Latest / Connor with Honor: AI, Real Estate and Real Life / Santa Clarita Sunday real estate update

Transcript

Santa Clarita Sunday real estate update · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Everybody, I'm Connor with Honor.
• 0:01
  SPEAKER_00: I wanted to give you a little bit of uh several words actually about buyer-broker agreements.
• 0:07
  SPEAKER_00: Whenever you purchase real estate, probably in the past, if you have, usually you haven't really heard of anything like this.
• 0:16
  SPEAKER_00: Currently, it's being something that now, because the commission structure in real estate is somewhat in a weird spot.
• 0:25
  SPEAKER_00: They're really not sure how they're going to handle the lawsuit that went down.
• 0:30
  SPEAKER_00: If you haven't seen anything about that, go ahead and Google something on the terms of lawsuit, National Association of Realtors Commission.
• 0:40
  SPEAKER_00: Something like that into a search engine or Chat GPT, and you should be able to pull down that particular information as to what I'm talking about.
• 0:48
  SPEAKER_00: But because of that, what's happened is brokers are now using contracts with regard to their buyers.
• 0:56
  SPEAKER_00: So if you want to buy a house in Santa Clarita Valley or wherever you happen to be, the agent that you're going to use to buy that house, your agent potentially is going to give you this agreement.
• 1:08
  SPEAKER_00: And this agreement is going to have terms on it that basically state who's going to be paying their commission.
• 1:15
  SPEAKER_00: Is this agent going to rely on whatever the seller happens to be offering?
• 1:20
  SPEAKER_00: Or is it going to be indicated within this contract if you decide to purchase a house where the seller isn't cooperating or going to pay your agent, you are going to pay your agent.
• 1:32
  SPEAKER_00: And then within the buyer broker agreement, there are other things that apply.
• 1:36
  SPEAKER_00: The buyer broker agreement is very broad.
• 1:38
  SPEAKER_00: It can apply to every single house looked at, it could apply to everything, it could apply to only a specific residence, which is interesting for you to know if you happen to be one of the listing agent hunters in the world.
• 1:53
  SPEAKER_00: If you're somebody that wants to buy real estate, and somebody told you it's one time that it's really best to go with the agent that the seller selected, for whatever reason they they had for you to do that.
• 2:05
  SPEAKER_00: In my world, I would say that's probably not the best thing.
• 2:10
  SPEAKER_00: Well, maybe at least for somebody like me.
• 2:12
  SPEAKER_00: Well, for somebody, because what happens is that agent representing the seller is also now your agent.
• 2:20
  SPEAKER_00: They know your finances somewhat intimately.
• 2:24
  SPEAKER_00: They also know the seller's position somewhat intimately.
• 2:27
  SPEAKER_00: It's hard to have one individual to be able to separate that line straight down the center and be on the seller's side 100% and the buyer's side 100%.
• 2:39
  SPEAKER_00: Of course, it happens, yes, but again, it's something you need to consider before walking into real estate.
• 2:46
  SPEAKER_00: That being the case, understand this.
• 2:48
  SPEAKER_00: With regard to the buyer broker agreement, just make sure you read it.
• 2:53
  SPEAKER_00: Go through it line by line, asking questions, taking notes, and if in fact at the end you have more questions, send the agent an email.
• 3:03
  SPEAKER_00: To may recap your discussion so then you can find out exactly what the terms of that particular buyer broker agreement are.
• 3:12
  SPEAKER_00: When you go to the listing agent, one final thing.
• 3:16
  SPEAKER_00: Once you go to the listing agent and say, Listen, I want to use you to buy this house, understand that they might say, okay, well, it's going to cost you 2% to purchase the house.
• 3:25
  SPEAKER_00: And then you're going to say, Well, aren't you representing the seller?
• 3:28
  SPEAKER_00: Yes, I've negotiated with the seller for my commission to sell their house.
• 3:33
  SPEAKER_00: Whoever's going to bring the buyer is going to have to have a buyer that's willing to pay their commission.
• 3:38
  SPEAKER_00: Or if the buyer wants to use me to buy the house, the buyer has to pay mine.
• 3:42
  SPEAKER_00: Something to consider food for thought in an ever changing world.
• 3:46
  SPEAKER_00: But for you buyers out there, just be careful, get good advice.
• 3:50
  SPEAKER_00: And I'm Connor with Honor.
• 3:51
  SPEAKER_00: You'll find all the resources you need at Connorwithonor.com.
• 3:55
  SPEAKER_00: Thanks for watching, be well, and we will talk to you soon.
• 3:58
  SPEAKER_00: I'm Connor with Honor, over and out.