Navigating the New Real Estate Market in Austin: A Personal Take for Realtors

The Impact of New Real Estate Commission Rules

The real estate world is shifting, especially with the recent changes stemming from the National Association of Realtors (NAR) lawsuit. These changes, particularly regarding commission structures, are shaking up how we do business. As a Realtor in Austin, you’ve likely felt these changes firsthand. I know I have.

Recently, I experienced the impact of these changes in a very personal way. I lost a potential client because I couldn’t get them to sign the new Buyer Agency Agreement (BAA) form. This form, which is now more critical than ever due to the new commission rules, was met with hesitation and confusion from the client. Despite my best efforts to explain its importance, they decided not to move forward with me, and I lost a potential client.

My experience isn’t unique. After sharing my story on the Lab Coat Agents Facebook group, the post received hundreds of comments from fellow Realtors facing similar challenges or advice on how to prevent it from happening again. The overwhelming response highlighted the ongoing confusion surrounding the new law. Many agents are finding it difficult to get clients, especially those from internet leads with no prior relationship, to understand and sign these new agreements. The confusion is leading to lost business opportunities across the board.

Austin Market Overview: What’s Happening Now?

The Austin real estate market has been hot for years, but 2024 is proving to be a year of adjustment. Here’s a snapshot of where things stand:

1. Home Prices Are Leveling Off

- The median home price in Austin in July 2024 was about $550,000, which is slightly lower than last year. This 2.1% decrease indicates that the market is cooling after years of rapid growth.

- This moderation could make Austin more accessible for buyers who were previously priced out.

2. More Homes on the Market

- Inventory levels have risen significantly, with a 25.9% increase in active listings compared to last year. This gives buyers more choices and reduces the urgency to act quickly.

- For sellers, this means more competition, making it crucial to price homes correctly and enhance their appeal.

3. Longer Time to Sell

- On average, homes are now spending 65 days on the market, up from 48 days last year. This longer timeline reflects a shift towards a more balanced market, where neither buyers nor sellers have the upper hand.

- As a Realtor, managing client expectations and preparing them for a longer sales process is key.

How These Changes Affect Your Business

The combination of new commission rules and a cooling market means that Realtors need to adapt quickly to continue thriving. Here’s how:

1. Client Education Is Essential

- The new BAA form is causing confusion, and it’s crucial to educate your clients about why this agreement is necessary. Clearly explain how the new commission rules impact them and how the form protects both parties.

- Transparency builds trust, which is especially important when dealing with internet leads or clients who may be unfamiliar with the process.

2. Strategic Pricing and Marketing

- With more homes on the market and prices leveling off, pricing a property right is more important than ever. Overpricing can lead to extended days on the market, which can hurt your client’s chances of a successful sale.

- Enhance your marketing efforts to make your listings stand out, especially in a more crowded market. High-quality photos, virtual tours, and targeted online marketing can make a big difference.

3. Strengthen Relationships with Clients

- The confusion around new laws means that building strong relationships with your clients is more important than ever. Internet leads and first-time buyers may be particularly wary, so take the time to establish trust from the start.

- Personal connections can help ease the uncertainty and increase the likelihood of clients signing necessary agreements.

4. Adapt Your Negotiation Tactics

- The changes in commission structures mean that negotiation is becoming more complex. Be prepared to discuss commission rates openly and negotiate terms that are fair for all parties involved.

- Understanding the current market conditions in Austin will help you position your clients for success, whether they’re buying or selling.

Looking Forward: The Long-Term Outlook

Even with these changes, Austin remains a strong market with long-term potential. Over the past decade, home values in Austin have appreciated significantly, and while the market is cooling now, the city’s economic fundamentals remain strong.

- For Buyers: The current market conditions might offer better opportunities to purchase a home at a more reasonable price, with less competition.

- For Sellers: While it may take longer to sell, Austin’s desirability ensures that with the right strategy, sellers can still achieve favorable outcomes.

As Realtors, we must stay adaptable and informed. The new commission rules and market shifts present challenges, but they also offer opportunities to refine our practices and better serve our clients. By focusing on education, relationships, and strategic decision-making, we can navigate these changes successfully and continue to thrive in the Austin real estate market.

Key Takeaways for Realtors

- Understand and Explain the New BAA Form: Educate your clients about the importance of this form in the current market to avoid losing potential deals.

- Adjust to Market Changes: With increased inventory and longer selling times, adapt your pricing and marketing strategies to stay competitive.

- Build Strong Client Relationships: Especially with internet leads and first-time buyers, establishing trust is crucial in this confusing time.

- Stay Resilient: Despite the current challenges, Austin’s market remains strong for long-term investment, and there are still plenty of opportunities to succeed.

By staying informed, flexible, and client-focused, you can navigate the complexities of the new real estate landscape in Austin and continue to grow your business.

ABOUT THE AUTHOR:

Courtney Cordova is the Senior Account Executive for TLC Home Inspections?and an active Realtor. Her goal is to generate more business for TLC Home Inspections, by providing Realtors with go to information about social media marketing and knowledge of the? local Central Texas Real Estate Market. She makes this content available for free, so if you like this, please consider working with TLC Home Inspections for all your inspection needs.?

ABOUT TLC HOME INSPECTIONS:

TLC Home Inspections specializes in home and commercial inspection services, sewer scoping, and mold testing. With a team of 8 inspectors, they cover the entire Central Texas Area and often have next-day appointments available. TLC Home Inspections also offers convenient one-click ordering (https://www.tlcinspectors.com/schedule-austin/ ) for their services.

You can reach Courtney at 737-312-2136 or email me at [email protected] .? If you'd like to discuss business over a meal, I’d be more than happy to take you to lunch. Click here to schedule .

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