Carolina Living Real Estate - Our Clients Are Our Focus!

There are two types of real estate firms, 96% are agent focused.   Carolina Living Real Estate is 100 percent client focused!

This article is courtesy of Scott Hoyt.  Scott is someone I respect and used to work with!

The other four percent ( I am being liberal here) are consumer focused. The difference is outcomes, one desires great outcomes for agents, the other creates great outcomes for clients. Want to know what an (out of touch) agent focused company says in the wake of serious changes* in todays real estate market? 

 First some context. 

Buyer Agent commissions are being removed from MLS systems and most listing contracts. A sellers willingness to pay a buyers agent to negotiate against them is no longer listed in the MLS? There are many arguments against sellers paying a buyers agent, but for expediency lets get to the quote: 

"We value agents who show our listings and appreciate the offers made to our sellers through buyer agents. We believe buyer agents deserve to be compensated for the value they bring to their clients. We plan to strongly encourage our sellers to provide for that compensation in their listing terms with us." 

Yes, you read that correctly, a large firm sent that love letter to agents and an agent forwarded it to me. I do not entirely disagree; buyers agents should be compensated appropriately for services rendered, by the buyer. 

They said they will work their sellers for buyers agent commission up front, before seeing the terms of an offer, before the showing. Who do they work for? What email did they send to their clients? 

The same clients they have a fiduciary duty to represent. The same clients who entrusted them to do the right thing. They said our clients will give up a percentage of their sales price before you even ask. 

The brokerage said we do not believe buyers are strong enough to pay their own fees. We will take the low road and enable weak buyers agents that can not prove value to their clients. We are not going to focus on building the most irresistible listings possible. 

Think about what the rest of the process, transaction, sale looks like if this is how they solve problems. Worst part this company is not alone this is more than common. I can and probably will go on forever about what home buyers and sellers should do to get a stronger outcome. 

The next 36 months are going to be awesome! 

*Prior to August 17th Multiple List Services across the country are eliminating the buyer agents compensation from listings. In the past this listing was an easy way for agents to boycott listings that did not pay them enough. 

Now that is not possible, buyers must now sign a form recognizing the costs of their agent and responsibility for payment prior to touring any home. A huge paradigm shift is the way real estate commissions are handled.

Winston Salem | Mortgage Rates Tumble

The 30-year mortgage fell to its lowest level since May 2023, which “should begin to pique buyers interest in making a move” 

Key points:
The fixed-rate 30-year mortgage averaged 6.47% this week, while the 15-year rate dipped to 5.63%. 

Mortgage applications for home purchases remained flat, however, although there was a bump in refinance applications. expected to remain low.

Mortgage interest rates dropped to the lowest level in 15 months this week, so the big question now is whether they've fallen enough to get potential homebuyers off the sidelines.

The 30-year fixed-rate mortgage averaged 6.47% this week, according to the latest Freddie Mac survey. That's down from 6.73% a week ago. The 15-year fixed-rate averaged 5.63%, down from last week's 5.99%.

Will buyer activity start to pick up?

According to experts: The decline in mortgage rates does increase prospective homebuyers' purchasing power and should begin to pique their interest in making a move, 

But so far, falling rates haven't resulted in a surge in mortgage purchase applications, according to the Mortgage Bankers Association, although there was a jump in refinance applications. Homebuyers could be waiting for rates to drop further, said Joel Kan, deputy chief economist at the association.

And that could happen in the second half of the year, but it will be a bumpy ride, said Lisa Sturtevant, chief economist for Bright MLS. Since potential homebuyers didn't jump when rates began falling five weeks ago, they may remain patient.

"Buyers are flexing a bit. While it is most certainly not a buyer's market, it has been a long time since buyers have had this much leverage in the market," Sturtevant said.
Inventory continues to climb

Sellers appear to be watching mortgage rates as well. Redfin reported that new listings are up 5.9% year-over-year, the biggest increase in five weeks.
But that rate of growth might not be enough to shift market dynamics, as supply remains low compared to recent years, said Simonsen.

Real estate is all about location — and timing. The drop in mortgage rates might simply be hitting at the wrong moment for some buyers. Schools are starting up in the coming weeks, and families may be reluctant to switch districts.

"The seller's pace is still very restricted," Simonsen said. "Until we see new listings pick up, we should see a cap on inventory growth."

Thinking of selling?   Contact us to discuss your options in this new environment!

Negotiate dollar-amount commissions, Consumer Watchdog Urges

Contact Carolina Living Real Estate to Discuss Your Real Estate Needs and Navigate these new rules!

The Consumer Federation of America has rolled out new guidance and is discouraging the practice of paying agents based on a percentage of a home’s sale price.

 

Key points:

• As the August deadline for rules changes nears, the CFA is telling buyers and sellers to negotiate compensation and avoid paying a percentage-based fee.
• Consumers should research any agent they’re considering working with by reading reviews and asking about their experience.
• The CFA also advises buyers and sellers to thoroughly review any forms they’re asked to sign and watch out for pitfalls.

While brokerages, MLSs and associations prepare agents for how to discuss upcoming industry practice changes with their clients, the Consumer Federation of America is providing its own guidance for homebuyers and sellers in the lead-up to the August 17 deadline for implementing the rule changes.

Agent pay should be a dollar amount, not a percentage

Per the NAR settlement, agents and brokers must explicitly communicate that commissions are negotiable when starting to work with a client. But the CFA is encouraging consumers to not only negotiate the fee, but to push for a dollar amount instead of a percentage of the home sale.

"The basic reason that the industry has been sued by the U.S. Department of Justice and by private citizens is because for a century, Realtors have colluded to set rates which now typically are five or six percent," CFA researchers wrote. 

While NAR and others in the industry have argued that commissions have always been negotiable, the CFA and the DOJ contend that sellers have been expected to pay "customary" commissions.

"The class action settlement, for the first time, effectively allows buyers to negotiate their agent's compensation."

Buyers should research their agent 

The CFA advises consumers that "selecting a competent, honest agent is more important than ever, especially for buyers." The consumer group has previously highlighted issues with buyer agreements, and some state regulators have determined that buyer agreements shouldn't be required to participate in a home tour. 

Specific recommendations from the CFA include researching agent reviews on the leading portal sites such as Zillow, Realtor.com and Homes.com, and asking if the agent is also a broker or associate broker — which typically means they have more training and experience. 

Additionally, the group tells consumers to pay attention to whether or not their agent has all of their forms prepared and ready at the outset.

Consumers shouldn't sign anything they don't understand

State associations and brokerages are releasing a flurry of forms for agents to start using this month in their day-to-day business relationships with buyers and sellers, but the CFA encourages consumers to thoroughly review these forms before committing to compensate anyone. NAR has also released new guidance for consumers emphasizing the importance of understanding any agreement before signing. 

 In addition to paying close attention to the content of a listing or buyer agreement, the CFA discourages consumers from getting into a dual agency situation, something the group says can compromise the fiduciary relationship for both buyers and sellers. 

 Another buyer-beware: The CFA warns consumers against signing an agreement that "combines listing agent and buyer agent compensation, or any seller contract that requires buyer agent compensation," as this type of form and practice would "violate the spirit" of the new NAR settlement rules. 

 

New Listing - Grandview Club Rd.

 3600 Grandview Club Rd.  

For Sale

3600 Grandview Club Rd.  

Under contract in 1 Day!

Mid-Century Modern design with original front door and hardware.  Marble tile foyer, walnut feature wall in living room. 4 bedrooms, 2 fireplaces, 2 full baths with original tiles, and 2 half baths.  entire basement has terrazzo flooring, walk in pantry, loft with original ladder in one bedroom.  attached 2 car garage, fenced in back patio, laundry room. 1 car detached garage and shop with its own driveway and door.  Encapsulated dry crawl space with new sump pump and dehumidifier.  New water heater, very large corner lot with mature trees.  Patio with pavers and string lights.

$425,000   

MLS Practice Changes Coming - Changes by August 17

Winston Salem area, please be aware of changes we Realtors will implement and affect our clients.    This us from the National Association of Realtors!

Ahead of the August 17 implementation of NAR’s practice changes, we wanted to provide a few reminders of actions that are required to obtain a release of liability and protect brokers from claims related to broker commissions:

• We recommend all MLSs implement practice changes by August 17. REALTOR® MLSs (those owned exclusively by one or more REALTOR® Member Boards) must implement the changes by this date to remain in compliance with NAR policy.

  
  

• Offers of compensation are prohibited on MLSs. Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool.

  
  

• Agents working with a buyer must enter into a written agreement before touring a home. Ahead of August 17, NAR encourages all members to address form changes and prepare to educate real estate professionals and consumers about revised forms. NAR policy does not dictate terms of buyer agreements, but NAR has created resources to assist with implementation of the settlement terms—such as tips on clarity and emphasizing consumer choice—including our “Written Buyer Agreements 101” resource, available here.

The practice changes are detailed here, and clarifying information is available in our FAQ on

Summary Of MLS Policy Chages Due to NAR Ruling

Coming very quickly are changes to the way we do business as Real Estate Brokers.   If you are thinking of buying or selling a home or just are researching what is going on, please feel free to reach out to me and we can discuss!

Pursuant to the requirements of the proposed Settlement Agreement, the MLS policies and model MLS governing documents were reviewed and updated with the key changes below.

1. Eliminate and prohibit any requirement of offers of compensation in the MLS between listing brokers or sellers to buyer brokers or other buyer representatives. 

 2. Retain, and define, "cooperation” for MLS Participation. 

3. Eliminate and prohibit MLS Participants, Subscribers, and sellers from making any offers of compensation in the MLS to buyer brokers or other buyer representatives. 

4. Require the MLS to eliminate all broker compensation fields and compensation information in the MLS. 

 5. Require the MLS to not create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for Participants, Subscribers, or sellers to make offers of compensation to buyer brokers or other buyer representatives. 

6. Prohibit the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives. Such use must result with the MLS terminating the Participant’s access to any MLS data and data feeds. 

7. Reinforce that MLS Participants and Subscribers must not, and MLSs must not enable the ability to, filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent. 

 8. Require compensation disclosures to sellers, and prospective sellers and buyers. 

 9. Require MLS Participants working with a buyer to enter into a written agreement with the buyer prior to touring a home. 

These policy changes were approved by the NAR Leadership Team and will be effective on August 17. For additional information go to: https://www.nar.realtor/the-facts

Winston Salem | The Client Comes First, Not the Commission

Carolina Living Real Estate Keeping You Up To Date around Winston Salem

One of the new updates was a clear warning to agents: "If a Realtor does anything to put their own (or another broker's) compensation before her client's interest, they are violating this primary code of ethics and potentially violating the broker's fiduciary duties to their client."

This is particularly problematic if the agent, not the client, is the one making decisions about what homes to see, said Ed Zorn, general counsel at CRMLS, when asked about various steering scenarios last month. 

Compensation must be clearly spelled out in writing

NAR added more detail about what should be included in a buyer agreement, saying that it "must specify and conspicuously disclose the amount or rate of compensation it will receive or how this amount will be determined."

The importance of putting compensation in writing seemed to be a key point in the NAR updates. The organization elaborated that steering shouldn't happen if compensation is spelled out in the written agreement, because an agent is not allowed to accept more than that amount — unless the client agrees to rewrite the contract.

Don't instill a fear of steering in sellers 

NAR seems to be walking a fine line with its latest update when it comes to keeping a client informed.

The organization notes that a listing broker should inform the seller about "the costs the buyer will incur, how the buyer might react to those costs and how the seller can market a house considering the buyer's costs." Presumably, buyer agent compensation is one such cost. 

However, that information shouldn't be presented as a threat: "A listing broker must not tell a seller that a broker will steer buyers based on the amount that broker is compensated," NAR says. In other words, listing agents can't tell their clients that if they don't offer compensation, they may get fewer showings.