AUGUST ARTICLE BY
Welcome to Fogust in the Bay Area
August is now lovingly called "Fogust" because we might not see the sun all month. A few weeks ago, I showed my mom and aunt around our lovely state. The coastline was cool and foggy, while the inland areas saw temperatures reach up to 110°F! Being from Maryland, they were amazed by our weather.
The trip also reminded me of how beautiful our state is and how varied the landscape and climate are. I encourage everyone to get away and enjoy what we have. I think many buyers were doing just that in July. Activity at open houses has been very slow. Buyers are holding back, possibly waiting for lower interest rates or feeling nervous about the outcome of the November elections. Some nice homes are lingering on the market, creating an excellent opportunity for buyers who don’t have to compete.
If you’ve been following the news about the NAR (National Association of Realtors) lawsuit and its outcome, you’ll know that some changes are coming in midAugust. Listing agents used to share a portion of their commission with the buyer’s agent. Now, a buyer’s agent will need to negotiate with their buyer on how they will get paid. This payment will likely still be the seller's responsibility, as it always was, but will now be requested through the purchase agreement.
Some sellers see this as an opportunity not to offer a payment to the buyer’s agent. That could be a tricky gamble. First-time buyers typically don’t have the extra cash to pay their agent. If a buyer sees a property offering to pay for their agent’s commission and another that is not, which do you think they’ll choose? These offers will now be called “concessions,” meaning the buyer can use that money in multiple ways, such as towards a down payment, closing costs, or their agent’s commission. It remains to be seen how creative buyers and buyer’s agents will be when asking for these concessions and how they will use them. We will be on a big learning curve as we navigate the rest of this year in real estate. I’ll let you know how it’s going in my next newsletter, as I have two active listings and two coming soon.
So, enjoy Fogust, and I hope you get out and appreciate our beautiful state!
