🚨 Understanding the Impact of New Real Estate Rules on Sellers 🚨 May cost sellers more July 2024

🚨 Understanding the Impact of New Real Estate Rules on Sellers 🚨

Recent changes in real estate regulations, emphasizing transparency and negotiation of buyer's agent commissions, have stirred the waters for California sellers. Here's a closer look at how these changes might present challenges:

Increased Financial Burden: Sellers may find themselves in a tight spot when buyers, having negotiated their agent's commission, ask sellers to cover this cost through concessions. This can be particularly stressful if the home has been on the market for a while and the seller is eager to close.

Lost Negotiation Leverage: Traditionally, the seller's agent negotiated commission rates with the buyer's agent, often before the buyer entered the picture. Under the new rules, the buyer's agent sets their commission directly with the buyer, potentially leaving sellers out of the loop until late in the negotiation process. This shift can disadvantage sellers, who may feel pressured to accept these terms to avoid losing a potential sale.

Financial Strain in Chain Transactions: Sellers who are concurrently buying another property may find themselves in a precarious position. Faced with the dilemma of potentially losing a buyer or absorbing additional costs, sellers in chain transactions risk both their purchase and sale, compounding financial and logistical pressures.

Market Dynamics: In a buyer's market, where options are plentiful and competition is fierce, sellers might feel compelled to agree to concessions to stand out. This can erode profits and leverage. Conversely, in a seller's market, while sellers might have more room to negotiate, the fundamental shift in how commissions are handled can still introduce unexpected challenges.

Carrying Costs: For sellers whose properties have lingered on the market, the prospect of continued mortgage interest, property taxes, insurance (MIPI), and maintenance costs can make the decision to concede to buyer demands even more pressing.

What Can Sellers Do?

Stay Informed: call Erick Kuvshinikov, Real Estate Broker, at 951-428-4373 or visit www.YourHatHere.com. #realestate #realestatebroker #southerncalifornia #realestateagent #NARlawsuit #homesellers