What you don’t know about your real estate agent

Small Blue House with flower boxesPeople choose their real estate agents for all sorts of reasons. Often because the agent is “nice”.  Sometimes that “nice” agent is inexperienced and sometimes they can cost you money or even the home you want to purchase.

Last year a well-meaning but very inexperienced agent encouraged her client to ask for all sorts of minor repairs. She waited until almost the end of the inspection period. The seller was blindsided and somewhat angry. He did not make all of the repairs but he did make some of them. Later when I talked to the buyer I found out that none of the repairs were his idea but his agent felt he should ask for something.

Sometimes we get purchase agreements from new agents that we have to talk them through re-writing so that they are written correctly. Once I got an offer from a person with an expired real estate license. I had a hard time finding his broker who had no idea that the agent was out representing buyers without a license.

Another agent gave her client a bunch of documents that he thought were all of the condo documents required by the state. Most of the required documents were missing. I sent the agent a link with a bunch of information and made sure that the buyer got all of the documents.

There was this agent in a Facebook group for appraisers asking for some specific information regarding St. Paul Truth in Housing inspections and requirements. An appraiser isn’t an expert on such things and the agent was referred to the city of St. Paul website and told to ask her broker if she needs help.

Recently a new agent carefully explained to me how I should handle offers on one of our listings. Why? Was that necessary?

Most of us learn early on that no matter how we would like things to go they don’t always work out that way. We can never predict what our clients will do or what other agents will do. We learn to adapt and we learn flexibility.

There are more real estate agents than ever before and fewer home sales. It is more likely than ever before that the agent you choose has never sold a house.

At the very least agents should be asked if they have ever sold a house. There is a surplus of experienced agents who are looking for work to choose from.

It is easy to get a real estate license. All agents have them and learn on the job. New agents don’t have a clue what it is that they don’t know. Home buyers are in the same boat and don’t mind working with new agents as long as the agents are “nice”.

You are being watched

The sign outside my office

When touring homes with buyers I always assume that someone is watching or listening or both. Houses have doorbells that can see and hear and some have smart speakers on the kitchen counter. There may be cameras throughout the house.

Sometimes homeowners will hold it against the buyer who comments on how ugly the couch is.

Sellers can get pretty worked up about what they see and hear.

If you are touring houses it is best to hold your comments until you get far enough away from the house so that the doorbell camera can’t hear you. On the other hand, if you have something to say that you want the sellers to hear and you believe they can hear you go for it!

 

2024 has arrived

Happy New Year
Happy New Year

Happy New Year to all. No, I didn’t stay awake and ring the new year in. Sleep is too precious, and I fight for every Z I can get.

With that said I’ll make a few predictions for 2024.

  1. Mortgage interest rates will go down.
  2. Mortgage interest rates will be too high.
  3. Home prices will continue to rise.
  4. There will be fewer home sales than there were in 2023. (This prediction is for the Twin Cities Metro area only)
  5. There will be more lawsuits against the National Association of Realtors and they will lose most if not all of them.
  6. We will see a new organization emerge from the ashes that the National Association of Realtors will be by November 2024.
  7. The new organization that replaces NAR will be run by men but they will be younger and more diverse.

If you have a house to sell in 2024 you can sell it. If you would like to buy a house in 2024 there will be fewer to choose from and they will be expensive. Please take advantage of downpayment assistance programs. 

If you have not purchased a home in the last three years ask your lender about first-time home buyer programs. If the lender can not help you with that choose another.

Also, home buyers should get their paperwork in order and file a tax return for 2023 early in the year.

No the house isn’t perfect

housesI recently read an article written by a first-time homebuyer. He writes about all of the unexpected repairs his new home needs.

Every buyer should get a complete home inspection. The seller does not have to make repairs but buyers can always ask. The whole point of inspection is knowing what repairs might be needed before committing to buy the house.

Homeowners do not always know what is broken or what is going to break in the next six months. Even with an inspection something unexpected can and probably will happen.

Some people would rather call the landlord than have to call for repairs and pay for them. Homeownership isn’t for everyone but if it is for you make your offer contingent on a complete home inspection and hire an experienced home inspector. Don’t forget the radon inspection and consider having a sewer line scope.

Keep in mind that repairs that are not needed today may be needed tomorrow and budget accordingly.

A poem for people who bought houses in 2023

wreath
Merry Christmas and Happy Holidays

AI is all the rage this year. Apparently, it is going to make real estate agents fabulously wealthy just like Facebook and Twitter did. I asked both BARD and ChatGPT to write a Christmas poem about home buyers. The poem that follows is the one I thought was the best:

No more carols sung in rented halls,
No more dreams confined by thin, shared walls.
This Christmastide, a joy most bright,
Your own brick haven bathed in winter’s light.

The stress of offers, papers piled high,
Fades in the glow of hearthfire’s sigh.
Keys jingle soft, a whispered chime,
Your first Yule log, burning bold and prime.

Stars peek through gables, frosted white,
As laughter dances through the halls at night.
Stocking stockings by the cozy fire,
Whispers of wishes rising ever higher.

Cinnamon scents and sugared plums,
Warmth seeping through every room.
Children’s eyes wide with Christmas cheer,
Building worlds on floors, year after year.

No landlord’s grumbles, no paint chipped thin,
This nest belongs to you, within, within.
From porch swing swaying in the frosted air,
To whispered secrets on the bedroom stair.

So raise a glass, let carols sound,
Cheers to your haven, newly found.
May every joy this season bring,
Fill your home with endless winter’s spring.

For this Christmas, wrapped in frosted bliss,
You’ve gifted yourself happiness.

Merry Christmas, new homeowners bold,
May your stories, like snowflakes, forever unfold.

It is kind of cute but there is no mention of the leaky pipe on Christmas eve. or the possibility that the furnace will go out on New Year’s day but I guess most home buyers find out about that soon enough.

Maybe next year . . .

Christmas wreath
Holiday decorations

I have been reading the predictions for the housing market for 2024. People who work in the real estate industry are predicting another marvelous year.  Those predictions are good for the moral of real estate agents everywhere.

Most experts are predicting that mortgage interest rates will go down which will make homes more affordable for many but they are still expensive and too expensive for some. Those who can buy are going to have some challenges because home owners who are locked into mortgages are not going to jump at the chance to sell and end up with a larger mortgage.

In other words next year probably isn’t going to be a great year for most home buyers. Will people buy houses? Absolutely.

For those who managed to bag a house this year before the holidays I have a poem that I wrote thith help from AI:

No more carols sung in rented halls,
No more dreams confined by thin, shared walls.
This Christmastide, a joy most bright,
Your own brick haven bathed in winter’s light.

The stress of offers, papers piled high,
Fades in the glow of hearthfire’s sigh.
Keys jingle soft, a whispered chime,
Your first Yule log, burning bold and prime.

Stars peek through gables, frosted white,
As laughter dances through the halls at night.
Stocking stockings by the cozy fire,
Whispers of wishes rising ever higher.

Cinnamon scents and sugared plums,
Warmth seeping through every room.
Children’s eyes wide with Christmas cheer,
Building worlds on floors, year after year.

No landlord’s grumbles, no paint chipped thin,
This nest belongs to you, within, within.
From porch swing swaying in the frosted air,
To whispered secrets on the bedroom stair.

So raise a glass, let carols sound,
Cheers to your haven, newly found.
May every joy this season bring,
Fill your home with endless winter’s spring.

For this Christmas, wrapped in frosted bliss,
You’ve gifted yourself happiness.

Merry Christmas, new homeowners bold,
May your stories, like snowflakes, forever unfold.

If homeownership is a goal for 2024 now is the time to get started. Talk to a lender today.