How Realtors should respond to the NAR Settlement.

December 05,2024 | Posted By Flavia Brown in Real Estate

This blog post explains how realtors should perform their duties as they comply with the new NAR settlement commission rules, and expresses my appreciation to the NAR and DOJ for improving real estate industry services.

Thank you National Association of Realtors and the Department of Justice for making real estate buying and selling more transparent and giving me the opportunity to improve my services, including marketing and selling. Buyers and sellers deserve high-quality service from realtors who will help them legally and ethically make as much money as possible and skillfully guide them through the buying or selling process. Personally, I am eagerly adopting the new rules by providing additional extraordinary service. Following are my services to buyers and sellers:

To buyers:

+ I will get sellers to pay my commission (buyer's broker fee). After all, this is nothing new; it has been done this way for the past 150 years. The only difference is now sellers are no longer required to pay the buyer broker's commission. However, what if a seller refuses to pay the buyer broker's commission (BBC) after being asked via a purchase agreement?

Answer: Assuming that the comps support this strategy, the buyer presents an offer less than the asking price and pays the BBC. If the offer is accepted it will likely be a win-win: The buyer buys the property at a lower price and the seller doesn’t have to pay the BBC.

+ I will find or create the best deals possible for a replacement home, and I will drive down the asking price to where the purchase will be a money-making good deal. When escrow closes my buyers will have instant equity. However, there is one exception: multiple offers. Nevertheless, I know how to deal with them in the best interest of my buyers.

+ This is huge. When presenting offers, my buyers won’t need any upfront money or financial documents. That is, no earnest money deposit (EMD) and no proof of funds will be required until after the offer is accepted and ratified. (This is huge because buyers won’t have to splash their financial info all over town, especially if they make offers on more than one property). There is one exception, which is a requirement to provide proof of funds or a lender’s pre-approval letter before previewing most properties. (For many celebrities and ultra-affluent buyers, celebritynetworth.com will suffice).

+ I will be sure no mistakes are made when selecting the property and location.

+ I will explain every step in a real estate transaction for buyers and sellers, and every paragraph in the new 17-page purchase agreement (contract). This will avoid surprises. I will also provide a filled-in sample of the purchase agreement and a brief written explanation of every paragraph.

+ I often give my buyers a generous legal tax-free rebate. However, the amount will depend on the price of the home and the commission rate. (Real estate buyer rebates don’t violate California Business & Professional Code §10137).

+ I know the mortgage brokers who provide purchase loans with much lower rates than the average 30-year fixed rate, and with downpayment and closing costs assistance.

+ I often get sellers to pay part or all of my buyer’s closing costs. (Approx. .8% of the purchase price).

+ During my 18 years as a realtor I never had a complaint and my DRE record is spotless.

+ I have a balanced record of buyer and seller closed escrows that allows me to negotiate effectively from both sides of the table.

+ I run smooth and problem-free transactions 98% of the time, thanks mostly to my exceptional transaction coordinator and my business partner/husband with 28 years in the real estate industry.

+ I protect my client’s confidentiality; it’s part of my fiduciary duty.

+ If buyers prefer, I will conduct a simultaneous close of escrow (closing on the sold and replacement homes at the same time). However, most sellers prefer to rent back their sold home for a month or more.

+ Good news to buyers: "As-is" for sale properties often turn out to be money-making deals because the asking prices can be negotiated down substantially. Also, a Microsoft news article on the internet today has this title: 86% of U.S. consumers think now is a bad time to buy a home. This is great news for savvy buyers because many prospective buyers will sit on the sidelines hoping interest rates and prices will decline. Smart buyers will take advantage of less competition. Warren Buffett's real estate advice: Buy when others aren't buying.

My service to sellers:

+ My primary service is to get homes sold at the highest price the market will bear.

+ My strong and effective marketing campaign attracts thousands of prospective buyers, and more than 35,000 L.A. County real estate agents and brokers. A marketing campaign should include entering listings on more than 800 real estate portals and websites, including all major social media sites. My marketing program includes much more: drone photography, open houses, professional flyers, blast emails, and other ways to attract buyers and agents. My fiduciary duties include getting the highest sold price possible in a legal and ethical manner.

+ I write a compelling and convincing MLS property description with 75 professional photos. This is very important because the MLS is where agents and most buyers begin searching for a home. Buyers also search the internet, but the info is borrowed from the MLS. I emphasize in the MLS description section the desirable location as well as the home. Actually, agents should write two separate paragraphs – one for the home’s description and one for the location. Many buyers are from other cities, states, or countries, so they may not know (for example) the house is in a prime location with breathtaking views of the ocean, a short ride to LAX, SoFi Stadium, Intuit Dome, and close to many more attractions.

+ I conduct smooth and problem-free transactions.

+ I analyze offers and counteroffers in the best interest of my sellers.

+ I don’t wait for other agents to bring buyers. At the same time I do my own buyer searching. I subscribe to the Los Angeles Business Journal database of businesses and CEOs, AtoZ database, contactanycelebrity.com database, and RocketReach to contact qualified potential buyers.

+ I explain every paragraph in the new 17-page purchase agreement (contract). Also, I give a filled-in sample copy of the purchase agreement and a brief written explanation of every paragraph for easy reading. I make sure my clients know what's going on and there won't be any surprises.

+ I explain every step in a real estate transaction for buyers and sellers (both should know each other's steps). I provide the steps in writing for reference and to avoid any surprises.

+ During my 18 years as a full-time realtor I never had a complaint and my DRE record is spotless.

+ I have a balanced record of closed buyer and seller escrows, that allows me to effectively negotiate on both sides of the table.

+ If the seller prefers, I will conduct a simultaneous close of escrow (closing on the sold and replacement homes at the same time). Usually, the first choice is a seller's rentback for a month or more. An option is a hard money loan during the transition period.

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