In OneLaw’s October newsletter, Attorney Chiara LaPlume discusses residential real estate updates.

Read the full October 2024 newsletter HERE.

A text version is below.

The weather is unpredictable but at least we are still able to enjoy leaves changing color, apple picking, and Halloween!

In our newsletter this month, Attorney Chiara LaPlume checks in with updates from the world of residential real estate.

As always, OneLaw is dedicated to serving the personal legal needs of families and individuals across a variety of practice areas. Let us know how we can help you. Visit our website (https://www.one-law.us) or give us a call at 617-831-4355.

Peter A. Hahn, Esq.

Principal Attorney

Updates from the World of Real Estate

by Chiara LaPlume, Esq.

Rate Cuts: What do they mean for mortgage rates?

On September 18, 2024, the Federal Reserve announced a deep rate cut of 0.5%. To over-simplify, the Fed sets the interest rate at which the Fed lends money to banks. The banks then in turn lend that money to us – with a markup. When the Fed rate changes, we see a direct impact on variable rate loans, such as credit card rates, home equity line of credits where the rate changes monthly, and the interest that we earn on our savings account. But what about mortgage rates? Since mortgages are usually repaid on average in about eight years (through either the sale of the home, refinance, or borrower payoff), there is no direct link between the Fed rate changes and mortgage interest rate changes. Historically, the closest correlation for mortgage rates in the market is the 10 year U.S. Treasury bond. Make no mistake, mortgage rates have decreased following the Fed’s rate cut announcement, even if the two rates are not directly linked. If you are wondering if it might be time to refinance your existing mortgage, reach out to your loan officer and request both a quote for a new mortgage rate and estimated closing costs to refinance. Your closing costs will effectively be your cost to lower your rate. Should you choose to refinance your mortgage, you can often choose the law office to handle your refinance, even if your loan officer does not volunteer that you have a choice. Please consider requesting that your lender assign OneLaw to handle your closing – we would love to help you!

Real Estate Agent Commission Update

The National Association of Realtors settlement went into effect on September 16, 2024, so that now the commission fee offered by a seller to a buyer’s real estate agent is not published on the MLS listing system. As a seller, you can expect a discussion of whether or how much you may wish to compensate a buyer’s agent as you put together your listing agreement with your listing agent. (The choice was always there, but you may have more questions to evaluate your options.) As a buyer, you can expect a buyer’s agent to ask that you sign an agreement clarifying how you expect the agent who is helping you to be paid. If you are not asked to sign an agreement when you begin working with a buyer’s agent, you will certainly be asked to sign an agreement before viewing a property. Are real estate agent commissions worth it? To summarize, yes. Professionals who have the expertise to help you through a stressful and costly transaction are a good investment. You can feel free to openly discuss with your agent how much they will be paid, what services you can expect for their fee, and how that payment is going to be structured. If you have any questions, or would like help in reviewing a listing agreement or buyer’s agreement, feel free to reach out to us.

Spooky Fun Fact for Halloween

In Massachusetts, there is a law stating that real estate brokers and sellers are under no legal obligation to disclose that a property for sale is a haunted house. Or, to put it in legal terns, that “the real property has been the site of an alleged parapsychological or supernatural phenomenon.” M.G.L. Chapter 93, Section 114.

Attorney Chiara LaPlume represents clients in residential real estate matters for OneLaw. She is also a title agent.

Time to update your estate plan? Have you been meaning to draft your will? In need of a health care proxy or power of attorney? Or a trust to manage your assets or for someone with special needs? Contact OneLaw for a consultation.

OneLaw represents clients in education, estate planning, residential real estate, civil rights, Juvenile Court, family law, criminal and victim rights, discrimination, special needs planning, guardianship, civil litigation, child welfare, probate administration, Title IX, HPO/RO, and related matters.