From Fortune Magazine:

Emma Hernan, the real estate investor turned luxury real estate agent, has made a fortune from investing in the stock market and startups before diving into the world of luxury real estate. She’s battled challenges like high mortgage rates and the newly introduced Los Angeles mansion tax. This year, she’s been seeing buyers outside of the “mansion tax territory” get better deals on properties—especially as mortgage rates have dropped. Despite all this, Hernan expects 2024 to be her best year yet—she plans to purchase more investment properties. That said, she’s mindful that the real estate industry is facing major changes to their pay structure going into 2024. On a more positive note, Hernan says she’s been seeing buyers outside of the “mansion tax territory” get better deals on properties this year, she says. Even with some big wins in 2023, being a luxury real estate agent to the world’s rich and famous isn’t as effortless and opulent as it may seem. High mortgage rates and the introduction of the mansion tax, have affected the real estate in LA. Introduced as Measure ULA, the transfer tax took effect in Los Angeles on April 1 with the intention of the city using the funds to funnel more money into affordable housing and homelessness-prevention efforts at a time when more and more people are living without shelter. An estimated 75,000 people were homeless in LA between June 2022 and June 2023, according to the Los Angeles Homeless Services Authority, a 9% increase from the same period a year prior. The mansion tax in LA applies to property sales of at least $5 million. Properties over $5 million incur an additional 4% tax, while properties costing more than $10 million have an extra 5.5% tax—with the tax typically being paid by the seller. Moreover, luxury real estate agent Emma Hernan plans to take her own advice next year, with plans to purchase more investment properties. Now, Hernan warns her clients about the mansion tax before they prepare to sell. The real estate industry was rocked in late October when a Missouri jury found that the National Association of Realtors had conspired to artificially inflate the home-sale commissions paid to real estate agents. The $1.8 billion verdict could change real estate commissions as we know them. The outcome could threaten the livelihood of realtors nationwide and, some argue, and make it more difficult for homebuyers trying to purchase a home.



Read more: The mansion tax was a ‘nightmare’ for luxury real estate in Los Angeles this year, ‘Selling Sunset’ star says. But 2024 could be a ‘sweet spot’ for buyers