Real estate has been in the news lately- a lot! From an industry point of view, there has been a fair amount of misinformation shared with the public. There are 5 major changes that have been proposed to how the real estate industry and brokers operate; major points are related to who pays and how much compensation is paid for broker services and how that is communicated
with our clients. I am proud to say that our local and independent multiple
listing service and Washington State have been so progressive, that 4 of the 5
points have already been adopted and are in practice here in Washington.
In alignment with one of my primary core values (Every person deserves honesty) I want provide clarity about the many inaccurate and heavily biased takes in the news currently by presenting some Myths and Facts about my industry. I will continue this thread over the next few months. Or it would be waaayy toooo looong!
Myth:
Real estate values will lower substantially and become more
affordable due to the settlement.
Fact:
While it is yet to be determined how real estate compensation
may affected by the settlement, it is market conditions and the economy that
dictate property values, not broker fees. While commissions are often an
expense within the sales price of a property, they do not impact how much
buyers in the market are willing to pay for a property, which is impacted by supply
and demand and ultimately determines the sales price.
Myth:
The settlement is good news for buyers because they can avoid
working with an broker and save money.
Fact:
While some buyers may be hopeful that they will
be able to buy a house/condo for less money by eliminating the cost of a buyer’s
broker, navigating real estate transactions without a broker can be
challenging, and could even cost the buyer additional money.
