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Warren Buffett’s Perspective: Real Estate Agent Commission Structure “Has Worked Out Very Well”

At Berkshire Hathaway’s annual shareholder meeting, Warren Buffett and Greg Abel, CEO of Berkshire Hathaway Energy, weighed in on the commission lawsuits and the recent settlement announced by HomeServices of America.

Abel highlighted the industry’s impending transitions due to settlements, noting that major players, including the National Association of Realtors, settled for over $400 million.

Despite these changes, Abel emphasized the enduring importance of real estate agents in transactions, citing their counseling guidance as pivotal.

Regarding HomeServices of America’s responsibility for the settlement payment, Abel assured stakeholders of the firm’s capability to fulfill this obligation.

Buffett delegated settlement details to Abel, expressing satisfaction with the process. Reflecting on the efficacy of the commission structure, Buffett acknowledged its success, citing his long-standing observation of the real estate system.

“People do negotiate down commissions to some extent, but I can tell you, I’ve looked at the figures and I think the system has really worked out very well,” Buffett told shareholders.

While acknowledging the potential impact of negotiations on commission structures, Buffett expressed doubt about the possibility of a superior alternative.

Buffett disclosed his reluctance to negotiate down agent commissions, underscoring his trust in their value even in high-value transactions, such as his last home sale exceeding $7 million.

Overall, Buffett and Abel’s remarks underscored their confidence in the enduring role of real estate agents amidst industry changes and settlements.

It would be my honor to step into the role of your real estate agent for buying, selling, and/or investing in Florida real estate.

As always, Call/Text me directly at (561) 644-0578. It would be my absolutely pleasure to assist you.

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Christie Di Lemme
Florida Homes Realty & Mortgage

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