The Property Pint: NAR Settlement and Introducing Flexible Compensation
Hello!
As I am sure you have seen on my widely followed and esteemed Instagram, Harvey Realty Group is back! I am extremely excited to be getting back to my roots and bringing excellent value and service to my clients. While the basics of real estate remain constant, the landscape is always evolving. Bringing Harvey Realty Group back will allow me the flexibility to represent my clients more effectively now and in the future.
One of the many reasons we decided to run it back is a recent development in the real estate world that could affect your home-buying or selling journey. It's important for you to be in the loop about what's going on so you can make informed choices about your real estate plans. These changes could have a big impact, and I want to make sure you're ready for whatever comes your way.
What's the Buzz About?
So, the National Association of Realtors (NAR) and the Department of Justice (DOJ) have come to a proposed settlement that might shake things up a bit in the real estate game. The recent settlement between NAR and the DOJ stems from lawsuits in Missouri, particularly the Sitzer/Burnett case, which alleged collusion and artificially inflating real estate agent commissions. Honestly, I have plenty of opinions on this. However, this isn’t about me.
So, here’s what you need to know:
The Details of the Settlement
There are two big changes on the horizon:No more offering compensation on the Multiple Listing Service (MLS) to buyer agents – currently, an agent and a seller agree to a total commission being paid by the seller and then decide how much of that will be offered to the buyer’s agent. The compensation being offered to the buyer’s agent is then posted on the MLS so everyone, including the agent, is aware.Before you go checking out homes, your agent will need to have a sit-down with you and put things in writing. This represents a pretty significant shift as many first-time buyers meet their agent for the first time at their initial showing. It also means calling an agent on a whim to show you a house may be less common, or will at least require a formal agreement of some kind.These new rules are meant to make things more transparent for you, so you know exactly what's going on with compensation and the services your agent provides.
How it Could Affect you & Why Having Representation Is Key
For Buyers
Having a real estate agent by your side as a buyer means having someone who's got your back. They can guide you through the whole process, help you find the right home, and negotiate on your behalf. Plus, they're pros at navigating all the details that come with buying a home.
Under the terms of the proposed settlement, buyers will need to agree to pay their agent a commission at close (or another type of fee structure) prior to even seeing a home. A seller could still cover the commission of the buyer’s agent. However, this will need to be negotiated as part of the purchase contract.
For Sellers
Seller paid buyer agent commission is still allowed! In fact, in many cases, it is highly encouraged as it can increase the number of buyers able to purchase your home. It just needs to take place outside of the MLS and, again, be negotiated as part of the transaction.
While selling a home is not the most complicated process one could endure, there are many potential pitfalls that need to be avoided. Having a real estate agent in your corner can make all the difference. They can help you set the right price, market your home effectively, connect with important partners (contractors, stagers, photographers, etc…) and handle all the negotiations and paperwork. Having an expert on your side can take a load off your shoulders and make the selling process much smoother.
Introducing Flexible Compensation Options
In the ever-evolving real estate market, flexibility and adaptability are key to meeting the diverse needs of home buyers and sellers. With this in mind, we are excited to introduce a new, innovative approach to compensation that puts you in control. Our flexible compensation model is designed to adapt to your unique situation, offering both traditional and alternative payment options.
Options for Sellers
As a seller, you now have the choice of how you wish to compensate for our premium real estate services. You can opt for:
Traditional Commission Model: Continue with the conventional method of paying a commission upon the successful close of escrow. This option offers the simplicity and familiarity of a well-established practice.Monthly Payment Plan: Alternatively, you can choose a more flexible approach by paying a lower monthly amount for the same excellent representation. This option not only allows for potential savings but also gives you more flexibility in managing your finances during the selling process. Additionally, this could provide more leeway for contributing towards the buyer’s agent commission, if so desired.
Options for Buyers
For buyers, we understand the importance of having control and flexibility during the home-buying journey.
During our initial consultation I will tailor a compensation plan that aligns with your timeline, criteria, and specific situation. Whether it is sticking with a commission paid upon closing or even a potential monthly fee, the goal is to put more control in your hands as you navigate the home-buying process. If we are able to obtain a commission from the seller, we will waive or refund the buyer commission/fee!
Embrace Flexibility in Your Real Estate Transactions
Our goal is to provide you with choices that reflect your individual needs and circumstances. Whether you are buying or selling, our flexible compensation options are designed to offer you more control, transparency, and potential savings. We are here to support you every step of the way with expertise, dedication, and now, even more, flexibility.
Let's navigate the real estate market together, with options tailored just for you.
What I am Drinking this Month
Crux Gimme Mo IPA is like finding a new favorite cozy spot in your home—totally chill and inviting. It's like a vacation without the bite of too many mosquitoes (or hops). Grab a can, take a sip, and just enjoy the laid-back vibes; it's the kind of balanced brew that makes you appreciate the simple things, like a good beer and a comfy couch. And, yes, it is currently on tap at Turner Pizza and Taphouse.
We've Got Your Back
If you've got any questions or want more info on the lawsuit, my flexible compensation, or my beer choice of the month I'd love to grab a coffee, a Crux, or slice of pizza with you. Your trust in me and my team means everything, and we're dedicated to helping you get from where you are to where you want to be!
Let’s chat soon!