Important Real Estate News To Know
There are too many things going on in real estate today, so instead of one main idea, I have two to share with you…
*** The 6% Commission Is NOT Gone
Contrary to recent real estate news you’ve seen in mainstream media headlines, they’re leading you astray. Or, they haven’t done a good job explaining the full story.
In my 29 real estate years in real estate, I’ve never seen any document stating commissions are 6%. Never. It’s always been negotiable. Heck, in the last year I’ve been involved in 4%, 4.5% and numerous 5% commission transactions for customers.
But, after the $418 million settlement with the National Association of Realtors (NAR) last month (Big Real Estate News), this topic is front and center. You may have thought, “I’ll wait to buy property when this commission is gone.” Or, “prices will fall without 6% commissions.”
Well, neither of those scenarios are likely to play out. Change will occur, but not to the extreme the media is saying. I mean, do you really think a seller will lower their asking price by 6% just because they want to be nice?
In fairness to you, no one knows exactly how this will play out. Yes, commission rates will go lower. In the business we call it “commission compression.” But consumers still want representation.
What will happen with buyers is what happens with sellers – we’ll negotiate our fees based on the value we’ll deliver. Sounds reasonable, right?
I’ll keep you informed with the most current info as we near the “mid-July” date when changes occur. For homebuyers and realtors, this is huge real estate news that we must know with accuracy.
*** Homeowners Insurance Woes Could Be Ending
Home Insurance costs are up around 20% over the past two years. It’s enormous real estate news – maybe the biggest. Industry analysts predict insurance rates to rise 6% in 2024, according to an estimate from Insurify, a comparison site.
According to Axios:
“The cost of insuring the average home rose to $1,905 in 2023 from $1,272 in 2019 — a 50% increase — according to data cited in a recent note from Bloomberg Intelligence.”
But there may be some light at the end of this dark tunnel. Here are two oieces of real estate news you may have not heard:
1. This insurance company will implement a 2% rate cut this July
2. 8 new insurance companies have been approved to enter Florida
More competition is good news for homeowners – it should help ease rate prices. Although major changes to your premiums won’t be overnight, this could be a moment to savor as we usher is a new trend for our homeowners insurance woes.
My goal is to bring you real estate news that matters to you now, today. If there’s something you want me to research, share it – I’ll get to work immediately.
[Main photo: Delray Harbor Club – Today there are 3 condos available for boat lovers each around $1.1 million]
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*** An Equity Review may be helpful if you’re thinking of selling. It’s like a Competitive Market Analysis, but with more oomph. Call or text me at 561-777-4089 to schedule yours
*** Yes dear home seller, you must complete the Seller’s Disclosure form. That essay will be helpful
*** Are you a car buff? If so the 3rd Annual Delray Beach Concours D’Elegance is this Sunday, April 21st at Old School Square
*** Earth Day is April 22nd! Delray is full of fun and interesting ways for you to learn and participate. If you’d like to join me and clean up our beach, I’ll be here. Send me a text to let me now and we can meet up
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*** Top Real Estate News – Surging Supply ***
* Last week there were 45,103 available…
* This morning’s Inventory is 45,396 *
… supply is UP 293 units in the last week ***
