Today I have a couple ideas to share.
NAR Settlement Began and the Buyer Broker Agreement Era is Here
The Buyer Broker Agreement Is NOW live (See both images above for full transparency).
(If you’d rather listen to my full explanation on this, check out my latest video where I explain it all)
Some consumers are already saying real estate is becoming more complex with these new changes. And the way my professional colleagues and I believe, buyers and sellers need us even more now than ever.
We’re handling high stakes, complex transactions. We view our professional services help mitigate risk, help our customers preserve capital, and help them make the best decisions possible in perhaps the largest purchase in their lives. By raising the professional bar, not lowering it, we believe our customers will continue to pay for our services.
But getting through the next 1, 2, or 6 months will take patience and working closer than every before. This is uncharted territory for sellers, buyers, and realtors. And during this time of change, elevated communication will be paramount. Not just for the conversation about how money flows in a transaction, but also about how our professional services may play out over time.
Since last Saturday, August 17th when the new changes implemented across the country, I’ve had nine conversations with sellers and buyers. We got through the confusion about the buyer broker agreement, and I can summarize how most customers deduced the change: it’s a procedural change and not much more.
But right now our industry doesn’t looks “like a Duck.” In front of our customer, realtors look confused in public while paddling like crazy behind the scenes. The buyer broker agreement convo is still wonky and will need more time to smooth out.
But with daily practice fear about the buyer broker agreement may dissolve sooner than later. And having the option to negotiate our compensation into the offer will build confidence and trust.
From me, you’ll continue to receive my best counsel, market insights, market data and guidance. I know that’s exactly what you need.
*** Why Local Market Data Is EVERYTHING
Walking out of a closing with my customer yesterday, a couple stopped and asked me the proverbial, “how’s the market this summer?”
They were shocked when I confidently said, “the average price drop for current active listings on the market is now 8.9%, or $53k. That’s while prices are up year-over-year 11.4%. At the same time, inventory is now falling fast (see below). And it’s now taking 88% longer to sell a home this year compared to 2023.”
They were speechless. Then the lady said, “how were you able to toss out those data points so fast?” “It’s my job”, I told her.
More importantly, they asked me to repeat the data about price drops and how long it’s taking to sell properties. “But the news still says it’s a strong market with rising prices and huge demand.”
Once again, national data and news is irrelevant to any local market. Dive into data in the market you plan to transact and find a realtor who knows their business better than any other out there.
(Main Photo – soon-to-open new Delray Beach restaurant on the corner of Atlantic Ave and A1A directly across the street from the beach. Pura Vida is a Costa Rican phrase meaning “life is good”)
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*** You may recall I lived in Costa Rica for over 13 years and built 13 real estate brokerage offices while there. Well, a friend is selling his 18-year old hotel with strong brand recognition at a significant discounted price. If you know of anyone seeking to move out of the country to live and own their own business abroad, please share this link with them.
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*** South Florida’s Surging Supply Update ***
* This morning’s Inventory is 47,543 *
* Last week supply was 48,468 *
That’s a 925 unit DROP in one week
Since August 1, 2023, supply is up 73%
