartrealtygroup7097 The easiest solution is to forget the fees and have the agent and lender get paid
by the hour. What would be a good hourly wage for a real estate agent and also a lender?
It’s shameful to suggest to your buyer that they finance your fee in their mortgage! This whole settlement is going to screw up everything!
We gotta do what we gotta do.
Agreed. Good luck with getting people to finance your fee.
@@brucebarry1204 haha luck thats for newbies.
Completely agree. Even if they a buyer was going to do that I would no way in hell want them to finance commission into the loan over 30yrs!!!.
@@FreestylingIsLike123You’re part of the problem. Hope it bites you in the rear.
Here’s another option: The agent takes a small cut, still earns a decent 1.5% commission, and moves on to the next deal. Forcing a buyer to finance at a worse rate over 30 years just makes it seem like the agent isn’t on their side, which really challenges their fiduciary duty.
How is a home buyer going to justify an extra $100 a month for 30yrs to pay for their buyers agent? This is pure greed and is the reason for the NAR settlement! Eventually justice will be served and now the time has come. Smaller commissions and flat fees are here to stay
Why are we making this complicated. Sellers who do not want to pay a buyers commission but are willing to pay an listing agent commissions have it all wrong. The buyers are the one that brings the money so that everyone involve in the Trasaction get paid. Therefore give the buyer respect, with out a willing and able buyer the rest of the parties involved will not bring food ti their table. No need to beg, walk away from sellers who are not willing to pay a buyers commission.
Yeah, that’ simpler. Buyer finds the house they want after a long search in a hot market and should walk away if the seller refuses. Looney.
What is making this complicated is lying to the buyer that the sell ever paid a commission in the history of the world.
When seller gets an offer the big number at the top is just the amount the buyer agrees to put on the table. The rest of the purchase contract defines how that pile of money gets divided up. The seller is only concerned with the net. Buyer puts $400k on the table and $12k goes to their agent and you want to call that “the seller paid” OK. It’s ridiculous because of course that money went from the buyer to the agent.
But if buyers want to fall for this scam then let them say “seller pays” because it doesn’t hurt the seller at all. It costs the buyer more however because their agent gets a percentage of that top number. So putting the commission into that top number just increases the dollar amount their agent gets.
The idea that a seller should be paying a buyers agent to negotiate against themselves is the fucking craziest part of the transaction.
Right, because there are
soooo many houses for sale! Today’s market gives the seller power, and if I were to list there is zero chance I’d pay a listing agent more than a couple percent and would offer zero to a buyer’s agent.
@@ucjjg6752what market are you In ? It’s buyers market all over the nation. Sellers have zero power right now . Either pay a buyers agent or sit on the market forever.
@@AK-rza KUDOS!!! SOMEONE FINALLY SAID IT!! 👏👏
Buyers will always pay if they see value , that being said , I really appreciate your continued effort in helping agents through these creative ideas Brandon, thanks
I would like to see the stats of realtors who let their license go in 1, 2 and 3 years.
Why does it have to be a percentage and not just a flat fee? This is why people hate realtors. You are not worth $10,000 or $20,000.
You don’t need to pay anything. The seller will handle it all. I flip homes and never use an agent on either side. Standard purchase contracts are available for free or very low cost.
100% agree, there is no reason why an agent needs to take all the equity away from the home owner, it’s flat fee or hrly
Doing a percentage is optional. It’s been very transparently state on the contract that you can also do a flat fee. It is 100% negotiable, but that does allow the agents to hold the standard of doing a percentage. Some agents may do a flat fee while most are probably going to stand firm on the percentage. Again, that’s why it’s important to interview agents.
@@waterbug1135 this is the way it’s done in many western countries. Only the US is stuck in this dual system.
@@waterbug1135 Yea just trust me the seller lol
Flat fee business model will be the future for all real estate agents just like every other professional that is involved in the real estate transaction. No, its not going to happen today but it will happen. It’s quite comical to listen to real estate agents trying to protect their commission based model.
No fee has been the model for decades for investors. I flip homes and always try to get to an owner before they flush 3% to a listing agent. When buying I never use an agent and seller love, love, love that because they were told they were going to have to pay. Secret: buyers always pay…follow the money. I can offer 3% lower than a buyer with an agent and sellers will prefer my offer just because of the stigma of “being forced to pay a buyer’s agent”. During the hot market 2020-22 retail buyers were screaming about investors “over bidding” but we didn’t. We just had a 3% edge.
The future, which could come very quickly is AI software handling all the paperwork. It’s all extremely standard and super easy for software to handle. FSBO people have been doing it by hand for decades no prob.
Flat fee is here to stay!
@@waterbug1135 I’m an investor myself as well as a licensed agent and loan officer (21 years experience). I generally agree with you but for a vast majority of the public, its potentially problematic to go it alone. If a buyer or seller is willing to take the time to educate themselves then fine. However, most won’t. I’ve had people come to me with transactions that are totally unworkable because the buyer and seller decided to not hire an agent to save money. I’ve seen transactions in the past that unwound due to the fact that the seller didn’t think they had to disclose anything to the buyer or follow the law. Yes, the the buyer usually brings all the money to the table but the seller gets to decide what happens to it. I agree that AI is going to totally change the landscape of real estate in the future. Agents should be concerned. However, AI can’t get a real estate license. There will always be a human being involved somewhere.
I think buyers agents as we know them will not be common in 1-2 years. No buyer will pay a percentage of a home out of pocket or increase their monthly mortgage, and as such buyers agency fees will become $500-2000 flat rate. Buyers agents will take on more of a transaction broker situatuion to help navigate paperwork and contracts but will not drive all over opening doors. That will become the responsibility of the listing agent to SELL the home. Listing agents take all the risk by putting money down up front to market the home, hence why their pay will likely temain as a percentage while buyers agents will take the role of transaction brokers for a flat rate. This model makes wayyyy more sense to me as a consumer.
AI will shortly be much better at filling out contracts and dealing with paperwork than any agent. It’s very standard.
Seeing a house will be another business opportunity. Could be the listing agent does an Open House each week of listing as the only time to see the house. Condense buyers into a 3-6 hour block of time once a week. Better for seller too. Agent can hire low cost babysitters.
Or an app for people to show homes. Uber drivers for example could sign up. They could bid fees to show a house and buyer can pick the lowest.
Or sellers ditch listing agents and they show their house when they want.
@@waterbug1135 it’s hard to say how AI will affect RE.. I look at wanting a realtor in the buying/selling transaction like wanting an attorney during a trial. Sure, you can represent yourself but the likelihood that the normal person will have the knowledge to negotiate and navigate that situation without making a huge mistake is very little. People who have the free time to plan and initiate open houses and showings will probably try, but in the end the average family won’t have the time to do so and will need someone else that is incentivized to perform on their behalf. Having AI won’t replace realtors in the near future, but it will help to streamline the process and make buyers/sellers more knowledgeable in a transaction.
What buyer in their right mind will pay a higher interest rate to pay their agent broker? That’s stupid – 30 year Mtg.
NAR stated you cannot allow any form of concessions, it’s time for all real estate brokers to push back this new forced law suit. There is no way a buyer is going to go along with all these new laws. It’s absolutely insane. Please check the laws before stating them on line as suggestions. Also most lenders will allow a seller to pay up to 3% of buyers closing costs; that is specific to the buyers costs which don’t allow buyers to pay buyers broker commission. As far as adding to pp that’s a violation too; so it is subject to being fined and loss of license.
It’s even more expensive to buy a house than before.
Buyer agents are going to get a flat fee ($1-5k) for ANY purchases regardless of the list price and the Home owners are going to end up paying around 2% to list their house. This is the new norm!
By you sneaking the buyer commission into the deal by increasing the home price is flat wrong and that is what led to all these NAR changes in the first place. There are plenty of Agents willing to list a home for 2% and buyers agents willing to take a couple thousand for a few hours of work, get it while you can!
It’s an option to roll the cost but sheesh its over 30 years. No sir… But what most people don’t realize is, commissions were rolled into the loan anyways. Sellers set the cost and Buyers pay the cost. The entire commission structure is financed because the price is usually increased to cover those cost and the seller is still able to meet his bottom line.
You can kiss all of your repeat/refferal business goodbye if you’re buyer is now paying $140 a month extra just to pay you. There’s a reason why agents have to get paid at closing and it can’t be a handshake deal. They would never get paid. The timing of the buyer finding out is also a major issue. There going to find out midway through the deal that they owe an extra $140. They’re going to expect you to pick up there kids from school, babysit and cook them dinner every night. 😂
I am dual licensed meaning I am a real estate agent and a loan officer. I am kicking around the idea of offering real estate services along with mortgage lending services. In the States I am licensed in this is possible. I can see a competitive advantage in the new world.
As someone who sold a home and DIDN’T know I was paying the buyers agent, I am still pissed. If you can’t pay for your own agent, you can’t afford a home. My agent was actually working for the buyer, because there is a conflict of interest. A flat fee, that is a separate transaction devoid of any houses, will help with overpricing homes. So much to unpack the whole number of reasons of why housing is way too high..