Greg Lin, a senior real estate agent in Philadelphia, recently received the 2024 Best Real Estate Broker Award for Pennsylvania clients from the American Institute of Real Estate Professionals. He was also recognized as a “Five-Star Professional Market Leader” by Fortune magazine last December. Lin advises sellers to maintain the current commission payment rules in the real estate market, where the seller pays the commissions for both the buyer’s and seller’s agents to facilitate smooth property transactions.
Following the new regulations implemented by the National Association of Realtors (NAR) since August 17, 2024, home sellers are no longer required to pay the commission for the buyer’s agent. Instead, it is negotiated and paid by the buyer and their agent. This rule applies to regular residential transactions and excludes properties with four units or more. Previously, sellers typically paid a commission of 5-6% of the home’s sale price, covering both agents.
Lin believes that maintaining the current commission payment structure benefits sellers by ensuring that they cover the commissions for both agents, which ultimately attracts more buyers and facilitates the selling process. He emphasizes the potential challenges for buyers if sellers reduce agent commissions or shift the payment burden, as many buyers may not have additional funds to cover their agent’s commission on top of their down payment.
With nearly 20 years of real estate experience in the Greater Philadelphia area and New Jersey, Lin has consistently been recognized as a “Five-Star Agent” by Philadelphia Magazine and has received regional and Platinum Club awards from Better Homes Realty. He points out that the current real estate market has remained relatively stable, but cash buyers may find opportunities in negotiating prices for properties they are interested in purchasing.
In terms of market predictions, Lawrence Yun, Chief Economist at NAR, forecasted a 9% increase in home sales in 2025 and a further 13% increase in 2026. He anticipates a stabilization of mortgage rates at around 6% and suggests that the most severe housing inventory shortages will come to an end. Additionally, there may be multiple interest rate cuts by the Federal Reserve in the next two years to further stimulate the market.
Yun stresses the importance of homeownership in wealth accumulation, noting that the median net worth of homeowners is significantly higher compared to renters. He encourages individuals to enter the property market early to begin building wealth over time.
According to a report by Freddie Mac on November 14, the average 30-year fixed-rate mortgage stands at 6.78%, a decrease from 7.44% last year, while the 15-year fixed-rate mortgage averages 5.99%, lower than the previous year’s 6.76%.
Yun suggests that if the new government can effectively manage budget deficits, mortgage rates may continue to decrease, creating more opportunities for potential buyers. Lin, who speaks English, Mandarin, and Fuzhou dialect, holds PA/NJ real estate licenses and offers free consultations for any real estate-related inquiries at 267-438-1887 or at 2571 Huntingdon Pike, Huntingdon Valley, PA 19006.