A big shift in the US Real Estate Market: What You Need to Know

A recent antitrust lawsuit involving the National Association of Realtors (NAR) might significantly change how real estate agents get paid in the US. Traditionally, agents earned a commission on the property sale, which was split between the buyer’s and seller’s agents. The lawsuit claimed this practice was unfair to sellers, who ended up paying for the buyer’s agent services. As a result, the NAR is changing how real estate agents might be compensated, potentially leading to new payment structures like flat fees, hourly rates, or smaller commissions based on client agreements.

The digital age of home buying
It’s easier than ever to buy a home. You can browse potential homes online and complete the entire process digitally, even without a real estate agent. Despite this, many Americans still rely on the expertise of real estate professionals, especially in challenging market conditions like we’ve seen in recent years. Here are a few reasons why we think real estate agents will still be a valuable resource for buyers, even if they have the option to pay for their services differently in the future.

• Navigating a demanding market: The real estate market is tough to figure out on your own. Many buyers struggle to compete with rising home prices, low inventory, and competitive bids. It can take months to find the right property, even if you’re checking house listings daily. Experienced agents can guide you to think outside the box and may have leads on off-market deals like foreclosures or for-sale-by-owner properties.
• Accurate home pricing: For sellers, pricing a home correctly is the hardest part of selling. With the current market’s fluctuations, many sellers rely on real estate agents’ expertise to price their homes accurately. According to the NAR, the percentage of for-sale-by-owner properties is at an all-time low of 7%. This shows that despite real estate apps and tools, most people still value a real estate agent’s expertise.
• Trust in real estate professionals: The NAR reports that the standard commission rate for a residential home sale is 5-6%, averaging around $23,000 based on home prices. Despite this significant fee, 89% of sellers used a real estate agent or broker in the past year, indicating that buyers and sellers still trust experienced real estate professionals.

How We Can Help
As a mortgage financing company, we’ve worked with many real estate agents who’ve helped our clients buy homes. We’ve seen firsthand their market knowledge and expertise and how it benefits our clients. Like trusted real estate agents, our financing services are here to make the home-buying process easier. We guide you through the application process, help you understand what you can afford, and get you pre-qualified for financing. This way, when you start looking at houses with a real estate agent, you can move quickly to submit a bid!