• NAR Settlement - Home Buyer Change Explained,David Campbell, Realtor

    NAR Settlement - Home Buyer Change Explained

      The National Association of Realtors Settlement has created a change on the  buyer side of things. This change is nationwide, not brokerage or state specific. Now, all buyers who would like to tour a home with their broker must sign a buyer representation agreement with their agent PRIOR to being able to see the property. In the past, a buyer could contact a Realtor and request a showing without signing this. These buyer agreements are not new. A lot of agents have used them for years. Now, however, they are mandatory with everyone.   Going forward, the new license law requirement is that a buyer agreement must be signed PRIOR to any showing taking place. The agreement clearly outlines the compensation paid to your agent. Typically, the seller will offer payment to the buyer’s agent just like in the past so that it is easier for the buyer to buy. However, if a seller is only offering partial or no compensation, the buyer will be responsible for the remainder.   The changes on the buyer and seller side of things may leave you with questions on how they will work in practice. I work everyday in the Dayton housing market and would be happy to discuss how it all works. 

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  • NAR Settlement - Seller Side Explained,David Campbell, Realtor

    NAR Settlement - Seller Side Explained

    Have you heard of the National Association of Realtors Lawsuit? If you are buying or selling real estate stay tuned, you’ll want to hear this. It resulted in a class action suit and settlement that arose out of commission disclosure issues which resulted in accusations of anti-competitive behavior within the industry.   The settlement mandates changes to the buy and sell side of each transaction. Historically, for a seller to have their home advertised in a multiple listing service the seller was required to offer compensation to a Buyer’s Agent. It could be as little as a single dollar but it HAD to be something. The new rule  does not require any compensation from the seller to help the buyer purchase. However, sellers may still offer compensation to assist the buyer’s purchase as traditionally done. Doing so lowers the barrier to entry and attracts more buyers.    In an effort to further provide transparency, listing contracts have been revised to more clearly identify how the commission fees are being distributed. There is also a change on the buyer side as well that we will touch on next week. 

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  • Real Estate Capital Gains,David Campbell

    Real Estate Capital Gains

    Throughout my real estate career of helping clients buy and sell in the Dayton, Ohio area I’ve been asked this a lot, “Do I have to pay capital gains when I sell my real estate?" If it is your primary residence, vs an investment property,  the government cuts you some slack on gains that are taxed, provided your situation falls within a few provisions.  It needs to have been your primary residence for 2 of the last 5 years.  Also, you cannot have purchased it through a 1031 tax deferred exchange.  If you’re not sure what that is, then you didn’t buy it that way.  The 1031 allows you to swap investment properties to defer capital gains. Let’s say you purchased the home for 200,000 and sell it for 300,000. You profited (have gains of) 100,000.  However, if you are single, you are exempt from paying tax on gains up to 250k. If married filing jointly, you are exempt from paying tax on gains up to 500k. In this example, single or married, you are below the threshold and would not have to pay capital gains.  Further, you get to reduce your gain by some costs of the sale like the amount of commission you paid, improvements to the property, attorney fees, and inspections. There are some nuances involved but these are the basics. Want to learn more from your friendly neighborhood realtor? Just reach out!

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