Sacramento Market Update 7.31.2024

Welcome to August!  The biggest changes in years are coming to the real estate industry this month.  Please click on the image above to see a few of the major changes for buyers of real estate and their agents.  It will affect everyone, but I'm still struggling to see who it actually benefits.  There will be loads more forms, contracts and disclosures that's for sure.  My first impression is it actually doesn't help the consumer at all.  Sure, sellers won't be required to offer compensation to the buyer's agent (they never had to before either), but it's really stupid not to...the numbers prove it.  Homes that are listed below the average offered compensation sit longer and sell for less.  Ok, so now we have sellers trying to save money wondering why their house isn't selling. 
On the flip side, buyers will now have to sign a contract with a buyer's agent to see homes and write offers, and also will be responsible for paying them if they choose to even use one.  Granted, I don't see many scenarios where the buyer will actually be coming out of pocket to pay the agent they choose to represent them.  My guess is maybe 10% (although this does become a very strong negotiation tactic).  There will be a variety of ways to negotiate how the agent representative gets paid.  Most likely it will be the seller who ends up paying in some form or fashion.  Seem confusing?

Let's recap.  Sellers of homes are no longer required (never were), nor allowed to advertise on the MLS an offer of compensation.  Buyers of homes will be required to sign a contract before viewing homes with an agent and are responsible for paying their agent.  There will be many ways within the negotiation process for the buyer's agent to be paid without actually coming out of the buyer's pocket.  So, who does this benefit?

This benefits the agents in my opinion.  This benefits really good, relationship based, highly communicative agents that can differentiate themselves and hold themselves to a high standard.  I foresee a lot of shady business coming from these changes.

It is IMPERATIVE that you, your friends and family do their due diligence when choosing an agent on both the listing side and buy side.  It is IMPERATIVE that you read anything before signing it, and ask questions.

PLEASE, PLEASE, PLEASE reach out if you have any questions.

I'll go over in more detail on both the sell side and buy side in the coming weeks and months as these changes develop.
 

What are you seeing or hearing? I'd love to know paul@guiderealestate.com
Visit www.paulpelettarealtor.com