🚨 Are Home Buyers' Closing Costs Increasing?

🚨I apologize this is late. Our daughter has been sick with Pneumonia, so work was a bit tough the past few days. We will have another newsletter out by the end of the week as well.
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BIG Shakeup for Home Buyers & Home Sellers.

The landscape of the real estate industry is undergoing a significant transformation. Traditionally, it has been the norm for sellers to bear the burden of both their own and the buyer agent's commissions. However, this practice is increasingly being questioned, as sellers argue that they shouldn't be responsible for the fees of the agent representing the buyer.

On the other side of the transaction, buyers are becoming more aware of how these commission structures indirectly affect them, often feeling like they're the ones ultimately footing the bill through the purchase price of the home.

Check out this weeks video for more information.

This Weeks tldr:

🎥Video: Are Buyers' Closing Costs on the Rise? - A significant lawsuit is unfolding in the real estate industry, involving allegations of collusion among agents and companies to inflate commissions. How will this affect home buyers closing costs?

📰 News: Boston New Construction on PAUSE - The Greater Boston area is facing a significant slowdown in new construction projects, particularly in housing. This decline is attributed to global financial instability, high interest rates, and rising construction costs, making new projects economically challenging.

🌐 Website Underway! - Our website is in development and coming by Jan 1st, 2024!

❓Question of the Week - “How long has the property been on the market? — and why it matters.

YOUTUBE
Home Buyers' Closing Costs Are Increasing.

A significant lawsuit is unfolding in the real estate industry, involving allegations of collusion among agents and companies to inflate commissions, along with debates over the necessity of buyer agent commissions. Here are the key points:

🔹 Monetary Impact: A federal judge has already awarded $1.8 billion in this case.

🔹 Seller Concerns: Home sellers argue that there is collusion to increase commissions and question the need to pay buyer agents who negotiate against them.

🔹 Buyer Agent Compensation: A portion of the commission is offered to buyer agents for bringing potential buyers. This practice is central to the controversy.

🔹 Potential Changes: There's a possibility of eliminating buyer agent commissions from MLS listings, which could shift costs to buyers' closing expenses.

🔹 Impact on Market: Removing buyer agent commissions could increase the overall cost for buyers and limit their property choices, potentially affecting the market dynamics for sellers and agents.

🔹 Legal and Market Uncertainty: The lawsuit is ongoing, adding more real estate companies into its scope. This creates uncertainty in the market and among all parties involved in property transactions.

🔹 Call for Community Input: Viewers and market participants are encouraged to share their opinions and experiences related to this evolving situation.

NEWS
New construction in Greater Boston faces a slowdown

Just when we needed more housing, this happens. The Greater Boston area is facing a significant slowdown in new construction projects, particularly in housing. This decline is attributed to global financial instability, high interest rates, and rising construction costs, making new projects economically challenging. In September, housing permits decreased by 43% compared to the previous year, with a 27% decline overall in 2023. Even with high demand for housing, developers are hesitant to undertake new projects due to financial risks.

Efforts to address the housing shortage and modernize office spaces are impacted, leading to a backlog of approved but unstarted projects. Public and institutional work is keeping some construction firms afloat, but the outlook for new commercial projects remains uncertain.

Key Insights:

• 📉 Significant slowdown in new construction projects in the Greater Boston area, especially in housing.

• 💰 Challenges due to global financial instability, high interest rates, and rising construction costs.

• 🏠 Housing permits decreased by 43% year-over-year in September; a 27% overall decline in 2023.

• 🚧 Despite high demand, developers are reluctant to start new projects; public and institutional projects offer some stability.

Full Article found: Here

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MARKET UPDATE
Real-Time Market Update - Thu Nov 06th 2023

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I strung Mike along for months as my husband and I went back and forth on where we wanted to live. When we finally made the decision to consider relocating, Mike was right there to walk us through the process. We took and trip and bought a house all within a few days and knew we needed things to move fast on the other end with our current home. Mike again was there to quickly get our house on the market AND get it under contract.... for over asking price. The process was so smooth and painless. he had every detail under control. I would highly recommend working with Mike to not only sell your home, but find you one in the process. Leah Oustrich, Home Seller

EDUCATE
❓Question of the Week:

“How long has the property been on the market?”

Answer: The length of time a property has been listed for sale can influence both the seller's mindset and the negotiation dynamics. A property that has been on the market for an extended period might indicate potential issues or a pricing mismatch. Conversely, a home that's newly listed may have a firmer price due to recent interest.

• Indication of Demand: A shorter listing period often implies high demand, while a longer period might suggest lower interest or issues with the property.

• Negotiation Leverage: Properties listed for longer may offer more negotiation room. Sellers might be more willing to lower the price or agree to other terms.

• Pricing Insights: Long listing periods can signal overpricing or a decline in market interest, prompting a re-evaluation of the property's value.

• Potential Issues: Extended time on the market could indicate problems not immediately apparent, such as repair needs or undesirable location factors.

• Market Trends: The duration can reflect broader market conditions — in a slow market, even desirable properties might take longer to sell.

— Mike Urban

Reply with any questions you'd like us to address!

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