General Real Estate News

July numbers are old news, but they don’t get published until August. It is important to remember that it is usually at least 30 days from the offer to closing. Home sales were down in July month over month nationwide.

National elections are on November 5th 2024. We will elect a new president and depending upon which district you may be voting for a senator or representative too.

In Minnesota, voters can register at the polls but there are better and faster ways to register. Register today.  If you are going away to college or will not be home to vote this November, get your absentee ballot today.

You can check to see if you are registered to vote right now.

If you have recently moved you need to register. You can wait until election day and register at the polls but if you register ahead of time voting will be faster and easier.

There is early voting too starting September 20th and ending November 4th.

I’ll be writing periodic posts about the importance of voting which is voluntary but should be required. Every vote matters.

This year the presidential election lands on November 5th which is also my birthday. It happens that way every 28 years.

I have a feeling there will be much to celebrate.

Every August we get new contract forms for Minnesota real estate. We get to see the forms or parts of them before they become effective but do not have access to them until August 1st. If you are buying a house August 1st isn’t the best day to do it.  There is a higher likelihood that a Realtor will make a mistake when she sees and uses new forms for the first time.

The reason why we do not get the forms ahead of time is because . . . . . ?  It might just be about trust. Maybe someone would use the new forms before August 1st?

This year’s changes include a few new forms. The forms outline who will pay a buyer’s agent.

Our contracts tend to get a little more complex and longer each year. There have been some real improvements, including page numbers. In the old days, buyer’s agents had to put page numbers on purchase agreements, which didn’t always end well.

If you are a home buyer or seller you should take the time to read the contracts.

August 1st is also a day in Minnesota when new laws go into effect.

Enjoy!

 

Starting this August, commissions for buyer’s agents will no longer be posted in the MLS. Up to now most of the time when I have worked with buyers I have been paid by the seller. The payment was listed in the MLS (Multiple Listing Service) and guaranteed.

In fact, for many years we could not list a home in the MLS without including some payment for buyer’s agents. The MLS is a property database that belongs to Realtors and is the source of homes for sale. The data is fed to real estate company websites and large national real estate websites.

Home sellers may continue to pay out commissions to buyers agents or maybe not. Advertising the buyer’s agent commissions in the MLS was a huge incentive for buyer’s agents.

When buyers sign a contract with their agent agreeing to pay that agent X amount they need to make sure they have the funds to pay that agent. Before signing a buyer representation contract know where the money to pay your buyer’s agent will come from.

Look for an alternative to paying a commission based on a percentage of the value of a house. Be prepared to negotiate with your agent. Be open to the idea of paying for individual services up front rather than paying for full service when the purchase closes. There will be more about this in the coming months.

 

On Monday I wrote about the typical home buyer and on Tuesday I wrote about the typical home seller. Today I am writing about the typical Realtor using statistics from the National Association of Realtors.

In advertising and in the media Realtors are often portrayed as men in suites or as young women. Neither is accurate.

Here are some demographics:

• Sixty-four percent of REALTORS® were licensed sales agents, 20 percent held broker licenses, and 18 percent held broker associate licenses.
• The typical REALTOR® is a 60-year-old white female who attended college and is a homeowner.
• 62% of all REALTORS® are female, and the median age of all REALTORS® is 60.
• Real-estate experience of all REALTORS® (median): 11 years
• Median tenure at present firm (all REALTORS®): 6 years
• Most REALTORS® worked 30 hours per week in 2022.
• The median gross income of REALTORS®—income earned from real estate activities—was $56,400 in 2022, an increase from $54,300 in 2021.
• Median number of transaction sides in 2022:
  • Residential sides for all REALTORS®: 12
  • Residential sides for residential specialist broker/broker associates only: 14
  • Residential sides for residential specialists only: 10
  • Residential sides for commercial specialists only: 4
  • Commercial sides for commercial specialists only: 5
• Formal education of REALTORS®:
  • Some college: 30%
  • Bachelor’s degree: 31%
  • Graduate degree and above: 12%
  • Associate degree: 12%
  • Some graduate school: 6%
  • High-school graduate: 8%
• REALTOR® affiliation with firms:
  • Independent contractor: 89%
  • Employee: 4%
  • Other: 7%

When you think of Realtors picture older women who are independent contractors.