Mike O’Neil
There has been much discussion and speculation about the National Association of Realtors’ new rule changes with regard to commission. This is a brief summary:
Essentially, there are two significant changes. Blanket offers of compensation from the seller (seller’s agent) to buyers agent will not be posted on the multi list. They can still be made through other means, internet, etc. Also, homebuyers will be required to sign a representation agreement when they hire a buyer agent. It remains to be seen how this will affect commissions. Will buyers balk at paying their own fees? Will sellers continue to pay buyer broker fees through other means? And certainly who is paying the commission will probably affect home prices. At this point the jury is out.
In my opinion and recent experience, this will affect first time buyers whose funds are limited. There is already a shortage of inventory, and rates are higher. In most cases, industry experts see this restricting buyers’ ability to purchase, which in turn, will not benefit sellers.
It will take quite some time for this to iron itself out. I have my own thoughts as to advice I’d give a buyer, or a seller. There is an option for sellers to offer buyer concessions (which is essentially saying we’ll pay some closing costs).
The difficulty is as buyers and their agents see homes, there is no level playing field. Who is paying who?
My position is each buyer and each seller is unique and needs to be advised accordingly. Most of the realtors in Bucks County don’t have years of experience in appraisal value, inspections, and negotiating which will now be contracts and offers with different terms.
I am fortunate in that respect. For a better explanation, feel free to call me at 215-962-8511 or email me at mike.oneil@foxroach.com. The good news is that the market will remain strong in Bucks County due to demand.