NAR lawsuit is a huge win for Sellers

If home Buyers thought the industry was bad - it’s about to get way worse if you’re a Buyer

The NAR lawsuit makes Buyers Agent comp all negotiated. So if you - Buyer can’t pay a fee to the Buyers Agent at closing - then I guess you’ll go unrepped?

Unless the Seller offers to pay it. But it has to be negotiated per house

Many Buyers won’t have the cash to pay a Buyers Agent. So they’ll go unrepped or the Listing agent will negotiate to get paid by the Seller so no independent representation. And if the Listing Agent gets paid MORE to also rep the Buyer then it creates really perverse incentives to the Listing Agent.

And no I can’t just charge Buyers a fee upfront to work with me - we can’t just create new comp models as Agents - it’s regulated. In CA I CANT charge clients an engagement fee - so I work for free until a transaction closes So if Sellers let their Listing Agent rep all the Buyers instead for a reduced additional fee - and you think this is a win for you Seller

I think we’re gonna see way more lawsuits

https://twitter.com/juliechangre/status/1757095685957251245

BEFORE you file your TAXES- READ THIS!

If you are self employed- please read this post IF you want to buy a house this year, get a mortgage

I'm tired of reading the posts of if you make 500k but are self employed, its harder to get a mortgage than someone making 50k

First off, please think about how ridiculous your post sounds.

You SHOULD have a lot more in savings than someone making 50k and should be able to qualify to buy a lot more house.

Everyone qualifies on Debt to Income ratio. 50% DTI assuming you have no other debt

50k = $4,166 /month. 50% = $2083 you can contribute to housing

500k= $41,667 / month. 50%= $20,833 you can contribute to housing

OH BUT 500k person wrote off almost ALL your income so now you look poor to the IRS

Ok, so which is it? Are you poor, a bad business person who makes no money, OR do you have lotsa money and therefore GSEs aka Fannie/Freddie should loan you $1M?

Still here? Ok, so ya still want to buy a house- keep reading So here's the short answers

YES you can get a mortgage. Guess how many of us in Real Estate are self employed and own property?

A LOT of US!

Yes you have to show income!
Yes you have to share your financials
No the mortgage rate does NOT have to be higher
No the mortgage doesn't take forever to close

If you want to read more including what happens if you are paid in bonus or stock comp- read the details in this post!

juliechang.substack.com/p/yes-you-can-…

“Texans actually pay more in taxes than Californians do, unless those Texans are in the top one percent of all earners. “

chron.com/news/houston-t…
I love how no one reads the article

And tells me I’m confused - I shared a graphic and a quote from the article with NO COMMENTS

Take it up with the Houston Chronicle if you find their journalism suspect

If you’re young and trying to buy a home in San Diego or any other of the top most expensive cities in America.

And wondering how you’ll ever afford it - here’s some realities

* You live in an expensive city. Stop reading national news or hearing about young people buying huge homes in the Midwest, the south for under 500k or 50k.

* Not the first generation who couldn’t afford to buy a house in an expensive city even by your 30s.

Those of us who are young Gen X, almost no one in my peer group living in expensive cities were buying homes before 30. Some before 40.

Many of us were paying off student loans, credit card debt from early years living in NYC, SF, LA etc.

Trying to save and build enough cash not just for a down payment but for a cushion. Some of us graduated during the .com bust and had job offers rescinded or got laid off shortly after graduation.

Then the GFC happened. So some of us definitely wanted a sizeable rainy day fund

* Yes our peers who stayed in TX or or lived in cheaper places bought huge homes or apartments in their 20s

But we weren’t comparing ourselves to them because we know we were living in the most expensive cities in the US.

* A lot of people bought their 1st home far far from their dream. They bought in neighborhoods they wouldn’t have considered for rent. They bought condos or homes in really poor condition to fix it up

* A lot of us had to wait it out. We waited, saved, bought after the GFC
How are younger people buying now? Well it depends on how you define young but here’s some commonalities

* You’re competing against intergenerational wealth. Yes some people have grandparents / parents who are gifting them 100ks or more. Or just buying them a house outright in cash

* Plenty of DINKs - dual income no kids who both make 6 figures and have been saving for 10+ years. Or have kids but just very high earners

* Owned a home in a less expensive city that appreciated massively and they sold / having a lot of equity to bring into their current buy

* Extreme savers. Single people - people who have just diligently saved for many years

* Are willing to house hack. They currently rent a house with roommates. They buy a comparable house and take their roommates with them

They buy a 2-4 unit. 75% of the income on the rentable units can help you qualify to buy. Starting in Nov you can put just 5% down on a conventional loan.

* In general you’re thinking but I just want to buy a small starter home. You’re also competing against Boomers downsizing who want that 1 story home in a walkable neighborhood near culture, restaurants, their kids/grandkids. Investors. 2nd & 3rd homes - SD attracts lots of wealthy non primary homeowners who wants a piece of SD

Spoke to Axios on this topic

Reading lots of can’t get a mortgage but qualify on income, credit, DTI & lots of self employed (SE) having problems

Here are tips on finding that unicorn lender

1. Ask for referral. What were fees, rate at par (no pts), how long did it take to close, issues/how resolved? 🧵 2. Call each lender & ask questions above. Confirm they lend on what you want to buy. How many SE loans? Ask them for addresses of purchases closed- if they say they can close in 15 days go look at Pending/closed dates. Ask them for client or realtor references. Call them