Homebuyers #1 Problem in Today's Market

The number one problem home buyers are facing is navigating the changing landscape of real estate commissions due to the new NAR (National Association of Realtors) rules, particularly the shift in how buyer’s agents are compensated. Historically, listing agents shared a portion of their commission with the buyer’s agent, but now buyers may be expected to negotiate or pay their agent's commission directly. This adds an extra financial burden and complexity for buyers. The best solution when choosing the Kim and Dave Luxury Team is their unique ability to craft offers that negotiate fees seamlessly into the deal. Kim and Dave excel in structuring creative offers that may roll agent fees into the overall purchase price or get sellers to contribute, making the process more affordable for buyers. Their deep market knowledge, innovative thinking, and empathy ensure buyers feel supported throughout the process, eliminating much of the stress caused by the new compensation structures. We have you covered in 10 easy steps! Connect with Kim and Dave Work together as a team to come up with your unique strategy to find that perfect home Review the Menu of Services and choose the level you need. Agree on a Fee Structure Sign a Buyer Agreement Get you Pre-approved or gather proof of funds Coordinate your top homes to tour Once you find your perfect home Work together as a team to craft the perfect offer that the seller WILL accept Go undercontract and move to closing so you can get your keys to your new home. By partnering with the Kim and Dave Luxury Team, buyers can navigate these new challenges with confidence, knowing they have experts who prioritize their needs, making homeownership achievable even with the new rules. Connect with Kim and Dave today: www.ConnectWithKimandDave.com  

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A Realtors Duty to their Clients & Customers

    CONSUMER GUIDE: REALTORS’® DUTY TO PUT CLIENT INTERESTS ABOVE THEIR OWN A REALTOR® is a special kind of real estate agent: one who follows NAR’s strict Code of Ethics, including the first and primary pledge to protect and promote the interests of their clients. This obligation means that a REALTOR® cannot make decisions or provide representation in a way that puts their own interests or commissions ahead of their clients’ interests.     What does it mean for a REALTOR® to act in a BUYER’s best interest? A REALTOR® has an ethical duty to tell a buyer about every home available for sale that meets their criteria. That means that REALTORS® will let you know about all available homes, regardless of whether the seller or listing broker is offering compensation to your buyer’s agent, and even if compensation offered by a seller or listing broker is less than what you agreed to pay your agent in your written buyer agreement.    What does it mean for a REALTOR® to act in a SELLER’s best interest? A REALTOR® should explain to their seller the benefits and costs of the various types of marketing that can be done for a listing, and how potential buyers might respond to such marketing. A REALTOR® is ethically prohibited from telling a seller that their home will be hidden from buyers unless the seller pays a particular type or amount of compensation.      What is wrongful “steering”? The REALTOR® Code of Ethics prohibits “steering” buyers toward homes because the REALTOR® will be paid more, or away from homes because the REALTOR® will be paid less. Similarly, the REALTOR® Code of Ethics prohibits a REALTOR® from telling a seller that buyers will be “steered” toward homes because the REALTOR® will be paid more, or away from homes because the REALTOR® will be paid less.    How do written agreements protect me from steering? As of August 17, 2024, you will be asked to sign a written buyer agreement before touring a home with the professional you want to work with. NAR’s ethical rules have long encouraged REALTORS® to enter into written agreements with their clients because these agreements promote clarity and transparency. They also help protect you from wrongful “steering” by specifying the amount of compensation the REALTOR® will receive and the services they will provide. Since a broker working with a buyer receives the amount the buyer has agreed to, the amount of any offer of compensation is irrelevant to the buyer-broker’s compensation.    Where can I learn more about buyer agreements? NAR has created a dedicated resource on written buyer agreements here.     What can I do if I think a REALTOR® is violating NAR’s Code of Ethics? If a REALTOR® acts in a way that places their interests before yours, this is a violation of NAR’s Code of Ethics and should be reported to your state or local REALTOR® Association for investigation and potential disciplinary action. Please visit facts.realtor for more information and resources, and consult your real estate professional or attorney for details about state law where you are purchasing a home.  https://www.nar.realtor/infographics/understanding-real-estate-practice-changes-and-the-impact-on-the-consumer  

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Attention Home Sellers : DO NOT HIRE ANOTHER AGENT

Attention Home Sellers : DO NOT HIRE ANOTHER AGENT The New Way of Doing Business in Real Estate: Understanding the Shift in Buyer and Seller Compensation By Kim Donahue, Kim and Dave Luxury Team The landscape of real estate is evolving, and as professionals committed to staying at the forefront of industry changes, it’s crucial for us to help buyers and sellers navigate these shifts. One significant change that’s gaining momentum involves how compensation is handled between listing agents, buyer’s agents, and, ultimately, the parties involved in a transaction. Traditionally, when a home was listed, the listing agent would specify a compensation amount to be shared with the buyer’s agent. This amount was typically factored into the total commission the seller agreed to pay. However, this practice is rapidly changing, and here’s why: it’s akin to a listing agent publicly sharing the least amount of money a seller is willing to accept. In today’s market, transparency and strategic negotiation are more important than ever. Let me break it down: Shifting the Focus to Net Proceeds for Sellers As real estate professionals, our primary responsibility when representing sellers is to help them achieve their financial goals. This means focusing on net proceeds – the amount a seller walks away with after all expenses are paid, including agent commissions. When a listing agent advertises a predetermined compensation to be shared with a buyer’s agent, it inadvertently impacts how negotiations are conducted. Buyers and their agents may interpret this as a starting point for reducing the overall purchase price, rather than focusing on crafting an offer that meets the seller’s bottom line while addressing the buyer’s needs. The New Approach: Crafting Offers That Work for Everyone Instead of pre-setting a buyer’s agent compensation, the focus now is on encouraging buyers to craft offers that are compelling to the seller based on the overall value proposition. This strategy allows the seller to prioritize offers that meet their financial needs without being boxed in by a fixed compensation model. From a seller’s perspective, this is liberating. It shifts negotiations away from a set percentage and instead focuses on the final net proceeds. A buyer can still negotiate their agent’s fees into the offer – but it’s done within the context of what works best to get the deal done. Empowering Buyers and Their Agents For buyers and their agents, this shift represents an opportunity to align compensation with value. Buyer’s agents are still paid for their expertise, but instead of relying on the listing agent’s pre-set offer, their compensation becomes part of the buyer’s overall strategy in securing the home. By integrating the buyer’s agent fees into the purchase offer, we empower buyers to present deals that make financial sense for everyone involved. The key is not in how much compensation is being offered but in how well the offer addresses what the seller needs to make the sale. A New Era of Transparency and Strategy As the market continues to evolve, our approach must also adapt. We’re entering a new era where transactions are driven by clear communication, strategic offers, and a deeper understanding of each party’s needs. For those of us at the Kim and Dave Luxury Team, it’s about helping our clients make informed decisions in this new environment. Whether you’re buying or selling, understanding these changes is key to navigating the market successfully. As always, our goal remains to provide unparalleled service, guiding you every step of the way toward a successful transaction. Call/Text Kim Donahue: 941-724-2587 Schedule a time for us to connect: www.ConnectWithKimandDave.com       

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