Realty Digest June 2024

HAPPINESS IS WORKING WITH A REALTOR WHO UNDERSTANDS THE NEW NAR RULES

Many potential home owners have questions and concerns about the NAR Settlement and Rule Changes going into effect in Mid-August 2024.

Q: How will the Rule Changes affect my ability to sell my home?

A: In some aspects, if we handle the sale properly, the rule change may enhance your ability to sell you home… I can explain in detail when I meet you.

Q: Will I have to pay a Buyer’s Agent Commission once the new rules go into effect?

A: For several years, sellers have been allowed per MLS rules to pay just a $1 commission to the Buyer’s Agent. So, not much has changed in California, but I can explain in detail the alternative methods for paying compensation to Buyer Agents under the new rules.

Q: Are these New Rules really as complicated as they seem to be? No one seems to have a straight answer on how things are going to work after Mid-August 2024.

A: In consultation with California Association of Realtors attorneys over the last 2 months, I developed elegant solutions for buyers who cannot pay agent compensation (VA, FHA, and Buyers with downpayment threshold issues). I can give you straight answers when we meet.

If you are having thoughts of selling, there is no reason for concern about the new rules. I am standing by to help you successfully sell your home during this time of change!

How’s the Huntington Beach Market?

At the start of 2024, the Days of Supply* for all homes in Huntington Beach was sitting at 78 (Balanced Market Range). The slower market conditions were attributable to mortgage rates spiking to over 8% in October 2023.

When the Federal Reserve began easing, mortgage rates fell to the 6.5% level by the end of 2023. Buyers entered the market again in droves, and the Days of Supply dropped back to 48 by February.

As the spring homebuying season kicked off, mortgage rates spiked to as high as 7.43% in April, but rates have since settled back to 6.97% as of June 13, 2024.**

Mortgage rates below 7% will be very beneficial to the Huntington Beach housing market as we head into the summer. The Days of Supply* is at 47 days as of June 6, 2024 which indicates continued Seller’s Market conditions.

*Days of Supply

My Listing Commission in the NEW ERA will be 3.5% or Less!

We’ve entered a NEW ERA in real estate, where the Buyer’s Agent is paid based on the compensation identified in the Buyer Representation Agreement… not an amount published in the Realtor MLS.

In the past, there was an emphasis on “Salesforce Marketing” with generous Seller paid Buyer Agent commissions to bring qualified buyers to the table. But this incentive is no longer guaranteed by the MLS Rules.

If a Seller offers to pay Buyer Agent compensation exceeding the amount specified in the Buyer Representation Agreement, the Buyer Agent cannot legally accept the additional compensation.

Successful Marketing in the NEW ERA is evolving toward Consumer Product style techniques which emphasize Branding, Emotional Appeal, Packaging, & Multi-Channel Advertising:

Branding: Home buyers exhibit predictable consumer behavior. In the biggest purchases of their lives, they prefer to buy from an established & respected brand. Coldwell Banker is the oldest, best known, and most respected Real Estate Brand. Millions of advertising dollars are spent year-afteryear so potential buyers will have a positive association with your home the moment they see the Coldwell Banker sign in your front yard.

Emotional Appeal: My Home Preparation Assistance will position your home to get top dollar. I do not charge extra for coordinating the professionals that will make your home look fantastic for prospective home buyers.

Packaging: The Image Filled Marketing Package I create for your property will be amazing: Hi-Res photos, drone shots, 2D Floorplan, video, and 3D Virtual “walk through” Tour.

Multi-Channel Advertising: The imagery and property details will be aggressively distributed using multiple marketing channels directly to the consumer to attract qualified buyers. Your listing will be on all the top websites: Zillow, Homes.com, Trulia, Realtor.com, ColdwellBanker.com, Redfin, and the Realtor MLS. It will also be advertised on these additional channels: Social Media, eMails, brochures, retargeting, geo-fence targeting, texting, direct mail, signs, & more!

In the NEW ERA, many consumers will find your home on their own, then come tour it without a Buyer’s Agent.

If a qualified buyer has not signed a Buyer Representation Agreement before visiting your home, I will represent that buyer as a Dual Agent… this service is included in the 3.5% commission.

A “Salesforce” of Buyer Agents will still try to sell your home, and some consumers prefer to sign a Buyer Representation Agreement with an agent they know & trust.

My marketing recommendation to home sellers in the NEW ERA is to encourage cooperating agents to show and submit offers. I anticipate most sellers will consider paying compensation to Buyer Agents per the terms of their Buyer Representation Agreement. I believe it is sensible to consider offers with the Highest Net Proceeds & Best Terms regardless of the amount of compensation paid to the Buyer’s Agent.

Notably, I offer a discount on the 3.5% Listing Commission when the buyer has an agent. You can redirect these funds toward the compensation of the Buyer’s Agent or toward your other customary seller closing costs.

Scot Campbell is an experienced, trustworthy, knowledgeable, reputable, and above all caring Realtor with 100% 5-Star Reviews.

In 2024, he already has 14 Transaction Sides Closed or In Escrow Totaling over $31 Million. Scot has Brokered over 3,500 Homes in the last 34 Years!

413 California St, Downtown Huntington Bch CLOSED: Represented Seller - $2,610,000

16123 St. Croix, Huntington Harbour CLOSED: “Seagate Lagoon” $1,415,000

4021 Ondine Circle, Huntington Harbour CLOSED: $1,685 PSF - $5,700,000

317 22nd Street, Downtown Huntington Bch

Represented Seller - $2,712,500

17131 Autumn Circle, Huntington Beach CLOSED: Represented Seller - $1,530,000

125 16th Street, Downtown Huntington Beach CLOSED: Represented Seller - $8,650,000

18616 Park Glen Lane, Huntington Beach CLOSED: Represented Buyer - $1,198,000

17821 Altamirano, Huntington Beach CLOSED: Represented Buyer - $1,195,000

321 22nd Street, Downtown Huntington Bch CLOSED: Represented Seller - $2,712,500

4167 Warner Ave #101, Huntington Harbour CLOSED: Represented Seller - $1,110,000

17241 Lynn Lane, “Brightwater Area” Huntington Beach NEW CONSTRUCTION: Amazing Modern Home & ADU

Main House: 4 BR + Office, 4.5 BA, 4,626 SqFt ADU with Separate Entrance: 2 BR, 2.5 BA 1,001 SqFt. Luxury finishes throughout, Gourmet Island Kitchen, Open Concept, 4 Car Garage, Home Automation System Outdoor Kitchen, Foutain Wall, Decorative Lighting, and so much more.

NOW IN ESCROW: We had multiple offers on this amazing custom new home. List Price: $4,999,000

8842 Dorset Drive, Huntington Beach

Single Story Mid-Century: 3 BR, 2 BA, 1,568 ASqFt IN ESCROW: Park Place Home - List: $1,399,900

20065 Waterford Lane, Huntington Beach Split Level: 3 BR, 2 BA, 1,535 ASqFt. 2 Car Garage IN ESCROW: Guard Gated Seabridge - List: $995,000

Duplex: 2BR/1BA & 1BR/1BA