#MLS Brokerage

[trackxi]

Real Estate Software for Property Management: Streamline Your Rental Business

Utilizing the right real estate software can significantly streamline your rental business operations, making management more efficient and effective. By implementing the property management software, property owners and managers can automate tasks, enhance tenant relations, and ultimately increase profitability.

Automation of Daily Tasks

One of the most significant advantages of using property management software is the automation of routine tasks. From rent collection to maintenance requests, these systems can handle a variety of day-to-day activities without the need for manual intervention. Automated reminders ensure tenants pay their rent on time, reducing the likelihood of late payments and improving cash flow. Additionally, property managers can automate maintenance requests, allowing tenants to submit issues digitally and enabling quicker responses.

Centralized Communication

The best property management software provides a centralized platform for all communication between property managers and tenants. With features like tenant portals, residents can easily access information about their leases, make maintenance requests, and communicate directly with management. This streamlined communication fosters a sense of community and enhances tenant experience, ultimately leading to longer occupancy rates.

Comprehensive Reporting and Analytics

Property management software also offers robust reporting and analytics tools that provide insights into your rental business's performance. From tracking occupancy rates to analyzing maintenance costs, these insights help property managers make data-driven decisions. Understanding financial metrics, such as cash flow and return on investment, allows owners to adjust strategies and maximize profitability.

Maintenance Tracking and Management

Managing maintenance issues efficiently is vital for keeping tenants satisfied. The best property management software includes features that allow property managers to track maintenance requests, schedule repairs, and communicate with service providers. This ensures that issues are resolved promptly, enhancing tenant satisfaction and protecting the property’s value.

Investing in effective real estate software for property management is essential for streamlining your rental business. By choosing the best property management software, you can automate daily tasks, improve communication, leverage data analytics, and manage maintenance effectively. These tools will not only simplify operations but also enhance tenant relations, ultimately leading to a more successful and profitable property management experience.

[classic-property-management]

How Much Rent Can I Get for My Texas Investment Property?

Real estate investment, particularly in a dynamic market like Texas, can be profitable. If you’re considering turning your Dallas investment property into a rental, one of your first questions is likely, “How much rent can I get for my Texas rental property?” While there isn’t a one-size-fits-all answer, understanding the factors that influence rental income will help you make informed decisions and maximize your returns on your first-time investment.

Brokerage For Real Estate Investors In The Dallas Fort Worth Metropolitan Area Since 1987

Contact Us!

"Discover The Classic Difference"

817-640-2064

[flat-fee-listing]

Flatfee places your for-sale listing on the Multiple Listing Service (MLS) then MLS syndicates the listing to several hundred real estate websites providing us with maximum exposure of your listing to agents and buyers.

[jamaicahomescom]

What is IDX?

IDX, or Internet Data Exchange, is a real estate property search enabled on websites. It allows real estate professionals to display listings from the multiple listing service (MLS) on their own websites. Essentially, IDX integration enables visitors to search for properties listed on the MLS directly from the real estate agent or brokerage’s website. This provides a convenient way for potential…

[nexthomeresidential]

Done deal: MLSs, brokerages get preliminary approval of opt-in settlements https://www.housingwire.com/articles/mls-brokerage-preliminary-approval-opt-in-settlements/

[thelonesgroup]

Mastering the Buyer Brokerage Compensation Conversation

Mastering the Buyer Brokerage Compensation Conversation with Both Sellers and Buyers

Since August 17th, new rules have been in effect regarding Buyer Brokerage Compensation, I have been keeping up on new issues that are cropping up across the country:

Listing agents are trying to determine creative ways to share the compensation their seller is offering that does not require them to be on the phone, explaining it again and again for buyer agents wanting to show the property.

Real estate companies are pursuing potential buyers, enticing them to get out of their signed buyer brokerage agreements (yes, it is illegal, but it's happening).

Buyers aren't sure what they signed and therefore are signing multiple agreements.

Offers are being submitted that don't represent buyer or seller intentions when it comes to paying compensation (due to confusion around the issue).

Some of these issues are regional (different MLSs are handling their requirements for disclosure differently) while others are issues seen nationally (confusion around forms, companies and agents taking advantage of this confusion). The overarching issue when it comes to working with clients is this: Communication around the process and the topic. I am finding that agents are either overcommunicating with their buyers and sellers about this issue and scaring them into not taking action or they are under-communicating and causing confusion during the offer and negotiations - not when you want to spring a surprise on them that they need to show up at the closing table with more money.

Every agent in every market should pay attention to what I am about to tell you:

Explaining the current situation isn't cutting it. You need to have visuals that explain the concept and articulate the value of working with you.

You, as agents, are in the fight for your careers right now. Large companies are putting millions of dollars into taking away half of the market (buyers). They have tools that are capturing buyer signatures at open houses, their AI is targeting interested buyers prior to making an offer and offering significant compensation discounts, and unless you can show compelling reasons for working with you, they are going to capitalize on this market.

The other threat you have is the buyers themselves. They don't know what they are signing and therefore, they are signing multiple agreements. Agents who are in business to capture signatures and not cultivate relationships are not working in the best interests of buyers, but buyers who want to just have a door opened don't know any better.

Furthermore, I am seeing sellers across the country offering low or no compensation to the buyer broker simply because they heard in the news they didn't have to anymore. Although that is true, listing agents who aren't providing compelling information about the barriers that can cause and the potential lower net proceeds that may be obtained as a result, are not doing their sellers any favors.

I have had the benefit of listening to agents in my ENCORE group talk about the challenges they have had talking with both buyers and sellers over the last several months since our MLS rolled out new forms and process last January. The Lones Group has put together a whole new suite of tools to help agents have these conversations and to provide a framework that is consistent with their business model. If you are having a difficult time, have been burned by a buyer or regret not having a tough conversation with a seller, then this suite of tools may be for you:

CONVERSATIONS WITH SELLERS

Conversations with sellers can take a variety of formats, from listing presentations to selling strategy meetings. Pay attention to these opportunities and consider including these visuals as part of your fee conversation.

Listing Presentation - 4 Strategies Format

First, make sure your listing presentation no longer refers to sharing compensation between the listing agent and buying agent. These two percentages or dollar amounts do not belong under the same umbrella. Instead, I encourage agents to really look at their listing process and services, and group these under three categories:

Home Preparation Strategy

Pricing Strategy

Marketing Strategy

These three strategies are what comprises YOUR fee for listing the property.

Then, add a fourth strategy, the Buyer Attraction Strategy. In here is where you can talk about concessions offered in terms of credit for condition (such as $10K towards roof replacement), mortgage rate buy-down, seller financing, assumable mortgages, and yes, buyer brokerage compensation.

We have been doing a lot of listing presentation package renovations over the last few months to reorganize existing content into these categories. The presentation afterwards is smooth and easy-to-follow. You may not need a whole new listing presentation, it may just need to be reorganized.

Home Selling Strategies - 6 Options to Consider

There is another prop that you might consider, especially when talking with a seller about barriers that can cause a home not to sell. Sellers have choices - choices that make a home harder to sell will ultimately have an effect on the sales price. For example, if a home has very old carpet that is causing the house to smell, that can have an effect on the sales price. How a home is priced, how it is photographed and marketed (which is dependent on the agent they hire), what they are offering to the buyer, what limited they put on showings, and how they want to handle offers will also affect it. Having a prop like this helps facilitate this somewhat-difficult conversation.

Listing Fee Sheet

Many agents are already uncomfortable when talking about their fees. Having your fee, along with a summary of what the seller will receive (reference your listing presentation for the full outline), makes it a lot easier to have the conversation because the punchline is already right there, in writing, so you don't even have to say it!

Also, having a visual makes it seem like it is part of your process, and not just a number you have pulled out of thin air.

CONVERSATIONS WITH BUYERS

Like sellers, your buyers also need to be aware of their options and responsibilities when it comes to compensating you for your valuable services. Consider careully these opportunities and props for explaining the buyer process, articulating your value, and discussing commission.

Buyer Presentation

Do you sit down with a buyer before going out to view properties and explain the buyer process? Do you provide them with a packet or book of information they need to be prepared to buy? Does this outline your processes…or that of your brokerage or company? Too often, agents are relying on others to do their educating and you are appearing less valuable as a result!

Having a completely custom buyer presentation for your business and operations is one of the best ways to begin establishing your value at the very first meeting - remember, that is when you should be having them sign a buyer services agreement!

Transaction Expenses for Buyers

Although you might have a page for closing costs IN your buyer presentation, having this page as a stand-alone will help with your brokerage fees conversation. This outlines the typical closing costs buyers may need to budget for INCLUDING broker compensation.

Buyer Pledge & Buyer Fee Sheet

These two sheets go hand-in-hand OR you can simply refer to your buyer presentation if you don't want to have a separate pledge of service sheet. Similar to the listing fee sheet, having a prop that outlines the fee for your services and what buyers get for that will help buyers understand that you have a system and process for working with buyers. You are explaining your business model and are less-likely to agree to a lower number because it is right there on the table. The pledge is merely there to back you up and remind the buyer what they are getting.

Buyer Brokerage Compensation - The Gap

What if you and the buyer agree to a fee, but the seller is offering less than that, or even no buyer brokerage compensation? Agents are afraid to just say it, are dancing around the issue, and therefore are overexplaining it. What you need is a prop!

This prop we have created uses marshmallows instead of a percentage (this can be customized for your fee) but you get the idea. This allows a buyer to quickly understand that there may be a difference between what the buyer and seller want, that there is a negotiation moment, and the buyer still may need to bring money to the table to close. This is the fact of the matter!

Remember…

Buyers are hiring you for your service…service that goes well beyond showing homes and writing up some paperwork. They are hiring you for your expertise, your experience, the problems you have the ability to solve, the professional relationships you have cultivated, your managing broker, your continuing education, how you give back to the community, and your insight.

If you don't have the tools to clearly articulate your value to buyers and that worth to them, then buyers are going to compare your generic services with any other agent and choose the one that costs the least.

YOUR NEXT STEP

I didn't write this Zebra Report to freak you out, but the industry is changing under our noses. You don't have a moment to lose. You need to get your tools in order beginning TODAY. We have made it easy to get the ball rolling:

Listing Presentation and Buyer Presentation Assessment: Email us your listing and buyer presentation to support@thelonesgroup.com to get a quote for bringing it up to today's standard.

Additional Buyer and Seller Props: Want the Home Selling Strategies, Listing and Buyer Fees sheets, Buyer Transaction Expenses, Buyer Pledge, and Buyer Services Agreement - Marshmallows props? We can build those for you! We can build them in your brand in the format your other materials are in or in Canva for $995 (ENCORE members get a 30% discount). Just email support@thelonesgroup.com to discuss options.

Website: Of course, having a robust website that outlines your processes and services is also an important part of your suite of tools.

Denise Live September 17th - October 8th: Over the next four weeks, I am going to be addressing how to use these tools on my weekly Denise Live webinar, Tuesdays at 9:00 am Pacific:

September 17th Addressing Your Fees with Buyers - There's a Prop for That!

September 24th Addressing the “What Ifs” with Buyer Brokerage Fees - There's a Prop for That!

October 1st Addressing Fees in Your Listing Presentation

October 8th Addressing Buyer Barriers with Sellers - There's a Prop for That!

Join Club Zebra now for $9.95 and benefit from all four of these important conversations.

From the initial interaction to giving over the keys, you need to appear polished and professional, with processes and systems that point to your experience and expertise. There is too much at stake to assume that buyers and sellers understand what is going on and what is in their best interests. They are looking to you for guidance. Make sure you have the visual tools to provide it.

Join Club Zebra

By Denise Lones CSP, CMP, M.I.R.M. The founding partner of The Lones Group, Denise Lones has over three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development and more, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

[dreampropertiesinc]

Navigating the Market: How a Real Estate Brokerage Can Transform Your Property Ventures

In the dynamic world of real estate, the role of a brokerage is pivotal. Whether you’re a first-time homebuyer, a seasoned investor, or a seller aiming to get the best price for your property, partnering with a real estate brokerage can make a significant difference. A real estate brokerage acts as an intermediary between buyers and sellers, offering expertise and resources that can streamline transactions and enhance your overall experience. Here’s a closer look at how a real estate brokerage can transform your property ventures and why working with one is often a smart move.

What Is a Real Estate Brokerage?

A real estate brokerage in Ottawa is a firm that employs real estate agents to facilitate transactions between buyers and sellers. These brokerages provide various services, including property listings, market analysis, negotiation assistance, and transaction management. Brokerages can vary in size and scope, from large, national firms with extensive resources to smaller, boutique agencies that offer personalized service.

Key Benefits of Working with a Real Estate Brokerage

Expert Market Knowledge

Real estate brokerages have their finger on the pulse of the market. Their agents possess in-depth knowledge of local neighborhoods, market trends, and property values. This expertise is invaluable when it comes to pricing your property correctly, finding the right neighborhood, or identifying emerging market opportunities. Whether you’re buying or selling, understanding the nuances of the market can make a significant difference in the outcome of your transaction.

Access to Resources and Networks

Brokerages offer access to a wide array of resources that can benefit both buyers and sellers. For buyers, brokerages have access to comprehensive MLS (Multiple Listing Service) databases, which provide detailed information on available properties. Sellers benefit from these networks as well, gaining exposure to a broad audience through the brokerage’s marketing channels and connections. Additionally, brokerages often have relationships with other professionals, such as mortgage brokers, inspectors, and appraisers, facilitating a smoother transaction process.

Skilled Negotiation

Negotiation is a critical component of real estate transactions. Skilled real estate agents from brokerages bring extensive experience to the table, helping clients negotiate the best terms and prices. Their expertise can be particularly valuable in competitive markets, where they can employ strategies to enhance your position and secure favorable outcomes. Their negotiation skills can also help in navigating counteroffers, contingencies, and contract details.

Streamlined Transactions

Real estate transactions involve a plethora of paperwork, legal requirements, and deadlines. A real estate brokerage manages these aspects efficiently, ensuring that all documents are completed accurately and on time. This attention to detail helps prevent costly mistakes and delays. Brokerages also handle communication between parties, coordinate inspections and appraisals, and oversee the closing process, providing a streamlined experience for their clients. Hop over here to learn more. 

Marketing Expertise

For sellers, marketing is crucial to attract potential buyers and achieve the best sale price. Real estate brokerages employ various marketing strategies, from professional photography and virtual tours to online listings and open houses. Their marketing efforts are designed to showcase your property’s best features and reach the widest possible audience. Additionally, brokerages use data-driven approaches to target the right buyers, increasing the likelihood of a successful sale.

Choosing the Right Real Estate Brokerage

According to the experts at Marilyn Wilson Dream Properties® Inc., selecting the right real estate brokerage can have a significant impact on your real estate journey. Here are some factors to consider when choosing a brokerage:

Reputation and Experience: Look for a brokerage with a strong reputation and a track record of successful transactions. Experienced brokerages are more likely to have the expertise needed to navigate complex situations.

Agent Specializations: Ensure the brokerage has agents with experience in the specific type of real estate transaction you are pursuing, whether it’s residential, commercial, or investment properties.

Services Offered: Assess the range of services provided by the brokerage. A full-service brokerage that offers comprehensive support, including marketing and negotiation, may be preferable for more complex transactions.

Communication and Support: Choose a brokerage that communicates effectively and offers the level of support you need. Good communication is essential for a smooth transaction.

Partnering with a real estate brokerage can significantly enhance your property ventures, offering expertise, resources, and support that can lead to better outcomes. Whether you’re buying, selling, or investing, a real estate brokerage provides the tools and knowledge needed to navigate the complexities of the real estate market. By leveraging their services, you can make informed decisions, streamline transactions, and ultimately achieve your real estate goals more effectively.

[theshulergroup]

When you make an offer with a fully pre-underwritten loan from Prosperity Home Mortgage, that offer looks as good as cash to sellers. If you participate in the Competitive Edge Program, the following is guaranteed:

A payout of $30,000: $15,000 to both the seller and to the listing agent’s brokerage if loan doesn’t close on time

A 3-year window of opportunity to refinance if rates drop

Don’t miss out on this amazing program! Let me connect you with a knowledgeable Prosperity Home Mortgage Consultant. It’s just one of the ways that I, as a buyer’s agent, bring value to your next home purchase.

Visit 10171 W Clover Lane Website!

Visit Our Blog Today!

https://billyshuler.myagent.site/

What’s Your Home Worth?

https://ebby.findbuyers.com/billyshuler

Contact Us Today!

Ebby Halliday

The Shuler Group

Billy Shuler

Cell: 972.977.7311

Email: billyshuler@ebby.com

Website: https://www.ebby.com/bio/billyshuler

[classic-property-management]

Classic Property Management•

Classic Real Estate Services is a brokerage for real estate investors with properties in the Dallas Fort Worth metropolitan area since 1987.

Hiring Classic Property Management, to manage your residential investment property or properties in the Dallas/Fort Worth (DFW) Metropolitan area can offer several key benefits:

1. Tenant Screening:

Classic Property Management has the experience with vetting potential tenants, which can help ensure you get responsible renters who will pay rent on time and take care of your property. This reduces the risk of late payments and property damage.

2. Efficient Rent Collection: Classic Property Management ensures timely rent collection and has systems in place to enforce late fees and manage any payment issues, ensuring consistent cash flow.

3. Legal Compliance:

Dallas-Fort Worth, like other regions, has specific property laws, including tenant rights, lease regulations, and eviction processes. Classic Property Management ensures you comply with all local, state, and federal regulations, reducing the risk of legal disputes.

4. Maintenance and Repairs:

Classic Property Management has relationships with local contractors and can handle maintenance and repairs promptly. We can help prevent small issues from turning into expensive problems, keeping your property in good condition.

5. Marketing and Vacancy Filling: Classic Property Management can market your property, list it on rental platforms, and find tenants quickly. Classic knows the local rental market and can price your property competitively to minimize vacancies.

6. Handling Tenant Issues: Whether it’s maintenance requests, tenant complaints, or evictions, Classic Property Management handles the day-to-day concerns, freeing you from these responsibilities.

7. Local Market Expertise: Classic Property Management in the DFW Metroplex is familiar with market trends, neighborhood preferences, and competitive rental pricing, helping you maximize your return on investment.

8. Time Savings:

Managing a rental property is time-consuming, especially with multiple units. Classic Property Management frees up your time, allowing you to focus on other priorities or investments.

9. Reduced Stress:

With our professionals managing your properties, you can avoid the stress of dealing with tenants, late-night emergencies, and complex legal issues.

10. Scalability:

If you have multiple investment properties or plan to grow your portfolio, Classic Property Management makes it easier to scale without being overwhelmed by the increasing workload.

These benefits make Classic Property Management an attractive option for investors seeking hassle-free management and consistent returns in the DFW Metropolitan area.

We offer an extensive range of services, from property management marketing and leasing to financials and bookkeeping. Our priority is to provide our owners with the top rental property management services in the Dallas Fort Worth Metropolitan Area - specialized to your needs.

"Discover The Classic Difference"

www.classicpm.com

[danielduranshelbyville]

National Association of Realtors Provides Final Reminder of NAR Practice Change Implementation on August 17 2024

National Association of Realtors Provides Final Reminder of NAR Practice Change Implementation on August 17, 2024 https://ift.tt/6WqYP0U CHICAGO, IL—Today, the National Association of Realtors provides a final reminder to members, real estate professionals, and consumers that on August 17, 2024, the practice changes following NAR’s Proposed Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions will be implemented across the country. REALTOR® MLSs (those owned exclusively by one or more REALTOR® Associations) must implement the changes by August 17, 2024, to remain in compliance with NAR policy. As a reminder, 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. ·        Agents working with a buyer must enter into a written buyer agreement before the buyer can tour a home. The practice changes do not require an agency agreement or dictate any type of relationship. Please visit facts.realtor for the latest updates on the settlement and practice changes and for additional resources to assist with implementation of the settlement terms. Additionally, August 17, 2024, is the first date members of the “Settlement Class”— home sellers who sold a home on an MLS anywhere in the U.S. during the eligible date ranges and paid a commission to a real estate brokerage in connection with the sale of the home—can be informed about NAR’s proposed settlement of the Sitzer-Burnett case, through a process called class notice. Notice will be distributed by mail and electronically. Class notice informs class members of their rights, options, and deadlines to exercise those rights and options under the proposed settlement. via Real Estate Agent Magazine https://ift.tt/7Fvfhwc August 16, 2024 at 12:55PM

[sa7abnews]

Here’s What’s About to Change for People Buying and Selling Homes

New Post has been published on https://sa7ab.info/2024/08/16/heres-whats-about-to-change-for-people-buying-and-selling-homes/

Here’s What’s About to Change for People Buying and Selling Homes

It was huge news at the time: the National Association of Realtors (NAR) agreed in March to pay $418 million and make changes to how the home-buying process works in order to settle a class-action lawsuit that alleged the industry conspired to make agent commissions higher than they needed to be.

The provisions of the settlement go into effect on Aug. 17. For now, what consumers can expect is more paperwork, and potentially more confusion. 

“This is a grand social experiment,” says Leo Pareja, the CEO of exp Realty, one of the biggest real-estate brokerages in the country. “None of us know what’s about to happen.” 

Buyers now have to sign a contract

Here’s how the process used to work: a seller’s agent would list a home on an MLS, or multiple listing service, which is a database of properties for sale. Those listings would state that the seller of a home would pay a certain amount to compensate the buyer’s agent. This compensation was often about 3% of the sales price, which was also about what the seller’s agent would get from the seller. (The average amount ranges between jurisdictions and even from sale to sale; some agents were also paid flat fees.) 

Technically, those fees were negotiable. But most homeowners either didn’t know that or feel they could negotiate. In addition, home sellers allege, real-estate agents would sometimes “steer” buyers to specific homes based on the amount of compensation they could receive. As of Aug. 17, real-estate agents cannot list any sort of agent compensation when they put a house on multiple listing services, a change designed to eliminate steering.

Read More: Stop Looking For Your Forever Home.

In addition, both buyers and sellers are now required to sign a written agreement with their agent before the agent shows them a property or assists with a transaction. The buyer’s side of this is more consequential—most sellers have signed these contracts in the past, but few buyers did. In the new buyers’ contract, sometimes called an “exclusive representation agreement,” the buyer agrees to work with the agent for a certain period of time. Most importantly, the buyer and agent also agree on how the agent will be compensated, whether through a flat fee, a specific share of the purchase price, or another method. Agents must also make clear in this contract that broker commissions are fully negotiable, a change that consumer advocates hope will drive commissions—and prices—down.

Many real-estate agents say the changes are positive, including Jennifer Stevenson, a real-estate agent in upstate New York and a regional vice president for the National Association of Realtors. “This makes the process better,” she says. “Clients are going to understand exactly what is expected of me and what I am offering them as a service.”

But others aren’t so sure that the changes will be positive for consumers. Realtor associations across the country have been releasing drafts of contracts that are extremely lengthy and written in legal terms that are difficult to understand, says Tanya Monestier, a law professor at the University of Buffalo. The draft buyer agreement from the North Carolina Association of Realtors, for instance, is seven pages long.

Read More: When Should I Buy A House?

Monestier analyzed the draft agreement by the California Association of Realtors (CAR) for the Consumer Federation of America, and issued a report criticizing the agreement for being opaque—so opaque, in fact, that Monestier says she had trouble getting through the document. “No seller will read this monster of a document—much less be able to understand it,” she concluded. 

Not all new buyer forms are so dense. Monestier says she reviewed a few forms that were clear; those from Exp Realty, for instance, are just two pages long and explicitly spell out buyer and seller responsibilities. Exp has made these forms available to any company that wants to use them, says Pareja, the CEO. 

Compensation may be changing

Before the NAR settlement, it was standard for the seller to pay for both the seller and the buyer’s agents. That may not be the case going forward.

In tight housing markets, sellers could refuse to pay for the buyer’s agent because they have so much interest in their home. Instead, agent’s fees may become a bigger part of the negotiation when people are buying homes. If a buyer really wants a house, for instance, they could offer to pay the seller’s agent fees, and include that provision in their offer letter. Conversely, if a seller in a slow market is desperate to unload their home, they could offer to pay the buyer’s agent fees—though the agent could not disclose that on the listing. 

Monestier says she also expects there will be more buyers who choose not to have an agent at all, because they don’t want to be on the hook for the agent’s fee. That could lead to less potential work for many of the real-estate agents out there.

Most of all, the settlement could lower compensation for both buyer’s and seller’s agents. Academic papers have predicted that fees could decline by 30-50% as a result, which would end up lowering home prices as well.

Of course, it’s possible that old habits are hard to break, and that not much will change at all. Sellers are accustomed to paying for buyers’ broker fees, and they may continue to do so. Even if everyone involved knows they can negotiate. 

[douxlen]

Here’s What’s About to Change for People Buying and Selling Homes

New Post has been published on https://douxle.com/2024/08/14/heres-whats-about-to-change-for-people-buying-and-selling-homes/

Here’s What’s About to Change for People Buying and Selling Homes

It was huge news at the time: the National Association of Realtors (NAR) agreed in March to pay $418 million and make changes to how the home-buying process works in order to settle a class-action lawsuit that alleged the industry conspired to make agent commissions higher than they needed to be.

The provisions of the settlement go into effect on Aug. 17. For now, what consumers can expect is more paperwork, and potentially more confusion. 

“This is a grand social experiment,” says Leo Pareja, the CEO of exp Realty, one of the biggest real-estate brokerages in the country. “None of us know what’s about to happen.” 

Buyers now have to sign a contract

Here’s how the process used to work: a seller’s agent would list a home on an MLS, or multiple listing service, which is a database of properties for sale. Those listings would state that the seller of a home would pay a certain amount to compensate the buyer’s agent. This compensation was often about 3% of the sales price, which was also about what the seller��s agent would get from the seller. (The average amount ranges between jurisdictions and even from sale to sale; some agents were also paid flat fees.) 

Technically, those fees were negotiable. But most homeowners either didn’t know that or feel they could negotiate. In addition, home sellers allege, real-estate agents would sometimes “steer” buyers to specific homes based on the amount of compensation they could receive. As of Aug. 17, real-estate agents cannot list any sort of agent compensation when they put a house on multiple listing services, a change designed to eliminate steering.

Read More: Stop Looking For Your Forever Home.

In addition, both buyers and sellers are now required to sign a written agreement with their agent before the agent shows them a property or assists with a transaction. The buyer’s side of this is more consequential—most sellers have signed these contracts in the past, but few buyers did. In the new buyers’ contract, sometimes called an “exclusive representation agreement,” the buyer agrees to work with the agent for a certain period of time. Most importantly, the buyer and agent also agree on how the agent will be compensated, whether through a flat fee, a specific share of the purchase price, or another method. Agents must also make clear in this contract that broker commissions are fully negotiable, a change that consumer advocates hope will drive commissions—and prices—down.

Many real-estate agents say the changes are positive, including Jennifer Stevenson, a real-estate agent in upstate New York and a regional vice president for the National Association of Realtors. “This makes the process better,” she says. “Clients are going to understand exactly what is expected of me and what I am offering them as a service.”

But others aren’t so sure that the changes will be positive for consumers. Realtor associations across the country have been releasing drafts of contracts that are extremely lengthy and written in legal terms that are difficult to understand, says Tanya Monestier, a law professor at the University of Buffalo. The draft buyer agreement from the North Carolina Association of Realtors, for instance, is seven pages long.

Read More: When Should I Buy A House?

Monestier analyzed the draft agreement by the California Association of Realtors (CAR) for the Consumer Federation of America, and issued a report criticizing the agreement for being opaque—so opaque, in fact, that Monestier says she had trouble getting through the document. “No seller will read this monster of a document—much less be able to understand it,” she concluded. 

Not all new buyer forms are so dense. Monestier says she reviewed a few forms that were clear; those from Exp Realty, for instance, are just two pages long and explicitly spell out buyer and seller responsibilities. Exp has made these forms available to any company that wants to use them, says Pareja, the CEO. 

Compensation may be changing

Before the NAR settlement, it was standard for the seller to pay for both the seller and the buyer’s agents. That may not be the case going forward.

In tight housing markets, sellers could refuse to pay for the buyer’s agent because they have so much interest in their home. Instead, agent’s fees may become a bigger part of the negotiation when people are buying homes. If a buyer really wants a house, for instance, they could offer to pay the seller’s agent fees, and include that provision in their offer letter. Conversely, if a seller in a slow market is desperate to unload their home, they could offer to pay the buyer’s agent fees—though the agent could not disclose that on the listing. 

Monestier says she also expects there will be more buyers who choose not to have an agent at all, because they don’t want to be on the hook for the agent’s fee. That could lead to less potential work for many of the real-estate agents out there.

Most of all, the settlement could lower compensation for both buyer’s and seller’s agents. Academic papers have predicted that fees could decline by 30-50% as a result, which would end up lowering home prices as well.

Of course, it’s possible that old habits are hard to break, and that not much will change at all. Sellers are accustomed to paying for buyers’ broker fees, and they may continue to do so. Even if everyone involved knows they can negotiate. 

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Armada Real Estate

At Armada Real Estate, we help individuals and families discovering their perfect home. Our dedicated real estate experts serve various Florida locations, focusing on Fort Myers, Naples, Bonita Springs, and Estero. We focus on both residential and commercial real estate sales. Our licensed Realtors offer exceptional service, ensuring hassle-free transactions for buyers and sellers. Leveraging the MLS, we supply extensive property listings. Our brokerage redefines real estate services in SW Florida, emphasizing trust, innovation, and client satisfaction. Let us assist you in achieving your real estate dreams. Armada Real Estate, 1500 Colonial Boulevard, Suite 103 Fort Myers, FL 33907, (239) 788-2738

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Financial Services Firm: Navigating the Modern Financial Landscape

In today's dynamic and complex economic environment, financial services firms play a pivotal role in shaping the financial well-being of individuals, businesses, and governments. These firms encompass a broad spectrum of services, from banking and insurance to investment management and advisory. Let's delve into the world of financial services firms, exploring their functions, challenges, and the emerging trends that are redefining the industry.

Understanding Financial Services Firms

A financial services firm is an institution that provides a wide range of financial products and services to clients. These services include:

Banking: Traditional banking services such as savings and checking accounts, loans, mortgages, and credit cards. Banks are essential for facilitating everyday financial transactions and providing credit.

Investment Services: Firms offering investment advice, portfolio management, and wealth management services. They help clients grow their assets through strategic investment in stocks, bonds, mutual funds, and other financial instruments.

Insurance: Providing risk management solutions through various types of insurance policies, including life, health, property, and casualty insurance. Insurance firms help individuals and businesses mitigate financial risks.

Brokerage Services: Acting as intermediaries in the buying and selling of securities. Brokerage firms connect buyers and sellers in financial markets, facilitating trades and providing market insights.

Advisory Services: Offering financial planning, tax advisory, and consulting services. These firms help clients make informed financial decisions and optimize their financial strategies.

The Evolving Landscape of Financial Services

The financial services industry is undergoing significant transformations driven by technological advancements, regulatory changes, and shifting consumer expectations. Here are some key trends shaping the future of financial services firms:

1. Digital Transformation

The digital revolution has brought about unprecedented changes in how financial services are delivered and consumed. Financial services firms are investing heavily in technology to enhance customer experiences, streamline operations, and improve efficiency. Key aspects of this digital transformation include:

Fintech Innovations: Fintech companies are disrupting traditional financial services with innovative solutions like digital wallets, peer-to-peer lending platforms, and robo-advisors.

Blockchain and Cryptocurrencies: Blockchain technology is being leveraged for secure and transparent transactions, while cryptocurrencies are emerging as new investment assets.

Artificial Intelligence and Machine Learning: AI and ML are being used to analyze vast amounts of data, providing insights for better decision-making, personalized services, and fraud detection.