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“The 6% commission on buying or selling a home is gone after Realtors association agrees to seismic settlement”

https://www.cnn.com/2024/03/15/economy/nar-realtor-commissions-settlement/index.html

“The NAR…agreed to put in place a set of new rules. One prohibits agents’ compensation from being included on listings placed on local centralized listing portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers. Another ends requirements that brokers subscribe to multiple listing services — many of which are owned by NAR subsidiaries…”

The broker commission field must be removed from MLS listings and MLS will no longer be permitted to offer to pay commissions to agents representing potential homebuyers through the service.

“By some estimates, real estate commissions are expected to fall 25% to 50%, according to TD Cowen Insights. This will open up opportunities for alternative models of selling real estate that already exist but don’t have much market share, including flat-fee and discount brokerages.”

Immediate effect on stocks: Zillow -13%, Compass -13, Redfin -5% (sits at $6.01 right now),  Lennar +2.4%, Pulte +1.1%, Toll Brothers +1.8%

I guess everything but home builders are falling in anticipation of lower commissions.

Lower commissions mean lower income for realtors per sale.

Personally I think Zillow has an easier path to adapting to new models so I would not be surprised to see them as the big winner in the long run.  Time will tell.

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He’s part ostrich.  He’ll call it fake news.

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Dude.   You asked me how my friend was doing.   I told you he was doing just fine – and he is!  Always busy, not bored at Redfin.  Just bought a new car.

You insist on turning that into a debate on Redfin in general.  Such a joy to converse with you!

This site is a ghost town now.  I wonder why…hmmmm….

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You like to argue.  No question about that.  Just look at the Goodbye to San Diego thread that you revive from the ashes every chance you get.

Look, he tells me he had his best year ever.   I have no reason to doubt him.  He’s always busy.  I’m not going to ask him to break out his books – we’re friends who share a drink or two in the evening, not business partners.

You still seem to be under the assumption that you can interpret data correctly.  I’m not so sure that’s true.

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“Its white collar crime which exists in every industry”

You overlook that the SDAR board is being charged with retaliation.   We shall see where the lawsuit ends, but at this point it appears to be wider than one bad actor.

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Geez man you are really something.

I did not say all of Redfin was doing great or that Redfin business is up.   I said my friend is doing great.  He tried to take a vacation this summer and was inundated with so many sales transactions that he had to abbreviate it.

You make a very common mistake in thinking that statistics can give you the entire picture when they do not.

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My Redfin friend is doing great!  Still with them and he has more business than ever!   Has to hand some off it is coming in so fast.

20,000+ of your fellow San Diego realtors are part of SDAR.  Not a very good look for your profession.

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You sure do toe the realtor line pretty consistently.   Peck at San Diegan who choses to move to Utah like a mama bird protecting her nest.   Ditto anything that threatens the traditional realtor ransom.

You might want to spend some energy getting the San Diego Association of Realtors in order – reports are that over $1M was embezzled and the SDAR did nothing after being told of such.

https://www.sandiegouniontribune.com/business/story/2023-08-09/former-ceo-greater-san-diego-association-of-realtors-accused-of-embezzlement-and-retaliation-in-civil-lawsuit

 

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Wow.  Apparently I’m gonna die in my 90s.  Who knew?

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There is room in this big, beautiful country for all of us.  Urban hipsters, suburban families, desert rats, mountain hermits, everyone.   They chose their location because they like it best.  Of course they are going to have a negative viewpoint on the areas they didn’t pick – it wasn’t their favorite.

If we were all the same and made the same choices, that one house in that one city would get very very expensive fast.   Vive la difference.

Pretty sure I’ve said this before, but I’d actually prefer it if a few more people left San Diego.  It is getting too crowded for my tastes.   “You call some place paradise – kiss it goodbye” – Eagles in “The Last Resort”

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Personally I think the market is on its way down.  10% to 15% maybe 20%.  But who knows how long that will take.  Could be a year, could be 5 years.

Do they need a place to live?  And they have the cash?  If so I wouldn’t care what the bank thinks, as long as they could be happy there 5-10 years.  Because in the long run, who cares if there is a short-term dip in prices.

If it is for investment purposes…I dunno.  My gut tells me it is not the time for investment purchases.  But what do I know.

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Well.  I applaud many saying being wealthy has nothing to do with money.

But from a financial standpoint, I’d say quite a few of us here are north of the mark they show for San Diego.   I know I don’t feel wealthy.  Financially secure yes, but wealthy – which to me means someone who can afford to do what they want without considering cost – no.

I’d say perhaps twice the figure they give is someone who is wealthy.  Maybe.  Triple for sure.

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j/k btw

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…and could be converted to apartments/condos to solve the housing shortage.   But that takes time and in the interim there could be considerable turbulence.

I’m hoping the turbulence is minor and this week’s inflation numbers, etc look promising so we may be OK.

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I think he misspelled it.  It was Big Bambu Insurance.

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