The National Association of Realtors announced a $418 million settlement that could go into effect as early as July, eliminating the long-standing 6% commission paid by the seller. This could make it cheaper to sell a home post-settlement, raising the question of whether it is worth waiting to list a home and potentially risking a sale. Spring has traditionally been the most popular season to buy a home, with pleasant weather and the ability for families with children to close on a home and stay in the same school. Additionally, people are more likely to have paid off holiday debt by springtime.
However, the settlement could present a major downside to homebuyers. Under the current system, the buyer’s agent’s commission is included in the total price paid for a home, but after the settlement, buyers may have to pay flat fees upfront to agents. This added financial burden, especially for first-time homebuyers, could incentivize buyers to close on a home sooner rather than later. There is also uncertainty about whether a federal court will approve the settlement as is, further emphasizing the need to not wait to list a home.
Some real estate agents believe there is no reason to delay listing a home, as the seller does not currently need to provide any compensation to the buyer’s agent. Waiting to list a home until the settlement is finalized may allow for more negotiation on the agent’s commission and potentially avoid paying the buyer’s agent’s commission. This could result in the seller pocketing more money from the sale of their home. Despite the potential financial benefits of waiting, some believe that the NAR settlement should not be a major consideration when it comes to timing the sale of a home.
In the current market, waiting to list a home until the settlement is finalized could allow for more negotiation on the agent’s commission, potentially resulting in more money for the seller. However, some real estate agents believe that listing a home as soon as possible is the best approach, regardless of the NAR settlement. An agent who provides value is seen as more valuable than an agent who does not, as they can help the seller net more money from the sale of their home. Overall, the decision of when to list a home should consider both the potential financial benefits of waiting for the settlement and the importance of working with a knowledgeable and valuable real estate agent.
