Here’s why.

Less Competition, More Opportunity

From spring to fall, the real estate market is swamped with buyers. Between job relocations and getting kids settled into new schools, the pressure on the market is intense. Prices go up, inventory drops, and the entire process can feel like a sprint. But as the holidays approach, that rush begins to slow. With fewer buyers in the market, you have less competition, which means more opportunity for you.

Many sellers who are still on the market now are people who missed out on selling in the busy season. They’ve held out through the fall and now—whether they want to move for a new job or get into their own new home by the holidays—they’re ready to make a deal. This could mean price reductions, more negotiating power, and a chance for you to snag a great home at a lower price.

Sellers Are Motivated—And So Are You

Here’s where it gets even better: Sellers at this time of year are often highly motivated. They don’t want their home to sit on the market any longer, and they’re likely to sweeten the deal. Some may offer to pay your closing costs or even cover your buyer’s agent fees—a bigger consideration after the recent legal changes in real estate commission laws.

For you as a buyer, this means you can potentially save thousands of dollars just by being smart and acting during the holidays. Instead of waiting for spring when everyone else jumps back into the market, you can take advantage of this quiet period and land your dream home.

The Joy of Homeownership for the Holidays

Let’s talk about something even more powerful—the joy of owning your own home. What better way to celebrate the holiday season than by gifting yourself the security, stability, and pride that comes with homeownership? Whether you’re buying on your own, as a couple, or with family, purchasing a home is one of the most fulfilling accomplishments. It’s a symbol of progress, success, and the next chapter in your life.

And guess what? Even if you don’t close and move in before December 25 (or whatever holiday you celebrate), it doesn’t matter. The process can take 30-60 days, but starting now ensures you kick off the new year with a massive win. Imagine beginning 2025 in a home that’s all yours—a fresh start, just in time for new beginnings.

Timing Is Everything

Remember, while the process of finding the right home and closing on it can take time, now is when you want to get started. Start your search, tour those listings, and negotiate while the market is quieter. You’ll have more breathing room and more negotiating power to make a great deal. Plus, by acting now, you’ll ensure you’re either moving in for the holidays or ringing in the new year in your brand-new home.

So, should you buy a home for the holidays? Absolutely. It’s a time of joy, reflection, and progress—and there’s no better way to invest in yourself and your future than by owning your own place. Don’t wait for the rush of spring. Give yourself the gift of homeownership this holiday season.

The post Should I Buy a Home for the Holidays? appeared first on ICONNCT.

The Shift in Commission Structure

For nearly a century, it has been a common practice for home sellers to pay both their own and the buyer’s agent’s commission. This model ensured that buyers had representation without an upfront cost. However, starting August 17, 2024, this practice will be abolished due to new federal and state mandates​ (Deeds.com)​​ (www.nar.realtor)​. Sellers will no longer be required to offer commissions to buyer’s agents through MLS listings, making it illegal for agents to show homes without a buyer representation agreement in place​ (The Real Deal)​.

Impact on Homebuyers and Agents

These changes mean that homebuyers will now need to secure their own representation agreements before viewing properties. This could lead to delays and added expenses for buyers, who must now pay for their agent’s services upfront or sign a contract in advance​ (RealEstateNews.com)​. Without proper representation, buyers might inadvertently overpay for properties by dealing directly with the seller’s agent, whose primary obligation is to the seller.

Real estate agents, particularly those who have traditionally focused on showing homes, are also significantly affected. The loss of guaranteed commissions means that many agents may leave the industry, reducing the availability of experienced professionals to assist buyers and sellers alike​ (Deeds.com)​.

Adapting to the New Reality

The need for knowledgeable and reliable buyer’s agents is now more crucial than ever. At Kind-1 Technology, Inc and iCONNCT , we understand these challenges and have developed tools to help both buyers and agents navigate this new landscape. Our app, iCONNCT , is designed to facilitate these connections and ensure that buyers can find reputable agents quickly and efficiently.

What You Can Do

1. Educate Yourself: Stay informed about the changes and how they impact your buying or selling process. Understanding the new requirements will help you make better decisions.
2. Secure Representation Early: If you’re planning to buy a home, start looking for a buyer’s agent now. Establishing a relationship early ensures that you have representation ready when you need it.
3. Use Technology to Your Advantage: Platforms like iCONNCT can help you find and connect with agents who are well-versed in the new laws and ready to provide the support you need.

Conclusion

The changes brought by the Sitzer/Burnett commission laws represent a significant shift in the real estate industry. While these new rules aim to increase transparency and fairness, they also introduce complexities that buyers and sellers must navigate carefully. By staying informed and utilizing the right tools, you can successfully manage these changes and make informed decisions in your real estate transactions.

For more detailed information about the Sitzer/Burnett case and its implications, you can read articles from Deeds.com, Real Estate Investor Pulse, and NAR’s official updates​ (Deeds.com)​​ (Investor Pulse)​​ (The Real Deal)​​ (www.nar.realtor)​​ (RealEstateNews.com)​.

Legal Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. The information contained herein is subject to change and may not reflect the most current legal developments. You should consult with a legal professional for advice regarding your individual situation. Kind-1 Technology, Inc and iCONNCT  assume no responsibility for any errors or omissions in the content of this blog.

iCONNCT 

The post Navigating the New Real Estate Commission Laws: What Homebuyers and Sellers Need to Know appeared first on ICONNCT.

Who is on YOUR side when you buy a home?

iCONNCT

Let’s return to the idea of fiduciary duty. Here is what “fiduciary duty” means:

In California, the agent who represents the seller has 6 fiduciary responsibilities to the SELLER – “obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care”.

The Listing agent (the name on the sign) has to disclose any conflict of interest (like trying to get the best price for the seller while representing the buyer at the same time), and the listing agent is responsible to negotiate in good faith. Listing agents only get paid if their SELLER is happy with the deal they bring to the SELLER. That doesn’t sound like the best deal for the buyer – does it?

Buyer’s agents have represented buyers for many years and their commission is fully disclosed to both buyer and seller. The commission has traditionally been paid by the seller. The seller absolutely has the right to pay that commission on behalf of the buyer although in the future that responsibility cannot be forced on the seller by the real estate community. It is possible in coming years that some or all of the buyer’s agent commission will be paid by the buyer which could dramatically affect the affordability of homes for many first-time buyers.

Home buyers need all the help they can get. Here are some important considerations for the home buyer:

1: Are the Seller disclosures about the property complete? These disclosures cover everything from changes made to the home, substances used in the home, the condition of every aspect of the home, the pets that have been in the home, whether someone has passed in the home, the position of the home related to future development or military installations, structural repairs made or needed, and a multitude of other factors. The Buyer’s agent is responsible to represent the buyer and make sure that the buyer makes a purchase with eyes wide open.

2: Does the buyer have the opportunity to look at any and all properties or will they be restricted to view only the property offered by the Seller’s Agent? Every buyer has a right to look at every property – the Seller’s Agent is paid by the seller to sell THAT home – buyers need a buyer’s agent to help them buy ANY home that they would like to offer on.

3: Is the buyer obligated to use the lender recommended by the Seller’s Agent who represents the Seller’s interests? Surely the buyer should have the right to choose their lender. Surely the home buyer should be HELPED to contact multiple lenders so that they are aware of all the options that are best for them not just for the seller. After all, the buyer will make the payment, not the seller.

4: Should the buyer be forced to pay the Agent representing the Seller? Well that’s a resounding “NO”. If the buyer cannot afford to pay a Buyer’s Agent then potentially they could be forced to be represented by the Agent representing Seller. This is not the case now and should never be in the future. The buyer must never be underserved for the benefit of the seller or the Seller’s Representative.

We believe in equal opportunity for ALL.

We recommend that every buyer has a frank and honest discussion with their agent as to who pays which agent and what that agent will do for THEM AS THE BUYER.

Ask your agent what they will do for you – here are some suggestions.

1: How available is the Buyer’s Agent?

2: Do you charge me fees up front or just when I buy a home and close escrow?

3: Who will pay the Buyer’s Agent commission?

4: What days do you work, what hours do you work, are you part-time or full-time? (Make sure the work ethic of the agent matches your needs as a buyer).

5: Do you work for buyers or sellers or both?

6: How many buyers have you or your team represented in the last 6 months?

7: Do you have a relationship with the seller of the home I want to buy? Are you working for them or me?

8: How many homes will you show me?

9: How often will you show me homes?

10: What lenders do you work with and why? Who should I call to discuss financing options? Are those lenders recommended by you or the seller?

11: What duties will you fulfill for me during the buying process – like setting up Inspections, explaining paperwork, resolving disputes with the seller, and protecting my interests.

iCONNCT will help hundreds of buyers get home every year. We look forward to representing your best interests as a buyer, and we appreciate the opportunity to be of service.

Sign up HERE to begin your journey in finding the RightAgent™ RightNow™.

The post Who is on YOUR side when you buy a home? appeared first on ICONNCT.