How Will The Realtor Commission Changes Impact Home Buyers? - Money Q&A
Sep 23, 2024
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Discover the shifting landscape of realtor commissions and their impact on homebuyers. Learn effective budgeting strategies that maximize credit card rewards and achieve financial stability. Get insights on whether to fire your Vanguard advisor and how to handle over-contributions to retirement accounts. This conversation offers practical tips for navigating both realtor fees and investment management.
36:12
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Quick takeaways
Recent changes in realtor commissions will require buyers to negotiate agent fees directly, potentially increasing their upfront costs significantly.
Proper credit card budgeting involves treating transactions as cash available and using tools like Monarch Money for better financial oversight.
Deep dives
Importance of Life Insurance
Securing life insurance is essential for planning your family's future. With annual policies starting at only $292 for $1 million of coverage, individuals can achieve financial peace of mind. The process is made simpler through online marketplaces like PolicyGenius, which guide users through insurance options without the hassle usually associated with traditional insurance companies. Same-day approvals and the absence of medical exams make life insurance accessible and easy to obtain.
Realtor Commission Changes
Recent changes to realtor commissions are set to alter the dynamics for both buyers and sellers. Traditionally, sellers paid commissions for buyers' agents; however, new rules require buyers to negotiate agents' fees directly. This shift could lead to buyers bearing more upfront costs, such as 2 to 3% of the sales price for their agents, thereby increasing overall expenses associated with home purchases. Additionally, this transition may foster more negotiations and transparency in the home-buying process.
Managing Credit Card Spending
Using credit cards effectively requires careful tracking of expenses to avoid overspending. It is advisable to treat credit transactions as if the cash is already available in the bank, meaning expenses should be monitored and budgeted beforehand. Automated budgeting tools, like Monarch Money, can help manage and alert individuals about their spending limits, ensuring better financial control. Creating a habit of weekly credit card payments not only helps prevent interest accumulation but also keeps one informed about their financial standing.
Navigating IRA Over-Contributions
When over-contributing to an IRA, several corrective options are available to ensure financial integrity. Filing Form 8606 tracks non-deductible contributions, thus avoiding double taxation upon withdrawal. Alternatively, one may elect to withdraw excess contributions timely to avoid penalties while still facing taxes on any earnings generated. Lastly, considering a Roth conversion is a viable strategy, especially if future income is expected to drop, allowing for tax-free growth eventually.
In this episode of the Personal Finance Podcast Money Q&A, we're going to talk about how will realtor commission changes impact homebuyers?
Today we are going to answer these questions!
Question 1: How will the new realtor fees impact me as a buyer?
Question 2: How to properly budget while spending on a credit card?
Question 3: Should I Fire My Vanguard Advisor?
Question 4: What do I do If I Over-contribute to a Retirement Account?
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