A reminder that commissions are and have always been negotiable

coinsYes, it is true real estate commissions are negotiable. They always have been.

Agents are independent contractors who set their own rates. Some agents will not negotiate. Agents are not required to negotiate.

There is no “going rate” but I’ll admit I have benefited from the myth. For many years I have charged less than what people believe to be the “going” rate.

Real estate agents are selling experience yet new agents often charge the same rate an experienced agent charges. Personally I wouldn’t pay it but people do.

There are many real estate agents to choose from. In fact, there are more agents than there are houses to sell. If one agent charges too much and won’t come down in price find an agent who will.

Real estate agents are salespeople taught how to sell themselves and negotiate fees and commissions. Real estate agents do not get paid until after a sale closes and most work on a 100% commission basis. There are no paid vacations and there is no group health insurance.

Some agents show this chart that shows how much of the commission they get to keep after fees and splits with their broker. To that I say who cares. That is the agents problem.

The good news is that people can buy and sell houses without the help of a real estate agent. It can work out very well especially considering that home buyers and sellers often do not know what it is they do not know and won’t know if they ended up spending more or getting less because they did all on their own.

Real estate commissions and fees are spelled out in the contracts home buyers and sellers sign.  It is a good idea to read the contract before signing it. We can not list a house or work with a buyer without having a signed contract.

It is true that real estate agents can make a lot of money but most do not but don’t feel sorry for those who don’t make a lot of money.

Future housing

I wouldn’t mind living here. This is vacant retail space in downtown St. Paul. There are no current plans to covert the spaces in the picture to housing but we need more housing and the space has been vacant for a few years. Workers have returned to downtown but there are far fewer of them and few businesses too.

The spaces in the picture could be converted into lofts, taking advantage of the sunny southern exposure.

Vacant retail and office space downtown St. Paul

Spring 2024

Today just the first day of spring. To be honest it doesn’t seem like we had a winter this year. The tulips and crocus are all early as are the buds on the trees. I have enjoyed a few bike rides already too and it is a good thing because there is some snow on the way. Expect snow on Thursday and then again on Sunday.

It is too early for yard work but it isn’t too early to transplant the rhubarb that I have been meaning to transplant.

I really do love flowers and plants too. I have been planning my garden in my head for weeks.

 

 

Will housing prices go down?

There are only two things that could happen that will bring housing prices down:

Lower demand

Higher supply

Tax credits or rebates will not bring housing prices down and neither will lower Realtor commissions. Housing prices keep rising because the demand is high and the supply is low.

We are seeing some relief in multifamily housing due to all the recent new construction of apartment buildings. The supply is higher which means rents are not going up as much.

During the great recession and the housing market crash builders stopped building new houses.  The population continued to grow and that drove up demand. There is a lot more new construction now than there was a few years ago. In general there isn’t enough of that middle and lower income housing.

Housing costs contribute to inflation. When inflation rises the federal reserve raises rates which in turn causes mortgage interest rates to rise which makes housing more expensive and that rising cost contributes to inflation. It is a cycle that we don’t seem to be able to get out of.

There is a lot of finger pointing but so far that hasn’t made housing more affordable. The laws of supply and demand can not be ignored.

Housing prices generally do not go down but if they stopped going up that would help the economy and home buyers too.

Everyone is a little drunk

It is Friday and Fridays are for fun. This coming Sunday is St. Patricks day which means this year it is a three day event starting today. The parade will be tomorrow March 16th starting at noon  and will begin at Rice Park, travel down 5th St. E, and end at Mears Park. For those who are not from around here Rice Park is in downtown St. Paul. It will be sunny and in the low 40’s for parade time which is not warm but not too cold either.

2018 St. Patricks Day parade
2018 Saint Patricks Day parade- Kid friendly

Celebrate the luck of the Irish responsibly and get a free ride on Metro Transit on Saturday, March 16, 2024, from 6 p.m. to end of service on all routes–buses and light rail. No fare, no coupons; simply hop on and take a seat for free.

dogs in parade
Pet friendly

I am never even the smallest amount Irish but I do enjoy photographing parades.

Happy Saint Patrick’s Day!

Throwback to March weather

March can be a brutal month weather wise in Minnesota. Sometimes we have spring like weather followed by second, third and even fourth winter. We could still have a blizzard and a cold snap but as of now there isn’t any snow in the forecast and the coldest temperature predicted is 24 degrees.

In case anyone has forgotten what winter looks like in Minnesota in March, here is a photos I tool on March 10. 2019.

Snow - Alexander Ramsey House
Alexander Ramsey House St. Paul, MN