Father, thank you for the gift of a new day! Thank you for giving me meaningful work.

Lord, please bless and order my schedule today.

Thank you for my scheduled appointments. Let me be your ambassador of love and light.

Thank you for any unscheduled yet divine appointments. There are no accidents or coincidences in your master plan.

If an appointment cancels, help me to be gracious. You have something better planned!

Help me honor you with my time, including a regular Sabbath day of rest. Thank you for giving me enough margin to spend with loved ones and to refresh my body, mind, and spirit.

Thank you for giving me my daily bread.

You are a generous and loving God. You know my needs. Thank you for giving me more than enough.

“My” clients are your clients. Bless our buyers and their offers. Bless our sellers and their listings.

I trust “my” income to you. Help me not to worry, and instead focus on working hard, as unto you. You are Jehovah Jireh, my provider.

Lord, remind me of Job’s words: “God gives, God takes. God’s name be ever blessed.” (Job 1:21 MSG)

Every client, every transaction, everything I have is from you—I bless your name, God.

I will praise you even when you take away a client or transaction. Help me not to hold on tightly to anyone or anything.

Please give me your favor and protection today.

As I drive to appointments today, please keep me safe. Thank you for blessing me with a good, working vehicle.

Thank you for going ahead of me, following behind me, and placing your hand of blessing on me.

Father God, I surrender myself and my business to you today.

Let your will be done, not mine.

May all things work for good, in your perfect timing.

In Jesus’ name, Amen.

Something radically new for me this year is that I have joined forces with a new real estate partner, Sora Lim!

During 2025, Sora and I shared a few clients and transactions together successfully. We discovered we each have different strengths that benefit and complement our partnership. We began praying about expanding our partnership, and the end result is we are sharing everything in 2026: all clients, transactions, income, and expenses will be split right down the middle. It’s a total leap of faith!

In the industry, there are more and more teams and partners like this, but each team member may have a different role or stake. Sora and I agreed that instead of dividing various tasks 50/50, we will both be “all in” and do whatever tasks need to be done. 200% is our motto!

Our clients are winning

Two agents for the price of one. Two agents to cover showings. Two agents ready to write up a time-sensitive offer. Two responsive agents. Two sharp minds and two caring hearts working for our clients.

Teaming up has taken our individual real estate practices to a whole new level—for the better. Of course, there have been a few miscommunications and misunderstandings as with any relationship. But we believe this partnership is guided by God and grounded in love, grace, and forgiveness. Sora was actually ready to leave real estate when a series of divine promptings led her to me.

To introduce our partnership, Sora and I put together a fun Q&A bio. Here are a few questions we both answered:

What did you do prior to real estate?

Ali: Before becoming a full-time agent in 2012, I worked in hotel and retail management, taught English in Japan, and ran a small local TV station. I credit these backgrounds to honing the analytical, service, and people skills I use in real estate. My various careers also usually had some aspect of teaching or training.

Sora: I taught elementary school and found it especially rewarding to work with students from diverse backgrounds in China, England, and the U.S.

Why do you love real estate?

Sora: I enjoy real estate because it lets me work closely with people and support them through one of the most meaningful decisions of their lives. Every client has a story, and I deeply value the trust they place in me to listen, understand their goals, and walk alongside them throughout the process.

Ali: Real estate market knowledge, analysis, and experience are just the starting point for the actual work. I enjoy all of these, but the true heart of the job is interacting with our clients and their families, and industry peers. I look at these relationships as lifelong friendships, not something transactional.

What do you appreciate about your partner?

Ali: I knew Sora would be an excellent partner because she not only has the intelligence and skills for the work, she is kind and caring. We have the same moral compass and values, so there is an implicit trust that we are both giving our clients our best and our all. As a team, we accentuate our strengths and minimize any weaknesses and work very well together! Our clients are the winners and beneficiaries!

Sora: Ali is a meticulous and highly experienced professional who is outstanding at what she does. More importantly, she leads with integrity and a genuine desire to serve. Through many client communications I’ve been included on, I’ve seen firsthand that Ali is thoughtful, thorough, and committed to protecting her clients’ best interests, even long after closing. She also generously supports the agents at 20 Degrees North by providing training, resources, and mentorship.

In keeping with our New Year theme, what’s new with you?

Sora: This may be surprising, given my profession, but I’m a first-time homeowner. Five years ago, my husband and I were living in China. We came to Hawaii to have the support of my family as we welcomed our first children, twin boys, and then COVID happened and we were unable to return. My parents have graciously taken care of us since 2020, giving us space to discern what our next steps ought to be. Our family are fully committed now to life in Hawaii and excited to be planting new roots here!”

Ali: What’s new for me is watercolor painting! I reawakened the child painter in me last summer. It has been humbling not to be good at something but motivated to practice and improve. It can take me dozens of tries and versions before I finalize a painting—now I understand why there are so many versions of Monet’s water lilies! The inspiration for what to paint has come from a Bible verse or a song.

I look forward to connecting with you in 2026 and introducing you to Sora! Please reach out any time with real estate questions or help, or just to say hi. Aloha, Ali

Subscribe now

Thankful for dementia?!

I got to visit Dad three times this year! When we moved him into a senior apartment building last year, he wanted to take lunch and dinner in the dining hall downstairs but prepare breakfast himself in his room. During my February visit, I noticed he was getting more forgetful and hadn’t eaten breakfast several days. I asked him if he would like to start having breakfast downstairs. He agreed, so I made the arrangements.

On our first call after I got home, he was excited to tell me the breakfasts are great! Then, something weird happened. My Dad said, “Thank you for helping me with breakfast.” I was stunned. Tears welled up as I struggled to reply. For the first time in my life, my father had thanked me with genuine feeling.

Growing up, I experienced my father as stern and unfeeling. Although I knew deep down he loved me in his Japanese way, there weren’t many outward displays of affection. I am much more like my father in this way than I care to admit. But this year, God began to change both of us.

Softer, kinder, and gentler

As dementia slowly takes over his cognitive and conversational abilities, my father has grown softer, kinder, and gentler. That first, heartfelt thank you was the beginning of many more. On every call the following week or two, he continued to thank me for the breakfasts, always with great sincerity. Our relationship transformed because as Dad changed, I also became softer, kinder, and gentler toward him.

During my August visit, Dad’s heartfelt thank yous continued in person, often accompanied by quiet sobs and tears. Not tears of sadness but of thanksgiving; the kind of tears you weep when something wonderful is happening; when you feel God is working.

My calls with Dad are shorter and shorter. He asks me where I am (Hawaii), and when I am coming to see him (for Christmas!). His ability to make conversation has diminished, but whenever other words fail him, he praises and thanks God with a voice choked with emotion. Praise and thanks have become his predominant language! So, instead of bemoaning his dementia, I am inspired seeing this new, grateful Dad.

John’s Revelation shows everyone in heaven praising God without ceasing:

Revelation 4:8b (NLT)

Day after day and night after night they keep on saying,

“Holy, holy, holy is the Lord God, the Almighty—
the one who always was, who is, and who is still to come.”

Dementia is bringing my father closer and closer to God and this heavenly reality! When I see his eyes water and his face full of peace and joy, I think he can already see heaven’s glory.

God glorified in cancer?!

I believe my friend, Joy, experienced something similar this year on her journey to heaven. Joy was special even before she was diagnosed with cancer; her illness only magnified her “angel on earth” status.

God gives each person talents or gifts which we are to use to glorify Him and love others. One of Joy’s gifts was a keen knack to remember faces, names, and significant dates like birthdays and anniversaries of friends. Able to uplift everyone she met, she used her gift to serve as the ultimate greeter at our church. Anyone who entered was welcomed by the shining face of Jesus—through Joy.

Her warm, personal greetings were not just at church: Joy had genuine connections with virtually everyone she met. A couple days after Joy went to heaven this September, our ohana group gathered to support and grieve with her husband, Jonathan. Many shared their favorite Joy story. One friend who often volunteered to drive her to doctor’s appointments recounted how all the nurses and hospital staff would perk up and rush to say hello whenever she came. Joy would call each person by name and then proceed to ask how their mother/brother/child was doing—she remembered the smallest details about everyone! She affirmed and encouraged others with the love of God, and this endeared her to everyone who came into her orbit.

Throughout her battle with cancer, Joy continued to attend church faithfully. She also attended our ohana group by Zoom every Friday evening. No matter what was happening with her body, she continued to bless others in her singular way. The frailer her body became, the stronger God’s glory shined on her face and in her actions. She was fearless against death; she prayed for a miracle healing while still surrendering herself to whatever outcome God willed. Joy showed us how to live, sick or healthy! Our faith increased as we witnessed hers.

There were hundreds of friends praying and fasting on Joy’s behalf. One of my biggest learnings from Joy’s life is how to “pray without ceasing.” We sincerely believed God could miraculously heal her and show His almighty power. When God took her home, Joy’s battle with cancer was not lost—no!—Joy won her battle and earned her reward of eternity in heaven with God, in her heavenly body forever!

“God must increase and I must decrease” (John 3:30)

Just like my Dad, God’s increasing spirit inside Joy overcame fear, worry, and even pain. Jonathan shared how he received a condolence call from Joy’s hospice doctor. The doctor said most patients with the same type of cancer were in constant, acute pain, and need lots of pain medication. On the rare occasion Joy asked for some, she would take the smallest dose possible. She far outlived her original prognosis of 6-8 months—God kept this angel on earth with us for 35 blessed months!

At her Celebration of Life, Pastor Jordan Seng shared he was happy Joy had preceded him to heaven. If you’re familiar with Jordan’s personality, this type of puzzling comment is usually followed by a profound insight. He explained that by watching how Joy continued to praise and worship God throughout her illness, we learned the godly, gracious way to transition from earth to heaven.

2 Corinthians 4:10, 16-18 (NLT)

Through suffering, our bodies continue to share in the death of Jesus so that the life of Jesus may also be seen in our bodies.

That is why we never give up. Though our bodies are dying, our spirits are being renewed every day. For our present troubles are small and won’t last very long. Yet they produce for us a glory that vastly outweighs them and will last forever! So we don’t look at the troubles we can see now; rather, we fix our gaze on things that cannot be seen. For the things we see now will soon be gone, but the things we cannot see will last forever.

The closer we are to God, the brighter His light shines in us. Like Dad and Joy, even in our earthly suffering we can point others to God. With Jesus in our life, we can accept how temporal our current suffering is in light of our coming eternity in heaven. With faith, we look forward to heaven beckoning us closer and closer.

I pray my father’s and Joy’s stories will bolster your faith, or encourage you to jump into a life of faith! May you find the peace, joy, and love of Jesus this Christmas. Love, Ali

Recently, I met with brokers from two large, national brokerages for lunch meetings to talk about their companies. This is very common in the industry; they are always recruiting. For the past several months I seriously considered and prayed—should I move?

What to consider before deciding to move companies

In my devotional for real estate professionals, The God Layer: Faith Lessons in Real Estate, a chapter called, “Should you leave your company or team?” takes the reader through the following four steps:

1. Count the blessings at your current company;

2. Consider any disappointments at your current company;

3. Consider what might be gained for you/your clients if you move to another company; and

4. Seek and listen for direction—should you stay, or go?

In this post I’ll share how I followed the steps from the book as I considered a possible move.

Scroll to the bottom of this post to find out where you can buy The God Layer for 50% off!

Steps 1 and 2: Blessings and disappointments at the current company

20 Degrees North is extremely different from most brokerages. The things that make it so unique were both blessings and challenges for me. So instead of reviewing the blessings first and the disappointments second, I will combine steps one and two as I share how a couple of the blessings also created disappointment and frustration.

#1: A mixed blessing in being small

Since it’s a small company, there is manager oversight—only if you need or want it. We have a company policy manual, but not much corporate structure. There are almost no mandates from the top. We agents enjoy a lot of flexibility how we want to run our business.

After working at much larger corporations where I often had to ask my boss’ boss’ boss for approvals, it’s been amazing to have autonomy and freedom to make my own decisions how much commission to charge or to give a client a concession. This was the main reason I came to 20 Degrees North: the owner and Principal Broker, Chris Prendergast, shares the same goal for my business: people over profits.

But every so often, I missed a more organized structure and professional culture. One of the brokers who recently recruited me allowed me to join one of their monthly company meetings. Wowee! The agents were engaged and the meeting material was organized with timely industry updates. I was very envious.

Chris’ priority at 20 Degrees North is to glorify God, and because doing things God’s way doesn’t always make sense in this world, the lack of any kind of business model really frustrated me. But that’s because it’s a ministry model.

#2: A pure blessing in my PB

Chris has been a true partner not only in business and running the brokerage, but as a spiritual partner, something I had longed for in the workplace. He is a humble, servant leader who passes the love of God to each agent in the company. I had the *pleasure* of working with Chris in a 6-month long escrow that had extremely high emotions and tension between my sellers and his buyers. Just to share one chapter of the drama: the buyer started off with another agent, fired that agent, and we couldn’t find another outside agent willing to work with him. So Chris stepped in. The only way we got to the finish line was because Chris and I prayed and prayed and prayed, on our own and together.

#3: A painful mixed blessing in agent training

One of my broker responsibilities has been to do most of the agent training twice a month. The blessing has been that I get to relearn and grow personally as I prepare many hours to teach. I have a passion for training and teaching; it’s a joy to see agents learn and mature in their knowledge and professionalism.

When I signed on to do the training, I envisioned great agent participation. A handful of enthusiastic agents embraced the training, but the majority of our agents have not attended. That’s because a large majority of our agents have another full-time job, and real estate is not their priority. This is a double-edged facet of the company’s ministry model: 20 Degrees North welcomes part-time and even very-part-time agents.

I’ve taught large classes at the Honolulu Board of Realtors and the Hawaii HomeOwnership Center, so having only two or three agents show up for a class was demoralizing for me. As a businessperson, the lack of agent motivation has confounded and frustrated me. I often wish for a more professional and engaged culture.

#4 A pure blessing in clients and transactions

We are now well into the 4th year of a slow real estate market. When I left Redfin a year ago, I worried if I would have enough business at 20 Degrees North. But God has continued to provide enough clients and income to keep me busy—but not crazy busy like I’d been in the past. My sales are consistent with the past two years, and next week I’ll close the 17th transaction and over $11 million in sales for 2025. Thank God and my clients, what blessings!

Step 3: Is the grass greener if you move to the new company?

The third step is to consider how you and your clients might benefit if you move.

For me, I probably will not find anything comparable to the missional, faith-based leadership with Chris and 20 Degrees North. There is no greener pasture for me in this respect.

One thing I sorely lack at 20 Degrees North is support staff and slick marketing tools, and so moving to a larger company would hand me these things on a platter. If I stay at 20 Degrees North, I will have to continue working harder (doing everything on my own without support) and being more resourceful.

When I left Redfin a year ago, I gave clients the option to be connected with a new Redfin agent before I left. A few decided they preferred to stay with Redfin, deeming the company more important than the agent.

But so far, most of my clients have chosen to continue working with me regardless the company. Their loyalty is an honor and I will not let them down as I work hard with all my experience, knowledge, skills, and heart. One amazing seller has graciously waited to sell their home in order to satisfy my separation agreement with Redfin. Now that one year has passed, I am free to serve them!

So, moving companies might boost my business, but maybe not. For a few Redfin clients I “lost,” I’ve continued to maintain friendships. So I really haven’t lost anything!

Step 4: Seek and listen for (God’s) direction

After analyzing and contemplating through the first three steps, the final step is to consult with someone wiser whom you trust. That’s God for me! But it could also be a mentor or honest friend—someone who wants only the best for you.

These last several months, every time I met with God to pray about moving, He reminded me how much He’s overflowed my cup this year. At 20 Degrees North, I can make autonomous decisions that tangibly help my clients. I have earned more than enough without my schedule being jam-packed. I could travel more than usual this year to take care of my father. I had time to work on my second book (it’s getting there!), and I even picked up a new hobby: watercolor painting!

Upon reflection, I have been guilty of the sins of comparison and ungratefulness. God has given me so much, and yet I yearned for more, and “better.” Through quiet time before God, I finally came to realize how abundantly blessed I am.

God also showed me that my disappointments had everything to do with my ego and nothing to do with 20 Degrees North. God humbled me that He is still refining me as an agent and a broker. This small company under Chris’ model leadership is the perfect training ground to grow and refine me. God has nudged me that as one of the brokers at 20 Degrees North, this coming year I can work harder to contribute more toward shifting our company culture just a little more professional and engaging.

In conclusion

I hope that if you are considering a change, these four steps will help you. They worked for me: I will be staying at 20 Degrees North Real Estate. And would you believe, after I decided and committed this to the Lord, the next two training classes had well over a dozen agents participate! God is so good.

Psalm 28:7 (NLT)

The Lord is my strength and shield. I trust him with all my heart.

He helps me, and my heart is filled with joy. I burst out in songs of thanksgiving.

The God Layer book is on sale!

If you would like to purchase or gift a copy of The God Layer devotional for real estate professionals, I recently slashed the price to $12 if you order online from my distributor, JPL Books. Order soon for the holidays!

If you want don’t’ mind paying full price ($24), it’s on Amazon. On O’ahu, there are also copies at Logos Bookstore and Bookends in Kailua. If you are on O’ahu and want to meet me in person, please send me an email or text 808-227-8030. I am happy to honor the $12 price, especially for multiple copies. Thank you!

O’ahu minimum rental period changes to 90 Days

As of October 1, 2025, the City & County of Honolulu has increased the minimum rental from 30 days to 90 consecutive days per tenant. This applies for all residential neighborhoods.

Resort zones (some of Waikiki, Turtle Bay, Maunaolu Estates, and Ko Olina) and properties which already had a Non-conforming Use (NUC) license may still allow short-term rentals. Always double check if a condo building has stricter rules than the C&C. Short-term rentals in operation with a license before the ordinance was passed may also be exempt.

Please reach out to me with specific questions about your property. Here’s the link to the actual City Ordinance 25-02 (Bill 62).

Subscribe now

New Kaka’ako condos: Kali’u and Kahuina

I recently attended sales presentations for two upcoming Kaka’ako condo buildings just Ewa/west of Ward Avenue:

• Kali’u is a luxury building which will front Ala Moana Blvd, right in the heart of SALT and the Kamehameha Schools master plan neighborhood.

• Kahuina will be one block mauka, at what will be a major retail hub at the intersection of Auahi and Cooke Streets. The two towers are being developed by Stanford Carr, and will have both “affordable” and market units. Applications are available now, with pricing and sales starting soon.

New homes continue in Kapolei and Waipio

The Kapolei planned neighborhood of H’oopili by D.R. Horton continues to grow, as does Castle & Cooke’s Central O’ahu Waipio neighborhood, Koa Ridge. These new builds often have developer financing with much lower mortgage interest rates than the open market—I am seeing marketing for 5.5% interest.

My connections at these new developments are happy to schedule us to visit the sales centers and models. Let me know if you’re interested!

Real help for first time buyers

I have a buyer currently in escrow who qualified for a $40,000 Down Payment Assistance Loan (DPAL) from the City & County of Honolulu. It is a second mortgage loan, and the buyer has 20 years to pay it off—at zero percent interest!

One of the non-profits I love and support any way I can is the Hawaii HomeOwnership Center. The HHOC also offers DPAL loans as well as homebuyer education and counseling. Check out this link to HHOC Mortgage to see the various DPAL loans (also at zero or 3% interest). Please call me to connect with one of their loan officers to see if you qualify!

Lastly, another client educated me recently how they were able to obtain an OHA “Access to Home Ownership” Loan for Native Hawaiian buyers. If you are on the OHA registry as someone with Native Hawaiian ancestry, check out the link and application here.

The dangers of AI and why I try very hard to avoid it

Are you one of the 800 million (as of Oct 2025) users of ChatGPT? Some similar chatbots are Gemini, Copilot, Claude, and Grok—all are competing to get your data and information to feed their “Large Language Models” (LLM). The more data users willingly input and give it, the more these chatbots learn and improve. Some users are going beyond asking for information and asking for advice and even companionship.

These chatbots come with risks:

• Inquiries, commands, uploaded photos, and conversations are not private—even “temporary” chats are kept for at least 30 days according to ChatGPT’s user FAQ’s. Your personal information can be fed into “the machine” to enlarge the model. Info you give can be used against you, for example, as evidence in a court of law.

• The responses you receive from an AI chatbot are designed to slant positive to make you feel good and keep you coming back. The responses can also be downright incorrect, racist, and biased. “Hallucinations” are presented as factual.

• The chatbots often steer a user down a dark path. So far, two different teen ChatGPT users have committed suicide—aided by the promptings and subtle approval and teaching from ChatGPT how to do it.

• Not just children but many adults are shying away from real, face-to-face human connection anymore, thinking a chatbot can replace friendship or emotional support. Will humanity gradually lose the ability to relate with each other?

• “AI slop” refers to completely fake Facebook posts, articles, photos, and videos. Here’s a short and illuminating podcast I listened to recently.

• One of these types of AI slop are “deepfake” AI impersonations. These videos are created and used by scammers to replicate voice or video likeness to trick friends and family.

When I was about to publish my book, I found someone had copied my marketing about the book and posted an eerily similar book for sale on Amazon. Here’s my post about getting hacked by AI. This is personal for me as a writer!

Writers and others in creative professions (actors, photographers) are railing against AI and trying to protect our intellectual property. I would rather take 30 minutes to write a personal and pertinent business email than entrust it to AI. My second book is taking a couple years and counting, but when it’s done, I can proudly say I wrote it without the help of AI.

If you have received an email from my work email (AliBan1012@gmail.com) recently, you may have seen this message at the bottom:

When you use AI to compose an email or summarize a long document, you are feeding new information for the LLM to use in the future. Just think of all the private client information contained in a real estate contract!

How do you use AI? Are you like me and resisting it? Please comment or message me!

Leave a comment

Incredible /inˈkredəb(ə)l/ adjective

1. Impossible to believe

2. Difficult to believe; extraordinary

3. Amazingly good or beautiful

The first story

Since March of this year, I have written ten letters (via snail mail) to a particular young person I’ve never met—I will call this person Sammy. I can’t give details how or why I am connected with Sammy, but this story is how God gave me a shot of encouragement that my letters have a purpose.

By August, I had written eight letters and received back two. Somewhat discouraged, I prayed and asked God if I should continue writing. I felt His consolation that I should keep trying to befriend Sammy. I resolved to continue, then I also specifically asked God if He would somehow supercharge our bond.

In my ninth letter, I mentioned I would be turning 55 in October. I shared I was feeling God was going to do something new in my life this coming year, similar to what He did when I turned 40. (Click here to read more about that pivotal year in my life.)

After I wrote the letter, I found out Sammy’s birthday is also in October—October 12, same as mine! There’s less than a 1% chance (0.27% to be exact) for two people to have the same birthday. Incredible!

The moment I found this out, I immediately knew God was involved. It also struck me that God knew all along but waited to reveal it until right after I prayed for a deeper connection with Sammy. I could feel God’s love and encouragement to my core.

God shots and God winks

Has something like this ever happened to you? Some Christians call these God winks; others call them God shots. These events have remarkable timing—they are too beautiful and good to be just coincidence.

The Bible tells us the following about God, and it supports the divinity in these God winks and shots:

Jeremiah 29:11 (New International Version)

“For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future.”

Isaiah 46:10 (New Living Translation)

Only I can tell you the future
before it even happens.
Everything I plan will come to pass…

The best thing about a God wink or God shot is the clarity deep in your soul that this was not an accident. God is right there with you!

Subscribe now

My second story

Ever since my mother went to heaven in 2020, my father wanted to live out his remaining days in Japan. In April 2024, we were finally able to grant his wish and he moved to a senior apartment complex near Nagoya, Aichi Prefecture. He could live independently, meals were provided, and we hired help for cleaning and laundry. Dad was able to finish and publish his third book while there!

This year, Dad’s dementia has worsened. We realized he would soon need a care home with more nursing support. Our friends in Aichi tried to help find a suitable care home nearby, but nothing was available.

This July, Dad fell (we think) and suffered a small fracture in his back; he was in severe pain getting in and out of bed. He suddenly needed round-the-clock care for about six weeks until the fracture healed. Thankfully, just next door to his senior apartment was a hospital with a full-service care home for temporary short stays—and a bed was available for him! (As amazing as this was, this is not my second God shot story.)

Concurrently this summer, my brother Don, his wife Esther, and my two nephews made a life-changing move from New York to Japan. I was pleading with God they would choose to settle in Nagoya so they could be near Dad, but Don and Esther based their move on finding the right international school for the boys. Their first choice was in a remote suburb of Osaka.

This school unfortunately didn’t have availability for my older nephew. As we prayed for a spot to open, the family continued forward with the sale of their home in New York (which had an exceedingly blessed outcome). As they moved to Osaka, God provided the spot at the last minute! (As exciting as this was, this is also not my second God shot story.)

So we began considering moving Dad to Osaka instead. Our friend Chieko told us about a Christian-owned care home in Hyogo Prefecture, which is the prefecture to the northwest of Osaka. She sent us the link about the Good Samaritan Care Home. I was moved by the vision of the founder to have a Christian care home, church, and school all in the same complex.

Then I looked up the address on Google Maps. The God shot electrified my heart and spirit: Good Samaritan was just a 15-minute drive from my nephews’ new school!

The existence of a Christian nursing home in Japan is a miracle in itself—less than one percent of Japanese are Christians (0.7%, according to the 2024 Religious Yearbook Shūkyō Nenkan). Also, Osaka is a huge city; it can take over an hour by train from one end to the other. But my nephews’ school is on the northwestern outskirts of Osaka—the exact right direction closest to Good Samaritan! God knew!

My brother visited the facility in Inagawa, a small town in the mountains. The views from the residential rooms are surrounded by green—reminding us of our childhood home in Portland, Oregon. Our family prayed and strongly felt God’s hand in preparing such close proximity between the international school and Good Samaritan.

We nervously inquired if there was a room available anytime soon, or if there was the typical long waiting list. Of course, a room had just opened up! Coincidence, God shot, God wink, whatever you want to call it, God knew! He had a perfect plan all laid out for our family. Our Japan friends and family were amazed and said, “God really loves your father!”

When we moved Dad into his new room at Good Samaritan the beginning of September, I met the Christian owner and mostly-Christian staff. I could feel Jesus’ love in their warmth and welcome. Many of the residents are also Christians—one is a former pastor like Dad. I have so much peace knowing my brother is just a quick drive away. Dad is overjoyed he will see his grandsons often. The first Sunday we all went to the Good Samaritan church next door—what a welcoming, solid church! God knew!

Romans 8:28 (Amplified)

And we know [with great confidence] that God [who is deeply concerned about us] causes all things to work together [as a plan] for good for those who love God, to those who are called according to His plan and purpose.

When you believe God has a good plan for your life, a God wink or God shot is an experience of pure love and confirmation from God. He is smiling, lovingly reminding us He is actively at work in our lives.

Perhaps you’ve experienced a God shot or wink that had no explanation, even if you don’t know if God is for real. God loves you and might be stirring your heart. If you are open, try saying a prayer like I did when I wanted to feel a closer connection with Sammy. You can ask God to help you with anything you might be struggling with right now. God will hear your prayers, and I bet He will give you a God shot or wink if you ask. I’ll be praying for you too!

Share

If you have a God shot or God wink story, I’d love to hear about it! Please message me!

Although the June YTD stats won’t be out for a couple weeks, I wanted to give you a snapshot how the 2025 O’ahu real estate market is shaping up.

TL:DR

We are entering the fourth year of higher mortgage interest rates affecting affordability. Real estate transactions continue at a slow pace.

Inventory is increasing, especially for condos. Condos are becoming more and more a buyer’s market. Prices are flat.

Single family homes (SFH) are stable, in a balanced market. Prices continue to climb. We still see some sellers receive multiple offers when they launch with a reasonable price.

Mortgage rates persist in the 6%-7% range

Affordability and the economic outlook have suffered so far in 2025 due to the new administration’s volatility around tariffs and trade wars, and the downgrading of the U.S. credit rating. Investors are putting their money in safer, longer-term vehicles. As a result, the 10-year treasury yields have risen—and mortgage rates with it. The U.S. coming to Israel’s aid against Iran a few days ago brings even more uncertainty as we enter the second half of the year.

Here’s a review of mortgage rates from 2020 to now (see this page I used for reference):

• The summer of 2020 (COVID) and throughout 2021, rates were crazy low in the 2-3% range.

• Inflation rose and the Fed responded by increasing their short-term benchmark rate starting in the spring of 2022.

• Mortgage interest rates climbed steadily over 3%, then 4%, then 5%. By the fall 2022, the weekly average rates were firmly over 6%, then 7%.

• 2023 and 2024 the rates never went below 6.09%; the highest point was 7.79%.

• So far in 2025, the range has been between 6.62% and 7.04%.

Higher rates, less affordability, fewer sales

At the start of the last three years—2023, 2024, and 2025—we real estate agents have hoped and prayed for a new and better year. Our collective prayers have not been answered. The past three years have seen fewer sales and 2025 is more of the same.

The chart below shows a direct correlation between mortgage rates and real estate activity. I pulled data published by the Honolulu Board of Realtors from May 2019 to May 2025:

The yellow shading is the period of bargain rates during the pandemic, roughly between July 2020 through February 2022. Moving right from the yellow columns to now, interest rates, active inventory, and days on market all increase. Total sales decrease. The biggest swings are in the condo active listings and days on market (red font with blue background).

Share

Less sales, less agents

When we agents meet up these days, we check in with each other, “How’s your business been? Are you surviving?” With the decrease in the number of sales, many real estate agents and loan officers have exited the business or had to find part-time jobs. I have also suffered: my sales went from a high in 2020 of 52 sales, to just 18 in 2024. But I am OK!

I am very thankful for 7 closings so far this year and 5 escrows currently. I thank God for always providing “my daily bread.” I’m doing OK also because I’ve kept my expenses low—a real estate photographer told me recently he’s never seen a top agent driving a Honda. I didn’t know if I should be flattered or embarrassed.

I moved brokerages last November partly so I could better help my buyers by charging less, or possibly nothing at all. (Read about that decision here.) One of my current escrows is my first pro bono client. My buyer client and I are working with a seller who is not willing to pay my commission—the first such seller I’ve encountered since the August 2024 industry commission changes.

“Priced out of Paradise”

Do you remember this American Idol winner from 2023? Even if you remember Iam Tongi well, his audition video is worth watching again! I remember tearing up as he told his family’s story of getting “priced out of paradise.” Did you know there are now more native Hawaiians living on the mainland than in Hawaii?

In 2020, I listed 40 homes and saw firsthand the insane bidding wars my sellers enjoyed. I saw many homes go to investors and non-local buyers with all- or majority-cash offers. They were experienced real estate buyers who felt comfortable waiving home inspections and low-appraisal negotiations. A wider disparity between the haves and have nots has really grown during and since the pandemic.

Many local buyers with 5, 10, and even 20% cash down were often the unfortunate losers of the bidding wars. These are the buyers who continue to be sidelined these past three years, waiting and hoping to someday be able to afford a home. Some have moved away, priced out of paradise. I’ve said goodbye to many friends as I helped them sell their homes and relocate to the mainland.

Never give up, never lose hope

To all my buyers—this agent is full of hope! I am rooting for us and praying market conditions improve. I did a quick analysis of my last ten listings sold (from the end of 2024 to now) and seven of them were sold to local buyers. Also, five of the last seven buyers I represented were locals. This 70% is huge and hopeful!

Buyers, there are opportunities with the softening market—especially with condos—as long as we carefully research any pitfalls such as rising HOA fees. With single family homes, let’s be quick and vigilant to see new listings—the best homes are still seeing multiple offers in the first week or two. Let’s figure out together what affordable means for you and your ohana.

Sellers, the stats and trends here are averages. Let’s drill down to analyze the micro trends in your specific building and neighborhood. Pricing correctly is key—gone are the pandemic days where sellers can be aggressive with the list price—and still get over-asking. I recently had a seller wisely choose a reasonable list price—and we got two offers in the first week. This does not mean we underpriced the home—it meant buyers finally got excited to pull the trigger for a correctly priced listing!

As far as I can tell from following his Instagram, Iam Tongi has yet to purchase a home on O’ahu. If you know him, could you please let him know I’d love to help him and his ohana get back to O’ahu! It is my mission and ministry to help.

Subscribe now

How has your 2025 been so far? I’d love to catch up! Take care and God bless!

Leave a comment

… a year ago in May 2024, The God Layer: Faith Lessons in Real Estate was published. The goal of the book is to encourage and inspire real estate professionals—agents, brokers, coordinators, loan and escrow officers—through the ups, downs, and sideways things that happen to us in our work life. Many of my friends who aren’t in the business have told me there are good stories and practical encouragement for anyone, especially if you are in a relational business or your income fluctuates.

It took over two years and lots of prayer to write, get feedback, edit, proofread, and learn the publishing process. You can read several reviews on my Author website including an excerpt from the Foreword by Glenn Kelman, CEO of Redfin. All thanks go to God as I hear from readers who tell me they’ve been encouraged and helped by the practical topics covered. Thank you to those who have read, supported, and gifted the book! Several brokers bought dozens of copies to give away to their agents. PTL!

To celebrate the one-year anniversary, I’m offering 50% off the price = $12 (plus shipping) through the end of May - no limit! This offer is only available from my distributor’s site, click here: JPLBooks.com. Be sure to enter discount code PTL at checkout. Your purchase will also help reduce my monthly costs to store book inventory!

90% of the book profits are going to two non-profits on O’ahu I love to support: The River of Life Mission and their homeless outreach, and The Makaha Community Center. In the first year of sales, For the Good Publishing was able to donate $700 to each group—God is so faithful!

Subscribe now

Soliciting readers for my second book manuscript

I am almost done with the manuscript of my second book: Faith Lessons for Home Buyers and Sellers. It will be another book of encouragement, this time for those going through the many ups and downs of a purchase or sale.

I’m looking for a few volunteer readers—especially if you are currently or recently a buyer or seller. Please reach out if you would like to read the first draft manuscript and give me feedback! You can read the entire draft, or choose just the buyer or seller portion; each half has about 25 short chapters. You can take a couple of months to review.

Please take a quick, 1-question survey

Lastly, I have had friends ask if The God Layer is available as an e-book or audio book. I am considering offering it in another format other than hardback. The survey is quick: only 1 multiple choice question. Take care and God bless you! —Ali

Book format survey

After my last day at Maui Divers Jewelry was set for March 11, 2011, I booked a bucket list trip to India to start March 14. Then the earthquake and tsunami hit northern Japan on March 11 and God revealed His next job for me. While watching the first chaotic days unfold, I considered cancelling the India trip. Relief efforts were just starting to mobilize but I didn’t have a clear direction specifically how or where God wanted me to help in Japan. So I went to India with Japan heavy on my heart. In God’s perfect plan and way, the trip to India taught and prepared me for Japan.

I still consider the two weeks I spent in India the most foreign and fascinating place I’ve ever visited. I took a typical weeklong bus tour of The Golden Triangle: Delhi, Jaipur, and Agra—home of the Taj Mahal. But the week in the holy city of Varanasi is the India that stays in my heart and memory. I was alone, so I had many opportunities to meet and talk with locals.

I stayed at a clean but bare hotel with zero modern conveniences. Many days, I wandered down to the banks of the Ganges River to witness pilgrims dunk, bathe, do laundry, drink (!), and cremate their loved ones. I was in awe of their religious devotion and fervor.

A taxi driver taught me about the caste system: He had become estranged from his family after marrying out of his caste. I could see his reflection in the rearview mirror: he beamed with happiness as he told me of his love for his wife. His parents began warming up to his wife after they had children.

Another Varanasi adventure was thanks to the hard work of my gregarious pedicab driver, Sunja-Kumar. I hopped in and asked him to help me find an electric converter for my laptop. He gave animated commentary as he pedaled me to several stores until we finally found the right item. Our grand tour took several hours—partly because his bicycle got a flat tire. I waited and watched it get repaired, on the spot!

I walked and saw cows wandering freely on the dirt streets. I saw angelic children break out in smiles when I motioned if I could take their photo. Also, for the first time in my life, I saw rampant poverty.

I was raised in one of the most affluent suburbs of Portland, Oregon and rarely witnessed poor areas or homeless people. In India, there was no escaping the eyes of broken souls without a home or hope. It was a precursor to what I would see in northern Japan.

The two weeks in India changed me. I had returned to Christianity just a few months prior and was still wobbly in my faith. But in India, God opened my eyes and heart and started to impart His vision and compassion for the survivors in Japan.

Total devastation

All during my India trip I tucked into internet cafes to read news of the recovery efforts in Japan. After returning to Honolulu, family friends, Eiji and Emi Osato, connected me with a church just north of Sendai called Oasis Chapel. The church had a Christian retreat center which had been converted into a staging camp for disaster volunteers. The location of my next job was set—Camp Morigo in the small town of Rifu, Miyagi Prefecture.

I decided to take a quick trip to visit the Osato’s in Thailand before heading to Japan. I think it was the only time in my life I booked a one-way ticket. I locked the door to my studio in downtown Honolulu with no idea when I would return.

Reporting for work, for the Lord

God’s itinerary for me to go to Thailand before Japan was another blessed gift of preparation: the Osato’s, after decades as Japanese missionaries in Chiang Mai, gave me a crash course on mission work. They were also close friends with the Oasis Chapel church where I was headed.

I arrived to Japan and first visited relatives in Tokyo and Nagoya. The tsunami hadn’t affected them but they had experienced the earthquake, aftershocks, and power outages. The lights in the train stations and other public areas were dimmed to conserve electricity. Japan felt dark.

I arrived to Sendai on May 10, 2011, two months after the disaster. The first survivors I met were Oasis Chapel’s Pastor Makito Matsuda and his wife Yuki. They told me of their intense emotional and physical trauma: the sheer terror and existential panic during the earthquake; the suffering from the loss of power and running water for many weeks in freezing weather; the destruction of homes, buildings, train lines, and roads.

Thankfully, they and most of their church members had not lost their homes. The mountain location of Camp Morigo was another blessing: the tsunami had swallowed up the surrounding areas, but the camp, on higher and holy ground, had been spared from the tsunami. The church had welcomed a Christian disaster relief organization called CRASH Japan (quite the unfortunate acronym: Christian Relief Assistance Support Hope) to use it as a volunteer base camp.

I joined the intertwined Oasis and CRASH disaster relief teams and the long-term leadership team who had left their jobs to work full-time for the Lord. We were joined by a revolving stream of volunteers who stayed at Camp Morigo for a weekend, a week, or as long as they could take off to serve God. We hosted an American team from Saddleback Church, German teams from the Liebenzell Seminary, and hundreds of other faithful Christians from all over Japan and the world.

Six days a week we ate breakfast, had worship and prayer, received our assignments for the day, and headed out to the disaster area. After a long day’s work, we returned to Camp Morigo for debriefing, a hot bath, dinner, and sleep. On Sundays, we attended Oasis Chapel, did laundry, and rested in the natural beauty around the camp. A favorite treat was to explore various bathhouses within driving distance.

Everything was communal: 8 bunks per room, shared toilets, bath house, and meals. As an introvert, it was stressful not to have time alone. I was (am) a very selfish person and struggle with patience and selflessness. At Camp Morigo, I had to humble myself, learn to give grace, and play nicely with others. I found myself constantly asking for forgiveness.

Thankfully, God had placed me in the midst of many loving and kind Christians. He knew it would be the perfect place for me to rebuild my faith. Many of my most precious memories of northern Japan are the rewarding lessons of doing life in community at Camp Morigo.

The progression of the relief work

Seeing the poverty in India and Thailand helped prepare me for the relief work, but there was one major difference: The poor in India were born into poverty; the tsunami survivors lost everything in one horrific day. They went from a comfortable lifestyle to having nothing but a few square meters of space in a gym; from eating whatever they desired, to having to accept handouts. The survivors had to process the immense shock that their lives had taken a devastating turn.

My first work assignment was to clean out some of the homes that were still standing but uninhabitable. Our teams suited up with protective gear, gloves, and masks to protect us from the toxic tsunami sludge that had swept through the homes and filled every crevice. My heart broke seeing the abandoned homes covered in muck. It was good for me to see the extent of the devastation before meeting survivors in the shelters.

Even months after March 11, the needs for food, shelter, and clothing were ongoing. The earthquake and tsunami happened while the weather was still bitterly cold; as the seasons changed, so did the clothing needs. (If I may share something I learned in Japan: unless specifically requested, it’s not helpful to donate used clothing after disasters. At the camp we had piles of used clothes that could not be given to survivors and eventually had to be discarded.) New clothes, however, could be received by survivors with dignity. Much of our initial outreach was to deliver clothes and toiletries.

Later, groups of temporary mobile homes were constructed so each family could have a little privacy. Our teams would visit these “villages” with supplies, tea, music, and entertainment. If we learned a child had a birthday coming up, we would bring a special gift and cake. As spring and summer came, we visited schools and communities and served shaved ice.

We teamed up with local churches: in Ishinomaki we set up a “store” full of clothes and household necessities. Survivors were welcome to “shop” for whatever they needed—it was a wonderful way to give survivors autonomy and the power to choose. We served tea and made conversation with those waiting in line.

Still later, since survivors had lost their former livelihoods, we helped them create new income streams. We established a connection with a group of women in Minami Sanriku. Over tea together we learned to weave intricate leather bracelets which were later sold in Japanese department stores. We also made friendships with a few small-scale farmers and helped them slowly get back on their feet.

Deeper connections

We always tried to create opportunities for conversation over a meal or tea. Wherever we went, every survivor needed and wanted us to listen—just listen. They wanted to tell us where they were when the earthquake hit; how they escaped the tsunami; how they lost their home and everything inside; and which friends and family members they lost.

The telling and retelling were necessary and cathartic stages for their emotional healing. The focus of our support and work became tending to these emotional needs—and hopefully, maybe years later, their spiritual needs.

With the leather bracelet group, a team from Oasis Chapel visited weekly bringing supplies and conversation to the same group of women. Week after week, as strips of leather were woven into bracelets, friendships and trust were also being woven together. We didn’t overtly talk about Jesus, but it was His love which energized us.

A gift from the survivors

As I met survivors who had come so close to losing their lives, I heard their reflections and realizations about what is truly important in life. One survivor after another told me it’s relationships with family, friends, and co-workers that give life meaning—not work, money, status, or things. One man cried as he told me he had urged a friend to escape the tsunami with him on foot, only to watch the friend perish because he insisted on driving out in order to save his precious car.

Just a year before, when I turned 40, I had questioned the meaning and purpose of my life. I had been self-absorbed with the corporate rat race and frivolous material things—which the survivors taught me are not important in the end. The survivors’ honest reflections were precious gifts to me. By the end of my time in Japan, I understood what my priorities in life should be going forward.

Cleaning toilets for God

God’s job for me in Japan lasted seven months, from May through November 2011. One of my last assignments at Camp Morigo was to clean the toilets in the communal cabin where we volunteers lived. For much of my stay, a retired Japanese woman with a beautiful heart had volunteered to keep the camp clean. But after her time of service, the rest of us took turns cleaning.

The toilets were a much-needed lesson to take down my pride. As I began to scrub, I thought, “I used to be an important executive! I used to oversee hundreds of salespeople!” As I continued to scrub, I began to think of the love and sacrifices of my campmates and the volunteers. Just as He did in India, God humbled and softened my heart. As I looked over the row of sparkling toilets, I felt joy and understanding:

What gives life meaning and purpose is serving God and doing whatever work He assigns. If I work wholeheartedly and follow Him, He will bring fulfillment to even the most menial work.

“Whatever your hand finds to do, do it with all your might.” Ecclesiastes 9:10 (NIV)

“Whatever you do [whatever your task may be], work from the soul [that is, put in your very best effort], as [something done] for the Lord and not for men.” Colossians 3:23 (AMP)

I returned to Honolulu in December 2011, determined to find a new job where I could help others in a meaningful way. As with the leather bracelet group, I wanted relationships that grew deeper over time. This is what eventually attracted me to real estate.

In real estate I still clean toilets! I can do it gladly, for the good of my listings and clients and to the glory of God!

In Part 3, coming soon, I’ll talk about my first 12 years in real estate, from 2012 to 2024.

Subscribe now

Changes to standard forms

Every real estate board across the country had to update a plethora of standard forms to comply with the new rules. Some released and began using their new forms well before August; my Honolulu Board of Realtors released our new forms one week prior. We agents scrambled to learn the two most-used contracts: the Exclusive Right-to-Sell Contract for listings and sellers, and the Purchase Contract for buyer offers. Another new requirement was for buyers to sign a written agreement before going out on showings—a huge change of practice.

How it’s going: The changes and revised forms have impacted our conversations and practices with our clients and fellow agents. There was confusion at first—the usual gamut of agents who had done their homework, agents in the dark, and differing interpretations of the new rules. With every new client we begin working with, we agents are still fielding many questions and solidifying how we explain the changes and forms.

Options for Sellers

The catalyst for these changes were several class-action lawsuits by disgruntled sellers against the NAR and major realty companies. They felt the 100-year practice of sellers paying both seller and buyer agents to be unfair; the court and jury agreed with them and the NAR settled.

Since August, sellers can dictate if and how much commission they pay the buyer broker. They can either state up front what they will pay, or wait for offers and negotiate the buyer broker commission at that time. Even if a seller states an amount up front, they can still change their mind during an offer negotiation.

The amount of commission to the buyer broker is up to each seller. This was the whole goal of the NAR lawsuit: seller’s choice.

How it’s going for me: When I meet with a seller and we discuss the buyer broker commission, I explain the history and benefits of paying it but also their new option not to. I’ve had 13 listings since August and all but one of my sellers indicated they will pay “something” to the buyer broker but waited/are waiting to decide until reviewing offers. One seller had a set commission price from the beginning. We received an offer with the buyer broker asking for a higher commission, but successfully countered it down to what my client had wanted.

My company does not require our sellers to pay any certain amount to the buyer broker, it’s truly the seller’s choice. When a buyer agent inquires what my seller has agreed to pay them, my standard reply is, “The seller is open to paying you! Please submit an offer and we will review that along with the rest of your buyer’s offer.”

How it’s going for other brokers: When I have a buyer and inquire with listing agents, I have not yet come across a seller who refuses to pay the buyer broker anything. I also see other listing agents clearly stating up front (before receiving any offers) their seller is paying X to the buyer broker. These agents (or their companies?) may be convincing (requiring?) their sellers up front and using that to entice buyer agents. There are industry pundits advocating it’s in our self-interest to perpetuate buyer brokers getting paid. I am not privy to see other brokers’ listing agreements with their sellers; each company is free to make their own policies and business decisions.

As before, sellers can compare various listing companies to find out what they charge for their listing services—and now sellers can also ask each broker if they have any requirements about paying the buyer agent commission.

The reality (at least here on O`ahu) is that sellers are still offering to pay the buyer broker. Sellers who are refusing to pay anything to the buyer broker are rare.

Subscribe now

Market conditions since August

As market conditions change, how much sellers pay buyer brokers may also change: in a strong seller’s market, sellers may feel less inclined to pay buyer broker commissions. Conversely, if there is a glut of inventory in a buyer’s market, motivated sellers may decide to pay the buyer broker more. So, reviewing the market conditions these past six months is relevant to this discussion.

From August 2024 to February 2025, interest rates have persisted in the 6.5% to 7.0+% range. Many buyers continue to be sidelined, especially if they have to sell before buying—they are reluctant to trade in their current sub-3% mortgage. Consequently, the inventory of listings is still relatively low—but has been steadily rising year over year. This article from Redfin (my former company) reports that this January, many areas across the country came the closest to a buyer’s market since 2019. (A buyer’s market is defined when the inventory of homes for sale is four months or more of supply.)

Here on O`ahu, we see a dichotomy between single family homes and condo/townhouse activity—the chart below says it all! It’s still a seller’s market for single family homes (green line)—there are quick sales and multiple offer situations for the best and correctly-priced homes. But the market is not anywhere near as hot as in 2020-2021 that sellers are refusing to pay anything to the buyer broker.

The condo side, however, is hurting from rising HOA fees due to steeply rising insurance premiums. On top of elevated maintenance fees, we very often see special assessments to cover the increased insurance costs for the HOA. In the case of condo sellers, some may entice buyer agents with an attractive buyer broker commission. Here’s the January 2025 Honolulu Board of Realtors’ chart for Months of Inventory; you can see the yellow line for condos is around 5.5 months of supply!

Changes in the MLS and agent conversations

Another change—that listings may no longer advertise the buyer broker commission on the MLS—had agents panicking prior to August 17. This change accommodates how sellers may choose to defer their decision about paying the buyer broker until the offer stage. It also prevents any commission-motivated buyer agents from filtering listings based on their compensation.

How it’s going: Listing agents have found alternative ways to tell buyer agents what their seller will pay: it can be listed on the flyer at the property, or an escrow company can include it in an e-blast. Many buyer agents simply call or text to ask if and what commission the seller will pay. It may be their buyers are requesting the info; it may be the buyer agent double checking what they’ll get paid or if their buyer will have to pay.

We agents strongly recommend buyers not let any stated or unstated buyer commission amount stop them from seeing a home or making an offer. Buyer agents usually write their full desired commission on the offer, and it’s up to the seller to accept, counter, or reject.

My sellers have accepted or countered the buyer broker commission based on the offer price, other terms, and on how motivated they are. The buyer broker commission has not been a deal-breaking point in any negotiation so far, and I am not aware of any buyer who didn’t submit an offer because of it.

Changes for Buyers

For buyers, the biggest change has been the requirement to sign either a standard form known in Hawaii as the “Buyer Representation Contract,” or similar written agreement with their buyer agent.

Each realty company or agent can set their buyer fee which the buyer must agree to before seeing any properties together. (Buyers who haven’t committed to an agent yet can still freely visit open houses.) Companies can created their own form as long as it adheres to the new NAR requirements: the form must show the company’s buyer fee and state that if the seller doesn’t pay the fee, the buyer would be responsible to pay for their agent’s services.

This is a radical change for buyers to possibly be on the hook to pay for their agent’s services. It also opens up a world where a buyer can shop around for different brokers’ fees. If a seller is only paying a small (or no) commission to the buyer broker, a buyer broker charging a lesser fee would save the buyer from paying out of pocket.

Are buyers paying their broker?

How it’s going for me and my buyers: I have not had any problems having a dozen buyers sign my written agreement. Most of these buyers are still in the search stage and have not made offers. I’ve had two buyer closings since August and neither paid any part of my commission. In fact, for one of my buyers, the seller was offering to pay more than my fee with my buyer. I wrote the offer for my lower amount, and this sweetened our offer: we competed against six others and my buyer got the home.

How it’s going for other brokers: From my own experience and from casual conversations with brokers large and small, there are two patterns whenever the seller isn’t paying the buyer broker’s full fee:

1. The buyer broker modifies the original buyer agreement and eats the difference.

2. The buyer pays the difference, per the buyer agreement.

It may be case-by-case depending on the price point or how firmly a company sticks to their fee. In the end, if a buyer signed the written agreement that they would pay any difference, they are bound to that.

Buyers: When making an offer, or receiving a counteroffer from the seller, review the buyer broker commission before signing. Make sure you understand if and how much you will be responsible for paying. This could be a juncture for you to negotiate with the seller or your broker, or a juncture to accept the overall cost to buy this home.

Leave a comment

TL:DR Summary

Generally, sellers are still paying buyer brokers, but each seller, buyer, and their agents must review their situation case by case and possibly negotiate. Many more conversations are needed as compared to pre-August 2024. For now, with the current market conditions here on O`ahu, most buyers have not needed to pitch in to pay their own agent. If they have, it’s a small portion and not the full buyer broker commission.

If you’re a broker, seller, or buyer, I would love to hear if your own experiences or examples differ from mine! Please feel free to comment or message me (be sure not to mention any specific numbers!).

Success is not about Louis Vuitton

When I turned 40, I took a hard look back and asked, “What do I have to show for my life so far?” and “Am I headed in the right direction?”

I had one failed marriage already, and was dating a guy who refused to commit—I went to the Big Island by myself to celebrate my 40th. I was not finding success or fulfillment in the romance department.

My professional life was rosier: since 2002, I was at a local company called Maui Divers Jewelry and had worked my way up to Senior Vice President of Retail Sales. I reported to the CEO and oversaw 50 stores in Hawaii, Guam, and Vegas, as well as the Training and Customer Service departments.

The job consumed all my time and energy. I was on call 24/7: salespeople called for discount requests, managers for advice and encouragement, and the alarm company called every time an alarm went off—almost every night. I didn’t have time for friends or hobbies. I didn’t have time for God or church.

I was making a great salary but didn’t have time to spend it. I built up my savings account but also frivolously bought designer bags and shoes. I thought nice things would help me feel better, but I began to realize materialism is a fleeting pleasure and a never-ending chase. Some consider an LV bag a sign of success, but no material thing can bring success or fulfillment.

Linda, my best friend from college, turned 40 the same month as me. We had similar backgrounds growing up in church, but we had both fallen away from our faith. Linda had achieved much success professionally as an educator and yet also felt unfulfilled and disappointed as our 40^th birthdays approached.

To encourage her, I suggested she and her husband try going back to attending church. She laughed and said I should take my own advice! Together, we made a pact to go back to God.

God’s success and fulfillment

God is always waiting to welcome us back. I felt His love and acceptance as He became the anchor for my life. Just in time, too—some major storms were coming.

My renewed faith helped me realize the futility of the relationship with my boyfriend. I had been in denial how unhealthy the relationship was. As I followed and pursued God, I rediscovered my identity and worth. The inevitable breakup was prolonged and painful.

Then, my beloved Maui Divers CEO announced his plan to retire in a year. He brought on a CEO-in-training who seemed to have it out for me from the beginning. She repeatedly berated me and found fault with everything. I asked the HR manager to be present for a meeting hoping to have a calm and professional talk, but my future boss still ended up lashing out at me. When I burst into tears, she ended the meeting with disdain saying I was a weak leader.

I cried out to God with self-pity and genuine distress. As I drew closer to Him in prayer, I began to hear His still, small voice: He was going to move me away from Maui Divers—but He didn’t tell me what was next. It was a test of faith: did I trust God to eventually provide the next job and take care of me?

A divine appointment in Vegas

In February 2011, God gave me the courage to give Maui Divers Jewelry my advance notice. My CEO asked me to stay a couple of months but the CEO-in-training said two weeks would be fine. We compromised on a date about a month out, and I began preparing my teams for my departure and transition.

While still at Maui Divers, I looked into a couple other job opportunities but they didn’t work out. God had other plans for me, but He still didn’t let me know what.

I wrapped up my duties early and my last week at Maui Divers found me idle. Our Customer Service manager, Steve, had been hospitalized while vacationing in Las Vegas, so I decided to go see him. He had been fighting cancer and sadly, his battle was ending.

I booked a hotel near his Vegas hospital so I could make several visits. On March 10, with his wife and I at his bedside, he prayed to accept Jesus! For the first time in my life, my heart and soul were bursting with joy: this was true success and fulfillment—working for the Lord!

That evening, a few of Steve’s Buddhist family members got upset and banished me from the hospital. So, in the early morning hours of March 11, 2011—my last day with Maui Divers Jewelry—I headed to the Vegas airport.

While waiting for my flight back to Honolulu, I saw shocking live videos and news of the devastating earthquake and tsunami happening in northern Japan. Watching scene after scene of destruction, I heard God clearly speak in my heart: my next job is in Japan.

God’s timing is perfect…

Even though I wasn’t following God during most of my 8 years at Maui Divers, God still watched over me and guided my steps. (Also, my mother was praying for me daily!) He even had a plan for all that income I had saved—it enabled me to volunteer in Japan and it also carried me through the first lean year in real estate.

God rarely lets us see or know His whole future plan for us: He usually guides us only one step at a time. We must have faith and take the first step—even as we are still in the dark about the second and third steps. My first step of faith was to give notice to Maui Divers not knowing what my next job was. It wasn’t until my very last day at Maui Divers that God unveiled my next job.

In my Christian adventure which started when I turned 40 and continues to this day, I have come to learn God can take His sweet time, but is always right on time, often just in the nick of time.

Are you hesitating to take the first step of faith? God is calling you to trust Him. Don’t worry about step two and three—and fifty and one hundred—God has planned everything and it will be for your good. Try not to worry about tomorrow as you trust in Him for today.

For we walk by faith, not by sight. - 2 Corinthians 5:7 (ESV)

The fundamental fact of existence is that this trust in God, this faith, is the firm foundation under everything that makes life worth living. It’s our handle on what we can’t see. - Hebrews 11:1 (The Message)

Share

Come back in March for Part 2 where I’ll explain how my volunteer job in northern Japan prepared me for real estate. Next month, I’ll be reporting on how things are going with the NAR changes, 6 months in. Aloha and God bless! Ali

Subscribe now

My first thoughts are: Did they know Jesus? Will I see them again in heaven?

In the case of my uncle, the answer is a resounding yes because he, my aunt, and many on my mother’s side of the family are Christians (quite rare in Japan). If my mom were still on earth she would have rushed to be with her sister; since she’s in heaven, I’m sure she was one of the first to welcome in my uncle! My brother’s family and I already had flights to spend Christmas in Japan with my dad; God made it possible to change my ticket to go to Tokyo a few days early to attend my uncle’s funeral.

What a friend we have in Jesus

At a funeral we often learn new things about our loved one. I learned my uncle’s strong faith was the source of his love for God and others. He was a music teacher and junior high school principal—possibly the most trying job in the world! His immense patience was up to the task: A fellow teacher who spoke at the service remembered how sensitive and kind he was toward a student when he returned to school after a tragic accident.

Another friend shared how devoted he was as their church’s organist. This friend recalled how my uncle would remember the anniversaries of when church members had gone to heaven by playing their favorite hymns. At his service, we sang one of his favorites, “What a friend we have in Jesus,” and we also read a few of his favorite Bible passages. Here’s one that shows his love for children and teaching:

Matthew 18:1-5 (NLT)

About that time the disciples came to Jesus and asked, “Who is greatest in the Kingdom of Heaven?”

Jesus called a little child to him and put the child among them. Then he said, “I tell you the truth, unless you turn from your sins and become like little children, you will never get into the Kingdom of Heaven. So anyone who becomes as humble as this little child is the greatest in the Kingdom of Heaven.

“And anyone who welcomes a little child like this on my behalf is welcoming me.

Courage to initiate “Faith conversations”

In the case of the young realtor, I don't know if he called Jesus his friend; I don’t know his "faith status." I did a couple transactions with him; he was always positive and kind; he was an agent I looked forward to working with again. We were not so close that I ever had a "faith conversation" with him, but now I wish I had, even if it might have been awkward.

In “The God Layer” book there’s a chapter about creating opportunities for these faith conversations. I wrote it after attending another funeral—of a close co-worker, Ann. Before she passed away, she told me she believed and had accepted Jesus into her heart, so I had peace and comfort at her memorial service knowing she was now in heaven.

Yes, there’s peace and even joy at funerals of faith. We are sad for our earthly loss but glad our loved one is frolicking with Jesus. For my uncle, I envision him finally reunited in heaven with his son—my cousin, Haruo—who sadly passed away years ago. What a joyous reunion they must be having!

Don’t we want every single person we love to join us in heaven?! Don’t we want them to know the peace, love, and joy of Jesus while here on earth?

I recently took a screenshot of this photo above, posted by @greg_payne24 who wrote:

“I recently read about man who collects pictures of hitters who had hit walk-off home runs. He said that the reason he did this is because this is how he views us entering heaven.

Look at the faces of his teammates waiting to welcome him home. Look at their excitement. They can’t wait to celebrate with him.

Look at the fans. Arms raised, big smiles, maybe even hugs for a perfect stranger.

Perhaps this year is your first holiday season without someone important who is now waiting for you in heaven. Maybe it’s just another one with that big hole in your heart and an empty seat at the table. Either way, I hope you can find encouragement in this picture, what it represented to the man who collected it, and find joy this year.”

I am thankful for the Instagram algorithm for showing me this post. What a collection that must be—photo after photo of everyone cheering and waiting for their teammate to run home to win the game. Heaven will be like this but even better!

Do you know the “Faith Status” of your loved ones?

When I attend a funeral for someone who didn’t know Jesus, where the room is full of inconsolable sadness and loss, I resolve to have more courage and urgency to ask others about their “faith status.” What is their spiritual background? Did they grow up attending church? Do they believe in God? Sometimes, sadly, I hear about painful or hurtful experiences with other Christians, but I also hear many fond memories of a loving Christian in their life. If the person tells me they’re actively doing life with Jesus, it’s like gaining a new family member!

God doesn’t need our help, but He wants us to introduce Him to others. If we are open and brave enough to ask God for opportunities to have these faith conversations, He will make them happen in the right time with the right words and heart. We want all our loved ones to be with us in heaven; so does God. He desperately wants every person on earth to know and trust Him.

This week, Christmas can be a perfect topic for a faith conversation. Here’s a possible faith conversation starter question:

“What does Christmas mean to you?”

Christmas is full of Jesus’ love and light

If someone doesn’t want to hear about God just yet, we can simply love them with God’s heart of care and kindness—like my uncle did. We can seek to learn the spiritual art of knowing when to speak and when to be quiet. We can pray for the right timing to share God’s hope.

The last paragraph of the Instagram post has a thoughtful truth that Christmas can often be a lonely and sad holiday. It’s never a good time to lose a loved one, but losing someone during the holidays is especially heartbreaking. My prayers go out to the wife and sister of my realtor friend—I knew them because they worked on his team and were also in the business. I think of my aunt, now living alone. Even though she knows she will one day be reunited with my uncle and their son in heaven, waiting in this life on earth is not easy.

Is there someone around us who could use a call or text, or invite to a Christmas service? I encourage you to ask God who you can start a faith conversation with this Christmas!

Share

Subscribe now

In the ten days since I've moved, I’ve created my own spreadsheets, file systems, and templates to help me forge my new processes—it’s all been very manual and time-consuming, but fun, in a retro kind of way. I’m going back to the basics and gradually, I’m getting organized and getting it done!

From the title above, you’ve learned my new company’s name: 20 Degrees North Real Estate. In a previous post, I wrote the following about my new broker, Chris Prendergast:

I recently met with [a] Hawaii broker who incorporates some pro bono real estate into his practice…—putting people and relationships before profits. He has paid out of pocket for expenses in transactions above and beyond the commission he received …

… The broker’s company also handles all the rental agreements—at greatly reduced fees—for the non-profit Institute for Human Service’s Kahauiki Village, a plantation-style permanent supportive housing community for formerly homeless households.

[He is] serving the Lord as [he] serves his real estate clients. Degree of difficulty: as hard as it gets. Earnings: very small if not negative… but how extremely rewarding is this real estate with a mission.

As of November 15, I have joined Chris at 20 Degrees North Real Estate, where I’ll continue to serve buyers and sellers as an agent, as well as partner with Chris to support about 30 agents as a Broker-in-Charge. I hope to learn and emulate the type of missional real estate Chris is already doing.

When I wrote the chapter titled “Starting at a new company,” in my book for real estate professionals, I had no idea I would be turning to it for my own encouragement. The chapter talks about two emotions I’ve been having which are found in all new beginnings: hope and fear. Here is the Bible verse quoted at the end of the chapter:

Isaiah 41:10 (NIV)

“So do not fear, for I am with you; do not be dismayed, for I am your God. I will strengthen you and help you; I will uphold you with my righteous right hand.”

True to this promise, God was with me the entire first day at 20 Degrees North. My first appointment was with past clients—a couple who wanted to buy five copies of my book, what a blessing! As we sat down to breakfast, I noticed the wife’s t-shirt: it said, “Save your homes.” They shared how they recently joined a non-profit that helps homeowners save their homes from foreclosure. I blotted so many Holy Spirit tears as I listened to these like-minded friends who are also pursuing missional real estate—what a divine appointment to kick off my new chapter!

After spending too many hours struggling to transfer a couple listings and launch a new one that day (by myself and without the help of a Redfin coordinator), God had another surprise for me at my church ohana group. I recently joined a Friday evening group who have been taking turns each week to share their life story and testimony. The man who shared that night was previously a top real estate agent—I had no idea. His heart for ministry in real estate found him helping many distressed homeowners negotiate short sales and prevent foreclosure.

Wow! God started and ended my first day at 20 Degrees North with the topic of foreclosure prevention. It was confirmation—a wink from God—that I had heard him correctly about moving companies. These two conversations about foreclosures stood out so distinctly to me because, in my career thus far, I’ve yet to help a distressed seller with a short sale—but my new broker, Chris, has helped many.

The winks from God continue. I started working with a new agent at 20 Degrees North right as God gave her her first listing opportunity: surprise, surprise, it’s a foreclosed leasehold condo. Chris and I will support her pro bono for this doozy of an assignment with a high degree of difficulty. And that first listing consult I had yesterday? It’s a leasehold situation similar to the “impossible” listing I wrote about in my book. I can’t wait to see how God shows up for our clients.

As I’ve started to work with Chris, I’m inspired by his even-keeled, humble spirit. He is focused first on the Lord, then his agents and clients. Even his wife, Rebecca, is a gracious giver—she helped him put up signs for my first 20 Degrees North open house! I am excited to learn from their example how to walk the walk as a Christian in real estate. I am feeling and enjoying a spiritual freedom at 20 Degrees North.

I’m slowly calling clients to explain it’s still me with my experience and knowledge. I’ll be able to give them even more direct service and care. This very inspired company will be a place to level up my servant heart. Ultimately, how well I help my real estate clients doesn’t depend on a computer system or fancy brand materials. The 20 Degrees North mission statement is based on this quote I’ve always loved:

Here are a few of us 20 Degrees North agents last Friday at the Honolulu Board of Realtor’s Winter General Membership Meeting. I’ve been given such a warm welcome.

Thank you to the many friends and clients who’ve sent well-wishes. I’m energized and encouraged by your support. I look forward to serving you with faith in real estate! Aloha and God bless, Ali

Subscribe now

My first midlife crisis was at forty. Outwardly, I was a successful executive for a jewelry company but inside, I felt empty and unfulfilled. Even though I had achieved all the things the world could offer, my life was without meaning and purpose.

I had left my childhood Christian faith, but God makes it very easy for us to return to Him anytime; I became one of His many beloved prodigal sons and daughters. I quit the executive job and, in a stroke of divine timing, I spent most of 2011 volunteering in northern Japan after the earthquake and tsunami disaster.

While doing the most menial work clearing toxic sludge out of homes and scrubbing toilets at the volunteer camp, I found fulfillment helping others and serving God. When I returned to Honolulu, I started my real estate career in 2012 with the same goal of humbly helping others. Truly, God has blessed me in this career!

So, why another midlife crisis now?

I just turned 54 and I want to take my real estate work even deeper. I wrote about where my heart and future focus are in my last post about pro bono real estate. I hope to slow down the pace and help the neediest clients—those doozies I mention in my post. I also welcome any of my loyal clients to come along and support me at my new brokerage!

Sadly, this means I am bidding adieu to Redfin this week. For over eight years, this is where I learned how to prioritize and advocate for my clients’ best interests. This is where I grew as an agent through many (over 300!) difficult and varied transactions. I’ve enjoyed the benefits, support staff, and tech at Redfin. Even as I prepare to leave, I’m recruiting other agents to join—there are many agents eager to be part of Redfin’s visionary business model.

As I go, I’m reminding myself to follow a chapter from my book called “Leaving a company or team: Show loyalty.” It’s about how to continue to honor, respect, and show love to the people you’ve worked with even after you leave.

Ironically, the thing you will need most as you leave is loyalty. I like this Dictionary.com definition of ‘loyal’: “giving or showing firm and constant support or allegiance to a person or institution.” The key word is “constant,” and here I believe it means we should continue our support long after we’ve left.

Another way to continue to support our former colleagues is to stay in communication and on good terms. In this business, our paths will continue to cross. It’s very likely someday we will present an offer on one of their listings, or vice versa. If we leave with grace and on good terms, our personal history with past co-workers will not encroach upon our client’s chances.

Even though I have a new mission, my heart is full of fear. I’m already missing the outstanding Redfin team of support agents and coordinators. I will go back to handling most tasks myself—but more quality time with my clients is a very good thing. I want to help my clients holistically and for the long-term. I look forward to the challenges and will face them with faith at a smaller, local brokerage.

I’m giving each of my clients a choice to stay with Redfin and work with one of my awesome co-workers, or to come along on my new adventure. I trust and support each client’s choice. We can always stay in touch and be friends even if we don’t work together!

I am sending this post from Italy and the annual Redfin-sponsored trip for top agents (Mike won the trip for us this year). I was able to say goodbye in person to the Chief of Real Estate Services, Jason Aleem. He is just one of the many reasons why Redfin is a cutting-edge company. It was a fun and fitting end to my time at Redfin.

My last word of thanks is for my CEO, Glenn Kelman. He gave me a precious gift when he wrote the Foreword to my first book. In the acknowledgements I wrote to him: “Our company’s values are kind and good because you are kind and good.” Every Redfinnian works harder and with so much heart because Glenn rallies us with his equally long hours and endless availability. Do you know of another CEO who signs off every email with, “Call me!” and his cell number? Glenn, thank you for supporting me to the very end—including openness to the idea of pro bono real estate.

Some of my beloved Redfin Hawaii team gathered a few weeks ago to say goodbye—what a blessing of a send-off they gave me! No one works harder than Redfin agents and managers. I’m honored to have worked with this group who always make sure to do the right thing for our clients.

Stay tuned here (sign up to subscribe for free) to receive my newsletters with future updates. Let’s keep in touch!

Subscribe now

Aloha for now! God bless, Ali

As with Olympic gymnastics moves, we could rate real estate transactions by their degree of difficulty. Our rapport—or lack thereof—with the client or other agent, the circumstances, the negotiations: each component ranges from easy to hard.

Then there are the doozies. From the Merriam-Webster Dictionary:

Doozy (noun): an extraordinary one of its kind

In gymnastics, doozies are those moves achieved first and often exclusively by a certain athlete: Simone Biles has five moves named after her. The degree of difficulty is so high her scores grow exponentially.

In real estate, the doozy is the multiple-sibling seller with lots of emotions and complicated communication; or the cash-poor buyer who keeps getting beat out but keeps searching even after all those unsuccessful offers. Doozies have an extra portion of The God Layer and feel miraculous when they close.

Longtime agents say that over years of transactions, they only remember the doozies. Doozy work can be excruciatingly difficult and stretch us to the max—but we become better agents and humans for it. When we up the degree of difficulty, this already rewarding job grows even more meaningful.

Call me crazy, but I feel God challenging me to up the degree of difficulty in my real estate practice. I’ve been thinking and praying about how to prioritize and make more room—for the doozies.

Pro Bono Real Estate: Why and How

Rob Hahn is a straight-talking real estate industry pundit with a legal background. He tackles the questions we agents ponder but are too timid to say out loud. Hahn recently wrote extensively and passionately about pro bono real estate, and it lit a fire under me. I’ve read his article more than a dozen times trying to absorb all the visionary ideas. Please take a few minutes to read it.

Pro bono publico (Latin phrase): for the public good

Attorneys are mandated to take pro bono clients—the underserved and underprivileged—to give fair access to all who need legal help but can’t afford it. Why isn’t this more common in real estate? I know, I know—if someone can afford a mortgage, they can afford to pay a real estate agent—but every agent has met a client whose situation broke their heart. Pro bono work could be for a special type of real estate doozy.

In his article, Hahn outlines how real estate brokerages might adopt a pro bono arm:

The pro bono program I would launch would have two parts: unpaid and subsidized.

Unpaid pro bono is exactly what it sounds like: the agent can simply represent whoever he or she wants for free. Maybe it’s a young couple they know, or a veteran they go to church with. It’s the agent’s time and energy, and if she wants to help a non-paying client, management should approve nearly all such requests.

Subsidized pro bono involves the company paying the agent to enable her to represent a deserving client for free. Keep in mind that the lawyers who do pro bono work are paid by the firm, because they’re usually on salary. So the company should pay the agents to do pro bono work.

On the flip side, nobody is going to get rich doing pro bono work. Lawyers don’t get bonuses because of pro bono work. So, the payment would be a fraction of what normal market-rate compensation would be.

Hahn further fleshes out how much a pro bono commission might be and how to qualify who deserves a pro bono transaction. I love his idea to pair newer agents with experienced ones to work pro bono transactions together as a training ground.

Pro bono work also makes sense in this new era (circa August 17, 2024) of negotiable buy-side commissions. A buyer’s offer will gather strength if her agent requires a substantially lower commission from the seller. Or, if the buyer must pay some or all of the commission, more of her limited cash can be applied to the home purchase and equity instead of paying her agent.

Brokers doing missional real estate

I recently met with two Hawaii brokers who incorporate some pro bono real estate into their practice. One allows his small company of agents autonomy to decide what they charge each client—putting people and relationships before profits. He has paid out of pocket for expenses in transactions above and beyond the commission he received. The other independent broker told me she didn’t charge a client who was a church.

The first broker’s company also handles all the rental agreements—at greatly reduced fees—for the non-profit Institute for Human Service’s Kahauiki Village, a plantation-style permanent supportive housing community for formerly homeless households.

These brokers are serving the Lord as they serve their real estate clients. Degree of difficulty: as hard as it gets. Earnings: very small if not negative… but how extremely rewarding is this real estate with a mission.

Do you know of a real estate broker who does missional or pro bono work? Please share—I want to learn more!

Leave a comment

10x is Easier than 2x

10x is Easier than 2x, by Dan Sullivan and Dr Benjamin Hardy, is a business book that teaches how, instead of doing a little more of the same old thing which might result in a 2x increase, a radical mindset shift can lead to a 10x increase in productivity and income.

The book inspires you to identify and go after your best business life. Rather than 10x profits, I felt God planting a desire to 10x the social impact of my real estate practice. Real estate is inherently meaningful, but I want a 10x increase for more life-changing, life-giving, doozy-type transactions and relationships—to glorify Him!

What a God-led realty company might look like

Hahn correctly writes that move-up and luxury buyers—and most sellers—aren’t appropriate clients for pro bono realty work. A pro bono brokerage could only survive financially by also serving regular paying clientele. These clients would become vital, valuable contributors to the cause.

Here’s how a pro bono brokerage might look:

• A mission-minded realty company is formed, possibly as a non-profit.

• A budget to balance paid and pro bono transactions would be maintained.

• Agents paid a living wage on salary with a reasonable minimum expectation of transactions worked for the brokerage. Or, a combination of a smaller salary plus modest bonuses per closing might be another model.

• Qualified first-time buyers would be considered for pro bono or discounted commission. They must be buying at or below the current median home price.

• Sellers and non-first-time buyers would pay the brokerage a customary commission. This income will fund the agent salaries—and the pro bono work.

• Supporters who don’t currently need real estate help could donate to the non-profit. If they do a transaction with the brokerage in the future, their donations would be taken into consideration toward their commission owed.

I need to research more about non-profits and tax code, and query paying clients if they would support such a brokerage. I welcome any and all comments and criticisms—please share your insight and feedback! This idea seems to be untested territory: nothing pertinent comes up when I search “pro bono real estate” online except Hahn’s article and this NAR one shooting it down. Are some doing pro bono work but keeping quiet and humble about it? Or have others tried and failed?

The Narrow Gate

“You can enter God’s Kingdom only through the narrow gate. The highway to hell is broad, and its gate is wide for the many who choose that way. But the gateway to life is very narrow and the road is difficult, and only a few ever find it.”

My pastor at Bluewater Mission, Jordan Seng, recently preached on Matthew 7:13-14 (NLT, above)—the famous passage of the easy wide road vs the difficult narrow road. Living out one’s best Christian life is not the popular way of the crowd. Creating a missional real estate brokerage might be similarly unpopular. It might require a 10x mindset shift and it will have an extreme degree of difficulty. Whether it succeeds or fails, I believe it would give glory to God.

A few years ago, long before I had ever heard or thought about pro bono real estate, God gave me a name for a brokerage if ever I went independent. I ended up using that name last year when I wrote my first book and needed to create a publishing company: “For the Good Publishing”—taken from Romans 8:28.

Romans 8:28 (NIV)

And we know that in all things God works for the good of those who love him, who have been called according to his purpose.

My missional brokerage would be called “For the Good Realty”—not only after Romans 8:28, but also from the translation of “pro bono”—for good—from the Latin. God did a thing there!

I will continue praying for God’s will and guidance. I believe there is a way—maybe through a narrow, difficult gate—for a pro bono brokerage to not only survive financially but to thrive in its mission.

Agents: Would you be crazy and inspired enough to work at such a missional brokerage? Would you work on a salary, earning much less—for the good? I want to hear from you!

Sellers and higher-end buyers: What would incentivize you to give a missional brokerage your business?

Leave a comment

Matthew 10:39 (NLT)

If you cling to your life, you will lose it; but if you give up your life for me, you will find it.

Subscribe now

I need help!

Psalm 77 has a total of 20 verses which are nice-and-neatly halved. The first 10 verses I’ve nicknamed, “The Distress Call.” Perhaps you can identify with these feelings:

Psalm 77:1-10 (NLT)

¹ I cry out to God; yes, I shout.
    Oh, that God would listen to me!
² When I was in deep trouble,
    I searched for the Lord.
All night long I prayed, with hands lifted toward heaven,
    but my soul was not comforted.
³ I think of God, and I moan,
    overwhelmed with longing for his help. Interlude

⁴ You don’t let me sleep.
    I am too distressed even to pray!
⁵ I think of the good old days,
    long since ended,
⁶ when my nights were filled with joyful songs.
    I search my soul and ponder the difference now.
⁷ Has the Lord rejected me forever?
    Will he never again be kind to me?
⁸ Is his unfailing love gone forever?
    Have his promises permanently failed?
⁹ Has God forgotten to be gracious?
    Has he slammed the door on his compassion? Interlude

¹⁰ And I said, “This is my fate;
    the Most High has turned his hand against me.”

The dead ends of life

The psalmist’s feelings describe the human condition: troubled, inconsolable, overwhelmed, sleepless, too distressed to pray, searching, questioning, longing, rejected, forgotten. When we reach a dead end in life, we send up distress calls to God—then wonder if He will respond. What’s your dead end today?

Another failed pregnancy?

A bottomless hole of bills?

A divorce?

For Moses and the Israelites, their dead end was a hot pursuit by the Egyptians up to the banks of the Red Sea.

The impassible Red Sea

The Red Sea was the ultimate dead end. It’s so impossibly impassable it wasn’t until 2022 that a human named Lewis Pugh was the first to swim across one part of it. It took Pugh 16 days to swim 123 km (over 76 miles).

Whether you picture the 1956 Charlton Heston epic, The Ten Commandments, or the more recent The Bible miniseries from 2013, the parting of the Red Sea is evidence of God doing the impossible to rescue His people.

God can save you from your impossible dead end, too.

The Rescue

The second half of Psalm 77 pivots in tone. The psalmist remembers the Red Sea and his feelings change from distress to hope. I’ve bolded verse 16—when you get to it, note how the psalmist personifies the Red Sea:

Psalm 77:11-20 (NLT)

¹¹ But then I recall all you have done, O Lord;
    I remember your wonderful deeds of long ago.
¹² They are constantly in my thoughts.
    I cannot stop thinking about your mighty works.

¹³ O God, your ways are holy.
    Is there any god as mighty as you?
¹⁴ You are the God of great wonders!
    You demonstrate your awesome power among the nations.
¹⁵ By your strong arm, you redeemed your people,
    the descendants of Jacob and Joseph. Interlude

¹⁶ When the Red Sea saw you, O God,
    its waters looked and trembled!
    The sea quaked to its very depths.
¹⁷ The clouds poured down rain;
    the thunder rumbled in the sky.
    Your arrows of lightning flashed.
¹⁸ Your thunder roared from the whirlwind;
    the lightning lit up the world!
    The earth trembled and shook.
¹⁹ Your road led through the sea,
    your pathway through the mighty waters—
    a pathway no one knew was there!
²⁰ You led your people along that road like a flock of sheep,
    with Moses and Aaron as their shepherds.

I’ve nicknamed the second half of Psalm 77, “The Rescue.” God never leads His people to a dead end. He already had a plan to rescue the Israelites with a miraculous feat of nature: He created a dry pathway through the sea—a pathway no one knew was there! (Verse 19)

If your Red Sea was a person

Try personifying your dead end situation like the psalmist did the Red Sea in verse 16. You may be filled with fear and worry, but your dead end is the one who’s more afraid.

Your Red Sea is looking at God right now, and trembling. Your impossible situation is quaking to its depths.

You might see an impossible dead end, but God knows the path through your Red Sea. The path to walk across might be long, but it will be dry—and easier than swimming!

God never intended for us to suffer the human condition alone. (He also never intended for there to be evil and turmoil in the world—a topic for another post.) Life is full of challenges that may seem like dead ends, but if we believe in God—the Impossible-Buster—He changes our doubt and distress to wonder, awe, reverence, strength, confidence, and hope!

God will hold back the waters of your Red Sea so you can pass through safely.

¹⁹ Your road led through the sea,
    your pathway through the mighty waters—
    a pathway no one knew was there!

Prayer prompt: Dear Lord, thank you for being the Impossible-Buster for your people and for me. Thank you for knowing and caring about me and my troubles. Please show me your dry pathway, and protect me from drowning. Please strengthen my faith and guide me, one step at a time. In Jesus’ name, Amen.

Please message me—I would love to pray for you! Take care and God bless! —Ali

Subscribe now

Sellers, although you now have an option not to pay commissions to the buyer’s agent, this post may help you think through this new change.

Caveat Emptor and Caveat Venditor are two Latin phrases which translate to, “Let the Buyer Beware” and “Let the Seller Beware,” respectively. Normally, Caveat Venditor is used to warn sellers when the purchase contract and courts favor buyers. I’m going to adopt the phrase here to alert sellers of three potential risks of not paying any compensation to the buyer’s side.

Sellers, let’s start by helping you research and learn what’s happening in your area and market.

Check your market’s temperature and trends by interviewing several agents

In this new, post-NAR settlement landscape, it’s more important than ever for sellers to gather market intel and compare several listing brokers. Here’s a list of questions to ask each agent:

1. What is your company’s listing fee and what services are included? Are there any special circumstances when your fee is negotiable or different?

2. What are all my options to pay (or not to pay) compensation to the buyer’s side? What are the pros and cons of each option?

3. When agents at your company represent a buyer, what is the required minimum fee your buyers must agree to pay?

4. What are the other listings in my building/neighborhood paying to the buyer’s side?

5. Does your company allow dual agency? Have you ever represented both the seller and the buyer? What should I be aware of in this scenario?

6. How would you handle an unrepresented buyer who wants to submit an offer to us?

By querying agents from a variety of brokerage companies, you will get a feel for what other sellers in your market are paying to the buyer’s side.

Possible answers you may hear

The whole point of the NAR settlement was to create more competition among real estate companies, so each company’s policies and minimum fees may run the gamut and surprise you. You may hear some of the following answers:

“The previous status quo of sellers paying the buyer’s side is still happening.” This may or may not be true; see if there’s consensus after talking with all the agents.

“My company requires our sellers to pay ___% to the buyer’s side.” If a company has made it their policy, you may not have a choice and be forced to pay the buyer’s side. This is a good reason to interview several agents and shop around. Take note if this seems to be the norm with larger brokerages in your area.

“You don’t have to decide up front about paying the buyer’s side—you can tell buyers you’ll review it as part of their offer.” This may be true in many states and local boards. Buyers can ask for whatever compensation amount in their offer. As you review an offer as a whole, you can choose to accept, counter, or reject the compensation requested, the same as you can negotiate any other part of the offer.

“Be ready to receive offers that include payment to the buyer’s broker commission regardless.” As a tactic, some buyer’s agents aren’t asking in advance if or what the seller is paying. They will just try to include their compensation in every offer.

“If a buyer chooses to represent themselves, this puts more work and liability on me and my company.” This is true. Ask each agent if their company has any extra fees for servicing unrepresented buyers or being a dual agent.

“If you don’t offer any compensation to the buyer’s side, fewer buyers may come see or consider your listing.” Whether this is true remains to be seen, but in a case where other similar listings in your neighborhood or building are offering compensation to the buyer but you are not, your listing might be the last choice to be shown—or not at all. This segues right into the first of three possible risks for sellers who don’t pay the buyer’s side.

1. Seller beware: You may risk fewer showings and offers

Buyers must now agree in writing to pay their agent’s fee if the seller does not. A buyer who can’t or doesn’t want to pay their agent may direct their agent not to show them any listings where the seller is not offering compensation to the buyer’s side. Less showings could mean longer days on market. Less offers could mean less competition between multiple buyers, and weaker offers.

2. Seller beware: You may risk losing full representation

If you don’t offer compensation to the buyer’s side, buyers who can’t pay their agent’s fees may choose to represent themselves or have your agent become a dual agent. Either option could diminish the amount of representation, support, and advice you get. If there’s only one agent involved in the transaction, the risk of being involved in a lawsuit also increases.

Your agent is supposed to assist an unrepresented buyer as needed, without compromising their fiduciary allegiance to you. But anytime your agent communicates directly and often with the buyer, there’s a risk they might cross the line and give the buyer advice—possibly against your best interests.

The moment you and a buyer agree to dual agency, you lose your agent’s fiduciary allegiance. Now, your agent is supposed to remain neutral—which is not easy. How can you be sure the dual agent is not favoring the other side?

3. Seller beware: Are you OK to give “rich” buyers an unfair advantage?

If you don’t offer compensation to the buyer’s side, you will absolutely tip the scales in favor of “rich” buyers who have more means to pay their agent. If you’re a seller who wants to be as fair to all as possible, this may wreak havoc on your conscience.

It’s one thing if a buyer has signed a Buyer’s Representation Agreement and has knowingly and willingly agreed to pay their agent. This buyer has considered their budget and determined they can afford the extra cost. The higher the price point of your home, the more you’ll see buyers who are not struggling.

But homes in a starter-home price point can attract buyers from two extremes: cash-strapped, first-time buyers vs. investors with lots of cash. When there is a multiple offer situation, we agents witness this lopsided match-up; our hearts break when, all too often, the cash-rich buyers win. The cash-poor buyers have already scrimped and saved for a small down payment; they’re dejected with these NAR changes with the possibility they’ll now need even more cash to pay for an agent.

A seller who strives to be fair could make a conscious, moral decision to level the playing field by offering compensation to all buyers.

Here are three verses from Proverbs 16 which encourage us to act fairly in our business dealings:

Proverbs 16:11 (NIV)

Honest scales and balances belong to the Lord;
    all the weights in the bag are of his making.

Proverbs 16:2 (NIV)

All a person’s ways seem pure to them,
    but motives are weighed by the Lord.

Proverbs 16:8 (AMP)

Better is a little with righteousness
Than great income [gained] with injustice.

Dear seller, would paying some or all of the buyer’s broker fee be the fair and right thing to do?

In closing, I understand that sometimes it’s the seller who is the one struggling financially. If you are not breaking even or realizing a profit as you sell, you and your agent can discuss what buyer compensation—if anything—is fair and doable for you.

Thank you for reading this NAR series! The industry changes are now in full effect—may God help us all!

Leave a comment

Whether you’re a fellow real estate agent, a seller, or a buyer, I welcome your comments and questions as we navigate this new era in real estate together. I plan to write a “How it’s going” update in a month or two. Aloha and God bless! Ali

Share

There is fear in the industry that if buyers increasingly must pay for their agent, some buyers may opt out of having representation. This post will explain your other two options as a buyer: to go unrepresented, or dual agency with the seller’s agent. Unfortunately for buyers, both of these usually tip the scales in the seller’s favor.

Later in this post is a list of questions to ask potential buyer’s agents with the new NAR rules and practices in mind.

Representation defined

Before we talk about being an unrepresented buyer or working with a dual agent, let’s review what it means to be fully represented. Merriam-Webster’s definition of representation (in the real estate sense) is:

“the action or fact of one person standing for another so as to have the rights and obligations of the person represented”

When you hire a buyer’s agent, they will stand for you, your rights, and your best interests. Your agent’s motives will be aligned with yours; your agent is your advocate and confidante. Buying a home is stressful enough! You’ll have one less layer of concern knowing your agent is on your side and looking out for you.

As you continue to read about your two other choices, contrast them with having a buyer’s agent fully represent you.

What are the rules for open houses?

Next, let’s understand the new NAR rules for open houses: buyers do not need to have an agreement with a buyer’s agent to visit open houses. So if you’re casually looking around or you like to visit open houses as a hobby, no problem!

The NAR rules still allow buyers to visit open houses or arrange a private showing directly with the listing agent because the agent showing the listing represents the seller, not you, the buyer. But you might notice the agent only points out positive things about the home, or says things like “the seller’s price is firm.” Always remember the agent at open house is working for the seller’s best interests.

An unrepresented buyer means a fully-represented seller

Being unrepresented means you stand alone. You’ll communicate directly with the seller’s agent and, however friendly or helpful they may seem, they work for the seller. There will always be a question mark in your mind if you can trust the seller’s agent.

The listing agent has the longer, stronger relationship with the seller: the seller has signed a listing agreement and the agent has agreed to act 100% on the seller’s behalf. The listing agent can do some things for you—draft documents, answer basic questions, refer you to a home inspector or loan officer—but all may be slanted toward the seller’s best interests (and possibly their own, so they can collect their commission paycheck).

You may not realize or appreciate everything a buyer’s agent does—until you choose not to work with one. Do you have confidence to analyze comps to see if the list price of a home is fair? Can you read the fine print in a contract and fully understand your rights—which you’ll then need to fight for on your own? The seller will have the advantage at every juncture because they have the full representation of their agent; if you choose to be unrepresented, you’ll have no one backing you up. Buyer beware!

Dual agency means a divided agent

The third option buyers have is for the seller’s agent to also represent them. If it sounds contradictory, yes, it is. How can one agent—a human being with weaknesses and biases—represent both sides in a negotiation?? It’s almost impossible for a dual agent to remain completely neutral and impartial—so much so that many states and local boards ban dual agency; others require both the seller and buyer to sign disclosures which waive certain rights.

When a dual agent handles dual agency correctly, the agent can be relegated to the level of an order-taker and facilitator, not able to favor or advocate for either side. For the buyer, the basic problem again is the agent has the longer, stronger relationship with the seller. The agent and seller have been enjoying a confidential, fiduciary relationship long before you came on the scene. They might be lifelong friends, or have worked a string of real estate transactions together. If you join the party—kind of like a third wheel—now the dual agent is supposed to remain neutral. Do you really trust that they can? Buyer beware!

The coming paradigm shift for agents

Until now, it’s been rare for an agent to handle dual agency transactions—in fact, it seemed suspicious if an agent did a large proportion of their business as a dual agent. We agents are wired to say and do certain things as we advocate for a buyer vs. when we work for a seller. Agents will need to learn what they can and cannot say if dual agency becomes more common.

If the new paradigm creates more unrepresented buyers or dual agent situations, it will force agents to become more careful to remain neutral. Some agents are already saying they refuse to put themselves in a dual agent position for fear of lawsuits. These lawsuits could come from either the seller or buyer accusing the agent of not remaining neutral. In our litigious culture, this is a very real threat.

The new paradigm may also see sellers—possibly the ones who don’t want to pay anything to the buyer’s side—express they’d prefer their agent be the only agent in the transaction. Maybe it’s for the commission savings or maybe these sellers know the potential for a power imbalance—in their favor. I would personally decline to work as a listing agent for this type of seller if I sense they are intentionally seeking out an advantage over unrepresented buyers or in a dual agency.

The opposite recently happened to me: there will also be (wise) sellers who refuse to allow their agent to help an unrepresented buyer—let alone be a dual agent—for fear they will lose their own full representation. These sellers don’t want their agent to be divided in their allegiance.

Questions to ask a buyer’s agent in light of the new NAR rules

Unless you are that rare, experienced real estate buyer who has confidence with legal forms, evaluating a home, and analyzing comps (which is about to get more complicated adding the varying amounts of compensation to the mix), please think twice about the risks of going unrepresented or working with the seller’s agent as a dual agent.

Many sellers will continue to offer some amount of compensation to the buyer’s side, and a savvy buyer’s agent can help get the seller to pay all or most of their fee. Buyers, if you’ve read the second post in this series, you understand you don’t have to give up your right to a buyer’s agent out of fear of having to pay their fee.

Because each realty company will be setting their minimum buyer’s fee, this is a good opportunity to comparison shop and interview a few buyer’s agents—even if you already have an agent. Everything is changing on August 17, so buyers, be aware!

Here are some questions to ask a buyer’s agent:

1.      Are you seeing many listings in our market where the seller is not paying anything to the buyer’s side?

2.      How would you help me craft an offer if the seller is not offering anything to the buyer’s side?

3.      What is your company’s minimum fee and what services are included?

4.      Can you give me a recent example where you helped save your buyer from paying your minimum fee?

5.      Would you allow me to sign a Buyer’s Representation Agreement for a shorter period of time, to see if we are a good fit for each other?

Countdown to August 17!

Will we start to see listings with no buyer’s side compensation sit for longer on the market? Will buyers shun these listings and sellers? In the next post, we will consider these and more possible pitfalls for sellers if they don’t offer anything to the buyer’s side. Subscribe for free so you you don’t miss the next post!

Subscribe now

(Disclaimer: There are already some markets across the country that have implemented changes ahead of August 17. As of the original date of this post, I’ve reviewed initial drafts of the new forms from the Hawaii Association of Realtors. Each state or local MLS across the country will be producing their own standard forms. This post will be revised as necessary after the final forms are released on August 12, 2024.)

Leave a comment

American real estate has historically been structured on the belief that each side of a transaction (seller and buyer) has the right to their own agent. Of course there are exceptions, but most residential resales have had two agents, each representing the best interests of their respective clients.

When the new National Association of Realtors (NAR) rules go into effect on or before August 17, 2024, some fear the number of transactions having only one agent—the seller’s—will increase.

If you’re a buyer, here are the two major changes to understand:

1.      Before a buyer’s agent can show you a listing, you must sign a Buyer’s Representation Agreement. This creates an exclusive relationship allowing the agent to represent you in your home search and purchase.

2.      In the Buyer’s Representation Agreement, you agree to pay your agent’s fee in the event the seller will not. Each company will set their minimum fee which could be a percentage of the sale price, or a flat dollar amount.

(Disclaimer: As of the original date of this post, I’ve reviewed initial drafts of the new forms from the Hawaii Association of Realtors. Each state or local MLS across the country will be producing their own standard forms. This post will be revised as necessary after the final forms are released on August 12, 2024.)

Is the NAR pushing out buyer’s agents?

The original recent class actions against the NAR were brought on by disgruntled sellers. If you read the first post in this series, the new rules for sellers makes paying the buyer’s broker optional. At first glance, the new rules for buyers might seem anti-buyer—and anti-buyer’s agents—in order to placate and favor sellers.

On the contrary, I think the new buyer rules help perpetuate the existence and heighten the value of buyer’s agents. Buyer’s Representation Agreements cement buyers’ continued right to representation while ensuring buyer’s agents will be paid for their work. Remember, most agents are paid on commission and will continue to work without pay until they actually close a sale.

In the past, buyers weren’t necessarily required to commit or sign an agreement; they could work with multiple buyer’s agents as long as they didn’t sign an exclusive agreement with any of them. Most serious buyer’s agents would require a buyer to eventually sign a commitment; getting this commitment gave the agent confidence and motivation—which will continue to be the case. No one works harder than a buyer’s agent who has their client’s trust and commitment!

Buyers will have options, too!

With the new settlement rules, the NAR is also trying to placate the Department of Justice’s accusations of anti-trust practices. The DOJ wants to see more competition in the real estate industry to ultimately bring down costs for sellers and buyers.

For decades we’ve had competition between listing brokers and what they charge sellers; now there will also be competition between buyer’s brokers as they set their minimum fees. Buyer’s broker X may require 2.5% of the sale price as their fee to represent you; broker Y may only require 1.5%; broker Z might set a flat fee.

Buyers have always had the following three representation options (though until now, options #2 and #3 were rare):

1.      Hire a buyer’s agent to expertly guide you and represent your best interests; OR

2.      Represent yourself—the seller’s agent may assist you with paperwork, but their fiduciary allegiance is to their seller—you will be unrepresented; OR

3.      Have the seller’s agent also represent you: dual agency.

Unless you regularly buy and sell real estate and are very comfortable with legal documents and evaluating a home, I recommend you do not attempt option #2 or #3. A future post in this series will explain the possible pitfalls and disadvantages of buyers not having their own agent.

Have you ever purchased a home without an agent? What were the pros and cons?

Leave a comment

What if you’re afraid to commit to a particular agent?

Perhaps you don’t like the idea of committing to a particular buyer’s agent. Perhaps this agent was a referral from a friend, or you’ve read good online reviews, but the agent is still a stranger to you. As awkward as it is (it can be awkward for us agents too), agents must follow the new NAR rules and have you sign a Buyer’s Representation Agreement before we can work for you.

Rest assured: the Buyer’s Representation Agreement is not a terribly binding commitment. Each company or regional association will have their own form, but there should always be a beginning and end date for the relationship and a way for you to cancel. You could try working with an agent who will allow you to sign for a short period of time and give them a chance to earn your continued business.

It’s worth taking the time to interview 2-3 buyer’s agents. A future post will have suggestions for interview questions and what to look for when choosing a buyer’s agent—including buyers’ new ability to comparison shop for buyer’s broker fees.

What if you can’t afford to pay for a buyer’s agent?

The scariest part of the new Buyer’s Representation Agreement is that buyers must agree to pay their agent if the seller will not. By August 17, each real estate company will set their own minimum fee for their Buyer’s Representation Agreement form. Savvy buyers will shop around not only for a great buyer’s agent—but for one whose company’s minimum fee is advantageous.

The biggest takeaway I’d love for buyers to remember is that you will only need to pay your agent if the seller will not. There will be many—maybe a majority—of sellers who will still offer some kind of compensation to the buyer’s side. For sellers who don’t indicate any compensation up front, they are allowed to change their minds.

You can read the first post in this series to understand that the buyer’s compensation can be negotiated during the offer and counteroffer stage. Regardless what the seller stated they would pay (or not), your buyer’s agent can advocate for compensation or seller credits within your offer. Buyer’s side compensation will become another negotiation point along with the sale price and other terms.

So, buyers, please do not direct your agent to show you only listings where the seller is offering compensation! If you are working with an experienced buyer’s agent, they will not only help you research what the seller is offering (because another new NAR rule is that commission information can no longer be listed in the MLS), they will help you craft your offer to include their compensation. The seller can review your offer as a whole package.

It pays to shop around for a buyer’s agent

How much your buyer’s broker sets for their minimum can play into your budget—and also your offer strategy. Consider three examples where the seller is offering 2.5% commission to the buyer’s side, but each buyer’s broker fee is different:

1.      The seller is offering 2.5% to the buyer’s side. Your buyer’s broker minimum fee is 3.0%. You would need to pay 0.5% out of your pocket to cover your buyer’s broker fee.

2.      The seller is offering 2.5% to the buyer’s side. Your buyer’s broker minimum fee is 2.5%. Your buyer’s broker fee is fully covered by the seller.

3.      The seller is offering 2.5% to the buyer’s side. Your buyer’s broker minimum fee is 1.5%. Working with this buyer’s broker allows you to sweeten your offer and show the seller you will save them 1.0% in buyer broker commissions.

To fully understand example #3, there is another new NAR rule that is a game changer: your buyer’s broker may not collect more than what’s agreed upon in the Buyer’s Representation Agreement. So a company offering a lower minimum fee can give their buyers an advantage. As you interview buyer’s agents, also be sure to ask what services are included with their fee.

More posts in this NAR series coming soon

Don’t miss any future posts—subscribe and receive new posts by email—it’s free and you can unsubscribe anytime. Upcoming topics will include:

• What to ask and watch for when interviewing a buyer’s agent/broker

• Understanding dual agency and unrepresented buyers—and the possible disadvantages for buyers

• Possible disadvantages for sellers who don’t pay the buyer’s side

• A moral conundrum for sellers

Do you have any topics or questions you’d like to see covered in another post?

Leave a comment

Until next time, Aloha and God bless—Ali

Subscribe now

For decades, the general practice was for the seller to pay the commissions not only to their own listing broker but also to the buyer broker. A majority of transactions had total commissions of 5-6% of the sale price. This longstanding practice was the target of two class actions in 2021 alleging the National Association of Realtors (NAR), multiple listing services (MLS), and major brokerages broke antitrust laws and colluded to perpetuate this commission structure.

On October 31, 2023, the NAR and the brokerages were found guilty.

On March 15, 2024, the NAR settled the major suits, mostly to control the amount to be paid out and also prevent and protect members from ongoing suits. As part of the settlement, NAR outlined plans for changes to industry practices. The biggest changes are:

1. Sellers will no longer be required to pay the buyer broker (but they may if they choose). The previously combined commissions will be “decoupled”—sellers can decide how to pay each broker as separate line items.

2. The MLS field alerting buyers and agents the amount of commission to the buyer broker will be eliminated. Each state or local MLS will decide if they want to replace it with a new, approved field for “seller concessions.” (The Honolulu Board of Realtors will not have this optional concessions field. The old commission field will be removed from August 12.)

3. Buyers who want representation must sign a written buyer agreement before an agent shows them any listings.

4. The buyer agent’s minimum fee will be stipulated in the written buyer agreement. A buyer must agree to pay their agent in the event a seller isn’t paying any or the full amount of their buyer agent’s minimum fee.

These new rules go into effect August 17, 2024 for NAR member brokerages and the MLS boards who opt into the settlement. (Keep reading to learn of one notable MLS that’s opting out. The Honolulu MLS I belong to has opted in.)

The entire industry is scrambling right now to prepare new forms all while wondering exactly what the proper interpretation and implementation of the new rules will look like. Each state or local MLS will probably develop their own practices which may evolve over time, and change with market conditions.

It’s too early to say much definitively, but I’ll try to clarify what we know at this point. This first post will cover changes to the listing and offer paperwork, written mainly for sellers (but good-to-know info for buyers). I’ll mostly report on the facts here, with an opinion or two. A future post will be a little heavier on my opinions!

(Disclaimer: As of the original date of this post, I’ve reviewed initial drafts of the new forms from the Hawaii Association of Realtors. Each state or local MLS across the country will be producing their own standard forms. This post will be revised as necessary after the final forms are released on August 12, 2024.)

Subscribe now

Choices for sellers

The news articles with clickbait titles like “sellers no longer have to pay buyer agents” are correct, but sellers can still choose to pay—and many will see the advantages of doing so. Choose and choice are the key words, and a specific seller’s situation and/or market conditions may influence how many sellers will continue to pay something to the buyer broker.

Although the final versions of the new contracts have not yet been released, here are a few things we might expect:

·       When hiring an agent, sellers will continue to sign a listing agreement. Instead of one line item with both agents’ commissions combined, the new form will first have a fill-in-the-blank paragraph stipulating how much they will pay their listing agent. It could be stated as a percentage of the sale price or a set dollar amount. Previously where you saw a number like 5-6% for the combined fee, now you may see the seller paying their listing agent a number like 2.5-3%, for example.

·       In a separate, second paragraph, sellers will indicate if and what they will offer to the buyer broker, or to the buyer directly. The commission amount will no longer be allowed anywhere in the MLS listing, so buyer agents must ask the listing agent for details. Details about any seller concessions (credits) are still allowed in the MLS remarks.

·       Regardless what a seller might have indicated on the listing agreement, now buyers and their agents may submit their desired compensation in their offer. This would be negotiated like the offer price or any other term. Whatever was originally agreed in the listing agreement can be overridden.

·       Lastly, there is a paragraph where, if checked, sellers can choose to postpone their decision about compensation to the buyer’s side. This allows sellers to review each incoming offer as the sum of various parts: the offer price, various terms and timelines, and perhaps a commission, credit, and/or concession to the buyer’s side. As always, the seller may choose to accept, counter, or reject any part of the offer.

State up front, or postpone: How will I guide my sellers?

When I am wearing my listing agent hat and working for my seller’s best interests, I feel the option to wait to review each offer (the last bullet point above) will give sellers the most flexibility. For example, if we are in a hot seller’s market and receive multiple simultaneous offers, it may be advantageous to the seller to allow buyers and their agents the flexibility to make their offer more attractive by possibly reducing the commission amount, or taking it out altogether. Sadly, this gives cash-rich buyers even more of an upper hand than they already have. A future post in this series will go deeper into this conundrum.

Listing agents and sellers will need to do a little math to review and compare offers that come in apples to oranges. We do this now to some degree, for example: Buyer A offers over-asking but requests a large credit toward closing costs or a buy-down mortgage loan; and Buyer B offers under-asking but without any seller credits.

If I have a seller who tells me up front they won’t give anything to the buyer’s side, I might suggest they at least choose to postpone the decision. We already know the longer a listing sits, the softer the seller’s expectations become on price; their views on paying the buyer agent might similarly soften.

However, this “seller will wait and see” option could backfire and be misunderstood by buyers and their agents. Say there are two similar homes for sale: Seller A says up front they will give 3% commission to the buyer’s agent; Seller B says they’re deferring their decision. Will listing A see more buyer activity? Possibly.

More competition, less transparency?

Besides what they charge for their listing service, some listing brokerages may recommend—or even require—through a company policy that the sellers they represent continue to pay the buyer’s side. Of course, a seller can choose not to list with such a company. I strongly encourage sellers to interview several listing brokers; you may find a wide variety of requirements or minimums.

This is precisely the goal of the Department of Justice’s on again, off again, antitrust investigation of NAR. Abolishing the previous standard total 5-6% commission opens up competition among listing brokerages, with the consumer (at least the sellers) possibly saving money. In a future post in this series I will outline suggested interview questions for sellers as they talk with listing agents.

The new NAR rule removing the commission field from the MLS is an attempt to thwart bad-acting buyer agents from filtering listings based on how much commission is being offered. However, the MLS for Western Washington state has opted out of the new NAR rules, claiming the removal of the commission field is actually a reduction in transparency for consumers and could open up deceptive practices.

Ethical listing agents will report exactly how much the seller indicated they will give to the buyer’s side (or not). In addition, it would be an excellent practice to remind buyer agents they can suggest otherwise in their offer. As has always been my practice, I will continue to cheerfully tell any buyer agents inquiring on my listings: “Any written offer is welcome and will be presented to the seller for their review.”

Commission vs. Compensation vs. Concessions vs. Credits

Although the new NAR rules prohibit commission or compensation details in the MLS, the rules still allow mentions of seller concessions or credits. I suspect this will be a source of confusion among agents; we sometimes mistakenly use these terms interchangeably.

I searched online and found this official NAR definition of seller concessions. Although examples are given, what constitutes a concession is somewhat open and undefined—we could see some creative offerings in the upcoming Wild Wild West environment. An extreme example in a recent post by industry pundit, Rob Hanh, hypothesizes if a seller offers the buyer’s agent a trip to Maui, could this be mentioned in the MLS? (And, would it go against a buyer agent’s fiduciary duty to accept the trip?)

This kind of question will need to be hashed out this fall and winter as the new changes take effect IRL. If interest rates persist in the 7% range, we may see creative incentives like the Maui trip (although it’s not much of an incentive for us agents who live and work in Hawaii!). Later, perhaps in 2025, when mortgage interest rates hopefully drop and a wave of buyers return to the market, will sellers assert their right not to offer anything to the buyer’s side?

Unrepresented Buyers

The last tip for sellers is to look out for a paragraph outlining possible additional fees if the buyer is unrepresented. The listing agent and brokerage do more work and shoulder a bigger liability servicing both the seller and an unrepresented buyer, thus this additional fee or percentage commission. This is already in place at many companies already.

There is a fear more buyers will opt not to have representation, especially when the seller is not offering compensation to the buyer’s side. There is even talk that some buyers may instruct their agents not to show them any such listings—which I would strongly advise buyers against doing. In the next post in this series (link here), I discuss how the new NAR rules affect buyers.

Subscribe now

More posts in this series coming soon

Sellers, stay tuned for a future post with interview questions for potential listing agents, as well as why you might seriously consider paying something to the buyer’s side.

Buyers, you’ve already had it rough with interest rates between 6% and 8% since the end of 2022. The NAR changes could affect affordability even more. The next post in this series (link here) is to help buyers understand and navigate these changes—and not lose hope.

Those of us in the industry are worrying how these changes will play out. There has already been less business for many of us recently; we fear even less pay ahead. If you are a real estate agent or loan officer looking for encouragement, please check out this previous post.

I welcome your comments and questions—comment here publicly or message me privately, but if you have a question, there might be others who have the same question and would benefit from seeing a public, open dialogue. Subscribe to my blog for free to receive all the future posts in this NAR series in your email inbox. Aloha and God bless, Ali

Leave a comment