A condominium (not pictured) recently listed on Zillow is turning some heads with its property overview. (Getty Images)
PORTSMOUTH, Va. (WAVY) — Spring can’t come fast enough for the real-estate industry in Hampton Roads. Following a long cold season of high interest rates, the Fed has cued up at least three rate cuts for next year.
Queen Ellis owns Dream Girls Real Estate and said a lot of things could change with interest rates.
“We’re going to see probably a lot more people getting off their fence if they’re on one,” Ellis said. “And then, we’re also going to see probably prices go up because of interest rates go down. We’re going to have a lot more people in the market.”
Typically, when a home is sold, the owner pays a sizeable commission that is shared with the firm representing the buyer.
Under new guidelines, established by the Real Estate Information Network, the homeowner is no longer obligated to pay a single penny to the selling firm. Jeremy Caleb Johnson, the Chairman of the Hampton Roads REALTORS Association, said that’s a problem for the Hampton Roads market where many buyers have VA loans.
“What we have to be careful of in Hampton Roads, specifically, as we have a great preponderance of buyers who are making use of VA eligibility for a mortgage,” Johnson said. “And as it stands right now, the VA will not allow for buyers to exercise their right with the VA Mortgage to pay commission. A VA buyer cannot pay their buyer’s agent commission.”
The industry is under pressure following a $1.8 billion verdict against the National Association of Realtors and several top brokerage firms. CNBC reported more than a million agents could lose their source of income.
Ellis remains optimistic.
“If you are smart and a savvy business person, because we are independent contractors, you’ll find a way to make that work,” said Ellis.
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