Listing your home in the spring used to be an easy decision, but recent changes in the real estate market have complicated things. A key factor is the $418 million settlement the National Association of Realtors reached with groups of home sellers. Set to take effect by July, this settlement will remove the standard 6% commission paid by the seller, potentially making it cheaper to sell post-settlement.
But should you wait to list your home and risk missing out on a sale? Consider the benefits of moving during milder weather compared to a snowstorm or heatwave. Spring remains the most popular season for selling, especially for families who want to settle before the new school year. Plus, many people have recovered from holiday expenses by this time, according to Phil Crescenzo Jr., vice president at Nation One Mortgage Corporation.
The settlement could also bring challenges for buyers. Currently, the buyer’s agent’s commission is included in the total home price and paid off over the life of the mortgage. After the settlement, buyers may need to pay agents’ fees upfront, increasing financial strain, particularly for first-time buyers already juggling down payments, closing costs, and legal fees. This might motivate buyers to close sooner rather than later.
The settlement’s approval by a federal court is not guaranteed, adding uncertainty to the situation. This unpredictability is reason enough not to delay listing, according to Crescenzo, who noted that real estate agents aren’t seeing listing activity slow due to the settlement. Mike Downer, a broker with Coldwell Banker Realty in Naples, Florida, agrees. He sees no reason to wait, as sellers don’t currently need to pay the buyer’s agent’s commission.
The biggest advantage of waiting could be negotiating lower agent commissions or even avoiding paying the buyer’s agent altogether, saving sellers thousands. But Downer suggests that timing the market shouldn’t hinge on the NAR settlement. A valuable agent, he argues, will always help sellers maximize their profit, regardless of commission changes.
