Graebel Companies, Inc.’s Post

Buying a home has always come with challenges. This summer, as the buying landscape goes through industry-wide updates, it's more important than ever to stay up-to-date on the shifting details. The National Association of Realtors® settlement could reshape the U.S. home buying and selling process. What does this mean for mobile employees and mobility programs? Dive into part two of our series to explore the impacts and possible solutions: https://grbl.co/4xhccc #RealEstate #TalentMobility

The recent National Association of Realtors® settlement has mobility managers questioning how their mobile employees will work with real estate agents going forward. It’s crucial that mobility managers understand the changes in commission practices so that they can provide the best policies and guidance. Graebel has identified three primary agent compensation changes that will shift the way homes are bought and sold in the U.S.: https://grbl.co/z1pt2a   #talentmobility #relocation #realestate

Boom! Good riddance. Let the market decide on a contract by contract basis and keep that transaction between the buyer, his agent, and the buyers agent. No one should have an arbitrary Carte Blanche on your home equity. Geez, the NAR should have lobbied for Safe Harbors!😂 Perhaps every medical device, pharma, and service company should sue every GPO and the federal govt over mandatory “admin fees”! The internet has empowered homeowners with a wealth of information at their fingertips. They can browse listings, compare prices, and even take virtual tours without ever leaving their homes. This shift in the real estate landscape has made the role of the realtor more about facilitating the transaction rather than providing information. Homeowners now have more control and agency in the buying and selling process, making it a win for them. The realtor's role is still crucial in facilitating access to the properties, but the power dynamic has shifted in favor of the consumer.

It is incumbent upon current prospective buyers that this action will not lower current home prices. It will force RE brokerage companies to develop new compensation plans and force them to justify their "requested compensation". This judgment creates greater negotiation flexibility. The lessening of commission should allow sellers to keep a larger portion of their net proceeds. The true RE professional will adapt and continue to thrive and succeed. The part time licensed RE agent will be forced to find another gig. We need to remember that RE agents are professionals in guiding individuals in the purchase/selling of one of their highest price personal assets.

The end of traditional seller-paid commissions in the US. Historically, home sellers in the U.S. have paid both their own and the buyer's agent commissions, typically around 5-6% of the sale price, higher than in many other countries.  Starting in July, sellers will not have to specify a commission for the buyer's agent, leading to more negotiation and potentially lower costs. This means buyers may need to start paying their own buyers agents, changing how people buy homes similar to the Australian model.

Knowledge is power

Realty is a plagued by threats of homeless occupants. The inhabitancy of American homes is a research topic that is barely instituted or scientifically exacted. The following legislative changes curtail industry speculations that realtors are exclusively in it for financial gains. Do you know your rights as American citizens? For search, ceasure, and occupancy as stated in the Bill of Rights? Home ownership is set up for massive legal violations. Set the precedent for consumer awareness by reading the article below.

Big shift on the horizon for home buying and selling. Here's an overview to help prepare for the changes ahead.

Tuesday Tip: Later this week, some big changes are happening in real estate and how real estate commissions are disclosed/negotiated. Some key take aways here are: 1. Real estate agents will need to disclose their commission and have a buyer representation agreement signed before showing a home to a prospective buyer. 2. Listing agents/sellers are no longer allowed to advertise an offer to pay a buyer's agent commission through the multiple listing service (MLS). This means that in order to ensure that the seller will pay the buyer's agent's commission, that will need to be addressed when the buyer makes an offer. If it's not, that could mean more out of pocket costs to the buyer at closing. Change is always difficult but I hope that this new way of doing business doesn't take long to become normalized and that we don't see more buyers go unrepresented because of this. Buying a home is a process from finding the right home, negotiating with the seller, and ensuring a smooth closing/transfer of keys, etc. Having someone in your corner and looking out for your best interests is very important when making one of the largest purchases of your life. https://lnkd.in/em_6jNvZ

We have had some great questions come up from sellers, clients, and friends recently in regards to buyer agency compensation. In general, Sellers pay their listing agent and then make an offer of compensation to the agent that represents a buyer. The reason for this is that the buyer often uses ALL of their financial resources for their down payment, to obtain a loan, and to pay all of the other expenses associated with a home purchase. Starting July 2024, NAR-affiliated multiple listing services can no longer display compensation to buyer’s agents in their system. Buyer’s agents will need to contact the listing agent to find out if compensation is being offered to a buyer’s broker. Buyers can also pay their buyer’s broker on their own, or ask the seller to pay their buyer’s broker. Offering compensation to a buyer's agent will help attract as many buyers as possible to your property. It will also reduce friction from the buyer's purchase process, as many homes they are looking at will have their agent's compensation covered. If you do not offer compensation, the buyer will have to strategize with their lender to work out a creative way to adjust for that in their offer. They may ultimately still ask for compensation in their offer. Offering compensation sends a powerful signal to the market to attract as many quality buyers as possible. We believe strongly that offering a compensation to a buyer's agent will net you the best results when selling your property.