Typically you’ll need to live in the home for a year

Correct, had to be done and approved by whoever owns the seller’s mortgage

They are now allowing seller credits so should no longer be an issue in most cases 👍🏻

@@JoshAlexanderRealEstate ty!

no problem 🙂

yup! great way to tap into your equity when you need some extra cash temporarily

Appreciate the feedback, it's definitely not a good time to buy a home for everyone right now, financially it doesn't make sense for a lot of potential home buyers. However, my videos are all based on data, when this was made we were going into a period of rates going down and seller's were more willing to do deals. Since then we have seen more buyers enter the market due to low rates and prices and bidding wars increase again over the last few weeks so it looks like the month of September is going to go down as the best time to buy a home this year based on supply and demand. In terms of the longer term, you've probably heard me say this multiple times if you've watched my videos for a while but I would not recommend that anyone buy a home that is not an investor as a short term solution. There is too much risk of something changing in the market that would drive down prices temporarily and put a home owner in a bad position if they had to sell. I always advocate for only buying a home if you are able to afford the payments, you can get into a neighborhood you like, have a stable job, and most importantly that you plan on being there for at least 5 years. Although all indication at this point are home prices will continue to rise next year in Orange County it's never a guarantee so the longer you own a home the less risk you take buying one but in the long term home values have always gone up so it's all about buying a home responsibly. Hope that helps clarify my stance.

Thanks for the comment, there are definitely people that should not buy a home right now because it would financially be a bad choice. However if you plan on living in the home for 5+ years, can afford the payments in an area you love then right now competition for a home and prices will be lower in Orange County but will likely continue rising over the next 12 months.

thanks for the input, for shorter term rates like 4-7 year car loans, that is correct, but not for long term mortgages as this rate cut and most of the other expected rates cuts this year have been factored in already so I wouldn't expect any major shifts in rates due to the feds lowing their rates this year. However, like I said in the video, rates can still go down if we get better inflation data, or worse unemployment data, before the end of the year. I have plenty of lender quoting in the high to mid 5s right now with good credit so hopefully you'll have a chance to refinance soon!

feel free to contact me anytime, all my contact info as well as access to my calendar to book an call is in the description of each video 🙂

I completely agree, like I said in the video this is a good thing for the industry and for consumers. Really the only people that lose out are buyers without a lot of cash reserves when it's a hot seller's market because they won't be able to compete as aggressively as others. This ruling took effect at the perfect time though as the market has cooled to a more manageable market where homes are flying off the shelves with 10+ offers in most situations so buyers are still being able to negotiate some seller concessions to help them pay for their buyers agent.

Your opinions are so wrong in many ways.

@@rickdepalma9083 you may be right but the old way was hopelessly corrupt and ANY move away from it needs to be tried. Now tell me i am wrong and i will know exactly who and what u r. An expert with an expert perspective or someone with a clear conflict of interest who wants to keep gouging people.

Yes, using a lawyer is always an option, however there is a reason most lawyers use a real estate agent when buying their own home, the contract is just a small part of the purchasing process and unless they are very familiar with all the ins and outs of everything else you need to be doing to protect yourself during a transaction it will put you at a big disadvantage when trying to get your deal accepted as well as actually closing escrow.

You don't even have a real user name.

Thanks for the comment. So for clarification, when you sign a buyers representation agreement you specify the area and time the contract covers in the agreement. You can make the agreement cover as little as a single property or expand it to cover a city, county, or region. So the agent and buyer should both understand the scope of what the exclusive agreement covers before signing. As for sellers keeping buyers out of the home, it really makes no sense to do that. There have already been plenty of cases where the buyer asks for closing cost credit to help pay for their agent and still came out with the better and higher priced offer so you would just be eliminating more chances to get the best price for your home if you didn't allow anyone in that wanted to negotiate on these terms. Hope that clarified some things, thanks for watching!

Thank you! Not sure if my content has ever been called nutritious before though, but I'll take it! 🙂

These stats are the same regardless of who enters the Whitehouse, based on 32+ years of data

Home prices are definitely high right now making it difficult for a lot of potential home buyers but there is no data showing they will be coming down anytime soon. Sellers still don't want to give up those 3% interest rates so supply is remaining low and as interest rates continue to drop homes are becoming more affordable while prices remain roughly the same. Buying a home right now is not ideal for everyone but it's worth taking a look at your finances and goals because if you are one of the lucky few that can afford to move right now seller's are making deals and will continue over the next 2 months.

Houses are never worth today’s price, whenever today is.

Homeownership is not right for everyone, which is totally fine. Sometimes financially it makes more sense to rent long term, especially if you like to move around often, don’t have a secure job, or would be sacrificing your must haves just to get a home and then have to be unhappy where you live.

Buyer's pay for their agent and sellers pay for their agent, just wanted to clarify that since you said buyer pays for both, unless you meant something else. Also as of right now since it's been implemented, I have seen almost all sellers still willing to pay closing cost credits to help the buyer pay for agent fees in full. As for flat fees, there are some flat fee brokers out there already and it might become more popular as an option for buyers who want to hunt for the house themselves and then have an agent help with the paperwork, negotiations and coordinating escrow. Still too early to say what the new normal will end up being.

@JoshAlexanderRealEstate yes I understand, but the home probably inflated to so buyer paying it. I went to open house and listing agent said to sign or we can't see the home. Another open house, they said we can see thebhome but don't talk to them lol

Got it, the buyer has always paid for the commission of their own agent in a round about way because before this ruling it was basically baked into the financing of the home. Part of the money the buyer paid for the home was used to have the seller pay for the buyers agent. However now that it's decoupled, it makes it more obvious and will give the seller more freedom to negotiated the credits they give to help out a buyer. As for open houses, there is going to be some adjustment periods that happen as everyone gets used to these new rule and different states as well as brokers have different rules for how open houses can work but in general from my knowledge there is no reason for a buyer to be turned away from an open house because they are being forced to sign something. The selling agent is still working on behalf of the seller when doing an open house so there is no representation implied between the buyer and selling agent when a buyer walks into an open house to see it, at least here in California.

Appreciate your input, I feel the exact opposite though. I think now is the best time to be a buyer's agent as good agents will demonstrate their value to get business and it creates a better experience for the buyer. It's a win for the industry that consistently suffers from a bad rap due to agents that don't have their clients best interests in mind and don't provide value.

@@JoshAlexanderRealEstate agree, I will do my best for buyers and sellers on my listings and be fair for both, this way you have the control to get paid instead showing 10S of homes to buyers and at the end they will go to the seller’s agents on different houses and purchase it direct from them, I had many experiences that buyers go direct because they think they get a better deal even if you signed them buyer’s agreement.you know those agreement could be cancelled and won’t work on a house that you haven’t showed it to them.

not sure what this means, in the video I was going over how the hot sellers market we saw earlier this year is winding down and we are now transferring closer to balanced market over the last month.

you'll definitely get better value outside of CA, but there are always trade offs

Thanks for your feedback 👍🏻

yes 👍🏻

If anything buyers would be paying the same or more closing costs then they do now but not less. Don't think the MLS is going anywhere for a while but even so if the only value you see using a real estate agent is them being able to put it on the MLS you can already do that yourself by paying a company a few hundred to do that.

Good Luck

If you are comfortable using a discount agent for one of the biggest purchases/sales of your life then those options have always been available, not a great choice based on the statics of how much you lose out on when selling, but always an option.

not sure about that, typically in CA at least attorneys do not get involved in the average home sale

for buying or selling a home?

@@JoshAlexanderRealEstate Sold.

@@JoshAlexanderRealEstate Selling.

If the agent is providing enough value then it could be worth it but at least here 6% is on the high end for most home sales.

@@JoshAlexanderRealEstate Fsob= end of agents.

It won't lower the costs of buying a house but it could raise it. It all depends on how much, if any, the seller is willing to credit the buyer at the end of escrow so they can use that to help pay for things like agent fees. It's still early, but over the last two weeks since these rules have been implemented it seems like most sellers are still willing to credit the buyer enough money at the close of escrow to help them cover most if not all of the cost of using their own agent but I'll continue to provide updates on this channel as to what the "new normal" is going to look like as things evolve.

If an agent only opened the door for you and sent you on market listings and then disappeared when you wanted to make an offer then I completely agree

Sounds like you’ve had some bad experiences with agents which is exactly why I think this settlement will benefit home buyers. It will force those agents that just open doors out of the industry and the ones that spend time and money helping you find homes not on the market, actively help you save money on the home through negotiations, getting things repaired, managing the right professional vendors to inspect the property to get you not only the best deal but also make sure you are staying financially and legally safe during the whole process will thrive giving the end consumer a much better experience.

I’ve been trying to find a real estate attorney to give me advice in reference to my needs for a purchase. Every one that I’ve called only wants to charge me for drawing up a contract…not one was able to tell me if I was covering all bases in the stipulations I provide; even though I am willing to pay. I feel like I may as well draw up the contract myself and hope for the best. If a real estate attorney doesn’t give you any legal advice, what’s the point? Anyone can download the contract and Docusign.🫤@@JoshAlexanderRealEstate

almost all real estate attorneys I've dealt with understand what a contract is and how to add things that legally protect you but don't know how to get an offer accepted or make it competitive while still giving you those same protections. They don't know what the home is worth, they don't know what contingency periods you'll need to stay protected but at the same time be competitive, what vendors to use to get inspections, how to talk to the seller agent to get a better chance of your offer getting accepted, etc.. The contract is only a small portion of what makes up a real estate transaction, which is why it's great to have a real estate attorney on your team but they aren't typically the best person to walk you through the entire transaction and give you advice based on the specific market and home seller's circumstances.

Sellers typically offered compensation to attract as many buyers as possible to their homes, if the buyer didn’t have a lot of extra funds then this made it more attractive to place an offer on a home knowing the seller was going to take care of some of the fees. You could also look at it as buyers were able to finance the cost of having separate representation into the cost of the home which now they will be unable to do until lending practices change(which I won’t be surprised to see loans out there eventually that allow for the financing of agent fees to help out first time home buyers and those without a giant amount of cash on hand)

Appreciate it, hope it was helpful!

It’s explained in the video but if you sell a home with a VA loan to someone other than a vet your going to have part or all of your VA entitlement wrapped up in the current home and won’t be able to use it on your next one.

Outside Southern California, probably.

agreed! The agents who provide the best service to their clients in this new system will stand out that much more and crowd out the mediocre ones. I consider that a win for buyers.

Exactly 👆🏻 this is why I believe we are going to see a bunch of new lawsuits as buyers go directly to the sellers to purchase their home and we will see dual agency banned in most, if not all states, in the next few years. In some cases it can work out, but it's almost impossible for one person to represent both the buyer and the seller's best interests 100% of the time and usually it's the buyer that is going to get the short end of the stick.

Dual agency can work out fine in some cases however negotiating with the seller and selling agent when the selling agent knows all your cards makes it likely that you end up either overpaying for the home or losing out on some money at the negotiation table. Again, this isn't always the case but I believe it will eventually become illegal in most states as buyers start suing more often for the poor representation giving to them by the seller's agent.

I never thought that was a big issue once all the info from the real estate agent MLS went public and syndicated to places like zillow and redfin because that gave the public access to most of the same homes the agents knew about so buyers are often dictating what homes they want to see now not the agent. But there are always going to be bad agents out there looking for a paycheck instead of having the best interest of the client unfortunately.

Yes, top dollar is very often the top priority for sellers, second? The chances the transaction will close with the buyers they go into escrow with. Great agents with a good track record of problem solving are going to thrive on both the buyer and seller side of the transaction and not much will change for them👍🏻

I agree that the seller's main focus is and always will be how much they net. Before buyers were able to "finance" the cost of using a real estate agent because it ended up being part of the overall price that they paid for the home. However now buyers are no longer able almost automatically do this so they have to be prepared to come out of pocket if they want representation. For the seller this is going to be a good thing because I think it will end up netting them more money in a seller's market and probably about the same amount as they used to get when the market turns to neutral or a buyer's market. For buyers, the hotter the market the more they are going to have to now come out of pocket to have their own representation so it will start to give an advantage, especially in a seller's market to those who have the means to pay for their own representation which data has show is the best way for buyers to get not only the best deal but keep themselves out of legal trouble as well.

Dual agency is definitely an option and in some cases it can work out just fine, however I've seen too many buyers end up offering more than they had to on the home because they weren't presented with the proper comparable sales info and didn't understand the current market conditions. Plenty of money can be left on the table as well during repair request negotiations with the way it works here in CA. So although it's still legal here(it's now illegal in at least 7 states) there is no real way for an agent to represent both parties equally in the transaction so it becomes more risky.

I have heard this from so many people and then when they tell me the specifics of the "deal" I usually find a boat load of ways they got the short end of the stick and did not know it.

Sellers pay their real estate agent and buyers pay for theirs as well unless the buyer is able to negotiate with the seller to cover some or all of the cost associated with using an agent.