Sweeney Law Offices, PC

06/18/2024

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05/23/2024

Is your pet insurance worth the price? Buyer beware!

03/16/2024

The End of Traditional Realtor Commissions: A New Era for Buyers and Sellers

The real estate industry is standing at a pivotal crossroads due to a recent settlement that has upended the age-old commission model. The customary 6% realty fee, traditionally split between buyer’s and seller’s agents, is no longer a market standard, paving the way for new negotiation dynamics and fee structures.

This paradigm shift prompts a critical examination of the old incentive system where higher property prices resulted in heftier paychecks for buyer’s agents, ostensibly benefitting both parties. However, today’s market-savvy buyers often commence their property searches online, making one wonder about the value proposition of a buyer’s agent who is not financially motivated to press for a lower price.

Take the instance of purchasing a $1 million house. A $60,000 commission—once evenly split between agents—raises eyebrows when questioning the true cost-to-service ratio. The reformation opens the door for attorneys to step in as negotiators for buyers, working at hourly rates with a clear directive to lower costs, potentially providing a more cost-effective and goal-oriented service.

The shift could also lead to a significant exodus of buyer’s agents from the industry. The absence of predictable commissions might drive them to seek retainers, but buyers, especially those reliant on mortgage financing, may find such upfront costs daunting.

A silver lining, however, emerges in the potential decrease of “steering”. Agents have been known to favor properties offering higher commissions, often bypassing FSBO (For Sale By Owner) listings. The new norm could democratize property exposure, offering buyers a more comprehensive view of the market and sellers, even without agents, a fair chance.

In essence, while this transition challenges conventional practices, it heralds an era of transparency and equity in real estate transactions. The alignment of fees with actual service, the potential for more vigorous negotiation, and an equitable market for all listings, could redefine the value of a home purchase, placing the true interests of buyers and sellers at the forefront.

09/26/2023

How U.S. Households Got Turned Upside Down by Higher Interest Rates

A new reality has finally started to set in across American households: Higher interest rates are here to stay.

07/07/2023

Want to refinance to pay off unsecured debt? It’s an even worse idea now.

The average rate on the popular 30-year fixed mortgage hit 7.22%, according to Mortgage News Daily.

11/15/2022

https://www.cnbc.com/2022/11/15/household-debt-soars-at-fastest-pace-in-15-years-as-credit-card-use-surges-fed-report-says.html

Households increased debt during the third quarter at the fastest pace in 15 years due to hefty increases in credit card usage and mortgage balances.

11/05/2022

https://studyfinds.org/debt-american-owes-25000/

It turns out most people are still struggling in the wake of the pandemic, with 51 percent saying they're still living paycheck to paycheck.

10/15/2022

Student loan forgiveness has arrived! Click here:

07/25/2022

https://www.msn.com/en-us/money/markets/nouriel-roubini-says-predictions-for-a-mild-recession-are-delusional-as-severe-financial-crisis-looms/ar-AAZXVZu

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