Conventional homebuyers, buckle up! Fannie and Freddie have just made a groundbreaking announcement that is set to revolutionize the Real Estate landscape.
In a move aimed at streamlining processes and empowering buyers, Real Estate commissions will now be separate from IPCs (Interested Party Contributions). For those unfamiliar, IPCs refer to Seller Paid Closing Costs commonly seen in Real Estate contracts today.
This development marks a significant milestone as the Real Estate and mortgage industry evolves post the NAR settlement. Essentially, this change empowers homebuyers to request the seller to cover buyer agent commissions separately, thus fulfilling their buyer broker agreement without impacting the amount of contributions they can receive for closing costs.
Previously, the maximum amount permitted for these closing cost concessions might not have covered rate buy-downs and other expenses on top of the buyer broker fee. With this new arrangement, homebuyers gain more flexibility and a clearer path to navigate the intricacies of real estate transactions.
This announcement comes at a crucial time as the industry prepares for mandatory buyer broker agreements scheduled for implementation this July. It signifies a positive shift in favor of homebuyers and reflects the ongoing adjustments post the NAR settlement.
Do you have questions about these changes? Feel free to drop a comment below, and we’ll provide you with a link to dive deeper into these transformative updates. Stay informed, stay empowered! Planning to move? For nonobligation tips, contact us anytime @PerspectiveRealEstateGroup