THE FINANCIAL COMMUTE
Hosted by Wealth Advisor Chris Galeski, THE FINANCIAL COMMUTE is a weekly podcast that gives the rundown on what's going on in the current market, how it affects you, and what you can do about it – all designed to fit into your commute. Each week Chris welcomes an expert guest, including Morton Wealth advisors, fund managers, and investment analysts, to break down complex financial topics. Our goal for this podcast is to provide you with the tools to help you navigate this challenging environment, leading to a path of more confident investing.
THE FINANCIAL COMMUTE
How Will Realtor Fee Changes Impact Home Buyers and Sellers?
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On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski and Wealth Advisor Beau Wirick discuss the recent policy changes around realtor commissions due to the National Association of Realtors’ settlement and how they may affect the market.
· Three key changes are highlighted:
- Listing agents are now banned from offering co-fee sharing with the buyer’s agent
- Buyers are now required to pre-negotiate agent fees
- Realtors are now prohibited from insisting sellers offer compensation to cooperating brokers
· Because of the elimination of automatic co-fee sharing between sellers’ and buyers’ agents, buyers would now be responsible for directly compensating their agents. This may lead to higher upfront costs or opting out of agent representation.
· Beau says even though sellers do not have to pay the buyer’s agent, it is unlikely they will lower their home price just because of that.
· Despite potential benefits for sellers in the short term, there is uncertainty about the long-term effects on the real estate market, including the possibility of freezing the housing market further due to increased costs for buyers.