561.500.ECHOWhat We Don’t Know
Every day, I am asked what I know about the real estate market in South Florida. People want to know what types of properties are best for investors. They want to ask if I have a good idea what company to use for an inspection. Lately, people are asking my opinion of what is going on with the craziness surrounding the recent NAR settlement. Should we wait to buy until the settlement is enacted? Will this cause the prices to drop? Will it mandate what color I must paint my industrial complex? Well, I am Howard Freedland with Echo Commercial Properties, and today, I focus on what I don’t know.
One: Should I stay or should I go?
If you want to invest, the same rules apply. Find a property that is worthy of your investment…and negotiate for it! The settlement will not change things in the commercial world, as commissions have always been negotiated at the beginning of each transaction, and many of us have buyer representation agreements in place to protect our work. Clear, honest communication will always win out over speculation. I don’t know if this agreement will improve profitability of any deal…just that how you get to the final number may change a bit.
Two: Will you save money after the settlement is finalized?
You might, but at the end of it, someone will need to perform work on a buyer’s behalf, and that person will need to be paid properly for doing it. Nothing worth anything in life is free. If people are positioning themselves to benefit from this, remember, you get what you pay for. This settlement is not to say that the work done by some agents is superfluous, just that the numbers may be negotiated. Trust me when I say that there are several things good agents do for their compensation, and if you think you can shave that down, try. But you may, indeed, be hurting yourself in the long run.
Three: Will building colors be mandated? Yes…everyone will have to paint their warehouses yellow, multi-family is brown and offices will now need to be green. Remember when I titled this piece “what I don’t know”?
Bottom line is that the NAR settlement will make agents more accountable to all parties in a transaction, and that some of the aspects of compensation can be negotiated. It will increase buyer representation agreements being used, and it will not require you to paint your building. Remember, at this point, this case is still evolving, and it is smarter to say what we don’t know…yet. I am Howard Freedland, and this was the Echo Commercial tip of the week.
Contact Howard Freedland for more information on Commercial Properties!
561.889.2735
Howard@EchoCommercialProperties.com
https://stg-echocommercial-php82.kinsta.cloud/
