As I am sure you have heard in the news recently, last week on March 15, 2024, the National Association of Realtors (NAR) announced the resolution of a settlement with home sellers who alleged unfair commission practices and mandatory compensation for buyers' agents. This settlement follows an extensive and expensive legal dispute for the NAR, prompting inquiries from buyers and sellers regarding its implications for future real estate transactions. It is important to note that these changes are expected to take effect by mid-July 2024 and are still subject to court approval. Key Takeaway of the 2024 NAR settlement: The National Association of Realtors (NAR) will pay $418 million over the next four years to conclude legal disputes. This settlement addresses claims against the NAR, state and local Realtor associations, association-owned multiple listing services (MLS), brokerage firms with NAR member principals and sales volumes under $2 billion in 2022, and over a million individual NAR members, agents and brokers. The multiple listing service (MLS) system will no longer allow offers of broker compensation, shifting negotiations to occur privately between consumers and agents. Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example—concessions for buyer closing costs). This change will go into effect in mid-July 2024. Requirement for all agents to have a written representation agreement or an Exclusive Buyer's Agency Agreement with their buyers, in states that allow, like New Jersey. This change will go into effect in mid-July 2024. How did we get here? The Sitzer-Burnett lawsuit, a class-action case initiated in Missouri federal court by a coalition of home sellers against the National Association of Realtors (NAR) and various defendants such as Anywhere, Berkshire Hathaway HomeServices, Keller Williams, and RE/MAX, alleged that real estate commission rates are excessive, buyer's agents are overcompensated, and NAR's Code of Ethics, MLS Handbook, and the defendants' practices contribute to inflated commission rates. During the October 2023 trial, the plaintiffs specifically contested cooperative compensation, where a listing broker offered compensation to the cooperating broker. While NAR presented evidence supporting the benefits of cooperative compensation for consumers and emphasized its rules against anticompetitive actions to promote a free market and competition, the jury ruled in favor of the plaintiffs. NAR believes this decision was influenced by legal errors in the judge's instructions that overlooked the procompetitive advantages of NAR's policies and cooperative compensation practices. How does the settlement affect home seller and home buyers? This settlement would preserve the choices consumers have regarding real estate services and compensation. After the new rule goes into effect, listing brokers and sellers could continue to offer compensation for buyer broker services, but such offers could not be communicated via the multiple listing service (MLS). How will buyer brokers get paid now? The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to: Fixed-fee commission paid directly by the buyer. Concession offered from the seller at closing to the buyer broker, if offered but not required. A portion (%) of the total listing broker’s compensation is paid by the seller at closing as it has been in the past and current structure, if offered but not required. Compensation would continue to be negotiable for both buyers and sellers and should always be negotiated between agents and the consumers they serve. What the National Association of Realtors Says The National Association of Realtors (NAR) asserts that although the settlement is deemed the most favorable course for consumers and real estate practitioners, it refutes any misconduct allegations. The organization underscores the customary practice of a collaborative commission split between sellers' and buyers' agents as a well-established industry norm. Despite maintaining innocence, securing agreeable settlement terms offers a constructive way forward to safeguard professional integrity and consumer options. Nykia Wright, the NAR's interim CEO, has articulated that prolonging litigation would adversely impact members and their small enterprises. Expected Impact on the Real Estate Industry While headlines may suggest that the recent developments could impact home affordability for buyers and the intention was to decrease home prices, these narratives are likely fleeting and sensational. It is essential to recognize that home values are primarily influenced by market fundamentals such as supply and demand, location, property condition, and recent sales data, among other factors, and agent commissions have no effect on determining property values but are an additional cost to home sellers. Some argue that the traditional commission structure has historically facilitated buyer representation by reducing upfront costs and broadening the pool of potential buyers. The seller typically bore the commission responsibility for both their listing agent and the buyer's agent, enabling buyers to consider properties at higher price points. Discussions on commission structures and buyer representation may evolve, potentially increasing awareness of the value of professional representation for buyers. However, the fundamental nature of the client-agent relationship and transaction processes is expected to remain largely unchanged and I feel this is a positive move that provides transparency to the industry as well as an opportunity for sellers to save money on the total sale. Conversely, it transfers additional costs to buyers who may now need to pay their agent an agreed-upon fee at closing if they choose to be represented by one. In the short term and with the current market conditions of high home prices, interest rates at or above 7%, and limited inventory this may create another layer of difficulty for home buyers to secure a home with the cost of representation now being an additional closing cost if a seller does not choose to offer a concession for that cost on behalf of the buyer. Commission fees have always been and will continue to be negotiable, despite a standard market-determined percentage guideline or what society has deemed to believe is a required "6% fee". These fees are typically agreed upon between sellers and their listing agent and a portion of that total is shared with the buyer side agent, rather than a fixed figure. While there are cost-effective options in the market and always will be, it's crucial to compare the level of service and knowledge provided as well as the value received for both parties. As with any service industry, quality often aligns with price. Buyers seeking representation when purchasing a home will now need to exercise some research, pros and cons comparison, and caution to ensure their needs are met effectively. Buyer's agency is a valuable asset in New Jersey, as not all states offer this representation, but as with any service, not all consumers need or will need agent representation both on the buying and selling side. For personalized insights on how the NAR settlement may affect you as a buyer or seller in New Jersey, feel free to reach out with any questions. I am here to address your concerns and provide clarity on what to anticipate in light of these changes when the time comes or when you are ready.

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Reshare of an original article by Marni Mervis of Struktr Studios Wait a minute, there’s a difference between architectural and real estate photography? Yes. 100% TLDR:  Architectural photography and real estate photography are not the same. Architectural photography is a time-intensive process that tells a story, utilizes styling to showcase lifestyle, and showcases design. Real estate photography on the other hand uses wide-angle lenses to focus mostly on the size of rooms. Do Real Estate and Architectural Photography Look Different? So you might ask, is there a visual difference between Architectural photography and real estate photography? Yes.  Real Estate Photography: Typically real estate photography is shot with a wide-angle lens to emphasize the size of a space. This can sometimes lead to the distortion of objects and furniture, sometimes creating confusion of scale.  The green pillow in the foreground is distorted by a wide angle lens making it appear longer than its actual square shape. Architectural Photography: Architectural photography will often feature varied composition and depths; a shot of the entire room, vignettes, detail shots all of these are part of great architectural photography. Architectural photography focuses on design elements, how spaces flow into one another, the way light interacts with the space, the way the architecture communicates with or informs the environment around it, and the overall emotional pull of a space; all of which lend themselves to the wider array of compositions - and thus storytelling. This architectural photos utilizes a person (or ghost) to provide life and context in the space, as well as showcase how the room’s design highlights the Manhattan built environment and views. The Goal of Real Estate Photography vs Architectural Photography Let’s talk about the purpose of either type of photography.  Real Estate photography: Real estate photography is used to sell a home. Seems pretty straightforward, right? These photos show potential buyers how big rooms are and provide a general idea of the home’s floor plan. That said, the photos’ lifespan are only as long a as home remains on market. In a hot market that might only be a couple of days. In a slower market that could be a couple months. The goal of real estate photography is provide a general floor plan to get the house sold. Architectural Photography: On the other hand, as an architectural photographer, when I shoot for architects, interior designers, hotels, or restaurants the purpose these photos is 1) For their portfolios - to showcase to prospective clients, submit for future RFPs 2) Marketing and branding - through photos hospitality establishments can entice and connect with clientele and designers can showcase who they are, what principles define their designs, and what kind of lifestyle their work promotes  3) Publicity - designers and hospitality establishment will often seek to gain publicity in magazines (print or online), and with the right images that tell the right story architects and interior designers and hotels can earn press, getting their name and work out to expansive, new audiences. These types of images ideal for press are not only high-quality, they’re stylish, editorial in nature. They showcase lifestyle and elicit an emotional response from the viewer. Architectural photography typically has a lifespan of a year when it comes to something like publicity, and many more when it comes to portfolios and marketing purposes. Architectural photography can have multiple goals like branding. This hotel shoot showcases a lifestyle, giving travelers an idea of the hotel’s vibe. How Long Is Each Kind of Photoshoot? Real Estate Photography: I was recently speaking with a Los Angeles Realtor friend of mine who said she prefers no more than one, maybe two shots of a room. Otherwise the real estate listing gets too bloated. Real estate photos are concise and typically follow the same pattern, it’s for this reason real estate photoshoots usually happen within a 1 or 1.5 hour time frame. Going back to the idea of photo lifespan, because real estate photos are typically short-lived, they are more standardized in look and process, and thus less time devoted to their creation. Architectural Photography: Architectural photography goes back to the idea of storytelling. It’s important for the architectural photographer to be able to pinpoint the way light travels within the space throughout the day (e.g. the most ideal times to shoot each room). A detailed shot list will also help the architectural photographer develop the designer or architect’s visual story. Styling the space adds another time element to architectural photoshoots. The photographer, or photo stylist (depending on the size of the shoot), will move through the space reconfiguring furniture for the ideal composition, adding accessories to enliven the space, creating a lifestyle to reinforce the narrative. A restaurant can be a half day or full day shoot depending on scope of the project. A typical Los Angeles home will often be a full day photoshoot. A hotel will be a multiple day photoshoot. Are Real Estate and Architectural Photography Lit The Same? No, the two types of photography are lit in different ways. Real Estate Photography: Real estate photography will typically turn on all all the lights within a home when photographing a space. Again, this goes to the idea of selling the home and showcasing just how many light sources are in a house. Traditional lighting can often colorize photos in unwanted ways, create glare, or cast unwanted shadows. Architectural Photography: Architectural photography is traditionally shot with natural light or professional lighting in order to create a photo that’s evenly lit, or one that takes advantage of unique natural lighting moments intended by the architect. That means architectural photography is typically photographed with all artificial light sources in the space (light switches lamps, chandeliers, etc)  in space turned off.   

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When it comes to buying or selling a property, having a trusted real estate agent by your side is essential. But with so many agents out there, how do you know which one to choose? In this blog post, we will discuss what to look for in a trusted real estate agent and the top three ways they can help you. If you're looking to buy or sell a property, the right Realtor can be an invaluable resource for you. Especially, one who has an in-depth market knowledge and a well-defined process that can help you achieve your goals and navigate the complex buying or selling process. By hiring a Realtor, you can alleviate the stress and risk off your plate and benefit from their expertise in negotiating the transaction and all its phases. What are the top ways a Realtor can help you when hiring one? Realtors are skilled at listening and understanding your interests during the transaction process. Their role is to set the right expectations for you before, during, and after the sale, ensuring that you get the best outcome in the short and long term. They can provide valuable insights into the market and help you make informed decisions to achieve your desired results. In addition to their expertise, Realtors have access to a vast network of resources that they can leverage to assist you. They can provide you with a list of reputable lenders, inspection companies, attorneys, accountants, financial planners, home improvement professionals, and more. They are also well-versed in all paperwork, contracts, addendums, and legal aspects of the transaction, and they can walk you through each step of the process, ensuring that you understand everything and are comfortable with each decision you make. It's important to remember that hiring a Realtor is a service-based industry, no different from hiring a mechanic, plumber, electrician, or lawyer. So, it's essential to choose the best one that meets your needs and wants. With their expertise, resources, and process, Realtors can help you achieve your real estate goals while making the buying or selling process as smooth and stress-free as possible. What characteristics should you look for to find a trusted agent?  Someone who is an advisor over a salesperson. When it comes to buying a home, finding the right agent can make all the difference. It's not just about finding someone who is professional, ethical, and trustworthy, but also someone who truly has your best interests at heart. In an industry where many agents are simply looking to close deals and move on to the next one, it's important to work with someone who values the relationship with their clients above all else. A truly valuable agent will never pressure you into buying a home just for the sake of making a sale. Instead, they will take the time to understand your unique needs and goals and work tirelessly to help you find the perfect home for you and your family. This type of approach can lead to the best possible outcome in your home purchase and ensure that you feel confident every step of the way. At the end of the day, you are the ultimate decision maker, and a good agent should act as your coach, guiding you through the process and providing expert advice and guidance along the way. You should never feel pressured or rushed, and your agent should always be transparent in their dealings with you. By working with an agent who truly has your best interests at heart, you can rest assured that you are making the right decisions for yourself and your family. Someone who understands how a home is put together. It's important to have an agent who not only knows how to sell homes but also understands how homes are put together and function. Many agents lack this knowledge, which can result in them not being able to explain why one home is better than another or identify potential issues that could impact a home's durability in the short and long term. While you will have the opportunity to do inspections and due diligence, it's important to recognize that inspections are only visual. Having an agent or team who is well-versed in construction can be a significant asset to you. By working with an agent who deeply understands how homes are constructed, you can gain valuable insights into the quality of a home and identify any potential issues that may arise in the future. As a homeowner, you will be responsible for any issues and fixes that may come up after the sale. Having a construction-savvy agent or team by your side can be a game-changer, providing invaluable insight into a home's short-term and long-term durability. After all, as a homeowner, you're responsible for any issues or fixes that arise, so you want to make sure you're getting the best available home and working with someone who will be there for you before, during, and after the transaction. Relationship over Transactional Business Mindset/Model. In the world of real estate, there is often a lot of focus on awards, rankings, and volume of homes sold. However, what is often overlooked is the type of service that clients are actually receiving. It's important to remember that these accolades don't necessarily equate to good service. As a homeowner or buyer, you deserve to work with someone who values relationships over transactions. A real estate agent who prioritizes building relationships will have your best interests at heart and will take the time to understand your unique needs and desires. They will work tirelessly to ensure that the home you buy is the right one for you and your family, and that you are fully prepared for the journey ahead. On the other hand, an agent who is purely focused on transactions and volume may rush you through important parts of the process, leaving you unprepared for any issues that may arise after closing. This could ultimately leave you responsible for any costly repairs or renovations. In short, it's essential to choose a real estate agent who puts relationships first. By doing so, you can be confident that you will receive the high-quality service and support that you deserve throughout the entire buying or selling process. Someone who is helping you understand the myths & misconceptions that exist in the industry.   The real estate industry can be overwhelming with the amount of information and advice out there. However, not all of it is accurate or beneficial to you as a buyer or seller. Many of these myths and misconceptions are self-serving and put out by those who are only interested in making a commission. It's crucial to be aware of this and work with an agent who is committed to providing you with accurate information and helping you make informed decisions that are in your best interest.   At the end of the day, purchasing a home is a significant investment that can have long-term consequences. You want to work with an agent who listens to your needs, sets realistic expectations, and helps you come up with a game plan that is tailored to your unique situation. An agent who is transparent and trustworthy will help you navigate the buying or selling process with confidence while avoiding any myths or misconceptions that could lead to regret in the future. Don't settle for an agent who is simply looking to make a quick sale. Look for someone who is committed to providing you with a valuable service and a successful outcome.   Can a Realtor connect you with financial experts?   Buying a home is a significant financial investment, and it's essential to have a clear understanding of your financial readiness before starting the process. That's why it's important to work with a Realtor who can connect you with financial experts who will help you make informed decisions for your short and long-term financial success. Contrary to popular belief, getting pre-approved for a mortgage should not be your first step. Speak with a financial advisor who can assess your financial readiness, review your budget, optimize financing options, and provide advice on managing your finances. This way, you can make confident decisions based on your unique financial situation. A Realtor who values your long-term financial success will work with you to connect you with trusted advisors who have your best interests at heart. Don't settle for self-serving advice from lenders or agents who prioritize their commission over your financial well-being. Work with someone who will go above and beyond to provide transparent and objective advice and help you make the best decisions for your financial future.   What type of specific home-buying advice can a Realtor provide?   Here are some suggestions and advice that I provide to my clients to help them prepare for their home purchase and to debunk some common misconceptions about homeownership:   Your primary residence is not necessarily an investment. While owning a home can provide potential appreciation and equity over time, it should not be viewed as a guaranteed investment. A primary residence is typically used for personal use and enjoyment, rather than generating income or profit. It's important to consider personal factors and ongoing expenses such as taxes, maintenance, and repairs, along with economic downturns and housing market changes. Ultimately, the decision to buy a home should be based on individual circumstances and goals.   Owning a home is not always cheaper than renting. While owning a home offers long-term financial benefits, there are also many upfront and ongoing costs associated with homeownership that can make it more expensive than renting. The decision to rent or buy ultimately depends on individual circumstances, financial readiness, lifestyle, and future plans.   The real estate market is not always going up. The real estate market is subject to fluctuations, just like any other market. Economic conditions, interest rates, and supply and demand all play a role in its direction. Before making any investment decisions, it's important to conduct thorough research and analysis. While real estate values tend to increase over time, home values have declined during several periods in history, including the Great Recession.   Not all agents and lenders have your best interests in mind. Unfortunately, some agents and lenders prioritize their own interests over those of their clients, which can lead to conflicts of interest and unethical behavior. To avoid this, home buyers and sellers should do their due diligence by researching reputations, asking for references, and interviewing multiple agents to understand their business models and options. Don't hesitate to terminate the relationship if an agent or lender is not acting in your best interest.

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What is a Loan Estimate? A Loan Estimate is a document that lenders are required to provide to borrowers within three business days of receiving a loan application. The Loan Estimate took effect on Oct. 3, 2015 and is a three-page form that you receive after applying for a mortgage that tells you important details about the loan you have requested.  The purpose of the Loan Estimate is to provide borrowers with an estimate of the key terms and costs associated with their mortgage loan. The Loan Estimate is a standardized document that includes information such as the loan amount, interest rate, monthly payment amount, and any upfront costs associated with the loan, such as origination fees, appraisal fees, and title insurance. The document also includes information on whether the loan has any features such as prepayment penalties or balloon payments. Why is it Important to Understand as a Buyer? Understanding the Loan Estimate is important for several reasons. The main one is that it allows you to compare offers from different lenders and understand the costs and terms associated with each offer. This can help you choose the loan that is right for your financial situation. Second, the Loan Estimate helps you avoid surprises at closing. By providing you with an estimate of the costs associated with the loan upfront, you can plan your finances accordingly and avoid any unexpected expenses. Third, the Loan Estimate is a legally binding document. Once you receive a Loan Estimate from a lender, the lender is required to honor the terms and costs outlined in the document. This provides you with a level of protection and ensures that you are not subjected to any last-minute changes or fees. How to Read & Review a Loan Estimate When you receive a Loan Estimate, it is important to review it carefully. Here are some tips to help you read and review a Loan Estimate: Check the loan amount and interest rate: Make sure that the loan amount and interest rate are what you expected based on your discussions with the lender. Review the estimated monthly payment: Check that the estimated monthly payment is affordable and fits within your budget. Look at the closing costs: Review the closing costs carefully and make sure you understand what each fee is for. If you have any questions or concerns, don't hesitate to ask the lender. Pay attention to loan features: Check whether the loan has any features such as prepayment penalties or balloon payments that may affect your ability to pay off the loan. Compare offers from different lenders: If you have received Loan Estimates from multiple lenders, compare them carefully to determine which loan offer is the best fit for your financial situation. A Loan Estimate is an important document that borrowers should review carefully when buying or refinancing a home. By understanding the Loan Estimate and the costs and terms associated with the loan, you can make an informed decision and avoid any surprises at closing. When you receive a Loan Estimate, the lender has not yet approved or denied your loan application. The Loan Estimate shows you what loan terms the lender expects to offer if you decide to move forward. If you decide to move forward, the lender will ask you for additional financial information. See a sample Loan Estimate form with interactive tips and definitions

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As a buyer and/or seller , I'm sure you've heard of “love” letters as a tactic in an attempt to stand out to a seller, especially in hot markets with low inventory and bidding wars. To entice a seller to choose their offer, buyers sometimes write letters to describe the many reasons why the seller should “pick them” over the competing offers & buyers.    While this may seem harmless, these letters can actually raise fair housing concerns & could open real estate professionals and you (the buyer) to fair housing violations as they often contain personal information that reveals characteristics of the buyer - such as race, religion, or familial status, which could then be used, knowingly or through unconscious bias, as an unlawful basis for a seller’s decision to accept or reject an offer, hence putting a seller in an uncomfortable position that may make the letter do the opposite of the intention - have the seller pass on your offer! Using protected classes/characteristics as a basis to accept or reject an offer, as opposed to price and terms, would violate the Fair Housing Act. i.e.: Consider that writing to the seller that they can picture their children running down the stairs on Christmas morning for years to come in the house.  This statement not only reveals the potential buyer’s familial status but also their religion, both of which are protected classes/characteristics under fair housing laws.   Here are some best practices to protect yourselves from fair housing liability when submitting & reviewing offers:  There are so many areas in real estate that are confusing so educate yourself by speaking to your Real Estate Agent and/or an attorney about the fair housing laws and the pitfall of buyer letters which may hurt, not help, you in the purchase. Real Estate Agents cannot or should not deliver buyer letters & advise others that no buyer letters will be accepted as part of the MLS listing. A seller's decision to accept or reject an offer should be based on objective criteria only, not personal criteria.  If you insist on drafting a buyer letter, an agent cannot help you draft or deliver it The National Association of Realtors (NAR) cannot tell a buyer not to write such a letter, but a Real Estate agent could refuse to present it to the seller.  Is the practice racist or discriminatory? These letters actually can be construed to be racist or discriminatory. Real estate agents cannot answer questions about neighbors and what they’re like. It could be viewed as answering questions pertaining to the cultural or racial makeup of the area, which is irrelevant and in the past was a way of keeping minorities clear of certain areas. In one of these letters, a potential buyer could write something giving the seller an indication of their religion or race which could cause bias in the seller. If the seller indicates the purchaser was selected based on the letter, the law was violated.  

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One of the factors underlining the American Dream consists of purchasing & officially owning a house. As only a small percentage of the middle-class population can outwardly afford to purchase a home without applying for a mortgage the mortgage market has evolved & changing the real estate industry as a whole.   America's First Loan It started back in the 1920s when at that time lending options were limited & almost nonexistent. The first loans made available to the public only allowed a 5-year term & required a 50% down payment which included a balloon payment – a larger one-time payment owing the remainder that is due, if the loan was not paid back by the maturity or due date.   The Implementation of the Mortgage The concept of home mortgages was foreign to the majority of Americans before the 1930s as at that time approximately 40% of families owned their homes & those who weren't able to or didn't have the funds to buy a house were outright out of luck. It was during the Great Depression when insurance companies, not financial institutions, implemented the idea (of a mortgage) as a way to allow loans to people who needed money due to the difficulties of that time. This was offered to be predatory in nature as if a borrower failed to keep up with their payments, which many did, the insurance companies would gain ownership of their property.    With many not being able to pay back the loans during such a difficult time, as part of the New Deal of 1933, President Franklin D. Roosevelt took charge of the real estate market due to the foreclosures of hundreds of thousands of homes at that time. It started with the buying of 1 million defaulted mortgages and changing them to fixed-rate, long-term loans where borrowers had the option of paying back a 15-year mortgage & eventually a 30-year mortgage option was offered. The combination of this & extended loan terms helped & encouraged more Americans to pursue their homeownership goals & FDIC-insured deposits made funding these “modern” mortgages easier for banks as well.   The Housing Boom The U.S. homeownership rate skyrocketed from 44% to 62% between 1940-1960. Americans were not only financially capable of buying a home, but the industry had the support of the newly formed Federal Housing Administration (FHA) & Veterans Administration (VA). New legislation in the 1960s & 1970s ensured that all borrowers regardless of race, class, etc. could purchase a home in desirable locations.   I hope this helped in better understanding mortgages & their history to give you some insight into where loans started to what they are today. If you are thinking about purchasing a home & will be using financing, learn from history & be sure to do your research, ask plenty of questions & due diligence to fully understand your loan & the business of loans.   Choosing a mortgage is more than just an interest rate, it’s also about getting a loan that aligns with your present & future goals & needs.

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