HUGE shakeup in the housing market: Are Realtors going away? #business #realestate #investing #tech
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Episode Description
Full episode: https://youtu.be/3tEcLAud7Nc
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Brief Summary
The episode critiques real estate commissions after the NAR's $418 million settlement, questioning their fairness and impact on sellers' profits.
Key points
- Realtors Settle for $418 Million. The National Association of Realtors agrees to a massive settlement, sparking public outrage.
- The Cost of Selling a Home. Home sellers often lose a significant portion of their profits to agent commissions.
Transcript
big news for the National Association of Realtors they've agreed to pay $418 million in a settlement last week people are freaking out about it as you know the seller of a home pays the buyer's agents commission buyers are responsible for paying their agents commissions going for it's always been crazy to me that anyone would pay a percent of absolute value it makes no sense I bought a home for a million I'm selling it for a million one so I've made $100,000 profit but I got to pay $60,000 of my total gross to an agent to sell it for me 60% of the profit goes I just gave up 60% of my profit on my home right it makes no sense and the crazy thing is that a bad sale of your home
would be let's call it 900,000 or a million and a great sale would be 1.2 so exactly there's a very small margin where they actually have an impact based on the quality of their effort but they get compensated for the whole thing
