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Monthly Archives: April 2024

Property Condition Disclosure Statement

On March 20, 2024, a new law came into effect which significantly modifies the New York Property Condition Disclosure Statement (PCDS) which replaces and modifies a law that has been on the books since 2002. This law applies to sales of residential real estate, (residential real estate means a 1-4 family dwelling used or intended to be used as a residence; unimproved land, condos, coops and HOA sales are not covered.)

Several new questions related to flooding and mold issues were added to the typical structural and mechanical ones contained in the prior PCDS.

Previously, the PCDS could be exempted or basically ignored by a seller if the seller gave the buyer a credit of $500 in place of completing and delivering a PCDS. This provision has now been eliminated. That credit was basically a discharge of liability on the part of the seller. The elimination of the $500 credit could have legal implications for a home seller who intentionally deceives or provides false statements in the PCDS since the new law requires its delivery prior to the execution of the contract. The law is clear – A knowingly false or incomplete statement by the seller on this form may subject the seller to claims by the buyer prior to or after the transfer of title-. We can assume that lawyers representing buyers would like the PCDS to be added to the contract of sale. It is uncertain if the requirement can be waived.

It is very important to keep in mind that the PCDS is not a substitute for any professional inspections or tests that buyers should conduct prior to buying a house. It is also not a warranty of any kind by the seller or its agents. The PCDS is mandatory and cannot be avoided except in very limited situations.

We all have questions regarding how this law is going to impact the industry. It is too early to tell. The only suggestion we have for our selling clients is fill out the PCDS to the best of your knowledge. Include evidence of any improvements, repairs or claims pertaining to the property. If you owned and maintained your property with pride, chances are you have nothing to worry about.

Why is GioHomes willing to list properties for sale for 3% commission instead of the standard 5 – 6%?

On March 19, 2024, we decided to adjust our commission rates. A big reason for such a change has to do with the NAR (National Association of Realtors) settlement of March 15. It also has to do with our culture. We are a local, independent real estate company. We don’t report to big conglomerates of shareholders. We have total liberty to make our own decisions. Those decisions are based on the specific agreement with our clients.

Commissions are not dictated by NAR and are certainly not coordinated among different real estate companies or our local association of realtors. In New York real estate companies are licensed by the Department of State. In Connecticut real estate companies are licensed by the Department of Consumer Protection. Real estate companies can charge any commission they want to their clients. The licensing bodies do not tell companies how to set up their commission structure.

The 5-6% commission became “the norm” because that is what agents charge. We ask ourselves, why? The simple answer is because it works. According to the National Association of Realtors (NAR) The average Real Estate Sales Agent Salary in the United States is $46,014 as of January 26, 2024. It’s hardly what can be considered a luxury salary. The reason for that is because agents only get compensated if they sell a property. An agent can show up at the office every day, 7 days a week and end up working 70 hours a week for the entire year, but if that agent doesn’t close on the sale of a property, that agent won’t earn compensation. Similarly, an agent can list a property for sale, spend time, effort, and advertising for an entire year. If that property doesn’t sell, that agent won’t earn compensation. On the other hand, that agent would accumulate expenses that he/she would have to pay. That is a net financial loss. The 5-6% commission works because the income spread through the year helps even up the financial gains and losses the agent incurs. The 5-6% commission has been used as an incentive to sell a property. When an agent charges 5-6% commission that agent doesn’t keep 100% of the commission. Normally 50% of that commission is paid out to the buyer’s agent. It basically is an incentive to a buyer’s agent for bringing a qualified, willing, and able buyer.

Why is GioHomes offering to list properties for sale for a 3% commission instead of 5-6%? For one simple reason. Because we are confident that we can sell those properties while offering top notch service. We have been delivering exceptional service to our clients since 2006 because we put our client’s best interests first. If you are considering selling your property, give us a call. You will be happy you did!

GioHomes Real Estate, LLC. Will Start Listing
Properties for Sale for 3% Commission
Instead of the Standard 5 – 6%

The announcement comes as a result of the NAR's $418 million settlement on Friday, even thought the settlement is subject to a judge's approval.

WHITE PLAINS, NEW YORK, UNITED STATES, March 19, 2024 /EINPresswire.com/ -- The National Association of Realtors (NAR) announced on Friday a settlement with groups of home-sellers agreeing to end a landmark antitrust lawsuit by paying $418 million in damages and eliminating rules on commissions, even though the settlement is subject to a judge’s approval. GioHomes Real Estate recognized the settlement as overdue. In their view, the elimination of rules on commission guidelines represents a decoupling of a commission system that was perceived as unfair by sellers.

They welcomed the news with an announcement of their own. Starting today, the company will represent home sellers for a 3% commission, instead of the standard 5 or 6% that most real estate agents charge. Since its establishment in 2006, GioHomes Real Estate has been committed to providing exceptional service to its clients at discounted rates. The company has built a strong reputation in the real estate industry for its dedication to customer satisfaction and transparent business practices. With this new change in commission rates, GioHomes Real Estate aims to further enhance its services and make the home selling process more affordable for its clients.

Located at 190 E Post Rd., Suite 101, White Plains, New York 10601, GioHomes Real Estate is a full-service real estate agency that represents buyers and sellers. They provide their services to Westchester County and surrounding vicinity, including Connecticut. The company's team of experienced and knowledgeable agents are dedicated to helping clients achieve their real estate goals. With this new commission rate, GioHomes Real Estate is making it easier for home sellers
to save money while still receiving top-notch service.

"We are thrilled to announce this change in our commission rates for home sellers. We understand that selling a home can be a stressful and expensive process, and we want to make it more affordable for our clients. Our team is committed to providing the same level of quality service while helping our clients save money," said Giovanni Gonzalez, Head Broker of GioHomes Real Estate. He added “Going forward, sellers should pay their commission, and buyers should also pay their commission when utilizing the service of a real estate agent or broker.”

GioHomes Real Estate is excited to offer this new commission rate and looks forward to helping more home sellers achieve their real estate goals. For more information, please visit their website at www.giohomes.com or contact them at (914) 946-1067.

Giovanni Gonzalez
GioHomes Real Estate, LLC.
+1 914-946-1067

This press release can be viewed online at: https://www.einpresswire.com/article/696911645
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