Zillow Plunges After Verdict on Real Estate Brokerage Commissions

[alarmguy]

... I sell 90% of my commercial listings myself to my network. I will not take an offer of any kind from a residential agent for any reason.

TH

This concerns me unless your seller gives you a power of attorney or we are dealing with agency other then what is common.
Your responsibility to your client is to present all offers and let them decide based on guidance from you. Based on this statement your sellers allow you to be a gate keeper?
Sounds sketchy to me unless I am misinterpreting something or someplace in writing your clients are giving you the right to filter offers.
IF I was selling my building in NYC and found out my agent did not present me with offers and I was harmed buy that action I would see to it they lost their license.
Im assuming you are licensed.

 

[DwightFrye]

Regarding the sentiment that home buyers and sellers don't have the right to dictate how much other people should make, that overlooks what has historically been the case when there is a monopoly and collusion among real estate agents to keep commission rates at 3%+3%. Sure there have been some outliers who work for less but as I found out they didn't work very hard either. As someone else quipped, the gravy train is over.

So if we will now have real competition, we'll soon find out what the real prevailing wage rate is for real estate agents. And my guess is it won't be as high as it has been for the last 20-30 years except for those agents who hustle, are in a hot market and complete a lot of sales each month. They will do just fine.

Those who can't make as much as they are used to or think they deserve will move on to a different career. For those who would rather make a fast nickel than a slow dime, they will be successful.

 

[alarmguy]

Regarding the sentiment that home buyers and sellers don't have the right to dictate how much other people should make, that overlooks what has historically been the case when there is a monopoly and collusion among real estate agents to keep commission rates at 3%+3%. Sure there have been some outliers who work for less but as I found out they didn't work very hard either. As someone else quipped, the gravy train is over.

So if we will now have real competition, we'll soon find out what the real prevailing wage rate is for real estate agents. And my guess is it won't be as high as it has been for the last 20-30 years except for those agents who hustle, are in a hot market and complete a lot of sales each month. They will do just fine.

Those who can't make as much as they are used to or think they deserve will move on to a different career. For those who would rather make a fast nickel than a slow dime, they will be successful.

Yes, and you will learn nothing will change because nothing is different.
Here is another misconception which you and others are not aware. Not everyone that holds a real estate license is a realtor. National Association of Realtors is an association and only 50% of real estate agents are part of NAR.
You DO NOT have to be a realtor to sell and market homes. You do have to have a STATE issued real estate license.

I dont know why I keep coming in here and posting *LOL*
Its just the uniformed public commenting for over 50 years on a subject they have zero knowledge
One thing for sure, you and all the others will over the years learn nothing has changed because of this ruling because it's a nothing.
The biggest change to real estate WILL BE corporations direct buying of homes on the market at wholesale prices cash to the seller and reselling them at retail prices that an agent would have got for them. Not different than the trade in your car deal with Car Max or the others. Again, its convenience that people chose/

"Nov 30, 2022According to estimates from the Association of Real Estate License Law Officials (ARELLO), there are more than 3 million people holding active real estate licenses in the United States. Of those agents, there are 1.6 million Realtors®, as of November 2022, according to a 2022 NAR report."

Here’s How Many Real Estate Agents There Are in The U.S. (And How to Find a Great One)

We’ve dug into the data to find how many Realtors® in the US there are and share our tips for making sure you’re working with a great one.

www.homelight.com

All this stuff is easy to find. Its an organization no different than ANY trade, in fact their standards are higher than state licensing laws (for lack of a better word) *LOL* good god...

Quick Real Estate Statistics

Looking for quick statistics for your sales meeting or a customer brochure? Need a quick fact to make your point? Member Support has compiled some of the most requested statistics for quick and easy access. Find the information that you need, as well as its source, at a glance.

www.nar.realtor

Membership

Membership with the National Association of REALTORS® gives you access to a wide array of resources designed to help you succeed in today's real estate market.

www.nar.realtor

Back to the media, the public controlled like drones in how they think. Quite scary.

 

[Tharber]

My listing agreement's allow me to do what's in my clients best interest and to refuse offers from anyone who is not in their best interest. Commecial properties are too complex for a residential agent. If they have a bonafide offer, I will arrainge to take over that offer and pay them a referral fee which I will happliy pay and possible ediucate them in the process. I deal mainly in 1031 exchanges so dates and proceedures are far more complex to be accomodated on a generic FL based purchase contract. I have received many offers over the years for commercial property on a residential form, so that should tell you something.

In FL (this is an over simplified version) if an agent is dealing with someone with a net worth of over $1M, they need to represent them as a designated agent, so that is a little different, however, 99% of agents don't even know this.

I also buy and sell businesses (example car dealerships) and this is a whole different world all together when you convey assets and is not something that a residentail agent should get involved in. As Realtors, one of our professional standards

 

[Tharber]

You can not call yourself a Realtor unless you are a member of NAR. It is true that you need not be a Realtor to buy and sell properties. The advantage of being a Realtor is that all Realtors are bound by the NAR code of ethics and standards of practice, mandatory mediation, etc.

 

[alarmguy]

You can not call yourself a Realtor unless you are a member of NAR. It is true that you need not be a Realtor to buy and sell properties. The advantage of being a Realtor is that all Realtors are bound by the NAR code of ethics and standards of practice, mandatory mediation, etc.

Well said.
I cant take the posts in here from some others ... *LOL* it's like beating your head on the wall.

 

[alarmguy]

In FL (this is an over simplified version) if an agent is dealing with someone with a net worth of over $1M, they need to represent them as a designated agent, so that is a little different, however, 99% of agents don't even know this.

This can be anywhere in the USA however without that $1M requirement. Meaning real estate firms in many states (and you know this varies all over, including different companies) will not allow agents to work with buyers unless they are representing that buyer as a client.
Ok, now I am out of here for the last time *LOL* ... I got 5,500 lbs of cobblestone to install on my property.

 

[Owen Lucas]

You gotta stop believing you are entitled (for some crazy uninformed reason) to dictate how much others should get paid for performing a service, its servitude …LOL scary stuff man!!!
I mean, in today’s society wanting the power to force people to work for what you are willing to pay is … well, I don’t even know if they do that in N Korea and im sure even in China can work as individuals providing services at thier own rates.

I can understand some frustrations in here with agency but it’s born out of ignorance when you want someone to provide a service to you and force what you are willing to pay on them. That was ended a long time ago back in the dark ages my friends!

I'm not intending on forcing anyone to do anything. If they ask too much commission, I'll move on to the next guy. I called 12 agents and the most they would budge was to 5.5%. It looks like a trend to me and as indicated by lawsuits which is the crux of the issue. A few of the agents had no idea what will happen in the next few months, it seems like no one does. Hopefully more options.

Either way, we won't convince each other of anything, you realtors are the experts, I'm a noob reverse engineering the process. Had I known there were discount brokers out there, I might have never made any posts. I'll give FSBO a try before a discount broker but it seems possible we'll be selling to the neighbor.

Regarding the sentiment that home buyers and sellers don't have the right to dictate how much other people should make, that overlooks what has historically been the case when there is a monopoly and collusion among real estate agents to keep commission rates at 3%+3%. Sure there have been some outliers who work for less but as I found out they didn't work very hard either. As someone else quipped, the gravy train is over.

This is what I'm talking about. The next year will be interesting to see what happens especially if you are a realtor.

We are in affluent country, and people will pay for convenience, no matter what the services and I stress that over and over again. The only ones that complain of the only ones that want services at a discount that they think they should get.

That's me! I don't see the value of convenience in large commissions, some of this is ignorance and lack of financial awareness by the public too. Even at a measly $9000 I think I can spend a few hours and get the job done safely.

I think we've beat this topic to a pulp. No one is convincing anyone here so no hard feelings, I'll spot you a Chicken Bryan at Carrabbas one day.

Stay tuned for updates in my thread on what I'm doing, hopefully I pull this off on the cheap!

 

[zzyzzx]