David Fingerhut

🏙️ Commercial Real Estate Broker, 🏄‍♂️ Surfer, 🏂 Snowboarder, ✈️ Traveler, 💰Investor, 🚴‍♂️ Biker

[Brandon Avedikian @bavedikian]

I continue to hear smart people say the NAR settlement is going to reduce residential real estate commissions.

They are all dead wrong.

Discount brokerages have been around for a long time. People are acting like this settlement all of a sudden gives discount brokerages permission to enter the market.

They’ve always had permission to enter the market, and many have.

And they have all failed.

Discount brokerages have never worked at scale for one simple reason:

In order for a business to scale, it has to make money.

Sure, a business can raise money, spend on marketing, and tell a story.

But at some point, it either makes money or it dies.

The low interest rate environment we were in for so many years provided the perfect environment for discount brokerages to scale.

The ZIRP days are over.

If discount brokerages couldn’t figure it out during ZIRP, they most certainly are not going to be able to figure it out now.

As it turns out, guiding people through real estate transactions is hard work.

If you want the assistance of someone that is competent, you will have to pay them. Discount brokerages simply cannot attract or retain competent professionals.

People act like the real estate brokerage business is some glorious, ridiculously high margin business.

If you want to learn about high margin businesses, take a look at Google, Meta, Apple, Microsoft, NVIDIA, etc.

Real estate brokerage is not a high margin business.

It is a difficult business where real money can only be made at scale and by being excellent.

Make working for a discount integral to your business model, and you will not survive. This has been proven time and time again.

The idea that real estate brokerages and agents are going to start working for significantly less is delusional.

Look at the legal industry. Law firms could discount their fees from $1,000 an hour to $200 per hour, drastically reducing the income potential of attorneys and degrading the service clients can expect in the process.

But law firms do not want to do that. And so they won’t.

Expect the same behavior from the real estate brokerage industry.

[David Fingerhut @Fingerhut]

@bavedikian Well F’n said. Great explanation of cutting through the B.S. that has been depicted throughout the media.

[David Fingerhut @Fingerhut]

@MTSpeigle @Bubbleinfo Again - most of this is a big fat nothingburger IMO. I do commercial. I’ve sold resi in the way past and have ALWAYS done a buyer agency agreement. The fact that buyer agents don’t is so F’n stupid. But again - just my opinion.

[David Fingerhut @Fingerhut]

@MTSpeigle How is this any different than what a seller could’ve done previously? If a seller didn’t want to pay the co-op, they didn’t have to. If a seller wanted to offer lower commissions they could’ve done that. Trying to understand this “settlement” and no one can explain it.

[David Fingerhut @Fingerhut]

@Fire5280 I’m 100% open to understanding how the industry will change. Please give me some details and examples - thanks!

[David Fingerhut @Fingerhut]

@Fire5280 @TheTrueFIREGuy The listing agent could have said that yesterday, last week or 10 years ago. Why didn’t they?

[David Fingerhut @Fingerhut]

@Fire5280 @TheTrueFIREGuy That won’t happen. The settlement changes zilch except that it makes buyer brokers call/text/email the listing broker and ask what the co-op is.

Wow - what a doozy this is going to be for residential brokers.

The narrative that many post is just wrong.

[David Fingerhut @Fingerhut]

This NAR settlement is the biggest joke.
This “settlement” won’t have ANY impact. The only thing now required is that buyer brokers will need to confirm the co-op by email/phone/text.

Real winner? Lawyers.

How am I wrong?

[David Fingerhut @Fingerhut]

@jimmymackin Incorrect. The real winners are the lawyers who are about to have a field day.

This “settlement” won’t have ANY impact on the resi industry. The only thing now required is that buyer brokers will need to confirm the co-op by email/phone/text.

[David Fingerhut @Fingerhut]

@melissasavenko No it won’t. This “settlement” won’t have ANY impact. The only thing now required is that buyer brokers will need to confirm the co-op by email/phone/text.

[David Fingerhut @Fingerhut]

@JTMartingCRE Would love to see this

[David Fingerhut @Fingerhut]

@capratecraig

[David Fingerhut @Fingerhut]

Just closed a deal where the seller got a higher price and quicker close because he offered seller financing at a sub 4%. If he didn’t offer seller financing I think he would have gotten about 65-70% of his asking price. Plus banks would have been involved…ew. 😂

[David Fingerhut @Fingerhut]

@MaxFisherCRE Just had lunch with a Title rep from a MASSIVE title company. They’re struggling hard right now.

[David Fingerhut @Fingerhut]

@TopherNOW What are the allowed uses of a property and how likely is a variance going to be approved from city council.

[David Fingerhut @Fingerhut]

@Wildlaw406 We repped an investor who did exactly that.

[CORealEstateBrokers @co_brokers]

#Daycare and #childcare properties are increasingly hard to find not to mention the fact that once you find one that could work, the plumbing seems to be the biggest challenge. We are listing a turn-key property in #Broomfield.

[David Fingerhut @Fingerhut]

Anyone else sporadically lose their CRE Listings on @MoodysAnalytics #Catylist?

[David Fingerhut @Fingerhut]

Just closed a pretty big deal. The property was on Crexi, Loopnet, CommercialExchange (Moody’s) & CommercialCafe.
After we closed today, I asked the buyer’s broker how they found us. She said “your sign”.

Don’t underestimate the power of a good real estate sign.
#retwit

[David Fingerhut @Fingerhut]

@skylarromines Post about the downsides of not having enough insurance. Give examples of how clients got f’d on a deal. It’s bad for the client but people will definitely consume the content. 🤷‍♂️