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CNN
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Listing your home in the spring is a no-brainer. But A Big real estate shakeup Complicating the equation.
That shake comes from a $418 million settlement The National Association of Realtors announced last week with groups of home sellers that it will go into effect in July. Settlement eliminates the long-standing fixed 6% commission paid by the seller, which ultimately makes selling your home cheaper after settlement.
But is it worth waiting to list your home and risk selling?
Want to unload boxes from a moving truck in a blizzard or heat wave when it's a pleasant 60-degree day?
This is one of the main reasons for spring A very popular season Buy a house.
For families with children, this is a great time to close because it allows them to stay in the same school.
In the spring, people are more likely to pay off any loans they took out over the holidays, said Bill Crescenzo Jr., Southeast division vice president of Nation One Mortgage Corp.
This solution can put home buyers at a huge disadvantage.
Under the current system, a buyer's agent's commission is baked into the total they pay for a home. That means buyers can pay extra for the entire length of their mortgage.
But after the finalization of the settlement, many have to pay the flat fee in advance to the agents. This can increase the financial burden on home buyers – especially first-time buyers. And that's on top of coming up with all the money they need for a down payment, funeral expenses, an attorney and all the other costs associated with buying a home.
Therefore, buyers may have a greater incentive to close on a home sooner.
There is no guarantee that a federal court will sign off on the settlement. The unknowns associated with it are reason enough not to wait to list your home, Crescenzo said. From conversations he's had with real estate agents, he said he doesn't see any signs of delaying the NAR settlement listing process.
“There's no reason to wait,” says Mike Downer, a broker associate with Coldwell Banker Realty in Naples, Florida. “The seller is not currently required to provide any compensation to the buyer's agent.”
The biggest benefit of waiting to list your home until settlement is complete is that an agent can cut the commission much more than they otherwise would. Plus, you can avoid paying a buyer's agent commission.
This will allow them to pocket thousands of dollars in selling their home.
If selling your home is a business decision, broker Mike Downer of Coldwell Banker Realty in Naples, Florida, said he tries to list it as soon as possible.
“If I'm trying to test the market, there's no need to list it 1711294785,” he added.
But in his view, the NAR should not be a major consideration when settlement time comes.
“An agent who delivers value is always more valuable than an agent who doesn't deliver value,” because they'll help you make more money selling your home, he said.
