A condo (not pictured) recently listed on Zillow is getting attention for its property description. (Getty Images)
PORTSMOUTH, Va. (WAVY) — Spring doesn’t come quickly enough for the Hampton Roads real estate industry. After a long, cold period of high interest rates, the Fed has signaled at least three rate cuts over the next year.
Queen Ellis owns the Dreamgirls estate And he said a lot could change depending on interest rates.
“If you’re on the fence, you’re probably going to get more people off the fence,” Ellis said. “And with lower interest rates, we’re probably going to see prices go up as well. We’re going to see a lot more people in the market.”
Typically, when a home is sold, the owner pays a large fee, which is shared with the company representing the buyer.
Under new guidelines established by the Real Estate Information Network, homeowners are prohibited. You no longer have to pay a single penny to the sales company. Chairman Jeremy Caleb Johnson He of the Hampton Roads Realtors Association said that’s a problem for the Hampton Roads market, where many buyers have VA loans.
“One thing to be aware of, especially in Hampton Roads, is the overwhelming number of buyers taking advantage of VA eligibility for mortgages,” Johnson said. “And as it stands, the Veterans Administration does not allow buyers to exercise their right to pay fees on VA mortgages. VA buyers cannot pay buyer’s agent fees.”
Industry under pressure after $1.8 billion judgment against state Association of real estate agents and several major brokerage companies. CNBC reported that more than 1 million agents could lose their source of income.
Ellis remains optimistic.
“If you’re a smart, savvy businessman, you’ll find a way to make it work because we’re independent contractors,” Ellis said.
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