Barbara Corcoran: NAR settlement causing 'total confusion' in real estate
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Published 2024-03-27
In Corcoran's words, the settlement has resulted in "total confusion" across the real estate industry. She explains the change that requires brokers to create a written document outlining all the services they will provide for buyers, as well as the cost of each service, will make "a clear difference," but that's the only upside.
Corcoran explains that sellers will have to "make good with the buyers" in order to help boost the price and sales of their homes, even if it means coming out of their own pockets for the "myriad of things" that could arise." However, she maintains that the ruling is "not a big deal," but rather, it's the confusion it has raised that is the real problem.
Corcoran notes that this ruling will not prompt home prices to come down, as sellers have "a one-time chance" to make profits on their house. She cites the housing inventory shortage as the reason why "prices have gone up despite everybody singing the blues," with prices continuing to rise due to the imbalance in supply and demand dynamics.
However, Corcoran advises that if you want to buy a house, the time is "right now." As people wait for rates to fall before entering the market, she warns that the optimal time will see "everybody in the market," and she questions, "Why would you wait for that?"
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All Comments (21)
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Finally, someone who knows the business inside & out. Thanks Barbara for speaking the truth.
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The purpose of the Seller offering to pay a Buyer's commission has always been to encourage Buyer's brokers to bring Buyers to the Seller to sell the house. If you are a Seller and don't need anyone to come to your property to sell it, or you will market it yourself--then you don't need to offer a Buyer's commission. But if you want to encourage more Buyers to get a better a price--then offer a Commission. Simple as that.
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It sounds like it will close doors to people buying homes and leave the way open for investors to buy up homes to rent. This will force out regular families from being able to ever own a home. In my opinion
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Barbara Corcoran is one of the smartest and most successful people . She really knows her stuff! I completely agree with her take on this NAR settlement causing confusion. It's hard to imagine sellers accepting less for their homes just to pass the savings on to buyers. At the end of the day, sellers want to maximize their profits, and most buyers don't want the extra out-of-pocket expenses either. 💰 Barbara's right - despite the uncertainty, now is still a great time to jump into the market and buy!
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Barbara.... are you kidding me....? You are telling people to "rent" rather than "buy"???? Young people.... After 30 years you will have hundreds of thousands of dollars in equity and you will never have to make another rent payment or mortgage payment.... I can't believe you didn't tell people that renting is just throwing your money away every month and getting nothing for it but a roof over your head for now.... Geeez
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First-time home buyer advice: Move to a city or buy in a town with new construction. Most builders offer huge incentives that can be used to lower the interest rate or reduce the price. Many areas have grants and programs that help with the down payment. Some companies even buy the home for you and let you rent that home, and then you buy it from them when you are ready at an agreed-upon price.
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As a buyer I am not ever going to pay a commission to a Buyer Agent. Afterall, who is coming up with all of the funds that is being used to pay all of these fees through the cost of the home...yes, me the buyer! No sale, no money. I will have closing costs, appraisals, inspections, etc. so don't need to pay additional fees. Plus, I am the one incurring debt not the one reaping thousands of dollars through a sale. A selling agent not willing to share a commission is a greedy one. If I show up with a Buyer Agent and end up purchasing the home, you've got a sale so pay for it! Selling agents not willing to share a commission with a buyer agent (just ran into this) will potentially turn away a sale. Buyer agents won't work for free.
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This is the best explanation on YouTube. Pay attention to Barbara.
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America needs to stop allowing institutional investors to buy up most of lower priced residential housing stock. There should laws against this in every State. First time homebuyers who are strapped for cash can not compete with these big wealthy bullies. This is what is also causing low inventory but no one talks about it.
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2.9 % mortgage...........only my heirs will sell, not me.
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so many ppl will not even be aware. realtors will keep on realting. nothin's gonna change...
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Telling it like it is. Gotta respect her honesty.
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The lawsuit made the lawyer very rich, Buyers get hurt.
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This has just made it more expensive for buyers to buy.
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I wish I was the lawyer that got the win in the class action law suit, I bet that’s a 5% commission 😂😂😂
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Barbara is a wise Lady. She is correct about the confusion being the problem with this change. I think if agents are wise, they will encourage the seller to pay the commission as they always have and the statisics show Sellers get more money for their home using a realtor, verses selling it themselves without paying a commission.
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What a great interview! I completely agree with her takes here, and it's refreshing for an outlet like Yahoo to air the truth!
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Agree about the low interest rate—I’m not selling any time soon.
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Most sellers are still willing to cover the buyer agents' commission. The media has blown this all out of proportion.
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Barbara is talking her book. Telling people to buy real estate at maximum unaffordability is either disingenuous or stupid. She's not stupid. So it's the former.
