BUYER AGENT Commissions To Be DECOUPLED By DEPARTMENT OF JUSTICE
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Ricky Carruth brings the fire of his 21 years of real estate industry experience to the table everywhere he goes. He eats, sleeps and breaths real estate. Some of his achievements includes a three-time #1 RE/MAX agent, the top agent in his county for eight straight years and two-time author. In 2016, he became the first completely free real estate coach in the industry helping reduce the failure rate one agent at a time. He has had one of the loudest voices on the internet when it comes to the strength of the housing market since the pandemic. His presentations are energetic and full of the most recent housing data. You aren't going to want to miss his next event or video. And, as Ricky says, "Let's GOOOOO!"
I honestly don’t believe that buyers would care about their agent compensation. I had agents telling me that some clients went with listing agent because he told them that it will help get their offer accepted. Very unethical, but it was at the time when 5-7 offers would come on almost every listing. Their justification was- we are tired of submitting offers and not getting the property, and this way our offer got accepted.
the quality of your videos just keeps getting better and better
Why would any Buyer’s Agent show properties to their clients from the MLS that are not willing to pay a commission? 🤣
If a buyer wants a particular home they’ll just go direct to listing agent. Period.
@@adamblacketter then they wouldn’t be a client working with a realtor.
@@JeepdudeFL happens all the time. Flat fee listings routinely offer crap BAC and if the buyer really wants to see it they go directly to the listing agent.
@@adamblacketter I never said that doesn’t happen, Florida is a no dual agency state… Regardless, my statement was in the context of future actions if decoupling occurs.
Then get ready for buyer lawsuits. Absolutely ridiculous and no, we
don’t want to be like Europe. Real stupidity.
Seller closing cost contributions to buy down a buyers interest rate is similar to paying for the buyers agent compensation. It helps the seller and buyer get what they want.
Sounds like a bunch of pocket watching lol 😂 the public and the DOJ just doesn’t want real estate agents to make all this money lol
I am not a real estate agent but have been in the market for years and toured hundreds of homes, submitted offers including several back and forth negotiations. I view the listing price of what the seller is wanting to net (minus the listing and buyer agent commission) and that ultimately the buyer consents to. The buyer is paying for the commission when they buy the property. Should the commissions be explained and negotiated better? Sure. If both sides have to negotiate their own commissions, sellers will need to closely examine the terms of the offers. Buyers agents should be paid, but will need to explain their services and benefits ie representation to ensure that the commisions are appropriate. From my perspective, part of the problem is that the spike in home prices have caused more scrutiny of real estate agent fees and commissions. Buyer agents could charge a set fee, for instance, for showing more than x number of homes to a client to ensure that their time is being valued. Good luck as really only the lawyers are making money off of this.
I agree
The most trying part isn’t the showing of houses it’s getting from offer to close. Keeping deal from falling apart, helping to make sure the buyer doesn’t make a mistake that causes them to lose their earnest money deposit, making sure the repairs that need done to satisfy the appraiser are done by the seller and on time, making sure the seller leaves the home in the condition they agreed to on closing day, staying on top of a mortgage rep dragging their feet or giving false hope to a buyer that the closing date will happen when scheduled.
good point.
Ricky would you maybe testify before congress about this? Thats a big ask i know, but they would listen to you.
No they wouldn’t. They want everyone to remain poor They couldn’t give 2 shits what Ricky has to say Many people are not seeing the big picture of why they are attacking the Real estate Industry.
Also saw a buyer in a different state who was taken advantage of by listing agent, who legally wasnt licensed, an unlicensed contractor, and somehow they closed. Tons of problems with the home now. Buyer’s agent would have smelled the bs from far away. Has cost them mire than any commission would have.
So in this scenario, what does a buyer broker do when the sellers come back with “we accept your offer, but refuse to pay the buyer broker”. It’s going to get SUPER awkward when buyers start asking you to do this job for free if they can’t come up with your %…..they really need to think this stuff through
just get paid up front…problem solved
@@RickyCarruth couldn’t agree more. I’m not one of those agents who’s terrified of explaining what I do and what my value is. It’s sure going to be fun to see how it all shakes out! Keep putting the great content out there!
Hourly doesn’t necessarily mean you become an employee. I have worked with independent contractors that charge hourly for specialized services. If DOJ is so concerned for consumers, why are attorneys allowed to collect a third of the settlement awards plus costs (i.e. phone calls, photocopies, written correspondence, court fees, etc.). I had a trust client whose daughter (beneficiary) died, an attorney showed up out of the blue and the family thought it was the trust attorney and signed a retainer. He did nothing other than submit his bill for a third of the remaining assets, even though the bank I worked for had its own probate attorneys. Then this attorney came out of nowhere at the final accounting before the court and took a third of the remaining liquid assets. Family appealed. He slapped a lien on their home.
**remaining liquid assets
Investment Companies have deeper pocket lobbyists, and they want to win every contract because they don’t need buyer agents helping to buy middle class housing for independent citizens. The goal is a working class paying exorbitant rents to big investment firms.
DOJ warming up to throw a wrench into the engine. This is has potential to ensure some buyers will have no idea what they’re buying
Man working with buyers is becoming less and less worth it.
I’ve been in the business for 46 plus years now and I wouldn’t be surprised if the U.S. government took over the business of real estate dealings in all states, leaving the privatized business of the real estate practice out of the hands of private businesses. Our country is becoming more government socialized and eliminating private businesses altogether. Am I saying that this is a likelihood? What I am saying is, as the USA slips down the path of communism as it most certainly is – this will certainly happen at some point in time; if not next year then possibly within 10 years. The government will find a way to get their corrupt hands inside every business they can take over with the guise that government can do it better for less and we all know that will never happen: Cost Less and do a better job at it.
this is it exactly, but it will be under the disguise of one of thier preferred partners, and they will get a handsome tax rebate. The end to end real estate machine now exists where only w-2 employess are needed. Your right. There will be psuedo government agencies controlling every thing now. They allready dictate fannnie and freddie, they are just reeling it all in.
What about all the VA buyers who are not allowed to pay buyer commissions? Do they now have to be unrepresented and just let the listing agent do the paperwork?
The reason the seller pays the commissions is because that’s where the equity is and commissions aren’t allowed to be paid in the loan. This is literally all semantics and shuffling paper just like you said. I think what the DoJ, lawyers, and plaintiffs really want is our commissions to be reduced, but they won’t come out and say it.
It needs to be added to the purchase agreement from the board *not* from the agent because no agent will add that to the purchase agreement or…….
1) Listing agent with a buyer will not add it giving his client an advantage.
2) Any agent getting his buyer to pay outside the transaction will have an advantage.
Our buyer broker agreements already show what the buyer is paying to the buyer broker. The next paragraph shows a reimbursement if the listing broker is offering buyer broker compensation. This negotiation is already taking place, but the listing brokers typically offer compensation.
Decoupling the commission from the sales price is what’s needed. The entire real estate industry is ripe for change. There should be a menu with upfront prices for services rendered. These should be paid whether the property sells or not. If a buyer wants separate representation, they should be required to pay for that themselves. A flat fee should be charged, not a percentage of the price. All services provided, including advertising, staging, etc, should be charged separately, on a menu.
The way it’s done now is horrible.
I’m favoured, $60k every week! I can now give back to the locals in my community and also support God’s work and the church. God bless America.
Same here, with my current portfolio made from my investments with my personal financial advisor I totally agree with you
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