Latest / Connor with Honor: AI, Real Estate and Real Life / What does the 418 million dollar Real Estate Lawsuit mean for Los Angeles and Santa Clarita real estate?
Transcript
- 0:01SPEAKER_00: How is that$418 billion lawsuit going to affect buyers and sellers in the Santa Cruita Valley?
- 0:09SPEAKER_00: I'm Connor with Honor, and today is March 25th, 2024.
- 0:13SPEAKER_00: It's Monday.
- 0:14SPEAKER_00: This is your daily broadcast that I where I talk about local real estate challenges and the real estate market, how buyers and sellers can best protect themselves and how real estate's actually functioning here at a local level in Santa Clarita and greater Los Angeles.
- 0:29SPEAKER_00: Here's what you need to know if you're considering buying and selling real estate.
- 0:33SPEAKER_00: You're going to see the advertising and marketing picking up quite a bit because of this lawsuit, this$418 million settlement against the National Association of Realtors.
- 0:45SPEAKER_00: What this means to you if you happen to be a current seller in Santa Creta Valley is realistically nothing at this particular time.
- 0:53SPEAKER_00: You're already under contract.
- 0:54SPEAKER_00: You either already agreed to compensate the buyer's agent something, or you're doing something called an exclusive listing, where the agent that you've hired isn't really allowed to advertise your property except for within their own brokerage.
- 1:09SPEAKER_00: So they have to keep it very, very quiet, but you're doing an exclusive sale through that agent, potentially trying to save some money.
- 1:16SPEAKER_00: On the other end of it, real estate buyers now, you're buying real estate.
- 1:21SPEAKER_00: Most of you are starting to see something called contracts, a buyer contract.
- 1:25SPEAKER_00: The agents are having you fill these out in order to ensure that the agents get compensated.
- 1:30SPEAKER_00: Now, the discussion that you've had with your agent, whether or not you're going to pay them for their services or whether they're going to traditionally try to get that from the real estate seller.
- 1:38SPEAKER_00: That's probably another conversation you're going to have if you haven't had it already or you will.
- 1:43SPEAKER_00: Real estate buyers are starting to see that they're signing buyer contracts.
- 1:47SPEAKER_00: Something I'll throw out to you is make sure that whatever compensation you're going to be paying, you understand how that works and how you're going to be paying it.
- 1:55SPEAKER_00: And if the agent's telling you that you're not going to be paying them anything to represent, to be represented, that's great.
- 2:02SPEAKER_00: Just make sure you do see that in writing on the contract that the agent's going to be going to the seller to get compensation, as has traditionally been the case.
- 2:11SPEAKER_00: Real estate sellers in Santa Clarita currently, there are no changes within contracts.
- 2:16SPEAKER_00: We are seeing some brokerages modify some of the way, the ways they deal with their sellers in-house.
- 2:22SPEAKER_00: They're providing different types of disclosures, trying to be ahead of the ball before they have these changes implemented in concrete coming up here in July.
- 2:31SPEAKER_00: As according to the National Association of Realtors, that's when the changes are going to be implemented.
- 2:36SPEAKER_00: But you're going to see a lot of the local boards, local agents, online syndication systems, they're all going to come out with different methodologies trying to sell their wares to you if you're interested in selling or buying Santa Clarita real estate.
- 2:50SPEAKER_00: For you, just be weary and watch out on the news cycle what's happening with regard to real estate commissions and also try to wade through the BS out there.
- 3:00SPEAKER_00: You can go to Connorwithhonor.com.
- 3:02SPEAKER_00: That's my website.
- 3:03SPEAKER_00: And on there, I do post up information, news articles, and do a real estate broadcast every single day talking about real estate.
- 3:10SPEAKER_00: Currently in Santa Clarita, though, this is kind of outside that scope, but I will tell you the impacts are not very many at the current time, but you will see agents are a little nervous, concerned with how they're going to be compensated in the future.
- 3:25SPEAKER_00: If in fact they're selling real estate and they're selling real estate to a home buyer, how's that going to look?
- 3:32SPEAKER_00: In the bigger picture, we're more than likely going to see different real estate advertising and marketing models come onto the forefront by very clever and insightful real estate agents and also real estate syndication companies.
- 3:48SPEAKER_00: The online systems where you go to get your home's value, or maybe you go to maybe see what properties are for sale, those syndication sites, a lot of them aren't based within the realtor network.
- 4:00SPEAKER_00: They're outside of that.
- 4:01SPEAKER_00: They're publicly formed companies or privately formed companies that then become publicly traded online commodities.
- 4:08SPEAKER_00: So they're pretty big and they're pretty powerful.
- 4:10SPEAKER_00: They have a massive legal team behind them.
- 4:12SPEAKER_00: But most of these companies online, the syndication systems for real estate, you're going to see those start to change quite a bit where they're going to start advertising and marketing a different kind of real estate model where potentially they're going to try to break people away from listing and selling their homes through realtors, which is, of course, a trade organization.
- 4:33SPEAKER_00: We'll keep you posted on that front, see what happens in the future.
- 4:36SPEAKER_00: But currently, as far as Santa Clarita real estate buyers and sellers go, and those of you that are serviced by me also in Ventura County, Greater Los Angeles, and Orange County, no big changes currently with regard to this settlement that the National Association Realtors has basically been charged with paying$418 million.
- 4:58SPEAKER_00: We will see where that leads us in the future, but as it is now, normal operating procedure.
- 5:04SPEAKER_00: I'm Connor with honor.
- 5:05SPEAKER_00: You be well and stay safe.
- 5:07SPEAKER_00: Santa Clarita, Greater Los Angeles.
- 5:11SPEAKER_00: Take care.