Downing-Frye Realty, Inc.

Seller’s Contribution To Buyer’s Broker Compensation The Buyer’s Broker must, in most cases, take two steps to allow the Seller to pay his compensation. 1. A written agreement with the Buyer consistent with the NAR settlement; and 2. An agreement with the Seller or Listing Broker to pay some or all of the Buyer’s Broker Compensation (if applicable). Our prior article discussed the pros and cons of the different Florida Realtor written agreements with the Buyer. To me, each form is useful depending on the Buyer and the circumstances. I view them as different tools in my real estate tool box - whatever works! In this article, we focus on different ways to encourage the Seller to pay the Buyer’s Broker Compensation. Let's review a few different approaches here.

We might be at Stage 1, where consumers observe others taking action and everything compounds. It's essential to communicate to consumers that a 50-basis points rate cut could lead to more cuts, but it could also result in inflation, making it a one-time cut. I suggest taking advantage of small wins rather than waiting for a big opportunity that may never come if someone is considering refinancing or buying a home they've been eyeing for a while.

Here are the training reminders! ??

Lower borrowing costs will likely entice buyers. It's been a long and bumpy road to the Federal Reserve's first interest rate cut in more than four years—a moment that could prove decisive for the finances of millions of Americans. The Fed's first-rate reduction since March 2020 occurred Wednesday and will provide some welcome relief for consumers in the market for a home. Every housing market has at least three years of pent-up demand due to interest rates at 20-year highs. According to Fidelity Direct Mortgage, this is the beginning of the thaw when sidelined buyers across all markets return, seeking an opportunity to relocate, buy, and sell. We believe that, at Fidelity Direct, the full impact of lower interest rates will begin to show over the coming 3-4 months. Although many markets like SWFL, where prices may have softened, will likely become less attractive to price-challenged buyers, offsetting the benefit of lower interest rates as inventories decrease.

Congratulations to our August 2024 Top Producers! ?? #RealEstate #DowningFrye #DFTopProducers

Here are the training reminders! ??

Florida Realtors (FAR) currently has three (3) Buyer Broker Agreements that satisfy NAR FAQ #58. Each has its purpose, with the Exclusive considered the most comprehensive and pro-broker. The Exclusive Buyer Brokerage Agreement (“Exclusive”). This document is three (3) pages long and goes further in protecting the Broker. But some buyers may refuse to sign it, particularly when meeting the broker for the first time. If a buyer and broker have never met, spending some time together on a trial basis may make sense. Developing a new relationship takes time. One of the other agreements may be an effective compromise, at least for a trial basis. The Showing Agreement (“Showing”). This agreement is two (2) pages long and is limited to specific properties. Notably, it does not include a protection period or conditional termination clause. I recommend this for new customers who want to view 1 or 2 properties. The Property Pre-Touring Agreement (“Pre-Touring”). This one (1) page document is limited to a specific time period and the broker’s compensation. Use this one when a new customer is flying in for the weekend with no particular property in mind. Pro Tip #1: Always try the Exclusive Buyer Broker Agreement first. This agreement pays the broker no matter how the buyer discovers or contracts to purchase, lease, or option the property. Pro Tip #2: Using a Buyer Broker Agreement may be totally expected by the buyer, so check whether your buyer comes from a state that already requires a Buyer Broker Agreement. One Realtor even told me of a recent sale where the buyer looked at the broker’s proposed 2.75% compensation and exclaimed, “That’s cheaper than back home!” He then signed the agreement. Can You Use These In Naples? Absolutely! Though many Realtors in Naples utilize the NABOR forms, FAR forms are a great resource and may better suit your presentation and strategy with customers. Some Realtors specifically like the section in the Exclusive that allows for a Conditional Termination.

Here are the training reminders! ??

One of the most immediate effects of a Fed rate cut is the potential for lower mortgage rates. For prospective homebuyers, this can mean lower monthly payments or the ability to buy a more expensive home than they otherwise could. Easier qualifications for mortgages When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to meet lenders' debt-to-income (DTI) ratio requirements and qualify for mortgages that may have been unaffordable at higher rates. Stronger demand for housing Lower mortgage rates reduce the cost of borrowing, increase purchasing power, and create a sense of rush to secure a lower rate, all of which drive up housing demand. Improved housing affordability Home prices and mortgage rates are the two main components that define a mortgage payment. The home price determines the principal amount borrowed, while the mortgage rate affects the interest paid on that principal. Thus, any changes in either of these factors substantially affect the overall monthly mortgage payment. More inventory in the market Affordability is interconnected with home availability. Better affordability also results in more affordable options.?According to a recent NAR analysis, lower mortgage rates allow buyers at all income levels to afford a greater number of listings, thereby expanding their choices. Fidelity Direct Mortgage promotes homeownership – It's Powerful!

The average American drops $330,000 on rent before becoming a homeowner. According to a recent study by Self Financial, the typical American renter can expect to pay more than $333,000 during their time as a renter. Here are the key findings from the study: The average American can expect to pay $333,065 for a lifetime of renting, including bills and additional expenses, or $25,620 per year as a renter from 22 to 35. Hawaii residents spend $599,242 on renting over their lifetime, or $46,096 per year — the most of any U.S. state. Americans spend an average of $12,145 on moving in and out of rental accommodation during their lifetime. Kansas residents pay the least to rent over a lifetime, spending just $238,225, including expenses. The analysis used Zillow data to calculate median monthly rent and utilities by state, RentCafe data for average utility costs, and Insure.com for renters’ insurance estimates. Based on National Association of Realtors estimates, it assumes people start renting at age 22 and buy their first home at age 35. Fidelity Direct Mortgage promotes homeownership – It's Powerful!