Who Will Pay Buyer Agent Commissions? - Ask a Realtor®

A: The short answer is, “We don’t know”. You may have heard on the news that the National Association of Realtors® (NAR) and several large real estate brokerages recently agreed to settle a class-action law suit which will force agents to lower their commissions. The details of the case are long and boring, but let’s just say that in response to this settlement, we in the residential real estate industry will be changing the way we do things. This does NOT mean, however, that commissions will be going down. To understand why I say this, it’s important to understand how buyer agents earn their commissions. Currently in the state of Florida, when a homeowner lists their property for sale the entire commission is paid to the listing agent. Sellers do not pay the buyer's agent commission over and above the listing agent’s commission. The listing agent collects a commission at closing and shares that commission with the buyer’s agent. This might be the single-most important step in marketing a property - even more important than putting the property on the internet or putting a sign in the yard. Here’s why. Real estate agents are paid on commission only. No matter how many hours we work at our craft, we don’t get paid until a sale is closed. With that being said, if a buyer’s agent has to make a choice between showing a house that is not offering a commission and showing one that is offering a commission, which one do you think they will give priority to? Yes, there is talk of buyers paying their own agent commissions, but the vast majority of buyers struggle with their down-payments and closing costs. Adding the commission will make home ownership even more difficult for most. They too will focus on listings that will compensate their agent. Will buyers stop using buyer’s agents? Maybe. But that would be like going to court without a lawyer and hoping the prosecutor goes easy on you. Everyone should have their own representation. You know the one! Call me today to learn how I protect the interests of buyers AND sellers!

Dazzle Mom with this Razzle Mimosa

Ingredients: ½ 1 lemon wedge 1/4 c. granulated sugar, for rim 1/4 c. raspberry sorbet 4 oz. Chambord 1 bottle of Mom’s favorite sparkling wine or champagne Fresh raspberries for garnish Directions: Rim 4 cocktail glasses with a lemon wedge generously wetting the rims. Dip rims in sugar until they are nicely coated. Place a small scoop of sorbet in each glass. Add 1 ounce of Chambord to each glass. Top each glass with Mom’s favorite sparkling wine or champagne. Garnish with fresh raspberries. https://www.delish.com/cooking/recipe-ideas/a19640955/raspberry-mimosas-recipe/  

Interior Plants to Enhance Your Home

Cultivating plants inside your home adds a touch of nature but also holds a number of health benefits! Here are 9 beautiful plant choices that are easy to care for. Best of all, almost all of them help to purify the air inside your space. Snake Plant (Sanseviera trifasciata): This low maintenance plant has striking vertical leaves and thrives in low light.   Pothos (Epipremmum aureum): AKA devil’s ivy has trailing vines perfect for hanging up high.   Spider Plant (Chlorophytum comosum): With long, arching leaves this plant is pet friendly   Peace Lily (Spathiphyllum): Elegant and lush, this plant thrives in low-moderate light i.e. bathrooms.   Rubber Plant (Ficus elastica): Tall and glossy this plant prefers bright light, i.e. livings rooms.   ZZ Plant (Zamioculcas zamiifolia): It’s glossy green foliage is easy to care for with low light and minimal water. Highly resistant to disease.   Boston Fern (Nephrolepis exaltata): Delicate feathery foliage thrives in high humidity and indirect light.   Aloe Vera: Beautiful AND useful this plant sooths burns and irritation. Also great for skin and hair.   Philodendron (Philodendron hederaceum): Heart shaped leaves and trailing vines great for hanging or climbing up trellises.   Source: https://app.homekeepr.com/sherell-joseph-wolford/blog

Study Says Cash Buyers Pay 10% Less

You’ve heard that old saying over and over again; “Cash is king”, but in case you had any doubts a recent study tells us that sellers would rather leave money on the table for an all-cash offer than risk a lost sale because a mortgage falls through. The study from the University of California San Dieo Rady School of Management says sellers would rather trade cash for convenience when it comes to the sale of their property. Cash buyers often forego inspections and even appraisals - two of the most challenging aspects of getting a loan from a mortgage lender. Says Michael Reher, co-author of the study, “When sellers accept a mortgage offer, it comes with risk.” In fact, 10% of all transactions involving a mortgage fail. Sellers are often willing to accept less for their property to avoid that risk. This doesn’t mean that all financed buyers pay 10% more. Those with a good borrowing profile pay about 6% more than cash buyers, especially in markets where most real estate transactions are successful, like here in Central Florida. Low-income buyers pay the most as their mortgage transactions are considered riskier. On average these buyers pay up to 17% more if they have to compete against an all-cash offer. Per study co-author Rossen Valkanov, one third of home purchases are all-cash deals, making these differences extremely impactful.  Says Valkanov, “In policy terms, U.S. taxpayers subsidize $8 trillion of mortgages to promote homeownership. If policy makers made it easier for mortgage buyers to close escrow, it could be a more cost-effective route to promoting homeownership than subsidizing mortgages for first-time homebuyers.” As more buyers with deep pockets enter the market paying cash to avoid high interest rates and to take advantage of the 10% “cash discount”, there are a number of implications for the real estate market. For one thing, the average age of first time home buyers is going up, meaning younger people can’t or are opting not to compete for homes to purchase. Secondly a market with more cash buyers may erode the value of real estate making it a less attractive savings option. Valkanov goes on to say that one solution might be to educate sellers about the home buying process. Making sure that sellers are well-informed about the risks and rewards of cash versus a mortgaged offer could give mortgaged buyers a leg up in the competition. In markets where transactions have a high closing ratio, well-qualified loan applicants who can close quickly and can offer more than a cash buyer, may have a better shot of getting an offer accepted. Source: https://www.floridarealtors.org/news-media/news-articles/2024/04/study-all-cash-buyers-pay-10-less