My personal Blog for August, 2024

Dear  Clients, Neighbors, Friends and Associates…

My personal Blog for August, 2024,
“Top 4 Factors to Consider When Choosing Your Mortgage,” 
is now published in WalkerOnTheBeach.com.

As August, 2024,  begins,  Realtors across our country are preparing for implementation of some new rules for our industry arising out of the National Association of Realtors Lawsuit Settlement earlier this year, which is set for final approval by the end of 2024.  Within a few days of this publication our local MLS, Board of Realtors and Florida Realtors will move ahead of the August 17 national deadline to adopt some new forms and enhance certain  practices so we readily adapt to these new rules.

The National Association of Realtors Lawsuit Settlement:  Over many months the media has been full of speculation and often, unfortunately, confusing miss information.   NAR has moved to settle a massive class action lawsuit,  without any admission of guilt,  to the substantial  financial benefit of the attorneys,  not plaintiffs. One might say our real estate trade organization has in effect “raised the bar,” so Realtors can get on with what we do, professionally and fairly serve the public in the sale of residential real estate sales in America. Other “commission” systems in other countries may serve their public as they are designed to do, but  nowhere else in the world does there exist a cooperative real estate system like the one that has evolved in our country since the 1990’s, to encourage cooperation and transparency among agents, to the benefit of  the home owner and the home buyer.  It is likely this upcoming change  is  going to be much more in form than in substance.In any event, change  we experience together now  should be a  positive for our profession and for the  consumer, and promote top level communication.

Here is a link to the National Association of Realtor Settlement Fact Sheet, https://cdn.nar.realtor/sites/default/files/documents/nar-settlement-factsheet-2024-04-24.pdf

IMPLICATIONS FOR HOME BUYERS AND HOME SELLERS:

• Offers of compensation from listing agent/seller to a cooperating broker can no longer be published on MLS .  There will continue to be many ways in which buyer brokers could be compensated, including through offers of compensation communicated off MLS — as we have long believed that it is in the interests of the sellers, buyers, and their brokers to make offers of compensation — but using the MLS to communicate offers of compensation would no longer be an option. • The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to: – Fixed-fee commission paid directly by consumers – Concession from the seller – Portion of the listing broker’s compensation • Compensation would continue to be negotiable.
• This settlement would preserve the choices consumers have regarding real estate services and compensation. • After the new rule goes into effect, listing brokers and sellers could continue to offer compensation for buyer broker services, but such offers could not be communicated via the MLS. • The settlement expressly provides that sellers may communicate seller concessions — such as buyer closing costs — via the MLS provided that such concessions are not conditioned on the use of or payment to a buyer broker. NEW RULE ABOUT WRITTEN AGREEMENTS • NAR has long encouraged its members to use written agreements because they help consumers understand exactly what services and value will be provided, and for how much. • The settlement provides that MLS participants working with buyers must enter into written agreements with those buyers.

 

Summary:  Offers of compensation from listing agent/seller to a cooperating broker can no longer be published on MLS.  Only offers of concessions from Seller to Buyer can be published on MLS, which are not required to be published,  which field will not be searchable. Further,   MLS participants acting for buyers would be required to enter into written agreements with their buyers before touring a home, even prior to  providing a video tour for an absentee prospective buyer, which agreements will include job description as well as define  the fee to be earned.  These agreements can help consumers understand exactly what services and value will be provided, and for how much. Everybody deserves to get paid for his work, and the media cannot come up with a better solution than has been going on  since the 1990’s.  The truth is,  buyers have paid in the sales price they pay and sellers have  paid in net proceeds.  Essentially that will not change.  Only now the buyer will come to understand what the buyer agent should be doing for him, and how and how much the buyer’s agent is paid, which previously most buyers didn’t even think about.

IMPORTANT TAKE-AWAYS:
Commissions do not determine the  value of a property.
Commissions are not set by law, are not “fixed”, they are a factor of an existing market and services rendered.  Commissions are and have always been negotiable. 
Going forward, the buyer agent commission will potentially be determined in negotiation of the sales price far more noticeably than in the past.

As in every industry, there are and will be discount brokers.  And do not be surprised if more agents come in the door with a menu for ala carte professional services.    For example, at the short end, some brokers charge a fixed fee for simply posting the listing on MLS, leaving the seller to answer the phone, research,  stage, market, advertise effectively and creatively, hold open house, screen and arrange consistent showings, justify the price,  disclose properly, handle inspections/repairs, answer buyer concerns and objections, qualify the buyer financially,  negotiate, solve problems,  and  navigate the complicated steps to close the transaction.  That seller will be very limited in means and manner of exposure and unable to solicit support from professional networks a full service Realtor can offer.

Many of my fellow professionals and competitors can genuinely say the same,   “I love what I do.”    We consult and conference, we  show up with a marketing plan that outlines our services, a plan designed for that property and that individual seller’s goals.  Speaking for myself, I am characteristically unable to stop  at any point in the transaction where  I see there is something else needs done and I can  fix it.  Considering my many years experience and reputation  as a  licensed full time Realtor, it is unlikely any client of mine would suggest I have focused on anything besides  his well-being and success.  Looking back from the date of closing, I also doubt any of my clients, seller or buyer, wish they had committed to pay me an hourly rate.

With every market, and within every market, depending on the property being sold, and consumer needs and motivations,   the seasoned real estate professional and skilled practitioner will be indispensable in guiding sellers, when putting their property on the market for sale and  in considering their best options to implement the most effective tool in their hands for selling their property….incentive.

For a current market snapshot in the PASS-A-GRILLE AREA,
with a 6 month synopsis of Active,
Pending and Sold Properties, click the links below:
Single Family:
Condo: