National Association of Realtors (NAR) may establish rules for their members to adhere to professional standards. New lending laws from legislative bodies regulate mortgage lending and borrowing practices. For specific details, consult the Realtor association's guidelines and review the latest lending laws.
New lending laws are regulations that govern how financial institutions can issue loans to consumers. They are designed to protect borrowers from unfair practices and ensure transparency in lending transactions. It's important to stay informed about these laws to make sound financial decisions when borrowing money.
Recently, Linda Peltz realtor Fresno CA had the pleasure of sitting down with Michelle Johnson from Hero Loan Team to delve into the implications of these changes set forth by the National Association of Realtors (NAR). Join us as we navigate through these alterations and how they'll shape the real estate landscape, particularly in California.
The Basics of the New Lending Law
So, what's all the fuss about these new lending laws? The NAR's mandate brings about a significant shift in how commissions and home financing are handled in real estate transactions. But fear not, we're here to break it down for you.
Understanding Commission Dynamics
In the world of real estate, commissions are the bread and butter for agents. But with the new stipulations, there's a bit of reshuffling happening. Traditionally, sellers paid their realtor's commission along with a portion designated for the buyer's agent.
It's like inviting someone to the party and ensuring they get their fair share of the cake. However, with these changes, the process is getting a bit of a makeover.
Impact on Buyers and Sellers
Now, you might be wondering, "How does this affect me?" Well, if you're a seller, it's crucial to understand that these changes could impact your bottom line. By refusing to cover the buyer's agent commission, you might find yourself with fewer offers and prolonged days on the market. It's like trying to play a game of chess without all your pieces—you're at a disadvantage.
On the flip side, buyers need to be aware of these shifts too. After July rolls around, it's essential to ensure your agent is well-versed in navigating these changes. You don't want to find yourself in a situation where you're left high and dry because your agent isn't up to speed.
The Role of Buyer Agent
Michelle points out that buyer's agents do a ton of work behind the scenes, like navigating contracts and dealing with all sorts of people involved in the sale. They're like real estate ninjas, making sure everything goes smoothly for the buyer.
And here's the kicker: if sellers stop paying the buyer's agent commission, it could lead to more lawsuits and headaches for everyone involved. Linda Peltz realtor Fresno CA and Michelle Johnson from Hero Loan Team stress the importance of having a good buyer's agent on your side for your home financing. They're like your personal real estate guru, guiding you through the maze of home buying.
They also touch on some changes lenders are making to help cover the buyer's agent commission, which is a relief for everyone.
At the end of the day, Linda Peltz and Michelle Johnson want you to know that they've got your back. Whether you're buying or selling, having a knowledgeable team by your side is key to a smooth transaction.
Michelle Johnson
Hero Loan Team
559-314-6760
Michelle@heroloantem.com
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Call me for further details:
Linda Peltz, eXp Realty | DRE 01997670
559-353-4556
lwpproperty@gmail.com
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