Hey Friends,
I have 4 fun facts to share with you today. I will share on the NAR rulings in #4. As always, my weekly quote to ponder awaits you below. Have a great weekend!
Blessings,
Andrew
Fun Fact 1:
Married couples continue to own more homes by a large margin than any other composition. Single woman own 9% percent more than single men.
Source: NAR
Fun Fact 2:
From January to June, the number of homes in foreclosure dropped this year.
Source: Atom via Housing Wire
Fun Fact 3:
According to Pew, as of April 2024, 22% of Americans say they trust the government in Washington to do what is right “just about always” (2%) or “most of the time” (21%).
Source: Pew Research Center
Fun Fact 4:
The new National Association of Realtors (NAR) settlement policy is now in effect, likely already in your market. There is a lot of inaccurate information flowing. Here are 3 important points:
1️⃣ Buyers need an agreement with their buyer agent, but it doesn’t have to be exclusive or long-term. Buyers can negotiate the terms and shop for an agent they trust before shopping for a home. This has always been encouraged, but sometimes it is skipped due to lack of expertise from realtors as well as time and situational conditions. For example: Buyers are less likely to sign a document with an agent before touring a home, whereas sellers are used to signing documents with their selected agent before listing their home for sale.
2️⃣ Agent commission/compensation is not allowed to be advertised through the MLS. Agent compensation is negotiable (and always has been), but now it’s written into the contract forms.
THE HEADLINES
Sellers don’t need to offer compensation to buyer’s agents.
THE REALITY
Choosing to help a buyer with commission or closing costs is solely the seller’s decision. Many sellers see value in doing so as it can make their property attractive to a wider pool of buyers by helping to alleviate out-of-pocket costs that can be challenging, especially for first-time buyers. Sellers also recognize that buyer’s agents often facilitate a faster and smoother closing. Buyers don’t often have enough cash to cover their down payment or closing costs for a home. If sellers force the buyers to also pay for the buyers agent compensation amount, it will deter many buyers.
3️⃣ Buyers and sellers still need agents to represent them. Forgoing representation in an attempt to avoid fees could cost the consumer in the long run.
THE HEADLINES
Buyers no longer need agents.
THE REALITY
Skillful agents know the market and can not only negotiate a deal for buyers/sellers that makes sense, but also helps with due diligence tasks that may keep the consumer from making costly errors in the transaction
Source: NAR, The Platinum Group, Realtors
Quote I’m pondering:
““If you want to know what a man’s like, take a good look at how he treats his inferiors, not his equals.” ― Sirius Black, Harry Potter and the Goblet of Fire
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Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, an offer to buy or sell any security, or to buy or sell real estate property. Read our full disclosures HERE.
