Expensive Changes on the Horizon for Homebuyers

Why It Might Be More Expensive for Homebuyers and How They Can Save Money

Starting Aug. 17, 2024, new rules from the National Association of Realtors (NAR) will significantly alter the home buying process. According to a June 2024 Clever Real Estate study, only 36% of Americans are aware of these changes. The new rules mean that offers to pay buyer agents won't appear on MLS listings, and sellers won't be required to cover buyer agents' commissions. Buyers may need to negotiate commissions directly with their agents, potentially using personal savings, which could leave less money for home improvements or a larger home. Previously, the 5-6% commission (split between the seller’s and buyer’s agents) was included in the home's price and paid off gradually through the mortgage. Without this inclusion, buyers may now face the difficult choice of purchasing a less expensive home or not buying at all.

The Center for Real Estate Education (recareercenter.com), a leading real estate school serving New Jersey, New York, and Florida, which licenses and trains thousands of real estate agents annually, is now turning its expertise to help homebuyers take control of their real estate journey. Their innovative new program, the AgentFree Homebuyers Certification Course, is designed to train everyday consumers to navigate the complex home buying process confidently — without relying on a buyer's agent. This step-by-step certification guides homebuyers through every crucial stage, from finding and comparing properties to mastering negotiations, securing financing, and closing the deal. By learning these insider strategies, homebuyers have the potential to save thousands in commission costs while making informed, empowered decisions.

Top Four Ways Buyers Can Cut Agent Expenses

1. Negotiate the Commission Rate: Many agents are willing to lower their commission rate, especially if buyers are purchasing a high-priced property or if the market is competitive.

2. Search for a Flat-Fee Service: Some real estate agents offer flat-fee services where they charge a fixed amount instead of a percentage of the home price.

3. Be Your Own Buyer’s Agent: It's legal to act as your own buyer’s agent, saving the full commission. Programs like the Center for Real Estate Education’s AgentFree Homebuyers Certification help buyers by walking them through the process, offering insider video tips, downloadable guides, checklists, offer letters, state-specific contracts, and low-cost consultation services.

4. Ask the Seller Directly to Pay or Contribute: In some cases, sellers might still be willing to contribute to the buyer’s agent's commission as part of the negotiation process.

Teaching Buyers To Be Their Own Agent

According to the same Clever Real Estate study, 66% of first-time homebuyers said they couldn’t afford their agent’s commission on top of other closing costs and the down payment. Seeing this as an important issue, Eric Anderson and Noelle Frieson Friedman from the Center for Real Estate Education and authors of "Real Estate Investing Made Simple" (Wiley, July 2024), teamed up with veteran agent and coach Susan South to create the AgentFree Homebuyers Certification Program. This course aims to walk buyers through real estate transactions without an agent, potentially saving them tens of thousands of dollars.

Noelle Frieson Friedman, director of the Center for Real Estate Education, explains, "Typically, a buyer's agent commission on a $400,000 home can be as high as $12,000. Most first-time and average-income homebuyers cannot afford these fees if they are not bundled into their mortgages. Homebuyers typically need this money for closing costs, a better home, or post-purchase upgrades. Buyers can save a lot by acting as their own agent, but without the right know-how, they might end up spending more. Even if they don't end up being their own agent, knowing their options helps them make smarter decisions and save money.”

Eric Anderson, national director of the Center for Real Estate Education and CEO of Alexander Anderson Real Estate Group, adds, "By cutting out the middleman, an educated homebuyer who acts as their own agent may have a better overall experience. They have more control over their transactions, can negotiate directly with the seller, and save thousands in commissions. We have licensed over 20,000 agents and are educating buyers by providing step-by-step video training, downloadable forms, and live support from local agents. Buyers can do it themselves without going it alone.”

The full program launches in New Jersey, New York, and Florida on Aug. 17, 2024, and will launch nationwide in the fall. Until then, all homebuyers can visit www.recareercenter.com/agentfree to access a free mini-course. The free mini-course provides an overview of the homebuying process and includes a quiz to help determine if you're suited to be your own agent.

Contact:

Center for Real Estate Education

Email: info@recareercenter.com

Office: 201-343-6640

recareercenter.com