Inside the real estate commission shakeup

Is 3D printing the future of affordable housing?

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  No images? Click here May 11, 2024 • Issue #141 Happy Saturday! This week, we’re diving into the potential impact of recent realtor commission settlements and how 3D-printed homes could change the housing market. Plus, a one-of-a-kind home in suburban Minnesota.

Will real estate commission settlements change the market?

Getty Images After the initial uproar over a series of lawsuits surrounding the long-held practice of commission sharing (where a home seller pays commission to both their agent and the buyer’s agent), things have started to settle down. Last year, many of the biggest real estate brokerages in the country came under fire for this standard practice, which critics say artificially inflates the cost of a home purchase. The main plaintiffs in these lawsuits (including Keller Williams, Re/MAX, and HomeServices of America) have agreed to settle, avoiding billions of dollars in payouts. However, the biggest settlement was reached by the National Association of Realtors (NAR), a trade organization representing over a million realtors in the U.S., which agreed to pay $418 million in damages over the next four years. Since NAR’s settlement was announced in March, speculation has run wild about how commissions will be paid to not only its realtor network but also agents, in general, going forward. The truth is, no one knows what’s going to happen just yet. The NAR has never had the power to set agent commissions or require a certain percentage to be paid. What the settlement agreement does do is clarify that agent commissions are negotiable. This means that a seller could choose the status quo of paying the typical 5%-6%, negotiate a smaller fee or offer a lump sum payment, among other possibilities. On the buyer’s side, the NAR settlement requires agents to get a signed agreement detailing the services provided and what commission, if any, the buyer agrees to pay if the seller decides not to cover those costs. In the end, real estate agent commissions will come down to how much buyers and sellers think an agent’s time and expertise is worth. For real estate nerds like me, seeing this play out in real time has been fascinating, and I can’t wait to see what comes next.

Massive Realtor Lawsuit Settlement Will Change How Homes Are Bought and Sold

Homeowners Are Increasing Insurance Deductibles to $5,000 or More to Save Money

Money Move of the Week

Save thousands in covered repairs with a home warranty Owning a home comes with unexpected expenses. Without a home warranty, a sudden breakdown, like a malfunctioning HVAC system, could cost you up to $15,000 to replace. Safeguard your finances and maintain your home’s value with warranty coverage for eligible essential systems and appliances. See our list of the best home warranty providers available today.

The 3D-Printed Future of Housing

Getty Images It may not be as easy as churning out a mini replica of baby Yoda, but some builders are using large-scale 3D printers to build homes faster and at a more affordable price. If visions of plastic walls just popped into your head (they did in mine at first), let’s take a step back. These printers work with concrete-based materials—as do builders of most new homes—to lay foundations and build walls. Roofs and other structures are finished using standard, non-3D-printed construction techniques. The main advantage of building a house this way is the speed at which it can be done. According to the National Association of Realtors, the home's printed parts (the foundation, floor slab, and walls) can be built in a little over a day. When you add in the electrical and plumbing systems, roof, windows and doors, the total construction time could be as little as a month. There are other potential advantages to 3-D printed homes, like: They don’t require the cement molds typically used to build walls, which helps reduce waste They provide better insulation against cold and heat, which can help reduce a home’s energy consumption The materials used in 3D-printed homes are weather-resistant and can mitigate damage caused by high winds and impacts. While the technology is still fairly new, some 3D printing companies have big plans for integrating home construction into their workflow. ICON, a company based in Texas, has already broken ground on a 100-home community north of Austin.

As Home Values Soar, Americans Are Sitting on Record High Home Equity

Listing of the week

Sky Definition of MN, Provisuals Media of AZ A waterfront home in the land of 10,000 lakes If you love the outdoors, don’t mind some nippy winters, and have $2.8 million lying around, this estate in Plymouth, Minnesota, could be the home you’ve been waiting for. Located right outside the Twin Cities, the home was designed in 2017 to provide both maximum privacy and nearly 360-degree views of its natural surroundings. The southern exposure lets in plenty of natural light, and the home is filled with unique features: the main floor office has a "car desk" complete with a horn that honks whenever the doorbell rings, and the grand foyer is adorned with a floor-to-ceiling crystal centerpiece. The home's two-level garage has its own disco ball. Outside, there's plenty of room to roam: the property has 36 acres, a portion of which is a private nature preserve. It's listed by Nick Leyendecker, founder of Leyendecker Luxury Real Estate. Sky Definition of MN, Provisuals Media of AZ

’Til next time, P.S. Have you seen a unique listing on social media I should feature in this newsletter? Or have a question about housing or mortgages you desperately want answered? Let me know on Twitter at @LeslieLCook or via email at leslie@money.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page.

Money’s Essential Home Buying Resources: Spring

On the hunt? Check out Money’s Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates. Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips. Key question: How much house can I afford?

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