A new class-action lawsuit takes aim at real estate agents and their 6% fee
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Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#2currently, it is illegal to pay anyone a commission for selling your house except a licensed real estate agent. If you got rid of that restriction, imagine the opportunities. you could let your friends sell your house by sharing a link on social media and they could get the commission.
Also in England, real estate commission fees are about 1% vs. 6% in US. As the article states, in the US a lot of agents won't show FSBO (for sale by owner). I have personal experience with this where they trash talk or flat out refuse to show you fsbo.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#3This is a big deal for "average" americans. Jack bogle took on the fees eating up retirement plans. Now the next biggest asset has an opportunity to be revamped. While real wages have stagnated, we can lower the costs so those wages go further.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#4currently, it is illegal to pay anyone a commission for selling your house except a licensed real estate agent. If you got rid of that restriction, imagine the opportunities. you could let your friends sell your house by sharing a link on social media and they could get the commission. Also in England, real estate commission fees are about 1% vs. 6% in US. As the article states, in the US a lot of agents won't show F…
This is a state-level law. And real estate agent lobbying is extremely powerful. I don't see it changing any time soon.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#5I took advantage of the situation when I last sold my house. I knew what the house would likely sell for, and told my agent that I’d pay him his 3% seller commission for that price, but for anything above that amount, I’d split the incremental amount with him (I believe I proposed 40/60). Ultimately I made an additional $10k.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#6The model's pretty broken now, when anyone can look up listings on realtor.com or Redfin, and get customized alerts based on preferences. I mean what special skills do agents even bring on the buy side? I can mediate things with the seller myself, thank you very much.
On the sell side, an experienced agent can be much more of a help. Even there, we used Redfin the last time we sold, and the difference in commission was a full 2% when compared to a more conventional broker.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#7currently, it is illegal to pay anyone a commission for selling your house except a licensed real estate agent. If you got rid of that restriction, imagine the opportunities. you could let your friends sell your house by sharing a link on social media and they could get the commission. Also in England, real estate commission fees are about 1% vs. 6% in US. As the article states, in the US a lot of agents won't show F…
This is a state-level law. And real estate agent lobbying is extremely powerful. I don't see it changing any time soon.
It is state level laws. NAR is one of the most powerful lobbying groups in the US.
This lawsuit is interesting because as the article states... this is the first time a highly credible law firm has taken on the NAR. The courts are definitely a better place to fight because the lawmakers are easily influenced by powerful lobbyists.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#8It would be a good change. In Atlanta, I assume many other large markets, we have more than a few flat fee brokers. however it doesn't escape from having the buyer using a realtor expecting their fee being paid by you the seller.
When I bought my last house I used the same realtor for the home sold and was able to get a reduced fees on my sale.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#9The model's pretty broken now, when anyone can look up listings on realtor.com or Redfin, and get customized alerts based on preferences. I mean what special skills do agents even bring on the buy side? I can mediate things with the seller myself, thank you very much. On the sell side, an experienced agent can be much more of a help. Even there, we used Redfin the last time we sold, and the difference in commission w…
Agents should be guiding prospective property owners and helping them avoid mistakes. Unfortunately they are motivated by profit instead.
Re: A new class-action lawsuit takes aim at real estate agents and their 6% fee
#10I'm from the UK where it works differently.
If you're a buyer, what does the realtor do? Do they sort the legal stuff? Or are you (/seller) paying 3% to find you a house?
How does the legal mechanics of this work, do realtors have an obligation to work in the interests of the person that engaged them, or the person that's paying them? Presumably its who engaged them, as they won't know who's paying them. Why then are they allowed to not show certain homes???