Corcoran told Yahoo! Treasurer believes the impact of the settlement will not be as earth-shaking as many think, but says: “The disruption it is causing is staggering.”
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Barbara Corcoran will always tell it like it is.
Founder of the Corcoran Group and Star of ABC shark tank Said Yahoo!finance He said Wednesday that while he believes the National Association of Realtors’ recent $418 million settlement of brokerage commission lawsuits won’t disrupt the industry as much as expected, it does result in industry experts and It said it had caused “complete confusion” for both consumers.
Barbara Corcoran | Taylor Hill/Getty Images
“Brokers are confused, buyers and sellers are confused, and I think even the people who drafted the amendments are confused,” Corcoran said.
The former broker went on to explain that the settlement means buyers who wish to be represented in a transaction must enter into a buyer-broker agreement with their agent that sets out how much the agent will charge for their services. She added that the change from fees added to seller fees by default is likely to confuse experienced buyers.
“We know buyers don’t like paying for products out of their own pocket,” Corcoran said.
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But because sellers have an incentive to attract buyers, they will likely try to “make a profit” with buyers by covering closing costs and other costs to “even the score,” Corcoran added.
“So, to be honest, I don’t think this ruling is a big deal,” Corcoran said. “But the disruption it’s causing is amazing.”
Yahoo!finance Mr. Corcoran wondered whether the ruling would help bring down home prices because home sellers would no longer have to pay the 3% buyer’s brokerage fee, but Mr. Corcoran was quick to point out that such an outcome would said it was unthinkable.
“Sellers are greedy. They have a one-time chance to get the most out of their home, and they’re not going to give that money away to anyone else,” Corcoran said.
He added that home prices are continuing to rise due to inventory shortages, and that further reductions in interest rates before the end of the year could send home prices “through the roof” as buyers flood the market.
“I think you and your mom and in-laws are going to be looking for new homes. Competition is going to be very intense and home prices are going to go up.”
If buyers want to avoid paying more, they should put it on the market now, Corcoran advises.
Corcoran said he doesn’t think the inventory shortage problem will ease dramatically anytime soon because homeowners don’t want to give up 2, 3 or 4 percent mortgage rates.
Corcoran said a change in interest rates won’t necessarily be a tipping point for consumers, but while it’s impossible to know what rates will trigger homebuyers and sellers back into the market, He said the only factor forcing people to move is a change in their lifestyle. Trustworthy.
Even though renting is now more affordable than buying in every major U.S. city, Corcoran said she doesn’t think the American dream of homeownership is over yet. But in this environment, making that dream a reality is especially difficult for first-time homebuyers.
“They’re the ones being hit the hardest,” Corcoran said. “They have to compete the hardest and have the least amount of cash to compete, so they don’t make cash offers and end up losing four out of five houses that are interested. I don’t want that to happen.” I’m a first-time buyer. ”
Fortunately, Corcoran had some advice for first-time buyers struggling in this market.
“I’ve been doing this all my life,” Corcoran revealed. “Join the community, see which homes you like, and write a love note on every door.”
Corcoran used this tactic on the last four homes she bought when the home she was interested in wasn’t yet on the market, and she said it worked.
Buyer love letters are considered a controversial tactic because they can put agents at risk of violating fair housing laws. However, a 2022 ban on love letters to buyers enacted in Oregon has since been deemed unconstitutional and rescinded, suggesting that love letters are not as taboo in the industry as once thought.
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