Episode Transcript
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(00:00):
For thirty five years, Cindy Stumpohas been a female home builder with a
passion for design, a mastery ofdetail, and a commitment to her crack.
With daughter Samantha Stumpo by her side, I don't need my whole family
on a date with me. That'sa good note. It's goddamn weird.
See. Stumpo Development is the onlysecond generation female construction company in the country.
You're crazy, You're a wacko,You're insane. I mean, it
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just doesn't end together. Cindy andSamantha welcome guests to explore the world of
construction, real estate, development,design and more. Unpredictable. Every time
I think I know what you want, you switch it out. But that's
what makes sure houses all your datediscuss anything that happens between the roof and
the foundation. Nothing is off limits. You truly do care about everybody.
She can yell, ATCHI can scream, but when you get her alone,
(00:43):
she's the best person on the planet. Cindy Stumpo is tough as nails and
welcome to Sindey Stumpo tough his nailson w b ZEENWS Radio ten thirty and
I'm here tonight with two special people, really two special people. I'm stuck
with both of my bosses. That'swhere she started with you. Mmm,
(01:07):
don't forget that. This is true. This is why I'm my own boss.
Now for both of you. What'syour name again? I don't know
who am I? I don't know. I'm looking at a blonde picture of
you. You're a brunette now inthe studio. You really need to get
over this. We gotta change yourhair from blonde. See see the picture.
That's the first thing I said,Sammy when I saw you. He
likes my hairdog she hates it.She's my blonde, my whole life.
Let her be Let her be her. Oh, I'm letting her be her.
And who are you? Michael?So? Okay, Michael, give
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a rundown? Who are you?I am the executive vice president of Gibson
Sotherby's International Reality Okay? How longyou have been a realtor? For?
Really? What? Almost forty years? Okay? I know the compound,
know the exact count. I've beenon here for thirty six. Stop saying
three seven years, thirty six years, thirty seven. It's not three seven
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years thirty seven. We're keeping itin thirty six years. It sounds better.
Don't you want to keep aging me? Well, if I have to
age, you have to age.What do you mean the daughter's prerogative?
Oh yeah, yeah, what doyou mean? I hear you all being
stepped over even though I can't seeyou. Snickers. Okay, Mike,
I want you to give a bioto the listeners of you. I started
in the industry in the early eighties. Uh you howled? It was twenty
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four, baby, baby. Myfirst few years, by coincidence, was
new development. It was the beginningof the condo conversion craze in the back
Bay, and so I started out. Is that the doc com bubble in
that area and era No, itwas eighty three eighty four. They started
to convert these brownstones in the city. And my first project was with the
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architect Xena Nemetz. Remember Zena camein in eighty nine. Yeah, Jim
Nemetz is a son. I rememberJim. Yeah, he's still he's still
hugely successful. So I did somecondo conversions for her, and then I
went on with the Planning Office forUrban Affairs to Catholic Church and did a
couple of schools in the North end. So my first three and a half
to four years was was new development, and then I got into general brokerage
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after that. And after that CharliePatsos with New Boston Properties, we teamed
up and opened a company together.He was the founder of what we now
know is furnished corporate rentals back inthe days. And then from a career
yeah yeah, and then found myway into general brokerage. My first partnership
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was with a company called Russ andVolpi the New Boston Properties, then out
on my own, and then nineyears ago I sold my company to Gibson
Cellby's. You're happy you did that, I did, Yeah, you were
happy to move on to a biggercompany. It turned me because you were
concierge type broker. Yeah. Ihad a very high end, boutique real
estate firm on Newbery Street for twentysix years. It's actually next to Sanse
for the whole time, on thecorner of Hereford Newbury Street. And I
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had taken the independent model as faras you could go. So I went
from being a very good local independentbroker to legitimately a global real estate advisor,
and it's allowed me to do dealsall over the world as a result
of having that affiliation. So yeah, so given the choice, it was
better to go with a bigger companythan State concierge. It's for you for
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me, But it was more aboutthe brand. I liked that brand.
I liked what Southeby's represented because itwas right in my luxury space as an
independent. And it's worked out.It's really worked out well. And you've
got to show meet a lot moreinteresting people. Yeah, other broke from
other places broke. My first year, I actually traveled the country and met,
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you know, the players from Manhattan, the players from Southeby's, players
from Manhattan and San Francisco, Miami. And then the second year, they
made me to what they call aSouthby's market leaders. That it's the top
fifty Southby's agents in the world.And that's that's gratulations. A group that
I'm in now, and boy,a bunch of smart people. Okay,
I've got some questions. I'm goingto come at you. Okay, Well,
what are some of the challenges facingreal estate today? In your opinion?
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Is this outside of the aniostm.Now we'll talk about just real estate,
then we'll go into the nar Well, there's too many to begin with
one point six million agents trying todo there's one point six million agents trying
to sell real estate right, yes, Massachusetts, no national. So the
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challenges that you're facing today with now, what is going to happen? First,
I'm trying to wrap my arms aroundthe new law and Michael and I
can't. That's number one. I'mtrying to decipher how the buyers burgers going.
Is it that the the travelocities ofthe world got with the travel agents?
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Is that the role we're going downis red finn and these companies trying
to take over your jobs. Explainto me and the listens and educate me
what's going to happen here. Well, in March fifteenth, the NAI National
Association of Realtves settle the lawsuit.That is just the start of all this
blowing right, it's and it's goingto bring too big change. Okay,
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let me stop you this. SoI really comprehend this. Why was NAR
sued? Well, it wasn't justNI, it was NI, it was
anywhere, it was Remax, itwas it was everybody, everybody, and
they have and so the NAR settledfor four hundred and eighteen million dollars.
Okay, okay, so they sellwhat was the lawsuit for, like,
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what was the reason to sue them? They alleged the planeiffs alleged that it
was price fixing where the buyer agencycompensation was published in RMLs, and they
felt that it was staring buyers agentsto more expensive properties that ultimately the cell
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is paid for, which I don'tnecessarily Wait a minute, So the they
feel the buyer's agent pushed their clientsinto more expensive properties based on what this
the mission amount was, is whathe's saying. Yeah, and it's so
hold on, let me get this. Say I'm a buyer, I'm looking
at a four thousand dollar home.When you push me you six? No,
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he's putt they're pushing you to wherethe commission the commission higher because the
commission Well, let me let metell you what, because a lot of
this is not going to make senseto you, and it doesn't make sense
to a lot of people as well. So the two the two basic changes,
uh that we can't now put thebuyer agency commission in our mls.
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But what what's how is that goingto change things? It's not. That's
number one. Number two, whichI agree with is buyer agents now have
to sign buyer agency contracts. Well, they should have all along. It's
no different than being a listing agent. Michael was it a one point you
decide whether you were a sellers brokeror a buiers broker When I first started
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and and uh, unfortunately, I'ma very I'm a very heavy listing agent.
And right, and that's really whereyou want to be, the buyer.
This ruling will make a listing agentstronger and it will put some challenges
on buyers agents. Okay, butthere was a time that you did sign
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something that you worked for the buyerand you worked for the seller. Correct,
well, you should have all alongnow now it's your requirement. But
a buyer I would make them signa buyer. Am I crazy? I
used to sign with Carol Brenis,who's my first real estate broker. Uh
started with my in my career.I had to sign the part that said
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I hired her as a buyer's agent. As a seller's agent, we're talking
about buyer. I was selling.It was my product sell and you're the
listing Yeah, you have that,you have the listing agent. Then remember
she was there's two sides to everyreal estate transaction. There's the listing side.
When Cindy Stepper was selling a house, you're retaining a listing agent.
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Carol would make me sign something thatsaid that made me agree that she is
my Cella's agent. That's a listingagent. We're talking about the bias age.
Wait every hold, I thought Ididn't realize I got to go to
break. I'm sitting stumbling and listenTough his Nails on WBZ news Radio ten
thirty and be right back, sponsoredby Pillow Windows of Boston, Next Day
Molding and Kennedy carp And I'm sidystumbling you listen Tough his Nails on WBZ
(09:43):
News Radio ten thirty. Hey Sammy, how are you doing over the honey?
Hey? Mom? How you doing? Long night tonight? Okay,
Michael, go back to what youwere saying. Let's go back to the
n R. I I'm sorry,SIRIH doesn't get that. I am so
sorry, folks, I will turnthat off, Michael. Siri doesn't understand
you that. It's okay, Siri. We don't understand either, so don't
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be confused. So the two fundamentalbusiness practices the changes in this settlement were
that we had to remove the buyeragent compensation in our mls, and we
had to require now that bias signedbuyer agency contracts. Good agents have been
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doing that all along, So that'snot going to really change with the agents
that are doing what they're supposed tobe doing. But as a seller's agent,
we're not talking about that. Holdon, hold on, do you
have to pay a buyers brocus andate their agent? Legally? I know
morally what you'll do, and you'llexplain that, but legally, do you
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have to pay the buyers broker acommission? Right? And that is a
great question. Legally, legally,no, you don't. So no buyers
brokers are going to bring you buyersthat's right. So what is this game?
But what I don't underin So whatif I sell as a sellers agent,
I charged five percent and I'm doingboth sides of the transaction. At
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that point, I deserve the fiveright. But now, Sammy, you've
got to have You've got to you'vegot to have your buyer sign a buyer
agency, and you've got to havethe buyer and seller agree to what they
call dual agency. Both have toagree. It has to be transparent.
But there's nothing, there's nothing wrong. Well, let me let me get
the misconsumptions and some deals that sheis the seller and the buyer for sure.
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She says a lot on a roadright after July, she's going to
need to sign buyer agent contracts withanybody on a we call it a direct
sale, but there'll be a dualagency. But if she's a seller it
she always seems to lately put outa bigger commission to the buyer. She
will smart, Yeah, she'll putthree percent out to the buyer. Yeah,
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and she moves that way, okay, and keep two percent staff move
that way. No, they'll blopit. They'll they'll just you'll just say
boom. A lot of my showsthat m have Frankie, have Frankie Nick
you I'm all right, listen.At the end of the day, she's
smart, she's less greedy, andshe moves more inventory. So now absolutely
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and advertise that once she gets onthe phone, call well, here's why
things going to happen. You canand you can tell me if I'm wrong.
The bigger brokers are all going tonetwork together like they do. Crucia
got this. George Sokus Bop bopbop bop anyway, correct, and you'll
all stay united. I think you'regoing to lose more than half your brokers
out there, I hope so well. You know the one point six million
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agents I told you about nationally correct, eight hundred thousand of them did less
than eight hundred thousand of them didless than two deals last year. And
that that's the crazy parts. Theeverybody thinks when you become a broke and
we talked about this earlier, thatyou're just gonna make noodles and noodles and
money and getting your license to becomea broker. That's the easy part,
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right. The hard part is nowgetting out there and hustling well. And
when Sammy passed her license, shewent to work for you to learn.
She was with you for the firstyear, year two, and then year
two and then I said, okay, Sammy, come with me. Now
you've got all the all the trainingfor Mike. Now come with me.
Let's open up your own and let'ssee what happens there. And the funniest
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thing, Mike, which we alllaugh at today, when she graduated school,
you know, all the big houseswere picking you up, and stupid
them not picking her up. Withher mother being a builder. That was
like the dumbest move right. Itwas like in pretty women like major sucking
up, right, they should bemajorly sucking up to her, but they
gave her the the hands out forwhatever reason. Look what happened there,
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Hello, shoved it right up there. Okay, we know that, but
that's what happened. Now. Iwould have went after her like oxygen,
knowing that her mother is building outthis much product a year. Right,
that's weird because we were coming offof that you have there. There's some
jealousy involved there as well. Thousandpercent thousand percent and an old expression they
(14:05):
don't boo BOMs, Yes exactly.But Mike gave you a job. He
did. He was the only one. Yes, this is true. Was
I the last resort? No,you came to me and said I'll take
seem on. But we were alwayssaying why didn't any brokers firms pick her
up? Then lay through? ButI learned the right way, Like I
sat at open houses for free,knowing what I had to do. Now
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I have to beg a broker andpay your to do. Yeah, you
paid your dues. Yeah that's that'sover what ten years ago? I don't
think I'll ever live down the factthat I got a verbal two point seven
million dollar offer and he was likeno, And I was like, I
don't know what to do here.What happened with that with Belmont that they
wanted to buy? That's right andtake that offer. Yeah, he'd rather
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sit a market. Do you rememberthere? Yeah? So for like,
I've never experienced this before. Itforgot that. Yeah, that was so
crazy. Well, it just goesto show that eighty percent of the time,
your first off what your best always. I learned that at twenty eight
years old as I chased one hundredthousand dollars more and my grandmother said to
me, you burn the hand andI want that one hundred thousand dollars more.
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I end up getting less and payingout one hundred thousand interest in carrying
costs. I did one last weekat nine to two. I'm like,
Okay, you'll never making a mistakebecause we live in the old times.
We've bet we've been through some badeconomies, right, and they'll stick with
you. And when you've been upand down, up and down in these
economies, you've learned like, don'tbe greedy. I'm not greedy so I've
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never gone trouble. I'm still seestump with development. No therety six years
later, we'll still see STUMPO.We've never been sued by an end use,
a vendor or subcontractor, and wejust keep going. But I always
say, look it, I'm nota brain surgeon. I'm not taking a
tumor out of your brain that's goingto save your life. I'm just a
builder. That's it. Stop gettinggreedy. I hate greed. Greed will
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bite you every single time. I'veseen this girl give up so much money
commissions on every deal, throw inhere, throwing there, and the buyer's
broker never nope, I want myNope, I want my nope. No,
I'll bring my client somewhere else somehowoften was the buyer broker like the
aunt or the sister in law arethe distant relatives I had. I had
(16:18):
a guy always, and I cantake my aunt anywhere. I love when
the broker says I can take myclient anywhere. Really, well, there's
no inventory, so were you takingthem right? Like? Well? I
think that's there's you know, likewith any settlement, there is good and
there's bad. I think the goodpart of this settlement is it It is
going to weed out some agents thatprobably should not have been in the business
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to begin with. That's that's prettymuch a certainty. Okay, do you
feel this nar settlement is going tomake the stronger brokers much stronger? Business
are going to come. There isno question the stronger brokers will get stronger,
strong listing agents will will will bestronger. It's it's going to change
the way we do business, butnot as dramatically as people talking about.
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And there's so many misconceptions that thenews as usual that the newspapers are writing
about that it's just couldn't be fairlyfrom the truth. So it's a lot
of just stop reading the headlines andstarts to develop good you know, when
do we ever have a standard sixpercent? Commissions said, there's never been
a standard ever. When do wehave you know, no state law that
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says that in any state what itis I think Florida six percent is no,
that's just what everyone charges. There'snever been a state law that says
you have to be minimum. Thisnever no. Well, in other market
systems and supply and demand always andone. They also said that they believe
this settlement is going to lower prices. It's not going to lower prices.
Supply and demand and free market systemswill dictate whether the prices go up and
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down, not how a buyer agent'sgetting paid. Were you blown away that
no settled, that they lost thislawsuit? Ah four hundred and eighteen million
for now eighty three and a halfmillion for anywhere, which is Southeby's cardboard
banker had a kick fifty three million, fifty five million for me, max
(18:12):
seventy million for Keller Williams. Andlet's talk about what So all these shingles
have to dish out this money,and you know what, and who's getting
all this money? The lawyers mostlyyou want we'll talk at the end about
who won and who lost here,Okay, well we'll leave the cliffhanger.
One interesting aspect of this. Thisis a Lifetime original movie. We just
(18:34):
left covered firms that did less thantwo billion in business. Okay, So
Compass still hasn't settled yet, BerkshireHathaway still hasn't settled yet. William Ravis
still hasn't settled yet. So theywent companies. Everybody I would Hannah,
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every single major real estate firm istwenty odd outstanding. If you were Coochy,
they would have left you alone,depending on my sales volume. But
probably yes. So they went upto the big houses and the big houses
right the checks, not the insurancecompanies right right, but the excluded companies
two billion and OVA. Why becausethey saw the money, they saw the
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volume. Now remember Anywhere which isCordwell Bank of souths Corkman, I'm probably
missing some era. They're done eightythree and a half million, Remax is
done, fifty five million. Wait, hold that thought. We got to
go to break. I'm Sinny Stumblinglistening to his nails on WBZ News Radio
ten thirty, sponsored by Floor andDecor, National Lumber and Village Bank.
(19:47):
They call it. He called thetest as one two three, it's a
fantasy music and Stumble you let's settoughest nails on WBZ News Radio ten thirty.
Sammy, you hear Michael saying,Okay, Michael, go ahead.
Every company's paying out this type ofmoney. Will this put some of these
(20:10):
companies under no because they can payit out over time. Kenny Ars paid
out over four years. I don'tknow the particulars on Anywhere Remax are Keller
Williams. Well, commercial markets down, commercial markets getting killed right now,
So they're gonna have to pay thoseout of residential in the housing christ they
(20:30):
are primarily residential real estate firms nownumbers down for these guys where there's not
enough product to sell right now,we're seven million houses short right now in
America. Well, you know,I have to tell you I think and
getting I have so much admiration forour broker own or anybody that owns a
real estate company. Now, andlet me let me tell you. Why
(20:52):
do you pick your favorite restaurant?Okay? Okay? Do you think if
it's payroll with seven or eighty percent, it would still be in business and
still be able to deliver the servicesyou expect. Okay, So if you
look at the model, the brokeragemodel right now, they're paying mediocre agents
(21:15):
seventy percent. They're paying good agentseighty ninety nine O agents that have one
hundred percent, right, go figureout. But they're there, lost leaders.
Call it what you will. Andso how do these companies make money.
It has to be at overhead volume, crazy volume, transaction fees,
ancillary revenues. But it is along dollar I don't miss it. Quite
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frankly, I don't miss owning abrokerage from Yeah, you don't have the
overhead, no, because if youtake what you make, it's a lot
less when you're paying the rent,electric, the bopa BA. Well that's
why you know, I'm fortunate,because I think we've got one of the
best operators. What you say isthat they're not wholdy enough on your brokers
to cover this lawsuit. Well,the franchise owners, I don't know the
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particulars. I don't know whether anywhere, Okay, who settled for eighty three
million, I don't know. Ihave no idea whether they went to every
one of their franchise owners and saideverybody for you. I'm not privy to
that, and I don't know,Well you would it would be fifty five
million. You know they do acalculation, all right, you know it's
(22:25):
thirty you know, I don't know, but I have to assume they're going
to share that cost. I wouldthink so if that the plaintiffs would not
settle, and less the un lessthe firm settled, which is the ones
I just quoted. But they captureda two billion, And I know why
they captured a two billion because Raves, Huge, Compass, Huge, Howard
(22:47):
Hannah Huge. These are front law, very large law firms. And this,
this is not over, This isfar from more on what segment of
our show right now? Third third? When third se this show right now?
And I'm still lost on why thislawsuit happened? How can that be
possible? My brain comprehends here youand not alone. Okay, because fundamentally,
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the two fundamental changes, which stillhave to be approved of the judge,
is that two fundamental changes are wecannot list the buyer agent commission in
our MLS that the seller is willingto pay. That. They didn't say
the seller can't pay the buyer's commission. And they didn't say the seller can't
(23:36):
pay some closing costs for the buyer. They said we couldn't put it in
mlose it something it's transparency. Sowhat happens why Sam so Globe Michael has
(23:56):
one A Street an MLS? Nowyou know Michael is paying Sam two and
a half percent to bring Michael AbiaBecause it's transparent, it's disclosed. They
thought it was price fixing. Theythought that's what the beginning of this loss.
It was elb So. Now Michaelhas to take that out. So
(24:17):
Sam, who as a buyer,doesn't know how the buyer is going to
pay her. The buyer either hasto pay her the three percent yep,
the buyer has to pay her aflat fee, or she has to call
Michael and say, Michael, areyou paying a buyer agency? Or the
public's going to have be able toget right into MLS and find out who
(24:38):
the sale who the selling broker is. That's how Zilla is anyway, Well,
let's they can do that now anyway, Well, most do that then,
well, and so they'll go directlyto the listing agent, and then
the issue becomes you create dual agency, right, and you represent that person.
Sometimes I like the be another side. Yeah, sometimes you like the
other person on the other side.Well, listen, here's my rational to
(25:00):
always pay brokers. You're not aloneand scratching my head. Well I can't.
I'm still scratching my head. Butsometimes you need that buffer. Oh
yeah, okay, So people goinghead to head with each other never seems
to work out. Well, somebody'sgot to be the buffer. Let me
give you a number. Okay,here's what I have found out in thirty
six years, which I don't likelike is when brokers lie to each other
(25:25):
that I have a problem with.You're gonna understand. You're representing me,
you're representing him. Guys, figureit out, come together, bring us
to the table together. But again, when I not to not to crap
on brokers, I'm not gonna dothat. But the same game started after
(25:45):
oh eight, like everybody forgot theold market where oh eight nine ten eleven
business just dumped and then we wentright back to final and best, Final
and best like oh eight nine,ten eleven twelve didn't happen, right back
to the same games. Those gamesI don't like. So with Samantha,
I'll always say to her, who'sthe first person I made the offer?
(26:07):
This is who made the first off. Mom, that's who gets my deal.
Do not go back and ask herfinal and best put the deal together.
I'm probably too transparent, but itmakes my life easier. Here's how
I see it, like ethical,Here's how I say, Michael, if
you made the offer on the houseand the second off is right around the
first offer, or maybe the sameamount of money, or maybe asking the
(26:29):
same thing, I always say tosam who made the first offer, This
is who made It's business. That'swho gets it. Let the second buyers
know. If the first buyers fallapart, it's going to go to them
or the third buyers. I don'tpick and let her play god out there.
They put pen to paper first.These people came in ten minutes behind
(26:49):
or fifteen minutes behind. Go thefirst people. She knows that right,
But then she'll have clients that Iwill say, Sammy, go back for
another round. Sam go back foranother round. And I say, Sam,
you can play that game. Butwhen that game is done being played
again, you're going to get thatreputation being a scumbag broker like the rest.
(27:10):
So I suggest you don't play thatgame. You do what you want
to do. I hate that game. Yeah, And I think what a
lot of people don't realize, especiallywhen you get to a high level of
brokerage, is that your relationship without the brokers is equally important, if
not more than any client. Iagree well hardily on that one. So
(27:33):
Tommy, Michael, why and we'rein the fourth segment. Who made out
in this? The only benefit thatI see to this is the brokers that
pick and choose not to bring yourclient to that based on the commission.
Well, because now they don't knowwhat it is. Right, that's the
only benefit. Like I've had an'ttell me. Everybody talks about transparency,
(27:56):
and we just pulled a big portionof the transparency out of this. Going
back to the same analogy, MichaelCarucci has a property for sale right now,
Sam knows exactly what I'm willing topay her from the seller before she
calls me with a buyer. Sothe whole thing really is, if Sam
was offering three percent, Let's sayyou and I were both builders, You're
(28:18):
offering a broker two and a halfpercent. With your broker, I'm offering
three the buyers, Broke is goingto show my product before yours. Yeah,
correct, that's what the lawsuits about. Correct, who's ever paying the
most money? But if I likeif what they're saying what they're saying builders,
I'm Stumpo Builders, I like yourhouse better that Broke is not going
(28:40):
to talk me into buying Stumpo's houseover Krucci's house. But it happens a
lot unless they make stuff up.Oh okay, okay, there you go.
Especially when there's a language barrier,it happens a lot. I think
you underestimate the influence of representation brokers. Yeah, I never thought about that.
(29:00):
Mike, my client wants to seeyou, because I think everybody's a
leader, not a follower. Butyou're only offering one point five on a
nine and a half million dollars.See, he's going to say that again.
So I had a broker straight uptell me he won't show my listing
because we're only offering one and ahalf a nine point five million, because
it's not enough money for him becausehe's going to pay referral FIA, right,
and that's his fiduciary with his bio. It's and so is he representing
(29:23):
his bioethically and fiduciary? No?No, And then I kind of understand
the lawsuit. It's because people aredoing things that are unethical here to make
more money. And that's probably asmall part of it, okay, but
that small pot causes massive lawsuit.So maybe it's as small as y'all think.
I think some smart technids to thinkabout it. While we go out
(29:45):
to break Sidy Stumbley, What's theToughest Nails? On wb Z News Radio
ten thirty. There you go,sponsored by new Brook Realty Group, Boston
would smaller insurance World Auto Body andTosca Drive Auto Body. Boy, man,
(30:10):
it's just the day away jumping hisnails on WBZ News Radio ten thirty
and I got a loud studio goingtonight. Okay, go ahead, you
two, you're out there. Whatdo you guys talking about Sammy's boyfriend?
If I'm dating, what does thathave to do with this? Our last
segment, we got the same clubquestion. We answered itparently. It's okay,
(30:37):
all right, So now I'm startto get to the bottom of this
lawsuit. It was if Couci's gota house for Salem, Couchi's a builder,
Stumpo is a builder. Sammy's thebuyer's burger. You're paying three percent.
I'm paying two and a half percent. Good chance Sammy's going to take
the buyer to your house, mightshow both, but convince the buyer to
(30:59):
buy yours is they're going to makethree percent. Have I summed this up
now? With this lawsuits about Ithink there's a portion of relevancy there,
but I think big picture of stuff, the argument is because remember the sellers
with the plane of seir. Theargument on the cellars, the sellers put
this into motion sellers. That makessense because the sellers with a plane of
(31:22):
sair, and they're saying, collectively, is this like Donald Trump running this
show or something that we're getting collectively, we collectively take, you know,
take three billion dollars whatever the numbersare, collective collectively over the sellers were
upset. The sellers with the planeof sale in the best sale market in
the last five six years, sevenyears were then complaining about that they paid
(31:45):
an extra premium, let's say,two or three percent because they were required.
I'm I'm back to the first segment. I'm confused again. So now
I'm confused again because I think they'vegot taken advantage of because they have to
pay the buyer. Is it?It's been like that forever? But essentially
it's also the same. The rulingsenses they don't they don't have to now
(32:07):
they don't want to, Okay,but hold on, But who's going to
bring the buyer to all these companieswhen this is the way it's been forever?
Now you got me confustic, andI thought I had this all figure
out. If you think about it, like you can say the seller's paying
it, but really the buyer isactually paying it because they're the one buying
the property because it's built in,right, so it's the same thing.
(32:28):
But it doesn't matter. This isthe way it's been forever. But what
I was told is that you canno longer mortgage the buyer's broker commission now
into your number. Well it's notbecause it's not part of the purchase price.
Well, depending on how you structureit, right, but there.
But someone had told us that ifyou can't put that into the purchase if
(32:49):
if who puts on the purchase price, no, you can't. What Sammy
is saying is that if you gointo a deal and a sell assays this
medium price half a million dollars,I'm gonna tell you, Michael Carucci,
I'm going to list with you forthree percent, and the buyer is going
to have to get their fee fromthe buyer. And clearly not something I
(33:09):
would recommend because you're gonna lose halfyour buyers to your house. But let's
just say they said that, thenthat buyer, Sammy has the buyer and
the buyer knows Sammy, I can'tpay you, my seller won't authorize it.
I'm set with just the listing fee, I wish I could help you,
but they're adamant mistake. By theway, he would never do it,
but they have that right to dothis, ok not broke as sellers
(33:34):
us. Okay, well good luckto them. So now Sammy has to
like, how am I gonna getpaid? She either one goes to the
buyer and say you need to payme three percent. How is that policeman
and fireman and workforce housing buyer whojust saved for years to get his down
payment, how is he now goingto be able to pay Sammy? He
(33:55):
can't finance it because the banks won'tallow it. Right, you can't mortgage
that after That's what was trying toteach you, right, That's what I'm
saying. So this threes right now. Under these rulings, there are three
options for bias agents, and oneof them is predicated on the seller position
(34:15):
on whatever house they like. Theseller can still agree, as they should
in my opinion, to pay abias fee. We just can't put it
in MLS. Okay, here's mynext question. What if the selar broke
is not saying, well, we'reonly going to pay you two and a
half percent now because it's not goingto be a buiers broke on the other
end, you know that's coming atyou guys, don't you, And we
(34:37):
will say that is your prerogative.But Yoga, in my opinion, you're
going to lose a massive amount ofbias that won't look at your home because
they can't afford to pay Sammy,or they'll try to come direct, which
we were getting to that about isthis going to get rid of buyer agency?
(34:57):
I don't think eighty seven to ninetypercent of all deals done last year
had a bias. Okay, SoCindy Stumpo sees something on Zillow that Mike
she has. Why is Cindy stumpOn? I don't know, because your
people go on zillo she's playing dumgame. I'm playing hypothetics. Well,
don't mention. Okay, I goonline. I see that you have a
house for sale. Okay, I'mnot going to call my broke. I'm
(35:21):
just going to call you directly.Why aren't you doing that now? Because
I like representation? Okay, thereyou go. Okay, but you don't
know and I need hold on.But I need to know about and look
at six seven houses at one time. Here's the difference if you looked at
that house right now, you couldgo on MLS and you wouldn't know if
(35:42):
I was willing for my seller topay your agent compensation so you could make
an informed decision. I want myown representation because it built out that what
are you eating, muskets. Thewhole thing reminds me how of when people
have rental listings and how they don'twant to co work, but they just
put it on Zillow and they don'tput it on MLS because they don't want
(36:05):
to share the fee. That's exactlywhat I think. But I don't like.
But I don't like about this rulingsaid. It takes away transparency on
right now, whether you like itor not, whether you believe in the
settlement that it it unfairly affected sellersthat and they had to pay more.
At least you knew, okay,if I put a property and I would
(36:30):
publicly say in our database, Iwill pay you two percent. I'll pay
it whatever the number is. Youknew, you knew before you call it.
Now you have to do it behindthe behind them. I got to
make a call, and what canhappen there? Oh? I love Sammy.
Of course I'll give you half themoney. But what if somebody calls
you don't I wouldn't do it.But look at the problems that could exist
somebody that you don't like doing businessnot it's just human nature. No,
(36:52):
i'll give you one I'll give youone percent, I'll give you three percent.
Because it's arbitrary. So it's goingto be dictated ship by the seller's
broker. But I feel like sellersare going to start saying things which they
taught us you can't do in realestate. Oh, if you get me
one hundred grad more, sure I'llpay them. Yeah, that's called the
netlist. No, No, Ithink my personal opinion and this is all
(37:17):
past now. No judge as willprove it. It still hasn't passed judges
to sign off on it in Massachusetts, nationally, No, nationally. Do
you think the judge is going topass us? Probably? Probably? Yeah,
And that I thought in July,this this becomes in Massachusetts in MLS,
(37:37):
there's they're they're projecting mid July thatthey will take it's business as usual.
People don't realize that it's business asusual. Will this settlement drive prices
up or down? Or stay local? Stay where we are not local,
but stay level. What's going tohappen here? I think this settlement is
going to be irrelevant to price failures. I think price vailures are dictated by
(38:00):
supply and demand and maket conditions.And we have no supply right now,
and as a result that I don'tsee prices dropping at all. And you
know, supply is going to becomea problem because the average America has American
has a mortgage under three and ahalf percent right now, and are they
going to trade up into a sixseven percent mortgage? Well, you know
that's a good question, Cindy,and the easy answer is no. But
(38:22):
remember divorced job relocation people will alwayscomes into play, right. The people
got promotions, they want the lodgerhome. It's you. You're absolutely right
that there are some people that aren'tleaving those low mortgages. But you're not
leaving, but maybe you'd rent it. I think you're going to see a
lot of landloads keep those single fieldscome in. I think that's Homeowe is
(38:44):
going to become landloads, right.I think that part of the population exists,
but I think it's smaller than mostpeople think. What do you think
the percentages I looked into it.Do you know the percentage of twenty Americans
that have a mortgage under three pointsomething? No, it's over sixty five
percent, is it really? Yeah? Google it? That's somebody google it.
Under three percent, you know,three and a half percent. Somewhere
(39:05):
between three and a half two seventyfive to three and a half percent.
I think it's sixty percent of Americans, sixty percent of homews was it?
It's yeah, two nine nine cometwo nine ninety. Okay, it's somebody
google it. Okay, she's googlingit. Okay. One of the biggest
misconceptions Oh okay, he's sticking theclock in front of me. Biggest misconceptions
(39:28):
related to relative to the settlement.Oh that relatives child is standard six percent
commission. That couldn't be further fromthe truth. Okay, we got ten
seconds that sellers cannot pay the buyeragent commission that has not been ruled on.
We cannot list the buyer agent commission. And I think those are the
two biggest ones. Okay, readyit does more than three quarters of homeowners,
(39:51):
which is seventy eight have a mortgagerate below five percent BINGO, well,
nearly six and ten fifty nine pointfour percent mortgage below four percent.
Just twenty two point six percent havea mortgage below percent. He was right,
okay, but just still on thefive right, Okay, I gotta
go to break. I'm city stumbling. You listen to Yeah those Days Long
(40:13):
Gone, twelve percent will reaches getone percent a month. It's a city
stumble. You listen to Tennas Nailson WBZ News Radio ten thirty. I'll
be right back and welcome back toTafa's Nails on WBZ News Radio ten thirty.
(40:45):
And I'm city STUMPO and I'm herewith Samantha Stump. I'm here Mike
Carucci. Mike, you need tocome back again because listen, buddy,
I have no clue what we justtalked about. Okay, one hour,
I'm still at zero. Okay,maybe I know one percent of why I
win this lawsuit. How do peoplereach you? You? Sindy gets Michael
Carucci Michael Carucci dot com and myInstagram handle Michael Carucci. And thanks for
having me, love it anytime.Mike's been a friend of mine for years.
(41:07):
I have a great Satay night.We'll see you next weekend. This
is Cindy Stampo WBZ News Radio tenthirty
For thirty five years, Cindy Stumpohas been a female home builder with a
passion for design, a mastery ofdetail, and a commitment to her crack.
With daughter Samantha Stumpo by her side, I don't need my whole family
on a date with me. That'sa good note. It's goddamn weird.
See. Stumpo Development is the onlysecond generation female construction company in the country.
You're crazy, You're a wacko,You're insane. I mean, it
(00:22):
just doesn't end together. Cindy andSamantha welcome guests to explore the world of
construction, real estate, development,design and more. Unpredictable. Every time
I think I know what you want, you switch it out. But that's
what makes sure houses all your datediscuss anything that happens between the roof and
the foundation. Nothing is off limits. You truly do care about everybody.
She can yell, ATCHI can scream, but when you get her alone,
(00:43):
she's the best person on the planet. Cindy Stumpo is tough as nails and
welcome to Sindey Stumpo tough his nailson w b ZEENWS Radio ten thirty and
I'm here tonight with two special people, really two special people. I'm stuck
with both of my bosses. That'swhere she started with you. Mmm,
(01:07):
don't forget that. This is true. This is why I'm my own boss.
Now for both of you. What'syour name again? I don't know
who am I? I don't know. I'm looking at a blonde picture of
you. You're a brunette now inthe studio. You really need to get
over this. We gotta change yourhair from blonde. See see the picture.
That's the first thing I said,Sammy when I saw you. He
likes my hairdog she hates it.She's my blonde, my whole life.
Let her be Let her be her. Oh, I'm letting her be her.
And who are you? Michael?So? Okay, Michael, give
(01:30):
a rundown? Who are you?I am the executive vice president of Gibson
Sotherby's International Reality Okay? How longyou have been a realtor? For?
Really? What? Almost forty years? Okay? I know the compound,
know the exact count. I've beenon here for thirty six. Stop saying
three seven years, thirty six years, thirty seven. It's not three seven
(01:51):
years thirty seven. We're keeping itin thirty six years. It sounds better.
Don't you want to keep aging me? Well, if I have to
age, you have to age.What do you mean the daughter's prerogative?
Oh yeah, yeah, what doyou mean? I hear you all being
stepped over even though I can't seeyou. Snickers. Okay, Mike,
I want you to give a bioto the listeners of you. I started
in the industry in the early eighties. Uh you howled? It was twenty
(02:15):
four, baby, baby. Myfirst few years, by coincidence, was
new development. It was the beginningof the condo conversion craze in the back
Bay, and so I started out. Is that the doc com bubble in
that area and era No, itwas eighty three eighty four. They started
to convert these brownstones in the city. And my first project was with the
(02:36):
architect Xena Nemetz. Remember Zena camein in eighty nine. Yeah, Jim
Nemetz is a son. I rememberJim. Yeah, he's still he's still
hugely successful. So I did somecondo conversions for her, and then I
went on with the Planning Office forUrban Affairs to Catholic Church and did a
couple of schools in the North end. So my first three and a half
to four years was was new development, and then I got into general brokerage
(03:00):
after that. And after that CharliePatsos with New Boston Properties, we teamed
up and opened a company together.He was the founder of what we now
know is furnished corporate rentals back inthe days. And then from a career
yeah yeah, and then found myway into general brokerage. My first partnership
(03:21):
was with a company called Russ andVolpi the New Boston Properties, then out
on my own, and then nineyears ago I sold my company to Gibson
Cellby's. You're happy you did that, I did, Yeah, you were
happy to move on to a biggercompany. It turned me because you were
concierge type broker. Yeah. Ihad a very high end, boutique real
estate firm on Newbery Street for twentysix years. It's actually next to Sanse
for the whole time, on thecorner of Hereford Newbury Street. And I
(03:45):
had taken the independent model as faras you could go. So I went
from being a very good local independentbroker to legitimately a global real estate advisor,
and it's allowed me to do dealsall over the world as a result
of having that affiliation. So yeah, so given the choice, it was
better to go with a bigger companythan State concierge. It's for you for
(04:06):
me, But it was more aboutthe brand. I liked that brand.
I liked what Southeby's represented because itwas right in my luxury space as an
independent. And it's worked out.It's really worked out well. And you've
got to show meet a lot moreinteresting people. Yeah, other broke from
other places broke. My first year, I actually traveled the country and met,
(04:30):
you know, the players from Manhattan, the players from Southeby's, players
from Manhattan and San Francisco, Miami. And then the second year, they
made me to what they call aSouthby's market leaders. That it's the top
fifty Southby's agents in the world.And that's that's gratulations. A group that
I'm in now, and boy,a bunch of smart people. Okay,
I've got some questions. I'm goingto come at you. Okay, Well,
what are some of the challenges facingreal estate today? In your opinion?
(04:56):
Is this outside of the aniostm.Now we'll talk about just real estate,
then we'll go into the nar Well, there's too many to begin with
one point six million agents trying todo there's one point six million agents trying
to sell real estate right, yes, Massachusetts, no national. So the
(05:17):
challenges that you're facing today with now, what is going to happen? First,
I'm trying to wrap my arms aroundthe new law and Michael and I
can't. That's number one. I'mtrying to decipher how the buyers burgers going.
Is it that the the travelocities ofthe world got with the travel agents?
(05:38):
Is that the role we're going downis red finn and these companies trying
to take over your jobs. Explainto me and the listens and educate me
what's going to happen here. Well, in March fifteenth, the NAI National
Association of Realtves settle the lawsuit.That is just the start of all this
blowing right, it's and it's goingto bring too big change. Okay,
(06:00):
let me stop you this. SoI really comprehend this. Why was NAR
sued? Well, it wasn't justNI, it was NI, it was
anywhere, it was Remax, itwas it was everybody, everybody, and
they have and so the NAR settledfor four hundred and eighteen million dollars.
Okay, okay, so they sellwhat was the lawsuit for, like,
(06:21):
what was the reason to sue them? They alleged the planeiffs alleged that it
was price fixing where the buyer agencycompensation was published in RMLs, and they
felt that it was staring buyers agentsto more expensive properties that ultimately the cell
(06:46):
is paid for, which I don'tnecessarily Wait a minute, So the they
feel the buyer's agent pushed their clientsinto more expensive properties based on what this
the mission amount was, is whathe's saying. Yeah, and it's so
hold on, let me get this. Say I'm a buyer, I'm looking
at a four thousand dollar home.When you push me you six? No,
(07:08):
he's putt they're pushing you to wherethe commission the commission higher because the
commission Well, let me let metell you what, because a lot of
this is not going to make senseto you, and it doesn't make sense
to a lot of people as well. So the two the two basic changes,
uh that we can't now put thebuyer agency commission in our mls.
(07:33):
But what what's how is that goingto change things? It's not. That's
number one. Number two, whichI agree with is buyer agents now have
to sign buyer agency contracts. Well, they should have all along. It's
no different than being a listing agent. Michael was it a one point you
decide whether you were a sellers brokeror a buiers broker When I first started
(07:58):
and and uh, unfortunately, I'ma very I'm a very heavy listing agent.
And right, and that's really whereyou want to be, the buyer.
This ruling will make a listing agentstronger and it will put some challenges
on buyers agents. Okay, butthere was a time that you did sign
(08:20):
something that you worked for the buyerand you worked for the seller. Correct,
well, you should have all alongnow now it's your requirement. But
a buyer I would make them signa buyer. Am I crazy? I
used to sign with Carol Brenis,who's my first real estate broker. Uh
started with my in my career.I had to sign the part that said
(08:41):
I hired her as a buyer's agent. As a seller's agent, we're talking
about buyer. I was selling.It was my product sell and you're the
listing Yeah, you have that,you have the listing agent. Then remember
she was there's two sides to everyreal estate transaction. There's the listing side.
When Cindy Stepper was selling a house, you're retaining a listing agent.
(09:03):
Carol would make me sign something thatsaid that made me agree that she is
my Cella's agent. That's a listingagent. We're talking about the bias age.
Wait every hold, I thought Ididn't realize I got to go to
break. I'm sitting stumbling and listenTough his Nails on WBZ news Radio ten
thirty and be right back, sponsoredby Pillow Windows of Boston, Next Day
Molding and Kennedy carp And I'm sidystumbling you listen Tough his Nails on WBZ
(09:43):
News Radio ten thirty. Hey Sammy, how are you doing over the honey?
Hey? Mom? How you doing? Long night tonight? Okay,
Michael, go back to what youwere saying. Let's go back to the
n R. I I'm sorry,SIRIH doesn't get that. I am so
sorry, folks, I will turnthat off, Michael. Siri doesn't understand
you that. It's okay, Siri. We don't understand either, so don't
(10:05):
be confused. So the two fundamentalbusiness practices the changes in this settlement were
that we had to remove the buyeragent compensation in our mls, and we
had to require now that bias signedbuyer agency contracts. Good agents have been
(10:26):
doing that all along, So that'snot going to really change with the agents
that are doing what they're supposed tobe doing. But as a seller's agent,
we're not talking about that. Holdon, hold on, do you
have to pay a buyers brocus andate their agent? Legally? I know
morally what you'll do, and you'llexplain that, but legally, do you
(10:46):
have to pay the buyers broker acommission? Right? And that is a
great question. Legally, legally,no, you don't. So no buyers
brokers are going to bring you buyersthat's right. So what is this game?
But what I don't underin So whatif I sell as a sellers agent,
I charged five percent and I'm doingboth sides of the transaction. At
(11:09):
that point, I deserve the fiveright. But now, Sammy, you've
got to have You've got to you'vegot to have your buyer sign a buyer
agency, and you've got to havethe buyer and seller agree to what they
call dual agency. Both have toagree. It has to be transparent.
But there's nothing, there's nothing wrong. Well, let me let me get
the misconsumptions and some deals that sheis the seller and the buyer for sure.
(11:33):
She says a lot on a roadright after July, she's going to
need to sign buyer agent contracts withanybody on a we call it a direct
sale, but there'll be a dualagency. But if she's a seller it
she always seems to lately put outa bigger commission to the buyer. She
will smart, Yeah, she'll putthree percent out to the buyer. Yeah,
(11:54):
and she moves that way, okay, and keep two percent staff move
that way. No, they'll blopit. They'll they'll just you'll just say
boom. A lot of my showsthat m have Frankie, have Frankie Nick
you I'm all right, listen.At the end of the day, she's
smart, she's less greedy, andshe moves more inventory. So now absolutely
(12:16):
and advertise that once she gets onthe phone, call well, here's why
things going to happen. You canand you can tell me if I'm wrong.
The bigger brokers are all going tonetwork together like they do. Crucia
got this. George Sokus Bop bopbop bop anyway, correct, and you'll
all stay united. I think you'regoing to lose more than half your brokers
out there, I hope so well. You know the one point six million
(12:39):
agents I told you about nationally correct, eight hundred thousand of them did less
than eight hundred thousand of them didless than two deals last year. And
that that's the crazy parts. Theeverybody thinks when you become a broke and
we talked about this earlier, thatyou're just gonna make noodles and noodles and
money and getting your license to becomea broker. That's the easy part,
(13:00):
right. The hard part is nowgetting out there and hustling well. And
when Sammy passed her license, shewent to work for you to learn.
She was with you for the firstyear, year two, and then year
two and then I said, okay, Sammy, come with me. Now
you've got all the all the trainingfor Mike. Now come with me.
Let's open up your own and let'ssee what happens there. And the funniest
(13:20):
thing, Mike, which we alllaugh at today, when she graduated school,
you know, all the big houseswere picking you up, and stupid
them not picking her up. Withher mother being a builder. That was
like the dumbest move right. Itwas like in pretty women like major sucking
up, right, they should bemajorly sucking up to her, but they
gave her the the hands out forwhatever reason. Look what happened there,
(13:43):
Hello, shoved it right up there. Okay, we know that, but
that's what happened. Now. Iwould have went after her like oxygen,
knowing that her mother is building outthis much product a year. Right,
that's weird because we were coming offof that you have there. There's some
jealousy involved there as well. Thousandpercent thousand percent and an old expression they
(14:05):
don't boo BOMs, Yes exactly.But Mike gave you a job. He
did. He was the only one. Yes, this is true. Was
I the last resort? No,you came to me and said I'll take
seem on. But we were alwayssaying why didn't any brokers firms pick her
up? Then lay through? ButI learned the right way, Like I
sat at open houses for free,knowing what I had to do. Now
(14:26):
I have to beg a broker andpay your to do. Yeah, you
paid your dues. Yeah that's that'sover what ten years ago? I don't
think I'll ever live down the factthat I got a verbal two point seven
million dollar offer and he was likeno, And I was like, I
don't know what to do here.What happened with that with Belmont that they
wanted to buy? That's right andtake that offer. Yeah, he'd rather
(14:48):
sit a market. Do you rememberthere? Yeah? So for like,
I've never experienced this before. Itforgot that. Yeah, that was so
crazy. Well, it just goesto show that eighty percent of the time,
your first off what your best always. I learned that at twenty eight
years old as I chased one hundredthousand dollars more and my grandmother said to
me, you burn the hand andI want that one hundred thousand dollars more.
(15:11):
I end up getting less and payingout one hundred thousand interest in carrying
costs. I did one last weekat nine to two. I'm like,
Okay, you'll never making a mistakebecause we live in the old times.
We've bet we've been through some badeconomies, right, and they'll stick with
you. And when you've been upand down, up and down in these
economies, you've learned like, don'tbe greedy. I'm not greedy so I've
(15:33):
never gone trouble. I'm still seestump with development. No therety six years
later, we'll still see STUMPO.We've never been sued by an end use,
a vendor or subcontractor, and wejust keep going. But I always
say, look it, I'm nota brain surgeon. I'm not taking a
tumor out of your brain that's goingto save your life. I'm just a
builder. That's it. Stop gettinggreedy. I hate greed. Greed will
(15:54):
bite you every single time. I'veseen this girl give up so much money
commissions on every deal, throw inhere, throwing there, and the buyer's
broker never nope, I want myNope, I want my nope. No,
I'll bring my client somewhere else somehowoften was the buyer broker like the
aunt or the sister in law arethe distant relatives I had. I had
(16:18):
a guy always, and I cantake my aunt anywhere. I love when
the broker says I can take myclient anywhere. Really, well, there's
no inventory, so were you takingthem right? Like? Well? I
think that's there's you know, likewith any settlement, there is good and
there's bad. I think the goodpart of this settlement is it It is
going to weed out some agents thatprobably should not have been in the business
(16:42):
to begin with. That's that's prettymuch a certainty. Okay, do you
feel this nar settlement is going tomake the stronger brokers much stronger? Business
are going to come. There isno question the stronger brokers will get stronger,
strong listing agents will will will bestronger. It's it's going to change
the way we do business, butnot as dramatically as people talking about.
(17:03):
And there's so many misconceptions that thenews as usual that the newspapers are writing
about that it's just couldn't be fairlyfrom the truth. So it's a lot
of just stop reading the headlines andstarts to develop good you know, when
do we ever have a standard sixpercent? Commissions said, there's never been
a standard ever. When do wehave you know, no state law that
(17:26):
says that in any state what itis I think Florida six percent is no,
that's just what everyone charges. There'snever been a state law that says
you have to be minimum. Thisnever no. Well, in other market
systems and supply and demand always andone. They also said that they believe
this settlement is going to lower prices. It's not going to lower prices.
Supply and demand and free market systemswill dictate whether the prices go up and
(17:49):
down, not how a buyer agent'sgetting paid. Were you blown away that
no settled, that they lost thislawsuit? Ah four hundred and eighteen million
for now eighty three and a halfmillion for anywhere, which is Southeby's cardboard
banker had a kick fifty three million, fifty five million for me, max
(18:12):
seventy million for Keller Williams. Andlet's talk about what So all these shingles
have to dish out this money,and you know what, and who's getting
all this money? The lawyers mostlyyou want we'll talk at the end about
who won and who lost here,Okay, well we'll leave the cliffhanger.
One interesting aspect of this. Thisis a Lifetime original movie. We just
(18:34):
left covered firms that did less thantwo billion in business. Okay, So
Compass still hasn't settled yet, BerkshireHathaway still hasn't settled yet. William Ravis
still hasn't settled yet. So theywent companies. Everybody I would Hannah,
(18:55):
every single major real estate firm istwenty odd outstanding. If you were Coochy,
they would have left you alone,depending on my sales volume. But
probably yes. So they went upto the big houses and the big houses
right the checks, not the insurancecompanies right right, but the excluded companies
two billion and OVA. Why becausethey saw the money, they saw the
(19:18):
volume. Now remember Anywhere which isCordwell Bank of souths Corkman, I'm probably
missing some era. They're done eightythree and a half million, Remax is
done, fifty five million. Wait, hold that thought. We got to
go to break. I'm Sinny Stumblinglistening to his nails on WBZ News Radio
ten thirty, sponsored by Floor andDecor, National Lumber and Village Bank.
(19:47):
They call it. He called thetest as one two three, it's a
fantasy music and Stumble you let's settoughest nails on WBZ News Radio ten thirty.
Sammy, you hear Michael saying,Okay, Michael, go ahead.
Every company's paying out this type ofmoney. Will this put some of these
(20:10):
companies under no because they can payit out over time. Kenny Ars paid
out over four years. I don'tknow the particulars on Anywhere Remax are Keller
Williams. Well, commercial markets down, commercial markets getting killed right now,
So they're gonna have to pay thoseout of residential in the housing christ they
(20:30):
are primarily residential real estate firms nownumbers down for these guys where there's not
enough product to sell right now,we're seven million houses short right now in
America. Well, you know,I have to tell you I think and
getting I have so much admiration forour broker own or anybody that owns a
real estate company. Now, andlet me let me tell you. Why
(20:52):
do you pick your favorite restaurant?Okay? Okay? Do you think if
it's payroll with seven or eighty percent, it would still be in business and
still be able to deliver the servicesyou expect. Okay, So if you
look at the model, the brokeragemodel right now, they're paying mediocre agents
(21:15):
seventy percent. They're paying good agentseighty ninety nine O agents that have one
hundred percent, right, go figureout. But they're there, lost leaders.
Call it what you will. Andso how do these companies make money.
It has to be at overhead volume, crazy volume, transaction fees,
ancillary revenues. But it is along dollar I don't miss it. Quite
(21:40):
frankly, I don't miss owning abrokerage from Yeah, you don't have the
overhead, no, because if youtake what you make, it's a lot
less when you're paying the rent,electric, the bopa BA. Well that's
why you know, I'm fortunate,because I think we've got one of the
best operators. What you say isthat they're not wholdy enough on your brokers
to cover this lawsuit. Well,the franchise owners, I don't know the
(22:03):
particulars. I don't know whether anywhere, Okay, who settled for eighty three
million, I don't know. Ihave no idea whether they went to every
one of their franchise owners and saideverybody for you. I'm not privy to
that, and I don't know,Well you would it would be fifty five
million. You know they do acalculation, all right, you know it's
(22:25):
thirty you know, I don't know, but I have to assume they're going
to share that cost. I wouldthink so if that the plaintiffs would not
settle, and less the un lessthe firm settled, which is the ones
I just quoted. But they captureda two billion, And I know why
they captured a two billion because Raves, Huge, Compass, Huge, Howard
(22:47):
Hannah Huge. These are front law, very large law firms. And this,
this is not over, This isfar from more on what segment of
our show right now? Third third? When third se this show right now?
And I'm still lost on why thislawsuit happened? How can that be
possible? My brain comprehends here youand not alone. Okay, because fundamentally,
(23:11):
the two fundamental changes, which stillhave to be approved of the judge,
is that two fundamental changes are wecannot list the buyer agent commission in
our MLS that the seller is willingto pay. That. They didn't say
the seller can't pay the buyer's commission. And they didn't say the seller can't
(23:36):
pay some closing costs for the buyer. They said we couldn't put it in
mlose it something it's transparency. Sowhat happens why Sam so Globe Michael has
(23:56):
one A Street an MLS? Nowyou know Michael is paying Sam two and
a half percent to bring Michael AbiaBecause it's transparent, it's disclosed. They
thought it was price fixing. Theythought that's what the beginning of this loss.
It was elb So. Now Michaelhas to take that out. So
(24:17):
Sam, who as a buyer,doesn't know how the buyer is going to
pay her. The buyer either hasto pay her the three percent yep,
the buyer has to pay her aflat fee, or she has to call
Michael and say, Michael, areyou paying a buyer agency? Or the
public's going to have be able toget right into MLS and find out who
(24:38):
the sale who the selling broker is. That's how Zilla is anyway, Well,
let's they can do that now anyway, Well, most do that then,
well, and so they'll go directlyto the listing agent, and then
the issue becomes you create dual agency, right, and you represent that person.
Sometimes I like the be another side. Yeah, sometimes you like the
other person on the other side.Well, listen, here's my rational to
(25:00):
always pay brokers. You're not aloneand scratching my head. Well I can't.
I'm still scratching my head. Butsometimes you need that buffer. Oh
yeah, okay, So people goinghead to head with each other never seems
to work out. Well, somebody'sgot to be the buffer. Let me
give you a number. Okay,here's what I have found out in thirty
six years, which I don't likelike is when brokers lie to each other
(25:25):
that I have a problem with.You're gonna understand. You're representing me,
you're representing him. Guys, figureit out, come together, bring us
to the table together. But again, when I not to not to crap
on brokers, I'm not gonna dothat. But the same game started after
(25:45):
oh eight, like everybody forgot theold market where oh eight nine ten eleven
business just dumped and then we wentright back to final and best, Final
and best like oh eight nine,ten eleven twelve didn't happen, right back
to the same games. Those gamesI don't like. So with Samantha,
I'll always say to her, who'sthe first person I made the offer?
(26:07):
This is who made the first off. Mom, that's who gets my deal.
Do not go back and ask herfinal and best put the deal together.
I'm probably too transparent, but itmakes my life easier. Here's how
I see it, like ethical,Here's how I say, Michael, if
you made the offer on the houseand the second off is right around the
first offer, or maybe the sameamount of money, or maybe asking the
(26:29):
same thing, I always say tosam who made the first offer, This
is who made It's business. That'swho gets it. Let the second buyers
know. If the first buyers fallapart, it's going to go to them
or the third buyers. I don'tpick and let her play god out there.
They put pen to paper first.These people came in ten minutes behind
(26:49):
or fifteen minutes behind. Go thefirst people. She knows that right,
But then she'll have clients that Iwill say, Sammy, go back for
another round. Sam go back foranother round. And I say, Sam,
you can play that game. Butwhen that game is done being played
again, you're going to get thatreputation being a scumbag broker like the rest.
(27:10):
So I suggest you don't play thatgame. You do what you want
to do. I hate that game. Yeah, And I think what a
lot of people don't realize, especiallywhen you get to a high level of
brokerage, is that your relationship without the brokers is equally important, if
not more than any client. Iagree well hardily on that one. So
(27:33):
Tommy, Michael, why and we'rein the fourth segment. Who made out
in this? The only benefit thatI see to this is the brokers that
pick and choose not to bring yourclient to that based on the commission.
Well, because now they don't knowwhat it is. Right, that's the
only benefit. Like I've had an'ttell me. Everybody talks about transparency,
(27:56):
and we just pulled a big portionof the transparency out of this. Going
back to the same analogy, MichaelCarucci has a property for sale right now,
Sam knows exactly what I'm willing topay her from the seller before she
calls me with a buyer. Sothe whole thing really is, if Sam
was offering three percent, Let's sayyou and I were both builders, You're
(28:18):
offering a broker two and a halfpercent. With your broker, I'm offering
three the buyers, Broke is goingto show my product before yours. Yeah,
correct, that's what the lawsuits about. Correct, who's ever paying the
most money? But if I likeif what they're saying what they're saying builders,
I'm Stumpo Builders, I like yourhouse better that Broke is not going
(28:40):
to talk me into buying Stumpo's houseover Krucci's house. But it happens a
lot unless they make stuff up.Oh okay, okay, there you go.
Especially when there's a language barrier,it happens a lot. I think
you underestimate the influence of representation brokers. Yeah, I never thought about that.
(29:00):
Mike, my client wants to seeyou, because I think everybody's a
leader, not a follower. Butyou're only offering one point five on a
nine and a half million dollars.See, he's going to say that again.
So I had a broker straight uptell me he won't show my listing
because we're only offering one and ahalf a nine point five million, because
it's not enough money for him becausehe's going to pay referral FIA, right,
and that's his fiduciary with his bio. It's and so is he representing
(29:23):
his bioethically and fiduciary? No?No, And then I kind of understand
the lawsuit. It's because people aredoing things that are unethical here to make
more money. And that's probably asmall part of it, okay, but
that small pot causes massive lawsuit.So maybe it's as small as y'all think.
I think some smart technids to thinkabout it. While we go out
(29:45):
to break Sidy Stumbley, What's theToughest Nails? On wb Z News Radio
ten thirty. There you go,sponsored by new Brook Realty Group, Boston
would smaller insurance World Auto Body andTosca Drive Auto Body. Boy, man,
(30:10):
it's just the day away jumping hisnails on WBZ News Radio ten thirty
and I got a loud studio goingtonight. Okay, go ahead, you
two, you're out there. Whatdo you guys talking about Sammy's boyfriend?
If I'm dating, what does thathave to do with this? Our last
segment, we got the same clubquestion. We answered itparently. It's okay,
(30:37):
all right, So now I'm startto get to the bottom of this
lawsuit. It was if Couci's gota house for Salem, Couchi's a builder,
Stumpo is a builder. Sammy's thebuyer's burger. You're paying three percent.
I'm paying two and a half percent. Good chance Sammy's going to take
the buyer to your house, mightshow both, but convince the buyer to
(30:59):
buy yours is they're going to makethree percent. Have I summed this up
now? With this lawsuits about Ithink there's a portion of relevancy there,
but I think big picture of stuff, the argument is because remember the sellers
with the plane of seir. Theargument on the cellars, the sellers put
this into motion sellers. That makessense because the sellers with a plane of
(31:22):
sair, and they're saying, collectively, is this like Donald Trump running this
show or something that we're getting collectively, we collectively take, you know,
take three billion dollars whatever the numbersare, collective collectively over the sellers were
upset. The sellers with the planeof sale in the best sale market in
the last five six years, sevenyears were then complaining about that they paid
(31:45):
an extra premium, let's say,two or three percent because they were required.
I'm I'm back to the first segment. I'm confused again. So now
I'm confused again because I think they'vegot taken advantage of because they have to
pay the buyer. Is it?It's been like that forever? But essentially
it's also the same. The rulingsenses they don't they don't have to now
(32:07):
they don't want to, Okay,but hold on, But who's going to
bring the buyer to all these companieswhen this is the way it's been forever?
Now you got me confustic, andI thought I had this all figure
out. If you think about it, like you can say the seller's paying
it, but really the buyer isactually paying it because they're the one buying
the property because it's built in,right, so it's the same thing.
(32:28):
But it doesn't matter. This isthe way it's been forever. But what
I was told is that you canno longer mortgage the buyer's broker commission now
into your number. Well it's notbecause it's not part of the purchase price.
Well, depending on how you structureit, right, but there.
But someone had told us that ifyou can't put that into the purchase if
(32:49):
if who puts on the purchase price, no, you can't. What Sammy
is saying is that if you gointo a deal and a sell assays this
medium price half a million dollars,I'm gonna tell you, Michael Carucci,
I'm going to list with you forthree percent, and the buyer is going
to have to get their fee fromthe buyer. And clearly not something I
(33:09):
would recommend because you're gonna lose halfyour buyers to your house. But let's
just say they said that, thenthat buyer, Sammy has the buyer and
the buyer knows Sammy, I can'tpay you, my seller won't authorize it.
I'm set with just the listing fee, I wish I could help you,
but they're adamant mistake. By theway, he would never do it,
but they have that right to dothis, ok not broke as sellers
(33:34):
us. Okay, well good luckto them. So now Sammy has to
like, how am I gonna getpaid? She either one goes to the
buyer and say you need to payme three percent. How is that policeman
and fireman and workforce housing buyer whojust saved for years to get his down
payment, how is he now goingto be able to pay Sammy? He
(33:55):
can't finance it because the banks won'tallow it. Right, you can't mortgage
that after That's what was trying toteach you, right, That's what I'm
saying. So this threes right now. Under these rulings, there are three
options for bias agents, and oneof them is predicated on the seller position
(34:15):
on whatever house they like. Theseller can still agree, as they should
in my opinion, to pay abias fee. We just can't put it
in MLS. Okay, here's mynext question. What if the selar broke
is not saying, well, we'reonly going to pay you two and a
half percent now because it's not goingto be a buiers broke on the other
end, you know that's coming atyou guys, don't you, And we
(34:37):
will say that is your prerogative.But Yoga, in my opinion, you're
going to lose a massive amount ofbias that won't look at your home because
they can't afford to pay Sammy,or they'll try to come direct, which
we were getting to that about isthis going to get rid of buyer agency?
(34:57):
I don't think eighty seven to ninetypercent of all deals done last year
had a bias. Okay, SoCindy Stumpo sees something on Zillow that Mike
she has. Why is Cindy stumpOn? I don't know, because your
people go on zillo she's playing dumgame. I'm playing hypothetics. Well,
don't mention. Okay, I goonline. I see that you have a
house for sale. Okay, I'mnot going to call my broke. I'm
(35:21):
just going to call you directly.Why aren't you doing that now? Because
I like representation? Okay, thereyou go. Okay, but you don't
know and I need hold on.But I need to know about and look
at six seven houses at one time. Here's the difference if you looked at
that house right now, you couldgo on MLS and you wouldn't know if
(35:42):
I was willing for my seller topay your agent compensation so you could make
an informed decision. I want myown representation because it built out that what
are you eating, muskets. Thewhole thing reminds me how of when people
have rental listings and how they don'twant to co work, but they just
put it on Zillow and they don'tput it on MLS because they don't want
(36:05):
to share the fee. That's exactlywhat I think. But I don't like.
But I don't like about this rulingsaid. It takes away transparency on
right now, whether you like itor not, whether you believe in the
settlement that it it unfairly affected sellersthat and they had to pay more.
At least you knew, okay,if I put a property and I would
(36:30):
publicly say in our database, Iwill pay you two percent. I'll pay
it whatever the number is. Youknew, you knew before you call it.
Now you have to do it behindthe behind them. I got to
make a call, and what canhappen there? Oh? I love Sammy.
Of course I'll give you half themoney. But what if somebody calls
you don't I wouldn't do it.But look at the problems that could exist
somebody that you don't like doing businessnot it's just human nature. No,
(36:52):
i'll give you one I'll give youone percent, I'll give you three percent.
Because it's arbitrary. So it's goingto be dictated ship by the seller's
broker. But I feel like sellersare going to start saying things which they
taught us you can't do in realestate. Oh, if you get me
one hundred grad more, sure I'llpay them. Yeah, that's called the
netlist. No, No, Ithink my personal opinion and this is all
(37:17):
past now. No judge as willprove it. It still hasn't passed judges
to sign off on it in Massachusetts, nationally, No, nationally. Do
you think the judge is going topass us? Probably? Probably? Yeah,
And that I thought in July,this this becomes in Massachusetts in MLS,
(37:37):
there's they're they're projecting mid July thatthey will take it's business as usual.
People don't realize that it's business asusual. Will this settlement drive prices
up or down? Or stay local? Stay where we are not local,
but stay level. What's going tohappen here? I think this settlement is
going to be irrelevant to price failures. I think price vailures are dictated by
(38:00):
supply and demand and maket conditions.And we have no supply right now,
and as a result that I don'tsee prices dropping at all. And you
know, supply is going to becomea problem because the average America has American
has a mortgage under three and ahalf percent right now, and are they
going to trade up into a sixseven percent mortgage? Well, you know
that's a good question, Cindy,and the easy answer is no. But
(38:22):
remember divorced job relocation people will alwayscomes into play, right. The people
got promotions, they want the lodgerhome. It's you. You're absolutely right
that there are some people that aren'tleaving those low mortgages. But you're not
leaving, but maybe you'd rent it. I think you're going to see a
lot of landloads keep those single fieldscome in. I think that's Homeowe is
(38:44):
going to become landloads, right.I think that part of the population exists,
but I think it's smaller than mostpeople think. What do you think
the percentages I looked into it.Do you know the percentage of twenty Americans
that have a mortgage under three pointsomething? No, it's over sixty five
percent, is it really? Yeah? Google it? That's somebody google it.
Under three percent, you know,three and a half percent. Somewhere
(39:05):
between three and a half two seventyfive to three and a half percent.
I think it's sixty percent of Americans, sixty percent of homews was it?
It's yeah, two nine nine cometwo nine ninety. Okay, it's somebody
google it. Okay, she's googlingit. Okay. One of the biggest
misconceptions Oh okay, he's sticking theclock in front of me. Biggest misconceptions
(39:28):
related to relative to the settlement.Oh that relatives child is standard six percent
commission. That couldn't be further fromthe truth. Okay, we got ten
seconds that sellers cannot pay the buyeragent commission that has not been ruled on.
We cannot list the buyer agent commission. And I think those are the
two biggest ones. Okay, readyit does more than three quarters of homeowners,
(39:51):
which is seventy eight have a mortgagerate below five percent BINGO, well,
nearly six and ten fifty nine pointfour percent mortgage below four percent.
Just twenty two point six percent havea mortgage below percent. He was right,
okay, but just still on thefive right, Okay, I gotta
go to break. I'm city stumbling. You listen to Yeah those Days Long
(40:13):
Gone, twelve percent will reaches getone percent a month. It's a city
stumble. You listen to Tennas Nailson WBZ News Radio ten thirty. I'll
be right back and welcome back toTafa's Nails on WBZ News Radio ten thirty.
(40:45):
And I'm city STUMPO and I'm herewith Samantha Stump. I'm here Mike
Carucci. Mike, you need tocome back again because listen, buddy,
I have no clue what we justtalked about. Okay, one hour,
I'm still at zero. Okay,maybe I know one percent of why I
win this lawsuit. How do peoplereach you? You? Sindy gets Michael
Carucci Michael Carucci dot com and myInstagram handle Michael Carucci. And thanks for
having me, love it anytime.Mike's been a friend of mine for years.
(41:07):
I have a great Satay night.We'll see you next weekend. This
is Cindy Stampo WBZ News Radio tenthirty
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