If The Story Is Better Than The Truth… Report The Story…
This statement is so true when it comes to the “Talking Heads” media folks on their reports of the recent National Association of Realtors $418M settlement for their “alleged” collusion in real-estate commissions on home sales. While this settlement has not been approved by the judge as of this report, it will most likely be approved soon. The “Talking Heads” are reporting as to how this will change real-estate sales in the near future with the visions of lower commission rates for realtors, which will equate to lower sales prices and the possibilities of potential buyers having to pay their selling agent’s commissions directly which would hurt potential first-time buyers due to bringing more money to the table for closing which in many cases they will simply not have the funds to pay a down payment, closing cost, and a realtor commission and this will hurt overall real estate sales. I don’t know about the rest of the Country, but here in Georgia, due to a strong Georgia Association of Realtors as well as being represented by some of the strongest legal minds… we should not see any noticeable changes due to the fact that the realtors, in Georgia, already negotiate their commissions up front with both buyers and sellers and it is clearly defined in our Georgia Association of Realtors contracts. The bottom line is that our realtors are already doing what many in the US have failed to do, and thus, there is a very large potential settlement and major changes coming to many parts of the country.
While I do not see any real changes for Georgia real estate agents on the horizon, I do see the possibility of commissions going down slightly in the foreseeable future, not due to this lawsuit but due to continued upward trends in Georgia home prices. Keep in mind, the “6%” commission that is on many contracts today that is being “split” between selling and listing agents was 7% not too long ago, and now we see 6% in many cases and even lower in others. I am a firm believer that you need to have an agent represent you when buying or selling real estate. These folks earn their commissions every day. However, with the continued rise in housing prices of close to 40% over the past five years and the basics of buying, selling, and negotiating a contract really has not changed, this may not justify a 40% raise in their overall pay to realtors, I think the “market” will determine what overall total commissions will be paid out in the future. We may see a small drop in commissions paid to realtors… probably slightly like we saw several years ago. I have always been a believer in the saying that you and I are only sometimes right… the market is always right, and the market will determine commissions in the future… especially in GA, where the commissions are already openly negotiated between all parties. If you are waiting on the opportunity to go online and purchase a home with no realtor on Amazon… you are in for a long wait.
As far as sales prices falling due to “reduced” commissions… don’t hold your breath on that one either. Even if our real-estate community does lower commissions, do not look for any significant savings on your future home purchase. We continue to have a shortage of housing inventory in the Metro ATL, which will keep prices moving higher, and then when rates come down later in the year, look for even more buyers to enter the market, which will keep prices moving higher. I am still predicting an overall 5% rise in home prices in the Metro ATL.
Bottomline… get a realtor when buying and or selling a home. They are worth every penny.
Remember… the BEST RATE… IS A LOCKED RATE… with a float down… ask me about our program that allows you to lock your rate and then float down if rates move lower.
Make sure you (or your buyer) get pre-approved before looking at homes so we can determine if you are looking in the correct price range and have you armed to submit an offer with a pre-approval letter!
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Blog post date: Thursday, March 21, 2024
