NAR settlement

Real Estate News 1% commission

The New Real Estate Law and How You Can Benefit from Our Services

Starting August 17th, 2024, new real estate laws settled by the National Association of Realtors (NAR) will prevent sellers from paying commissions to buyer's agents. This shift makes it essential to choose a reliable and cost-effective buyer representation service. Here’s how you can benefit from working with us during this transition.

Expert Guidance and Market Insights

Navigating the real estate market can be complex, especially with new laws in place. Our experienced team offers expert guidance and in-depth market insights, helping you make informed decisions every step of the way.

Affordable 1% Commission

We charge a flat 1% commission for buyer representation, significantly lower than the traditional 2.5% to 3%. On a $500,000 home, this can save you up to $10,000—funds you can use for moving expenses or home improvements.

Personalized Service and Strong Negotiation Skills

We provide personalized service tailored to your needs, handling all negotiations, paperwork, and logistics to ensure a seamless experience. Our strong negotiation skills ensure you get the best possible deal, maximizing your investment.

Comprehensive Support

From initial consultation to closing, we offer comprehensive support, assisting with property inspections, financing, and closing procedures. Our commitment to excellence means you can trust us to manage your real estate transaction efficiently.

Why Choose Us?

  • Cost Savings: Save thousands with our flat 1% commission.
  • Expert Guidance: Confidently navigate the new real estate laws.
  • Personalized Service: Receive tailored support that meets your needs.
  • Market Expertise: Leverage our local market insights.
  • Comprehensive Support: Enjoy a seamless home-buying experience.

With the upcoming changes in real estate laws, partnering with us ensures expert guidance, significant savings, and personalized service. Contact us today to achieve your homeownership goals.

 

NNN Commercial Leases vs Gross Leases

NNN vs gross green

Understanding NNN Commercial Leases and Gross Leases: A Comparison

When venturing into the world of commercial real estate, understanding the different types of leases available is crucial for making informed decisions. Two common types of commercial leases are NNN (Triple Net) leases and Gross leases. Each has its unique structure, benefits, and drawbacks, which can significantly impact both landlords and tenants. This blog will provide a detailed comparison of NNN leases and Gross leases, helping you navigate your options more effectively.

What is a NNN Lease?

A Triple Net (NNN) lease is a type of commercial lease agreement where the tenant is responsible for paying the three "nets" – property taxes, property insurance, and maintenance costs – in addition to the base rent and utilities. This lease structure transfers most of the property-related expenses to the tenant, making it a popular choice for landlords who want to minimize their involvement in property management.

Advantages of NNN Leases:

  1. Lower Base Rent: Since tenants cover additional expenses, the base rent for NNN leases is typically lower compared to gross leases.
  2. Predictable Income for Landlords: Landlords benefit from a stable and predictable income stream without worrying about fluctuating property expenses.
  3. Incentive for Tenants to Maintain Property: Tenants have a vested interest in maintaining the property since they bear the costs of repairs and maintenance.

Disadvantages of NNN Leases:

  1. Variable Costs for Tenants: Tenants face variable and sometimes unpredictable costs, which can complicate budgeting.
  2. Management Complexity: Tenants must manage and pay multiple expenses, adding complexity to their financial planning.
  3. Higher Initial Costs: Initial outlays for property taxes, insurance, and maintenance can be significant for tenants.

What is a Gross Lease?

A Gross lease, also known as a full-service lease, is a type of commercial lease where the landlord covers most, if not all, property-related expenses, including property taxes, insurance, and maintenance. The tenant pays a single, all-inclusive rent amount, making it simpler for tenants to manage their finances.

Advantages of Gross Leases:

  1. Simplified Budgeting for Tenants: With all expenses included in the rent, tenants can easily predict their monthly costs.
  2. Lower Management Burden for Tenants: Tenants do not need to worry about managing and paying for additional expenses.
  3. Potential for Cost Savings: If the property-related expenses are lower than anticipated, tenants might pay less overall compared to a NNN lease.

Disadvantages of Gross Leases:

  1. Higher Base Rent: To cover the additional expenses, landlords typically charge a higher base rent in gross leases.
  2. Less Incentive for Tenants to Conserve: Since tenants are not directly paying for property expenses, they may be less motivated to conserve resources and maintain the property.
  3. Risk for Landlords: Landlords assume the risk of fluctuating property expenses, which can impact their profitability.

Key Considerations for Choosing Between NNN and Gross Leases

  1. Financial Predictability: Tenants who prefer stable, predictable monthly expenses may favor gross leases, while those willing to manage variable costs for potentially lower base rent may opt for NNN leases.
  2. Property Management: Landlords looking to minimize their management responsibilities may prefer NNN leases, while those willing to manage property expenses may find gross leases more suitable.
  3. Lease Negotiation: Both types of leases are negotiable, and the final terms can significantly impact the overall costs and responsibilities. Tenants and landlords should carefully negotiate the terms to align with their financial and operational needs.

Conclusion

Choosing between a NNN lease and a Gross lease depends on various factors, including financial predictability, management preferences, and overall business strategy. Both lease types offer distinct advantages and disadvantages, and understanding these can help tenants and landlords make informed decisions that best suit their needs. Whether you're looking for simplicity and stability with a gross lease or lower base rent with a NNN lease, careful consideration and negotiation are key to finding the right commercial lease agreement.

PAYAM SHIRAZI, Broker
DRE: 01925601

Call: (949) 436-3936

LOS ANGELES / ORANGE COUNTY

[email protected] | payamhomes.com

Home prices on the rise

Home prices rising. 1% listing

In February, U.S. home prices experienced a significant surge, marking the most substantial increase in nearly two years, as reported by federal housing authorities on Tuesday. This spike underscores the persistent impact of limited housing supply on the nation's real estate market.

According to the Federal Housing Finance Agency's monthly report on home prices, prices rose by 1.2% from January, marking the largest month-to-month growth since April 2022. On a year-over-year basis, prices soared by 7%, representing the sharpest increase since November 2022.

Anju Vajja, deputy director for FHFA's division of research and statistics, highlighted the rebound in U.S. house prices in February, following a slight decline in January. Vajja noted that all nine census divisions experienced price appreciation over the past 12 months, with New England and the Middle Atlantic divisions showing double-digit growth.

Although the supply of homes on the market has seen gradual improvement in recent months, it remains significantly below historical norms. This shortage persists because many homeowners secured mortgages with low interest rates before the Federal Reserve initiated its rate-hike cycle over two years ago. The prospect of financing new homes at rates exceeding 7% for a 30-year fixed-rate mortgage deters many homeowners from relocating or upsizing, contributing to the limited supply.

Furthermore, the sluggish pace of home construction exacerbates the housing shortage, preventing new properties from entering the market. These factors collectively contribute to a national housing shortage and affordability challenge.

The surge in home prices in February may not be well-received by the Federal Reserve, which has encountered hurdles in its efforts to curb inflation in 2024. While home prices do not directly influence the inflation measures tracked by the U.S. central bank, they indirectly contribute to metrics such as imputed rents included in inflation indexes, which have remained persistently high.

PAYAM SHIRAZI, Broker
DRE: 01925601

Call: (949) 436-3936

LOS ANGELES / ORANGE COUNTY

[email protected] | payamhomes.com

1% Commission Listing Service

1% commission listing service

1% COMMISSION LISTING

 

2024 SUMMER SPECIAL: Our mission is clear – to redefine the real estate experience by offering unparalleled service at a remarkable commission rate. In a world where every percentage point matters, we are here to transform the way you buy or sell your property. Unlike traditional real estate services that charge hefty commissions, we have redefined the game with a flat 1% commission rate listing. Yes, you read it right!

We will save you thousands without compromising on quality service.

CALL NOW TO SEE IF YOUR PROPERTY QUALIFIES.

(949) 436-3936

PAYAM SHIRAZI, Broker
DRE: 01925601

Call: (949) 436-3936

LOS ANGELES / ORANGE COUNTY

[email protected] | payamhomes.com