Unleashing Real Estate's Wild West Era 🏜️

Today’s top stories…

• Real estate commissions are in for a wild ride as NAR settles for $418M, shaking up the industry

• Landlords face a silent war as tenant screening legislation tightens

• Multimillion-dollar property goes up in flames

• 🔥 Deal of the Day! 🔥: 3 bd | 2 ba | McGaheysville, VA (Charming A-Frame)

Today’s mortgage rate (30 Yr. Fixed): 7.11%

NAR Settlement Unleashes Real Estate's Wild West Era

On March 15, the National Association of Realtors (NAR) agreed to a $418 million settlement that's set to reshape the industry as we know it.

Say goodbye to rules allowing listing agents to set buyer broker compensation and prepare for offers of compensation to disappear from Multiple Listing Services (MLSs) by mid-July. Written buyer representation agreements will now be a prerequisite for home tours, adding an extra layer of complexity to the process.

While NAR admits no guilt, the implications are far-reaching. Compensation uncertainty looms large, with questions about whether and how much agents will get paid. Bias and discrimination in offers may rear their ugly heads, and confusion and misinformation are likely to run rampant. Some may even choose to leave NAR and MLSs altogether.

In this new era, adaptability and quick thinking will separate the winners from the losers. Are you ready to stake your claim?

Tenant Screening Under Siege: The Quiet Battle Affecting Landlords

Across the United States, a quiet but significant shift is taking place in the world of tenant screening. As legislation becomes increasingly restrictive, landlords and property managers are finding themselves facing new challenges when it comes to selecting tenants for their rental properties.

Kansas City recently passed what advocates are calling "the strongest source of income discrimination ban in the country." This bill not only prohibits landlords from refusing to accept Section 8 vouchers but also severely limits their ability to screen potential tenants based on factors such as prior evictions, alleged damages, and criminal history. Ugh.

Under the new law, landlords cannot refuse to rent to a tenant solely because of prior evictions or alleged damages, nor can they reject an applicant solely based on prior convictions or arrests without considering additional information provided by the applicant. The only exception is if the prospective tenant had an eviction within the previous 12 months.

These changes have forced landlords to adapt their screening processes. Attorney Dan Kelly recommends removing rent-to-income ratios and instead using a fixed income requirement above the rent amount. He also suggests that landlords should require at least two negative hits on a background check before refusing a prospect and should encourage applicants to provide supporting documentation or written explanations to add context to any negative factors that arise during screening.

However, these vague standards put landlords in a difficult position, as they must subjectively review and consider additional information provided by applicants, making it challenging to maintain a consistent policy that complies with fair housing laws.

Kansas City is not alone in this trend. Nearly half of the states and over 100 municipalities have passed similar legislation, and it is likely that more will follow suit. As the real estate industry braces for these changes, landlords must stay informed and adapt their screening practices to navigate this evolving landscape while still protecting their investments and maintaining fair housing compliance.

Multimillion-Dollar Mishap: Agent's Open House Prep Goes Up in Smoke

In a shocking turn of events, a real estate agent's attempt to prepare a multimillion-dollar property for an open house ended in disaster when she accidentally burned the house to the ground. The incident, which took place in Avalon Beach, Sydney, has resulted in a court order for the agent's employer to pay over $555,161 in damages.

Julie Bundock, the real estate agent in question, was tidying up the four-bedroom home when she noticed some bedding left out to dry by the current renters. She removed the sheets and threw them onto a shelf below a light in a downstairs room, which she then switched on. Unbeknownst to her, this action would set off a chain of events that would ultimately destroy the estimated $2 million property and all of its contents.

The property owner, Peter Alan Bush, who was preparing to sell the house, took the matter to court, along with the four renters whose belongings were also destroyed in the fire. During the court proceedings, it was revealed that Bundock had admitted to her mistake, saying, "Oh my God Pete, I think I have burnt down your house."

Chief Judge in Equity Justice David Hammerschlag ruled in favor of the plaintiffs, stating that Bundock had "actively created the risk of fire and the consequent harm." He ordered Bundock's employer, Domain Residential Northern Beaches, to pay Bush $483,736 for the loss of his house and a combined $79,339 to the four renters, along with interest on the total amount from the time of the fire in May 2019.

The court also noted that Bundock was an "aggressive and uncooperative witness," with her evidence being "clearly colored by a heightened awareness that she had caused the catastrophe." Despite attempts by Domain Residential Northern Beaches to argue that the plaintiffs shared responsibility for not informing them about the potential hazard of the shelf and light, Judge Hammerschlag rejected this suggestion, stating that Bundock's actions were the sole cause of the harm.

This unfortunate incident serves as a stark reminder of the importance of exercising caution and due diligence when handling property, especially in the context of real estate transactions. The costly consequences of a single mistake highlight the need for professionals in the industry to maintain the highest standards of care and attention to detail to prevent such devastating outcomes.

🔥 Deal of the Day! 🔥

Price: $449,900

Address: 206 Deer Dr, McGaheysville, VA 22840

This chalet offers an ideal blend of rustic charm and modern luxury, from the spacious, open-concept great room with natural wood beams and a cozy wood-burning fireplace to the contemporary chef's kitchen, making it a perfect ski retreat. With unique features like a loft accessible by ladder for additional sleeping space and outdoor living areas with stunning mountain views, it promises a memorable stay. The inclusion of an EV charger and furnished turnkey readiness ensures convenience and comfort for every guest, embodying the dream mountain vacation rental experience.

Airdna data:

Estimated monthly payment: $2,622/month (if financed)

Estimated monthly revenue: $3,325/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

See you tomorrow!

✍️ Brett