How new rules for real estate commission could impact buyers, sellers and realtors

. All right. The 6% commission for realtors. When it comes to buying or selling a home is no more. The National Association of Realtors announced a settlement that, in essence, eliminates rules on commissions. Christina Gennari of Christina Gennari Real Estate Group in Birmingham, Keller Williams Domain is with us now in studio. And Christina, let me first ask you, we were all kind of surprised by this news. What does it mean for buyers? What does it mean for sellers? But what does it mean for realtors? How do you guys get paid? So when a home is listed, typically sellers have, arranged and negotiated the commissions upfront.

So the seller says the listing commission will be X and the buying commission will be Y. That's always been negotiable. What's changing now is that we'll have a written buyer's agency agreement for everyone representing a buyer, and that commission will be pre-negotiated with the buyer. So in like if you were going to buy a house now or a year ago, who's paying you? Is it the seller that pays you initially you've made that agreement with the seller. So if you look at the balance sheet, it comes out of the seller expenses. They set that up 30 years ago so that buyers could have representation , because otherwise the buyer was paying the agent back.

Back in the day. Sure. Now what about this ruling? We hear the 6% commission goes away. I mean, spring time is a very popular time to list your house, to buy a house, but this won't go into effect until mid-July mid-July. So if you were to list your house today, it's under the same rules that Nar had, right? Everything still the same? It's probably just going to be a function of the paperwork and how we identify the buyer. Buying agent and selling agent. So listing and selling your home today is great. The market's fantastic. We've been super busy for the spring market.

What about it, is there any advantage for you know, a seller or a buyer without this? Without this rate essentially because you're saying if I'm if I'm getting it right, that. Yeah, it's still going to be the same kind of cost, you're just going to do it in a different way. Most likely. Most likely. That's what we'll see. What we don't want to see is that first time home buyers, VA buyers or FHA buyers and other people who need concessions are at a disadvantage because of this ruling. So we want to make sure we protect everyone and work in all of the buyers best interests, because the buying agent to, you know, what's the incentive, right? At that point, if you're not getting paid as a buyer's agent, you essentially wake up unemployed every day and work with clients for days, weeks, months, years, hoping that someday you'll find the right home for them and you'll have aght, so let's talk about home buyers for a second.

I want to ask you about this Zillow report that came at the end of February. It said that to own a home comfortably, right n, you need to have a household income of $106,000. That's up 80% from 2020, where you needed $59,000 to comfortably afford a home. First of all, did you see that report and why is that number so drastically higher? So that's based on one a purchase price. So if it's fluctuates based on the home price you're buying, but two consumer debt is at an all time high. So credit card debt, car payments Netflix accounts those are all things that are increasing the debt side of the debt to income ratio. That's taken into consideration when you're qualifying for a mortgage. Okay. So that's where that discrepancy comes in. It's that income to debt ratio. That's that's really accounted for when you're looking at a mortgage. Exactly. All right Christina, where can people find you, because I know tonight, today and the springtime is a pretty hot time to buy and sell a home.

It is. We are busy every day. Sold. is my website, so please come visit us. And also if you have questions as a buyer or seller, we're happy to answer all the questions and work through.

As found on YouTube

Leave a Comment

Your email address will not be published. Required fields are marked *