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Want to get rich quick selling Florida real estate? Think again.

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Tiago Ribeiro paced the lobby of the Four Points by Sheraton hotel in Tampa on Saturday night searching for a miracle. He had 24 hours to find someone who could lend him $30,000 to buy a foreclosed property in Fort Myers.

“Ask me about a 35% APY (investment) opportunity,” read the laminated sign hanging from his neck.

Tiago Ribeiro wears a sign enticing attendees to an investment opportunity at the Real Estate Raw seminar hosted by Ben Mallah on Feb. 24 in Tampa. [ LUIS SANTANA | Times ]

Ribeiro and 160 others paid $250 a pop to attend an event put on by Tampa Bay real estate mogul and YouTube personality Ben Mallah.

A high school dropout, Mallah got his start buying dilapidated apartments, fixing them up and renting them through Section 8 and other federal government programs. Now he lives in a $16.5 million gulf-front mansion, drives a Rolls-Royce (or a Bentley, depending on the day) and wears a thick gold chain with a blingy medallion in the shape of a dollar sign.

“You can do it,” Mallah preached to the crowd from behind his signature aviator sunglasses. “I know it, I’ve seen it, I’ve done it.”

Since the start of the COVID-19 pandemic, droves of wannabe real estate investors have flocked to Florida chasing the promise of streets paved with gold. But rising interest rates, home prices and insurance costs have created hurdles for newcomers looking to get rich quick.

“It’s a very tough market right now,” Mallah told the Tampa Bay Times. “It’s impossible to find a decent deal.”

Ben Mallah, left, speaks on stage with his sons during his Real Estate Raw seminar on Feb. 24 in Tampa. [ LUIS SANTANA | Times ]

Last year, Mallah sold off some of his assets, including an $8.7 million home in Belleair, a $28 million hotel in Fort Lauderdale and several shopping plazas.

He started holding events like this one to connect with fans and maybe help some people along the way.

There was no rehearsal beforehand. Mallah and his sons got up on stage and spoke to the crowd off the cuff. They pledged to stay as late as they needed to take make sure everyone would get their chance to chat with them and snap a photo.

A group of dancers in colorful showgirl outfits came out to shake and shimmy for the crowd during a break.

The point is to have a good time, Mallah said. He’s not interested in selling his followers instructional courses or raising money for his real estate ventures, he said. That’s already a crowded space.

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“It’s not a gimmick,” he said. “It’s not a seminar. It’s about meeting people, networking.”

This message has helped him gain a loyal following. On Saturday, there were fans that flew in from New York, Pennsylvania, Ohio and Michigan to see him.

Elizabeth Robles, 35, said she’s been watching Mallah’s videos and attending his events for a decade. He was the one who inspired her to move from Las Vegas to Clearwater and purchase her first condo.

“He’s very motivational,” she said. “He makes you want more from life.”

Even if, in this economy, that means working harder to get it.

Elizabeth Robles listens to Ben Mallah speak during his Real Estate Raw seminar on Feb. 24 in Tampa. [ LUIS SANTANA | Times ]

For Ribeiro, success came easy at first.

The Orlando native took advantage of historically low interest rates in 2021 and snagged his first home in Orange County for $200,000. He then bought his parents a home in Osceola County and moved in with them so he could rent out the first house.

He figured buying a third property would be a breeze. But it hasn’t panned out that way.

“Sellers have us in a chokehold right now,” he said. “There’s really nothing good available for a fair price.”

Adriana Crisanti, a bartender in St. Petersburg, attended Saturday’s event seeking guidance. During the height of the pandemic, her bar was flooded with real estate agents bragging about how much money they were making.

“I thought I could do the same,” said the 28-year-old.

Adriana Crisanti listens to Ben Mallah speak during his Real Estate Raw seminar on Feb. 24 in Tampa. [ LUIS SANTANA | Times ]

Crisanti got her real estate license seven months ago but still hasn’t sold her first home. It’s been discouraging, both for her and for her clients who have lived in the area for a long time.

“They’re not accustomed to the change that’s going on,” she said.

In January 2019, the median sale price across Tampa, St. Petersburg and Clearwater was $225,280. Now it’s $400,000, according to the most recent data from Greater Tampa Realtors.

While higher home values can lead to more profits, it also makes it harder to get started, said Casey Lawhorn, 31. After building a sizable portfolio of rental properties in his home state of Kentucky, he was inspired in part by Mallah to start doing business in the Tampa Bay area in 2020. He moved down last year.

Finding deals has been a challenge in an increasingly crowded market. Sometimes he feels like David battling Goliath, competing for the same homes as large investment firms.

“Back home you could offer under listing,” he said. “Here you could offer $80k over listing and still be outbid.”

Attendees to a Real Estate Raw seminar by Ben Mallah make their way to the ballroom on Feb. 24 in Tampa. [ LUIS SANTANA | Times ]

Mallah told the crowd it’s something he’s dealt with too — corporations coming in with cash offers that the average person could not afford. Sometimes you can beat the big guys by being more nimble — offering better terms and shorter time frames to close the deal. Other times, there’s nothing you can do.

That’s because making money in real estate often comes down to timing, Mallah said.

“Sometimes you’ve got to be patient and you’ve got to wait.”

Ribeiro, 25, wasn’t able to find an investor Saturday but he’s not giving up. Even if this property doesn’t pan out, he has faith the next one will.

He didn’t grow up rich. He has a day job as a consultant but 75% of his net worth comes from his real estate holdings, he said.

Though he’s faced more obstacles than he initially bargained for, real estate still feels like an industry where it’s possible to make something out of nothing.

“Anyone can get into it,” he said. “All you have to do is work hard and learn the market.”

Tiago Ribeiro listens during a Real Estate Raw seminar hosted by Ben Mallah on Feb. 24 in Tampa. [ LUIS SANTANA | Times ]



This article was originally published by a www.tampabay.com . Read the Original article here. .

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With Real Estate Commission Rules Changing, Should I Wait to Buy a House?

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“I want to buy a house soon, but I read that real estate commissions are going down. Should I wait until the new rules are in place?”

You’re right to step back and re-strategize your home purchase after the National Association of Realtors’ recent legal settlement. If it’s approved by the court, the real-estate industry is on the precipice of change that could impact the home buying process and what you pay for it. Whether it’s best to act now or to wait, though, will depend on your budget, how much work you want to put into the process and your need for certainty.

Here’s the gist of what’s happening: Lawsuits were filed against NAR, a trade group representing 1.5 million real-estate agents, questioning its cooperative-compensation rule. Under this rule, sellers cover the commissions for both their agent and the buyer’s, with the cut offered to buyer’s agents advertised in an agent-facing database known as a multiple listing service, or MLS. Critics say the practice reduces competition and inflates commissions and home prices.

In March, plaintiffs accepted a settlement proposed by NAR, which would remove offers of compensation from the MLS and require agents to sign contracts with buyers. The rules are expected to ultimately lower costs, however, buyers may need to pay agents out of pocket. If approved by the court, the changes are set to go into effect in August.

With this all in mind, there is no hard-and-fast answer as to whether you should buy now or wait until those changes roll around. There are, however, cases for both paths.

The case for buying now

If you want a full-service agent and assurance that the seller will foot the bill—then buying before July is probably best.

“The NAR settlement is creating lots of uncertainty, and if there’s anything people don’t like when making major life decisions and purchases, it’s that,” says Dana Bull, a real-estate agent and consultant in Massachusetts. “If you buy right now, you’ll have a greater sense of what to expect.”

By buying now, you’ll likely fall under the existing agent commission model where the seller pays. The total is usually 5% to 6% of the home price—with 2.5% to 3% going to each agent. In exchange for that cut, your agent will usually suggest listings, tour properties with you and negotiate on your behalf. Depending on what state you live in, they may also draw up contracts and attend your closing.

“The home buying journey will not be altered—at least for the next few months,” says Alyssa Brody, co-founder of Development Marketing Team, a real-estate brokerage with branches in New York City and Miami.

The case for waiting

If you’re comfortable negotiating and willing to handle some of the home-search process on your own, waiting to buy could pay off. “If you’re more focused on maximizing your investment and minimizing costs, waiting until the new rules come into play could be beneficial,” Brody says.

Starting in mid-August, buyers will sign a separate contract with their agent, opening the door for negotiation. Some agents may charge an hourly rate or offer a la carte services. This would allow buyers to choose which services they want to do themselves (browsing listings and touring homes, perhaps) and which they want to pay for (maybe negotiating and drawing up the contract).

Additional savings could come from lower home prices. With sellers no longer footing the bill for buyer agents, some experts believe they will sell their homes for less.

This all depends on market conditions, though, and agents broadly agree that prices are unlikely to drop much in the short-term. By summer, the Federal Reserve is expected to start cutting interest rates, which means lower mortgage rates and higher demand. “With our limited inventory, competition will be fierce,” says Bret Weinstein, founder of Guide Real Estate in Englewood, Colo.

If you choose to wait, be ready for a bumpy ride. “It will cause a shake-up, and no one knows exactly how the open market will react,” Bull says. “There will be lots of confusion, and as a buyer, you could be stuck in the crosshairs while the entire industry adjusts to the change.”

To sell or not to sell

The considerations are similar if you’re on the fence about selling. If you are comfortable with the existing model, sell now. For the lowest costs, you might want to wait until August.

Take note, though: Not everyone is convinced things will change once the new rules are in place. “I believe sellers will continue to pay buyer agents in big markets like Los Angeles, because it’s in their best interests,” says Michael Nourmand, president of real-estate firm Nourmand & Associates in Beverly Hills, Calif. “It’s best for buyer affordability, they don’t want to limit their buyer pool, and negotiating a commission is another variable that could derail the transaction.”

Talk to a few real-estate agents about the pros and cons of skipping the buyer-agent commission in your area. They can advise you on what it might mean for your sale, given current market conditions.



This article was originally published by a www.wsj.com . Read the Original article here. .

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National Association of Realtors® Reminds Members and Consumers of Real Estate Practice

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CHICAGO (August 1, 2024) – The National Association of Realtors® reminds members, real estate professionals, and consumers that on August 17, 2024 the practice changes following NAR’s Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions will be implemented across the country.

NAR recommends all MLSs implement practice changes by August 17. Realtor® MLSs (those owned exclusively by one or more Realtor® Associations) must implement the changes by this date to remain in compliance with NAR policy.

Under the settlement, the following practice changes will take effect:

Offers of compensation will be prohibited on Multiple Listing Services (MLSs). Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers—especially first-time homebuyers—increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool and ensuring they receive the best offer possible for their property.
Agents working with a buyer must enter into a written buyer agreement before touring a home. The practice changes do not require an agency agreement or dictate any type of relationship. NAR encourages all members to address form changes and prepare to educate real estate professionals and consumers about revised forms as soon as possible ahead of August 17. NAR policy does not dictate terms of buyer agreements, but NAR has created resources to assist with implementation of the settlement terms—such as tips on clarity and emphasizing consumer choice and a “Written Buyer Agreements 101” resource.

“NAR members are dedicated, intelligent, and highly adaptable experts in their fields—that’s why Realtors® are such an integral part of the homebuying and selling process,” said Kevin Sears, President of NAR. “These changes help to further empower consumers with clarity and choice when buying and selling a home. As the August 17 practice change implementation date approaches, I am confident in our members’ abilities to prepare for and embrace this evolution of our industry and help to guide consumers in the new landscape.”

Consumers can find additional information on what these changes mean for their homebuying and selling experiences in NAR’s buyers and sellers guides. For NAR members, the practice changes are outlined in detail here, and detailed information is available in NAR’s FAQ. Please visit facts.realtor for the latest updates on the settlement and practice changes.

About the National Association of Realtors®

The National Association of Realtors® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.

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This article was originally published by a www.nar.realtor . Read the Original article here. .

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Only Giuliani’s Real Estate Can Save Him Now

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Photo: Drew Angerer/Getty

How much money is Rudy Giuliani worth? Ever since he filed for bankruptcy after a judge ruled last December that he owed two former Georgia election workers $148 million in damages as part of their defamation-suit victory, that has been the open question. (He claimed to have only $1 million to $10 million in assets and $153 million in debts.) Now we may never know. After months of spending tons of money while claiming he has no money, a judge dismissed his bankruptcy case, but Giuliani’s lawyers claimed he couldn’t even pay the fees he owed to his creditors’s financial adviser, a basic condition of closing the case. The latest chapter in this saga has concluded with the former mayor agreeing to a last-minute deal to pay off the $400,000 he owes to the adviser. He’ll have to pay $100,000 in cash up front and then pay the rest in profits from a sale of either his Upper East Side apartment or his Florida condo. (The judge still has to sign off on the agreement.)

The stately living room of Rudy Giuliani’s apartment featured in this listing photo is a great place to record a Cameo if you’re strapped for cash.
Photo: Sothebys

Which one will sell first? Giuliani listed his three-bedroom, three-bathroom Upper East Side apartment last year for $6.5 million with the price dropping to $5.7 million earlier this year. Locationwise, it’s just steps from Central Park, and its rooms, while dated, include a wood-paneled library and a grand dining room with a conservatory — all of it suitable for a mayor but perhaps too grandiose for a podcast host. So far, he hasn’t been forced to list the two-bedroom lakefront Palm Beach condo he plans to live in full time, but it’s estimated to be worth around $3.5 million. (Giuliani’s lawyer wrote in a motion in March, “Surely the committee does not intend the debtor to join the ranks of the homeless?”) The new deal allows Giuliani to avoid testifying under oath about his finances, but it doesn’t absolve him of the roughly $540,000 he owes the IRS in back taxes or the multiple legal debts he’s still on the hook for. With the bankruptcy case settled, the former election workers, Ruby Freeman and Shaye Moss, will now be able to move forward in the D.C. court system to seek the $148 million they are still owed. And Giuliani will have to hunker down in whatever multimillion-dollar property he has left and appeal — or figure out more ways (perhaps more profitable than coffee) to make up the rest of what he owes.

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This article was originally published by a www.curbed.com . Read the Original article here. .

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Settlement of a Federal Lawsuit Will Change How Real Estate Agents Are Paid

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click to enlarge James Buck Vicky Phillips is selling her Westford home without a Realtor.

Before she put her Westford home on the market, Vicky Phillips did some math. With the four-bedroom home priced at $808,000, Phillips estimated it would cost her about $48,000 in commissions for a real estate agent to handle the sale.

Phillips decided to keep that money and sell the home herself. In May, she posted it on Picket Fence Preview, a website featuring homes that are for sale by the owner. She also paid a real estate agent $499 to offer the house on the multiple listing service, a system that shows all the properties for sale through brokers.

“It isn’t complicated,” said Phillips, who owns a business and noted that she has signed much more detailed contracts than the one she’ll use in selling her home.

She’s shown her home five times, a process that usually takes her about two hours, including tidying up. If she contracted with a real estate agent to handle the sale, that person would expect the standard 2 or 3 percent commission, as much as $24,000. If a buyer’s agent were involved, as is often the case, that person would take another 2 or 3 percent of the sale price.

“Real estate agents are great, but what are you paying for?” Phillips asked.

Questions like Phillips’ have roiled the real estate profession for years, and recently a rebellion of home sellers succeeded. In March, the National Association of Realtors agreed to pay $418 million in damages to settle a 2019 federal lawsuit that accused the organization of violating antitrust laws by adopting rules that created an industry-wide standard commission.

The settlement specifies that the NAR must drop rules that require the agent for the home seller to offer payment to the agent for the buyer. Those rules have resulted in the standard 5 to 6 percent commission being incorporated into the price of most homes for sale. Under the settlement, it will be easier for buyers and sellers to negotiate commissions with their real estate agents.

The settlement made national headlines, with some analysts predicting that the price of buying a home would drop significantly as a result of the decline in commissions.

Smaller commissions would be good news for Vermont home sellers, but local experts say the soaring cost of buying a house is mainly the result of the spike in home values. The median price of a house sold in Chittenden County climbed by more than $100,000 between 2020 and last year, to $460,500. With the typical commission of 5 or 6 percent, someone selling that home would pay the agents involved as much as $27,000.

Many real estate agents insist the national settlement won’t change anything in Vermont. Local agents have always been up front with homebuyers and sellers about how much commissions would cost — and have always been open to negotiation, said Kathy Sweeten, CEO of the Vermont Association of Realtors.

“It’s not going to have a huge effect, because we already do this,” Sweeten said in an interview. That’s the position many of Vermont’s real estate agencies are taking, too.

“We’ve been doing business this way for many years now with our agency disclosures,” Four Seasons Sotheby’s International Realty CEO Laurie Mecier-Brochu said.

But home industry analysts say the settlement will likely free up consumers to bargain with agents for their services. The Consumer Federation of America, an advocate for nonprofit consumer groups, said that while negotiating has always been an option in theory, contracts are usually written by lawyers for local real estate associations. Under the existing system, many homebuyers are unaware they’re paying a commission of 2 or 3 percent to their agent, because it’s incorporated into the home seller’s fees and therefore into the price of the home.

Starting next month, buyers who hire an agent to show them homes will be asked to sign a contract spelling out what they will pay the agent if there is a sale, so the cost will not be hidden in the sale price of the home. The advocacy group said the settlement will create more freedom and transparency for agents and consumers.

Change won’t happen overnight.

“The residential real estate marketplace will take some time, perhaps several years, to fully process the implications of this settlement,” the Consumer Federation said in a statement after the NAR settlement was announced.

Not all agents are paid by commission. Some charge a flat fee — $3,500 is common — instead of a commission, using that transparency as a selling point. And there have always been homeowners such as Phillips who avoid commissions altogether by tackling home sales on their own.

Changes in technology are making that easier. Nowadays, websites such as Zillow and Redfin display the homes that are listed on the MLS, making them available online to anyone who knows how to look for them. When she was shopping for a house two decades ago, Phillips noted, the real estate agent would print off MLS listings and mail them to her, a cumbersome process that gave the agent control over which properties Phillips could consider.

Online listing services also help would-be home sellers see what similar properties are going for — and provide valuable information to buyers, such as how much the home sold for in the past.

“Before, you couldn’t really go on Zillow and find comparables and past histories and what the taxes were” for houses on the MLS, Phillips added.

Demand for homes is high in Vermont, making it a good time for sellers to try their hand at going it alone.

Before she put her Montpelier modular home on the market in May, Tammy Parish asked for advice on Front Porch Forum about selling without an agent. She got a flurry of responses from sellers who had done that — as well as several pleas from people who wanted to tour her home.

“My phone blew up. It was people giving me advice saying, ‘Yes, you can do it’ or ‘No, it’s more detailed than you think,'” said Parish, who added that she sold her home for $240,000 the following weekend to one of the people who had responded to her query.

Parish hired a lawyer to help with a contract, paying around $2,000, she said. A 5 percent commission would have set her back around $12,000.

“That’s a lot of money to give to someone else for putting pictures out there and marketing it,” she said.

Phillips said more than 25 agents have gotten in touch since she posted an ad for her Westford home on Front Porch Forum in May.

“They all want to represent me,” said Phillips, who thinks a lack of inventory and high interest rates may have created a very slow market for agents. She added that there are times when using an agent is essential. She’s looking for property in Asheville, N.C., where she’ll build her next home, and she said the agent alerted her that land prices were lower in a neighboring town because of a local paper mill.

“She said, ‘On the right day you don’t smell it, but on a bad day, not only do you smell it everywhere, the fumes are toxic,'” Phillips said. “Good advice.”

If more negotiations lead to lower commissions, as expected, some agents might leave the profession. The number of real estate agents licensed in Vermont jumped during the pandemic, reaching 3,072 last year — the most since the Secretary of State’s Office started keeping records in 2008. Right now, 2,843 people are licensed to sell real estate, according to the office.

click to enlarge James Buck Mikail Stein of RE/MAX North Professionals showing a house

It’s a tough way to make a living, according to Mikail Stein of RE/MAX North Professionals, who sells about 40 homes a year. Stein said his overhead is high and his hours are long. Income is unpredictable.

“Only in the last two years of my career have I had a winter where I wasn’t freaking out about where things were financially,” Stein said. “And hourly-wise, most people do way better than me.”

Stein thinks career professionals such as him will stay in the business, and if commissions drop, part-time, new or unskilled agents will be most likely to leave.

“I hope what it ends up doing is providing the public with better service,” he said of the NAR settlement. “For those of us who do bring high service, the compensation will be just. And for those who don’t, the market will say, ‘You’re not providing enough.'”

A Game-Changing Federal Case

The lawsuit
A group of Missourians who had used real estate agents to sell their homes filed a 2019 class-action lawsuit against the 1.5 million member National Association of Realtors and several multistate real estate brokerages. The suit alleged that the defendants had conspired to inflate real estate commissions paid by the homeowners.

The details
The lawsuit took aim at the NAR’s “cooperative compensation” rule, which requires the home seller’s agent to offer compensation to the agent for the buyer in order to add the home to a multiple listing service. The suit charged that the NAR, by controlling almost all the multiple listing services in the U.S., was wielding monopoly power to keep commissions artificially high.

The verdict
A federal jury in Missouri ruled for the homeowners in October 2023, awarding them $1.8 billion in damages. The NAR said it would appeal.

The settlement
Instead, in March, the NAR settled the case for $418 million in damages and an agreement to change some of its practices.

What will change?
Sellers’ agents won’t set the commission earned by the buyer’s agent. Instead, homebuyers will negotiate directly with those agents for their services. The changes are due to take effect in August.

What’s next?
In Vermont, analysts say it is too soon to predict what, if any, impact the settlement will have in the state. Prices are high, driven by a critical shortage of inventory and high demand.

“If I had to guess, I would say Realtors will become less powerful, and maybe there will be more fee-for-service” real estate transactions, said Jeff Lubell, a Norwich resident who works as a principal associate in housing policy for Abt Global, a consulting firm in Rockville, Md. “We’ll see different patterns in different places.”

An unintended consequence?
Some real estate companies and analysts say the settlement will hurt low-income homebuyers. Those buyers may not be able to afford to pay an out-of-pocket commission to their agent. Previously that commission was incorporated into the price of the home, and thus into the mortgage paid over time.



This article was originally published by a www.sevendaysvt.com . Read the Original article here. .

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Realtor Fees And Real Estate Commissions in California | Bankrate

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Traditionally, when a homeowner hired a real estate agent to handle the sale of their property, they agreed to pay that agent, as well as their eventual buyer’s agent, a commission. This fee typically amounted to between 5 and 6 percent of the home’s selling price, split more or less evenly between each agent.

Due to a recent lawsuit settlement, sellers may no longer be on the hook for buyer’s agent fees. But if you use a real estate agent, he or she will have to be paid somehow. How does that look for California home sellers? Let’s take a look at Realtor fees in the Golden State.

How much are real estate commissions in California?

In California, the current total real estate commission averages 5.11 percent, according to the latest data from Clever Real Estate. This clocks in lower than the national average of 5.49 percent.

That might be because the California housing market is so expensive: The median price of an existing single-family home in the state was about $908,000, in May 2024, per the California Association of Realtors (CAR). For a home sale of this amount, 5.11 percent equates to $46,400 total, or $23,200 per agent.

Chalk it up to the high cost of living in the Golden State. Here’s what the Realtor fees would be in a few major cities across the state, assuming a home’s median sale price per May CAR data and an even split of a 5.11 percent commission:

City
Median price
Total agent commission
Individual agent commission

SOURCES: California Association of Realtors May 2024; *San Jose median price from Redfin May 2024 

Los Angeles
$811,610
$41,473
$20,736

San Francisco
$1,690,000
$86,359
$43,179

San Jose*
$1,500,000
$76,650
$38,325

Fresno
$425,000
$21,717
$10,858

Sacramento
$555,000
$28,360
$14,180

What’s included in a real estate agent’s commission?

Whether they’re representing the buyer or the seller, most agents do a lot to earn their fee.

“For the seller’s agent, the commission generally includes services like listing and marketing the property, hosting open houses, negotiating with buyers and assisting the seller through the closing process,” says Scott Beloian, broker/owner of Westcoe Realtors in Riverside, California. Listing agents also often prepare a comparative market analysis to determine a competitive price and help the seller review and compare offers.

“For the buyer’s agent,” Beloian says, “the commission covers tasks such as finding suitable properties, setting up property viewings, advising on the [bidding] strategy and guiding the buyer through negotiations and closing.”

Who pays agent commissions in California?

Across the country, including in California, it used to be that commissions for both agents in the transaction were paid by the seller. “This arrangement [meant] that, while buyers [did] not directly pay the commission, the cost [was] typically factored into the home’s final sale price, affecting both parties indirectly,” says Beloian.

Again, however, changes to the way Realtor fees are paid are coming this summer. Under the new rules, sellers may — or may not, depending on the details of their deal — be responsible for paying their own agent directly.

Are California real estate agents worth it?

Although no one is required to use a real estate agent to either buy or sell a home, there can be considerable advantages to doing so. Agents are licensed professionals who are experts in their local markets. Their job is literally to help you meet your real estate goal, whether that’s earning top dollar on your sale or finding you the right new home at the right price.

Selling a home without a listing agent — known as a for sale by owner transaction, or FSBO for short — means you take on all the responsibilities typically managed by an agent yourself. With California’s high home prices, a mistake in negotiations or missed detail on the contract can really cost you.

That said, $23,200 apiece in commissions is a lot to tack onto an already pricey transaction. And there can be disadvantages to using an agent, aside from that cost, as well. For example, if the two of you don’t mesh well in your schedule or communication styles, working together can be a rough road. And most agents juggle multiple clients at once, which means you might not always be their top priority.  But generally speaking, the pros of having an agent on your side should outweigh the cons.

Saving on commission fees

There are ways to save money on fees if the commission is a hurdle you just can’t get past:

Negotiate the rate: Real estate commissions are often negotiable, and many agents might be willing to lower their rate if you ask. On a high-priced home, even a small rate reduction can make a big difference.

Choose a discount agent: Think about hiring a low-commission real estate agent — companies like Redfin and Clever often charge closer to 1 or 1.5 percent of your home’s sale price, rather than the traditional 2.5 or 3 percent. You might also explore agents who operate on a flat-fee basis, earning a predetermined amount rather than a percentage of the sale price.

Sell by owner: When you sell without a listing agent, you don’t have to pay a listing agent’s commission. But you do have to do all the work yourself, and you still might have to pay your buyer’s agent.

Sell to a cash homebuyer: There are many companies in California that buy houses for cash, closing quickly with no hassle and no Realtors or fees. However, this method will yield a lower sale price compared to a traditional market sale.

Find a trusted California real estate agent

If you’re ready to sell and eager to maximize your profits in the pricey California market, your next step is to find a local real estate agent to team up with. Do your homework first: Start by asking for referrals from family and friends. Look for agents with a thorough knowledge of your specific area and expertise in selling properties similar to yours.

Interview multiple agents and ask targeted questions to help you make an informed choice. The better you click with someone, the smoother your journey is likely to be.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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How Do Real Estate Agents Get Paid? What to Know About Commissions After the NAR Settlement

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NAR settlement 2024: New real-estate commission rules

While both buyers and sellers typically use real-estate agents, traditionally, only sellers have paid directly. The commission is then split between the listing agent and the agent representing the buyer.

Critics have said for years that this structure limits competition, lacks transparency and artificially inflates both commissions and home prices. In October 2023, a jury ordered NAR and a number of well-known real estate brokerages to pay $1.8 billion in damages in a Missouri–based lawsuit arguing as much.

While NAR initially indicated it would appeal the verdict, in March the trade group opted to settle the case instead. The plaintiffs agreed to release NAR from the jury verdict in exchange for $418 million in damages and a host of new commission-related rules that are expected to go into effect in August (pending judge approval).

Those rule changes include:

Mentions of buyer-agent compensation will now be prohibited in listings on Multiple Listing Services, the regional databases agents use to list and market properties.  All commission splits will need to be negotiated separately, giving sellers more power over what—if any—compensation they’ll offer to buyer agents.Buyers and agents will need to sign a contract, detailing the fees and compensation they’ll owe, before even touring a property. This may open the door to more negotiation for buyers and new pricing models—like sliding-scale commissions or an a la carte approach, where buyers pay per service.

It’s not yet clear how these rules will play out on the ground, but they could lead to a major shift in how real-estate agents get paid and who uses an agent. Experts also predict that average commissions could eventually fall by as much as 30%.

How much are current real-estate commissions?

Real-estate agents are paid a commission based on the sale price, and for now, buyers and sellers pay an average of 5.45% the transaction amount, according to research by real-estate brokerage Clever. However, the typical commission varies by location, ranging from 4.90% in Washington, D.C. to 6.07% in Missouri.

Here’s a look at average real estate commission by state:

“Commissions can and do vary widely,” says Adie Kriegstein, an agent with Compass Real Estate in New York. “Location is a huge factor, as markets often vary city to city and state to state. On top of location are just the market conditions: Is it a buyer’s market, seller’s market or simply one that is transitional? The type of property also changes commission rates.”

In the luxury market, for example, commission percentages can often be lower. This is because higher-end properties come with higher price tags, leaving agents more room to negotiate and still get a decent payday.

The exact commission percentage is typically negotiated upfront and will be detailed in the listing contract with a seller. So, for example, if the agreed-upon commission was 5% and they sold a home for $500,000, the agent’s real-estate brokerage would get a $25,000 commission check once the transaction was complete.

It sounds like a lot of money, but that check is rarely a single agent’s to keep. They often have to split that payment with one, two or even three other parties(more on this later). The settlement is meant to end parts of this practice, but it is not yet clear how much agents will be able to charge for their services, though the change is likely to be more dramatic on the buyer end of the equation.

How is the commission divided between agents?

Making things even more complex, unless the same agent is representing both the buyer and the seller, the selling agent gives a portion of the commission to the buyer’s agent—generally in a 50-50 split. With a $25,000 commission, that would mean the listing agent would get $12,500 and the buyer’s agent $12,500.

Beyond that, there are further splits. Often, the agents will also have to share their commission with their broker—the leader of the brokerage firm they work for. These splits vary based on the company, but it often starts at 60-40 (with 60% for the agent and 40% for the broker) and goes up to 80-20 for more experienced agents.

If the agents in that same $25,000 commission scenario had 60-40 splits with their brokers, that’d mean the listing agent and selling agent would take home just $7,500 each.

“Buyers and sellers can be wary of the 5% commission rate, but their individual agent typically ends up only seeing 1.5% on each deal,” says Christa Kenin, an agent and attorney with real-estate firm Douglas Elliman in Connecticut.

To be clear: Not all real-estate brokerages operate this way (just most). National discount brokerage Redfin, for example, pays its agents a salary. Realty ONE Group, which has over 400 franchise offices, lets its agents keep their full commissions, though agents do pay fees to the company.

Can sellers negotiate real estate commissions?

With inflation and mortgage rates high, a 4% to 6% commission might seem pretty pricey—regardless of whose pocket it goes into. Fortunately, “all commissions are negotiable,” says Joe Rath, head of industry relations for real-estate brokerage Redfin.

If you’re a seller looking to negotiate a lower commission with an agent you’re considering, it is important to do so up front. Ask your agent to detail what their proposed commission entails—what services and value they’ll provide in exchange for their fee. You can then agree to remove or reduce certain services in exchange for a lower cut.

“Commissions can vary depending upon the level of service that an agent provides, such as marketing, social media, etc.,” says Bryson Taggart, an agent with Opendoor in Arizona. “If a client wants drone photography, videos and a 3-D printing of their home, that commission may come at a higher price than if they simply want it listed on the MLS.”

You may be able to ask for a lower commission depending on market conditions, too. If it’s a seller’s market and homes are selling at inflated prices and record speeds, you may have more room to negotiate than when buyers are harder to come by and selling a home takes more work.

“Consider the conditions of your current market,” Kriegstein says. “If it’s a hot market with little supply and a lot of demand, you can likely leverage your commission. However, if the market is a buyer’s market you may not want to do that, as other properties could be offering more enticing commissions.”

Can buyers negotiate?

Buyers may be able to negotiate fees with their agents, too, though for now, opportunities for this are rare since sellers typically pay the full commission. Once the new rules from NAR’s settlement go into effect, buyers should have much more negotiating power.

Until then, you might be more able to negotiate if your agent is also the listing agent on the home you’re buying or if you’re buying a For Sale By Owner, or FSBO, property. Some brokerages offer buyer’s commission rebates, typically in the form of closing credits, though the practice is banned in eight states.

Other options

Negotiating isn’t your only option. You can also look to alternative agents and brokerages for reduced fees, too. Discount brokerages such as Redfin and Clever charge just a 1.5% listing fee (versus the usual 2% to 3%), plus the buyer’s agent fee. Other brokerages, such as Homie and ListingSpark, operate on a flat-fee basis.

You also have the option to go agent-free altogether. According to the National Association of Realtors, about 10% of all home sales are FSBOs.

Just keep in mind: If you go this route, you’ll need to handle all aspects of the sale yourself. As Kuba Jewgieniew, CEO of Realty ONE Group, explains, “Realtors work incredibly hard, with the bulk of that work done behind the scenes—negotiating, researching, marketing, writing up contracts and more.”



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A Guide to All the Real Estate Reality Shows on Netflix

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The allure of the real estate reality show is two-fold: showcasing luxury real estate in the world’s most desirable locations for an aspirational viewing experience and encouraging audiences to shamelessly indulge in their inner voyeur. There’s no denying the pleasure of seeing the interiors of the homes of the rich and famous, or, in what may be a more compelling draw for many viewers, granting access to the private dramas and personal conflicts of those on the show. In recent years, realty as reality show fodder has boomed, especially on Netflix, where shows like Selling Sunset and Buying Beverly Hills pair luxury real estate offerings with captivating reality TV personalities. Netflix’s latest entry, Owning Manhattan, out June 28, is real estate reality at its finest—glittering escapism with just enough personal drama to temper the opulence.

Here is a guide to the best real estate reality shows to stream on Netflix.

Buying Beverly Hills

At the center of Buying Beverly Hills is Mauricio Umansky, a familiar face to many reality television fans. That’s because Umansky has been a fixture on Bravo’s The Real Housewives of Beverly Hills since 2010, which stars his now estranged wife Kyle Richards. Buying Beverly Hills switches the spotlight over to Umansky and his lucrative real estate firm The Agency, which employs some of Umansky and Richards’ daughters as well as other young realtors hoping to make it big. The show’s got it all: tours of glitzy multi-million dollar homes, realtors clashing over deals, and, of course, casual accusations of nepotism as everyone at the office discusses who could possibly be next in line to take over the family business.—Annabel Gutterman

Marriage or Mortgage

Reality shows about the wedding industrial complex have long been a staple of the genre, but with Marriage or Mortgage, the fantasy of wedding planning is tempered by a bracing perspective about the economic realities of our time. The premise of the show is seemingly simple: couples meet with hosts Nichole Holmes, a real estate agent, and Sarah Miller, a wedding planner, to debate whether they’d like to spend their hard-earned savings on a house or a wedding. But the show cogently taps into the emotions of economics—how we spend our money and why. While it’s easy to reason that a down payment on a house is a better investment than spending tens of thousands of dollars on a wedding, for many of the couples on the show, having a blowout party to celebrate their nuptials holds far more value than owning a home (six out of the 10 couples featured in the series opted for the wedding). Adding to the emotional weight of the show is the knowledge that much of the show was filmed pre-2020, so many of the couples who chose “marriage,” were forced to postpone or downsize their weddings. Ultimately, Marriage or Mortgage is a portrait what our finances can tell us about ourselves.—Cady Lang

Selling Sunset

With seven seasons under its crystal-encrusted Gucci belt, Selling Sunset is the grand dame of Netflix real estate soaps. Starring a highly telegenic subset of female agents at twin moguls Jason and Brett Oppenheim’s exclusive Los Angeles brokerage, the Oppenheim Group, the series quickly found a following among viewers who like their drama with a side of mansion porn, rather than the other way around. In its early heyday, the central conflict pitted reigning mean girl Christine Quinn—a clotheshorse of truly demented personal style—against wide-eyed newcomer Chrishell Stause, an All My Children and Days of Our Lives alum with Disney princess sparkle and a martyr complex. The show stagnated as Quinn alienated even new co-workers who seemed to have been cast solely to give her allies, and kept declining after her departure at the end of Season 5. Yet, whether you credit it to terminal bachelor Jason’s chaotic love life or the inexplicably moving bond between his loyal ex turned deputy Mary Fitzgerald and her much-younger, French husband Romain Bonnet or simply the cast’s preternatural ability to escalate a perceived slight into a full-on feud, Selling Sunset remains perplexingly addictive. Which is, of course, how you can tell it’s a reality-TV classic.—Judy Berman

Selling Tampa

Though the properties featured on Selling Tampa are ostentatious enough to steal the show, they’re easily forgotten in the midst of the high-octane drama that fuels Allure Realty, a Black woman-owned and operated firm that aims to take over the luxury real estate market in Tampa. Led by Sharelle Rosado, the “tough love” girl boss head broker of the firm, the agents at Allure, ranging from a pair of fun-loving best friends to a seasoned agent whose ambitions point to her striking out on her own in the future, never have a dull moment between their professional rivalries and the complex personal lives. Though the ladies of Selling Tampa were undeniably compelling as both real estate agents and reality TV characters, the show was prematurely canceled after its first season, a true loss for real estate reality fans everywhere.—CL

Selling the OC

What better way to capitalize off the success of Selling Sunset than by launching a spinoff series—and opening another Oppenheim Group brokerage—just 40 miles south? Selling the OC is the Trumpier younger sibling of the Netflix hit that could double as an anthropological study of Newport Beach and its billionaire residents. In this iteration of the show, the veneers are whiter, the tans are faker, and the McMansions are even more supersized; plus, Jason says bye-bye to Brett and serves as the sole Oppenheim brother on set. The agents (three of whom are named Alex) at this coed firm are all animatronic Instagram filters come to life, which only makes the inter-office dating and drama all the more fascinating.—Meg Zukin

The Parisian Agency

Many of Netflix’s realty reality shows bring the drama, but their real estate offerings—often plain white boxes and identical modern farmhouses—leave much to be desired. But The Parisian Agency: Exclusive Properties is for the architecture and interior design nerds.

The show focuses on the Kretz family as they try to find the right million-dollar properties for France’s rich and (sometimes) famous. You’ll tour a 19th century suburban mansion, a villa in St. Tropez, and countless apartments with classical details like Haussmann facades, ornate fireplaces, and French balconies. If you want even more charm, stay for the antics of the family’s grandmother, Majo.—Samantha Cooney

Owning Manhattan

In the vein of Selling Sunset and Selling the OC, Owning Manhattan, the latest addition to the large swath of real estate reality shows, is centered around a real estate agency—SERHANT in New York City. The agency is helmed by Ryan Serhant, who boasts about being the No. 6 spot on The Real Deal’s list of Top Residential Brokerages for 2022. He’s no stranger to the camera, gaining a reputation during his time on Million Dollar Listing New York. Owning Manhattan takes viewers through jaw-dropping apartments with high price tags around New York City and provides plenty of petty drama. In particular, Serhant, who is dedicated to integrating social media into the business practice of publicizing listings and turning his agents into internet personalities, brings an alluring charisma as he shares what it’s like to sell multi-million dollar dwellings while managing multiple egos.—Moises Mendez II

Buying London

Buying London is centered around the company DDRE Global, owner Daniel Daggers, and its agents. The company prides itself on its connection to celebrities and according to House Beautiful, Daggers has worked with members of the Royal family, in addition to “high-profile people in sports, entertainment, and finance.” While the show may not bring the highest level of drama, in comparison to other Netflix real estate reality shows, it does provide a window into the housing market of a notoriously expensive city.—MM



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How to Find a Real Estate Agent

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What does a real-estate agent do?

Real-estate agents wear many hats. Depending on the party they are representing—buyer or seller—and the state they’re operating in, an agent may negotiate, advise on pricing, draw up contracts, coordinate showings or all of the above.

The most valuable thing they have to offer, though? That’d be “knowledge,” says Philip Hordijk, founder of real-estate brokerage Leven Real Estate. “Knowledge of the market trends, knowledge of the active inventory, knowledge of the process and knowledge of getting a deal done.”

Nearly 9 out of every 10 buyers and sellers use a real-estate agent’s help, according to the National Association of Realtors. Here’s what you can expect an agent to do for you if hired.

What agents do for home buyers

For home buyers, agents play the role of guide. They help clients through every step of the process—first, zeroing in on suitable neighborhoods and properties and touring those homes. They also draw up offers, including negotiating a fair price and any contract contingencies, and they might attend the mortgage closing, too.

According to Kimberly Jay, a real-estate broker with Compass in New York, buyer’s agents can also help filter out properties that aren’t a good fit so buyers make efficient use of their time.

“When I work with my clients, I’m not trying to show them as many properties as possible, I’m trying to show them as little as possible, because time is something you can’t get back,” Jay says.

Real-estate agents can also provide valuable referrals throughout the home buying process—for home inspectors, attorneys, mortgage lenders, title companies, contractors for renovations and more. And in markets where condos and co-ops are common, agents are critical. These properties often require board approval, so buyers must submit applications and sometimes be interviewed before their offer is approved.

Jeremy Kamm, for example, is an agent in New York City. A big part of his job, he says, is researching the rules and regulations of properties his clients are interested in. Co-op purchases are particularly complicated because co-op boards have the power to deny an application and squash a deal.

“The board packages can be extremely tedious and time-consuming,” Kamm says. “We virtually hold their hands throughout the entire process.”

What agents do for home sellers

Seller’s agents—often called listing agents—are more focused on the property. They may stage the home, photograph it, market it and list it publicly. Most important, they price the home.

“An accurately priced, well-prepared listing will sell for more money than a home that is overpriced and then reduces its price,” says Jesse Sheldon, a real-estate broker with Re/Max NW in Seattle.

Listing agents also negotiate with interested buyers and their agents and coordinate showings to accommodate the seller’s schedule. They can also help sellers better spot good offers—buyers who are most likely to get approved for a mortgage or pass the co-op board’s approval, for instance.

What agents do for renters

Real-estate agents don’t just help with purchasing property; they can also assist with rentals, matching renters with apartments or helping landlords fill vacancies. In some cases, agents may be able to connect tenants with off-market properties through their professional network, and they can help ensure the renter meets a unit’s requirements, too.

“Showing the renter an off-market listing is great,” Hordijk says. “But making sure they actually get the apartment they want is key.”

How to find a real-estate agent

Experience varies widely from one agent to the next. In fact, according to the National Association of Realtors, 25% of agents have two-or-fewer years experience, while 39% have 16-or-more years under their belts. Those with two years or less experience do an average of just three transactions a year. But agents with 16 or more? They do 14 deals annually.

While an experienced agent doesn’t necessarily mean you’ll get a better deal or sell your place for more, it does mean your agent has logged more time handling the ins and outs of real-estate transactions—negotiating contracts, vetting offers and pricing properties, for example—all things that can impact your bottom line and how quickly your deal gets done.

Agents’ credentials also differ. Some have extra education in luxury marketing, relocations or real-estate investing, for example.

Do you want to make sure you’re choosing the right agent for your deal? Here’s how experts recommend going about the process:

Ask friends, family and your employer

Referrals are the gold standard in the real-estate world. As Christian Ross, associate broker at Engel & Völkers puts it, “The best way to find a real-estate agent is through friends and family that have had exceptional experiences they rave about.”

If you’re moving somewhere totally new, reach out to your employer. The human resources department may have agents they can point you to. Exxon Mobil, for example, offers employees relocation and home buying assistance through its partner Cartus. If your company doesn’t offer something similar, you can also ask a colleague who they used when moving to the area.

A note of caution: Think hard before choosing a friend or family member to help with a real estate transaction. Ask yourself, suggests Desiree Avila, a real-estate agent with Charles Rutenberg Realty Fort Lauderdale: “Do I want to work with the best, or do I want to help cousin Johnny?”

“Unless that friend or family member is a real estate professional that is an all-in, seasoned agent with experience, that person may not be the right professional for the job,” says Avila. An agent “that doesn’t have the experience can be more of a liability than an asset.”

Check your local Realtor association

Most large cities have their own Realtor associations. In Houston, for example, there’s the Houston Association of Realtors, or HAR. The group’s site has an agent search tool you can use to find professionals that serve the ZIP Codes you’re shopping in. You can also filter for multilingual agents or agents with specific designations and specializations.

If you’re not sure what your local Realtor group is, NAR has a full list of state and local associations.

Search online directories—with care

There are plenty of third-party real estate sites that offer agent directories, too, including Realtor.com and Zillow. (News Corp, owner of The Wall Street Journal, operates Realtor.com under license from the National Association of Realtors.)

While these can be a good way to find candidates, it is also important to note that agents often pay for placement in these directories. This means that the agent who shows up first in your search may not be the best-suited one for you—just one who paid.

“There is nothing wrong with an agent investing in their business,” Ross says. “But you want to make sure you’re searching for an agent that matches the parameters you’re looking for.”

If you find an agent on a third-party site, check their license (and any disciplinary actions) with your state real estate board, and look for additional reviews. Yelp and your local real estate association can be good resources.

Ask your last agent for a referral

If you’re moving to a new metro or state, it might be impossible to use the last real-estate agent you worked with. Reach out anyway, and ask for a referral. If they work for a large firm, there is a good chance they know agents in other parts of the country, too.

Just be aware: They may get a referral fee or commission share from the other agent for these services if a deal gets done.

Interview several candidates

Even with a referral from a trusted source, you should interview a few agents before choosing. As Bret Weinstein, president of Guide Real Estate in Denver, notes, “Just because your friend had a great experience with someone, doesn’t mean that you will.”

You’ll probably work with your agent for quite a while, so it is critical to make sure you feel comfortable with them and that they understand your needs. Most listing contracts last at least 90 days, while finding a a property to buy can take many months.

“You speak with your agent a minimum of a few times a week, and it may even be every day,” Jay says. “Besides pricing and getting a home show-ready, you have to think about if you want to have a relationship with this person.”

To make sure you find the right fit, agents say to ask these questions when interviewing candidates.

Questions to ask a buyer’s agent

Buyers will want to get an idea of an agent’s experience in the local market and how available they’ll be throughout the home search.

Buyers should ask:

How long have you been working in this market?How many clients do you currently have?Is this your full-time job?What is your approach to finding properties?How do you handle multiple-offer situations?Can you help me navigate the mortgage process?How will we communicate? (Text, email, phone, etc.)Who can I contact if you are on vacation or unavailable for some reason?

Once you think you’ve found the right person, ask for at least three references.

Questions to ask a listing agent

When you’re looking for someone to list your home, you’ll want to focus on how they plan to market and price the property.

Sellers should ask:

What would your marketing strategy for my home look like?How would you price my property and why?How many homes have you sold in this area this year?Will you be hosting an open house?What’s your commission rate?

You can also ask for their sale-to-list-price ratio, which reflects the price their listings sell for compared with the asking price. Anything below 100% means their homes sell for less than what they price them at. In 2022, NAR data shows 65% of homes sold at or above list price. Another 1 in 5 sold for 95% to 99% of their list price. (Keep in mind, this can include homes that sold after a cut in listing price.)

Questions to ask yourself

Before you can choose an agent, you need to know what you want from one. Are you looking for someone who can sell your house fast? A person with tons of local experience? Someone who will market your property on social media, with virtual tours or in other creative ways? Make a list of what you want before you go into interviews.

Pay attention to the rapport you have with each candidate, and do a vibe check. “Does the agent listen to you?” Hordijk asks. “Does the agent ask you the right questions? Does the agent have time to help you or is he or she too busy?”

Types of real-estate agents

The term “real-estate agent” typically refers to someone who holds a real estate license in the state they are operating in, so the exact qualifications vary by state. In Texas, for example, you need at least 180 classroom hours with an approved education provider and to pass a state licensing exam.

With continuing education, agents can specialize in niches—such as luxury or commercial real estate—or even open their own brokerage and oversee other agents.

Realtor vs. real-estate agent

A real-estate agent and a Realtor are essentially the same thing, though the latter is one who has joined the National Association of Realtors, a trade organization for agents that represents 1.5 million agents.

NAR membership grants real-estate agents access to Multiple Listing Services—local databases used to list and share properties. Realtors also must take a course on NAR’s code of ethics—and agree to adhere to it—before becoming members. The code includes rules such as not misleading clients, safeguarding confidential information and disclosing any dual agency (when an agent represents both the buyer and the seller in one transaction).

Real-estate broker vs. agent

There is also a differentiation between a real-estate agent and a real-estate broker. Again, both professionals can help you buy and sell real estate, but brokers are higher ranking. A broker typically owns a real-estate firm and oversees other agents. Brokers also usually get a cut of commissions from agents they oversee.

The process for becoming a broker varies by state, but most need at least three years of experience, must meet additional education requirements and take a broker licensing exam. Once licensed, they can manage other agents or open their own brokerage.

Licensed brokers who don’t run their own firms are usually called associate brokers. They can continue to work under the main broker of the real-estate firm they work with.

How real-estate agents get paid

Real-estate agents are paid on commission in most cases. When a home sells, the listing agent typically gets around 6% of the total sale price. They then split that commission with the buyer’s agent and their supervising broker.

Agents who work with renters can be paid a flat referral fee or, in areas with lots of rental volume, one month’s rent or a percentage of the total annual rent. The model and rate depends on the market.



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Real estate: What’s the success rate of selling your own home without an agent

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Q: I am the personal representative of my dad’s estate that is going through probate. I have a question about the seller’s disclosure statement. I lived in the house when I was a kid/teenager. I moved out when I turned 18, 40-plus years ago. I have never been on the title to the property. Do I still need to fill out a seller’s disclosure statement because I lived in the house?

A: Normally when a property is to be transferred (sold) because of an order by a probate court in the administration of an estate; the seller/executor/personal representative is exempt from filling out a seller’s disclosure statement except when they have lived in the property, as an adult, even if they had no ownership in it. As per the Michigan Association of Realtors legal counsel, an adult who has no ownership in the property and only lived in the home as a child/teenager or college student is exempt from filling out a seller’s disclosure statement. As always, consult an attorney when dealing with legal matters, especially an estate.

Q: We are going to be selling our home this year. My son-in-law says we should try selling it ourselves. I’m not comfortable doing that. Are there any statistics that show what the success rate is with for sale by owners?

A: That’s a good question. FSBOs (for sale by owner) sales accounted for 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales, according to the National Association of Realtors. This sales price differential between for sale by owner and agent-assisted home sales has been going on for years. Sure, you can go in thinking that you will be saving a 5% to 6% negotiable commission, but on the other end, you are losing over 23% in sales price.

Market update

March’s market update for Macomb County and Oakland County’s housing market (house and condo sales) is as follows: In Macomb County, the average sales price was up by more than 6% and Oakland County’s average sales price was up by more than 5%. Macomb County’s on-market inventory was down by more than 30% and Oakland County’s on-market inventory was down by more than 28%. Macomb County’s average days on market was 33 days and Oakland County’s average days on market was 34 days. Closed sales in Macomb County were down by almost 26% and closed sales in Oakland County were down by almost 15%. The closed sales continue to be down as a direct result of the continued low inventory. Demand still remains high. (All comparisons are month to month, year to year.)

By the long-standing historical definition from the National Association of Realtors, which has been in existence since 1908, a buyer’s market is when there is a seven-month supply or more of inventory on the market. A balanced market between buyers and sellers is when there is a six-month supply of inventory. A seller’s market is when there is a five-month or less supply of inventory. Inventory has continued to stay low. In March, the state of Michigan inventory was at 1.6 months of supply. Both Macomb and Oakland county’s inventories were at 1.2 months. As you can see, by definition, it is not a buyer’s market.

Steve Meyers is a real estate agent/Realtor at RE/MAX First in Shelby Twp. and is a member of the RE/MAX Hall of Fame. He can be contacted with questions at 586-997-5480 or Steve@MeyersRealtor.com You also can visit his website: AnswersToRealEstateQuestions.com.



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