How will the NAR lawsuit affect rental property investing for landlords? Philadelphia property manager Joe White says it won't affect a thing.
In a recent episode of the Grow Real Estate Investing Podcast, Joe White, owner of Grow Property Management—a leading Philadelphia property management company—addressed various comments and questions related to the impact of the National Association of Realtors lawsuit on the real estate sector, particularly in real estate investing. White's insights are invaluable for anyone interested in the dynamics of property management and investment in the Philadelphia area.
White begins by clarifying that the lawsuit will likely have zero impact on real estate practices, including investment strategies. He explains that in real estate transactions, it is typical for the seller to bear the commission costs, not the buyer, which aligns with general practices in Philadelphia. These costs, including transfer taxes, are negotiable and not preset, allowing for flexibility in transactions. This flexibility is crucial for sellers who aim to maximize returns on their properties.
In Philadelphia, the standard practice often involves splitting the transfer tax between buyer and seller, a custom that adds to the collaborative nature of real estate transactions in this region. White emphasizes the importance of adhering to traditional procedures like utilizing real estate agents and paying necessary commissions to facilitate the most profitable and efficient property sales. He argues that diverting from these norms can significantly reduce a seller’s profits, making it essential to engage with the real estate market through conventional channels.
Grow Property Management stands out in the Philadelphia property management sector by not only managing properties efficiently but also integrating their listings into the MLS (Multiple Listing Service). This integration allows real estate agents to easily find suitable rental properties for their clients, enhancing the utility and accessibility of properties managed by Grow. White assures that despite the lawsuit, his company will continue to pay commissions to buyer agents, maintaining the status quo that has benefited property owners and investors alike.
White’s commentary extends beyond the logistics of transaction fees and commission structures; he also critiques the National Association of Realtors, suggesting that their policies have not always aligned with the best interests of property owners and real estate professionals. His candidness about the barriers within the real estate industry, particularly those introduced by national organizations, is refreshing and indicative of his commitment to transparency.
Moreover, White shares personal anecdotes about his initial experiences in real estate, highlighting his rapid transition from novice to licensed agent in a mere 14 days. His first transaction, a complex short sale of a condominium, was a daunting challenge due to his limited experience at the time. This experience underscores the importance of adequate training and support for real estate professionals, a standard that White now upholds in his own practice. By leveraging resources like real estate attorneys and continuous professional development, White has significantly enhanced his competence and the quality of service offered by Grow Property Management.
In summary, Joe White of Grow Property Management provides a reassuring perspective on the resilience of real estate practices in the face of legal challenges and underscores the ongoing value of traditional real estate procedures in Philadelphia. His company’s proactive approach to property management, commitment to fair commission practices, and dedication to continuous improvement set a high standard for property management companies in Philadelphia. White's insights not only shed light on the specifics of managing rental properties in a dynamic market but also offer valuable lessons on the importance of adaptability and ethical practices in real estate. As usual, White concludes with a positive note on investing, encouraging his audience to remain proactive and informed about their real estate investments, ensuring a robust and profitable future in this field.
