RDFN - Real Estate Stocks Just Got Decimated: What I'm Buying For The Rebound
2024-03-18 14:13:01 ET
Summary
- The National Association of Realtors has reached a $418 million settlement to change the automatic commission to the buyer's agent.
- Home sellers can still choose to sell their homes themselves or negotiate fees with brokers.
- The impact of the settlement on the real estate sector may be overestimated, as the current system is likely to continue and buyer's agents will still be paid.
The National Association of Realtors or "NAR" just announced a $418 million settlement in a deal that is supposed to "spare" home sellers from automatic commission to the buyer's agent. This news seemed to get lots of publicity but in reality, I believe it is much ado about nothing. First of all, home sellers don't have to sell their homes at all, and they certainly don't have to pay anyone to sell them. They can do a for sale by owner or "FSBO". As most people know, this is a penny wise and pound foolish way to market a property. If you do decide to sell your home with a broker, the fees are already negotiable and I don't know anyone who has been paying the 6% fees, which were more common many years ago. These days, most listings offer a 5% total fee and it is typically split in half with the listing agent getting 2.5% and the buyer's agent getting 2.5%....
Real Estate Stocks Just Got Decimated: What I'm Buying For The Rebound