A new rule makes buying a home more complicated — but it could also save you a lot of money
- This post originally appeared in the Insider Today newsletter.
Welcome back! Dan's still on PTO, so you're stuck with me for the day. If that's worsened your case of the Monday blues, daydreaming about moving to Italy to run an olive farm, like this couple did, might help.
In today's big story, we're talking about how house hunting is changing. A lot.
What's on deck:
- Markets: Investors' frustration over hedge-fund fees is reaching a fever pitch.
- Tech: Venture capitalists share their summer reading lists.
- Business: WNBA fans are facing a dilemma.
But first, change is a good thing. Right?
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The big story
Real estate gets real
As of Saturday, the days of casual house hunting are no more.
Before this weekend, if you were on the market for a new house, a Realtor friend might have been willing to show you a few homes; no stress, no strings attached.
Things are going to look a lot different now, writes Business Insider's James Rodriguez.
Before you begin working with a Realtor, they'll probably ask you to sign a buyer-representation agreement that will outline the terms of their service and how much they expect to be paid.
These sorts of contracts used to be optional, but due to rule changes by the National Association of Realtors, the agreements are now mandatory in almost all cases.
The new rule is part of a sweeping legal settlement, James writes, and promises to fundamentally change the housing market.
Buyers could find themselves legally bound to a clumsy agent. Agents could struggle to get potential clients to work with them. One thing's certain: The age of casual house hunting is over.
The new rule makes home buying more complicated. But there's good news: It could also save you a lot of money.
Searching for and buying a home has never been an altogether pleasant experience. The path to homeownership has long been paved with confusing rules, challenging agents, and high expenses.
The new rule might feel like it would add to the complication, but it does have some upsides, James writes. Buyers may be more likely to vet their agents before choosing one, and many could negotiate with their agent to get a better deal.
Plus, buyers who don't like the thought of paying their agent out of pocket will likely be able to find workarounds.
So while casual house hunting may be a thing of the past, if a homebuyer puts in a little bit of diligence, it may end up being a big win in the long run.
News brief
Top headlines
- Wall Street is fixated on Powell's speech in Jackson Hole this week after his 'Volcker Moment' there 2 years ago
- Democratic convention could extend Harris' honeymoon or kill the vibe
- Saudi Arabia is on a high-stakes mission to buy the world.
- Trump is trying to get his 2016 magic back.
- China is rapidly building an unusual assault ship with an apparent catapult system for launching aircraft, but its purpose is still a mystery.
- The stock market's dream scenario has been revived.
3 things in markets
- The conversation around hedge-fund fees is reaching a fever pitch. Blame the talent. Hedge-fund investors are once again hyperfocused on the industry's most contentious topic: fees. This year was the first time the average fee rose in a decade. It's all thanks to the ongoing talent war for portfolio managers, and is pushing the industry to its limit.
- Barbells aren't just for the gym. They're also a helpful investing strategy, particularly in the current market as stocks continue to fluctuate. Three experts share how they're using the strategy to balance risk in their stock portfolios.
- The rise of legal sports betting comes with a cost. A new working study found that people are diverting stock investments into legal gambling. The researchers say household investments are reduced by roughly $2 for every dollar wagered — and it's had a disproportionately negative effect on lower-income households.
3 things in tech
- Spotify makes its case to advertisers. Thanks to ad sales and subscriber growth, the music-streaming service recently reported its most profitable quarter ever. But its ad sales growth has slowed. A leaked Spotify deck shows how it's pitching itself to advertisers.
- Top VCs share their summer reading lists. BI asked European venture capitalists to dish on the books keeping them busy this summer. From a Chinese sci-fi novel to Booker T. Washington's autobiography, here are the 16 books they picked.
- Apple's tabletop robot device could be a risky bet. The company is developing a Siri-controlled robot that would include a large display and robotic arm, Bloomberg reported. However, some analysts are skeptical about how successful the project will be, comparing it to Meta's discontinued Portal.
3 things in business
- Logan Paul's Prime Hydration is involved in a slew of lawsuits. The controversial YouTuber's energy-drink company was one of the hottest beverages on the market in 2022. Now, Prime is the defendant in eight lawsuits, ranging from allegations of breach of contract to class-action suits accusing the company of mislabeling the amount of caffeine in the drink.
- WNBA fans are in a pickle. Supercharged by the success of players like Caitlin Clark and Angel Reese, the league is getting hotter. Fans are happy it's getting the attention it deserves, but soaring ticket prices and a changing culture have some worried they'll get left behind.
- Who can claim the middle class? VP candidates Tim Walz and J.D. Vance are each trying to win over middle-class voters. The problem? The American middle class doesn't really exist. While tons of people earn somewhere in the middle of the income band, there isn't an official economic idea of what it means to be middle class.
In other news
- Ukraine's invasion of Russia is showing how good it is at hitting Putin's weak spots.
- Why prediction markets are more accurate than polls at predicting election results.
- Job seekers are getting increasingly bold by 'cheating' in interviews — and AI is making it worse.
- Disney is betting big on cruises.
- As interest rates fall, long-term CD rates won't stay above 4% APY for long. What should you do with your cash?
What's happening today
- The 2024 Democratic National Convention starts today.
The Insider Today team: Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, fellow, in New York.