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This celebrity real estate expert said US homeownership was ‘hit again’ — here’s how you can stay invested in the … – AOL

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June 24, 2024 at 7:22 AM
This celebrity real estate expert said US homeownership was 'hit again' — here's how you can stay invested in the property market in 2024
This celebrity real estate expert said US homeownership was ‘hit again’ — here’s how you can stay invested in the property market in 2024

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Buy/sell, rent/lease residential &
commercials real estate properties.

Navigating the real estate market can feel overwhelming, especially in a climate marked by elevated interest rates and persistently high property values. Broker veteran and reality TV star Katrina Campins believes that recent legal developments involving the National Association of Realtors (NAR) do little to alleviate these concerns.

In a significant turn of events for the real estate industry, the NAR reached a proposed $418 million settlement agreement in a class-action antitrust lawsuit. The lawsuit, brought on by a group of home sellers, accused the NAR and major brokerages of colluding to artificially inflate commission rates, challenging long-standing practices within the U.S. real estate market.

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“Homeownership is poised to become even more challenging in an already tough market as a result of this. The repercussions of this lawsuit are numerous and significant,” she told Fox Business.

If approved, a major change resulting from the settlement would be the elimination of the NAR’s requirement for brokers listing homes on its Multiple Listing Services (MLS) to also list compensation rates for buyer’s agents. Additionally, MLS would remove fields indicating broker compensation.

Here’s more on how the lawsuit could impact American homebuyers and sellers — plus some ways you can stay invested in real estate even if you’ve been priced out of buying in the current market.

Industry changes ahead

A major change resulting from the settlement would be the elimination of the NAR’s requirement for brokers listing homes on its Multiple Listing Services (MLS) to also list compensation rates for buyer’s agents. Additionally, MLS would remove fields indicating broker compensation. This change effectively decentralizes negotiations for compensation, shifting them outside of the MLS platform and into direct negotiations between home sellers, brokers and agents.

However, Campins is concerned about the settlement, cautioning those who view the changes as a victory against alleged exploitation by agents.

“The progression to the current state originated from individuals actually seeking increased representation in home buying,” she explained.

In particular, Campins sees the situation becoming more difficult for the buyer.

“Homeownership, in my opinion, just got hit again because of this lawsuit,” she remarked.

Ways to invest as the landscape shifts

Campins also warned about the potential for listing agents to pit buyers against each other in order to drive up property prices for the benefit of sellers. ​ She is not in favor of that prospect, stating: “I think this is extremely unfortunate and while people think that it’s going to be good for the housing market, I completely disagree.”

If you want to take the residential route but avoid the broker bureaucracy, Cityfunds allows you to invest in a piece of your desired U.S. city without actually buying property and Arrived makes it easy to fit rental properties into your investment portfolio regardless of your income.

Cityfunds is an investment platform offering diversified portfolios of owner-occupied properties in top U.S. cities. For as little as $100, you gain exposure to multiple properties in cities like Austin, Dallas, Miami, Tampa, Denver, Phoenix and Nashville without having to play landlord or purchase a home yourself.

Another residential option that’s backed by world class investors like Jeff Bezos is Arrived. Their platform allows you to invest in rental homes and vacation rentals without having to deal with all the work and risk that can come from having tenants.

Start by browsing a curated selection of home , vetted for their appreciation and income potential. Once you find a property you like, choose the number of shares you want to buy.

The platform’s low minimum investment makes it an accessible investing option with a strong potential for collecting quarterly deposits.

Another option that distances you from brokers and property responsibilities is to invest in the income-producing property market through a REIT. However, many REITs are companies that are publicly traded therefore susceptible to market downturn.

Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here’s how you can save yourself as much as $820 annually in minutes (it’s 100% free)

However, you can also consider investing in eREITs through Fundrise if you want to enjoy real estate’s consistent income potential but want to go the private asset routewith are cost-efficient — investments start at just $10—private investments exclusively available through Fundrise. .

Because you are investing in income-producing properties without investing in the properties directly, REITs give you a chance to invest in real estate and avoid the headaches that come along with working with an agent.

That being said, if buying is going to become more difficult or you are simply priced out from buying, there are ways to invest in real estate in the city you love without needing to become a property owner or landlord.

You can forget about the stress of buying a residential property by turning your investing eye to commercial real estate through private-equity firm First National Realty Partners (FNRP).

With FNRP, which specializes in grocery-anchored retail with historically strong return potential, accredited investors can invest in necessity-based real estate easily. FNRP will find the deals for you and manage each investment through its entire lifecycle so all you need to do is sit back and enjoy the potential quarterly distributions rooted in properties leased by national brands like Walmart and Whole Foods.

Plan for market changes

The courts granted preliminary approval of the settlement agreement on April 23. A final approval hearing is set for Nov. 26.

The settlement is expected to reshape how real estate transactions are conducted, potentially leading to more competitive commission rates and giving buyers and sellers greater flexibility and control over transaction costs.

As part of the proposed settlement, the NAR also agreed to require agents working with buyers to enter into a written agreement with them. This measure is designed to ensure that buyers are fully informed about the service fees their agent will charge, right from the start.

For buyers, this could mean navigating a more complex landscape where agent services and costs become more varied and negotiable. Sellers might benefit from the ability to negotiate commission structures more freely, potentially reducing the cost of selling a home.

Amid these changes, it’s hard to know if investing in another property right now is the right move to make. Luckily, there are professionals you can ask for guidance.

Advisor.com is an online service that matches you with vetted financial advisors suited to your unique money goals and needs.

Simply answer a few questions about your financial situation and Advisor.com will match you with a range of qualified experts. You can reach out for a completely free consultation to ensure you find the right fit that will help you determine the best move for you to make in the current housing market.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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