Springtime is usually a busy season in the real estate market as buyers aim to sync their search with favorable weather and family needs. However, the shadow of the recent settlement with the National Association of Realtors (NAR) is leaving many buyers and sellers hesitant.
We aim to cut through the panic and legal jargon to cover what’s important to YOU.
The NAR Settlement—What is It?
The National Association of Realtors (NAR) has been in a legal dispute over accusations of anti-competitive behavior. The heart of the settlement aims to tackle these issues by establishing greater transparency.
The changes include adjustments to increase transparency in the commissions paid by home buyers and sellers. It also empowers buyers to directly negotiate the commissions they pay.
The settlement strives to establish a consumer-centric environment, shifting away from practices that traditionally benefitted brokerages.
As a consumer, the most important part of this settlement is that it attempts to more clearly separate buyer and seller agent commissions. Starting in mid-July, buyers will be responsible for directly negotiating the buyer agent commission—a change from the current system where the seller pays both commissions.
The Spring Real Estate Market—What is It?
The real estate industry experiences a surge in inventory, heightened buyer interest, and an overall increase in transactions typically beginning in March.
This period is typically paired with higher home values for sellers and a competitive market landscape. As a result, many sellers choose to list their properties in spring—which also provides buyers with a wider range of choices while searching.
What’s different about the 2024 spring market? Prospective buyers and sellers now have to take extra factors into consideration—all while participating in one of the biggest transactions they’ll ever make.
Should You Sell Before or After The Changes?
When selling a home, you should always prioritize your specific needs as every situation is different. Consider whether potential savings or the freedom of moving on your own timeline is more important. Also, missing the spring market could lead to a lower sale price—though that isn’t always the case.
Also consider that once the changes go into effect, the real estate landscape will be in uncharted waters. Some buyers may stop their search if they have to factor in commission costs on their end.
Considering how heavily commissions factor into this change, we’d be remiss to not mention that Trelora has always believed in lower commissions without sacrificing service. Sellers who work with us pay a 1% listing fee—a pricing model we’ve held for a long time.
Should You Buy Before or After The Changes?
Holding off until July could mean you’ll need to cover your buyer agent’s fee. At minimum, you’ll need to discuss upfront payment terms with your agent. Once the settlement is finalized, all buyers who enlist an MLS-affiliated agent’s help will need to sign a representation agreement that lays out protections for all parties involved.
If you’re thinking about buying your next home before then you could take advantage of the Trelora Buyer Rebate Program to save thousands.
This program gives half of your buyer’s agent commission back to YOU as a rebate. For example, on a $500,000 home with a 3% buyer agent commission, you’ll get back 1.5% at closing. That translates to $7,500 to do with as you please—and as a new homeowner, we’re sure you’ll make good use of it!
