Moehrl vs. National Association of Realtors (NAR)

New changes that are negatively impacting Real Estate Agents, to the direct benefit of Investors 

The recent Moehrl vs. National Association of Realtors settlement brought about new rules that changed how real estate commissions are structured and disclosed. It changed some of the traditional roles real estate agents have played, and also opened the door to working with investors in many different ways. Listing a property on the MLS or other sites to get maximum exposure, often attracts multiple offers that drive up the price. However, that is not of concern to investors.

Why Low Market Exposure Is Not a Concern to Investors:

1. Exclusivity toward Off-Market Deals: Generally, the most important things for the investors are usually those off-market or not listed on the MLS. That might yield better pricing opportunities since competition is limited and the sellers may be more anxious to sell quickly without going through all the hassles of extensive marketing.

2. Targeted Acquisitions: Investors usually have strict criteria for the property and look for deals that meet their investment goals, such as properties in distress, foreclosed, or even undervalued. In such a purchase, radical market exposure is not necessary and may just drive up the price, which will go against the investor's goals.

3. Negotiation Power: For investors, without the stress of multiple buyers, they can drive better purchase prices and other favorable terms, creative financing options, and flexible points at closing times. The lack of a broader market often bolsters the investor's bargaining position.

4. Speed and Efficiency: Investors appreciate faster and more efficient transactions than those exposed to the wider market. The deal can be closed sooner since it bypasses the traditional process of listing, marketing, and awaiting offers, a very crucial aspect when time is of essence.

Conclusion: For investors, the reduced market exposure is more often a weakness than it is an active strategic decision. It means the capacity or ability to focus on certain properties, to negotiate terms in their favor, and to close deals quickly-all of which are critical pieces of any successful real estate investment. Therefore, from the standpoint of investment strategies, reduced market exposure is generally a plus rather than a limitation.