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Zoom Call 5.21.24 Lynnea Miller NAR Legislative Update

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

Zoom Call  5.21.24   Lynnea Miller NAR Legislative Update

The blog presentation this week was given by Lynnea Miller who recently attended the NAR Legislative meetings in Washington, DC.  This was her first visit to a NAR meeting and she was sent by request of a new Oregon regional MLS. There was app 8,000 people that attended this gathering 

As she was not on any of the special committees that were meeting, she attended more of the general meetings as relates to MLS systems.

One of the sessions she attended was given by Trey Gowdy and Joe Cunningham, both former politicians who were consistent on points regarding the dividedness of the country; the importance of having an agent with real estate transactions, they were united in the belief that capital gains on the sale of homes should not be taxed. They were also put off with lawyers getting 40% compensation on class action suits and so many are appalled that agents would be getting 3% on a real estate sale.

They also offered that our current Congress is only made up of 18% of members with any military experience where back in the 60's and 70's there was closer to 70% which leads to a substantial disconnect between veterans and politicians. They were also of the belief that Congress needs to put country first and party second. 

She did attend the legislative meeting with one of the representatives from her state. That person was not current on the NAR issue but was fully appreciative of needing an agent to represent oneself in a real estate transaction and the need to compensate that agent for their work.

Tools for the New Business Model

Going forward:


All Buyers must have a written agreement with an agent, and it must be in place before showing any property. and it applies only to residential properties.

The agreement must specify fees.

It also needs to specify where the fees are coming from and cannot exceed the amounts specified on the agreement.

If it is demonstrated through the process of working a contract with a seller, that the compensation offered is greater than on the original buyer agreement, then that agreement can be amended.

It was also strongly suggested, several times that all should take the free ABR course, even if they have taken it in the past, as it has changed.

Review of the Settlement

This presentation at the meetings was one of the most anticipated and attended. the recap of that meeting is noted in the insert below.

The reason NAR settled was to protect agents across the country. NAR had been considering filing Chapter 11 bankruptcy, and to protect, all of its members from copycat litigation.

The settlement covers all NAR members, brokerages state and territorial associations and MLS systems.

It obtained a release of liability and implementation of new requirements will be on August 17.
An Appendix B must be implemented on the MLS. This appendix will restate the rules of the agreement.

It is also important is that both sellers and buyers understand they have choices.

Offers of Compensation

Compensation needs to be thoroughly explained.

Sellers can continue to compensate buyer's agents with co-op commission not shown on MLS.

Affordability for all buyers is now impacted.

Interested Party Compensation (IPC) allowed with FHA, and Freddie and Fannie loans, but still cannot be financed. Seller concessions are still allowed but not fees.

VA loans still do not allow for buyer agent compensation as a veteran obligation, but it is still an issue that is recognized.

Financing of commissions is not allowed and was banned by Congress in 1981.

With regards to Fair Housing and Code of Ethics, there needs to be consistency with all that bring an offer.

An example was offered regarding a home listed for sale by an attendee and the agent that had the highest offer asked that the commission be raised. The seller was in agreement, however as there had been multiple offers, all the other agents that had submitted offers needed to be notified as well, assuming it would have changed their client's offers.

Changes to MLS

The issue of compensation has impacted part of the information on the MLS. Compensation has always been noted on the system and it has a bearing on the sales prices as they are essentially seller concessions and not all may have been similarly.

The absence of this information can have an impact on appraisals and getting fair market value as well.

This is historical data and is still an issue that is being considered by NAR lawyers. Still being considered is creating a field allowing for seller concessions on compensation as a yes or no item.

A detailed summary of the changes can be found on the NAR site,

NAR Settlement Agreement

It was a good call and not as well attended as it should have been considering the issue so impacts our business.

Zoom Call  5.21.24   Lynnea Miller NAR Legislative Update

Posted by

 

Edward (Ed) Silva
Broker Associate

Serving Central Connecticut Sellers and Buyers

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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ed, great update from Lynnea.   Yesterday got an email from one of my lenders, and the VA is allowing BB fees to be paid.    I also thought I heard Fannie & Freddie will now look at concessions differently when RE fees are included.

May 23, 2024 12:45 PM
Ed Silva, 203-206-0754

Joan Cox   It was a good call and  Lynnea Miller presented well.  If the government lending sources would relax a little on these fees it would certainly help the buyers that use them and have limited resources.

May 23, 2024 02:29 PM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Wow Ed Silva, 203-206-0754 .  I had no idea you were doing this and am honored that you thought my presentation was worth a blog.

May 23, 2024 01:26 PM
Ed Silva, 203-206-0754

Lynnea Miller   with such a hot topic I would have expected more attendees and as noted at the call, many wanted your presentation file for reference.

I try to do a recap on all the calls so as to get more people involved and also for those that would have but couldn't attend.

May 23, 2024 02:31 PM
Hannah Williams

Lynnea Miller so that you are made aware Ed Silva, 203-206-0754 writes a blog every week about our Zoom meetings. Perhaps you may be interested in reading them better yet attending the Zoom meetings 

May 23, 2024 03:30 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Ed,

Sounds like a great Zoom meeting and I would have been there but had a very important listing appointment and with grandsons graduation this week, school getting out and Memorial week-end upon us WAY too many things happening. I think we will see ongoing changes as they iron out the mechanics of how this will all work. Joan Cox comments just shows you there is a lot trying to be worked out.

May 23, 2024 01:26 PM
Ed Silva, 203-206-0754

Dorie Dillard Austin TX     Lynnea did a great job on the call and did a good job of passing along the information.

May 23, 2024 02:32 PM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hi Joan Cox .  I heard the same as well and am very happy that they are getting this worked out for our veterans. And yes, Fannie and Freddie are looking at buyer agent fees that the buyer agent has negotiated with their buyer that the seller is willing to pay differently than interested party contributions. Which means for FHA loans which top at 3% that the seller can contribute to buyer closing costs, asking the seller to also cover a buyer agent compensation fee can happen if the seller agrees.

May 23, 2024 01:30 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Ed,
I was unable to attend yesterday's session, so I appreciate the summary of  Lynnea Miller's presentation.

May 23, 2024 01:45 PM
Ed Silva, 203-206-0754

Carol Williams   did you at least score well?

May 23, 2024 02:33 PM
Carol Williams

Ed Silva, 203-206-0754 
Not as well as I wanted to but I did win 4 free rounds of golf and some cash for accuracy drive.

May 23, 2024 02:36 PM
Ed Silva, 203-206-0754

Carol Williams   I am still a month away from playing my first golf of the year in CT

May 23, 2024 03:05 PM
Carol Williams

Do you have a short golf season, Ed Silva, 203-206-0754? We can usually play in central Washington from March through October and sometimes later, depending on the weather, of course.

May 23, 2024 04:00 PM
John Pusa
Glendale, CA

Hello Ed Silva, 203-206-0754 I attended and it was a good educational zoom meeting. 

May 23, 2024 02:42 PM
Ed Silva, 203-206-0754

John Pusa   and your presence was duly noted

May 23, 2024 03:06 PM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Thank you for the re-cap, Ed. My broker also went to D.C. at the same time to gain information on what's happening with the settlement. 

May 23, 2024 03:31 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Ed Silva, 203-206-0754  Another wonderful recap on the Zoom meeting. Sorry I missed it 

May 23, 2024 03:32 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Ed:

Thanks so much for the summary of Lynnea's presentation earlier this week...I'm sorry that I was not able to attend as I was really looking forward to it. There was clearly a lot of good information presented.

Jeff

May 23, 2024 04:44 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Ed- I loved Lynnea Miller's presentation!!!! It was informative and easy to understand. 

May 23, 2024 06:14 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Wow, it sounds like a lot was discussed at this zoom meeting and that Lynnea Miller had a lot of great insights!

May 24, 2024 04:49 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Excellent recap, Ed... from you and Lynnea. The good news is that the VA has just announced a temporary fix for VA loans where agent compensation can be included. Hopefully, that will lead to permanent fix.

May 24, 2024 05:59 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The presentation by Lynnea Miller was well done and provided excellent information.

May 24, 2024 07:05 AM