Hello, my friends!
Can we talk about this sunshine?! Wow… still unsure if I love it or hate it – ok I love it. But my AC unit surely doesn’t travel well to the third floor!
I’ll admit, I’ve had it on my heart to get a letter in the mail for months now. With the landscape of the real estate market changing at a high level I’ve been trying to digest the news and how to explain it as simply as possible. Like any major change in an industry, there is endless articles and opinions and honestly, so much shit out there. I wrote about it a few months ago on my blog (website – AmandaInPortland.com), even then, nothing was official, and I’m afraid it still doesn’t feel that way as I’ve heard things could get overturned or reassessed, etc.
Ok – so here is what you need to know. The commission (pay) for a buyer’s agent has historically been negotiated and paid by the seller at closing. This is because the listing agent would negotiate their commission with the homeowner, and then advertise a portion of that commission to the agent who brings them a buyer and closes the deal.
We are an industry based on relationships and co-operation, so this became common practice but it was never a requirement nor mandatory. It is important to remember it was the listing agent paying a portion of their negotiated commission to the buyer’s agent. I won’t dig into the lawsuits, the only people who win there are the attorneys who will take home millions, however, there are changes coming out of the lawsuits and I want you to know the important points.
1 – Moving forward a Buyer’s Agency Agreement (numerous names for this) will be mandatory for any buyer wanting to tour a home, nationwide. It will be a state law in OR, it is already a state law in WA. This agreement will state the agency relationship, the mutually agreed upon commission the agent will be paid, timeframe and how commissions will be handled should a seller not advertise a BAC (buyer’s agent commission), among a few other details.
2 – BAC’s will not be displayed ANYWHERE. I’ll have to personally contact the agent for any home a buyer wants to tour to see if a commission is being paid and then let my client know in advance. While this sounds like a headache, I’m not worried about it, just a check list item!
3 – A major win for all – clearer communication on how agents are paid. It is unethical to say you work for ‘free’ as a buyer’s agent. This is absolutely not true, no one wants to go to work without getting paid. From here on out agent’s will be legally required to have these conversations with their buyer’s and get agency agreements in place prior to touring homes.
I can go on all day about this, but I don’t want to bore you! Please know you can call, email, or text me with questions. I love a candid dialogue and if you’re confused or wanting to really wrap your head around an aspect of this change, holler at me! All in all, buyer agency agreements are now law, and commissions have been, and will always be, negotiable.
On to the second and equally important part of this letter, summer cleaning!
There are a few things I love to do during the summer and one of them is a major clean out of my closet. As much as I love shopping, I equally love cleaning out my closet and donating clothing to those in need. I know that when I feel good about the way I look and the clothes I’m wearing, I feel unstoppable. I want this feeling for everyone, because everyone deserves clean clothes that they feel good in.
This summer, if you have a down day where you’re stuck inside due to the heat, I’d like to challenge you to look through your clothing for like-new / lightly used items you don’t wear anymore. Maybe your style changed, the item doesn’t fit right, or you just don’t like it (guilty) – a good reference I keep in mind: if I wouldn’t buy it again, I likely won’t wear it and it needs to go. You’ll be amazed how fast a donation bag fills up!
Now, why am I asking this? Well, I take all my donations to the Oregon coast at the North County Food Bank. There they have a large room of clothing for folks on the coast who are often underserved due to lack of resources in Tillamook County. I am personally running a clothing drive to super stock the food bank with as much clothing as possible. I know they love when I donate there, I can only imagine if I tapped into my network to help them out. Currently, they are in need of more men’s clothes than woman’s, work wear specifically (work shirts, jeans, flannel shirts, boots, etc.). They also need more athletic apparel for all. Shoes too! Honestly, anything like-new, clean and donation worthy – no socks or undies, unless new!
If you’re up for the challenge, I’ll be collecting clothing now through the month of August and it doesn’t matter what season the clothing is for. If you can drop it by my house, amazing! If not – reach out and we can coordinate something too. I have bonus room downstairs I’d love to fill up with donations!
Thank you for taking the time to read my letter. Know that I’m always one call away as your resource for anything real estate related, even if it’s a simple question or a document you’re looking for relating to your home sale or purchase. And of course, if you know of anyone looking to buy or sell, I’d be honored to be referred their way.
Your Realtor & Friend,
Amanda
