New rules.

You may have heard about the court ruling that went into effect August 17th prohibiting brokers from cooperating to set their commission rates and providing more transparency and security for homebuyers as well as sellers. We take a look at what this means on the ground.

CHIC (Pearl)

Under the new rules, every National Association of REALTORS® (NAR) agent is required to sign a Buyer Representation Agreement formalizing the relationship between parties before touring a single property. Additionally, properties listed via a Multiple Listing Service (MLS) are no longer permitted to include an offer of compensation to the buyer’s agent in any form or fashion. Buyers can still accept concessions from the seller, such as offers to pay closing costs, and they can still negotiate with sellers to have them pay all or a portion of their agent’s compensation.

GEEK (Kevin)

Like Pearl mentioned, under the new rules, properties on an MLS can’t include an offer of compensation to the buyer’s broker. However, some services allow sellers to communicate to buyer agents that they are open to making concessions. Concessions are generally a credit to the buyer at closing to use for whatever they need — paying closing costs, paying their agent, or covering unexpected repairs. Sellers can also negotiate with the buyer over paying the listing broker’s compensation. This can be in addition to or in lieu of other requests for concessions.

The new starter home?

More than 1,400 ADUs have been built in San José over the past five years, and thanks to a new law, they can now be sold as separate condo units. Spotlight explores how this new law could change the definition of “starter home.”

More bang for your education buck.

A new study takes a look at the value of higher education by exploring the rate of return from four-year universities and community colleges. As you’d expect, a degree from Stanford will pay for itself. But for low and moderate income students, San José State and De Anza College are viable options. The Mercury News has more.

New laws for the new year

At a recent economic seminar with the Silicon Valley Association of Realtors (SILVAR), we learned about changes to real estate law beginning January 1st. We’ll have a full update next week, but in the meantime, let’s focus on four new policies…

CHIC (Pearl)

Under current law, you’re allowed to build an ADU (aka Accessory Dwelling Unit) based on your lot size and zoning regulations in your particular city. Starting in the coming year, you’ll be able to sell an ADU with your lender’s consent and other additional restrictions. Even better, the limit for small real estate claims will jump from $10,000 to $12,050!

GEEK (Kevin)

Starting next year, the environmental hazard information you receive from realtors will have new additions about sea level rise, wildfires, and climate change. Also, if a home has been owned for less than 18 months and has a major renovation, the seller not only has to disclose the changes they made and contacts of subcontractors but also the status of all permits.

Shop ‘til your thumbs drop!

According to an annual survey from the National Retail Federation, 200.4 million people did some shopping from Thanksgiving Day through Cyber Monday. That’s nearly 4 million more than last year and 18 million more than expected. Most of the increase was among online shoppers, who totaled 134.2 million. But Small Business Saturday drew a majority of retail activity ($59M) to brick-and-mortar stores. Get more numbers from the NRF report.