If you’ve been planning on selling your house, or are currently in the middle of doing so, you’ve probably heard that there will be some changes in how your home can be listed and marketed, with regard to a commission being offered (or not) to buyers’ agents.

While some listing agents may already be implementing the changes ahead of time, as of August 17, 2024, your agent cannot include an offer to compensate buyers’ agents on a Multiple Listing Service (MLS), which is a local marketplace used by both buyer brokers and listing brokers to share information about properties for sale.

Some sellers may misinterpret this as saying that they’re no longer allowed to offer compensation to buyers’ agents at all, but a recent article from the National Association of REALTORS® clarifies that you certainly can offer compensation to buyer brokers, “as a way of marketing your home or making your listing more attractive to buyers,” as long as the following is done:

• Your agent needs to conspicuously disclose any offer of compensation that will be made to a buyers’ agent, and get your approval to do so.
• The disclosure needs to specify the amount or rate of the payment being offered, and do so before it is offered.
• As stated above, the offer of compensation can’t be included in your listing on the Multiple Listing Service, however, your listing can be advertised on platforms such as social media, flyers and websites.

That said, sellers aren’t obligated to offer any compensation to buyers’ agents, and some sellers may decide against offering to pay a commission to a buyers’ agent.

While that may sound appealing, and like a way to save or make more money on the sale of your home, there are some things you might want to keep in mind before taking that approach.

It Could Cost You More Time and Money Than It Saves You

On the other side of the equation, buyers will now be required to sign an agreement with any agent who is showing them even a single house. Their agreements will include an amount of compensation the buyer agrees their agent is entitled to earn, and, technically, the buyer is agreeing to pay that amount if the seller of the house they want to buy isn’t willing to pay it.

But before you opt to let the buyer be responsible for paying their agents commission out of their own pocket, here are 2 reasons you should consider offering to pay a commission to buyers’ agents:

• It could impact how many buyers make offers on your house. One of the best ways to ensure you get the highest price for your house, and sell it as quickly as possible, is to make sure every buyer in the market for a home like yours comes to see it and wants to make an offer. If you’re not offering to pay a commission to a buyers’ agent, that may eliminate some of your potential buyers who are only focused on listings that will cover the commission of their buyers agent.

  If you’re competing with other houses for sale in your area, buyers could choose to buy a house that the seller is offering to pay the commission because it makes more financial sense for them, rather than paying their agent directly out of pocket.

• It could lead to a longer time on the market, which often impacts the final sales price. Sellers have become used to houses selling extremely quickly over the past few years, due to a lack of inventory, but that’s not always the case. And whether it’s right, wrong, or somewhere in between, the amount of time a house sits on the market impacts how buyers think and feel about the value of a property. The longer a house sits on the market, the more buyers think something must be wrong with it, and the less they think it’s worth.

  In the past, the usual reasons a house sat on the market for a long time were due to a seller pricing it way too high, or not making it easy for buyers to come see. But if a seller isn’t offering a commission to buyers’ agents, it could increase the days on market if it eliminates the number of interested buyers, which could lead to a lower sales price. So, any attempt at saving money by avoiding a commission could end up costing more than it saved.

The Takeaway:

Starting August 17, 2024, your listing agent can’t include an offer to compensate buyers’ agents on the Multiple Listing Service (MLS), but you can still offer compensation as long as it’s disclosed and approved by you. While not offering to pay buyers’ agents might seem like an appealing way to save money, it could actually cost you in the long run by reducing the number of offers and potentially lowering your final sales price. Offering compensation can make your listing more attractive and help sell your house faster, and for the highest price possible.

Original Post Here

As a home seller, you have a wide range of choices when it comes to listing your home. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate this complex process and make the choices that work best for you. NAR’s recent settlement has led to several changes related to broker commissions that benefit sellers, and we wanted to clearly lay them out for you.

Here is what the settlement means for home sellers:

• You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.
• Your agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker will make to another broker acting for buyers.
• This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment.
• If you choose to approve an offer of compensation, there are changes to how this can happen.
• You as the seller can still make an offer compensation, but your agent cannot include it on a Multiple Listing Service (MLS)—MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
• Your agent can advertise your listing via off-MLS platforms such as social media, flyers and websites.
• You as the seller can still offer buyer concessions on an MLS (for example, concessions for buyer closing costs).

These settlement practice changes will go into effect August 17.

Here is what the settlement doesn’t change:

• Agents who are REALTORS® are here to help you navigate the process of selling your home and are ethically obligated to work in your best interest.
• Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and discuss what you would like to offer buyers.
• You have choices. Work with your agent to understand the full range of these choices when selling your home, which will help you make the best possible decision for your needs.

Originally posted by NAR

Deciding to sell your home is a big deal. It requires a ton of careful planning, and having the answers to some hard-hitting questions like, how much should I sell my home for? Should I renovate before selling? Which Realtor is the right fit for me? And when is the best time to sell my home?

Timing plays a big part in ultimately determining the success of your sale and the amount of profit you can potentially make. But it can all be so overwhelming, so we created this guide to help inform future sellers on what factors influence home sales and when to sell your home for the best profit, including seasonal trends, market conditions, local market dynamics, and personal circumstances.

Here are factors to consider when selling a house:

Seasonal Trends

Seasonal trends can have a significant impact on the housing market and the success of your home sale. Let’s take a closer look at the benefits and drawbacks of selling during each season.

Spring

Spring is often considered the best time to sell a home. Benefits of selling in spring include:

• Increased buyer demand due to pleasant weather and longer daylight hours
• More active buyers looking to purchase before the start of the new school year
• Better curb appeal with blooming flowers and lush landscaping
• However, there are also some drawbacks to selling in spring, such as increased competition from other sellers and potential bidding wars.

Summer

Selling in summer has its advantages and challenges. Some of the perks include:

• Longer days for showings and open houses
• Families with children may be more motivated to buy before the new school year begins
• Outdoor spaces can be showcased in their full potential
• Challenges of selling in summer include: potential buyer fatigue, increased competition, and buyers being distracted by summer vacations and activities.

Fall

Fall can be a good time to sell, with some benefits and things to consider:

• Less competition from other sellers compared to spring and summer
• Buyers may be more motivated to close before the holiday season and winter months
• Cooler weather and autumn colors can create a cozy and inviting atmosphere
• However, it’s important to consider that buyer demand may decrease as the weather cools and the holiday season approaches.

Winter

While winter is often considered the slowest season for home sales, there are still some pros and cons to consider:

• Buyers active during winter months may be more serious and motivated to purchase
• Less competition from other sellers
• Holiday decorations can create a warm and inviting ambiance
• Cons include reduced curb appeal due to weather conditions, fewer daylight hours for showings, and potential weather-related delays in the selling process.

The Impact of Holidays

The holiday season can impact buyer activity and the overall real estate market. Some buyers may be distracted by holiday events and travel, while others may be motivated to close before the end of the year for tax purposes.

Market Conditions

Market conditions play a significant role in determining the best time to sell your home. Understanding the difference between a buyer’s market and a seller’s market, as well as key economic indicators, can help you make an informed decision. It’s helpful to speak with a seasoned real estate professional to understand this fully before making a decision.

Buyer’s Market vs. Seller’s Market

In a buyer’s market, there are more homes available than there are buyers, giving buyers more negotiating power and potentially leading to lower sale prices. In contrast, a seller’s market occurs when there are more buyers than available homes, resulting in increased competition, higher prices, and potential bidding wars.

Economic Indicators

Several economic indicators can have a direct impact on the housing market and influence the best time to sell:

• Interest Rates: Lower interest rates can make mortgages more affordable and attract more buyers to the market.
• Employment Rates: High employment rates generally indicate a stable economy and can lead to increased buyer confidence and demand.
• Economic Growth: A growing economy often correlates with a strong housing market, as more people have the financial means to purchase homes.

Local Market Dynamics

While national trends provide a broad overview of the housing market, it’s important to not forget to consider local market conditions when deciding when to sell your home.

National vs. Local Trends

National trends may not always reflect the reality of your local market. Research local market conditions, including home prices, inventory levels, and days on market, to gain a better understanding of your specific area to make the best decision for you.

Regional Differences

Different regions of the country may experience varying seasonal trends and market conditions. For example, warmer regions may have a more active housing market during winter months compared to colder regions.

Urban vs. Suburban/Rural Areas

Market dynamics can also differ between urban, suburban, and rural areas. Urban areas may experience higher demand and faster sales due to their proximity to amenities and job centers, while suburban and rural areas may have more stable prices and slower market activity.

The Best Months to Sell

National Averages

According to national data from Zillow, the best months to sell a home in the United States are typically May, June, and July. Homes sold during these months tend to sell faster and for higher prices compared to other months.

Regional Variations

However, the best months to sell can vary depending on your specific region. For example, in regions with milder winters, such as the South or Southwest, the best months to sell may extend from spring through early fall.

Month-by-Month Breakdown

Here’s a general overview of what you can expect when selling your home throughout the year:

• January to February: Slower market activity, but buyers may be more motivated.
• March to April: Market activity begins to pick up as spring approaches.
• May to June: Peak selling season, with higher prices and faster sales.
• July to August: Market activity remains strong, but may slow slightly due to summer vacations.
• September to October: Market activity begins to cool, but serious buyers remain active.
• November to December: Slowest months for home sales, but holiday buyers may be motivated.

Personal Circumstances

While market conditions and seasonal trends are important, your personal circumstances will definitely play a role in determining when to sell your home. If you’re faced with a situation where you have to sell, consult with a local real estate agent and have them create a plan best suited to your needs.

Timing Based on Needs

Consider your reasons for selling, such as a job relocation, family changes, or financial goals. If you have a specific timeline or need to sell quickly, you may need to adjust your strategy accordingly.

Financial Considerations

Take inventory of your financial situation and determine if selling aligns with your long-term financial goals. Consider factors such as your current equity, potential capital gains taxes, and the cost of purchasing a new home.

Maximizing Your Sale

Home Preparation

To maximize your sale price and attract the greatest number of buyers, it’s essential to prepare your home before listing it on the market. Here are some of the basic areas to consider:

• Curb Appeal: Enhance your home’s exterior with well-maintained landscaping, fresh paint, and inviting outdoor spaces.
• Necessary Repairs and Upgrades: Address any outstanding repairs and consider upgrades that can increase your home’s value and appeal.
• Staging Tips: Use professional staging techniques to highlight your home’s best features and create a welcoming atmosphere for potential buyers.

Pricing Strategy

Setting the right price for your home is going to be key in attracting buyers and maximizing your profit. Work with a local real estate agent to determine a competitive price based on current market conditions, comparable homes, and your property’s unique features.

Marketing Strategies

Effective marketing can help your home stand out and attract more potential buyers.

• Online Listings: Ensure your home is listed on popular real estate websites and utilizes high-quality photos and virtual tours. Remember, looks matter, and photos sell.
• Open Houses: Host open houses to allow buyers to experience your home in person and generate buzz about your listing.
• Real Estate Agents: Partner with a knowledgeable real estate agent who can leverage their expertise and network to market your home in the best way possible.

In the end, determining the best time to sell your home for maximum profit involves a combination of seasonal trends, market conditions, local market dynamics, and personal circumstances. By understanding these factors and having an effective home preparation plan in place, along with proper pricing and marketing strategies, you can increase your chances of a successful sale and optimize your profit potential.

Final Tips and Recommendations for Sellers:

1. Research your local market thoroughly and stay informed about current trends and conditions.
2. Work with a trusted real estate agent who can provide guidance and support throughout the selling process.
3. Be flexible and adaptable in your approach, as market conditions can change quickly.
4. Focus on creating a positive first impression with excellent curb appeal and a well-staged interior.
5. Price your home competitively based on current market data and your home’s unique features.
6. Utilize a variety of marketing strategies to reach a wide range of potential buyers.
7. Be prepared to negotiate and make strategic decisions based on buyer feedback and market activity.

By following these tips and recommendations, you can navigate the selling process with confidence and maximize your chances of achieving the best possible profit when selling your home. Good luck!

To read the original article, visit the Revive Blog