NJ Realtors® Weekly—July 17

Feature Story of the Week

Race and Home Buying Report Reveals American Homeownership Rate Has Increased

Over the past few years, homeownership rates amongst minority groups increased in spite of rising mortgage rates.

According the National Association of Realtors^® 2024 Snapshot of Race and Home Buying in America Report, Asian Americans saw the biggest homeownership rate increase. In 2012 the Asian American homeownership rate was 57.2% and in 2022 it was 63.3%. This increase translates to 1.5 million more Asian Americans purchasing homes in the past 10 years.

The homeownership rate among all Americans increased from 63.9% in 2012 to 65.2% in 2022. Read the full report here.

1. NJ Realtors^® Clarifies the Real Estate Consumer Protection Enhancement Act Compensation Disclosure Rule

Which Section of the New Law? We've received questions pertaining to cooperative compensation under the new law, which takes effect Aug. 1.

What Should I Know? Sellers’ agents can no longer disclose compensation in Multiple Listing Services or notify MLSs about cooperative compensation, if prohibited by MLS policy.

Click here for the new law.

2. New Law FAQ

Tell Me More: Please read the questions and answers below for additional information about when the law goes into effect, seller disclosure requirements, and dual and designated agency.

When does the Real Estate Consumer Protection Enhancement Act go into effect?

The law goes into effect on Aug. 1 and the National Association of Realtors^® mandatory practice changes must be implemented by Aug. 17.

Who is required to complete the Seller's Property Condition Disclosure Statement?

The Real Estate Consumer Protection Enhancement Act requires all sellers (including banks, estate administrators, and other entities) to disclose, on the Seller’s Property Condition Disclosure Statement, any known condition of the property to the best of their knowledge. While certain disclosures (ex. flood risk) must be disclosed beyond actual knowledge, most of the Seller Property Condition Disclosure Statement relies upon a seller’s actual knowledge. If a seller doesn’t have actual knowledge, the seller can answer ‘unknown.’ Then it is up to the buyer to gauge whether to rely upon or trust whether the seller’s answers are complete/truthful. A seller’s refusal to make the proper disclosures is a violation of the law.

Is Disclosed Dual Agency still allowed?

Yes. Disclosed Dual Agency is still allowed under the new law, which allows an agent to work with both the seller and the buyer with limited fiduciary duties to both sides. The law also introduces an additional form of agency, designated agency, which enables a brokerage to appoint different agents within the brokerage to represent both the seller and the buyer with full fiduciary duties at the clients' request.

3. Realtors^® Report Communicating With Clients through Text Messaging the Most

Please Elaborate: According to the National Association of Realtors^® 2024 Member Profile, Realtors^® most often communicate with current clients via text messaging at 94%, telephone at 91%, and e-mail at 89%.

What Else Does the Profile Say? 72% of Realtors^® report having a business website where they post listings, information about the home buying and selling process, and more.

Read the highlights here.

4. Boost Your Instagram Engagement and Implement Reels into Your Social Strategy

Tell Me More: Whether you're a social media guru or just downloaded Instagram, the platform continues to prioritize short-form videos no matter your following.

Where Should I Start? Try these three video ideas to get started.

Day in the Life: Show potential clients what it's like to work with you and film yourself during your work day.
Market Update: Download your local market report at njrealtor.com/data and discuss what your clients are experiencing in the current market.
Small Business Feature: Become the go-to neighborhood resource and talk about your favorite small businesses in your town.

5. NAR Responds to the Biden Administration's Rent Control Plan

What Should I Know? President Biden's administration is urging Congress to pass legislation requiring certain rental housing providers to limit rent increases to 5% or below.

What's NAR's Stance? The National Association of Realtors^® issued a statement strongly opposing rent control policies in the U.S.

According to NAR's latest Washington Report, "Price controls, which shift the full burden of economic challenges onto housing providers, are a failed policy solution for a shortage of available and affordable housing, as they discourage developers from building new rental properties and drive small, “mom-and-pop” housing providers from the market."