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52 sats \ 4 replies \ @kepford 16 Mar \ on: Realtors Reach Settlement That Will Change How Americans Buy + Sell Homes (WSJ) econ
I have some family in the real estate industry and this agreement is no surprise. This has been expected for a while. There are other things changing in the industry and from what I can tell it will mostly be for the good of the consumers. There is a lot of room for disruption in this industry not just on the realtor side of things but with title search, listing systems, and trade agency memberships. One person told me that these changes will push out the part time agents that may not take it seriously enough while those that really work for their clients and show value will take more business. It makes sense if you think about it. Technology really allows the most industrious and productive to be even more productive.
I'm not expert but I've been hearing a lot about these developments for the past few months and from my layman's perspective it sounds like some of the trade organizations and listing services have had a corner on the the market for data and relationships for a very long time and are well aware that this is not going to continue. Like many industries, it seems to me that the sky isn't falling but also there will be radical change. Buying property is still a very complex process for something that only has done this a couple times in their life. That's not to mention the work of trying find a home. It is easy to compare real estate to travel but travel is much simpler than buying a home. This is why that industry was disrupted much sooner than real estate. The agents are ripe for disruption but the listing services, title search, and contract services are as well. Going to be interesting for sure.
Thanks -- some really good points. When we bought our house, the buyer's agent was fantastic, and was someone who probably will thrive under any system, but it'll be interesting to watch what happens to the part-timers.
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Every state has their own laws regarding real estate. I think every realtor has to be licensed by the state. Every state has its own licensing exam.
In California the standard commission is 5 percent after being 6 percent for decades. Agents have to do more work now to earn their commission probably due to competition.
The agent doesn’t pocket the entire commission. They have to pay the brand and their office plus any referral fees.
I think the benefit of using an experienced agent or agency is legal protection. The reason there are so many documents to sign or docusign is too many lawyers especially in California.
I have an agent who helped me purchase a townhouse as an investment property. She has a very good local reputation. She knows the zip code where she works and lives. Every vendor knows her.
A friend sold his place in 2022 and moved out of state to Florida. During inspection the inspector broke his garage door. His agent knew and called a repair man right away. She was also his neighbor which was a blessing and a curse.
My parents were a buyer for a multi family property in 2002. The realtor represented the buyer and the seller which was unusual and potentially problematic. The seller tried to back out during escrow because they were unhappy with the agent. 5000 bucks and crisis averted.
In 2013 my friend used a Redfin agent to buy his first home. He said it was a bad experience because the agent did the bare minimum. I know this is a common complaint if you hire a friend in any capacity.
I saw a post on Reddit about not using an agent. Instead be your own agent but hire a lawyer to handle the paperwork. How is using a lawyer an improvement?
Zillow business model is based on using agents. Their goal was not to disintermediate but to partner with agents and make money via partnerships with agents. They had a name for this that I can’t remember.
Redfin, Zillow, Trulia, realtor.com: this space is competitive and local.
I am an accidental landlord because I was a silent partner with my dad. After my dad passed away my mom took over his duties. I realized quickly my dad had a lot of experience that my mom lacked. I haven’t cashed out yet due to deference to my parents. My plan is to cash out eventually, make sure my mom is financially set, move to Texas and convert remaining cash to bitcoin.
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Some great points, @bitcoin_citizen -- each state is very different (in mine, lawyers are required for closing even if you have an agent, and you have to hire one separately). Our buying agent definitely got us through some of the legal and bureaucratic paths we had to navigate (as well as giving us good advice and advocating for us in general).
I have a friend in a similar accidental landlord situation, and don't envy either of you (especially since landlord/tenant law is its own thing, and also varies a ton between states). Good on you for stepping in to make sure your mom's set.
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