As if it's not already extremely challenging to buy real estate, there's a lawsuit happening right now that's going to make it even harder for buyers and sellers to trade real estate. Yo Dude, Hey brother, what's going on man! I Just wanted to check in to see if you're still coming to the REI networking event tonight. I Sure am, what time is it at? Okay, uh yeah, dude I'll be there Awesome brother! Well I can't wait to see you man. your person All right hello hey Jamie hi this is Sean with X2 more.

It's so good time to chat. Let's talk about what this lawsuit is actually about and it's making serious headways. Now because it's actually making it up to the Supreme Court levels. To understand the lawsuit, you need to understand how real estate in particular works.

Okay when you go to buy or sell a property, a seller, so the one who owns the home is actually paying the Real Estate Commission of both the selling agent who's representing the seller and the buying agent who's representing the buyer who is buying that home. The reason this is making such big headlines is because there's a lawsuit against Nar National Association of Realtors that is essentially saying that a buyer's agent isn't really entitled to any of that. Commission Because a seller is the one who is paying it and they're never in communication with that person. So if I'm buying a house, I'm essentially paying my real estate agent nothing, it's free I Don't you can do that and get that? Let me give you an example.

All right. Come here. Picture this. You're a property seller.

You're selling a house for a hundred thousand dollars. You call Mr agent and you say hey, Mr Agent I want to sell my house for a hundred thousand dollars? That selling agent is going to then list your house on the MLS Market It do all of these things at the hundred thousand dollar price point and they're going to be charging you six percent to do that. Okay, so you're gonna walk away with ninety four thousand dollars if you sell your house for a hundred thousand. That six percent isn't all going to the Mr agent that you call to sell your house.

The six percent is being split up three percent to the selling agent and three percent to the buyer's agent. The selling agent's job is to sell it. Buyer's agent's job is to bring a buyer to that home sale. So the seller is paying the full six percent and the buyer is paying zero percent.

And that's what's being debated in the lawsuit. Right now. this multi-billion dollar lawsuit is trying to get rid of buyers agents commissions and on the surface it sounds like it should be the right move. It sounds like the listing agent is doing pretty much every everything and the buyer's agent is doing almost nothing but being in the industry every single day and producing at a high level.

I Can confidently tell you that the listing agent is doing almost nothing in the current market that we're in. Let me back up. I Don't want to offend anyone. They're not doing nothing, but they're not doing a whole lot in comparison to a buyer's agent.

A buyer's agent is looking at 20 to 30 different homes, writing 20 to 30 different offers, doing all of this work to potentially get something under contract. A listing agent is just marketing the home, they're getting someone to take photos, they're putting it up on the MLS and they're kind of sitting back and waiting for all these offers to come to them. So again, on the surface, it looks like the buyer's agent is doing almost nothing and the seller is paying for that. However, it's kind of flipped.

The buyer's agent is doing almost everything and the listing agent is not doing as much. Now, the reason this is supposed to be split three percent and three percent is because in a balanced Market spam or else I'd be answering it, but we're busy in a balanced Market a listing agent or the selling agent, they're called the same selling agent in a buyer's agent should be doing an equal amount of work, should be fairly challenging for the selling agent to sell the house, and should be fairly challenging for the buyer's agent to bring a buyer to that house. Lately, in the past couple years, it's just been super hard for buyers, so like we're saying, it's already really challenging to buy a house. and now the debate in this lawsuit is that buyer's agents shouldn't be paid or they should restructure how they're going to be paid so that maybe a buyer is going to have to pay for their services.

Maybe they're gonna have to finance it into the loan I Don't really know. There's a lot of stuff going back and forth at the Supreme Court level right now. that could completely change our industry. and I honestly have no idea what's going to happen to it I Hope we don't go away with the buyer's agents Commission because of how much work they have to spend to get someone under contract and this one I have to because it's not a Spam What's up? What's up? Have you heard the news? What's the news they're taking? There's no more buyer's agents commissions none.

I'm just kidding. I'll talk I'll talk to you about it more. but what time? uh should I come and grab a haircut today? All right? I'm Gonna Get You Pull It uh brother I just had it uh last night because I'm gonna have to pass on that one. but I mean I really couldn't I mean I do eat a lot but I get that sometimes I gotta give myself at least 48 hours before I Actually dude I made it back to back on 24 in several locations.

it's consistent. Similar to us, right? Consistency is key and Chipotle is consistently good. and in a value that chipotle is extra. You know what? dude relate Chipotle to X2 go Chipotle to X2 It's streamlined, it's consistent.

You know what you're getting immediately when you walk in. you're gonna get high value. You're going to get great quality food and at the end of the day you leave extremely satisfied and well taken care of. So good! Only thing I would have said is you can come back to X2 the next day in 24 hours we have.

We got rewards too. Let's come and get launched in the fall. I mean make sure you uh get our our app and you get your points on your app and uh the next one you do uh after like 10 loans with us you get a free one. Pretty awesome huh? why not? Rebecca You don't have to go with us, but well, it seems like a virus if you would like to, uh, work your password today.

Um, how much did you pay for the shoes brother, you know I don't pay full price for anything so these once you get these. uh REI Okay, so these these hokas really look like Moon Shoes Dude, they're awesome bro. what size do you wear I want you to throw these on just just to feel the hype about them. So normally they retail for 180.

Um, but REI has this like kind of like return section right? because they can't But they have a pretty good return policy, right? Aria If you don't have an REI membership and you're an Outdoorsman, you really should sign up, all right? REI and X2 So I found them on the the area that they have their their returns and they were 80 bucks. Damn normally 180 shoes, 80 bucks and they're you Think you're gonna break them in in time by this weekend? That's why we're getting our steps in today so we can put 20 miles on. I'm gonna have to go outside, everyone put their gas masks and then foreign please. Uh, double white, double black double chicken.

I Was just on the phone yesterday with one of my friends who's gonna get into real estate and I was talking to her about how there's this Been this talk for years about the sellers no longer paying both sides of the commission because right now you take a listing, say it's six percent. Three typically goes to the listing agent, three goes to the buyer's agent and they're talking about taking that away so the listing agent would just pay the listing agent and then the buyer's agent would get paid by their buyer. Is that what you're talking about exactly? And I think it's exactly that. It's getting escalated to the Supreme Court now so it's becoming more of a bigger deal.

Everyone was just trying to brush it under the rug because they all don't want to think about it. Yeah, exactly. But you gotta. You gotta hit problems.

Head on. A buyer already has to come in with their down payment and their closing costs. They don't have extra money to pay for a Realtor, so they're not going to pay for a realtor where a seller is sitting on say 200 000 in equity which is paying for the both sides. Then they're getting their proceeds which is plenty for them to go off and buy their house.

So why not keep it the way it is? Because the seller is going to pay the selling agent and then they're gonna have to turn around when they buy their house and pay their buyer's agent. All this is gonna do. which is crazy because every single law regulation, anytime the government steps in the first time home buyer they try to help and all they do is hurt people. What's gonna happen is people are gonna no longer be able to afford an agent.

So if they do buy a house and they don't have an agent, they're going to get absolutely screwed over. They're going to be buying Lemons house like houses that are completely broken screwed in the contract. All these things are going to be issues and I know everyone's like he's not in real estate. It's like oh that's just what people in real estate say.

I've seen for sale by owners where buyers have gotten absolutely screwed up and did a for sale by owner. Yeah, but who is their agent? You and me and you? Yeah, Yeah, so we worked for free on that. Yeah, but I wanted them to have a home right? Like all that it's going to do is, it's just gonna hurt. It's just gonna hurt.

And then you know who's gonna be buying houses. The only demand we're gonna have for houses is gonna be investors and people already in real estate. That just means there's going to be more people renting and less people being able to become homeowners. I Mean honestly, it's horrible.

You want to know? It's crazy. It's a little embarrassing. It took me a good I'm not even joking. It took me probably a year and a half of being in the industry until I finally asked the question like how are these real estate agents being paid because I honestly have no idea how these buyer's agents are being paid I Had no idea what else they're talking about during this is they're talking about bringing in other other professions other people in the real estate world.

they're talking about debating or I should say they're debating having the buyer's commission financed in with the loan. I Don't hate that as much then yeah, for your sake. because then they're gonna at least have an agent for our sake. It's like okay, now they're gonna have to qualify a higher loan amount one and two.

What's even more horrible is them not having an agent in general. So it's like why Lupine Len ending or even title or any other type of stuff where it's like, look, this needs to just not happen like I Agree: The sellers think it's in I'm like, okay, here's my here's my thoughts: Rachel In a balanced Market it should be 50 effort on a listing agent, 50 effort on a buyer's agent. What has it been over the last four years I mean all the effort has been on the buyers. All of it.

A listing agent isn't driving around. they're not writing for jobs, but I've been doing a lot of open houses for sure. Ton of marketing. We shouldn't be cutting commission from a buyer's agent because they are doing a lot.

They're doing the majority now regardless in any transaction. The biggest argument in the lawsuit is the fact that anyone can go find a home and not need a real estate agent. and I'll agree 100 you can go find a home. You don't need a real estate agent to find a home.

it's once you find a home, everything that happens after that. So I don't know I think it's really annoying and hopefully nothing does happen. but it's a multi-billion dollars. I Can't believe it's still a conversation.

it's a bunch of BS who actually this is a good idea I Don't know I mean property sellers. Probably why once they sell, they're going to go and buy another. Okay, so they're going into the buyers. They're only the seller for half of the transaction.

they turn around and then they're the buyer and then they're not gonna. They're like this is school I'm only paying three and a half oh you know how many times I love when someone's like hey, I don't know how I'm gonna pay my real estate agent and I'm like oh, it's my the best thing I get to tell them that they're free on it but at the end of the day when the sellers do it the way that they do, they're paying the same no matter what I know and honestly they're probably saving money because they're turning around and buying a more expensive house. Typically you're moving up. not down.

Only positive would be if someone is selling all all their real estate and not purchasing buying any new rules. That's it. They just saved half the commission because they only paid their their listing agent and not the buyer's age. I Don't know though.

But do you think they would actually really save money? Because if you think about it, that listing agent is now going to have to work twice as hard because they're going to be essentially answering questions for the buyers and the sellers. It's all negotiable what the listing agent wants to take. So I could take a five percent listing and take a six, but I can take a seven, right? You can still charge them six percent because I'm doing more work now. But if there's no right, if there's no buyer's agent, the seller, the listing agent's just going to be doing more work.

And what's stopping them from being like? well, I'm gonna do twice the amount of work. So I'm just going to charge. Yeah, Five percent, Six percent. I Do think the one good change that com that could come out of this if it's handled correctly, is more disclosures.

Which we hate disclosures because there's so many disclosures we already have to send and have people sign. But would it really be the end of the world if you had to sit down with a client and say yes, you have to sign. You have to sign this form. But here's how much you're paying.

Here's how it's being distributed because right now you don't really have to have them sign a specific form about how it's being distributed. I Think yeah. Realistically, the best thing that come out of this if they handle the lawsuit correctly, is just a more black and white disclosure of how the compensation is divvied up. And I think that's all that's needed.

Yeah, just transparency. Okay, one word: Rachel How would you sum up this lawsuit? This multi-billion dollar lawsuit. If something does happen though, it's going to be basically imp possible for the average person to buy a house. They're already scared.

Right now. it's already crazy. It's already super hard to buy a house. Yeah, it sucks.

Gosh. Rachel My haircut is clean. Yeah, you guys are distracting me. I'm going to show up to this uh, networking event tonight.

A freaking fresh back at it again. You ready to network? Oh I'm ready to network.