News about the commission lawsuit is everywhere and that means misinformation is running rampant! There’s a proposed settlement that still needs to be approved by the Department of Justice so we won’t know the true impact of the case until it’s finalized.In the settlement there are two changes to the real estate industry going into effect in July 2024:
The National Association of Realtors (NAR) agreed to create a new rule which would remove the Buyer’s Agent’s Commission from being listed on the MLS.
NAR also agreed to create a new rule requiring Real Estate Agents and buyers to sign a Buyers Representation Agreement before the buyer can tour a home.
I’m surprised that the Plaintiffs prevailed in this case because these practices have been in place my entire career! Buyer Representation Agreements have always stated that the buyer’s agent would first look to the listing agent for compensation and if they aren’t offering any, the buyer agreed to pay the commission.
I’ve spoken with colleagues at larger brokerages and the general consensus is that there will be little impact in Texas. Everyone intends on encouraging their sellers to continue to offer commission to buyer’s agents – they’ll simply advertise commission differently. The rationale is that it’s important to garner as much interest in a seller’s property as possible and not disincentivize anyone in order to receive the best contract and the most money.
Another reason I’m surprised is that this outcome really hurts the buyer. Prices are not coming down! Whenever a property drops to a certain price point within a neighborhood it’s often snatched up by an investor. The proposed decoupling of commission will make things even more expensive for buyers who are already struggling to afford homes.
Note: If you’re waiting to buy you may want to accelerate your timeline just in case buyers paying their own agent becomes the norm.
Please contact me if you have any questions or concerns.
We are here to provide the best advice and counsel for your real estate needs.
That will never change, regardless of any lawsuits!
Don’t Fall For Clickbait
Here’s What I Think Is Worth Reading:
Important deadline TODAY! April 1st is the deadline to submit comments on the I10, Voss to I-45, expansion project. You can get more information and submit comments here.
Bill Gates says that Houston will become the Silicon Valley of energy. That will help cement Houston as one of the best cities on the planet and increase the value of our homes. The article shares Gates’ opinion that we will have a positive impact on the future of energy and help with climate change. Damn, Houston is impressive!
If you would like to read more about the commission lawsuit you can find good information here.
And last but not least…
FIG Family Updates
As we mentioned, you’re one of us now. And we love to celebrate all the good news and events that are happening in the lives of the extended FIG Family!Please email info@figtx.com and let us know what’s going on with you!
Happy Birthday – FIG Broker Michael and his son share a birthday in March! They were both happy to celebrate back in the Heights after a major renovation to their home which changed the floorplan from 2 beds/2 baths to 4 beds/3 baths and added a new garage and gorgeous back deck. If you need advice on adding onto your home, please reach out!
Jackie Faccini & Carlos Ospina – FIG helped Jackie and Carlos sell their house in Rosenberg and move to a much larger home in Sugarland, both on the very same day! Since that time, they have added to their family. Welcomed by his parents and siblings, Lulu and Lorenzo, little Luca is already the boss of the house. Congratulations to you all!
