It is down to the wire now. The real estate settlement agreement has not been joined by all Real Estate Companies and those who wish to be a part of the settlement have to commit by the end of Today.
Right now there is so much confusion in the market no one really knows what is going to happen come August 17th. In addition what happens to those firms who did not choose to settle? Are they going to have any consequences because of exposure to more lawsuits?
By the way not all of the lawsuits were successful. Last week the northern California MLS called “Baries MLS” had the lawsuit against them thrown out of court for lacking merit. In fact over 70% of all Realtors did not approve of the settlement. This all creates a bit of chaos as we approach August 17th.
In the meantime, rates will not see more than one cut, if that, this year. Rates are hoovering around 7%. Inventories have risen, yet sales have declined and in some areas are very soft. For buyers, this may be the last opportunity to buy a home under the old commissions format, meaning the seller will pay for the buyer’s agent fee or commission. After August 17th that may not be how it is done and buyers may have to pay their agent’s fee. Also no buyers can see a home unless they have a signed agency agreement, including open houses.
Stay tuned for more updates as we get closer to the transition day.