The editorial board of the Wall Street Journal accused the real estate profession of working against the best interests of their clients with “a rigged game that pads their pockets at the expense of consumers.”
In an editorial titled “The Realtors Stage a $418 Million Tactical Retreat,” the Journal’s editors considered the National Association of Realtors’ (NAR) recent settlement in the Sitzer/Barnett case that includes rewriting the organization’s policies on commissions. The editorial claimed that realtor commissions “have averaged between 5.5% and 6% for decades, split evenly between buyer and seller agents” while adding that real estate professionals in “most developed countries” work with lower commissions. The editorial also insisted real estate professionals were both greedy and lazy.
“Many buyers these days search for homes online,” the editorial said. “Yet buyer agents earn a 2.5% to 3% commission no matter how little or how much they help their client. They also have no incentive to obtain the best deal for their client because they pocket larger commissions on higher-priced homes. Empirical evidence also shows that buyer brokers steer clients away from homes whose sellers paid them less than 2.5% to 3%. Ninety percent of transactions on the Missouri MLSs offered buyer agents exactly 3%. The NAR claimed its policies benefit consumers, but the jury disagreed.”
In viewing the verdict, the Journal editors predicted the U.S. Department of Justice “could still intervene to stop last week’s ballyhooed settlement, since collusion may be less obvious but still exist in many markets. The savings for consumers may be far less than meets the media hype. There’s a reason the NAR boasted in a statement that Friday’s settlement will ‘protect our members to the greatest extent possible.’”
The editors also declared that realtors “have prospered for decades from a rigged game that pads their pockets at the expense of consumers. They have then parlayed those profits into lobbying to preserve and expand government subsidies for housing. Whenever these columns pointed out the truth, the realtors reacted with outrage, as if their commissions are a birthright. The jury verdict and settlement prove the critics were right. Legal scrutiny should continue until there is a genuine free market in the buying and selling of homes.”
The editorial neglected to mention that The Wall Street Journal’s parent company, News Corp, is also the parent company of Realtor.com.
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This article is bull shit written by stupid people who have no understanding of what we do
THIS IS INFURIATING !!! SHAME on the editors of the Wall Street Journal. They have fallen prey to absurd B.S. commentary by the accusatory and egregious lawyers, Sitzer and Barnett, who are bringing to light false claims for THEIR own profit. Baseless claims all the way around. I have been in the business for 35 years and have never heard such negative misinformation. The editors of the Wall Street Journal ought to get their real estate licenses and see how ” easy” it is. Realtors work hard on behalf of their clients without regard to commissions paid. And some make very little money compared to the effort expended. DOJ, pick on another profession.
agreed. I’ve been in the real estate business for over 30 years……I’ve never steered a client to a more expensive house because I was hoping for a bigger commission nor have I avoided showing a house because it paid a smaller commission. I don’t know who Sitzer and Barnett are but, as you say…….they should get their real estate license just to find out how “easy” it really isn’t. Sometimes, yes, transactions seem to flow effortlessly from the initial signing of the P&S to closing, but more often than not, there is a lot of work in between. This week I paid my seller client’s plumbing bill because they didn’t have enough money to fix a problem in their house that we have under contract……..and, I don’t expect to have them reimburse me at closing either. It’s what we do to make things “work”. And, speaking of getting paid too much for very little effort……..I’m sick of paying $4.50 for a dozen eggs and over $5.00 for a gallon of milk….I think I’ll sue all the farmers here in my state for price gouging…..after all, the chickens and cows are doing all the work.
Lol, I’m suing everyone the.
Oh how I wish you worked in my office!
The article is FULL of false information.
I’m from Italy, in real estate business in America 18 years.
In Italy doesn’t exist the buyer agent figure. The listing agent represents both parties and doesn’t protect or work for the best interest of the clients.
The agent is only a mediator!!!!
The total commission for this mediator are 6% (split between buyer & seller) and same percentage in many country in Europe.
We are NOT greedy, we work HARD and in many cases we don’t have income for months, especially when you are new in the business.
FYI: the publisher also didn’t mention that on top of the 3% commission that the buyers are paying to the realtor, they pay a huge ammount of dollars to the escrow title office(In Italy is called notary). A friend of mine purchased an apartment of 650 SqFt – 1 bed 1 bath for $340,000 (and her Notary charged her $9K. ….way more expensive for buyer to purchase in Italy!!!!!!
and more info for the editors ……
do you know when the brokerages commissions are paid?
In America after the property is closed….In Europe (Italy) immediately after the mediator agent put in agreement the parties. At that point the proposal of buying and selling letter is signed by buyers and sellers and both at that moment provide a personal check to the mediator agent, despite the fact that the property can close in 1 or 2 months.
If something goes wrong….the parties hire an attorney!!!!
Agree that this article is B.S. I work with my clients to find the house that fits into their budget and meets their needs. I’ve shown houses that pay 0.5%. The goal is to find your customer a home.
What a joke!! Wall Street journal, get the truth before you publish this nonsense. Real Estate professionals have more disclosures to sellers & buyers so everyone knows who represents who, how agents are paid, services we provide, etc! How much are you paid from this published fake article?
You are so right. Pure ignorance!
All business deals are subject to negotiation. No one is obliged to pay a certain %. I would negotiate a fair % of the net to the seller, not the original sale price. I have no issues. Keep reducing prices and you get what you pay for. Foolish article.
I would love to have a conversation with this person who does not have a clue how REALTORS Work. I’m not sure how it’s done all over the country but in my market listing agreements state how the money will be shared. But first and foremost no one ever had to use a realtor to list their house. It’s no law that said you had to list it.You’re free to sell it yourself. In my market, you have also always been free to negotiate a commission.We are not even supposed to discuss commissions in a meeting among each other. In 42 years in this business I’ve never, ever had a seller write me a check until the buyer brought their money to the table. We are the only profession that works for free until we walk out of the closing attorney’s office.It might be for a few weeks.It might be for a few months. We are also the only profession that discloses what we do get paid. How much of that big old settlement is going into the attorney’s pocket?Do they have to disclose that?Let’s announce it to the public. Again, commissions have always been negotiable.And if there was somebody out there doing the wrong thing, then they should have paid the price.Not everybody.It’s just like there’s crappy People in every business but all realtors are not. All this is doing is killing the American drain.Because Veterans cannot pay realtor fees They are not allowed to. First time, homebuyers don’t have the money to pay someone to help them negotiate through the maze of buying a home someone to tell them about all the different financing problems. That are out there the inspections that they have the privilege to get done. It’s a whole lot more than drawn up a piece of paper.. Again? I’ve never had a seller pay until a buyer was brought to the table. So now our realtors gonna start Charging up front for listing a house?
Agents are expected to have a buyer sign and agreement.The day you meet them and to pay you and not even know that you’re going to be happy working with each other. NAR has made the biggest mistake and it’s going to hurt the american public. The courts have made a huge mistake.Apparently, neither one of them knows how the market works. These same sellers that we’re also buyers.So when they get ready to buy or they’re gonna want to pay up front to someone that they may or may not want to work with to someone who may or may not get the job done. Again using a realtor has always been a choice not a requirement.
Are you people out there that work on a commission You better stop and think you’re probably text that includes you attorneys.
It is my understanding that over 80% of all newly licensed agents leave the business within 2 years because they find they can’t make enough money to cover their costs of operating in the business and make a reasonable living. It is true that some agents get rich selling real estate, but that is a very small percentage.
This is exactly why no one believes the Media any more. Major conflict of interest when you have the parent company of the WSJ owning Realtor.com, the second bigest online real estate platform that competes with Realtors for clients. Of course they will take a shot at Realtors with this result, just to grow their business on Realtor.com and enrich themselves… Unbelievable.
And one might add that those making a reasonable living or doing very well also work very hard at it! Being a successful real estate agent is not for the faint of heart, which is why so many people don’t survive
You are uninformed and ignorant…and you are not a realtor. I’ve been a realtor for 25+ years and trust me, you know nothing about my business. No one ever set commissions and there were ALWAYS negotiable. The sellers will still be able to make offers of compensation directly to the buyers agent and whatever amount/percentage they agree upon. Furthermore if the seller chooses not to co.pensate the buyer’s agent this will create dual agency among the listing agents and the seller. You can’t advocate for both teams! In addition, an offer of consideration can be put in the offer as seller concessions as that has always been an option. That way the buyers agent would get paid at closing. Also, buyers will now have to sign exclusive buyer agency agreements, another vehicle which spells out how much the buyer will be paid for by his or her agent at closing.
I agree that sometimes less work is required on the buyer side to earn the commission. But how do we pay for our time and travel costs when we average 6-12 showing before a purchase? All businesses work on a ROI and at least in rural America, miles travelled and hours expended mean we have to average the easy with the challenging. How exactly is the 1-1.5% that makes it to the realtor gouging?
A brief overview of our roles and responsibilities as Realtors:
The earnings of a full-time realtor last year averaged $31,900, based on over 40 hours of work per week. It’s crucial to note that this refers to consistent full-time hours, not sporadic part-time work. However, this figure falls significantly below what is typically considered a living wage. Realtors operate on a commission-based system, receiving payment only upon successful sale closings. This means they essentially wake up unemployed each day, engaging in continuous job interviews and facing regular rejection.
The profession demands relentless dedication, with realtors often sacrificing time with family, working long hours, and rarely taking vacations. They must always be available to seize opportunities as they arise, further amplifying the stress and uncertainty of the job. Moreover, realtors face substantial upfront expenses, including broker splits and fees, office rent, MLS and association fees, insurance, taxes, and various other costs.
Listing agents, in particular, shoulder a multitude of responsibilities beyond merely selling homes. From preparing listing presentations to coordinating inspections and guiding clients through every step of the process, their workload is extensive and diverse. Similarly, buyer agents undertake numerous tasks, including educating clients, arranging viewings, negotiating offers, and facilitating smooth transactions.
In essence, being a realtor entails far more than meets the eye, requiring immense effort, perseverance, and a myriad of skills to navigate the complexities of the real estate market.
I was a CA realtor and soon will be a GA realtor. Unfortunately, what you wrote is meaningless to those with envy…mainly the government…who wants to control, one by one, every industry where Americans can earn income independently of working a 9-5. Whether the realtor earns $32,000 or $132,000 annually, the purpose was to put limits on realtor earnings. We must understand that, for example in California, there are about 200 consumers to every one realtor. That’s 200 people who could see real estate commissions as too much.
Very well, put very well said, Nawa could NAR not have represented us better. Did anyone even think about bringing in people who actually worked in the business? Did anyone even look at the forms that we use in North Carolina? That break down commission very clearly.. This whole thing is going to bring on just a nightmare for everybody.
Well articulated, Melissa! I also would add: real estate agents are self-insured, pay double FICA, and have no retirement benefits other than what we take out of each transaction.
An automobile must cost $50,000 or more. Not because there is $55,000 worth of metal, glass and plastic on your driveway. It’s cost must cover materials, income for automakers unions, sales commissions of car salesmen, overhead of car dealers including the income for the porter who drives your car up for delivery and every single commercial we watch over and over again. The cost of the car includes every expense to be in business. Likewise Realtors and their and their brokerages do far more than find a house on the Internet.
This article ignores the fact that Realtors do FAR MORE than find a home. We negotiate contracts, facilitate home inspections, negotiate repairs, help arrange financing, deal with title issues when title is not clear. Finding a home is a collaborative effort between Realtor and client. The seller is not required to pay the buyer Realtor. We have buyer representation agreements. Not every buyer is experienced as a purchaser of a home. A few are, but not most. The opinion writer that called us lazy, needs to follow a Realtor around to see what we do. Some Realtors are money driven, but most of us are people driven, and do our utmost to help buyers and sellers achieve their dreams and goals.
Amen, Nancy Henderson !! Well said.
My JOB as an educated, ethical, responsible REALTOR is to protect my clients, market the home to as many people as possible with professional photos, negotiate repairs, work with Title companies to facilitate research, weed out unqualified buyers, help the Seller with repairs (qualified vendors), and get the Seller a fair price, all completed within a very short time frame. I could give you a LONG list of buyers whom I have helped in NOT purchasing a home that could become a money pit, and some of those buyers I have worked with for up to 3 years. All of this in a market that has seen multiple offers, some offering to pay over the appraised amount with no inspections (both of which I do NOT recommend), requiring skill and experience to get a buyer a home. The liability involved in my job hasn’t even been mentioned yet!! How DARE you call me lazy! I would like to see you attempt to do my job…..oh, but you’re not educated or experienced. You might want to check your facts a little better next time you decide to write an article. NAR and the rest of our industry settled because the lawyer fees would have cost more than the settlement or we would have fought this verdict to our dying breath.
A good realtor provides invaluable services and expertise beyond simply posting homes on the internet. Here are some of the key aspects of what a great realtor offers:
Market Knowledge: A skilled realtor possesses comprehensive knowledge of the local real estate market. They understand market trends, property values, neighborhood dynamics, and upcoming developments. This knowledge allows them to provide valuable insights and guidance to their clients.
Property Search Assistance: Rather than just relying on online listings, a realtor actively assists clients in finding properties that match their specific criteria and preferences. They use their network, access to exclusive listings, and market expertise to identify suitable options that may not be readily available through online searches.
Negotiation Expertise: Negotiating the terms of a real estate transaction can be challenging and emotionally charged. A proficient realtor acts as a skilled negotiator on behalf of their clients, striving to secure the best possible deal in terms of price, terms, and conditions. Their goal is to protect their client’s interests and ensure a favorable outcome.
Transaction Management: Buying or selling a home involves a multitude of complex tasks and paperwork. A reliable realtor manages all aspects of the transaction process, from drafting contracts and handling documentation to coordinating inspections and appraisals. They ensure that the transaction proceeds smoothly and efficiently, minimizing stress for their clients.
Professional Network: A reputable realtor has a vast network of professionals in related fields, including mortgage lenders, home inspectors, attorneys, and contractors. They can provide referrals to trusted professionals, helping their clients navigate various aspects of the buying or selling process with confidence.
Client Advocacy: Above all, a dedicated realtor acts as a trusted advisor and advocate for their clients’ best interests. They listen to their clients’ needs, concerns, and goals, and tailor their services accordingly. Whether buying or selling, they prioritize their clients’ satisfaction and strive to exceed their expectations at every stage of the process.
In essence, a good realtor is a valuable partner who goes above and beyond to guide their clients through the complexities of the real estate transaction process. They offer personalized attention, expertise, and support, ultimately helping their clients achieve their real estate goals with confidence and peace of mind.
And, just to be clear, our fees are negotiated upfront with the seller. I do not have a set fee. The buyer is paying the seller and the fees come out of the seller’s side. The key words here are THE BUYER IS PAYING THE SELLER all of the money. The buyer is also paying the fees. What buyer, especially first-time buyers, have extra money lying around to pay an agent a fee? None that I know of. Buyers need the protection of an agent.
I have been a realtor since 1979 through every market imaginable. I wish those that write articles such as this would take the time to actually follow a professional realtor around for a week. Just one week. What a journalist would find is that most of us work far more hours than the average person’s work week. Sellers call at all hours of the day & night. Buyers want immediate response to their text or phone calls. We deal with approvals, appraisals, inspections, scheduling, title issues, remote closings and a host of other issues that no one acknowledges. Our time is never our own. Ask my own son who answered a call late on Christmas Eve one year and told my clients what day it was. I’ve shown as many as 38 homes to ONE buyer before actually securing a home for them. And no, I don’t even check the commission that’s offered to a buyer agent before I show. In a brisk market we are “on call” every day, weekdays, weekends, holidays, even on vacations. Our families get the short end of the deal. It’s true that an incredibly high number of people leave the real estate business within 2 years. This article didn’t even mention how much it costs to be in this business. Your automobile, gas, association dues, technology fees, education expenses, errors and omissions insurance and board dues are all out of pocket expenses for each agent. And since we are self employed we pay ALL the social security tax (13.4%), not just half like your employer pays for you. This article isn’t the full story.
Realtors should realize this WSJ editorial is propaganda inspired by the pro socialism DOJ. Again, there will be some many seller, buyer complaints that government will take over the real estate industry.
While I can’t speak to the life of a columnist, I can speak to the truth when it comes to Realtors and the layers of activities required to properly represent clients and assure a successful settlement. Unless you have walked in the shoes of a Realtor, don’t judge. Most are very committed to achieving the best possible results for clients, and most work 6-7 days a week, and 8+ hours a day. It is a very rewarding profession but not always monetarily. Helping someone sell their current home or secure their “next chapter” home, takes expertise, efficiency, professional knowledge and requires due diligence 24-7. Bottom line: good agents work for their money. If you know those who don’t, don’t hire them.
agreed. I’ve been in the real estate business for over 30 years……I’ve never steered a client to a more expensive house because I was hoping for a bigger commission nor have I avoided showing a house because it paid a smaller commission. I don’t know who Sitzer and Barnett are but, as you say…….they should get their real estate license just to find out how “easy” it really isn’t. Sometimes, yes, transactions seem to flow effortlessly from the initial signing of the P&S to closing, but more often than not, there is a lot of work in between. This week I paid my seller client’s plumbing bill because they didn’t have enough money to fix a problem in their house that we have under contract……..and, I don’t expect to have them reimburse me at closing either. It’s what we do to make things “work”. And, speaking of getting paid too much for very little effort……..I’m sick of paying $4.50 for a dozen eggs and over $5.00 for a gallon of milk….I think I’ll sue all the farmers here in my state for price gouging…..after all, the chickens and cows are doing all the work.
I retired a year ago. Before I went into real estate some 35 years ago, I was buying a house as a pretty ignorant buyer–just as a large per centage of buyers still are today. I asked a realtor why his client would pay a point towards my mortgage costs. The answer was “so you can buy his house.” How many buyers today have barely enough to make the down payment and cover the mortgage costs? Then you ask them to come up with 3% for a realtor to represent them. With the new situation, we will either have non represented buyers, buyers who hire lawyers, or buyers who offer 3% more for the home they want with a clause in the contract asking the seller to pay the 3%–so that they can buy the seller’s house. Too bad the reporters didn’t talk to a few realtors to get a realistic view.
I have been I. Real estate over 40 years. It was a standard 7% when I got in. Now it is 5 to 6%. The work is completely different now. When NAR sold our MLS off they sold the tool that allowed the higher commission as we controlled the inventory with our listings. Now it is in Zillow and other outlets and that is where buyers are finding their homes, not through us. Instead of controlling our business we now pay Zillow and other companies for leads we would have gotten for free. We allowed the NAR to destroy our real value as the broker. Any ire toward this should be directed at the NAR not others. This business is evolving as tech enters into it. This is one small step among many on the horizon. It is an opportunity for those with foresight and the death knell for those without it. Maybe it is time to prime the tree
Two Things…
1. How do you think the listings get put on the internet? Answer: Real Estate Agents
2. FISBO’s ( For Sale By Owner’s) are always an option. It is a free Market. You are paying for a service with a Real Estate Agent. By all means, list the property yourself, take your own photos, show the property to all the buyers and schedule the showings yourself, negotiate the contract price, date of settlement and terms yourself, do your own market analysis, coordinate the home inspections, appraisals, lenders and title companies yourself. Handle all the repairs yourself. Just make sure you follow all the State and Federal laws of disclosures and be sure to follow fair housing laws or you will be sued. You can do it all yourself! No one is stopping you.
As a Broker/agency Owner for over 30 years, I taught agents that real estate is a service business not a sales business. With over 75 agents at one time they learned not to look at commission but to look at how to help the client/consumer.
Commissions have always been negotiable not what WSJ says.
Look at any Realtor’s website and see the testimonials of buyers/seller grateful to their agent for a job well done!
Reckless and incompetent reporter is my opinion.
I would not argue a point with a fool. It takes two to argue. The guy that wrote this article wants commentary about this article to enhance his image. He has no understanding of what an agent goes through just to get paid or close a transaction. Don’t give him the satisfaction!
I find it interesting that someone can write an article like this that has obviously not walked in the shoes of a realtor. I’ve been in the business for 43 years and this is a very tough, and expensive business to be in. If they think that finding a house is the extent of the job then they shouldn’t even be able to put a pen to paper and write about this. The job actually starts when an offer is written, the negotiating, the timelines, walking your buyer through the inspection, more negotiating if repairs are needed. Making sure they are protected every step of the way and there is a good outcome for both buyer and seller. There is no paycheck at the end of the week like this person that wrote this article probably collects. There is no health insurance like the one this person probably has and there are no paid sick days or vacation. If you don’t close an escrow you don’t get paid. Yet we still show countless houses and work to close every escrow we open although that may not happen because after the home inspection or the appraisal it may not be in the best interest of the buyer. This author is truly thoughtless and does not have a clue. Shame on you!
Here we go again with the media blitz of misinformation like 2008. The media and politicians blamed mortgage brokers for the mortgage crisis. (Mortgage brokers have no money they originate only. Lenders underwrite approve and fund). The blame game made the mortgage broker the scapegoat and put so many people and companies out of business. When the truth/facts be known it was Wall Street and investors. (Pick up Andrew Ross Sorkin’s “to big to fail “ or buy the movie on Amazon)
My point is before you write an article that will have a negative impact on people’s lives do your research. The consumer is going to take the biggest hit. The buying public will revert back to “caveat emptor” buyer be ware, because they will have no representation. First time home buyers will have a more difficult time being able to buy due to the cost. In Southern California the median price for a home is in the high 800,000’s TODAY and it keeps going up because of a lack of inventory not commissions. Economics 101 supply and demand. Agents are showing property and writing multiple offers fighting to obtain that home for their clients. It takes months even years before it happens and when it does hallelujah but now the work begins non stop till it closes. You take the commission made and divide it by the days and months it took to make it, sometimes we’re lucky if we break even. I love my job and the satisfaction it brings because I helped someone achieve the American dream and begin creating wealth. This lawsuit will create chaos and havoc. Rather than do a hit job on the housing industry, the industry that creates jobs every time a house sells. Why don’t you investigate the BIG money that initiated this lawsuit. Sellers have been negotiating and paying commission to the listing agent for decades understanding it was the cost to do business. Why all of sudden it turned into a class action lawsuit. Who knocked on those sellers doors? Write about that.
Just the name Wall Street indicates legalized crime. Hysterical.
As of the time I am writing this, it seems that all of the comments are from hardworking Realtors who vehemently disagree with the author. I’ve been licensed as a Realtor since 1974, and like all of the others who commented, consider myself hardworking and going the extra mile for my clients. However, I can not say the same for many of my colleagues and I’m sure that many who have written can also say that there are many in our field who are unethical and will steer clients based on the commission and not what is in their client’s best interest. Most of the big firms charge 6% and this has been the standard for decades, even though inflation has caused housing prices to practically double, but our costs have not.
The editors at the Wall Street Journal should continue doing their work but only get paid sporadically. Pretty sure they would start singing a different tune. For every deal that we get paid on, there are at least 4-5 others that we don’t. We’re constantly working for free and the public never sees this. In fact, some think we get a base salary on top of our commission. The idea of going months without pay is a very foreign concept to many folks.
Let’s sue the Wall Street Journal for slander. There is no way professional journalism should make statements that they cant back up. They sit on their cushy ass jobs and make accusations like this. We work hard every day and make clients very happy.
I have been a realtor for 36 years and seen a number of changes that made the industry better but all this is frickin ridiculous. All this doing is making the Law Firms richer and all the self righteous people that dream all this up. Let them pay our dues, franchise fees, educational cost, office fees, advertising and associated expenses and see who’s making all the money. This not counting the hours researching and inspections.
We need to act TODAY to defend ourselves as realtors with a class action suit for slander against the Wall Street Journal we are not getting help as individuals. This is a drive eliminate our profession an go AI.
In a world of Greed, including Journalist like this who write about controversial issues to gain publicity….No one is picking on the attorneys who line their pockets with exaggerated costs and fees robbing the consumer of their hard earned money, or the physician who does a video call for 60 seconds and charges outrageous costs. Perhaps there is an extreme envy that hardworking Real Estate Agents make a better salary than they. We bend over backwards to meet the needs of our clients, spend hours showing homes, working weekends and late nights for open houses, building long term relationships and actually caring about our clients, spending our own money to close deals and negotiating to be sure everyone is pleased.
I pay my realtor association about $1000 each year for membership (appx $600+for membership, along with $400+ for MLS access). I am REQUIRED to join NAR and in my case CAR which is included in the association membership. CAR controls access to the paperwork for listings and sales. The association controls MLS access to show properties and have the necessary info I need to write paperwork for listings and sales. My concern is why do I have to join NAR and pay a membership fee….if I want to practice real estate…most if the emails I receive from NAR is constantly trying to sell me something else….
This article written by MSM contains “Misinformation” and apparently wasn’t “FACT CHECKED” but I guess it’s ok for them to print whatever they wish. We should censor this article because it’s out of touch with reality and it’s offensive….but I have a problem with being required to pay annual membership to NAR…for what…and I can’t opt out….ive practiced real estate for more than 25 years and I have NEVER taken a listing for 6%….i have always charged 4% and for some buyers I’ve represented I’ve paid for repairs in order for the purchase to finalize.
So WSJ fact check some of the comments these hard working realtors have posted here!!!
As a Realtor for 25 years I’m not surprised, but I am frustrated that our payments to NAR are being used for NAR to escape from the class action suit (and I expect those payments will be increased to cover this expense). What frustrates me is that this “voice of real estate” is not actively combating efforts like this article to disparage our occupation.
SO the lawyers making 33.3% are saying Realtors making 6percent and splitting it are making too much and are overcharging, lol!
Seriously who’s really going after the Realtors, it’s sure NOT the buyers and the sellers!
Literally in a recent pole taken over 75% of buyers who purchased a home in California said they love their real estate agent and would refer them over and over. So, because a handful of buyers in Missouri decided they don’t like their agent we all, 1.5 million of us have to change how we’ve done business for over 50 years? Absolutely ridiculous.
When are you gonna go after the other people who are way overpaid for doing what they do if you add up how much time and cost a realtor is into their clients it sure not the 3 to 6% that you think we’re making.
As far as I am concerned, nobody even gets how we do our business yet they can talk about us in negative ways when they don’t even know what they’re talking about. How many homeowners do you think would not have a home if it wasn’t for their realtor?
After this article, probably guided by NewsCorp management, do you want to rely on Realtor.Com for support or leads? Not me.
Or Zillow using your hard earned listing information information against you by selling the leads from it to other agents?
Realtors, fight for what you are worth!
If your car breaks on a trip or your AC breaks on a hot day, do you get 3 estimates first and quible over the price or do you get someone reliable and pay their price?
Realtors are professionals like doctors or lawyers. If you have a serious medical problem, do you want the one-flat-copay-fee for everything doctor, or do you want the high priced specialist? What outcome do you want?
With a lawyer too, it depends on the matter at hand and how important the outcome you want to have.
The Realtor that makes it look smooth and easy has done their job well.
Buyer Brokerage has been the law since 1996, we just ignored it until there was a contract to write, or used it to say our BB services were “free” or myriad other work arounds. Nothing has really changed except how we think about it. Now there are structures in place that demand adherence to that law.
This protects us as well. Ever had a buyer have their cousin write the contract after you showed them around for a month? Have a buyer go direct to a FSBO you found? We all have stories…
Buyers need us. There are also good opportunities here.
You’re an entrepreneur, figure them out.