Real estate agent wants you to pay it forward!

21,718 Views | 293 Replies | Last: 8 mo ago by Red Pear Luke (BCS)
Logos Stick
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11:29a, 3/27/24
You know, now that the fees are no longer fixed, they want you to pay it forward since you benefitted when the seller paid the commissions on the house you bought and are now selling!

Has anyone sold a house since the decision? So you only pay the 3% and not the 6% now?

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Shoefly!
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11:31a, 3/27/24
AG
Nothing but Buzzard's!
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Old May Banker
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11:33a, 3/27/24
AG
Meh.... RE commissions, like most other things, are negotiable. Don't look at your HUD-1 and see what everyone from the title company to the attorney to the title insurance company to the surveyor makes if the commission makes you upset.
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befitter
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11:33a, 3/27/24
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.
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93MarineHorn
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11:34a, 3/27/24
If the time ever comes that I sell my place, I'm going to seriously consider FSBO. I bought my place back in '21 and my realtor (older lady) got COVID and was hospitalized for weeks and then her brain was still pretty scrambled afterwards. I did all the negotiating with the seller's agent directly. Maybe I'm crazy but it just doesn't seem too difficult, especially for a condo sale.
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justnobody79
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11:34a, 3/27/24
glorified used car salesmen
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johnnyblaze36
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11:34a, 3/27/24
AG
The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.
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ABattJudd
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11:35a, 3/27/24
AG
When have rates ever been fixed? I've been doing real estate as a side gig for several years now, and I've had plenty of sellers negotiate my fee. And sellers can still pay the buyer's agent fee, we just can't put it in the MLS. The fee can still be discussed between the two agents, or the buyers can pay their agent themselves if the seller refuses. However, most loans won't cover that as a separate closing cost, so the buyers will likely have to pay additional cash. VA loans don't allow buyers to pay their agent under any circumstances, loan or cash.

The reporting on this settlement has been horrifically misleading.
"Well, if you can’t have a great season, at least ruin somebody else’s." - Olin Buchanan
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Tea Party
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11:35a, 3/27/24
Real estate commissions are negotiable, though the fixed 3% each way is getting push back.

This haircut in OP is just negotiating in mass by trying to guilt her customers. She's appealing to emotion rather than logic.
Learn about the Texas Nationalist Movement
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Wabs
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11:36a, 3/27/24
AG
Yeah, how about no.
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Not Coach Jimbo
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11:36a, 3/27/24
"I want you to think back to when you bought the house you're selling"

You mean the one that you made a ton of money on...? Sorry no thanks, this market needs to be opened up to some real competition.
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Serious Lee
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11:38a, 3/27/24
surprised theyre not asking for tips at this point
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Logos Stick
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In reply to befitter • 11:39a, 3/27/24
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.

for 1% I will rep you. I want show you a single house though. You contact the brokers on your own to do that.

but I will rec a inspector, insurance company, bug person, and keep on top of it to ensure its all done on time and hold your hand. i can make phone calls and send emails!

also, the sellers agent has a dog in the hunt. if things dont get done, it doesn;t close.
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Muktheduck
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11:40a, 3/27/24
"You know, that house that's worth way more now than when you bought it?"

Yeah, and it's literally your job to maximize that profit. That's why you're being hired, to find the buyer with the highest bid. It's not hard to sell a house if you're feeling charitable

To answer OPs question, we just sold after nearly 6 months on the market. It's all negotiable. Buyer made an offer, we made a counter, found something agreeable to everyone where we covered the fees but they came up on the price a bit.
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johnnyblaze36
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In reply to befitter • 11:41a, 3/27/24
AG
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.
This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.
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befitter
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In reply to Logos Stick • 11:42a, 3/27/24
Logos Stick said:
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.


also, the sellers agent has a dog in the hunt. if things dont get done, it doesn;t close.
Yeah...the sellers agent has a dog in the hunt....and won't want to negotiate fairly because that would drop their commission. Buyer has no representation.
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Not Coach Jimbo
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In reply to Serious Lee • 11:43a, 3/27/24
Serious Lee said:
surprised theyre not asking for tips at this point


I'd rather do tips than a fixed price.

To complain about your fixed % getting cut and in the next breath talk about how inflated the home prices are... how dense are these idiots.

Prices of homes doubled in less than 6 years... it's not unreasonable that your commissions get cut.
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befitter
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In reply to johnnyblaze36 • 11:43a, 3/27/24
johnnyblaze36 said:
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.
This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.
How is it not accurate?
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Logos Stick
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In reply to befitter • 11:56a, 3/27/24
befitter said:
Logos Stick said:
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.


also, the sellers agent has a dog in the hunt. if things dont get done, it doesn;t close.
Yeah...the sellers agent has a dog in the hunt....and won't want to negotiate fairly because that would drop their commission. Buyer has no representation.

negotiate? wtf?!?!

dude, I NEGOTIATE!

I don't need an agent to negotiate!


anyone allowing their agent to negotiate is an idiot! The buyer's fee is ALSO based on the sale price. Why would they negotiate fairly?
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Tex100
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In reply to justnobody79 • 11:59a, 3/27/24
AG
justnobody79 said:
glorified used car salesmen
. Not true. Our agents have worked hard for us as buyers and sellers
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Tex100
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In reply to Tea Party • 12:00p, 3/27/24
AG
Tea Party said:
Real estate commissions are negotiable, though the fixed 3% each way is getting push back.

This haircut in OP is just negotiating in mass by trying to guilt her customers. She's appealing to emotion rather than logic.
Always been negotiable
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Logos Stick
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In reply to Tex100 • 12:01p, 3/27/24
Tex100 said:
Tea Party said:
Real estate commissions are negotiable, though the fixed 3% each way is getting push back.

This haircut in OP is just negotiating in mass by trying to guilt her customers. She's appealing to emotion rather than logic.
Always been negotiable

so this law does nothing then?
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Houston Lee
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In reply to befitter • 12:10p, 3/27/24
AG
befitter said:
johnnyblaze36 said:
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.
This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.
How is it not accurate?
-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.



Quote:
For Sale By Owner (FSBO) Statistics
  • FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
  • FSBO methods used to market home:
    • Friends, relatives, or neighbors: 20%
    • Yard sign: 19%
    • Third party aggregator: 14%
    • Social networking websites: n/a
    • For-sale-by-owner website: 5%
    • Open house: 7%
    • Online classified ads: 4%
    • Multiple Listing Service (MLS) Website: 5%
    • Other website with real estate listings: 1%
    • Video hosting websites: 1%
  • Most difficult tasks for FSBO sellers:
    • Preparing/fixing up home for sale: 4%
    • Getting the right price: 15%
    • Understanding and performing paperwork: 7%
    • Selling within the planned length of time: 7%
    • Having enough time to devote to all aspects of the sale: 4%
    • Attracting potential buyers: 4%
    • Helping buyers obtain financing: 5%



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johnnyblaze36
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In reply to befitter • 12:11p, 3/27/24
AG
befitter said:
johnnyblaze36 said:
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.
This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.
How is it not accurate?
Because buyers will still have representation and agents will still be a part of deals. Commissions will still be negotiated as will seller paid closing costs as always. It's all just a shell game really for agents that know what they're doing.

The most ridiculous part of the whole thing is the people that will be getting paid the most out of all this nonsense are the lawyers. The consumers that signed agreements and now somehow feel entitled will receive next to nothing. Clown world.
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Rocky Rider
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In reply to Tex100 • 12:12p, 3/27/24
AG
Not my experience. I brought properties to my agent and had to hold their hand during negotiations.

I also purchased 2 properties w/o representation and found it very easy to find: mortgage, title company, inspector, surveyor, appraiser, and insurance. About 2 hours of my time to line these things up.

Agents aren't worthless, but they sure aren't worth 3% or 6%. Realtors greed and laziness is running them out of business

Edit: intended to reply to the thread, not to Tex.




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aggiez03
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12:13p, 3/27/24
AG
When houses cost $80-$150K, then 6% commissions made sense.

When houses cost $500k+, $30K is ridiculous for a single listing, I don't care how many times it is split.

If the average realtor makes 2%, that is $10,000. If they sell one house a month, they are making a good living.

My BIL in Katy sold his house in 1 day and had 3-4 offers. What did the realtor actually do?

Especially in new construction, the realtor drives the client around to look at 3 neighborhoods to visit showcase homes and then collect 3% commission for a single day of driving and 30 mins at closing.

I told my realtor friend about 6-7 years ago that with everything going online, that the days of 6% commissions are going away. Not soon after you had OpenDoor and places like that start setting up shop and doing it for half the price.

They should have adjusted down when their jobs got easier and the prices went up, but they were content staying at 6% and let competitors come in.
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fc2112
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12:14p, 3/27/24
Kinda funny seeing all these agents saying 6% was "always negotiable".

Sure never heard anyone coming out of the closet to say that before this case was settled.
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johnnyblaze36
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In reply to Houston Lee • 12:14p, 3/27/24
AG
Nailed it.
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Tex117
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In reply to johnnyblaze36 • 12:15p, 3/27/24
AG
johnnyblaze36 said:
The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.
LOL. Copium.
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MemphisAg1
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In reply to befitter • 12:16p, 3/27/24
AG
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.


I bought several houses over the last 25 years as we moved many times for my career. We did all the homework and selected the houses we wanted to see from internet listings. Then we contacted an agent to arrange showings. We didn't think about fees because we weren't paying them.

If I were buying a house today, we would do the homework again but then arrange the showings ourself by calling the listing agent directly. No way I'd pay a 3% fee on a $500k to $1M house just for arranging a showing.

This is good. 6% baked-in RE commissions were a racket sustained through a monopoly approach. Going forward commissions will be earned on a value-added basis.

Hint: it won't be 6%
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93MarineHorn
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12:18p, 3/27/24
Quote:
4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 18%-19% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.
I'll wager that a lot of FSBO deals are done between friends/family and that will skew the overall sale price average much lower. I sold (FSBO) my house in Round Rock to my brother for less than market value, for example.
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Logos Stick
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In reply to johnnyblaze36 • 12:19p, 3/27/24
johnnyblaze36 said:
The fees have never been "fixed" and the settlement hasn't even been approved by the judge yet. HTH.

So if they are not fixed, then why the anxiety by the agents over this?
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StandUpforAmerica
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In reply to aggiez03 • 12:20p, 3/27/24
aggiez03 said:
When houses cost $80-$150K, then 6% commissions made sense.

When houses cost $500k+, $30K is ridiculous for a single listing, I don't care how many times it is split.

If the average realtor makes 2%, that is $10,000. If they sell one house a month, they are making a good living.

My BIL in Katy sold his house in 1 day and had 3-4 offers. What did the realtor actually do?

Especially in new construction, the realtor drives the client around to look at 3 neighborhoods to visit showcase homes and then collect 3% commission for a single day of driving and 30 mins at closing.

I told my realtor friend about 6-7 years ago that with everything going online, that the days of 6% commissions are going away. Not soon after you had OpenDoor and places like that start setting up shop and doing it for half the price.

They should have adjusted down when their jobs got easier and the prices went up, but they were content staying at 6% and let competitors come in.
Not always true. My neighbor used one of OpenDoor competitors when they sold their house, and they were charged 7% for the convenience. Now did they make a bad choice using them... that's debatable.
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Tex117
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In reply to Houston Lee • 12:21p, 3/27/24
AG
Houston Lee said:
befitter said:
johnnyblaze36 said:
befitter said:
Typically the buyers agent makes 3% and the sellers agent makes 3%. Now...the buyers agent is no longer a part of that deal meaning the buyer is on their own with no representation....because why would an agent want to work for a buyer if they are not going to make a dime.

Good luck with that buyers.

I am not a real estate agent.
This couldn't be more inaccurate. The amount of fake news surrounding this topic is wild but I guess that's to be expected with all of the clickbait headlines circulating out there.
How is it not accurate?
-6% commissions (3% for Sellers Agent and 3% for Buyers Agent) is still used today. The NAR agreement has not yet been approved. Commissions have always been negotiable. Nothing has changed.

1) Buyers Agents are still being used and still will be used. Buyers Representation Agreements have already been in place for years. The only change is that a buyer will have to sign one BEFORE the agent can show them the property.

2) The big change is that the MLS (Multiple Listing Service) will no longer display/advertise any information on their website about how much commission listing and buyer agents are making for any particular property. That information can been placed anywhere on other webpages or advertisements, just not on the MLS website.

3) You are free (and always have been) to try and negotiate the commissions paid. There are plenty of "Discount Brokers" out there that will do things for less and thus offer less services and less support. You get what you pay for...

4) If you don't want to mess with a Realtor when you sell your house, you have always been able to do FSBO (For sale by owner). Statistics show that FBSO homes typically sell for 23% LESS than similar properties that were properly marketed and exposed by a licensed Realtor.



Quote:
For Sale By Owner (FSBO) Statistics
  • FSBOs accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
  • FSBO methods used to market home:
    • Friends, relatives, or neighbors: 20%
    • Yard sign: 19%
    • Third party aggregator: 14%
    • Social networking websites: n/a
    • For-sale-by-owner website: 5%
    • Open house: 7%
    • Online classified ads: 4%
    • Multiple Listing Service (MLS) Website: 5%
    • Other website with real estate listings: 1%
    • Video hosting websites: 1%
  • Most difficult tasks for FSBO sellers:
    • Preparing/fixing up home for sale: 4%
    • Getting the right price: 15%
    • Understanding and performing paperwork: 7%
    • Selling within the planned length of time: 7%
    • Having enough time to devote to all aspects of the sale: 4%
    • Attracting potential buyers: 4%
    • Helping buyers obtain financing: 5%



Blah blah. if this were true (That the commissions were "always negotiable", then there wouldn't have been these court cases and a settlement). A court literally found "conspiracy to keep commissions high."

Defend all you want, but change is coming. I have no idea the outcome, but change is coming.
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StandUpforAmerica
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In reply to fc2112 • 12:22p, 3/27/24
fc2112 said:
Kinda funny seeing all these agents saying 6% was "always negotiable".

Sure never heard anyone coming out of the closet to say that before this case was settled.
You probably didn't buy or sell many homes. It has always been negotiable... especially if an agent is selling their house and helping them buy another one.
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