Most all potential home buyers are familiar with looking for homes online and scheduling a visit to view interesting properties with their realtor. Once you pick the home that is right for you, your agent will guide you through completing and submitting a purchase contract.

But what happens after the contract is accepted?

The National Association of Realtors (NAR) just published an excellent summary of the activities that happen between signing the contract and closing on your home.

Agents, please share this Consumer Guide with your clients!

https://www.nar.realtor/the-facts/consumer-guide-steps-between-signing-and-closing-on-a-home?grp=residential&narmail=(STO)%20EdgeUp-DataFeedTemplate&date=11-21-2024&user=3294294&itid=11726886

nar.realtor

Consumer Guide: Steps Between Signing and Closing on a Home

Once you sign a purchase agreement on your new home, there are still several steps to complete before you can finalize—or “close”—the transaction.

If you or someone you know is considering the purchase of a home, this is a must read article that identifies 6 key considerations.

A home purchase is likely the most significant investment you will ever make. This is not a time where you will want to act impulsively or emotionally. The development of a detailed plan will be the best protection to ensure your investment is safe and sustainable.

After reading this article if you have any questions or need assistance with developing your plan, please reach out for assistance.

Buying a home? Here are key steps to consider from top-ranked advisors

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Buying a home? Here are some key steps to consider from top-ranked advisors

If you plan to buy a home, you need to take proper steps to prepare for the purchase. Here's how to get there and what to consider, according to experts.

Here is what Realtors need to know:

Changing Business Practices

The settlement agreement also mandates two key changes to the way members and MLS participants do business.

NAR agreed to create a new MLS rule prohibiting offers of compensation on the MLS. This means that offers of compensation could not be communicated via an MLS, but they could continue to be an option consumers could pursue off-MLS through negotiation and consultation with real estate professionals.

NAR also agreed to create a new rule requiring MLS participants working with buyers to enter into written agreements with their buyers before the buyer tours a home.

Real estate agents who use and list properties for sale on a Multiple Listing Service (MLS)—a local marketplace used by real estate professionals (both buyer brokers and listing brokers) to share information about inventory in a particular area—will be required to enter into written agreements with buyers before touring a home. Those written agreements must include:

A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.

Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).

A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and

A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.

NAR has long encouraged its members to use written agreements with buyers because they help consumers understand exactly what services they have agreed to, the roles and responsibilities, and the amount. For this reason, several states already have laws requiring buyer agreements.

There are also changes to how and where real estate professionals may communicate with each other about offers of compensation. These offers are no longer allowed on Multiple Listing Service (MLS) platforms. Sellers can still offer compensation off an MLS. Sellers can offer buyer concessions on an MLS .

Things to know as a home buyer or seller:

If you are a buyer and your agent is using an MLS, you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided, and for how much.

Written agreements are required for both in-person and live virtual home tours.

You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.

Agent compensation for home buyers and sellers continues to be fully negotiable.

When finding an agent to work with, ask questions about their services, compensation and these written agreements.

More details about these changes and what they mean can be found at facts realtor.

• This discussion was modified 5 months, 2 weeks ago by  Sonny.
• This discussion was modified 1 month, 1 week ago by  Sapna Sharma.
• This discussion was modified 1 month, 1 week ago by  Sapna Sharma.

nar.realtor

NAR Settlement: Get the Facts

Whether you’re a REALTOR®, brokerage leader, MLS executive, homebuyer, or home seller, the resources here provide the facts and latest updates on NAR's settlement agreement related to broker commissions.

The recently announced proposed NAR settlement has generated a lot of discussion about the future of realtor commissions and how the real estate industry will be impacted.

One avenue that seems plausible is the a packaged service plan – designed for the DIY home seller that does not wish to engage a full service brokerage. In addition, some brokerages are offering ala carte services that can be selected from the menu that a home seller or buyer can select to ensure they are only paying for services perceived to have value.

I found an excellent article regarding Houzeo (link below) – a service for the DIY home seller. The Houzeo model offers various packages and costs based on the level of service. While Houzeo has been around for several years, some of the recent attention to realtor commissions have increased their visibility.

https://listwithclever.com/real-estate-blog/houzeo-review/#overall

Please check out this article and post your thoughts.

My client would like to get financing for the following scenario:

• Client that owns property outright and is hoping to
  build an apartment building(s) on this property
• Client
  wishes to finance 100% of the buildout
• The
  property is in Texas
• Value
  of Land $250K
• Estimated
  construction cost $600K
• Credit
  score estimated at 700
• What other parameters must be considered? Reserves, LTV, etc.? Could this qualify via DSCR?

• This discussion was modified 10 months ago by  Sonny.
• This discussion was modified 10 months ago by  Sonny.
• This discussion was modified 10 months ago by  Sonny.