Yahoo Finance anchors Julie Hyman and Josh Lipton spoke with Ryan Tomasello, KBW Managing Director and Logan Mohtashami, Housing Wire Lead Analyst about the Missouri jury that has found realtors responsible for inflating commissions. This, according to Tomasello, “is a storyline that has been unfolding for several years”, and believes that ultimately, this scrutiny will lead to “restructuring” in the housing market. Mohtashami, predicts “ a lot more lawsuits” in the days to come, due to scrutiny, but is hopeful that there will be more opportunity for online realtor platforms such as Zillow (Z) and Redfin (RDFN).
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My friend bought and flipped houses for years and he told Realitors are the most corrupt unethical people he dealt with in the experience !! And I found out he was right they are completely untrustable !! 😊
Leeches
The Eron of housing bubble it’s happening!!!!!!
Now how about a lawsuit for buyers who were outbid, or priced out of the market. Then do Zillow, trulia, etc. and lower property taxes back to original levels.
Good point. This bullshit effects us all indirectly.
Yes!
Sue everyone!
No consequences for any decisions we make!
@Doug G buyers who were outbid or priced out didn’t make any decisions, and neither did those who had their property taxes raised. Market manipulation is the unacceptable decision.
@Doug G lol. Cry more.
@Jeb Trillio
Its sarcasm
Greed
These people don’t understand RE. Nobody conspired to “inflate” commissions, they have always been negotiable and you have to fill in a BLANK on the listing contracts. I’ve listened to multiple industry insiders and most likely, this lawsuit will just separate the 2 commissions. This listing agent negotiates their rate on the listing agreement and the buyers agent will submit an offer with their rate (to be paid by the seller) in the offer.
Or maybe the industry is corrupt and is not meant to protect customers and only meant to steal money from consumers.
The “total” commission might be negotiable in some areas, but the buyer’s commission is usually never negotiated lower. I just sold my home earlier this year. The listing agent negotiated down to 1% for his side, but the buyer agent’s commission was stated to me as not negotiable. In Colorado, that’s usually 2.8% … sometimes 3%.
@J. Borowski There are no state laws mandating the BA commission. The Realtor should have explained it to you better!
People keep making this point and showing that they don’t know what this was about. Please pay educate yourself before reacting to things.
@Jeb Trillio the industry needs to change.
Only in Missouri, 500,000 sellers claim not to know commission is negotiable. Really? One would shop for the best insurance rates, mortgage rates, airline tickets, and yet somehow point a finger at Realtor for failing to negotiate. 8 angry jurors? Seller’s remorse? This will open the door to the age old problem of dual agency where buyers are represented by sellers’ agents.
You are obviously unaware of the matter.
@Jeb Trillio
Sees to me he/she understands
People do not pay enough attention to GOd
Some more trump accounting…..
OK now do fuel prices.
Buyers agent do absolutely nothing of value.
Good luck ,
You seem very well educated and must have done many deals without an agent
You right. They do nothing ever since internet came along. No need for them. When I sold real estate in nineties…they had true value because they actually made buyers aware of listings.
@Doug Gyou can utilize the seller agent. They will act as dual representative.
@Doug G many deals and used a buyers agent because they’re impossible without. If you don’t the sellers agents double ends the commission. This is am absolutely trap built in. We must stop this madness.
As an landlord/investor, the Chaos this law suit will bring will make great opportunities.
Unfortunately, it will come at the cost of Buyer
Sellers benefit and the Buyers lose Here is the problem… When the seller sells, they then become the buyer. They will have to pay for commission on top of their closing costs or go it alone. FHA buyers are toast.
Buyers will be less willing to pay the sellers what they are asking if they have to bear the commission costs as well. Sellers’ agents will do twice the work .
Or buyers will just use the listing agent and by pass the need or expectations to pay 2 agents
What do you mean buyer is the free rider? Buyer are the one paying the agents ! Both of them! Seller got the house money from buyer then they pay. Money is from Buyer! yea?
Not seeing any buyers fees being relevant. You see a house you want and contact the listing agent. Buyer agents just get cut out.
Buyer agents are not needed.
The buyer agents are the ones that were getting free ride. Once internet listings came along…they really have not done anything. The buyer usually just tells them what they want to see…now…they just bypass the buyer agents and contact seller agents instead.
It’s about time
Realtors, the most useless set of people in our economy!