I'm sure most have heard at least something about the recent changes in the real estate business. Our government decided that commissions that were negotiated in the listing agreement isn't the best way to go about things and so now the selling agents commission is to be negotiated by the buyer. There is some logic here; however, it can easily be argued that things are less transparent now.
Now all buyers will need to sign a BBA, (buyer broker agreement) and that commission is and has been negotiable. Most sellers I talk to are happy to pay the industry standard 2.5% to the selling agent. The selling agents commission will need to be in the contract as a seller credit to the buyer. We'll see more changes as we work thru this. I assume buyers might be able to finance the commission in their loan in the future. Most first time buyers don't have an extra 2.5% on hand to pay that fee. The buyers might already be looking for a seller credit for their closing costs and depending on the loan they cap how much a seller can credit the buyer.
At the end of the day, it's more paperwork and slight changes in the commission structure. As a broker who mostly handles listings, I can tell you I will no longer be giving any percentages as to what my sellers are willing to pay. That opens the door for a potential lawsuit! I will simply let folks know if my seller is willing to cooperate or not. Like the listing price, commission... oh I'm sorry, compensation is negotiable.
To switch gears, I wanted to touch on the market. Inventory is still low. Houses in Roseville if priced right are selling fast. Pricing a house right in Placer and Sacramento County is essential. If you look at the statistics, houses are selling 99% of asking price. That means that buyers are waiting for a Roseville home for sale to come down where it needs to be before writing an offer. I deal with the seller mentality all the time to price it high and they can negotiate down. It's normal, we all want and think our house is special and worth more than it is. You need a good experience Roseville real estate agent such as myself to give it to you straight. I hope what I tell you is music to your ears, but that's not my goal. I've been going beyond lately and helping people get their house in the best condition for sale. Sometimes its difficult to get reliable help out there. From handymen, painters to trash out guys... I had to step up this week and make a dump run, install a garage door opener, and finish nailing in some baseboards. All in a days work.
I realize that last paragraph has way too much going on with no structure. Word salad, I'm tired... Just got a new listing on the market today. Half Plex in Lincoln, 365 R. St. Great investment, rental. It will cash flow, I was thinking of buying it. I have another listing I'm taking in South land park tomorrow. 1227 Noonan Dr. $525,000. A house in Orangevale coming next weekend 8172 Woodlake Hills Dr. at $550,000. Next week, a commercial property in Roseville at 9450 Atkinson dr. 2 acres zoned M2 priced at $950,000
Chad Phillips
Remax Gold
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