What Stepping Outside Looks Like
Messy….it can look messy at first, but who cares? It's way better than being stuck somewhere. It's a bit like spring cleaning. Sometimes it needs to get worse before it gets better.
I've long been a risk taker, but I also know that I've gotten in my own way on plenty of occasions. Maybe it was because I was chasing something to make more money, hit a higher sales volume, or rank better, or maybe it was because I was afraid of failing. I can still hear a manager I had when I was fairly new in real estate. He always used to say, “Kid, you have great ideas. You just need to get out of your own head.”
The photo is from the filming of my new podcast that I'm hosting with another local badass real estate broker, Kim Borcherding. Did we have any idea what we were doing while filming this podcast….nope! Do we both have a lot to say? Definitely. Will we fine-tune the process? Of course. Was it all comfortable? Nope, but I have wanted to do a podcast for 5 years. I was simply getting in my own way, overthinking it, and not prioritizing it. It felt great to bust through that self-imposed roadblock.
When you look around at those in our industry who are blazing trails or making an undeniable impact on the market through video, social media, hosting local events…., or whatever it may be, I bet none of them began comfortably with what they are now excelling at.
I'm in this season of my career, where collaboration with those who inspire me is at the forefront of my decision-making. We cannot all be good at everything! I want to learn from those that are doing things better than me, those that have forged paths, I have never even thought of. I am continually focused on collaboration over competition. As the market shifts with commission changes, this is going to be more important than ever.
Let's all make stepping outside of our comfort zone the norm and see where it takes us!
Buyer Commissions
On Thursday, FHA announced that Buyer Agent Commissions would not fall under "interested party contribution" guidelines.
What a win and a sign of what will come as commission decoupling unfolds. My biggest concern thus far has been how the underserved, VA, first-time homebuyers and those with only enough to meet a minimum down payment will fare in this new real estate space if they have to pay Buyer Agent Commissions out of pocket. With this FHA announcement, I anticipate more changes to follow.
Here is how it will work with FHA and the conversation that I'm having with my buyers—
For all Federal Housing Administration (FHA) loans, the seller(interested party) has been able to contribute up to 6% of the purchase price. Concessions on FHA loans could be put towards closing costs, appraisal fees, and other expenses related to this real estate purchase.
Buyers can now ask the seller to pay for services plus up to 6% of the usual credits, allowing BAC to be a line item and paid on behalf of the buyer. The suggested language for writing this up is—
“Per local custom, the seller agrees to pay X% of the price for the buyer’s agent commission. Additionally, the seller agrees to pay up to $X toward buyer closing costs, prepaid, discount points, temporary rate buydown, and/or home warranty of buyer’s choice.”
“Per local custom” allows for separating the BAC from the other allowable contributions.
To me, this signals that we are moving in the right direction in order to effectively facilitate the NAR settlement changes should they be approved.
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See you next week!
