Home Buyers Have a New Cost to Worry About
Dear Home Buyers,
Big changes are coming to the world of home buying, and they're about to impact you directly. Let's talk about what these changes mean for you and how they'll affect your journey to owning a home.
What is changing in the real estate industry
First off, let's address the elephant in the room: commissions. Did you know that in the U.S., the majority of home sellers pay hefty commissions, often totaling thousands of dollars, regardless of the level of service provided? It's true. In fact, on a $750,000 sale, sellers can expect to fork over around $38,000 (5%) in commissions alone. That's a staggering amount of money, especially when you consider that this commission structure doesn't exist anywhere outside of North America.
But change is on the horizon. Recently, the National Association of REALTORS®, which defends the brokerage community, reached a proposed settlement for $418 million in damages and agreed to eliminate several rules on brokerage commissions. What does this rule change mean for you? Well, it means that the days of sellers footing the bill for buyer broker services may soon be over. Instead, if you want guidance in your home search and purchase process, you'll have to pay for it out of your own pocket.
So, how does this impact you directly? Let's break it down:
For Home Sellers
Sellers will only be responsible for paying the seller's agent fee. This shift could potentially save them 2.5-3% on the home sale. That's money back in their pocket that they can put towards their next home.
For Home Buyers
You now have the power to decide and pay for the guidance you need directly with a buyer's agent. This puts you in control of your home buying journey, allowing you to invest in the services that matter most to you.
As buyers, you'll now have to decide with your wallets whether you want buyer representation at a fee. This will be an additional cost to an already expensive purchase, something new to factor into your budget.
This change will not only force competition but also compel innovation within the real estate industry. And that's where Nuhom comes in.
For years, Nuhom has been ahead of the curve, offering buyer agent commission fees of nearly 1% (compared to the traditional agent’s 2-2.5% fee) while providing top-notch services. As the industry shifts, we're ready to lead the way, combining AI technology with human touch to give you a personalized and empowering home buying experience that is more affordable.
Our model will always prioritize delivering the best possible experience to home buyers. That's why we will continue to offer up to a 1% rebate to home buyers if a cooperative commission is provided on the deal. If the seller does not offer a cooperative commission, Nuhom would charge you, the buyer 1% of the transaction purchase price.
This 1% fee, compared to the traditional agent fee, is significantly lower than industry standards. While offering you choice, guidance, and the confidence you need to buy your home, nothing changes in how we operate today. We still provide on-demand tours, pricing guidance as needed, and the ability to start offers when you’re ready.
Nuhom will continue to understand your needs and educate you on every aspect of the home buying process, from what to look for in a home to financing and ultimately ownership. We believe that self-empowerment is key during this important decision-making process, and we're here provide this and to support you every step of the way.
So, as the industry hits the reset button, know that Nuhom is ready to help you on your home buying journey with a stress free digital experience with the help of agents as needed. As a company we are continuing to innovate and improve the experience we give you. If you'd like, please follow us here for more on that!
If you have any questions, please connect with me here.
Happy home hunting!
Thank you!
Rishi Palriwala
Nuhom CEO