If you’re plugged into the market, you might’ve caught wind of Fannie Mae and Freddie Mac’s latest announcement. Brace yourselves because it’s about to shake things up for agents, buyers, and sellers alike.

Here’s the situation: as of April 15, 2024, Fannie and Freddie decided to switch things up regarding buyer’s agent commissions for VA and FHA mortgage loans. They’re saying, “Hey, these commissions won’t count towards what buyers can chip in for closing costs anymore.”

What does this mean for you?

Agents: If you’re an agent, especially working with buyers, this tweak means you’ve got some juggling to do. Those buyer’s agent commissions won’t be factored into what buyers can pitch in for closing costs anymore. It might mean some extra negotiation hustle on your part to sort things out between buyers and sellers.

Buyers: Heads up, buyers! This change could affect what you need to cough up for closing costs. Since those agent commissions won’t be counted anymore, you might need to adjust your budgeting a tad. Not a deal-breaker, but definitely something to be aware of when crunching the numbers.

Sellers: Even though buyer’s agent commissions are out of the IPC limit game now, it’s still essential to stick to local customs when it comes to fees and closing costs. Chatting with your agent and understanding the lay of the land will help you glide through the selling process smoothly.

Bottom line? This move by Fannie and Freddie is a reminder that real estate rules are always shifting. Whether you’re an agent, buyer, or seller, staying in the loop and rolling with the punches is key. Keep those lines of communication open, stay flexible, and you’ll ride this wave just fine.