Tag: NAR

Here’s What the Recent NAR Changes Mean For You

Posted on by Tracey Henkels

We’ve been hearing that there’s confusion around the recent NAR settlement and what the changes mean for Buyers and Sellers. We’re even hearing that some Realtors are having trouble explaining it to their clients(!) Here’s a summary of how these changes affect those in Oregon:

1. Agent service fees (also known as “commissions”) are negotiable and always have been.
It’s been customary for Sellers to cover a Buyers’ Agent’s service fee at closing, building it into the sales price of a home. This has always been a strategic marketing decision between the Seller and their Agent as it increases the Buyer pool. Most Buyers don’t have the cash to pay for their down payment, closing costs AND their Agent’s service fee. This essentially allows them to finance that fee within their mortgage.

2. Offers of compensation (Seller offering to pay the Buyers’ Agent’s service fee) can no longer be advertised on any Multiple Listing Service (MLS).
These are local marketplaces used by both Buyer and Seller Brokers to share information about properties for sale. Agents can advertise this Seller concession on off-MLS platforms like social, email and websites.

3. A contract is now required to work with a Realtor as a Buyer.
We can’t show you homes until we sign an agreement that we’re working together. It’s now the law. If you don’t enjoy working with us, you can cancel at any time with no fee. Not all Realtors make it that simple, but we do. Worth noting: Sellers are already required to have a contract in place with their agent to list their home for sale.

More questions? Please call, text, email me; I’m happy to discuss further. Keep in mind that every state is different, but I can connect you to someone great and trusted in your area.

This information is a reflection of personal opinions and understandings as of Monday, September 9, 2024.

Will my house sell for more money when I stage it?

Posted on by Julia Robertson

Perceived Value.

A homebuyer determines the value of a home before they even enter your home. The NAR reported 55% of buyers find their home on the internet. First impression is everything. A photo can speak a thousand words… but don’t take my word for it, see for yourself and review the research below. Forbes, the National Association of REALTORS®,  and HGTV agree that staging your home will earn you a positive return.

 

The photos shown here are from actual listings in Oregon & Washington, that I sold, and either personally staged or hired a professional stager. Some of these listings were full of clutter or located in a logistically difficult location.  One listing was on a very busy road with almost no driveway or garage and several unfinished construction projects. Another had little natural light and a slight pet odor. The last home was the most expensive house in the neighborhood, surrounded by homes that did not maintain their yard(or not attractive from the exterior), and did not have a garage. The point is- there may be other factors that make a home more difficult to sell. First impression is everything. If you can WOW potential buyers regarding the interior and exterior, the other factors are minimal in the end. A common rule of thumb for a home on a busy road, is to reduce the price 10%. If there are factors that already reduce the value of your home, wouldn’t you want to make up for it in some way? And if you could add 10%+ value to the true value of your home by re-arranging furniture or staging it- why wouldn’t you?

Forbes reported, “According to the National Association of REALTORS®, for every $100 invested in staging, the potential return is $400 . Compare that to the average sale price, which is a reduction of 10-20% from asking. So an average home with a $400,000 asking price will be reduced by $40,000 to $80,000.”

A great quote right out of an HGTV article, “I see many home sellers confuse staging with decorating and consequently resisting the process and the recommendations of the staging professional. But the reality is that the moment you commit to marketing your home for sale, you need to commit to transforming your home into a place that potential buyers can easily picture as their home.”

Staging is not only about furniture or de-cluttering. Staging a home for sale is a process that starts by preparing a “listing-prep” plan. After I meet with a client and sign a listing contract, we do a walk through together and make this plan. It can include a calendar of timelines to get household projects completed, packing, storing furniture, and touching up paint. As you can see from all of the above “before” photos, lighting makes a HUGE difference. Lighting, furniture placement, and professional photography create the WOW. Once we have all those elements, the perceived value of your home is at its highest and best. When your home is presented at its highest and best value- you sell for the highest price! Actual value depends on your location and condition of home. To find out what your home value is and what staging can do to improve the value of your home- contact me.

If you’re curious what it’ll take to sell your home, call me! I’d love to discuss future real estate opportunities with you. Call, email or text anytime.

Julia Robertson | Broker Licensed in Oregon & Washington

Insta @realestatebyjulia

541-505-1111 | julia@rebyjulia.com

Living Room Realty

Partial Government Shutdown – What it Means for Real Estate

Posted on by Tosha Reinmiller

At midnight on December 21st, 2018, there was a partial government shut down, due to lawmakers failing to pass short-term budget legislation. The National Association of REALTORS® (NAR) has been in consistent communication with congress and it’s leaders who are working with the White House, in order to clearly communicate the importance and critical need to keep these programs running smoothly in communities that depend on them so greatly.

Now the question: How does this change affect real estate businesses and our clients involved in transactions? It can affect it in three different ways…

The first, you could face delays when attempting to attain tax information from the IRS. Should the need arise, transactions could face delays due to offices being shorthanded from employment cuts of non-essential employees.

Secondly, Flood insurance. At midnight December 21, 2018, The National Flood Insurance Policies’s authority to sell or renew flood insurance policies expired. Existing National Flood Insurance Policies will remain in effect until they expire but new ones will remain inaccessible until the shut down is halted.

Finally, FHA programs could face delays due to furlough’s of non-essential employees in their departments as well, which could lead to loan delays. Mortgages backed by secondary mortgage companies Fannie Mae & Freddie Mac will not be affected, nor will the U.S. Department of Veterans Affairs.