Home sales were higher in San Diego County as well as in California, reaching a five-month high statewide in July 2024, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Fueled by the lowest interest rates since spring, closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 279,810 in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

July 2024’s statewide sales pace rose 3.6% from the revised 270,200 homes sold in June 2024 and increased 4.1% from a year ago in July 2023, when a revised 268,840 homes were sold on an annualized basis. The sales pace has remained below the 300,000 threshold for 22 consecutive months, and year-to-date home sales edged up 0.2% from the first seven months of 2023. Year-to-date statewide home sales inched up 0.2%.

In San Diego County, the sales pace for home sales increased in July 2024 in both monthly and year-over-year comparisons. Sales of existing, single-family homes in San Diego County increased in July by 11.8% from June 2024, and 11.1% from July 2023.

“California’s housing market kicked off the second half of the year with a moderate increase in home sales in July as interest rates continued their downward trend,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “Despite transitioning into the off-season, the market should remain vibrant in the coming months if the availability of homes for sale continues to improve, and mortgage rates moderate further in the third and fourth quarters.”

Regarding home prices, the statewide median price slipped in July 2024 for the second month in a row, after setting a record high in May 2023. July’s median price dipped 1.6% from $900,720 in June 2024 to $886,560 in July 2024. California’s median home price in July 2024 was 6.5% higher than the $832,530 recorded in July 2023. 

July 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

The year-over-year gain in July 2024 was the 13th straight month of annual price increases, albeit the smallest since January 2024. Home prices could soften further in the coming months but should continue to register moderate year-over-year growth for the rest of the year.

Stronger sales momentum in the higher-priced market segment on a statewide basis continued to contribute to median price growth, especially because homes priced at $1 million and above have been selling faster than lower-priced homes.

The $1 million-and-higher segment rose year-over-year in July 2024 by 24.5%, while sales in the sub-$500,000 segment dropped 1.6%. While sales of homes priced above $1 million were down for the second straight month, they accounted for 35.4% of all sales in July 2024, near the recent high recorded in May 2024. California easily boasts the most cities with million-dollar-priced homes, followed by New York and New Jersey. 

In San Diego County, the average price for an existing, single-family detached home in San Diego lingered at more than $1 million in July 2024. It was the fifth consecutive month the median price exceeded $1 million.

The median sales price in July 2024 was $1,020,000, a slight 3.2% decrease from the $1,054,180 posted in June 2024. A year ago, in July 2023, the median price for a San Diego home was $969,020, a 5.3% difference with July 2024.

“As the economy showed more signs of cooling in the past couple of months, mortgage rates continued to come down, reaching the lowest level in 15 months,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “This improvement in lower borrowing costs could motivate homebuyers on the sideline to reenter the market, especially since home prices began to soften at the tail end of the homebuying season.”  

Other key points from C.A.R.’s July 2024 resale housing report include:

• At the regional level, home sales in nearly all major regions bounced back and rose higher than year-ago levels in July 2024. The San Francisco Bay Area (19.2%) increased the most, followed by Southern California (11.4%) and the Central Valley (10.3%) regions.
  
  
• At the regional level, all major regions experienced an increase in their median price from a year ago in July. The Central Coast posted the biggest price jump on a year-over-year basis, increasing 8.0% from a year ago, followed by Southern California at 6.1%.
  
  
• The statewide unsold inventory index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, was mixed. The index was at 2.9 months in July 2024, down from 3.0 months in June 2024 and up from 2.5 months in July 2023.

July 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sale in San Diego County was at 2.6 months in July 2024, compared to 2.7 months in June 2024 and 2.0 months in July 2023. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.
  
  
• Active listings statewide rose 39.0% on a year-over-year basis. It was the sixth straight month of annual gains in for-sale properties and the highest since January of last year.
  
  With mortgage rates likely to moderate in the coming months, further improvement in the supply side could be observed in the market for the rest of the year as the lock-in effect continues to ease.
  
  
• New active listings at the state level increased from a year ago for the seventh consecutive month. With mortgage rates moderating throughout the month, the pace of growth accelerated in July 2024 (19.5%) after slowing to a single-digit growth rate in June 2024.
  
  
• The median number of days it took to sell a California single-family home was 20 days in July and 16 days in July 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 16 days in July 2024, compared to 14 days in June 2024 and 12 days in July 2023. The figures for the previous 2024 months were 12 days in May, April, and March. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100.0% in July 2023 and 100.0% in July 2023. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio of 100% or above suggests that the property sold for more than the list price, and a ratio below 100% indicates that the price sold below the asking price.
  
  
• The statewide average price per square foot for an existing single-family home was $437, up from $408 in July a year ago.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.85% in July, up from 6.71% in July 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Recently, PSAR members met with California State Senator Brian Jones, who has represented the 40th Senate District since 2018. He is currently serving as Senate Minority Leader.

The major topic discussed at the meeting with Jones is the housing shortage. High home prices and mortgage rates have created a chilling effect on the housing market, frustrating aspiring first-time buyers and homeowners looking to move. Adding to the misery, the low housing supply has kept prices up, even as elevated borrowing fees bite into purchasing power and affect affordability. 

Also, prospective sellers are deterred over concerns about the mortgage rate they would incur with their next home, creating a “lock-in effect” that constrains the market. The lock-in effect occurs when homeowners who secured ultra-cheap mortgages when interest rates were low now feel trapped in their current property and reluctant to relocate, thus, limiting the number of existing homes available for sale.

Sen. Jones told PSAR members he believes there are ways to increase the inventory of single-family homes to first-time buyers by making it easier for older homeowners looking to downsize.

In addition, PSAR members heard Jones's request for the Association’s assistance with researching San Diego County homeowners, ages 55 and older, who might be interested in downsizing.

Jones said he believes more homeowners would be receptive to relocating to smaller homes, giving more options to first-time buyers, if benefits were available that still offered attractive living amenities.

One idea is to examine the incentives currently available for subsidized rentals and then apply those same incentives toward the creation of entry-level ownership housing. Another idea is to make it easier for developers to build entry-level homes by offering the same programs that benefit for-profit and non-profit builders of rental housing.

Overall, PSAR members described the meeting with Jones as “productive” and “enlightening.” PSAR members thanked the Senator for his continued partnership in looking for solutions to the housing shortage. 

The 40th California State Senate District includes more than 1 million residents of East and North San Diego County. The 40th Senate District includes the cities of Escondido, Poway, San Marcos, Santee and San Diego City communities of Carmel Mountain Ranch, Mira Mesa, Rancho Bernardo, Rancho Peñasquitos, Scripps Ranch, Sorrento Valley and University City, along with the San Diego County unincorporated communities of 4S Ranch, Alpine, Bonsall, Fallbrook, Lakeside, Pine Valley, Rainbow, Ramona and Valley Center.

Jones grew up in the 40th District. He attended Santee Elementary, Cajon Park Middle School, and Santana High School, and earned a bachelor’s degree in business administration. Jones served eight years on the Santee City Council followed by three terms (2010-2016) in the State Assembly before his first election to the Senate in 2018. PSAR endorsed Jones in his 2022 reelection bid.

C.A.R. UPDATES   |   NAR UPDATES   | CRMLS UPDATES

Be prepared for major changes in Real Estate transactions and buyer representation that roll out this summer.
Updated July 31st, 2024.

Why will the Practice Change on August 17, 2024?

PSAR, CAR, and NAR offer educational resources to Realtors that target their need to quickly learn about policy and procedural changes and how to conduct business in the real estate marketplace after August 17 of this year. (Note: NAR or CAR login is required to access many of these member benefits)

The post-settlement contracts are finalized and Michael Shenkman is conducting a series of classes to explain the use of the new contracts from both sides of a transaction.
In this three-part series, Mr. Shenkman explains how the post-settlement changes integrate with the form groups (BRBC, RLA, RPA) in different stages of the real estate process.  Classes will be held at PSAR's Central Office.  August 13th: BRBC   |  August 15th: RLA  | August 20th: RPA

Get up to speed on C.A.R. forms updates and how to utilize the revised versions in your business transactions.

CAR Town Hall Meetings (Recording Available)

CAR Form Training Free for members use code FORMS49   (Register Here)

C.A.R. New Forms & Business Practice Resources (Updated August 9, 2024)

• Forms and resources
• News and Statements
• Legal Presentations & Townhalls
• Courses & Training Video
• Designated Email Address for Forms Questions: july2024forms@car.org

July 10, 2024 Forms release List of new & revised FORMS RELEASE: 
(note: items with an asterisk indicate new forms)

• • Broker Compensation Advisory (BCA)
  • Buyer Financial and Personal Information (BFPI)*
  • Buyer Identification of Preferences and Priorities (BIPP)*
  • Buyer Material Issues for a Specific Property (BMI-SP)*
  • Buyer Representation and Broker Compensation Agreement (BRBC)
  • Cancellation of Buyer Representation (COBR)
  • Modification of Terms – Buyer Representation Agreement (MT-BR)*
  • Modification of Terms – Listing Agreement (MT-LA)*
  • Multiple Listing Service Addendum (MLS)*
  • Notice of Broker Involved Properties (NBIP)
  • Open House Visitor Non-Agency Disclosure and Sign-In (OHNA-SI)*
  • Property Showing and Representation Agreement (PSRA)*
  • Residential Listing Agreement (RLA)
  • Residential Purchase Agreement (RPA)
  • Seller Payment to Buyer’s Broker (SPBB)
  • Tenant Representation and Broker Compensation Agreement (TRBC)*
  • Other listing agreements and purchase agreements have also been conformed to the changes to the RLA and RPA, respectively.

Latest updates from NAR

• NAR Settlement FAQs: More info.

Fine-tune your knowledge and skill set by attending a FREE Accredited Buyer's Representative (ABR) class.

If you missed the live PSAR l ABR class, the NAR offers two free alternatives:
 

• • • Schedule a live instructor-led online ABR class. Select <ABR Designation> as the course title, and <Instructor Led> as the Delivery Format here. This usually paid-for class is FREE until the end of 2024; the cost returns to $110 in 2025.
      
      
    • Take a Free self-paced 12-hour online course.  Access it here.

    ---

Latest updates from CRMLS

• CRMLS resources, policy changes, Concessions Field, and a video from the CRMLS General Counsel: More info.
• Compensation is to be removed from CRMLS on August 13th.
• A summary of information about the NEW CRMLS Concessions Field from PSAR is here.
• CiP Field
  • As of 7/30, the Concessions in Price (CiP) fields containing the ($) and (%) options have been removed from all CRMLS systems. The only field that remains is the "Seller Consider Concessions? Y/N", and this field will continue to be an option for listing input going forward.
• SUPER IMPORTANT FAQ
  • It’s a one-stop shop for tying a lot of the floating pieces together. Some scenarios are included! HERE 

Live Webinar with Art Carter & Ed Zorn - CRMLS Industry Updates & MLS Changes
Join CRMLS CEO Art Carter and VP & General Counsel Ed Zorn for a special update about the new world of real estate. Registration is free but space is limited, so sign up now!

• Tuesday, August 20^th | 2:30pm-3:30pm | REGISTER  

These topics and more:
-Important rule changes effective 8/13
-New violations and fines
-Use of new/revised C.A.R. forms
-How to navigate common transaction scenarios 

Hermila "Mila" Cesena was born on April 7, 1943, in Mazatlán, Mexico, to Maria Consuelo Alvarado and Jesus Raymundo Galdeano. She was the mother-in-law of PSAR Committee member Juliette Montoya-Cesena, was an agent with Berkshire Hathaway, and was a member of PSAR since 1978.

She grew up and attended school in Mazatlán before moving to Tijuana at age 15. There, she met her future husband, Jesus Cesena, and they remained married for 61 years. Together, they had two sons, Jesus and Carlos, and also raised Mila’s younger brothers, Alvin, William, and Edward, after their mother passed away from lupus. She joined PSAR in 1978 and worked with Berkshire Hathaway.

In the early 1970s, Mila earned her real estate license.  Real estate became her passion and lifelong career. She was dedicated to helping her clients achieve homeownership, counseling them to pay off their home mortgages as soon as possible. She cherished hearing from clients who had achieved the goal of complete homeownership. 

Mila had a vibrant personality and was known as the life of the party, brightening the mood of those around her. She loved to dance and create a fun environment for everyone, going out of her way to raise the spirits of those who seemed down.

Family was very important to Mila. She enjoyed family vacations and cherished time spent with her loved ones. Fond family memories include summer vacations to Mexico with her sister-in-law and her boys.   Mila also found peace in long walks on the beach, taking in the sights and sounds of the ocean that imparted a sense of tranquility and peace of mind.

Hermila Cesena's mass will be held on 7/26/24 at
Corpus Christi Catholic Church, Bonita at 12 noon
Followed by interment at Glen Abbey Memorial at 2:00 PM.

If you are looking to Chat or File a Ticket with CRMLS Compliance or Support, it's moved.  Here is a quick video Tutorial on where to look.

Click here to see a quick video on where to look.  

Picture a frantic call from a potential renter who's just realized they've been scammed using your property's listing.

Scammers are increasingly targeting properties listed for sale, marketing them as rentals on platforms like Craigslist and Zillow. This alarming trend not only undermines trust in real estate transactions but also creates significant issues for property owners and REALTORS®. As REALTORS®, it's crucial to be vigilant and take proactive measures to protect your listings. Here’s how you can stay ahead of these scams and what to do if it happens to you.

Understanding the Scam

A typical scam involves a fraudster picking up a "For Sale" property and posting it as a rental. They solicit application fees and deposits from unsuspecting renters, claiming to be the owner. One such incident involved a scammer posting a rental listing on Craigslist and Zillow, soliciting an application fee. The scam is usually identified when a potential renter contacts the legitimate listing agent or the homeowner.

The Impact on Agents and Owners

While tenants can lose money, the repercussions for property owners and agents can be equally as severe. A defrauded tenant might move into the property, and due to California’s tenant protection laws, removing them can be a lengthy and complex process for both the tenant and the owner. This situation creates legal and financial challenges for the property owner, the tenant, and the REALTOR® managing the listing.

Steps to Prevent Scams

1. Regular Monitoring:

   • Frequently check platforms like Craigslist, Zillow, and others for unauthorized rental listings of your properties.
   • Set up Google Alerts for your property addresses to receive notifications if they are mentioned online.  Here are instructions for doing so.

2. Clear Communication:

   • Inform your clients about the potential for scams and advise them to contact you if they receive any suspicious inquiries.
   • Ensure your contact information is prominently displayed on your listings and signage.

3. Educate Your Clients:

   • Inform sellers about the scam and encourage them to report any suspicious activity they encounter.
   • Provide them with a list of red flags to look for, such as requests for payment before seeing the property or communications from email addresses that do not match the legitimate owner’s contact information.

What to Do If Your Property Is Scammed

1. Report Immediately:

   • Contact the platform where the fraudulent listing is posted (e.g., Craigslist, Zillow) and request immediate removal.
   • Report the scam to local police, the County Sheriff, and the District Attorney’s office.
   • Notify the Federal Trade Commission (FTC) and the Attorney General’s office.
   • Here is a list of contacts provided by the San Diego DA

2. Inform All Parties:

   • Notify your seller and any legitimate tenants about the scam.
   • Advise them to be vigilant and report any suspicious activity.

3. Document Everything:

   • Keep detailed records of the fraudulent listing, including screenshots, communication with the scammer, and any reports filed with authorities.

4. Legal Considerations:

   • Consult with legal professionals to understand the implications of a defrauded tenant occupying the property.
   • Prepare for possible eviction proceedings, which may require legal assistance due to California’s tenant protection laws.
5. Secure the Property
   • Change the locks to prevent unauthorized access.
   • Add security cameras to notify you of unauthorized access.
   • Consider removing lockbox access.
   • Consider private security.

By following these steps, you can significantly reduce the risk of your listings being targeted by scammers. Stay vigilant and proactive to protect your clients and your reputation in the real estate market.

How to Set Up a Property Alert Using Google Alerts

Setting up Google Alerts is an effective way to monitor your property addresses and stay informed about any unauthorized listings or mentions online. Here’s a step-by-step guide to create a Google Alert for a property address:

1. Go to Google Alerts:

   • Open your web browser and go to Google Alerts.

2. Enter the Property Address:

   • In the search box at the top of the page, enter the property address you want to monitor. Use quotation marks around the address for more precise results (e.g., "123 Main Street, San Diego, CA").

3. Customize Your Alert:

   • Click on “Show options” to customize your alert settings:
     • Frequency: Choose how often you want to receive alerts (e.g., as-it-happens, once a day, once a week).
     • Sources: Select the sources you want to include (e.g., news, blogs, web, video).
     • Language: Set the language for your alerts.
     • Region: Specify the region to refine your results.
     • How many: Choose between "Only the best results" or "All results" based on your preference.

4. Set Up Notifications:

   • Enter your email address to receive the alerts. If you are signed in to your Google account, it will automatically use your account email.

5. Create Alert:

   • Click on “Create Alert” to finalize the setup. You will start receiving notifications according to your specified preferences.

By following these steps, you can ensure that you are promptly informed about any online activity related to your property listings, allowing you to take swift action if unauthorized listings or mentions are detected.

High mortgage rates continued to hamper home sales in San Diego County in June 2024, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

The sales pace for San Diego County home sales declined in June 2024 in both monthly and yearly comparisons. Sales of existing, single-family homes in June 2024 in San Diego County decreased 9% from May 2024, and 1.9% from June 2023.

Statewide, the sales pace in June 2024 decreased 0.8% from May 2024, and 2.7% from June 2023. Year-to-date statewide home sales edged lower by 0.5%. California home sales remained stagnant for the second consecutive month in June 202, as mortgage rates remained above 7% throughout most of May when escrows were opened for most of June’s sales.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 270,200 in June 2024, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The sales pace has remained below the 300,000-threshold for 21 consecutive months, and year-to-date home sales have fallen behind last year’s level by -0.5 percent through the first half of this year.

“With interest rates coming down to the lowest levels since February and the availability of homes loosening up further in the last few months, the housing market is gearing up for another run in the second half of the year,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “We could see a pickup in market momentum at the start of the third quarter if rates decline in a more sustainable way in the coming weeks and buyers decide to take advantage of lower costs of borrowing.”

Meanwhile, the average price for an existing, single-family detached home in San Diego remained at more than $1 million in June 2024. It was the fourth consecutive month for the median price to exceed $1 million (March, $1,020,000; April, $1,047,500; May, $1,025,000; June $1,054.180).

June 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

San Diego’s median sales price in June 2024 was $1,054,180, a 2.8% increase from the $1,025,000 posted in May 2024. A year ago, in June 2023, the median price for a San Diego home was $958,250, a difference of 10.0%.

Statewide, the median home price took a step back in June 2024. The California median price was $900,720 in June 2024, compared to $908,040 in May 2024, a difference of 0.8%, and $837,850 in June 2023, a difference of 7.5%.

Home prices will likely continue recording positive year-over-year gains in the second half of the year, though the pace of growth could moderate if the rest of the year follows the traditional seasonal pattern.

Sales of higher-priced homes are a contributing factor to California’s rising median home price, especially since homes priced at $1 million and above are selling faster than lower-priced homes.

In a year-over-year comparison between June 2024 and June 2023, the million-dollar-and-higher market segment rose 2.0%, while the sub-$500,000 segment declined by 21.0% in the same time period. Currently, sales of homes priced above $1 million now make up 36.3 percent of all sales, nearly the biggest share in at least the last five years. California easily boasts the most cities with million-dollar-priced homes, followed by New York and New Jersey. 

“Home sales pulled back in June as interest rates remained volatile at the end of the second quarter. The average 30-year fixed rate mortgage began to decline since early July though and recently reached the lowest level in five months as the inflation cooling trend continued,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While it will take a couple of more reports for the Federal Reserve to begin cutting rates, housing affordability for qualified buyers should begin to see some improvement in the coming months.”   

Other key points from C.A.R.’s June 2024 resale housing report include:

•  At the regional level, home sales in all major regions continued to be softer than year-ago levels, including -11.5% for Southern California.
  
  
•  At the regional level, all major regions registered an increase in their median price from a year ago, including a gain of 7.4% for Southern California.
  
  
• The unsold inventory statewide index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, improved from both the prior month and year. The index was 3.0 months in June, up from 2.6 months in May and up 2.2 months in June 2023.

June 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sale in June 2024 in San Diego County was 2.7 months. The figure was 2.0 months in June 2023. For previous 2024 months, the figures were 2.4 months in May, 2.2 months in April and March, 2.3 months in February and 2.6 months in January. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell-out given the current rate of sales.

• Active listings at the state level rose on a year-over year basis for the sixth consecutive month.
  
  
• The median number of days it took to sell a California single-family home was 18 days in June and 15 days in June 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 14 days in June 2024. The figure was 11 days in June 2023. For previous 2024 months, the figures were 12 days in May, April and March.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100.0 percent in June 2023 and 100.0 percent in June 2023. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

• The statewide average price per square foot for an existing single-family home was $440, up from $412 in June a year ago. Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.

• The 30-year, fixed-mortgage interest rate averaged 6.92 percent in June 2024, up from 6.71 percent in June 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Updated October 25th, 2024

PSAR's CRMLS subscribers can exchange registered old Gen 1 and Gen 2 lockboxes for new ones at a discounted price of $126 while supplies last!

With the sunsetting of Sentrikey cards by Sentrilock back in March, these features are no longer available on the non-BlueTooth lockboxes:

• Non-Bluetooth lockboxes should not be bought or sold, as ownership cannot be transferred

• If one of these boxes has been inactive/not accessed for over a year and needs an internal clock reset, that action cannot be performed, which means the box will no longer function.

For more information, contact PSAR at support@psar.org, call: (619) 421-7811, or visit one of our offices.

Effective August 13:

1. Removal of Compensation Fields
   • From Matrix, Paragon, and Flexmls.
   • CRMLS Rules and Policy changes go into effect.
   • The concession field at Close will include a category list.

Key Points:

• Reason for Removal:

  • NAR settled the Sitzer/Burnett case regarding MLS commissions.
  • Compliance with the settlement requires MLS systems to remove all Compensation fields.

• Impact on Active Listings:

  • Compensation fields for Coming Soon, Active, Hold, and Withdrawn listings will be removed.

• Historical Listings:

  • Compensation fields for Active Under Contract, Pending, Closed, Expired, and Cancelled listings will remain but cannot be edited.

• C.A.R. Forms:

  • Release of updated forms postponed. Updates will be provided.

• Payment Methods Post-Removal:

  • Buyer's Broker compensation can be included in the buyer's offer.
  • Payment details can be included in the Escrow Instructions if using the C.A.R. Residential Purchase Agreement.

• CRMLS Rules & Policy Changes:

  • Rule 7.15: Renamed to No Offers of Compensation in the MLS.
  • Rule 7.19: Renamed to No Disclosure of Listing Broker Total Commission.
  • Rule 9.1: Renamed to Showings.
  • A signed Buyer Broker Agreement is required before showing a property.
  • View all changes here.

• Reporting Seller Concessions at Close:

  • New required fields: Closing Costs, Property Improvements, Financing Costs, Buyer Broker Fee, Other, and Total Calculated.

• Difference Between Concessions and Compensation:

  • Concessions allow buyers to choose how money is spent, supporting a consumer-centric model. Watch the Concessions vs. Compensation video for more information.

• Staying Updated:

  • Visit the CRMLS Resource Center frequently for updates and information.