The recent NAR Settlement has opened new rules that shift the burden of who pays the buyer’s agent’s commission fee. The Settlement resolved the litigation on behalf of the home sellers related to broker commissions. Under the current rules, Sellers have paid for the buyer’s agent commission. With that responsibility upended as of July, 2024 there will likely be more competition and innovation on the buyer side.
Real Estate agents forms will be updated by July 2024 and Realtors will be requiring an exclusive written buyer agreement signed by the buyer(s) BEFORE showing a buyer homes. This agreement will display the services that an agent can provide and how they expect to be compensated once a purchase has been made. MLS participants working with buyers must enter into written agreements with their buyers BEFORE the buyer tours a home. As of July 2024, we have been informed, MLS will no longer display the commission, so additional dialogue will be occurring.
As a realtor of 18 years, change happens frequently. We have become more aware of the changes in the real estate marketplace. I have engaged in the short sale era, the foreclosure era, being on a Wells Fargo foreclosure team for 3 years. We encountered the paper era, where the forms were placed in small cubbies to the paperless era today. We have endured the fax machine era to email to e-sign with a computer. Now we will work with the commissions. More conversations will be occurring, please answer your phones.
Buyers need to consider what they can afford. Buyers need to look at their savings, credit score and be pre-approved before looking at homes. Now that commissions may be changing, buyers may need to add another feature to their numbers. I am happy to give you an experienced mortgage consultant to help you if you are considering a mortgage to purchase a real estate property. We may need to add more cities to your search for homes to provide an affordable opportunity. Please feel comfortable speaking with me.
Real Estate Buyers will be considering insurance cost rates, higher home prices due to the low supply of housing and increased mortgage rates. Eight new insurance carriers have entered Florida's Insurance Market. The Florida Office of Insurance Regulation has approved Ovation Home Insurance Exchange, Manatee Insurance Exchange, Condo Owners Reciprocal Exchange, Orange Insurance Exchange, Orion180 Select Insurance Company, Orion180 Insurance Company, Mainsail Insurance Company and Tailrow Insurance Companies.
The average long-term U.S. mortgage rate rose modestly this first week of April 2024, holding below 7% as it has for much of this year. The Federal Reserve is waiting for inflation to lower its number to 2%. Keep in mind you can always refinance if the mortgage rates fall. Many times refinancing is quite helpful to gain a lower mortgage rate.
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