Frequently Asked Questions
How can Family First Realty afford to do this?
Local, Direct-to-consumer brokerage with no overlaying fees like most of our competitors. We’re a business so of course we make money, but we’re not greedy. The cost of a house has increased by 50% over the past three years. Why should commissions also double? Are these folks doing any more work for you? We’re resetting the market to bring real estate agent income back to what it was pre-pandemic. Homeownership has become unaffordable for many and our goal is to help people be able to own a home. As costs have risen exponentially so have agent’s commissions. We think that’s not fair to buyers or sellers.
Our lead real estate agent has been in the industry for over 12 years and our preferred partners (local law firm, national title company) have over 30 years experience in residential real estate transactions and have the same mindset as us. This allows you to have a streamlined process, keeping costs under control with no compromise on value and service.
Why should buyers care about saving on commissions?
Isn’t it the seller’s responsibility? It’s a common misconception that sellers pay the commission. In reality, buyers fund these commissions through the funds they bring to the closing table. Recent legal changes, including a notable settlement by the National Association of Realtors® (NAR), have shifted this responsibility. Family First Realty empowers buyers to save on these fees, promoting a more consumer-friendly real estate market.
What does the recent NAR settlement mean for homebuyers?
The recent NAR settlement resolves litigation related to broker commissions. NAR will pay $418 million and implement new rules, including prohibiting broker compensation offers on MLS and requiring buyer agreements. This settlement aims to preserve consumer choice and protect NAR members, while potentially saving buyers significant commission costs.
How does the settlement affect the homebuying process?
Under the 2024 settlement, real estate agents are required to have buyers sign a representation agreement before touring a home. This change means buyers need to be more aware of their representation status to avoid unexpected commissions. Family First Realty’s affordable full-service model provides a transparent and cost-effective alternative. Working with us you can navigate these changes efficiently and save on traditional commission costs. This agreement is a non-refundable fee that determines the buyer agents’ compensation that you are responsible for, and duration, regardless of seller contributions.
How does the NAR Settlement affect me as a homebuyer?
Since August 17, 2024, buyers have been required to sign written agreements with their real estate agents before touring a home. This change ensures that buyers fully understand the services they will receive and the associated costs. The settlement also removes the requirement to list broker compensation on the MLS, which means any compensation agreements will be negotiated off-MLS, giving buyers and sellers more flexibility.
Why are written agreements with agents now required?
The settlement includes a new rule that requires written agreements between buyers and their agents to provide clear terms of service and compensation. This transparency helps buyers know exactly what they are paying for and prevents unexpected costs during the homebuying process. It also ensures that buyers are better informed about the services their agents will provide.
How will the changes to agent commissions benefit buyers economically?
With the new rules, agent commissions will no longer be disclosed on the MLS, reducing the upward pressure on list prices that was meant to cover the traditional buyer agent commission. This transparency allows for more personalized and potentially cost-saving negotiations. Family First Realty offers significant economic benefits by eliminating traditional agent commissions. This approach helps buyers save thousands of dollars that would otherwise go toward traditional agent commissions.
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Family First Realty does everything for you that a real estate agent does – at a fraction of the cost!