NAR settles: agent commissions slashed 💰

Today’s top stories…

• The NAR's $418M settlement is set to shake up the industry

• TikTok's top 10 real estate accounts you need to follow (PS. I’m also on TIkTok. Follow me for real estate videos 😀)

• Seattle's mayor proposes legislation to convert vacant offices into residential spaces

• 🔥 Deal of the Day! 🔥: 3 bd | 2 ba | Wild Rose, WI

Today’s mortgage rate (30 Yr. Fixed): 7.09%

NAR's $418M Bombshell: The End of 6% Commissions?

The National Association of Realtors (NAR) just settled a groundbreaking $418M case that's set to revolutionize the industry. The standard 6% commission split between buyers' and sellers' agents is no more, as sellers will no longer have to propose compensation upfront. Buyers will now need to sign explicit deals with brokers before working together, potentially leading many to forgo brokers entirely.

Commissions could plummet by 25-50%, favoring online brokers, but don't discount the value of local agents' expertise just yet. Negotiations may become more complex, advantaging cash-rich buyers while posing challenges for first-time buyers with limited means. These changes are slated to take effect mid-July, so brace for some uncertainty in the coming months as everyone adapts to the new landscape.

As an investor, keep an eye out for innovative buyer's agent arrangements that gain momentum, and collaborate closely with your listing agent to navigate the new rules.

10 Must-Watch TikTok Accounts for Real Estate Obsessed (+ Keys as a bonus)

With the future of TikTok in the U.S. hanging in the balance, now's the time to binge on the app's top real estate content. From renovation wizards to luxury home tours, these 10 accounts deliver serious value (and entertainment) for investors and enthusiasts alike.

1. @thebrokeagent: Laugh through the homebuying stress with hilarious, relatable real estate memes.

2. @galeyalix: Watch jaw-dropping room transformations completed in just one weekend by this finance pro turned renovation queen.

3. @mortgagemandy: Get schooled on mortgages by this seasoned lender who breaks down complex topics into digestible bits.

4. @enesyilmazerla: Drool over multimillion-dollar properties (like the one with a floating bathtub!) toured by this former agent turned developer.

5. @jencrouserealtor: Appreciate the hard work of real estate agents as this Pittsburgh-based pro shares the unglamorous behind-the-scenes of her job.

6. @mrphoenixgrey: Avoid design disasters with the snarky yet spot-on advice from this interior designer who calls out common décor mistakes.

7. @housesthatarecool: Discover unique, affordable homes like castles and converted churches that prove you don't need a massive budget for a fascinating property.

8. @lonefoxhome: Solve your decorating dilemmas with the "What Would Drew Do?" series, offering product recs and layout ideas for bland rooms.

9. @foxterradesign: Dream up your perfect outdoor oasis with inspiration from these high-end landscapers who've even put a Lamborghini in a pool.

10. @thehomeedit: Make organizing fun with tips from this peppy duo who've helped everyone from Drew Barrymore to Gwyneth Paltrow tame their clutter.

11. @ownkeys: Yup. Shameless self promotion.

Catch these TikTok stars while you still can!

Reimagining vacant offices

Seattle Mayor Bruce Harrell is on a mission to breathe new life into the city's struggling commercial real estate market. With office vacancies soaring and municipal budgets taking a hit, Harrell has proposed legislation to streamline the conversion of commercial buildings into residential spaces.

The move comes as Seattle grapples with the aftermath of the pandemic-driven shift to remote work, which has left once-thriving downtown offices eerily quiet. Even tech giants like F5, Zillow, and DocuSign have embraced the hybrid work model, further diminishing the demand for office space.

But Harrell sees opportunity in this crisis. His legislation, submitted to the City Council recently, includes a host of incentives to encourage property owners to reimagine their empty offices as vibrant residential communities. From exemptions to cost reductions, the proposal aims to cut through red tape and make conversions a reality.

It's not just about filling vacant buildings – it's about tackling Seattle's housing affordability crisis head-on. With the state offering a sales tax exemption on construction for nonresidential-to-residential conversions, Harrell believes this legislation could be a game-changer in creating more accessible housing options.

The mayor's vision for a revitalized downtown goes beyond just office conversions. He's also pushing for land use code changes to increase density in every neighborhood and allow for more corner stores, fostering a sense of community and convenience.

Personally, I’d love to see more of this happen in large cities across the country. What do you think?

🔥 Deal of the Day! 🔥

Price: $799,900

Address: W5547 Archer Ln, Wild Rose, WI 54984

You might need to build a few additional units on the land for this one to cash flow (if possible given the zoning). This enchanting Lake Home, nestled within 2.4 acres of towering pine woods and boasting over 142ft of sandy lake frontage on the acclaimed Kusel Lake, promises an idyllic retreat with its updated amenities, stunning views through a towering wall of windows, and versatile living spaces including a large loft and insulated sunroom, making it an ideal vacation rental for those seeking tranquility and nature's beauty.

Airdna data:

Estimated monthly payment: $5,165/month (if financed)

Estimated monthly revenue: $3,541/month

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

See you tomorrow!

✍️ Brett