Why This Broker Stopped Paying Agent Commissions
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Ricky Carruth is one of the leading coaches for real estate agents in the industry. With over 20 years of experience in sales as an agent himself, he was the top agent in his MLS for 8 years in a row and three-time #1 RE/MAX agent in Alabama. He has helped thousands of agents all over the world reach their goals and continues to be a light in the industry.
Before August 17th, I would have thought this is a terrible idea. Now that it has passed, I see that if the sellers want to sell bad enough, they will pay. And if the market shifts and the buyers wants to buy bad enough, they will pay….
Except buyers can’t afford it up front, neither can the sellers, that’s why it comes out of net proceeds. Both have always paid for it if you actually use your brain and think about it. Buyers pay for it out of their loan. Sellers list their home accordingly.
Agreed
lol most can’t afford to pay
@@teleskopossomniumCan’t afford what? If you’re referring to the commission. You’re thinking that way because your mind is set on an “average” compensation you and all of us in the industry have gotten used to. In a capitalist society won’t the market decide on what your compensation is worth?
Broker like this are ruining the business
You can still ask the seller to pay your compensation in the offer in AZ we have a seller compensation addendum to send with the offer. I haven’t had a problem getting my compensation as a buyer agent.
@@tomandannelongrealty OK and what commission percentage? Are you going to ask your buyer to pay and what if they say no do you really like working for free? It’s brokers like this that are making it harder and harder for other brokers out there trying to make money. It’s already bad enough splitting 4% on top of that. The worst thing is splitting your fee with some broker That’s literally done none of the work to sell the property. I don’t know how things are done in Arizona, but here in New York buyers hate paying a commission.
@@gennerobootz6490 I ask for the amount the buyer signed for on the BB if it’s less I can lower it if needed or the buyer can pay it. I haven’t had to do that yet. You can raise the offer to cover the amount needed is a good idea, If the seller doesn’t want to pay . I also think the seller wants to sell and both agents want to get paid they will find a way.
And he’s proud about it. He’s forcing Buyers to have no representation and happy to accomplish that 🤷🏻♀️
@@sararyan6636 he’s an idiot
This is so correct. I have seen so many people trying to make the changes more complicated than it needs to be. Listing agents don’t need to have some secret database of what they will pay for commissions. Just educate your sellers to pay attention to their net. It doesn’t matter if concessions are for closing costs, a pool, or commissions. Just look at your net. All buyer’s agents just submit your commission request with your offer. Keep it simple.
@@kharithoughts2679 what if your buyer says no they’re not gonna pay your fee then you literally just did a bunch of work for nothing
BINGO, you get it.
@@steveludwig4200 wtf
Don t give these hacks air time.
@@ShulaTheDon13 thank you
Oh let’s listen 😂 please give us more .
His company name says their fee is non negotiable 🤣
Exactly. He’s protected but everyone else good luck
@@anthonyscales8691
Brokers like this are ruining the real estate business
How many listings did he take in the last 12 months? Does the model work for him or not?
This brokerages competitive advantage (name of company) will disappear over the next few years at the industry adjust to the net DOJ forced model.
When we take a listing, we tell the seller to not even tell us what they would be willing to pay a buyer agent. However, we do inform the seller that an offer may come over with a request for buy side compensation.
Good policy sir.
Again if the industry standard doesnt change and remains between 4%-6% then regardless of which side youre on, the offer and contract will reflect. As a listing agent, I dont know that theres any benefit to not offering the commission… This at bare minimum drives up demand which would in theory always raise the sellers bottom line.
Nahh screw this guy. I do a lot of business on both sides. What a grifter. Not a fan Ricky haha.
Didn’t even give her a referral… wow… what a tool lol
I would offer this broker 2% just to see how negotiabale he is.
His model may work in Iowa where the median home price is $202K, but if he behaved like that in a major metro market with median prices around $1M, his DOM would be way higher and his sale prices would be well below market. I don’t think the idea behind it is necessarily flawed, but his implementation and attitude is adversarial and just kinda mean. And what a short-sighted business name – wait until the competition next door opens up “The 2% Listing Co.” 🤣🤣🤣🤣
On point . In my area Miami , 😂
Why are people making this so difficult. It’s easy. Take the listing at the commission you charge and worry about a buyer commission if there is any when you receive offers in hand once you go live on the market. All that matters at the end of the day is what the seller nets from the sale. If the seller ends up with more money in a scenario where they have to pay 3% to a buyer’s agent compared to an offer where no commission is required, it’s clear that the offer with the buyer agent commission is the better deal for your client.
I would have NEVER given the buyer over without a referral fee agreement in place. What an idiot agent.
I have listings and unfortunately I’ve rarely had buyers come directly to me. They get captured and sold online from these portal sites so they land in the hands of other agents before I even know they are interested.
Is the stock market actually getting better or is this the Election time manipulation to entice new investors, I’m currently sitting on an inheritance of 300k and i’m wondering do I invest in stocks or Gold?
buy bitcoin! it is decentralized and most secure, thus healthy competition among many miners
market crash is inevitable, but there are actually strategies to mitigate risk and profit consistently, tho such executions are usually carried out by investment experts
Agreed, people often underestimate the role of financial advisors. Over 50 years of data reveal that those who work with advisors typically earn more than those who do it alone. I’ve been fortunate to work with one for 5 years now, resulting in a million portfolio.
i’m blown away! mind sharing more info please? i am a young adult living in Miami where i’ve encountered several millionaires, and my goal is to become one as well
*Layan Talia Chokr* is the licensed advisor I use. Just google the name and you’d find basic info. To be honest, I almost didn’t buy the idea of letting someone handle growing my finance, but so glad I did.
He’s company motto is literally what every seller is doing. He’ll have to change the name soon lol
These new rules have totally eliminated this guys supposed competitive advantage. His fixed fee, non-negotiable 3% listing fee strategy is now anti-competitive and could be considered an attempt to fix prices.
For all of my career I was told we never discuss our rates with other brokerages and agents, and he puts it in his branding. 😮 How has he not been sued by the DOJ?
Couldn’t even offer a referral on someone GIVING you a buyer? That makes no sense at all…