It’s All About The NET!
If you’ve been paying attention to the news you’ve probably heard about the recent National Association of Realtors (NAR) Settlement.
We have received countless questions from friends, clients, and family wondering what’s really going on. As with most news, there are perceptions and there are realities.
Given the magnitude of the news and questions we’ve been receiving, we thought it helpful to share our point of view. And also, how our community might think about the impact of the settlement as a future buyer or seller.
Instead of trying to unpack this complex settlement and risk boring you with the finer details, we’d like to simply share what a recent news story we watched reported and what we know to be true:
News Statement #1: “Home Sellers will no longer BE REQUIRED to pay the Buyer’s Broker”.
News Statement #2: “Home Sellers can NOW NEGOTIATE the compensation they pay to their Broker”.
News Statement #3: The cost of selling your home will be reduced significantly as a result of the settlement”.
Sounds amazing, right? Well, for us it was a little “much ado about nothing”. How could that be? In short, in the State of Washington, our real estate law and services agreements have included the broker’s compensation as a blank field for years. Clients already have the opportunity to negotiate their broker’s compensation. Also, Sellers have never been required to pay the Buyer’s broker. Why has that been a common practice then? When the Seller pays the Buyer’s broker it reduces friction in negotiations and allows the Buyer to offer with maximum personal asset availability (earnest dollars and optimal loan-to-value ratios etc).
We’re not suggesting sellers have to continue the common practice of paying the Buyer’s broker, again, they make the decision. It is our duty and responsibility to offer our clients the options with the pros/cons/costs/benefits so they can make the best decision for themselves.
Speaking of decisions, the most important thing to take away from this settlement, we think, is that buying and/or selling a home are likely the largest financial decisions you’ll make in your life. Knowing that not all brokers are created equal, it’s critically important that you find the best broker and service price for you and your needs.
When the time is right for you, we encourage you to use our simple formula to help you identify the best broker for you. We call it N.E.T.
“N” stands for Net Proceeds. We encourage you to think less about broker compensation as an expense and more as an investment. Invest in the very best professional who demonstrates the ability to get you the highest net proceeds for your sale or the lowest possible purchase price/best terms for your new dream home. After all, it’s all about the bottom line.
“E” stands for Experience. Buying or selling a home can be exhilarating and also exhausting. When considering a broker, it is super important to consider your broker’s experience. Do they command all of the “art and science” skills and abilities to best serve you? And also, what type of experience do you want? Will this “service provider” make it easiest for you to sell your home or discover and win your dream home?
“T” stands for Trust. This one is probably the most important in our minds. Since it’s likely the biggest asset/investment in your lifetime it’s super important to have a trusting relationship. Does your broker build trust with you and give you the feeling of treating your sale or purchase as if it were their own sale or purchase? Do they serve you like you were a member of their own family? You deserve the very best, if something doesn’t feel right, interview another broker to make sure you get the best one for you.
We hope this sheds some light on what’s going on with the NAR settlement and the future of the real estate industry. It’s always changing and yet some things stay the same. A great example of change is how Technology is helping the industry become more efficient and effective. And something that we believe stays the same is that technology cannot replace the human algorithm. That is an exceptional Broker working for you.
So the next time you’re wondering where to start when it comes to selling your home for top dollar or discovering and winning your dream home, we recommend using the NET method (Net Proceeds + Experience + Trust) and interviewing 2-3 brokers. We’re sure whoever you pick will make you a winner in Real Estate!
Until next time, may all your real estate dreams come true!
Matt & Christina
Matt & Christina are Team Skally, top real estate agents in the Seattle Metro with expertise in luxury homes on the Eastside including Bellevue, Newcastle, Mercer Island, Renton and Issaquah. Their client testimonials say it all - they deliver exceptional service and record-breaking results. Recognized as top agents on social media by Property Sparks, Diamond Award winners for best client service, Nextdoor’s Neighborhood Faves and regularly featured in online and print publications including Greet - Newcastle & Newport Hills Magazine. In addition to serving clients, Matt and Christina love family time with their two boys and two Goldendoodles as well as volunteering in the community.