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Hello and welcome to my blog! When I started this I had good intentions of posting regularly but life and Covid had other ideas. Now it is time to pick up the reins again and try to keep you regularly informed with information that is both useful and occasionally entertaining! Sometimes life can get very serious and we deal with it as best as we can. Other times a little levity is called for and I am not averse to bringing a little humor to my blog. I will warn you, though, that I am English and my humor can occasionally be a little on the dark side!
Today I am addressing a serious subject – what is happening in the real estate business that will affect you if you are selling your home or buying a new one. Buyers and sellers will be impacted in different ways as a result of a big law suit that has turned the industry on its head and caused us all to adjust how we represent you. There has been an enormous variation in the reporting to the public – some of it sensational – ‘THE END OF THE 6% COMMISSION”, some of it relevant and thoughtful, and some of it just down right confusing! By the way, it has been at least 20 years since 6% was the norm and your agent is only paid roughly 1/4 of that, but I digress.
The result of the lawsuit impacts how your Realtor is paid. We are independent contractors, not employees with salaries, and we rely on being paid once a property sells. Let me just interject here that some members of the public believe we are overpaid – that all we do is show a few homes, write a contract and then we are paid the big bucks at closing! There is a small number of agents who do that and unfortunately we all get tarred with the same brush. (That may be my first English-ism!). Any of my previous clients will tell you, and I have the testimonials to prove it, that I pride myself on going above and beyond for you and many are surprised at just how much effort and skill goes into what I do, including working 7 days a week and sometimes still working at 10.00pm. Real estate is not a hobby – it is my full time career.
Please don’t get me wrong – I am passionate about what I do and I get to meet some lovely people, share my knowledge and expertise with you, and facilitate your successful real estate transaction. I am constantly learning – in my opinion you shouldn’t be in real estate unless you are willing to regularly improve your skills – and I sometimes get to use my teaching skills to train other agents. The need to share knowledge is in my bones!
So how will the new rules affect you? We use MLS (Multiple Listing Service) to list your homes for sale or find homes for buyers. When we post a listing we also post how much a Buyer’s Agent will be paid when they bring a buyer who successfully completes the purchase. There has forever been a debate as to who is paying the compensation (the fee – whatever you want to call it) to the Buyer’s Agent. Is it the seller because it comes out of the final settlement funds, or is it the buyer who brings the money to the closing table? The lawsuit was brought by a group of sellers who felt it was unfair for the seller to pay an agent who represented the buyer, not themselves. The courts agreed with them so now each party will be expected to pay their own agent. In reality it isn’t that simple. There are many practicalities have to be worked out as we move forward and so far the start date for the changes is August 17th. This has changed once already so I will keep you posted.
In the meantime, I would welcome the chance to have a conversation with you about how this will affect you if you are a buyer or a seller. Please feel free to call me for a chat about this or any of your real estate needs. I will answer your questions in a way that makes sense to you because I am a big believer that knowledge is power.
I know this is longer than your average blog but this is important stuff that impacts you as the consumer. My number is 978 621 9486 and I am at my best after 9.00am and before 8.00pm! You can also email me at fanderton@barrettsir.com.
