HUGE shakeup in the housing market: Are Realtors going away? #business #realestate #investing #tech
00:00:00.000 | big news for the National
00:00:01.340 | Association of Realtors. They've
00:00:02.900 | agreed to pay $418 million in a
00:00:05.220 | settlement last week, people are
00:00:06.620 | freaking out about it. As you
00:00:07.980 | know, the seller of a home pays
00:00:10.380 | the buyer's agents Commission
00:00:12.260 | buyers are responsible for paying
00:00:14.540 | their agents commissions going
00:00:15.860 | forward. It's always been crazy
00:00:17.340 | to me that anyone would pay a
00:00:18.700 | percent of absolute value. It
00:00:20.700 | makes no sense. I bought a home
00:00:22.180 | for a million. I'm selling it for
00:00:23.300 | a million one. So I've made $100,000
00:00:25.340 | profit, but I got to pay $60,000
00:00:28.080 | of my total gross to an agent to
00:00:30.380 | sell it for 60% of the profit, I
00:00:32.340 | just gave him 60% of my profit on
00:00:33.940 | my home, right? It makes no sense.
00:00:35.980 | And the crazy thing is that a bad
00:00:38.580 | sale of your home would be let's
00:00:40.740 | call it 900,000 or a million and a
00:00:42.980 | great sale would be 1.2. So
00:00:45.100 | exactly. There's a very small
00:00:46.780 | margin where they actually have an
00:00:48.600 | impact based on the quality of
00:00:50.040 | their effort, but they get
00:00:51.060 | compensated for the whole thing.