YFP REI 118: Navigating the NAR News: Insights for Real Estate Investors

Hosts David and Nate break down the NAR settlement and what it means for the future of buying and selling homes.

Episode Summary

On March 18, 2024, the National Association of Realtors (NAR) announced it had reached a $418 million settlement in an antitrust lawsuit. NAR, which represents over one million Realtors, agreed to put in place a new set of rules, including changes to the typical 6% of the sale price paid by sellers toward a fee split between the buyer’s agent and seller’s agent. Hosts David Bright and Nate Hedrick, who is a licensed real estate agent himself, break down the ramifications of this ruling and what it means for the way Americans buy and sell homes.

About Today’s Guests

Nate Hedrick is full-time pharmacist by day, husband and father by evening and weekend, and real estate agent, investor, and blogger by late night and early morning. He has a passion for staying uncomfortable and is always on the lookout for a new challenge or a project. He found real estate investing in 2016 after his $300,000+ student loan debt lead him to read Rich Dad Poor Dad. This book opened his mind to the possibilities of financial freedom and he has been obsessed ever since. After earning his real estate license in 2017, Nate founded Real Estate RPH as a source for real estate education designed with pharmacists in mind. Since then, he has helped dozens of pharmacists around the country realize their dream of owning a home or starting their investing journey. Nate resides in Cleveland, Ohio with his wife, Kristen, his two daughters Molly and Lucy, and his rescue dog Lexi.   

David Bright is a pharmacist with a heart for teaching. He’s been a full-time professor since 2009 with a passion for implementing and improving pharmacy services. Themes of “implementing and improving” in the pharmacy space are quite similar to themes of “building and fixing” in real estate, which has been a growing hobby for David and his wife, Heather, who bought their first house more than ten years ago. That fixer-upper house became a live-in house flip, which they sold a few years later, only to repeat the process with their next house. When David and Heather got sick of perpetually living in a construction zone, they pivoted to fixing up rental properties in West Michigan, where they now live. 

David invests in real estate as a way to bring greater diversity to financial planning and to fund memorable life experiences with family and friends.

Key Points from the Episode

• Real estate settlements and their impact on pharmacists and real estate investors. [0:06]
• Real estate commissions and potential changes. [3:13]
• Real estate commissions and funding sources. [8:19]
• Real estate agent commissions and potential impact on the industry. [11:40]
• Real estate agent fees and value. [17:17]
• Real estate industry changes and potential impact on buyers. [20:58]

Episode Highlights

“But what the NAR has basically said is that we’re going forward, especially on the buyer side, because again, what the allegation was is that the sellers felt like they didn’t have a choice on offering a buyer side a commission.” – Nate Hedrick [7:23]

“I think we bring a lot of value to that equation. It’s difficult to convince people of that. If you hop on Zillow, you can see every house that’s available. And I think a lot of people assume that our job sort of stops at finding you a house. And so I think that’s going to be a tough, tough piece to help establish.” – Nate Hedrick [14:43]

“And what I worry about is that, in this transaction, the person with the money basically is the seller, the person who has held that house for a certain number of years, they’ve benefited from appreciation, and now they have some extra capital in that transaction. The person who doesn’t have extra capital most often is the buyer. And I just hope that buyers don’t get dinged by this, because they’re either not going to get represented in the way that they should be.” – Nate Hedrick [22:45]

“I think we won’t know the true effects of this until a few months even after that when when we start to see how the prices are affected, how it affects the buyer pool, how it affects sellers, things like that.” – Nate Hedrick [25:04]

Links Mentioned in Today’s Episode

• NAR Press Release
• Subscribe to the YFP Newsletter
• YFP Disclaimer
• Your Financial Pharmacist
• YFP Real Estate Investing Facebook Group
• Nate Hedrick on Instagram
• David Bright on Instagram
• YFP Real Estate Investing Website
• David Bright on LinkedIn
• Nate Hedrick on LinkedIn

Episode Transcript

Nate Hedrick  00:06

Welcome to the YFP Real Estate Investing Podcast. I’m Nate Hedrick.

David Bright  00:09

And I’m David Bright. We’re both pharmacists and real estate investors that believe that real estate investing does not have to distract from a meaningful career in pharmacy.

Nate Hedrick  00:18

Each episode, we share stories that educate and inspire pharmacists to leverage real estate investing as a part of your financial plan.

Nate Hedrick  00:30

Hey, David, how’s it going?

David Bright  00:32

Hey, good, thanks. How you doing, man? 

Nate Hedrick  00:33

Good, although it’s been a bit of a crazy week, slash weekend with everything going on. But that’s what we’re here to talk about today. Right? 

David Bright  00:42

Yeah, I know, we were like texting all weekend after this National Association of Realtors news broke with, you know, there’s a bunch of stories out there. So I was texting you have like, what’s actually going on since you’re a realtor? And I figure if I’m texting you for this kind of stuff, you know, I’m guessing that other people are wondering, as there reading all these headlines of the settlement that’s coming out. Like what what’s actually going on? Especially because some people are saying the sky is falling, some people are saying the real estate market will never be the same. There’s an impending crash coming. Like I’ve heard all kinds of stuff the last couple of days. 

Nate Hedrick  01:16

Yeah, if you’re on any sort of media, social or otherwise, it’s it’s kind of everywhere right now. Obviously, the news cycle is quick, though, I’m sure by the time this goes live, it will already be a thing of the past, right. But it is it has been blowing up quite a bit over the weekend. And it’s relevant to a lot of our audience, relevant to investors, to homebuyers. I mean, just about everybody.

David Bright  01:39

Yeah, and one of the things that we were texting about, and that we thought would be helpful to talk about is just to bring some context to this discussion, because one of the things that that we’ve thought is, this isn’t going to shake out quickly. It’s not like in a week we’re going to know what the new normal is. Like, this is going to take a minute to settle out. So particularly knowing that you bring a different perspective than I do, you’re obviously a realtor, you’ve got a very firm grasp on what realtors do in the modern era of buying and selling and all that. And I’m actively working on buying and selling a few different houses right now. In fact, we just closed on the purchase of a house we’re hoping to flip just the day before this settlement broke. So I don’t know if I should kicking myself or happy that I got that done right before the settlements. But between the two of us, I figure we’ll hold hopefully lay some context today.

Nate Hedrick  02:27

Yeah, I think that’s a good I think, again, there’s a lot of information out there. And so hopefully, we can give you just some of the facts rather than some of the opinions and just kind of give you some of the the information that you might need, so that you can watch things going forward with us and see where everything’s gonna shake out.

David Bright  02:42

Yeah, yeah. So, Nate, I know you’ve been following this closely. I know, you’ve talked about meetings and stories and everything that you’re reading. So I was hoping you could just from a pharmacist real estate investor standpoint, just can you zoom out and give us a 30,000 foot view of the settlements that happened a few months ago, as well as the settlement that happened in early March 2024.

Nate Hedrick  03:05

Yes, and I will try to give you the quickest version of this that I can, but it helps us start with how real estate agents get paid. If you’re not aware, real estate agents, realtors are paid on commission, right, they get a percentage of the home sale, that gets paid to a broker, and then the agent themselves actually gets a chunk of that. Typically, that money comes from the proceeds of the sale and is paid by the seller. So what is typically happened in the past is that when you’re listing a property, part of the listing agreement is to determine how much commission is going to go toward the listing agent and their broker, and how much money is going to go toward the buying agent and their broker. And that’s written up as the property is being listed. And then it’s advertised as part of the listing on the MLS on Zillow, on realtor.com, all those things have access to that that sort of advertised price. Well, again, several years ago, and throughout the past couple of years, there have been some some lawsuits basically against the National Association of Realtors, saying that this is essentially price fixing – that the NAR and they are agents, meaning every agent in the country, has basically been saying, well, you have to provide this compensation to the buyer, you don’t have any choice. And that and that the allegation is that they were colluding to basically fix that price. Right. So price fixing is a big deal. And that was the allegation that the National Association Realtors was basically saying you had to set it at 6% or whatever the number was, and you have to pay the seller and you have to pay the buyer and so on and didn’t give basically people the choice of setting that commission or not. And so that that lawsuit has been ongoing, it’s been been sort of a crazy fight back and forth about where everything stands. And what happened on Friday the 16th is that actually no the 15th, excuse me. What happened on the Friday the 15th is that the NAR decided to settle. Now as of this recording that settlement has not been approved by the court. That’s an important factor to that this is just what the NRR said they would do doesn’t mean that the court has approved that settlement. What they said is that we are not admitting any wrongdoing. We’re not saying we price colluded, but we’re agreeing to settle to stop this lawsuit, we’re going to pay out a whole bunch of money: $418 million. And we’re going to make some big changes. And we’ll dive into those changes in a moment, basically saying, we’re not saying we did anything wrong, but we’d like to stop being in this lawsuit. So we’re agreeing to bow out basically. And so that is the most condensed version of events that have led up to where we are right now.

David Bright  05:48

Okay, with that price, fixing this 6% Seems very common where the agent on the one side gets 3%, the agent, the other side gets 3% I think that those of us that have bought or sold a house have probably seen that on a settlement statement somewhere about that 3%. Sometimes it’s a little different, right? There are scenarios where, you know, investors that are doing high volume may negotiate with realtor to work at a lower rate, there may be a lower rate at a higher price point. Like there’s, there’s different things that may exist in different markets. But the 6% is, is obviously common. So one of the things that I’ve heard kicked around is, well, if there’s now going to be competition in this space, does that mean that that 6% is going to turn into five or four or three? It’s gonna save people money? Is this gonna cost people money? Or how does that all start to look? 

Nate Hedrick  06:37

Potentially. And it helps to get into some of the details of of what the NAR has agreed to do as part of that settlement. And I guess I’ll start here too,  the that six slash five slash for whatever it is, that’s always been negotiable. I think the the industry sort of standard has kind of been there. And that’s been the way to sort of lead these these discussions. But it’s, it’s always been negotiable. In fact, when we talk with our clients, it’s always a question of like, well, you know, we’d like to list your house, here’s the all the things that we’re going to do for you, so on and so forth, kind of give them the value proposition and then say, and, you know, we’d like to charge you this percentage, what do you think about that? Right, and we kind of have a conversation about it, and try to back up the the work that we’re going to do with the price that we’re charging to do it, right. But what the NAR has basically said is that we’re going forward, especially on the buyer side, because again, what what the allegation was is that the sellers felt like they didn’t have a choice on offering a buyer side a commission. And so at the end of the day, I said they’re going to do is that no, agents will no longer be able to advertise a buyer’s commission on the MLS or anywhere, really, they take that back, they can put it on their own internal brokerage website, but any of the public domain websites, basically, they’re not allowed to put up 3% for a buyer’s agent, you know, bringing them to the table. And so there’s a lot of question about what that’s going to do in terms of driving down commissions or keeping them the same or making them more obscure, like what is that going to look like going forward?

David Bright  08:12

Yeah, you know, I’m used to seeing that especially on the seller side, you see the two commissions going out on settlement statement at the end. And then I’ve always been told when I work with a buyer’s agent, it’s free to me, right? Like I’ve heard things like that and in conversation so that I don’t have to like, particularly if first time homebuyer when I had never done this before, when I went out with an agent, it wasn’t like that first meeting, I had to put a check in their hand or anything like that, like, they would take me out and show me houses. And that was in good faith that we would hopefully eventually close something, and that agent would get paid. So are you expecting a business model where in order to be a buyer, they may have to make some sort of direct payment, or that could all look very different now?

Nate Hedrick  08:54

Yeah. I mean, so So you’re spot on, right? Because what you said about, you know, I know at some point, there’s going to be a payday, right? That’s because the the sellers were basically everyone was offering this, it would be the very strange it going back in the last, you know, since the 1990s, for there not to be a buyer’s commission advertised. And so if I’m an agent, and I’m starting to work with buyers, even if they’re maybe not that serious, even if they might be working with another agent, there’s still that prospect of like, hey, if I can get them to the point of getting an offer, if I can, you know, attach them to myself as a client. If I can just get to the table, eventually, there’ll be some sort of deal, and I’ll get some sort of payment, right. But now, if that is no longer a guarantee, buyer’s agents are going to have to have some sort of agreement in place that says, Look, I, I don’t like to work for free. So I need to have some sort of compensation. I got to build this in upfront now. Whether I don’t I don’t think there’ll be any situation where the buyer will have to pay that to the agent upfront. I think it’ll still be done as part of closing. I just think it’ll be a much more up obvious part of closing costs. And the question of where that’s going to come from is a big one, because the three people in that transaction that can pay for it are the seller, right? The proceeds from the sale of their property, which is how it’s always been done; the buyer, the person coming to the table, who is already struggling with finding a downpayment, and closing costs, and everything else that goes with it, or the lender, right? Or the lender is the one that’s providing all the funds for the mortgage, maybe there’s an opportunity for them to bring additional funds to the table to satisfy that buyer side of the equation. But it’s a big question of where that that funding is going to come from in the future. 

David Bright  10:36

Yeah, and so I’m thinking, as you mentioning, lender and seller, those would essentially mean that the buyers rolling those costs into the loan, right? Because if those costs are would go out, and so I’m thinking that if they’re not able to do that this can be particularly difficult for the maybe first time homebuyer or someone that’s looking to bring in a low down payment purchase, like if they’re looking at 5%, conventional or an FHA or VA or something like that, where they’re trying to buy with very, very little down. That just feels difficult. 

Nate Hedrick  11:05

Yeah and today’s regulations don’t allow, especially if you’re like an FHA, VA, USDA, government backed buyer, those loan products do not allow the the lenders to contribute toward commissions that you just it’s not part of it. You can’t you can’t bake those in, right. So it, it’s, it’s going to be a bit of a challenge unless we can get that changed in some way.

David Bright  11:30

Okay, okay. Well, that that’s definitely interesting, particularly for the low down payment scenarios. What about the sticker price and the total cost in the equation? You know, if I’m, if I’m a seller, listing a $200,000 house, do you think that this change is going to cause sellers to start listing properties lower or drag down housing prices? Because I’ve seen that as a, as one goal of this is maybe housing prices may come down from this?

Nate Hedrick  11:57

Maybe, right? So a big maybe. I think, so if we take this scenario, a step at a time, I think it’ll start to illustrate just how complicated this is. So if you’ve got again, the seller, this listing house at 200,000, or three months ago, they were gonna listed at 200,000. If you tell them that they have to pay 3%, less commission, right? They can list it for 3% instead of six, are they going to list the house for 3% less? Are they going to listen? It 200,000? Right? Just about every seller out there is going to try to push that price as much as they can. Right? But if the buyer, why wouldn’t you? But the natural question is Well, then, okay, is it now actually over inflating the price? Because not only does the buyer have to come up with the exact same amount they were coming up with before they have to find another 3% to pay for their own listing their own buying agent? Or are they going to go in unrepresented? Or are they going to have to negotiate down the price to basically cover their costs of that buying agent? Like, where’s that going to go? I don’t think you’re gonna get a situation where a bunch of agents are going to start working for free. So I see the only option options there become, you know, either very, very discount buying agents, which I think is a difficult road to follow, or prices have to come come down in some capacity to basically accommodate that, that that extra payment that the buyers have to come up with.

David Bright  13:18

Yeah, and that makes me think because you mentioned someone going in unrepresented, which in our world means, as a buyer, you don’t have an agent, you’re we’ve we’ve talked for many episodes about for sale by owners, and that’s relatively common. But with this theory that I don’t pay anything to the buyer’s agent, as the buyer, the seller has take care of that it’s free to me, there’s not a lot of people that go out there and try to be unrepresented buyers. Right? Do you think that that may start to become a thing if people perceive that they’re not going to be able to pay for a buyer’s realtor?

Nate Hedrick  13:55

Perhaps right, I think if you’ve got the the experience and the understanding of everything from negotiations, to inspections, to contracts to the loan processing and the title processing, like if you if you know, all that stuff, have you bought and sold multiple investment properties, let’s say or have worked as a real estate agent in the past, you might know that stuff inside and out. And yeah, it might actually be in your benefit to come up unrepresented. And then you can go to that seller and say, Look, I’m not I’m not asking for anything. I’m just gonna come by this house, I don’t need an agent. These are, these are the contracts and so on. I think that’s going to be really tough for first time homebuyers or people with less experience. I think there’s a ton of value and again, I’m admittedly super biased, right? Like as an as an agent that works a lot with buyer’s agents. I think we bring a lot of value to that equation. It’s difficult, though at times to convince people of that. If you hop on Zillow, you can see every house that’s available. And I think a lot of people assume that our job sort of stops at finding you a house. And so I think that’s, that’s going to be a tough, tough piece to help establish. 

David Bright  15:06

If people perceive the Zillow app to be like the eBay app where they just find a house, click “Buy It Now”. Right? If they think that’s as easy it is, I could, I could see a scenario where buyers think this is so easy, I could do it myself, particularly if they are first timers, and don’t have context for all the complexity in the process. So I feel like there’s probably something in the real estate investor space where there’s folks that have bought a few houses, and may understand that, yeah, I really do need help. Because this gets really complicated in a hurry, and especially when a situation gets really hairy. And then there may be investors that are thinking, you know, I’ve done this many times now. Maybe I should think about being unrepresented. Or maybe I should think about getting a real estate license myself. And I know, since you’ve made that jump, what would you advise people that are thinking about either going in unrepresented or getting their own real estate license?

Nate Hedrick  15:57

Oh, man, I get caveat. Right. Not a lawyer, not not financial not not financial advice. I should have probably said that, like 10 more times. Yeah, I don’t know. I think I think it’s a tough, it’s gonna be a tough time in the next six to nine months to be a new agent. I think, again, if you have the experience, and the know how I could see where going in unrepresented might be beneficial. I will tell you that even if knowing what I know, right, like, I bought a lot of properties helped with tons and tons of transactions. I still like having the backing of a brokerage behind you and making an offer, I will tell you, I never go in unrepresented again, I am an agent, obviously. So I have the brokerage behind me no matter what. But I never go in unrepresented. I’m always listing myself as an agent, which again, we have to disclose anyway. But I’m doing it through the brokerage, because it adds that extra layer of protection, I have the full backing of my brokerage when I’m making an offer. And like you said, if something goes south or gets hairy, I want to have that protection of of a bigger entity than me, helping me out with that rather than just, you know, me showing up and putting an offer on a property. So I could see more people wanting to do it, I think that there’s certainly going to be out there, they get burned by doing that. But there’s, there’s an advantage there too, if you don’t mind the extra risk.

David Bright  17:17

Yeah, and I’m trying to think pharmacists don’t love risk, right, we talk about that often. And so when you say if you’re okay, with that extra risk, I think a lot of people just got really nervous when you said that. So I’m even thinking out loud, if someone was to get a an attorney on their team to help with this process. You know, there’s probably other ways to mitigate that risk. But depending on the price point, it may be just as expensive or even more expensive to get an attorney on your team to review all these things versus a realtor on your team to review. And I know that that’s very apples and oranges. But even just from understanding the contract language out there that you can probably recite this stuff forwards and backwards of what section and paragraph things are in, right. So the familiarity that a realtor brings to the contract piece of it and all of those details.

Nate Hedrick  18:04

Yeah, and a lot of that, you know, you’re certainly paying for that work, I would argue that if you asked an a lawyer for the amount of time that an agent spends on an on an average transaction, you’re gonna be paying a whole lot more. Just because the the the hourly rate there is just so crazy. And the amount of work that we put in basically, it’s just part of the general transaction, answering questions, going through contract language, and then letting the the lawyer kind of sign everything at the end, it’s, it’s a bit of a different story.

David Bright  18:34

Yeah, then if, if we go back to everything is negotiable now where it didn’t used to be, I can also see the scenario where different realtors start offering up their services at different rates. And so you may see kind of rookie agents offering a lower rate than an experienced agent. Or you may say that, you know, I’ll list your house, and I will put it on the MLS for this, or I will list it, I will stage it and do professional photos, and we’ll have a drone, and we’ll have all these things that like, you know, if and you’ll pay more, I can see it almost becoming this kind of spectrum of services and rates, like who knows what could have materialized from that. But do you feel like there’s any of this you get what you pay for in the realtor space? Or is price not necessarily associated with value in the end? Or how would you discern that as a buyer?

Nate Hedrick  19:25

So I actually do think that this this is, first of all, that’s always been there, right? Like there’s always been the option of negotiating these things and paying a bit more for a more hands off model. I mean, I’ve seen agents out there that are listing agents who charge top tier commissions, but they have a moving company that comes for free with with the process. They have, like you said all the high quality photos or putting out like high color glossy books. Usually these are for like the very, very high end listings. But you’re you’re paying a premium for that, right, so that that’s still there. So where I think it will be interesting is I think you’ll see a shift where these agents that in the past could get licensed very easily, right, very low barrier to entry, and knew there was a guaranteed payday on the other end of the transaction. And basically, we’re just doing whatever they could do to get through it, I think those agents will become fewer and far, far between, because it’s going to be a heck of a battle if you’re a newer, inexperienced agent to convince a buyer, especially a buyer, that I bring value to this equation, right that my experience is worth something. Because in the past, you’re right, you could have you could essentially go to those people and say, Look, I’m free. And I’ve got a broker behind me and a team behind me, and I’m not going to cost you anything is what people used to say. And that no longer is the case. I think that’s going to be a an interesting piece with especially with newer, more inexperienced agents.

David Bright  20:57

I think we’ve already seen headwinds in the market where the transaction volume is way down from a few years ago, so and the number of realtors is way up, right. So if there’s fewer deals per realtor, which is also disproportionate, right, they are the big name realtors in any area that are going to drive a lot of traffic. And there’s a few folks that are just closing a few deals every year. So it seems like it’s gonna get harder for the lower volume agent or the new agent in the process, if they’re trying to, to make a living out of it. Maybe different if you’re an investor just doing your own deals. If you’re trying to make a living at it, that sounds tough.

Nate Hedrick  21:35

Yeah, I can even see a world where if you’ve got someone that’s really high power, right, like very, very high volume, let’s say they’re doing 100 transactions a year. Or better yet, let’s say they’re doing 100 listings a year and then running maybe 20 buyers, they might look at it and say, Look, this is an economy of scale, this is a game of the game of scale, I’ll run all my buyers for free. I’ll ask for nothing in terms of commission, and I’ll just wait for the listings to show up and then I’ll make the money on those instead. I could completely see that world happening.

David Bright  22:03

Yeah, I can see that, particularly if you’re helping those buyers find the house. And then as part of that deal, I get your listing, then, yeah, that that could definitely be a model or even, I’ll help you buy and I won’t charge anything, but then I’ll list and I’ll take 4% or charge a premium on the listing on the back end so that people can buy that second house to the lower down payment or something like that. 

Nate Hedrick  22:28

I think it’s gonna be really interesting to see what what shakes out of this, I think, I think what I hope doesn’t happen, right? Because I think if you go take a zoomed out look, right, that the the entity that first started this lawsuit is like a consumer advocacy group, right? They’re trying to benefit consumers. And what I worry about is that, in this transaction, the person with the the money basically is the seller, the person who has held that house for a certain number of years, they’ve benefited from appreciation, and now they have some extra capital in that transaction. The person who doesn’t have extra capital most often is the buyer. And I just I just hope that buyers don’t get dinged by this, because they’re either not going to get represented in the way that they should be. Or they’re gonna have to come up with extra funds when they’re already struggling to make ends meet and make these down payments happen. So I just, I, I’m eager to see how we can make this work in a way that doesn’t harm those buyers.

David Bright  23:25

Yeah, I know that investors tend to be better at dealing with the emotional side of things. But with your realtor hat on, I can imagine too, that you’ve seen buyers that have been so excited, they’re willing to overpay and they don’t care, they just have to have that house, right. And I know that as an investor, I’ve been guilty of that, too. I’ve walked through house, I’ve been like, this would be an awesome investment. And I try it. And I’ve had a really good realtor beside me say, Calm down, David, you need to you need to pay attention. You need to take a deep breath. And so that’s where too, I worry that buyers could without someone kind of having their back right there, may overpay and this could you know, the consumer advocacy side could really backfire. 

Nate Hedrick  24:05

I really hope that doesn’t happen. I think that there’s risk of that. I think that good agents that are out there, we’re going to try to prevent things like that, but it’s going to be a bit of a battle for that for a while. 

David Bright  24:18

So I know I mentioned a minute ago, we just bought a house like right before this all happened. You know, should I be scared? Or should I feel like we’re going to see things start to crash or where do you think this is? Do you think this is going to impact the market substantially in next few months?

Nate Hedrick  24:35

No, I think it’ll take its I think it’ll take its time, right. So we’re we’re not even at the point yet where the settlement has been approved. Right. So we are we are just days away as we’re recording this and a lot more information is going to be coming out here in the next couple of months. This settlement is not meant to go into effect until at least July anyway. So we’ve got again, some time before any of this this transpires and really makes a big change, I really don’t think it’s going to have a dramatic upfront effect. I think we won’t know the true effects of this until a few months even after that when when we start to see how the prices are affected, how it affects the buyer pool, how it affects sellers, things like that. I think that’s that’s when you’ll know more about how this might be affecting the market in general.

David Bright  25:21

Okay, so does that mean that if you have an investor that’s sitting there, and they’re like, I don’t know if I should get in now, should I wait? Should I definitely jump? Would you advise an investor client that, go ahead, jump on it, and this isn’t really going to shake anything up too bad? As long as you’re, you’re measured and looking for a good deal. A good deal is a good deal. 

Nate Hedrick  25:41

Yeah, absolutely. And remember, everything. Everything that we’ve talked about right is still actually in effect today, in terms of you can still negotiate on just about anything, you know, sellers have the option of offering nothing in commission, it’s certainly possible. All of these things have already been there, it’s just that the mandate for them is going to be going into effect. So I don’t think there’s any reason to wait. I don’t think there’s any concern about that. It’s just more of market conditions and seeing how they play out in the next, you know, six months to a year. 

David Bright  26:14

Well, I like it. I know, there’s been a lot of news stories. And is there any note that you want to end on as far as what what would be your big take home message from this that an investor should think about? 

Nate Hedrick  26:26

I think the big thing is just to continue to follow the stories that are out there, try to stick with reputable news sources. This is an easy one to kind of blow out of proportion. It’s exciting, it affects everybody, right? Everybody’s has to have a place to live. So it affects sort of everyone in the industry and beyond. And so definitely, you know, keep your eye on this and see where things start to go. The big thing I think that I would be watching for is just how this starts to affect the the pool of sellers and the pool of buyers moving forward. Because that’s how you’re going to change market conditions. And that’s what’s going to be more telling in terms of prices and when to buy and things like that.

David Bright  27:07

That makes good sense to me. Well, I appreciate you letting me text you over the weekend with like, what’s going on, I need to know and as well as letting me pepper you with questions here on the podcast today. So thank you very much. 

Nate Hedrick  27:19

Happy to do it. And again, if any of our audience has questions out there, again, I am by no means an expert on this just one of many agents trying to navigate through it. But more than happy to have a discussion about things and see if there’s something I can help with. Reach out to us on Facebook. You can find us on our website: yfprealestate.com I’m on LinkedIn, you just reach out anytime.

David Bright  27:42

Thanks for listening to the YFP Real Estate Investing Podcast. If you liked what you heard on today’s show, please leave us a review or subscribe to the show so you never miss an episode. If you have a question, know someone that would make a good guest or want to connect with us head on over to YFPrealestate.com and join the growing YFP Real Estate Investing Facebook group.

Nate Hedrick  28:00

As we conclude this week’s episode of the YFP Real Estate Investing Podcast an important reminder that the content of this podcast is provided to you for informational purposes only and is not intended to provide and should not be relied on for investment or any other advice. Information in this podcast and corresponding materials should not be construed as a solicitation or offer to buy or sell any investment or related financial products. We urge listeners to consult with their financial advisor with respect to any investment. Furthermore, the information contained in our archive newsletters, blog posts and podcasts is not updated and therefore may not be accurate at the time you listen to it. Opinions and analyses expressed herein are solely those of Your Financial Pharmacist unless otherwise noted and constitute judgments as of the date is published. Such information may contain forward looking statements, which are not intended to be guarantees of future events. Actual results could differ materially from those anticipated in the forward looking statements. For more information, please visit yourfinancialpharmacist.com/disclaimer.

David Bright  28:54

Thank you for your support of the YFP Real Estate Investing Podcast. Have a great rest of your week.

[END]

Advertising Disclosure

Current Student Loan Refinance Offers