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"Buyer Beware: Preparing for Changes in the Real Estate Market"

If you have been following the National Association of REALTORS® lawsuits, you see that a change is on the horizon. This change in how real estate commissions are paid and negotiated, is truly only going to affect those who are already struggling, the buyer! Let's talk about it.

Reading the settlement through the lens of certain news media site (I refuse to name), commissions are the reason the cost of housing has gone up. Hmmmm...let's see. The overwhelming purchase of homes by these corporations that were either resold at a much higher price or listed for lease at the highest price possible wouldn't be a factor? The cost-of-living increase across the board is not a factor? (Have you been grocery shopping lately?!) The shortage of listings available (less homes listed for sale) is not a factor? Of all things plus more, yet they want to blame the real estate commission. This is so not true!

Fact: Did you know the average REALTOR® makes less than $60,000/year? 

I would love for each potential buyer or even those who are owners to think about all of the real estate agents you have come across over your years who you began working with and chose someone else. That one you dropped, worked for free! How many of you go to work and come home with no paycheck? Exactly! Let's stop the madness and get to the real deal.

This change in commission negotiations will allow sellers to net more after the sale of their home but cost the buyer more depending on what they negotiate with the broker. After signing a buyer brokerage agreement and agreeing to the commission the buyer is willing to pay for representation, the buyer will no longer be able to see what the seller is willing to assist with when it comes to commissions because it will no longer be listed on MLS. So, buyers must now choose an agent with great negotiation skills as well as real estate knowledge.

Let's also state the obvious, the buyer’s agent does most of the work, yet are the ones who are treated the worst. People ghosting them, kicking them to the curb just because there's so much competition out there, and all of this after they (the buyer) have run them around the entire city because the buyer doesn't know what he/she wants!

Bottom line, things are changing. The buyer is faced with rising costs in housing, higher interest rates, and now they will have to pay for their representation. I do not suggest closing without proper representation, it is like going to court without a lawyer. One thing that may shine a little light in this darkness, there are lenders who have programs to help buyers with down payment and closing cost assistance. We still have options to help shrink the out-of-pocket costs for buyers. But in all honesty, the best solution is to get your credit together and get the best rate possible, and save, save, save!!!

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