NAR/DOJ Changes to Come

I am sure you have heard the recent news headlines that claim the Real Estate industry is "going to change FOREVER" and that "home prices and commissions are going to fall" and I wanted to send you a series of blogs to share information beyond the hype and politics of it all and give you a peek into what the real estate landscape looks like this 2024 spring market in North Carolina.

First, the National Association of Realtors (NAR) and the Biden Administration Department of Justice (DOJ) have just this month reached a settlement as a fallout from a class action lawsuit involving disgruntled sellers who believe they paid too large of a commission and more specifically believe they were coerced into paying the buyer's agent commission who ended up being a superior negotiator against them in the sale of their home. I would like to walk you through a few baseline premises that the news media is getting completely wrong and as always educate those who trust me to guide them through the process of buying and selling their largest personal asset.
It is unfortunate that these sellers believed they paid too much- and I do believe that this misunderstanding was inherently the responsibility of the agents they worked with. As your agent, I work hard to help you understand every penny you are paying in the process from taxes, escrows, deposits, fees and commissions- you should know where your hard earned money is going in the real estate process. It is also my responsibility to articulate my worth and the experience and expertise I bring to the process so that you opt to work with me as your real estate agent.

Why Pay a Listing Commission?
It is super important to know that commission rates have ALWAYS been negotiable and you have also always had the option to sell For Sale By Owner and not pay a commission at all. Just like cutting your own bangs or representing yourself in court you have always had the option to go at it alone, but it is often best to seek professional help, especially in something so important as real estate. I know that when I meet with you at a listing appointment I can share with you all of the reasons you would net MORE MONEY and SELL MORE SMOOTHLY if you use me as your agent instead of selling on your own or using a discount broker to do a discount service. When you pay a professional real estate agent a commission it is because you believe and understand the value proposition the agent will bring to you and your bottom line as they do all of the following and more to facilitate the sale of your home:

• Research and articulate the most probable sales price/list price for your property and continually monitor comps in a swiftly changing market.
• Gather data to market your home including age of your mechanicals and appliances, locate permits, deeds and warranties to share with the buyer for a smooth transfer.
• Professionally stages and photographs the home for marketing purposes.
• Creates flyers, social media and video to promote your home and enlarge the buyer pool through marketing.
• Check flood plain maps, DOT maps, municipal zoning and HOA restrictions for issues that might be important.
• Checks for HOA assessments, liens, private road agreements that might impact the sale.
• Notate surveys, easements and encroachments as well as powerlines, future road widening projects that impact property use.
• Reviews past insurance claims (clue reports) and any invoices for repairs and/or updates to make sure the property is safe.
• Advise on title concerns that could stem from name changes, marriages, deaths, divorces, wills, estates and probate laws that impact clear title.
• Draft all of the paperwork to facilitate the sale and share said paperwork with all interested parties.
• Manage all communications with the closing attorney, lenders, inspectors, appraiser and contractors that might be involved.
• And successfully audit and record keep all paperwork for legality of the sale/process.
• And sometimes that rare agent even helps you pack and clean!

In conclusion, all commissions are negotiable, and you have every opportunity to decide if working with a professional will add value to the process and save you money along the way. And of course when you work with me, I explain all of the paperwork thoroughly so you will NEVER feel uninformed in the process.