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11 Upgrades That Actually Make Your House Harder To Sell, According to Real Estate Experts

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In a competitive housing market where first impressions are everything, coming in with all the right intel on buyer psychology is key to a speedy sale. “While you only need one buyer, it’s also important that you’re putting your absolute best foot forward,” Austin-based real estate agent Emily Ross says, adding that buyers are getting pickier these days and less willing to renovate after moving in. At the risk of staging a boring home, Ross says, “When in doubt, go classic.” Above all, buyers prize neutrals, matching appliances, and open spaces that can help them envision how they want to shape the home rather than living with other people’s existing design decisions.

She, along with Opendoor head of real estate Kerry Melcher, advise looking at other listed homes in your neighborhood for context clues on what’s working and what’s not. “I often try to find a recent sale in the neighborhood that sold for an above-average price and/or quickly as an example of what to emulate,” Ross says. In other cases, having the only home on the market in your neighborhood without a renovated kitchen lets you know that you might not be getting the most competitive offers compared with the Joneses next door.

To hear more on what modern finishes and design choices are of-the-moment but not so friendly to buyers, we asked real estate agents what to avoid, along with what they recommend swapping in instead.

Related StoriesA Colorful Kitchen

Colorful hues can be a draw for individual buyers, but they won’t appeal to everyone. Take yellow, a hue that’s become a popular choice for brightening up the kitchen. “Yellow is said to symbolize energy and optimism, and I’ve often seen it used in kitchens and laundry rooms,” Melcher says. Still, she notes, the sunny hue can potentially alienate people and make dimly lit rooms appear more dingy.

Buyer-friendly alternative: Melcher suggests sticking to traditional neutrals that offer shoppers a blank slate so they can easily envision their style.

Related StoryNaked Floor-to-Ceiling Windows

Tall, open floor-to-ceiling windows without any muntins (vertical dividers) or grilles crisscrossing them are a fixture of the modern glass-house trope. They draw in lots of sunlight and offer unobscured views of the outdoors, which you might think could only be a good thing. Ross warns that this trend isn’t likely to win over buyers who prioritize privacy, energy efficiency, and security.

Buyer-friendly alternative: Ross suggests buying long, sheer curtains or remote-controlled roller blinds to soften the windows and shield the home from prying eyes.

Related StoryBlack Kitchen Cabinets

Some homeowners today are venturing off the beaten path and into moodier palettes for kitchen cabinets, opting or colors like black and dark green to play off matte appliances and finishes. The trend can be polarizing.

Buyer-friendly alternative: Ross suggests playing it safe with a clean white palette for cabinets and adding personality with new knobs and pulls. If you’re still itching to have some fun with moody or bright colors and patterns, she adds, a powder room or utility room is a great place to do that.

Related StoryA Jewel Box Ceiling

Cloaking an entire room in one hue—a paint technique also called color drenching—can heighten its coziness and make intimidatingly high ceilings feel lower and more human scale, though the jewel-box look is not a design choice for the faint of heart.

Buyer-friendly alternative: Add a slightly darker accent wall to your primary bedroom or bathroom to can break up the sea of neutrals, Ross advises.

Related StoryBold Appliances

Sometimes your appliances can be a deterrent to buyers who gravitate toward a sleek and simple aesthetic. Los Angeles–based real estate broker Casey Winchell Napolitano, founder of NDA Real Estate, says “2024 is all about bold color choices in the kitchen,” and points to black or pink statement appliances as an example. All that flair may be a fleeting trend, though.

Buyer-friendly alternative: Napolitano recommends swapping out colorful appliances for classic ones in stainless steel or panel-ready appliances that offer broader appeal when it comes time to sell. “Bonus points if you can get all the appliances to match,” Ross adds, whether that’s a suite of matching stainless steel or paneled devices.

Glass Door Refrigerators

Another appliance no-no, according to Napolitano, is glass door refrigerators, which are popular for their modern aesthetic but not so practical. “While they can certainly add a sleek, modern touch to a kitchen, they require constant upkeep to maintain their appeal,” she says. “Smudges, fingerprints, and food splatter can quickly diminish their allure.” Besides upkeep, some buyers might also be turned off by the lack of door storage that’s common among these types of fridges.

Buyer-friendly alternative: Opt for a standard door fridge. French door and bottom-freezer styles are especially popular.

Related StoryMaximalist Wallpaper and Custom Murals

In real estate, where first impressions are everything, buyers might not want to open the door to wild patterns on every wall. “If they see bold or outdated wallpaper, they immediately calculate the cost and effort of removing it, and it’s expensive,” Napolitano says. Melcher adds that the same goes for custom murals, which can potentially deter buyers by coming across as too personalized.

Buyer-friendly alternative: Neutral paint. Both Napolitano and Melcher say it presents as a clean slate that allows potential buyers to imagine their own touches, making it easier to emotionally connect with the home. According to Opendoor’s 2024 Home Decor Report, homeowners prefer beige/tan, gray, and variations of white paint for the exterior, interior, and front door of a home.

Related StoryLED Chandeliers

Beyond the much-maligned boob lighting of rental homes, more directional choices like LED chandeliers in unusual configurations are en vogue but not always well received by shoppers. Ross says that when installed over a dining table or as pendants over a kitchen island, they can feel too cold and detract from the surrounding beauty of the space.

Buyer-friendly alternative: A staircase, entryway, or other walkthrough area is a better location for making the most of these sculptural lights (and making a good first impression with buyers), Ross says.

Related StoryThe Color Pink

Barbie pink had a moment last year at the box office, in home design, and in businesses—basically everywhere except in the housing market. Opendoor data identifies pink as the least appealing color for exteriors, interiors, and front doors, Melcher says. “Pink exteriors can be overwhelming for some,” she adds.

Buyer-friendly alternative: Incorporate pink in less permanent or softer ways. “I’d advise homeowners to incorporate the color in smaller doses and in more muted tones, like dusty rose,” Melcher says.

Related StoryCollections and Displays

Anti-minimalist cluttercore enthusiasts have turned an artful obsession with nostalgia into a whole lifestyle. According to Ross, all that clutter doesn’t photograph well for a listing. “The less on the countertop, the longer and bigger it looks on camera,” she says.

Napolitano is a little sterner: “Buyers want to envision themselves in the home and if you have too much going on, it can literally make or break an opportunity for an offer,” she emphasizes.

Buyer-friendly alternative: Keep surfaces clear of personal items—and keep most of your belongings in closed storage.

Related StoryBig, Maximalist Furnishings

That same less-is-more philosophy holds true for your furniture too. Napolitano says a good edit is always necessary to open up a space, and Ross explains that the things to keep in a purge are furnishings that fit the room rather than making it appear smaller. That means losing the oversized couches, conversation pits, or otherwise maximalist-leaning designs that—while popular on Instagram—can overwhelm a tight space IRL. “Also, make sure you don’t have anything in your home that may be meaningful to you but controversial or offensive to buyers,” Napolitano adds.

Buyer-friendly alternative: Choose minimalist furniture with a sleek profile that makes your space look larger and more open.

Related Story

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

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Guide to Real Estate in Mexico — Continually Updated

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Comprehensive guide to real estate in Mexico for buyers, owners, sellers and renters—continually revised and updated.

Extensive and detailed guide to real estate in Mexico

Our comprehensive guides to real estate in Mexico introduce you to essential information about property in Mexico whether you are:

Renting property in Mexico;
Buying a home in Mexico;
An owner who needs to insure and maintain the property;
An owner who plans to rent a property in Mexico;
Selling your home in Mexico; and
Working with Real Estate Agents in Mexico.

Property rental in Mexico

We publish detailed guides about all aspects of property in Mexico, including renting residential property here.

Property purchase in Mexico

Connect to detailed and exhaustive guides about buying and owning property in Mexico.

Owning and maintaining a property in Mexico

Browse detailed information that helps existing property owners manage, maintain, and insure their property in Mexico.

Insurance for your home in Mexico

Helpful guides and insights to help you consider how to get the right level of coverage for your home and property in Mexico, including coverage against third party liability damages.

Selling your home in Mexico

When you come to sell your residential property in Mexico, our guides and articles give you practical insights to help you prepare, market and sell your property.

Working with realty agents in Mexico

Insights and tips for finding and working with a local realty agent in Mexico, whether you are renting, buying or selling a property.

Learn more about real estate in Mexico

We continually update our guides and articles about matters related to property and real estate in Mexico.  Connect to further resources for insights and connections:

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Our free newsletter about Mexico brings you a monthly round-up of recently published stories and opportunities, as well as gems from our archives.



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

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New real estate commission rules to roll out Aug.17: Here’s how selling and buying a home

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New rules to how homes are bought and sold could mean an average savings of more than $50,000 to Peninsula home sellers. Photo courtesy Getty Images.

Big changes are coming to how homes are bought and sold beginning Aug. 17 when new rules roll out that will revamp how Realtors get paid commission. 

The changes, which are part of a $418 million court settlement that the trade group the National Association of Realtors announced in March, put an end to the decades-old practice requiring home sellers to pay 5% to 6% of a home’s purchase price to cover the commission for both the listing agent and the buyer’s agent.

For sellers on the Midpeninsula, where the median price for a single-family home is above $2 million – this means an average savings of more than $50,000 in commission fees.

The sudden death of the 6% commission

The Sitzer/Burnett buyer-broker commission lawsuit – a class-action lawsuit filed in Kansas City, Mo., last October on behalf of 260,000 home sellers in the Midwest over the National Association of Realtors’ commission rules – paved the way for the new regulations that will affect sellers, buyers and agents nationwide. 

A federal jury found the National Association of Realtors and some residential brokerages liable for nearly $1.8 billion in damages after determining they conspired to inflate commissions by forcing sellers to make non-negotiable offers of compensation to the buyer’s agent for listings on the Multiple Listing Service. 

What buyers should know

If you are a buyer and your agent is using an Multiple Listing Service, you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided and for how much. Written agreements are required for both in-person and live virtual home tours and must include: 

The amount of compensation the real estate agent will receive and how this amount will be determined. Is it a flat fee, a percent of the home cost or an hourly rate?  Compensation cannot be open-ended or determined by “whatever commission amount” the seller is offering to give to the buyer’s agent. 

A statement indicating that the agent is prohibited from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer

A statement indicating that broker fees and commissions are fully negotiable and not set by law. 

Information from the National Association of Realtors.

To resolve the litigation claims against the trade association and more than one million Realtor members, the National Association of Realtors agreed to make changes to its commission process as part of the $418 million settlement agreement.

The association, however, has stressed that commissions have always been negotiable and continues to deny any wrongdoing by its members in regard to commissions. 

“NAR does not dictate commissions. This was true before the settlement agreement and remains true once the practice changes go into effect,” according to a statement by the association.  

What the changes mean to buyers and sellers

Under the new system, the most significant change is how buyers’ agents are paid. While the seller can choose to pay a buyer’s agent, the rules make it crystal clear that sellers are no longer required to offer any compensation to a buyer’s agent. 

Buyers now will be required to negotiate directly with their own agents and must enter into signed agreements that outline how they will compensate their agent (flat fee, hourly rate or other arrangements), the amount they will pay and what services they want their agent to provide. Written agreements will be required before a buyer and their agent can do any in-person or live virtual home tours. Buyers do not need a written agreement if they are just speaking to an agent at an open house or asking them about their services.

There are also changes to how and where real estate professionals may communicate with each other about offers of compensation. These offers are no longer allowed on Multiple Listing Service platforms, which are private databases created, maintained and paid for by real estate professionals and provide property listings to Zillow, Trulia, Realtor.com and others.  

Individual agents and real estate companies, however, will still be able to reference compensation on their own websites. 

“These changes will bring more transparency and more clarity for home sellers and buyers,” said Jennifer Branchini, regional vice president of the National Association of Realtors for California, Hawaii and Guam. Branchini, who served as last year’s president of the California Association of Realtors, manages the Compass real estate office in Pleasanton.

Talk of the industry

The lawsuit and the National Association of Realtors’ subsequent agreement are the talk of the industry — but little of it on the record. Numerous local Realtors, the Silicon Valley Association of Realtors, the Sunnyvale office of MLS, and the Real Estate Research Institute of Hartford, Conn., all either declined comment or did not return messages for this story.

Michael Repka, CEO and general counsel of DeLeon Realty of Palo Alto, had plenty to say, however. He said the 5% to 6% commission structure — including sellers paying 2.5% to agents representing buyers — has been the norm throughout the industry since he joined it in the 1990s.

He said a recent analysis of home sales in Palo Alto valued at between $2 million and $10 million, revealed that nearly 95% of them included the 2.5% fee paid by sellers to agents representing buyers.

Repka said he believes the rule changes will be good for the real estate market. With sellers now looking at paying a commission of only 2.5% to 3.5% on any given transaction, Repka said this could persuade more long-time Midpeninsula homeowners to sell their homes. That, in turn, could put more badly needed housing inventory onto what has been an historically tight market in recent years.

“This new situation results in something that is more fair to the seller,” he said.

The new rules still allow sellers to offer some compensation to the agents of buyers, but the amount paid, if any, is now up to the seller, Repka added. 

“Typically, sellers had no option to pay less than the total commission. Even if the buyer’s agent’s involvement was minimal, or if the buyer discovered the property on their own (without the assistance of an agent), the listing agent retained both sides of the commission,” Repka said. 

This practice, he explained, has been used to encourage agents to point buyers toward properties that offer them higher commission rates. Sellers who didn’t offer 2.5% commission to a buyer’s agent, allegedly risked having their listing “blacklisted” by some real estate agents, according to Repka. 

“In essence, buyers will now have access to information about all homes available for sale, irrespective of whether the seller offers minimal or even no compensation to the buyer’s agent,” Repka said. 

According to the settlement facts outlined on the National Association of Realtors’ website, the association already had MLS policies in place regarding the non-filtering (or removal) of listings based on compensation. The new rules amend that policy “for clarification purposes and to ensure consistency with the proposed settlement agreement.”

Whether the 6% commission has been a longstanding and common practice, depends on whom one speaks to in the industry. 

One veteran Midpeninsula agent, who preferred not to be named, said 6% commissions have never been demanded across the board by agents locally, adding commissions are typically negotiated between home sellers and Realtors — and discounted commission rates are fairly common “to keep transactions alive.”

She said it’s not unusual for agents to “absorb costs” at times for sellers and buyers.

While the new rules provide more transparency and give sellers more options, some say the homebuying process may become more challenging for first-time buyers. 

“At a time when home prices and mortgage interest rates are higher, these new rules place an additional financial burden on homebuyers, particularly first-time homebuyers who are already struggling to come up with a down payment to purchase a home.” Eileen Giorgi, president of the Silicon Valley Association of Realtors, said in a news release from the association. 

New California requirements in the works

On the buyers’ side, Branchini, regional vice president of the National Association of Realtors, said the issue also has attracted the attention of lawmakers in Sacramento. The California Legislature currently is considering a bill that would require written agreements between agents and homebuyers. It would enshrine the requirement in state law, complementing the new industry directives.

Mantill Williams, Washington, D.C.-based vice president of communications for the National Association of Realtors, said 18 states currently have such laws, with several more, including California, now proposing similar legal requirements.

Assembly Bill 2992, authored by Assembly member Stephanie Nguyen, D-Elk Grove, would mandate buyer/broker written agreements — already required for sellers and brokers. The bill is still working its way through legislative committees.

Despite the National Association of Realtors’  widespread coverage, the association’s agreement does not yet cover all brokers in the industry. Officials of HomeServices of America Inc. of Edina, Minn., are still litigating the lawsuit, known as the Sitzer-Burnett vs. National Association of Realtors case. HomeServices of America is the parent company of Intero Real Estate Services, which has local offices in Palo Alto, Menlo Park, Los Altos and Redwood City.

David Goll is a freelance writer who regularly contributes to the Real Estate section.

– Linda Taaffe contributed to this article.



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

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Florida’s real estate market has a split personality: What to know if you’re buying or

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Florida’s real estate market has a split personality: What to know if you’re buying or selling in the Sunshine State

Florida’s housing market is a tale of two states. On the coast, condo prices are falling with residents being driven out by high insurance costs and assessment fees, while inland, the cost of single-family homes is holding steady. Local experts say this divergence is driven by soaring insurance premiums and rising assessment fees under new state regulations, which have significantly affected condo owners. [Source: Realtor.com]

Florida house named HGTV’s 2024 Dream Home is now for sale

Every year, television network HGTV hosts a “Dream Home” giveaway, and this time a waterfront Florida home was up for grabs. Marie Fratta, a teacher from New York’s Westchester County, won the pad (and a new Mercedes-Benz and $100K) three months ago, and now it appears she’s looking to get rid of it. [Source: Orlando Weekly]

This Florida city was hit hard when the 2008 housing bubble burst—now prices are falling again

While national aggregate home price indices are hovering around all-time highs, some regional housing markets in states like Florida, Texas, and Louisiana are experiencing home price corrections. This includes the Punta Gorda metro area in Southwest Florida. [Source: Fast Company]

Condo HOA fees jumped 60% in South Florida in past 5 years. Why higher costs are ahead

South Florida condo owners, burdened by spiraling insurance, repair bills and a new state law, saw their association fees shoot up nearly 60% over the past five years — driving some to consider difficult financial decisions to make their next HOA payment. [Source: Miami Herald]

Orlando home-purchase cancellations highest in country

Across the U.S., buyers are increasingly backing out of home purchases as prices rise and mortgage rates remain elevated. Orlando is seeing this trend play out in a more pronounced way than any other major market, with about 900 home-purchase agreements canceled in June, according to a report from Redfin. [Source: Orlando Business Journal]

STAT OF THE WEEK
13.4%
Farm real estate values in Florida jumped by 13.4% from 2023 to 2024. [Source: CVille Right Now]

ALSO TRENDING:

› South Florida real estate firm significantly grows Orlando presence [Orlando Business Journal]
KW Property Management & Consulting has added three new properties to its management portfolio in Central Florida totaling more than 1,600 units. The Miami-based firm has been contracted to oversee two condominium towers in downtown Orlando.

› It’s Ritz-Carlton vs. National as South Beach heavyweights battle over condo for billionaires [Miami Herald]
On Collins Avenue in South Beach, along a strip of jazzy historic mid-century high-rise hotels that have defined the city skyline for decades, two giants are going at it. And the outcome of their long-running battle could forever alter the look and feel of a landmark Miami Beach district that harks back to the city’s Golden Age. Whether that’s for the good for the future of highly popular but perennially troubled South Beach, or a harbinger of its continued erosion, is the gist of the dispute.

› Osceola joins movement to reject tax incentives for affordable housing [Orlando Sentinel]
Joining a growing list of municipalities across the state, Osceola County has decided to opt out of a program that uses tax incentives to boost affordable housing. The board of county commissioners voted swiftly and unanimously last week that Osceola will no longer provide property tax exemptions under Florida’s Live Local Act.

› Tampa reopens Rental and Move-in Assistance Program applications [WTSP]
The city of Tampa’s Rental and Move-in Assistance Program, or RMAP, is accepting new applications beginning Thursday, Aug. 8. The decision to re-open applications comes after significant rent increases in the Tampa housing market over the past few years.

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

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How new rules could change the real estate industry

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The National Association of Realtors (NAR) requires the implementation of two policy changes no later than Saturday, August 17.

San Luis Obispo County real estate agent Christa Lowry explained the two changes taking place.

“The first change is that buyers will not be able to enter a home without a written and signed buyer’s representation agreement with their buyer’s agent,” Lowry said.

That agreement negotiates a percentage of the sale the buyer will pay their agent. Prior to this rule, buyers could opt out of paying the buyer a commission.

“They had the option to not, but it was standard that they did,” Lowry said.

She added that while this new change requires the buyer to pay the buyer’s agent a commission, that commission fee is agreed upon by both parties.

“It’s a negotiable amount. That’s the most important thing to know,” Lowry said.

The second change prevents a listing agent from disclosing an agent’s commission or concession on the Multiple Listing Service. Instead, buyers will need to contact the listing agent directly about commission or concession fees.

“Buyers used to be able to call an agent and say, ‘Hey, I’d like to see five properties.’ There [was] no written agreement. There [was] no talk about commission or concession,” Lowry said. “Now they have to sit down and have that conversation with a buyer’s agent.”

Jenny Heinzen works as a broker for Vineyard Professional Real Estate, a luxury real estate firm in Paso Robles.

She said most of these changes involve a restructuring of business.

“It’s just kind of a work-around with the paperwork,” Heinzen said.

However, she said first-time home buyers could be impacted by the changes.

“A lot of times first-time home buyers are stretching for payment and if those first-time home buyers are asked to pay their buyer’s agent commission, that affects their down payment capabilities,” she said.

Heinzen noted that those costs can be avoided by structuring agreements differently.

“Our goal on our listings and most of the agents within the county is to get compensated by the seller,” Heinzen said.

She said for those new to buying a home or looking for help navigating these changes, finding the right agent is key.

“It’s going to be really important to work with good, experienced agents who are selling the types of property that you want to buy or sell,” Heinzen said. “Find a good agent and a good agent will educate you.”





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

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Real estate industry braces for shake-up as new rules roll out – Washington Examiner

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Aug. 17 will mark major changes for the real estate industry and the rollout of new rules about how Realtors are paid for buying and selling homes.

The changes are coming about because the powerful real estate trade group, the National Association of Realtors, agreed in March to settle lawsuits in which sellers accused the group of running up fees. At the time, the group agreed to pay $418 million in damages, but it also agreed to change the way commission rules work — a change that will go into effect within the week.

In the past, when someone went to buy a home, he or she would typically go out and get representation from a Realtor, and that Realtor’s compensation for his or her services was paid by the seller, according to Stephen O’Connor, chairman of the Center for Real Estate and Urban Analysis at George Washington University.

“So typically, a commission on a home, if you had a home for one million dollars and you were selling it, the commission structure would typically be 5% or 6%, out of that 5% or 6%, typically half would go to the listing broker, the person who was actually selling the house for the seller, and the other half would go to the buyer’s agent,” he explained to the Washington Examiner.

The NAR was sued because some people thought that was an unfair payment structure. Still, the NAR has argued that their compensation structures were always negotiable and transparent, O’Connor added.

With the new changes, now when someone wants to buy a house, he or she has to sign an agreement with an agent.

“So no longer is the seller responsible for paying the commission structure or the fees associated with the buyer’s representation,” O’Connor said. “So right now, as of Aug. 17, if I want to go out and I want to buy a house, I’m going to have to negotiate with a real estate agent and sign an agreement for buyer’s representation and negotiate what I’m going to pay out of my own pocket … the fee that that person is going to charge me for their professional services.”

The NAR itself has been optimistic about the new changes. Vince Malta, a member of NAR’s leadership team who previously served as the group’s president, told the Washington Examiner that the written agreement will improve transparency.

“We believe this will help with transparency, a better understanding of the relationship, what are the expectations of the parties, and it has to specify what compensation is expected or will be paid,” Malta said.

Malta said the agreement also makes it so offers of compensation will no longer be allowed on multiple listing services — central databases used by Realtors to share details about homes for sale.

“Those offers of compensation would have to occur off of the MLS, so various ways — another document like in a disclosure package or a phone call, but not on the multiple listing service,” he said.

But it doesn’t preclude an offer of compensation.

“If a seller and listing agent believe that it is in the best interest to sell that home to offer compensation to an agent that is representing a buyer, then offers of compensation could still be made,” Malta said.

The $418 million settlement and rules change came after a federal jury last October found major real estate groups liable and ordered them to pay $1.8 billion in damages as part of the antitrust lawsuit that accused them of colluding to inflate the rates of commissions.

The jury, based in Kansas City, Missouri, found that not only NAR but also Keller Williams Realty and HomeServices of America conspired to inflate and maintain high commissions artificially.

O’Conner said he doesn’t think this will greatly affect home sales volume. The housing market has been closely watched the past few years given soaring mortgage rates and home prices.

As of Wednesday, the average rate on a 30-year, fixed-rate mortgage was at 6.52%, according to Mortgage News Daily, which tracks daily changes in rates. That is down from a peak last year of above 8%, although it is still higher than in the years prior to the pandemic.

“I don’t think it’s going to affect home sales at all,” O’Connor said. “I think people are going to sell their home when they’re ready to sell their home. People are going to buy a home when they’re ready to buy a home. This is just different in terms of who gets to represent who and, more specifically, who’s paying who.”

On the agent side, O’Connor said it is yet to be seen how it will shake out, for instance, whether the change will affect the total membership size of the NAR. But he said it will be harder for agents to make money because of the change.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Others think this will be a big change that may be challenging for realtors.

“This is a grand social experiment in an industry at scale,” Leo Pareja, CEO of eXp Realty, told CNN. “I’m bracing my agents for what I call the ‘messy middle.’ I fully expect a lot of confusion.”



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

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New real estate commission rules coming: Here’s what CA buyers, sellers need to know

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WALNUT CREEK, Calif. (KGO) — The experience of buying or selling a home is going to be different than transactions in the past. A recent National Association of Realtors class action settlement agreement has laid out new rules that will now bring the buyer and seller into negotiations over commissions on the sale of a house – negotiating who pays commission and how much is paid.

“Today is the day that on the MLS any indication of compensation commission is eliminated, you can’t even look at historical data,” Tricia Thomas, the CEO of the Bay East Association of Realtors said.

Realtors say that will make it more complicated for agents who now will have to involve potential buyers and sellers in signing new more complicated paperwork.

“So the buyer and seller are looped into the transaction more so we’re able to be more transparent with them about compensation,” Barbara Clemons, president of the Bay East Association of Realtors said, “There will be more forms for the buyer and seller to fill out.”

That will be apparent when visiting an open house – buyers will be asked to sign forms and if they don’t have an agent representing them; they might not be able to get additional information about a property without an agent.

MORE: San Jose becomes 1st in CA to allow property owners to sell ADUs

Buyers will have to negotiate how much they are willing to pay the agent representing them. But sellers could incentivize a sale by offering to pay all or a portion of the buyer’s agent’s commission.

David Stark with the Bay East Association of Realtors said, “It’s the biggest decision of your life and it’s probably going to be intimidating regardless of these changes but the fact that there’s going to be so much more information available, hopefully that’ll take care of some of the anxiety people will be having about real estate transactions.”

How these changes will affect commissions or the market is still a big unknown.

“There is no crystal ball. I don’t believe this is a factor on its own that’s going to significantly influence housing prices,” Thomas said.

But it will be a learning curve for everyone looking to buy or sell a home now.

Copyright © 2024 KGO-TV. All Rights Reserved.



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Biggest shakeup in a century set to hit real estate agents this week: Here’s how they’re

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CNN
 — 

Realtors across the US are bracing for a seismic shift in the way they do business. Starting August 17, new rules will roll out that overhaul the way Realtors get paid to help people buy and sell their homes.

The changes, which are part of a $418 million settlement announced in March by the powerful trade group the National Association of Realtors, eliminate informal rules that propped up the industry’s traditional payment structure, where home sellers were typically on the hook to pay a 5% or 6% commission, usually split between their agent and the agent representing their home seller.

In the months since the settlement was announced, Realtors across the country have been preparing for the change, attending trainings and poring over the details of new contracts they must sign with prospective homebuyers. Some agents predict the rules will pave the way for new business models and potentially drive many full-service Realtors to leave the industry, while others are more sanguine about the impending changes.

“This is a grand social experiment in an industry at scale,” Leo Pareja, CEO of eXp Realty, one of the largest real estate brokerages in the US, said. “I’m bracing my agents for what I call the ‘messy middle.’ I fully expect a lot of confusion.”

In a statement, NAR’s president, Kevin Sears, said he was confident NAR members would adapt to the changes, which industry analysts have called the biggest change in America’s real estate market in a century.

“These changes help to further empower consumers with clarity and choice when buying and selling a home,” Sears said. As August 17 nears, “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.”

Historically, a seller’s agent charged homesellers a fee, often 5% or 6% of a home’s purchase price, that was intended to be shared with the buyer’s agent. That meant that homesellers could be on the hook for serious cash: A seller of a $1 million home might pay out $60,000 in commissions. Some experts have said that money was baked into homes’ listing prices, inflating the price of homes for sale.

A series of lawsuits alleged this standard practice violated antitrust laws, though the NAR has long argued that the commissions were always negotiable.

Along with a monetary payout, the NAR agreed to two key rule changes as part of an agreement to settle the lawsuits. Both take effect on August 17 and are designed — in theory­ — to shake loose the standard way of paying out commissions.

A judge granted preliminary approval of the NAR’s settlement in April, but the final approval hearing is scheduled for November 26.

The first change prohibits agents’ compensation from being included on multiple listing services, which are centralized databases used by Realtors to share details about homes for sale. Compensation details can still be advertised elsewhere or communicated in person or over the phone, though.

The second change requires buyers’ agents to discuss their compensation upfront. Come August 17, agents working with a prospective homebuyer must now enter into a written buyer agreement before touring a property together. This agreement is designed to inform buyers that they are responsible for paying their own Realtors if a seller chooses not to cover the cost.

However, prior to the changes, Realtors in 18 states were already required to sign buyer agency agreements. Mary Schumann, a Realtor in Minnesota, said that to her, NAR’s changes seem manageable.

“I always tend to wait and see how things shake out before I panic,” Schumann said. “We already do buyers agreements here, and this doesn’t seem to be incredibly different.”

By some estimates, real estate commissions could fall between 25% to 50%, according to a March analysis by TD Cowen Insights. This could pave the way for real estate companies with alternative business models, like flat-fee and discount brokerages, to thrive.

Shelly Cofini, the chief strategy officer at Redy, said she believed the NAR settlement would benefit her company. Redy, which operates nationwide, is a marketplace that allows real estate agents to bid on home listings, meaning agents could pay homesellers for the opportunity to represent them, cutting into their own commissions.

“This is part of this notion of shifting how real estate is always done,” Cofini said. “Because agents are in control of the proposal process, they decide on the cash incentive they’ll offer and they decide on the commission structure they’re willing to offer.”

Companies are seeking to capitalize on the impending changes in other ways, too. Flyhomes operates as a traditional real estate brokerage, but earlier this summer, the company launched an AI chatbot designed to answer questions that a homebuyer might traditionally ask their Realtor.

“Consumers don’t know this is coming,” Flyhomes’ chief strategy officer, Adam Hopson, said of the NAR changes. “When they decide they want to buy a home and they find they have to sign a contract, they may say, ‘whoa, what is this?’ We think this will drive them to find information from other sources. We will be one of those sources.”

Under the old standard, buyers often got representation for free, since their agent’s commissions came from the homeseller’s pocket.

Many Realtors who spoke to CNN said they believe the new set of rules will reward more experienced Realtors and shut out younger agents, since homebuyers may be wary of signing a legally binding agreement that ties them to a more inexperienced Realtor.

At 19, Madison Mathias, a Realtor in Chapin, South Carolina, said she has had to work overtime to dispel preconceived notions about her age to prospective clients, often re-reading contracts at night to ensure she has the details memorized.

Mathias said she thinks some Realtors will leave the industry, but she doesn’t believe age will be a factor.

“I think more agents will fall off because some people don’t like change,” she said. “Being a new agent, I have had some people question me, but I’ve never had somebody not want to work with me because of my time in the business. It’s all about confidence and educating yourself.”

“I’m not really worried about it too much,” she added.



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

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I Sell Real Estate in My Pajamas

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Exaggeration? Hmm…

Okay, so maybe I’m exaggerating a little. But I get up in the morning, head downstairs, grab a cup of coffee, and sit down in my office. I check email, and start to write. And my clients find me. I’ve been doing this for a couple of years now, and despite having built a comfortable online presence and a good client database, I’m treated as an exotic creature by my brokerage firm (and by most other agents in my area.)

Windshield, or Bug?

Someone I respect very much says that as the real estate business model continues to change at warp speed, you are either the windshield or the bug. I really don’t want to be the bug, but I don’t have to be driving the car –I just want to make sure I’m at least in the passenger seat! I wasn’t at the NAR conference in Orlando last week, but got to virtually ‘sit in’ on the panel discussions I wanted to see, courtesy of the Real Estate Zebra, Daniel Rothamel, and his live streaming videos. I could even chat with the other folks who were watching, and get their thoughts on the discussions taking place. Conferencing in pjs; priceless!

Now, I understand that I can’t show houses in my pjs. And that there is a tremendous amount of face to face interaction that comes into play when my clients are ready to meet in person and conduct business. But I can meet new people, establish relationships, and engage in some amazing conversations, all from the comfort of my home office. The tools are changing, the rules of engagement are changing, the overall business model for real estate brokerages is changing (hello, virtual office?). With a background in writing, I can use those skills to put my business expertise out there in a way that folks will appreciate.

You Do It Your Way, I’ll Do It Mine

The most fantastic thing about this business, in my opinion, is that you can run it the way that you want. What I do to be successful isn’t going to work for someone else, and that’s okay. There are clients that are a great fit for me, and folks that I would never be able to work with successfully. I have a huge mount of respect for an agent in my office who asks every single person that he comes in contact with if they want to buy a house. Really. And it works for him. I tend to think that my style probably wouldn’t appeal to his clients, and his style wouldn’t appeal to mine.

So I’m going to keep on writing in my pjs to reach out to my clients, and use that to grow my business. And just maybe, at some point soon, that won’t seem like such a strange way to work.

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

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Mountain-town real estate experts give tips on selling properties in high-end Colorado

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What makes a house unique are important to include on online listings. This shot of a Breckenridge home demonstrates the view of Breckenridge Ski Resort that can be seen through the property’s large glass windows.
Tripp Fay/Courtesy photo

There’s a reason “location, location, location” has become one of the most-used real estate phrases of all time. When it comes down to it, in many situations, location sells. People in the market for luxury homes often seek one out in scenic areas. 

Location can help a property stand out. But in popular resort communities, many homes on the market can claim to have a great location. Many people wonder how they can give their property a leg-up on the competition, so Summit County real estate experts offered a handful of tactics people looking to sell their luxury property can deploy when the competition is also pointing to its backyard and the mountain views in the High Country. 

Aerial shots that give a bird’s eye view, such as this one of a home near Breckenridge Ski Resort, help buyers get an idea of what a property’s surroundings are like. Tripp Fay/Courtesy photo

Many local real estate agents emphasized the importance of maximizing curb appeal when vying for bids in a resort-town market. 

Dana Cottrell, a Realtor for the Summit Resort Group and president-elect of the Colorado Association of Realtors, said curb appeal becomes more paramount based on the price of the home. She said the more expensive the property is, the higher the expectation is that it will have strong curb appeal.

That means investing in smart landscaping decisions as you own the home, and, when you’re ready to sell, Cottrell said curb appeal also means getting rid of any weeds in the front lawn or driveway, ensuring the lawn looks well-kept and highlighting the property’s tasteful landscaping. 

Jim Schlegel, a branch broker with Slifer Smith & Frampton Real Estate’s Ten Mile Team, said outdoor amenities — such as pools or fireplaces — can also help enhance curb appeal. A property that’s set up in a way that facilitates large gatherings or parties is likely going to stand out compared to others on the market.

A still image shows off the living room of a home on Timber Trail Road in Breckenridge that is listed for nearly $20 million. Investing in unique amenities and creating artistic touches in a room are important parts of marketing a property in a resort-town market like Summit County.Tripp Fay/Courtesy photo

Cottrell and Schlegel said in an era where many people rely on the internet to scope the scene for what luxury homes are on the market, it’s also very important to evoke good curb appeal in a property’s listing online. They said the best way to do that is to get aerial drone footage of the property so people can get insight into it — and its surroundings — before visiting it in person.

Cottrell said that high-quality aerial drone footage is becoming a standard in the luxury home market — so much so that some buyers are starting to expect it.

High-quality visuals are important tools to both show off the uniqueness of a property and its interior. It can be the difference between someone opting to tour a home — or not. 

This aerial drone shot demonstrates a 6,200-square-foot, ski-in-ski-out residence on Snowy Ridge Road in Breckenridge sold for $12 million, making it the most expensive home sold in Summit County in 2023. Jonathan Huffman/Summit Multimedia

“A buyer could be from anywhere from London to Mexico City. … Being able to present that property fully and show it off and make it enticing is important because it can get somebody to hop on a plane from London to come see it,” Schlegel said. 

Schlegel generally instructs photographers photographing homes he is selling to show how different aspects of the home function through the still images. For instance, he asks the photographers to have the faucet on when photographing the bathroom, and he wants the fireplace to be all lit up when capturing the living room. 

He added it’s crucial to showcase all the amenities that make the home unique in a listing, especially if the unit can be categorized as a ski-on, ski-off property, which he said are generally the fastest selling in Summit County. 

Cottrell said it’s imperative to showcase the home while it’s at its prime in a listing, which is largely dependent on making sure the home looks spotless. She said even a small smudge on a bathroom mirror can impact how buyers view a home. 

Realtors that sell luxury homes say that outdoor amenities, such as fireplaces overlooking sweeping views, help make a property more enticing to buyers.Tripp Fay/Courtesy photo

Alongside ensuring that every window sill looks dustless and every counter appears immaculate, it also means taking out anything like family photos before staging a home and offering tours. 

“T​​he whole idea is you want a buyer to be able to envision themselves living there,” Cottrell said. “Having family photos on the wall can make that hard to do.”

While selling a luxury home can be tough in a market where “great locations” are everywhere, Cottrell said its useful for the seller to have patience. Luxury homes tend to stay on the market longer, so people interested in eventually selling should keep this in mind.

Editor’s note: This story originally published in the June/July Summit County Home magazine.





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

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