Email What Are The 2 CORE CHANGES That Happened Because Of The Class Action Law Suit Against The National Association Of REALTORS® & Several Of The Largest Brokerages?
As your Greater Indianapolis Real Estate Experts, we'd like to clarify What Is, and What is NOT changing for buyers and sellers effective July 1,2024!
Indiana Law Now Requires Buyer's Agents Agreements
The National Association of REALTORS®, along with many states including Indiana, effective July 1,2024, now require A Wriiten Contract Between A Buyer and a Buyer's Agent
Before agents can show buyers any property, the potential buyer must already be under contract with the agent who is showing the buyers a property.
Along with the Agent's Responsibilities, this contract must include a predictable and fixed amount of compensation that the agent will receive for representing this buyer in the purchase of a property. The amount of this compensation can not change, regardless of any amount paid by the buyer or the seller, without an amendment to the buyer agent agreement that has been signed by both the the buyer and the buyer's agent.
Because Of This Agreement, A Buyer Can Ask The Seller To Pay Their Buyer Agent Commissions As Part Of Any Offer!
The only time a buyer can be shown a property, and not already under be under contract with the showing agent, is when the agent is representing ONLY the sellers, like during an open house.
The amount of any Buyer's Agent Commission, being paid by the seller, will not be visually apparent as part of the MLS known locally as the BLC.
While Seller’s can, and likely will, still offer to pay Buyer’s Agent Compensation for an agent that’s 100% representing ONLY the buyer’s interest, this amount will not be visually apparent as part of the MLS known locally as the BLC. Additionally, any offers of this compensation by Sellers can NOT be made using any MLS related service like through the showing service that’s connected to the MLS/BLC. So, effective July 1, 2024, the Buyer’s Agent will need to determine what amount, if any BAC, the seller has included as part of the List Price so that the Buyer(s) can then determine if they even want to look at the property, or alternatively consider the property with the intent to ask the Seller(s) to pay the BAC as part of any offer.
To address this change as a Listing Agent, ToHelpUmove will now include a “BAC QR code” that will be shown on every for sale sign, and on all marketing literature, that easily directs and connects users to www.ListingsBAC.com where Buyer’s agents can see the BAC that’s included in the list price.
BUYERS PLEASE KEEP IN MIND - IF YOU VISIT AN OPEN HOUSE, OR SCHEDULE A SHOWING THROUGH ZILLOW, REDFIN, OR WITH ANY AGENT INCLUDING THE LISTING AGENT, IF THE AGENT HAS YOU SIGN ANY BUYER'S AGENT AGREEMENT... IT'S LIKELY, AND PROBABLE, THAT MITCH WILL NOT BE ABLE TO HELP YOU & REPRESENT YOU AS YOUR BUYER'S AGENT. SO, PLEASE DON'T SIGN ANYTHING TO SEE A PROPERTY WITHOUT MITCH!!!
9 MYTHS... Being Spread By The Media, Politicians, And Even By Some Agents!
REALTOR® COMMISSIONS HAVE BEING SLASHED
THE OWNER'S COSTS TO SELL WILL BE SIGNIFICANTLY LESS NOW
SELLERS CAN NOT LEGALLY PAY BUYER AGENT COMMISSIONS
SELLERS WOULD PREFER THAT BUYERS REPRESENT THEMSELVES
HOME OWNERSHIP FOR BUYERS WILL BE MORE AFFORDABLE NOW
BUYERS NOW WILL ALWAYS HAVE TO PAY FOR THEIR BUYER'S AGENT
BUYERS ARE REQUIRED TO REPRESENT THEMSELVES
BUYERS CAN'T LEGALLY ASK SELLERS TO PAY AGENT COMMISSIONS
7% & 6% COMMISSONS ARE DEAD (PER AGENT TYPICALLY 3.5% <= 300K, 3% for 300K-600K, 2.48% For < 1 Million, & < 2.09% For 2 Million Or More)
To Better Understand These Changes, And Why These Myths Are False, You Should...
GET THE ANSWERS TO THE FOLLOWINGS QUESTIONS AND MORE!
Are broker’s compensation fees set by lawmakers, by the National Association of REALTORS® (“NAR”), by local Multiple Listing Services (“MLS”) or are fees set by these similar entities in the greater Indy area that are called the Broker’s Listing Cooperative (“BLC”)?
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Are real estate Agent Commissions the same, or do the fees vary between different agents?
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If I List with Mitch, and ToHelpUmove, can I pay Mitch his typical Listing commission and still pay a lesser amount in the Buyer’s Agent Commission?
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I heard about changes due to a class action lawsuit about Sellers paying Buyer Agent commissions! Are real estate commissions decreasing, will home prices decrease, will sellers no longer pay for Buyer Agent commissions? What are all of the Changes?
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Will Seller(s) Continue To Offer To Pay a Buyer’s Agent Commission (“BAC”) For Buyers?
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Is Limited/Dual Agency, where One agent is representing both the buyer and the seller at the same time on the same property, ever encouraged by Mitch?
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Find Out About Recent Market Activity If You Are Considering Buying Or Selling!
Generally Speaking What Goes Into The Value Of A Property
1/3 Is About The Property Itself: The Location, Condition, Updates, Bed & Bath Count, Size, Age & All Features
1/3 Is About Similar Places For Sale A Buyer Could Also Buy, At The Same Time, In The Same & Similar Areas
1/3 Is About What Similar Properties, In The Same Or Similar Areas, Have Sold for In The Last 6-12 Months
Real estate values are not like a ten-dollar bill that is worth $10 regardless of if it’s crisp and brand new, or if it’s twenty years old, dirty and torn. Neither the condition of the bill in your hand, the condition of other ten-dollar bills, nor the location of where you are holding the bill will change its value! If the value of real estate was also this precise and exact, just like the value of a dollar bill, then there would frankly be no need for real estate agents!
When you are thinking about buying or selling accurately evaluating the value of a house, townhouse, or condominium is a complex calculation that leverages years of experience and expertise like Mitch has, as one of the Top REALTOR's in the Greater Indy area! So let's start at the very beginning - with the RIGHT price! And the best way to find the RIGHT price is to ask Mitch.
What Is A Greater Indianapolis Property Worth
For Sellers, Get An Even More Precise Valuation Of Your Greater Indy Property, After You Have Completed The 1st Above... Feel Free To Share Additional Details Here
The 4 Most Common Ways To Determine The Value Of A Property, From The Highest Accuracy (4 stars) To The Least Accurate (1 star)
Comparative Market Analysis (CMA)
This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
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This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
An Appraisal
State-licensed appraisers will walk through a property and write an official appraisal report. While appraisals offer a little protection for buyers regarding the value of a property, the customer for the appraiser is the mortgage lender not the buyers. Banks typically require appraisals when refinancing your home, or getting a mortgage for a new home, to minimize the lender’s risk by making sure the bank is loaning no more than what the property could be resold for if the buyer was unable to repay their mortgage loan.
Instant Online Value Estimators
The Iron Triangle Of Service: Good, Fast, And Cheap -- PICK TWO. You Can Never Have All Three, As The Saying Goes!
Online Value Estimators are Fast and Free... And Free is the ultimate definition of cheap! So, since you can NOT have all three, and these online instant valuations are Fast and Free, then that means these Estimators can NOT also be Good!
There are many real estate and lending websites offering estimators out there. You can use this if you want a general estimate of your home may be worth. While these can help you decide if it’s worth considering selling or refinancing, these sites tend to dramatically undervalue or overvalue property values. So, using these when selling or purchasing a new place could create unrealistically high or unreasonably low expectations that could cost you thousands of dollars as both a seller or a buyer!
Price Per Square Foot Calculations
Price per square foot calculations are often used by sellers, buyers and unfortunately even by many real estate agents to determine the value of a property in comparison to other recent sales. This approach divides the sale or list price by the above ground square feet to arrive at a price per square foot.
If you are comparing to identical floor plans, with identical finishes and features, built at the same time, by the same builder on lots next to each other and both places have continued to have identical updates, then this approach might yield a meaningful value. However, this is rarely the case since price per square foot calculations do not reflect the many differences in properties like, bed and bathroom configurations, land value and location, views, garage spaces, finishes, updates and improvements, the year the place was built or any of the hundreds of differences between homes.
Mitch Refers To This Calculation As Only Pricing Validation, NOT Pricing Valuation!
Once a property CMA has been completed this calculation can be used to determine if a property has been overimproved or is overpriced within the neighborhood, development or area. If the price per square foot, based on a proper CMA, is dramatically higher than similar nearby places then the property is likely overimproved! Additionally if the price per square foot, based on the CMA, is dramatically lower than the price per square foot based on the list price, then the property is likely overpriced.
About Mitch
Mitch leverages his local expertise, combined with his meaningful business and life experiences, and decades of professional leadership and growth in the construction and technology industries to contribute to his success as one of Greater Indy's Top REALTORs.
Mitch is committed to helping change the lives of his clients as they start their next chapter, by making it easier, more enjoyable and more profitable for his clients that design, build, buy, and sell their home, condo, townhouse or investment property!
See Market Activity For Houses, Townhouses & Condominiums By Greater Indy Areas Or Communities
USE THESE RESOURCES & TOOLS TO HELP YOU MAKE THE RIGHT MOVE IN THE GREATER INDY AREA
Buyers
Thinking of buying a greater Indianapolis home, condominium or townhouse... While it's easy to see the asking price, let Mitch show you what the property should sell for based on other comparable places in your favorite greater neighborhood or development.
Sellers
Thinking of listing your greater Indy home, condominium or townhouse... Are you curious to know what your place should sell for along with the selling prices, days on market, and list price to sales price ratios of other places in your neighborhood, development or area?
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