For Home buyers

Most home buyers are smarter than smart home technology

Posted on by Teresa Boardman

Many of us use “smart home” technology. For example, I have a thermostat that is on the internet and can be controlled with my phone. Same with thescreen print from Kasa app washer and dryer. I am interested in getting some smart locks so that I can lock the backdoor from anywhere or maybe just check to see if it is locked.

Some of our light bulbs are smart bulbs that I have on timers and I have some smart electrical outlets that are on schedules. One of them controls some lights that come on at sunset.

There is a camera in my office that is also on the network. I can control it with my phone and I can see what is going on in my office from anywhere. Several of my neighbors have “Ring” doorbells so they can watch the packages being stolen from their front porch from anywhere or just replay it when after they notice the packages missing.

In the standard Minnesota purchase agreement used by Realtors, it says that the homeowner has to give the home buyer the passwords and control of smart home technology.

I recently read an article about how a homeowner in another state could not control the devices in his home. I think it was one of those stories based on an idea a reporter had and he found someone to go along with it. I can see so many workarounds including removing the offending device.

For one thing, as soon as these devices are off of wifi they can not be controlled. Once they are on new wifi the owner should be able to reprogram or find someone who can.

Most homeowners do not leave active Wifi behind.  Thermostats can usually be controlled at the thermostat. They can also be reset completely. Once they are offline they can not be remotely controlled.

Light bulbs are not that smart. It is probably best for the homeowner to replace them with dumb bulbs and take the smart bulbs when they leave. It is the same with smart outlets. Once they are unplugged they are stupid. I have two different types and they all have reset buttons.

If for some reason a homeowner comes in possession of smart home devices that are out of control there is always help online through the manufacturer. They know even more than your Facebook friends or the not-always-friendly folks on Nextdoor.  There are also numerous free guides on the internet that are actually pretty good.

It is nice though to have passwords so that devices do not need to be completely reset. Having the code to the garage door opener is nice too but they can also be reset.

If I bought a home that had smart devices I would ask for the passwords as a condition of closing. I would also reset those passwords as soon as I took possession of the house. I would remove any device that I could not control or reset. Problem solved.

Interest rates in the news, February 2023

Posted on by Teresa Boardman

Interest rates are in the news again because they went up and so did mortgage interest rates. I think the sweet spot that makes purchasing a home doable is about a percentage point lower than what we are seeing today.

I can’t see myself borrowing money to buy a car, and I definitely wouldn’t use one of my credit cards for anything that I could not pay for in the next 30 days or so. As for housing, I suppose if I could buy a house for less than what I was paying for rent I would buy one. If not I would wait until rates get at or below 6% but 5.5% would be much better.

If you look at the chart below, it shows that rates were recently higher. They were over 7% last November. When the rates got closer to 6% there was some cheering but if you ask me, which you didn’t they were too high at 6% considering the price of housing and everything else.

Higher interest rates are driving up housing costs when housing is already unaffordable for many.  This might be a good time for consumers to put a hold on any discretionary spending.

mortgage interest rate chart

You found a house on the internet

Posted on by Teresa Boardman

porchFor the last 25 years or so people have been able to search the internet and find houses that are for sale. There are people who believe that because of this real estate agents are no longer needed.

Finding a house that is for sale is just one step in the home-buying process. It is the easiest step because in most cases all a buyer has to do is search the internet to find a home for sale.

Most of the houses were put on the internet by real estate agents.

When I want to help a buyer find a house I search the MLS (multiple listing service) through the internet.

In most cases, after a potential home buyer finds a house on the internet they want to see it in person. If they decide they want to buy it they need to figure out how much to offer. There also need to decide on the rest of the terms that will go into their offer.

The offer needs to be written. We call that a purchase agreement. The agreement could be drawn up on almost any piece of paper but usually, that won’t be enough space for all of the details.

People who have purchased real estate in the past have an easier time of it but the laws and rules changed often. No two properties are the same and each homeowner and buyer are unique too. I have helped hundreds of people buy and sell real estate and it is a little different each time. That is what keeps it all interesting.

Real estate agents also help people get ready so that if they do find that perfect house that they want to buy they can buy it.

Sevice has changed

Posted on by Teresa Boardman
Turret collage
Turrets

The meaning of the word service has changed. It used to be all about helping clients and responding to client or customer needs.

I don’t believe that giving clients a questionnaire prior to meeting with them is a service. They do that before medical appointments so the doctor can set the tone and show how little they care about patients as humans.

I think that asking questions that are tailored to the situation is a much better use of my client’s time. Asking each question once should suffice.

I never ask anyone to download an app onto their phone so that they can work with me. For people who want to work with an app, I can make that happen but it isn’t required.

Customer satisfaction surveys are crap. Many businesses state that they are performing a great service when they ask us to fill out a satisfaction survey. The surveys often miss the point or fail to allow us to highlight our extreme dissatisfaction, or are so ridiculously long that I feel as though people should be paid for their time.

There are aspects of customer service that can be automated, like voice mail and autoresponders for email. They both help small companies like mine. I can not always answer the phone or an email immediately but it doesn’t take me long to get back to the people who contact me.

Sometimes I think that businesses believe that they will appear to be more professional if they use a lot of forms and processes. Often when people call with a question the very first thing they get is a series of questions. The processes create unnecessary friction that makes it harder for people to use a service or buy a product.

Nothing says I don’t care about you or have any empathy for your situation like a generic questionnaire. I think that is why doctors’ offices use them so much.

Customer service isn’t about putting people on hold and letting them know that their call may be recorded for quality purposes.

I don’t have any generic clients. Each one is unique and so is each property that I represent or sell.  You can call or write and I’ll do my best to provide professional help with your real estate needs.

Down payment assistance & the homeownership gap

Posted on by Teresa Boardman

I just read up on a proposal for a downpayment assistance program that is supposed to help close the homeownership gap. I’ll give an update once the program is approved.

queen anne house
Queen Anne

Minnesota’s black homeownership rate peaked in the 1950s at almost 47% and is currently 25.3% as compared with whites who have a homeownership rate of 77%. The homeownership gap in Minnesota is among the highest in the country.

Over the years I have worked with a few buyers who were eligible for and who used downpayment assistance programs to buy a house. Almost all of those buyers were white and a few of them were not first-time homebuyers but they were people who had previously owned homes.

Downpayment assistance is a great resource for people who want to buy a house but who do not have the resources to make the downpayment which is why I have the link to downpayment resources in the right sidebar on this site.  I always ask first-time homebuyers if they have heard of the programs and I encourage them to explore their options and ask their lender for assistance.

There is proposed legislation in Minnesota for down payment assistance to help “first-generation” home buyers.

The intent is to narrow the racial homeownership gap in Minnesota.

A first-generation home buyer is defined as:

• A buyer who hasn’t owned a home in the last three years, and

• A buyer whose parent or legal guardian does not or did not at the time of their death own a home.

Real estate agents do not approve or disapprove home loans. Real estate agents do discourage home sellers from accepting certain types of financing because they believe it to be riskier. I strongly encourage homeowners to talk to familiarize themselves with various loan programs.

Recently the Minneapolis Area Association of Realtors apologized for its role in housing discrimination. The National Association of Realtors also apologized. Realtors were complicit and helped enforce racial-based deed restrictions. We also helped segregate neighborhoods.

1924 COE
Realtor Code of ethics

The high price of waiting for perfection

Posted on by Teresa Boardman

porchI am never going to say that “now” is a good time to buy a home or to sell one. There just isn’t one “now” that is best for everyone. However, over the years I have observed how much it can cost to wait for the perfect time, price and house.

Holding out for that perfect house in the perfect location that is a bargain can mean an extra decade of paying rent, as it rises each year while trying to save for a downpayment and missing out on building equity.

People who bought houses when interest rates were high generally paid less and refinanced later on. There are no guarantees when it comes to buying a house but most people need a place to live and in the long run, people who own real estate are able to build more wealth than those who do not own real estate.

There isn’t ever a perfect time to buy a house or to sell one.