Changes to Realtor® Commission Rules: Complete Guide for Moreno Valley Homeowners
forsalebykama • December 27, 2024
Why Fair Commission Matters: Protecting Your Investment and Getting Expert Service
Real Estate Commission Changes 2024: What You Need to Know
The buzz is real! The real estate industry is experiencing one of its biggest shifts ever. From news outlets to the White House, everyone's talking about changes in how sellers compensate buyer's agents.
The Truth About the NAR Settlement
Let's clear the air. In March 2024, NAR President Kevin Sears announced a proposed settlement. Here's the real deal: NAR isn't admitting guilt – they're making changes so REALTORS® like me can continue helping families build wealth through homeownership.
What Actually Changed Regarding Compensation?
Real estate commissions can't be displayed in the MLS anymore. That's it!
Don't believe the hype when you hear "commissions are no longer required." As your REALTOR®, I need to set the record straight:
- Sellers can still choose to compensate buyer's agents, through Broker Cooperation or Credit
- Buyer representation remains crucial for smooth transactions
- Compensation is still part of the home price – it's just not listed in the MLS
Why Seller Compensation Makes Sense
Think about it:
- Many buyers are stretching their budgets for down payments and closing costs
- Remember when you bought your home? Seller compensation helped make it possible
- Most buyers need an agent's expertise but can't pay out of pocket
What Could Happen If You Don't Compensate?
- Your buyer pool MAY shrink – fewer qualified buyers can afford representation
- Unrepresented buyers might struggle with negotiations
- Transactions could become more complicated
Remember, today's sellers are tomorrow's buyers. Before deciding against compensation, consider how it might affect your next purchase.
Want to discuss how these changes affect your property specifically? Let's talk!
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Purchase mortgage applications are up 3% year-over-year as inventory grows and price growth cools, here's what it means for buyers and sellers right now.
National Homeownership Month data reveals a major awareness gap among qualified buyers
Making homeownership accessible to more people starts with adding to the nation’s severely limited inventory. The U.S. is facing an underbuilding gap of 5.5 million units, equaling a $4.4 trillion underinvestment in housing. America’s tax law can and must do more to promote homeownership , build stable communities, and boost economic growth. NAR is advocating for these bills and solutions : The More Homes on the Market Act (H.R. 1340) to decrease the equity penalty and incentivize more long-term owners to sell their homes. The Neighborhood Homes Investment Act (H.R. 2854) , which would attract private investment to build and rehabilitate owner-occupied homes. The Affordable Housing Credit Improvement Act (S. 1515/H.R. 2725) , which would encourage creating and preserving affordable housing. The Housing Supply Framework Act (H.R.2840/ S.1299) to create a national strategy for boosting housing production and affordability by reducing barriers to new housing development. The Revitalizing Downtowns and Main Streets Act (H.R. 2410) to convert underused commercial properties into residential and mixed-use housing. The Uplifting First-Time Homebuyers Act (H.R. 3526) to increase the amount that can be withdrawn penalty-free from IRAs for a down payment on a first home. Support small business by preserving the 199A qualified business income deduction and keeping taxes on business income lower for independent contractors and pass-through business owners. Support commercial real estate investment by preserving 1031 like-kind exchanges . Incentivize homeownership by increasing the cap on the state and local tax (SALT) deduction and eliminating the marriage penalty. NAR is also advocating to ensure equal access to professional representation and support fair housing . Priorities include: The Fair and Equal Housing Act to add sexual orientation and gender identity as protected classes under the Fair Housing Act. Ensuring veterans maintain access to professional representation and can compete in the market by allowing VA buyers to compensate their professional representative directly . Serving as a founding member of the Black Homeownership Collaborative and supporting the 3by30 initiative, with the goal of adding three million net new Black homeowners by 2030. Ready to explore your path to homeownership? Let's talk about what today's market — and tomorrow's legislation — means for you. Click schedule time to discuss with Kama Burton, Broker-Owner . Source: https://www.nar.realtor/june-is-national-homeownership-month/what-nar-is-doing-to-increase-homeownership-opportunities
