Commissions combined for both sides will go from the 5-6% average to 3-4%. It will take some time to get there. We had a RE lull for all of 2 weeks over here. Inventory back down again.
I think personally its a perfect market for home buyers/ investors right now, i have a feeling once trump goes into office the rates are gonna drop. By then you should be able to refinance with a rate at a perfect price. Once rates go down, houses are gonna boom and that right there is your golden ticket to having equity in your home to purchase another investment
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This thread is so strange based on location. Prices too high here and low inventory.
NYC inventory low and people routinely bid each other up over asking. I’ve been looking for two months now and every open house for decent neighborhood is packed with Asian buyers paying over asking with $700k down payment. I’m
About to start mailing out letters to home owners direct to see if I can do a private deal and skip bs real estate agent fees. They do one open house for 2 hours, handle couple phone calls and then get $60k commission check at closing. Outrageous if you ask me.
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Dude are mailing stuff out in new hyde park/ lake success area. I keep getting these offers in mail. Dont get me wrong their very attractive but theres no where to go for me. Due to my work and my rentals
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I’m not mailing anything yet. Just want to get a one family in my area for my expanding family. My rentals I have enough for me to manage.
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Except when they don’t. Speculating on a house due to a possible future rate cut is wild
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Or rate hikes.
Real estate blogs in my area kept saying how the rising interest rates will drive prices down and recommended waiting.
Did the opposite, inventory dried up because most owners with sub 3% rates don’t want to give up their low mortgage. Only impetus to sell is the insane price drive ups… people are selling to reap the profits and just rent or move elsewhere.
Live look in at the current state of the real estate market…
So 2 weeks into the new commission structure and buyers are getting killed so far. No real data but anecdotally in my area, we’re seeing 3% buyer’s agents fees again. Multiple agents are getting it as well. We’re seeing seller paying 2 or 2.5% with the rest coming from the buyers. Mind you, this is a seller’s market as well.
Wow here in nyc, long island its been 4-6%
New rules and rates are just shaking out. Give it a little time for people to get up to speed as many of the deals now have been in the works for a bit already.
We see anything from 4-6% (with Ultra low cost brokers in the 0.5%-1%) in SJ.
@DailyDriven I agree but these are post settlement changes with new buyers looking at houses currently. My specific office is now telling buyer’s agents to think about charging 3% instead of lower. We used to take as low as 1%.
This was always going to hurt buyers in the short run. When was a single “all-included” or “out the door” price quote ever bad for the buyer?
However, this will slow down transactions in the medium-term since buyers are already stretched in hot markets. I think long-term, technology will make realtor costs come down or become segmented. Kind of like Ryanair/Spirit model of charging for specific services rendered, as technology automates a lot of what humans currently do.
(I myself am currently working with a startup to help people buy homes on their own.)
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Well, these buyers are uneducated then…not difficult to buy yourself or negotiate a much much much lower fee to any buyer agent.
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That’s just laughable that you guys have those morons throwing those Benjamins on the bonfire.
Ive brought multiple homes and personally i never paid broker fee. Seller always pays the broker fee. I purchased a rental in October of 2023 $1.7 but i wasnt asked for a fee
Edit. Also when i rent out apartments the tenants pay the broker fee. I just give the apartments to them and they hunt for tenets
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Not paying a fee as a buyer is (was) the norm…smart thing to do is (was) represent self and get seller/their agent to adjust negotiated selling price down the 2-3% your agent would have been paid if you had one. I did that multiple times when representing self.
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Eh, you have to realize that the settlement was good and bad. The buyer’s agent commission market just became way more opaque so now buyers and agents have to do way more research and work to get the best deal. And the kicker is that if you want to see a house outside of an open house, you must sign an agreement to pay the commission by law. There’s still a lot of legal confusion but I know agents who aren’t even willing to talk about a specific home until an agreement to represent and pay commission is signed. Who knows what happens when the markets change and buyer agents become hungry though?
I hope dual agency is still a thing but I’m not too sure about doing that now. From a seller’s perspective, do you really wanna open yourself to legal liability and other headaches for no reason now? If someone is unrepresented, it’s a lot easier to tell them no commission now vs before. And they will probably have an attorney on the other side forcing you to pay for an attorney as well.
I’ve heard about this. So to clarify, if I want to tour a home, and it’s not an open house, and I just call the listing agent directly, I need to sign a legal agreement to pay their fee if I buy the house with the listing agent?
I don’t understand why I’d ever use a buyer’s agent. I have the internet just fine.
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