Timing Considerations: Selling Your Home Now versus Awaiting the Realtor Settlement in Summer

The traditional wisdom of listing your home in spring is facing a new challenge due to a significant shift in the real estate landscape. A recent $418 million settlement between the National Association of Realtors and groups of homesellers has the potential to alter the dynamics of selling a home, potentially making it cheaper for sellers post-settlement by eliminating the standard 6% commission paid by the seller.

However, the question arises: is it worth waiting to list your home and risking a delayed sale? Spring has long been favored for home buying due to various factors. Pleasant weather, avoiding moving during extreme conditions, and aligning with the school calendar for families with children make it an attractive time to buy. Additionally, by spring, people often have paid off holiday debts, making it financially more feasible for many.

Yet, the impending settlement could present drawbacks for homebuyers. With the buyer’s agent commission potentially transitioning to flat fees upfront, buyers, particularly first-timers, may face increased financial burdens on top of the usual costs associated with purchasing a home. Consequently, there’s a potential incentive for buyers to expedite home purchases.

However, there’s uncertainty surrounding the settlement’s finalization, prompting some to advocate for not delaying home listings. Real estate professionals emphasize that waiting might not be necessary, as sellers are not currently obligated to compensate the buyer’s agent.

On the other hand, waiting until the settlement is finalized could offer sellers opportunities to negotiate lower agent commissions and possibly avoid paying the buyer’s agent commission altogether. This could translate into higher profits from the sale of their homes. Ultimately, while the settlement introduces a new variable, the value provided by an agent remains paramount in maximizing the sale’s outcome, regardless of timing.