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6% Realtor commissions are slashed! Nope.

No doubt you're hearing about agents "losing thousands of dollars in commissions" or that "commissions are being slashed", because of a class action lawsuit against NAR (National Association of Realtors) called the Sitzer-Burnett case.

6% realtor fees slashed
6% realtor fees slashed-not!

I'll make this short. Nothing has really changed in the basics of real estate.

  • Realtor compensation has ALWAYS been negotiable;

  • Buyers will continue to need real estate representation;

  • Everything in a real estate transaction is negotiable.

Here's an example. A large number of homes for sale in parts of my service area, are due to buyers going straight to the builder without Realtor representation during the pandemic, and making a hasty purchase.

Would you buy a new pool home if the pool cost well over $125,000 as an upgrade, but it faced north and was in shade most of the day? A good buyer's agent could have pointed this out as a potential negative in the resale market.

What if the HOA in a golf course community went from $500 monthly to $1000 monthly, a year later? A good buyer's agent would be able to help you navigate this issue as a future negative to home buyers in the resale market.

Some things will change, however. As a buyer, you should be prepared to sign a buyer's representation agreement with your Realtor, and have proof of funds or a mortgage approval to show your Realtor, before you start looking at homes. Sellers are already requesting this information anyway, before you tour the property.

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