The Jon Sanchez Show
08/08- How the new real estate agent commissions rules will work
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How you doing, Big C? I'm doing fantastic. How are you? Fantastic. Fantastic. Also, thank you for asking Dwight Millard of Guild Mortgage. How are you, my man? You know, you know, John, you smile like Brown. So you know how this was going for the last few days on this, you know, we just can't get on the same page. It's Tuesday, right? It's Tuesday and last week, and it's all been just, you know, hard to talk about. Well, I'm sorry, but it's not that bad, though. I saw what your 30 year mortgage did. It's not. Yeah, you've been through a lot worse on. But I think everybody was counting on, you know, and we say it's an anomaly that day, you know, they just saw, you know, the bond market just rallied. And I think we've getting most of it back, you know, which is unfortunate. So we'll see. But you're right. We're still in the mid sixes that we'll talk about. So absolutely, absolutely. I'm out frowning that bad. How's that? Hey, you're below seven. You can't frown, man. You can't frown. That's right. Amen to that. Yeah, that's right. That's right. Well, as Dwight mentioned, you know, it was an interesting day today. Don't you agree, Corey? I mean, you followed the weekly initial claims numbers like I do. And, you know, it was really a bizarre day, guys. I mean, I have to say, so, you know, this morning, let's go back to this morning and that kind of built on today. So, you know, if you listen to the show each and every day, you know that every Thursday we have the initial claims and the continuing claims. And if you're not familiar with those terms or those reports, they're really simple. The initial claims report, again, every Thursday at five, 30, we get it. The initial claims tells us the number of first-time filing for state unemployment benefit in each state, right, to give you an aggregate number. And then we get continuing claims, which continuing claims, just as the name says, are people that are continuing to collect this state unemployment benefit. So, to be honest with you, 99.9% of the time, Wall Street really doesn't pay a lot of attention, unless it's just a big move. But, again, these are weekly numbers. So, you don't get a dramatic. What you look for more is a trend. Are we seeing a trend with the initial claims, you know, increasing, meaning more people are out of work and they're filing for the state unemployment benefit or vice versa? So, you know, I'll just say in the last, gosh, as long as I can remember, the last year or so, again, we really don't pay a significant amount of attention. There's a lot more important reports that we look at. But here we go. You know, let's go back to last Friday, right, 114,000 jobs created. We keep talking about this number. So, we're very concerned about that on Friday, so we didn't do well on the market on Friday, sure as heck didn't do good on Monday when the global selloff happened. And now where everyone is saying, "Oh, my goodness, you know, look at the number of people, just not as many getting a job." So, today, we get just the opposite. We get the initial claims number, showed a decrease in state filings of 17,000, bringing the number to 233,000. So, forget about the 17,000, you know, decrease for the week. Look at the 233. That, by all standards, is a, from a historical basis, is a really, you know, normal number, right? It's nothing too extreme either up or down. But for some reason, every news agency, every newswire, every market strategist that I saw interviewed on CNBC, and I'm sure you saw the same thing, Corey. Oh, my God, this market's rallying because we got 17,000 fewer jobs on the initial claims. I'm like, "Are you kidding me? You're using that as the excuse that the market rallied like I did?" You agree with me, Corey, didn't you think that was so ridiculous to hear that over and over today? I agree with you 100%. But again, there's something to put on. Yeah, exactly. That's about what it was. Yeah, yeah, I know, I know. And so, again, I'm glad you agreed with me on that one. But that, really, folks, was the number one reason that strategists were saying the market rallied like it did. I think it rallied simply because the worst is over, right? We got the shock on, like I said, on Monday with the unwinding of the carry trade, the Japanese market falling, next day, the Japanese market rebounds, and so on and so forth. But even though we got this nice rally today, we're still kind of looking at our chops as far as, or I should say, looking at the wounds, as far as the damage for the week. I mean, here we go coming into tomorrow, and we're still down pretty significantly for the week. S&P is down 2.34%. Dows down 2.23, NASDAQ down 3.11, and the Russell 2000, lower by 4.65. So we put a dent into it today, but again, we've got a ways to go. So maybe if we can get another rally like today, we'd be lucky to end the week in somewhat of a flat fashion. But bottom line, I don't care what the reason was. We'll never know exactly all we can do is speculate. But whatever it was, I'm grateful for it because it made our assets and our management rise, and I know you made money today also. So that's all I care about. So it was a good rally today, and we'll give you all the details in a moment. But first, let's lay out what we have lined up. Corey, it looks like the inevitable time is coming in a very short period of time. The day that many real estate professionals have been dreading, and I've been having discussions with some friends of mine here in Southern California that are in the industry, and they're like, just like you, it's like not really all that concerned about it. Unlike with the news headlines, and again, I sent you guys a copy of the LA Times indicating what a big scenario this is. What we're going to be talking about after I do the stock market recap with Corey and Dwight is the following. So on August the 17th, so here in just a week or so, the real estate industry is going to undergo what we're calling a significant change when the new real estate commission rules take effect. Now, as we've discussed on again, off again, again, details have been unfolding for many, many months. What we're going to discuss tonight is this, as a buyer, you are going to be responsible for paying a commission to your agent. Well, tonight we're going to be discussing with these two gentlemen, we're going to basically highlight how this new rule is going to work and the future impact on buyers and sellers as well as agents. And Corey, you know, I know this is again something that you've been so wonderful to talk about. You know, again, ever since the NARA lawsuit was announced, the settlement was announced. But before I get to the stock market side, what's the chatter on the street among your cohorts out there? Is everybody terrified of this? Is everybody like, no big deal? What's kind of the pulse out there? It depends, you know, I'm just as far as people within the industry. I think it depends on where you're at in the industry, John. I've literally given zero thought to this period until I saw the show to you this morning. I hadn't even crossed my mind. Sorry. And, you know, but I talked to people that are scared to death and not to despair anything, but if you've got work to do and you're busy, you concentrate on your work and take your existing clients and we'll deal with the punches as they come. If you're just sitting around and have nothing to do, then you're going to worry about these things, but it really won't affect you because you're not doing much anyway. And again, I'm not trying to be, you know, some of the jerk would be facetious, but that's kind of what I'm seeing in the different trenches is, you know, I don't think there's going to be much change. We'll get into the details and mark them in this. This profession kind of figures its way through there. It's not going to have the impact that all these Harvard educated attorneys and news people seem to think it is and we're just going to keep rolling through. Absolutely. Well, folks, as you will learn when we get into this in a few moments, we've all known this when we buy or sell our property, we know that the seller is the one that pays the commission. Let's just use the kind of the normal that most of us are accustomed to, which is the 6%, right? So I'm going to make the numbers real simple. Let's say you sell a house for $100,000 and, you know, 6% is $6,000, so the selling agent gets half of that and the buying agent gets half of that. Well, that's gone by the wayside is Corey will highlight in, again, the lawsuit and what's going to happen in real life. The big issue that no one knows is, of course, the buyer is now responsible for paying the commission. So is the buyer going to be knocking on the door of the seller and say, "Hey, you know what? Please, like old times, can you pay the commission?" If the seller says, "Hmm, I don't think so," then guess what? The buyer is going to come out of pocket with this. And one thing I want to really get out of you, Dwight, is the lender and the disperser of funds is how does this impact the closing statement and how are you going to show that on and on and on. So I have a lot of questions, but Corey, it's a breath of fresh air to hear you feel confident about this. I wholeheartedly agree. Our industry, Dwight's industry, we've all gone through major, major changes over the years and you're absolutely right. We just focus on the reason that we exist in our industry, which is our incredible clients. Everything eventually works out. We always find things that we need to adapt to, but I'm really happy to hear you saying that. So I'm anxious to kind of find the latest details and, again, educate everybody on what they can expect here on August the 17th, right around the corner. Now, with that said, let's get down to the stock market. I'm sorry, Corey, do you have something to say? No, I'm just going to say, absolutely. Okay, great, great. All right, let's get down to the stock market side of things today. Like I said, no major news behind this other than for those that believe that the 17,000 pullback in the initial claims was the reason behind the rally. But what a rally it was, 683 point gain on the Dow, 1.76%, closing at 39,446. Nasdaq rose 464 points, 2.87%, closing at 16,660. And the S&P 500 gaining 120 points or 2.3%, closing at 5,319. And the Russell 2008 2.4% gain, you know, right in there's the second best performer of the four major indices. So it was strength right across the board. All of the sectors, the 11 sectors of the S&P 500 made money today. As we'll touch on when we come back from the break, we had some great earnings numbers out of Lilly, up $73.17 for that pharmaceutical company, a 9.5% gain to 845.31. But again, guys, the strength was this right across the board. And we know that again from what I just said, the 11 sectors of the S&P 500 making money. So just an incredible day. And like I said, I wish I could say, this was the reason that the market rallied, but there really was it. Could it be short cover rally? Could it be a number of different factors? Time will only tell. But we'll come back and touch on it just a bit more. And then I want to get an early start in this real estate topic. Let us turn it over to Kristin Snow. Welcome back to the John Sanchez Show on News Talk 780-KOH, with Dwight Millard of Gil Mortgage, Corey Edge of Edge Realty. Once again, we had a heck of a rally today. 683 point gain on the Dow, 1.76%, now as that gained 464, 2.87%, and 120 point gain on the S&P 500, finishing the day. Up 2.3%. All right, let's get to the commodity side, and then we're going to get to our real estate topic. Oil today, strong, 1.3% gain, 76.19 a barrel. Gold, strong, $30.90 increase, $2,463.30 an ounce. And then we turn it over to Mr. Millard's world, the world of mortgage rates, i.e. driven by the bond market. 10-year Treasury today, Dwight, 3 basis point increase. Hit the 4% mark right on the news. How do we do on the 30-year, according to mortgage news daily? Yeah, so according to mortgage news daily, John, remember back on Tuesday, I think we were 6.3, we're now 6.63, 5 basis point increase from yesterday. So, you know, as you said, not bad considering what we've seen for almost a better part of what a year, year and a half, but people were counting on those rates going down. Everybody died coming to contact. I hear rates are down. I hear rates as well. Yeah, they were. And now they've got so what goes down on the road. Yeah, yeah. And it's that fast. And it's unfortunate because that's not typically how, you know, the interest rate bond market works. You know, if you don't like it today, you completely lost it tomorrow, but it's been some significant swings. It's been some significant. I mean, the mortgage backsecures are changing are actually worse scenarios than the, you know, than your tenure. So they're getting beat up a little bit more than the pressure. Let me ask this question of you and Corey, Dwight. For those, again, that may be new to the show since we changed our time. Dwight, how many years, once again, have you been a mortgage broker/banker? 485. So coming on 40 years. 40 years. All right. Just learning the business. Yeah. Corey, same question to you. How many years have you been a real estate broker? I've been in real estate 28, pushing 29. There we go. Okay. I've been doing my, my craft for 35 years. So we got a little bit of gray hair between all of us, a little bit of experience. And I'm bringing this up. Dwight, have you ever, in your 40 year history of being in this business, ever seen this bond market exclusive of shock and awe type of this, right? The COVID and so on and so forth. Have you ever seen mortgage rates so volatile as we are facing right now? No, we've been talking about it. It's become so news dependent, you know, and so you don't know what you're waking up to the headline that day. And no, they're very, very sensitive to Wall Street. And you know, you've said it. What do you call it? A temper tantrum? Yeah, taper tantrum. Yeah. It's really is unfortunate because it, you know, I think they're signaling to the feds in Jerome Powell. Hey, we don't like this, but then it affects everybody. Then you start, it's very difficult to quote somebody at 10 o'clock and then at two o'clock. Yes, exactly. You're seeing that more frequent than you've ever seen it. Folks, keep in mind, again, if you're new to the show, new to the bond market, so on and so forth, I want to just back up one step because I think this is very important and the reason I'm asking this question of the guys. And that is, remember folks, if you try to understand mortgage rates, let's say you're shopping around right now, you're waiting for that opportune time to call Dwight or your favorite mortgage lender to lock in. So keep this in mind. We got to go back. The bond market drives what happens with your mortgage rates, right? In the easiest way to understand this, these guys have heard me say this a million times, so I'm going to do it again. Visualize a teeter totter. We all know playing on teeter totter is a child. One side goes up, the other side goes down. Left side of the teeter totter, visualize a thousand dollars. That's a typical price of a bond. Right side of the teeter totter, visualize the yield that bond pays you as an investor. Let's say it's 3%, right? Every day, minute by minute, interest rates are changing due to the bond traders. The bond traders will be buying and selling bonds based upon economic data, their forecast of where the economy is going, et cetera. That's what Dwight is referring to. So when investors by nature or bond traders by nature get nervous about the stock market about the economy, what do they do? They buy bonds, right? Bonds knock on wood. If we're talking government bonds, which I am, they've never -- governments never defaulted on a bond interest payment before. So as you hear me say on the stock updates, they flock to the safe haven of the bond market. So they come in and they buy, that left side of the teeter totter goes up, the right side goes down. That's when Dwight smiles. Now, the other thing that we have to look at is there's only so much capital floating around out there. Bond market is so much larger than the stock market. People don't realize that also. It's a very influential component of our economy. Now, like a day like today, the reason that Dwight doesn't have a smile but kind of a little bit of a frown on is because people got excited about the stock market going up, right? Again, Dow up 683. So what do they do? They call it their broker and go, "Hey, you know what? Remember earlier in the week when I was really nervous about the market and has sold off and I told you to buy me a bunch of bonds? I forget that. Sell those bonds." So they tell their brokers, sell the bonds, and then guess what happens? Bond prices go down, that left side of the teeter totter, the right side goes up, right? They yield. And then Dwight, take it from there as far as what mortgage companies do when we're talking about that scenario. Well, we talked about repricing. Yeah, you'll see repricing. So you'll come out with a price in the morning based upon the market. And throughout the day, you used to never hear of repricing. You know what I mean? But now it's such a common term. They'll reprice the investors, the agencies, the aggregates. They'll all reprice as they see the market deteriorate or get better. The problem is better. They don't jump on it as quick as they do on a deterioration, right? So if it's going down, they're quick to pull that trigger and reprice. But John, I mean, I used to, you know, the market movements you see now would usually take a week or two that you can sometimes see in a day. I remember getting that old fax paper, remember, what they call it, similarly, or whatever it was. Yep, yeah, thanks. And we would get, you know, we had a, we subscribed to a service that would tell us what the market faced out that day, plus two or three or whatever. And, you know, now it's just so, so fluid. And so everybody's just got one finger on the button, right, up and down. And that makes it difficult for the consumer because you've always said uncertainty generates, you know, just the, you know, the uncertainty of the market. You know, and if you call me a 10 and a two on different, it's just really difficult to try to explain to people. Right, and that's the point I wanted to drive home for everybody that maybe your first time buyer, maybe you've been out of the real estate market. And, you know, years ago when you bought your home and your real estate or your mortgage broker, you know, it was nice and calm then in the mortgage world as far as rates and things. It's a different world, folks. It is a different world. It's almost like trying to time. When am I going to buy my stock, right, Corey, or when am I going to sell my stock? It's almost like you have to be a market timer, which is so difficult. So the bottom line is don't get mad at your mortgage professional again to Dwight's point. If he or she quotes you a certain rate at 10 o'clock in the morning and then you go, you know what, I'm going to go talk to my wife or I'm going to go talk to my husband. And you call back, you know, at two o'clock and the mortgage professional says, oh, you know what, I quoted you this, but unfortunately it's gone up. Well, wait a minute, you son of a gun, you mean you're making more money off of me, right, Dwight? That's what people always think. Oh, you're making more money? No, you have nothing to do with it. You're being priced by what's going on in the bond market, the bond market is pricing, usually what's going on in the economy and the stock market. So it's all big, one happy world. You know, John, and here's an important factor to put in this. You know, because of the trade rule that we got in 2015, it doesn't benefit me to quote you something higher than what I have because you cannot make over it anymore. Remember, in the old days, people would, you know, make a premium, they'd quote something and let the rate flow down or whatever, you can't do that now. So it does no good for me to quote or any mortgage professional to quote higher than what the market is. That would usually be in squeeze to go better. So it really, when we quote it, it happened, right? I mean, I don't have a choice. It happened. And that's what I've got to quote. To your point though, you're seeing more of that in her day throughout the day, market changes, market reprices for better or worse, more frequent than I've ever seen. This has been a very volatile year. Yes, indeed. Yes, indeed. All right. Excellent explanation to excellent explanation. All right, Mr. Edge, you're going to be up and be the star of the show. When we come back, once again, we're going to talk about this major change going on in the world of real estate commissions, effective August the 17th. Corey's going to give us all the details. Explain how this whole program is going to work. But first, let's turn it over to my dear friend, Greg Neff. He's got news, traffic and weather. Hey, Greg. Welcome back to the John Sanchez Show on new stock 780K, which with Corey edge of edge, really the end, Dwight Millard of Guild Mortgage. Once again, a nice rally on the market, 683 gain on the Dow, Nasdaq rose 464, S&P up 120. And once again, as a reminder, you mentioned the word podcast on that last little segment there. Don't forget, if you missed any of our shows this week or at any time, we have hundreds of podcasts available. It's your favorite podcast distributor, iTunes, Spotify, et cetera, in case you missed anything or you want to hear it again, it's all out there for you. Alright, we're going to move into our real estate topic as we've been discussing. Major significant change is going to be occurring on the way commissions are paid to professionals like Corey on August the 17th, right around the corner. Okay, Corey, I'm going to ask a favor of you, and I should have asked you privately, but I'm just going to do it publicly here. We don't hold anything back. I want you, if you could, somewhat give me abbreviated answers because I have a ton of questions that I'm hearing from people. And then, therefore, I want to make sure that we get in as many as we possibly can. Okay, that deal? I'll do one word answer. Not that short, not that short. Alright, and especially you, Mallard, you're the one that can go a long time. So you behave yourself tonight. Dwight's got to leave at the last segment anyway, so we're going to get Dwight in the conversation. Okay, so Corey, unless if you don't mind, I'm just going to summarize. So this lawsuit happened from the, or it was, you know, what you mentioned was the, the NARA lawsuit is going to get into you, you know, more details than myself. So let's start with that. What happened? How does whole thing come about? Much of the boil is down real quick. Historically, the commissions have always been paid by the seller. They've always been negotiable. Within that commission, just like you mentioned in the beginning, there's usually a set rate that they've agreed on and part of that will go to pay or compensate the buyer broker for bringing the buyer. So it's always been not saying it's perfect, but that's how it was. Yes. There was a lawsuit brought, I believe, in Missouri, a year and a half, two years ago from a property seller, who did not think he should have to pay the commission, which is his product. But he also thought that nobody in America should have to pay the commission, which go figure. So he hired some big mouth attorney. They won in the court. They won their case. And I'm really abbreviated as a next, I guess, is that Saturday or Sunday, the 17th. When you go to the MLS as an agent, or I think people can see it on their own when they get in their own functions. There will no longer be what we call an offer of compensation on there. So there will no longer be a way for the seller to tell the world what they're willing to pay. Or a buyer broker commission, at least as far as the multiple listing services concerned. You know, Corey, I'm glad you brought that up because we the public, to be also with you until the, we've had this discussion a few times on the show, not to the depth we're doing tonight. I was not aware that in the MLS that you as the broker, because Corey is a broker of edge, really, that you would have to, if you're listening to home, that you would do that offer of compensation. I never knew that was there. I mean, I've seen it in, you know, my real estate paperwork, but I did not know that that was, you know, I'll just say something publicly made available to a buyer's agent out there. I did not know that. Yeah, and it was mandated, or it was mandated in the National Association of Realtor Rules, that you had to have this offer of compensation. And it sounds like, oh, sounds like everybody's just trading between each other. I know really what it was there for us to make sure that people didn't take listings, not disseminate the information to anybody and keep it to themselves and try to collect the whole commission. So they made this rule that says, once you get a listing, you have to put it in the system, you have to let every broker on that system know about it. And you have to offer some sort of compensation. And the goal was to get your property in front of as many people as possible. And I think that it's been a good system. As a broker, how would you determine, right? We've all been born and raised, you know, 5% typical commission on a, you know, on a, I'll call it a relatively expensive home, 6% on pretty much everything else. That's what, again, the public has been so knowledgeable about. How would you, basic question, how would you, how would you, as a broker, decide, I'm going to do five, I'm going to do six to, you know, obviously the split is what I'm referring to. How do you determine that? Is it based upon what your client's willing to do? If I go meet with you, if you want to list your house, we're going to sit down. We're going to go through the details of how you know this or that the other. You always get the question of, okay, what's the commission? And it's a standard answer of, I typically charge my six, my five, my four. And then you just start negotiating that way. Now, within that negotiation, John, typically that commission is split, typically, but that's negotiable too. So the person can always say, and I had clients do it. So all these news reports that say everything's set in stone and you have not said, that's all it be. Yes, that is not the case. So at any point, any person listing selling a house could say, listen, I think you're a fantastic guy. I'm going to go ahead and pay you two and a half percent. But I don't like anybody else in this town. So I only want to offer one percent. And if I think that I can get the job done and by only offering that, I agree. I'll say, great. That sounds like a deal. Let's try it. Okay. What typically happens in the real world, Corey, under that scenario where you're making two and a half, the buying agent was going to make one and a half, what happens in the real world? Do you as a broker kind of get blackballed by everybody else out there saying, Corey, just a cheap son of a gun because he's making two and a half and he only wants to pay one and a half to everybody else, even though it's not you, it's your client making that decision? No, because here's the thing that people don't realize how these industries have changed. When I got into it, when all three of us, you know, back in our younger years, when I got into it, we didn't have the computers. We didn't have the MLS. We had a book, right? Let's go through the book. So the realtors had all of the information. If you were a buyer, I would call you daily every other day, every week, whatever it was, to let you know about new listings that are popped on the market because you haven't really no other easy way to get to the information. Now the buyers have all of the information. They see everything. It's the typical way it happens now is if you're a buyer, you're looking at stuff every morning and you're going to call me and say, hey, I want to see property A, B, and C. I'd like to see them on Tuesday at five o'clock if that works. And I say, great. I'm going to set up the appointments and I'll meet you now, whichever property we start at. It doesn't, in the normal, listen, there's bad apples in every industry, but in the normal conversations, the buy side commission never comes up. So if I get a client that is a buyer and they just really love this house and the person's often 1%, it's part of the business. It's 1%. The other part of this rule, this everybody's aware, is as, you know, again, this is under the current rules, which will change on the 17th. I couldn't go in there. Let's say you're my buyer client. They're offering 1%. I can't go in there and ask for more than that because that is what has been offered now. Thank you. Yeah. Even though, let's say Dwight was a real estate agent, which he's not, you couldn't go to, do I say, hey, you type son of a gun, you're only offering one. Hey, you know, kick me back another half a percent or another 1%. That is highly illegal, correct? It's, it's not illegal. I've had it happen a few times over the years. I've been doing this a long time. And it's actually good where we would let the deal close because you don't want to do anything that hinders your client. Right. Of course. The listings I would say, sure, whatever you need, you want to be a, you know what, then we're just going to close the deal. Then you would go to the local board afterwards and they would go after the agent and you would get the compensation adjusted to where it should have been. So they're in help there. Okay. Okay. Corey, I'm going to pause on you for a second since Dwight has to, has to bow out here in a few minutes. So Dwight, here's my burning question. You are the lender. Okay. Let's say that I'm the buying agent. Corey is the selling agent. Corey says, you know, any selling, any buying agent, I'll pay you 1%. I'm making 2% as the listing agent. Okay. So a total of 3% is going to cost the seller. I'm coming. You're my client. Dwight, you're coming into this. You know, that 1% or actually let me back up. Corey's buyer seller says, no, I'm only going to pay you Corey 2%. Forget the buyer out there. Let those son of a guns figure this out on their own. Right. So as your agent, you and I sit down in the very beginning and go, you know, Dwight, I'm going to spend a lot of time with you. Right. I give you my proposition value and this is how I'm going to do all the things I'm going to do for an ego. Cool, John. You're a great guy. You're knowledgeable. I'm going to pay you whether it's a percentage or a dollar amount. Just to say that dollar amount, you've agreed to pay me $5,000. However, you're broke, right? You're scraping every dime you can to buy this house. Will you, as the lender, finance that $5,000? Well, absolutely not. Absolutely not. Digs into their down payment. John, here's, here's, I'm going to agree with Corey. I think this is a big lot about nothing personally because I think what you're going to see is you're going to, you're not going to see a lot of buyer paid commissions. I just don't see it because that's sort of the pressure on additional funds and pressure on debt to income ratios, right? Because it, so it's going to create problems that already exist. So I think to your point, I think that there is the possibility, but I think smart listing agents, people have been doing it. Understand if you're going to go up there and zero, I don't know how much we're going to be able to get here. And so, but what I did find out, John, is that FHA has already come out and said that if you, if the, if the seller is going to pay it, whatever it, we know it's not going to be considered a concession. So that was, Corey and I had an earlier conversation. Would this be a concession now? No, it's just as we normally see it right now. If they're going to pay 2% to the buyer's agent, then it's 2% like we normally see it right now. It does not go under a concession about or anything, which is fantastic news because that would really be a problem. If you had to put that in your concession amount, then now that just puts pressure on the seller being able to do other things for that buyer. So I think you're going to see more and more. This is going to take time to unfold, but I think you're going to see more and more seller paid buyer, you know, programs out there that we already do right now. But you're going to, you're going to have that, that, that seller, and Corey now we'll talk about this when we come out. I know it, guys. You're going to have that seller says, nope, I'm not paying anything. All right, I'm going to pay Corey because he's a great guy, but I'm not paying that buyer's agent. I don't know him or her. And by gosh, you know, there's, I got 10 buyers waiting. I don't need to pay anybody, anything. My house is a great value. You know, I guess next time Dwight, we talk about this. I'd like to hear from you. Why can't this be finance? Obviously, it's got to be some regulatory issue. Why can't my, the fee that I've got to pay my agent? Why can't that be finance? But I'm sure it's going to be. John A might, that might, that might change somewhere. But the reason why somebody wouldn't do that, John, and Corey will talk about it, is it maybe allows you to lower your price by 2%, right? Yeah, a little more aggressive on yourself. Yeah, I'd like to have that. All right, buddy. All right, man. Well, listen, thanks, Dwight. Have a great evening. And again, Dwight's got to step aside to go to an event. But Corey and I will continue this discussion. Let's wrap it up with Kristin Snow, the right now at Traffic Center. Welcome back to the John Sanchez Show on News Talk 780KOH. All right, we're talking about this new commission situation, the structure. I guess it's a better word. Coming up for the real estate industry, August the 17th. But before we do, Mr. Edge, your phone number, sir. 673-6700. Beautiful. And of course, we had to say goodbye to Dwight. So he has phone number, of course, 775-240-2022. Okay, Corey, again, in my research, I picked up an article from the LA Times. And I'm very confused. And that's why I asked Dwight that question before he had to step out. So I'd like to get your opinion. Here's what the Times said. I'm going to read this little short paragraph. It says, "Several real estate agents also told the Times that many sellers will probably still agree to pay some or all commissions for buyer brokers." That's because the seller may be able to net a bigger profit if financing the commission allows a buyer to offer more for a home than someone paying their agent out of pocket. I've read this. I can't tell you how many times, and Dwight just said, "No, you can't finance the commission." Can you explain what the Times is talking about in this? Or are they wrong? I don't think they're wrong. It's all semantic, right? So you can't finance it because, remember, you've got to go through an appraisal. They're only lying on real property and start adding little fees and stuff here in there. Let's say the buyer owes their agent, and I'm just going to use a number $10,000. They can try to raise the price of the house by $10,000, get a $10,000 credit back. There will be a line item on the closing statement in the closed of escrow that the buyer owes their agent $10,000, and that $10,000 that came from a seller can go to pay that. So they think it's financed by a higher price, not in a roundabout way, if that makes sense. Okay. So this will praise them all. But then again, if you're talking a multi-million-dollar home and that scenario happens, guess what? That buyer is going to pay a higher capital gains. Well, correct. So two other important things down before we go. The other part of this new thing is coming to effect is buyers have to sign buyer agency agreements before the agent will show them a home. Meaning if you just want to go pop into a house, you're going to be signing a contract before somebody's going to let you in. So you can imagine all the problems that are going to come about with that. Oh, yeah. Definitely. Well, Corey, thanks so much for explaining this. I know it's a very complicated, lengthy subject. We're probably going to do the show for three hours, but you've got to keep us updated on things. All right. Sure. Absolutely. We'll do it again next week. Absolutely. God bless. Have a great night, everybody. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taking a specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting John at Sanchezwealthmanagement.com or 775-801-01. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker dealer and investment advisor. Member FINRA SIPC, securities only offered in states John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. Dwight Millard is not associated with Sanchez Wealth Management LLC or independent financial group LLC. Dwight Millard, co-host, NMLS number 241259. Guild Mortgage Company Equal Housing Opportunity. NMLS number 3274. Dwight Millard, NMLS number 241259. Envy Mortgage Company number 1141. Branch address 5370. Kitzley Lane Suite 101 and 103 Reno, Nevada 89511. Phone number 9723812410. The information provided today is for educational purposes only. The position strategies or opinions of the show do not necessarily represent the position strategies or opinions of Guild Mortgage Company or its affiliates. All information loan programs, interest rates, terms and conditions are subject to change without notice. Guild Mortgage offers home loan financing only. 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