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NAR Settlement – Week 2

Last week we talked about what the National Association of Realtors Lawsuit Settlement means. Today, we will discuss how this settlement will impact sellers when it goes into effect in mid-July.

We know now that the settlement means that the Listing Agent and the Seller will no longer predetermine the real estate fee that the Buyer Agent will be paid at closing. Instead, the Buyer and the Buyer Agent will have to work out WHAT the buyer agent will be paid, HOW they’re going to be paid, and WHEN they’re going to be paid.

However, a SMART seller will still consider budgeting to possibly pay the Buyer Agent fee on behalf of the Buyer. When I meet with sellers, I always tell them that it’s all about your bottom line. Don’t worry about what’s in the middle between the contract price and the net at closing. What’s most important is that bottom line number that you’re going to walk away with. I will meet with you and give you an estimate of what the buy side real estate fee might be that you might want to consider budgeting for. Now, this estimate will not be in the listing agreement. This is just an estimate for you to keep in mind when it comes to negotiating an offer on your home.

The reason for this is because MOST buyers are getting a loan, and most buyers have to bring a substantial down payment in order to qualify for the loan in order to buy the house. If the buyer now has to also bring the real estate fee as part of their closing costs in order to buy the house, well they may not be able to afford to buy a house now.

So I think most sellers are still going to consider paying X amount towards buyer’s closing costs with an acceptable offer. And you don’t want to just add that amount onto the listing price, because the house still has to appraise.

Another thing to consider as a SELLER… do you really want to work with an UNREPRESENTED buyer? Buyer Agents are weeding out the buyers ahead of time that really cannot buy a house. They are determining if they can qualify for a loan, or any other factors that could impact their ability to buy. There’s a lot of factors that go into having a Buyer Agent represent a Buyer and help guide them and keep them on track all the way through closing. So, budgeting for the buyer agent’s fee will benefit you in the long run.

Remember, this doesn’t go into effect until mid-July, but if you have questions in the meantime, don’t hesitate to reach out! My team and I are on standby 7 days a week, ready to help you take the smoother road to sold.

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