Know Before You Sell

Background · 2019 to Present

The NAR Lawsuit, Explained

The real estate industry changed fundamentally in 2024. Here is what happened and what it means for you as a seller.

2019

Sitzer/Burnett Case Filed

Missouri home sellers sued NAR and major brokerages, alleging that the requirement to offer buyer-agent compensation through the MLS artificially inflated commissions and violated antitrust law.

Oct 2023

$1.8 Billion Verdict

A federal jury found NAR and the brokerages liable. The verdict, subject to trebling, exposed the industry to billions in damages and put the entire commission structure under scrutiny.

Mar 2024

$418M Settlement Reached

NAR agreed to pay $418 million and change its rules. Sellers would no longer be required to offer buyer-agent compensation through the MLS.

Aug 17, 2024

New Rules Take Effect

MLS platforms removed blanket buyer-agent compensation offers. Buyers must now sign written representation agreements before touring homes. Seller obligations shifted significantly.

Impact · What This Means for You

What Changed for Sellers

The settlement rewrote long-standing norms. Understanding the differences helps you negotiate from a position of strength.

Before · Pre-August 2024

xSellers routinely offered 2.5-3% to buyer's agent via MLS
xBuyer agent compensation was baked into listing agreements
xBuyers rarely negotiated or paid their own agent directly
xTotal commission 5-6% was industry standard
xCompensation terms not always disclosed upfront

After · Post-August 2024

vSeller decides whether to offer buyer-agent compensation
vBuyers must sign written agreements before touring your home
vCompensation is fully negotiable and must be disclosed
vTotal commissions trending lower in competitive markets
vSellers have more control and clarity on net proceeds

You Are Not Required to Pay

Offering buyer-agent compensation is now optional. Strategically offering it can attract more buyers and stronger offers, especially in a balanced or slower market.

Buyers Come Pre-Committed

Every buyer who tours your home has signed a representation agreement. They are serious, pre-qualified, and ready to move, which reduces wasted showings.

Transparent Negotiation

All compensation terms must be in writing and disclosed. This creates a cleaner transaction with no surprises at closing for either party.

Timing & Market

Is Now a Good Time to Sell?

Honestly, it depends on your situation more than the market. But here are the signals we look at together when we sit down with you.

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How Fast Are Homes Moving?

When homes in your neighborhood are going under contract in under three weeks, buyers are competing and you have the upper hand. When homes are sitting for 45 days or more, buyers know it and they negotiate harder. We track this for your specific area so you always know where you stand before you list.

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Are Homes Selling Above Asking?

When the sale-to-list ratio is over 100%, sellers are winning bidding wars. Below 97% means buyers are getting discounts. This number tells us more about your real negotiating position than any headline will. We pull it for your zip code, not a national average.

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Spring Is Strong, But It Is Not the Only Window

March through June tends to bring the most buyers nationally. But a well-prepared home listed in September will beat an unprepared home listed in April every time. The market sets the conditions. Your preparation and pricing determine the outcome.

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What Are Interest Rates Doing?

When rates rise, buyers qualify for less and the pool shrinks. When rates drop, buyers rush back in. We factor this into your pricing strategy and timing conversation because it directly affects how many serious buyers will be looking at your home the week you list.

Pricing Strategy

How Do You Price Your Home Right?

Pricing is where most sellers either win or lose money before a single buyer walks through the door. Here is how we think about it.

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We Start With the Real Numbers

A comparative market analysis looks at what similar homes have actually sold for recently, not what sellers are asking. We look at size, condition, location, and how long those homes sat. That data is the starting point for every pricing conversation we have with you — and we share it with you in plain language, not a spreadsheet.

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Sometimes Lower Gets You More

In a strong market, pricing just under the top of the range can create urgency and trigger competing offers that push your final price higher than a higher starting point would have. It feels counterintuitive, but we have seen it work again and again. We will tell you honestly when this strategy makes sense for your home and your market.

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Overpricing Is the Most Expensive Mistake You Can Make

When a home sits on the market, buyers start wondering what is wrong with it. After 30 days, you are fielding lowball offers from people who smell blood. You almost always end up netting less than if you had priced it right from day one. We would rather have a hard conversation about price upfront than watch that happen to you.

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Buyers and Appraisers Are Looking at the Same Thing

Price per square foot is one of the first numbers buyers compare when they look at your home versus others. If yours is significantly higher than comparable homes without a clear reason — better finishes, a larger lot, a premium location — buyers will notice and appraisers will push back. We make sure your price tells the right story.

Prep & Presentation

Should You Renovate or Sell As-Is?

We get asked this constantly. The honest answer is: it depends on your home, your budget, and your timeline. Here is our general guide — but we will always give you a specific answer for your specific situation when we walk through your home together.

Worth Your Time and Money

✓Fresh interior paint in neutral tones
✓Deep cleaning and decluttering
✓Professional staging
✓Landscaping and curb appeal
✓Fixing obvious defects like leaks or broken fixtures
✓New hardware on cabinets and doors
✓Professional photography and video

Usually Not Worth It

✗Full kitchen remodel
✗Bathroom gut renovation
✗New flooring throughout
✗Roof replacement unless a buyer requires it
✗Additions or structural changes
✗Pool installation
✗High-end appliance upgrades

A word on staging: We know it feels like an extra expense you did not budget for. But staged homes consistently sell faster and for more money. On a $1M home, even a 1% improvement in sale price is $10,000 back in your pocket. Staging typically costs $2,000 to $5,000. That math almost always works in your favor — and we will tell you honestly when it does not.

The Process

What Actually Happens When You Sell

Most sellers have never done this before, or it has been years. Here is what to expect at each stage — no jargon, no surprises.

Week 1-2

Getting Your Home Ready

Before your home ever hits the market, there is work to do. You will sign a listing agreement, complete required disclosures about your property, and take care of any agreed-upon repairs or staging. We coordinate the professional photographer and make sure every detail is locked in. The goal is to launch with your home looking its absolute best because the first week on market is almost always your best week.

Week 2-3

Buyers Start Coming Through

Open houses and private showings begin. This can feel exciting and a little nerve-wracking at the same time — strangers walking through your home, judging every corner. That is normal. In a healthy market with the right price, you will start seeing offers within 7 to 14 days. We give you feedback after every showing so you always know what buyers are saying.

Week 3-4

You Accept an Offer and Escrow Opens

Once you choose an offer, a neutral third party called an escrow company holds everything — the buyer's deposit, the documents, the funds — until closing. The buyer typically puts down 1 to 3% of the purchase price as earnest money to show they are serious. From here, you have roughly 30 days to close, though timelines vary.

Week 4-6

The Buyer Does Their Due Diligence

This is often the most stressful part for sellers. The buyer will inspect your home, review your disclosures, and get an appraisal from their lender. Issues can come up. Buyers sometimes ask for repairs or credits. We have been through this hundreds of times and we will help you respond strategically — not emotionally — to anything that comes up.

You Sign and the Money Hits Your Account

At the end of escrow, you sign your closing documents at the title company. The buyer's lender funds the loan. The deed records with your county — and usually within one to two business days, your net proceeds are wired directly to your bank account. That is the finish line. We make sure you cross it without any last-minute surprises.

One thing sellers often do not know: In California you are required to complete several disclosure forms including the Transfer Disclosure Statement, the Natural Hazard Disclosure, and the Seller Property Questionnaire. These are not optional and they are not something to rush through. We walk you through every one and make sure you are protected. Sellers who skip this step or fill it out carelessly can face legal liability even years after closing.

Seller Costs

What Are Your Actual Closing Costs?

Sellers typically net 5-8% less than the sale price after all costs. Here is the standard breakdown.

Cost Item	Typical Amount	Notes
Seller Agent Commission	2-3%	Negotiable since NAR settlement
Buyer Agent Commission	0-2.5%	Now optional; sellers may offer to attract buyers
County Transfer Tax	Varies by county	Typically $1.10-$1.65 per $1,000 of sale price
City Transfer Tax	Varies by city	Some cities add their own tax on top of county tax
Escrow Fees	$1,500-$3,000	Typically split between buyer and seller
Title Insurance	$1,000-$2,500	Seller typically pays owner's policy
Home Warranty (optional)	$400-$700	Often offered by seller to attract buyers
Staging & Repairs	$2,000-$10,000+	Varies widely by property condition

Estimates only. Actual costs vary by transaction and location. Use the proceeds calculator below for a personalized estimate.

Tool · Estimate Your Bottom Line

Net Proceeds Calculator

Get a realistic picture of what you take home. Adjust any field and the estimate updates instantly.

Sale Price ($)

Mortgage Balance ($)

Your Agent Commission (%)

Buyer Agent Offer (%, optional)

Escrow & Title Fees ($)

Transfer Tax ($)

Repairs & Staging ($)

Other Costs ($)

Your Estimate

Sale Price$950,000

Mortgage Payoff-$420,000

Your Agent (2.5%)-$23,750

Buyer Agent Offer (2.5%)-$23,750

Escrow & Title-$4,500

Transfer Tax-$1,100

Repairs & Staging-$3,000

Other-$0

Estimated Net Proceeds $473,900

This is an estimate for planning purposes only. Actual closing costs vary by location and transaction. Contact Allure Real Estate for a precise seller net sheet tailored to your property.

After the Sale

What Comes Next?

Closing day is exciting — and then reality sets in. Here is what to think about once the proceeds hit your account.

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What Do You Do With the Money?

Most sellers roll proceeds into their next home. But some pay off debt, invest, or split the difference. There is no one right answer. What matters is making that decision intentionally, not in a rush. We can connect you with a trusted financial advisor if you want to think through the options before you act.

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What If You Have Not Found Your Next Place Yet?

This is one of the most common and stressful parts of selling. You do not want to be homeless, but you also do not want to pass up a good offer. Options include negotiating a rent-back agreement where you stay in the home for up to 60 days after closing, making a contingent offer on your next home, or using a bridge loan to buy before you sell. We help you think through which one fits your situation.

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Do You Owe Capital Gains Tax?

If this has been your primary residence for at least 2 of the last 5 years, you may be able to exclude up to $250,000 in profit from federal capital gains tax — or $500,000 if you are married filing jointly. Gains above that are taxed at long-term capital gains rates. California taxes all capital gains as ordinary income. Talk to your tax advisor before you assume you owe nothing — or that you owe a lot.

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Selling a Rental? A 1031 Exchange Can Save You Thousands

If you are selling an investment or rental property, you may be able to defer your capital gains taxes entirely by reinvesting the proceeds into another investment property through a 1031 exchange. You have 45 days to identify your replacement property and 180 days to close. This is a powerful strategy when it fits — but it requires planning before you sell, not after. Ask us about it early.

Answers · Common Questions

Questions We Hear All the Time

No jargon, no runaround. Just straight answers to the things sellers actually want to know.

Before August 2024, sellers were essentially expected to pay the buyer's agent — it was baked into how the MLS worked. That rule is gone now. You are no longer required to offer buyer-agent compensation at all.

That said, whether you should offer it depends on your market and your goals. We will give you an honest recommendation based on what is actually happening with buyers right now — not a one-size-fits-all answer.

No, you are not required to. But here is the nuance most agents do not explain: a buyer who needs you to cover their agent fee might still bring you a higher offer than a buyer who does not. The question is not just "do I pay the buyer's agent" — it is "which offer actually puts more money in my pocket at closing." We run those numbers with you on every offer so you are making a real decision, not a gut reaction.

Maybe, maybe not. If this has been your primary residence for at least 2 of the last 5 years, you can likely exclude up to $250,000 in profit from federal capital gains tax — or $500,000 if you are married filing jointly. Gains above that get taxed at long-term capital gains rates.

California is a different story — the state taxes all capital gains as ordinary income regardless of how long you have owned the home. We always recommend talking to a tax advisor before you close so there are no surprises when April rolls around.

A 1031 exchange lets you sell an investment or rental property and defer your capital gains taxes by rolling the proceeds into another investment property. It is a powerful tool when it fits.

It does not apply to your primary residence. But if you own a rental in addition to your home, this is worth a conversation before you sell — not after. You have 45 days to identify a replacement property and 180 days to close, so the clock starts the moment you sell.

Spring historically brings the most buyers. But we have seen beautifully prepared homes sell for strong prices in November and weak homes struggle in May. The market sets the conditions — your preparation and pricing determine your outcome.

The best time to sell is when your home is genuinely ready: cleaned, staged, any obvious issues addressed, and priced correctly from day one. A well-prepared home will outperform an unprepared one in any season.

Interview more than one. Ask them what similar homes have sold for recently, what their average days on market is, and exactly how they plan to market your home beyond putting it on the MLS. If they cannot answer those questions specifically, keep looking.

The agent you choose has a measurable impact on your final sale price. This is not the place to go with whoever is most convenient or least expensive. Go with whoever you trust to fight for your outcome.

In California, sellers are required to complete several forms including the Transfer Disclosure Statement (TDS), the Natural Hazard Disclosure, and the Seller Property Questionnaire. You are required to disclose everything you know about the property that could affect its value or desirability.

This is not something to rush or guess at. Sellers who do not disclose known issues can face legal liability years after the sale closes. We walk you through every form and make sure you are protected before anything goes to a buyer.

Your Agents

Meet the Team

20 years of East Bay real estate. Two agents fully committed to getting you the best outcome when you sell.

Parm Rahi

Broker · Owner DRE #01727873

Parm has been in East Bay real estate for over 20 years. He founded Allure Real Estate with one goal: give every seller the same level of strategy and attention you would expect from a top-producing boutique firm. He has guided hundreds of homeowners through everything from straightforward listings to complex estate sales, divorces, and probate transactions.

Beyond his own listings, Parm has reviewed and audited over 500 real estate files throughout his career, giving him an unusually deep understanding of where deals go wrong, what red flags look like in contracts and disclosures, and how to protect sellers before problems arise.

When you work with Parm, you get his personal cell, his 20 years of experience, and a broker who is in the transaction from day one to close.

20+Years Experience

500+Files Reviewed

East BaySpecialist

◆ (510) 421-1455 ◆ parmrahi@gmail.com ◆ Follow on Instagram

Michael Brown

Realtor Partner DRE #01361903

Michael has been in real estate for over 30 years. He has worked through every market cycle imaginable: the savings and loan collapse, the dot-com bust, the 2008 financial crisis, the pandemic boom, and the rate shock that followed. That history means he never panics, never overreacts, and always knows what the market is actually telling you versus what the headlines are saying.

His calm, client-first approach means sellers always feel informed, prepared, and confident. He is the agent who answers his phone, follows up on every showing, negotiates without ego, and keeps the transaction moving smoothly from listing day through close.

When you work with Michael, you get 30 years of pattern recognition working in your favor.

30+Years Experience

EveryMarket Cycle

ClientFirst

◆ (415) 794-2968 ◆ darkbrownie@gmail.com

Why Work With Us

50 combined years in East Bay real estate. Two agents who are fully present in every transaction, from first conversation to close.

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Boutique Means You Matter

At a large franchise, you may never meet the broker. At Allure, you work directly with Parm and Michael from your first CMA through close. No hand-offs. No assistants handling your transaction.

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Pricing Precision

We do not guess on price. Every listing starts with a thorough comparative market analysis and a frank conversation about what the market will bear. Overpricing kills deals. We price to sell at the highest defensible number.

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Marketing That Moves Homes

Professional photography, video, 3D tours, targeted digital ads, MLS syndication, and direct outreach to our buyer network. Your home gets seen by the right buyers at the right time.

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Negotiation That Protects You

Getting an offer is step one. Getting the best offer through inspection, appraisal, and contingency removal takes skill. We have navigated hundreds of deals and know every tactic buyers use to chip away at your price.

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Vendor Network Ready to Go

Need a stager, painter, handyman, or contractor before listing? We have trusted vendors at preferred rates, available on short timelines. You do not need to find them yourself.

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20 Years of East Bay Relationships

We know the other agents, the lenders, the title reps, and the inspectors. In a close-knit market, those relationships open doors and create smoother transactions for our sellers.

Our Process

How We Sell Your Home

Selling a home is one of the biggest financial decisions you will ever make. We treat it that way — every step, every call, every detail.

Step 1

We Listen First

Before we talk price or strategy, we want to understand your situation. Are you downsizing? Relocating? Going through a life change? The best plan for your home starts with understanding what matters most to you — your timeline, your concerns, your goals. This is a conversation, not a presentation.

Step 2

We Walk Your Home With Fresh Eyes

We come to you. We walk every room, the yard, the garage — all of it. We are looking at your home the way a buyer will see it for the first time. We will tell you honestly what stands out, what could be costing you money, and what is worth your time and investment before you list. No sugarcoating, but also no unnecessary spending.

Step 3

We Price It to Win, Not to Sit

Pricing is where sellers lose the most money — either by listing too high and chasing the market down, or by not understanding what the data actually says. We pull real comps, read the current demand, and give you a number that attracts serious buyers and holds up through appraisal. We would rather have an honest conversation about price upfront than watch your listing go stale.

Step 4

We Make Your Home Impossible to Scroll Past

Most buyers start online. If your photos do not stop them mid-scroll, they move on. We use professional photography, video, and staging to make sure your home looks its absolute best before a single buyer walks through the door. First impressions happen before the showing — we make sure yours counts.

Step 5

We Stay in Your Corner Through Every Offer

When offers come in, we sit down with you and go through every detail in plain language — not just the price, but the terms, the contingencies, the buyer's financing, and the real risks. We have seen deals fall apart at the finish line over things sellers never knew to watch for. Our job is to make sure you never get blindsided and always feel confident in your decision.

We See It Through to the End

We do not disappear once you accept an offer. Escrow has a lot of moving parts and things come up — inspection negotiations, appraisal gaps, lender delays. We stay on top of every deadline and communicate with you along the way so you always know where things stand. When you get to the closing table, there should be no surprises. That is what we work toward from day one.

Let's Talk About Your Home

Every Home Is Different

The calculator on this page gives you a solid starting point. But your home has details no algorithm can account for — the upgrades you made, the condition of the roof, the neighbor who sold too low last month, the buyer demand sitting in our network right now.

A consultation gives us the full picture. We walk your home, pull the real comps, and give you an honest number — what it is worth today, what it could be worth with the right prep, and exactly what your net proceeds would look like.

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An accurate price range for your home Based on real comps, your home's condition, and current buyer demand in your area.

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A personalized net proceeds estimate Not a generic estimate. Your actual mortgage, your market, your costs.

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A prep plan that protects your sale price We tell you exactly what to fix, what to skip, and what staging can add to your bottom line.

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No pressure, no obligation This is a conversation, not a sales pitch. You leave with answers whether you list with us or not.

Have questions first? Call or text Parm directly at (510) 421-1455 or reach Michael at (415) 794-2968.