Lately, we have been seeing houses go off the market because the seller accepted an offer but the house goes back on the market a short time later. It happens and it isn’t always about the house. Sometimes the buyers change their minds and we are seeing more of that these days.
Homebuyers compete for houses and have to make decisions quickly because houses do not stay on the market long. It is easy to get swept up in the process and sometimes the drama. Once buyers have a chance to think about it or look the property over again they regret making that over the asking price offer.
The house ultimately ends up back on the market and sometimes it will go on and off more than once before the offer sticks.
Sometimes offers do fall through because of the house and sometimes they fall through because of the buyer and sometimes it is a combination of the two. Do not reject a house because it had an offer on it that fell through. At least give it a look.
This is the time of year when real estate companies work extra hard at recruiting agents. Most real estate agents are independent contractors and the real estate company with the most agents has the most home sales.
Did I say, independent contractor? Yes, I did. That means agents pay their own health insurance and usually pay for signs, office space and lockboxes too. You are going to believe this but in most cases, agents need to find their own business too. You might be wondering why real estate agents join real estate companies. It is because all licensed real estate agents have to work under a licensed real estate broker and that is what all real estate companies provide.
I have been watching one company that is growing like crazy but when I do the math I can see that their agents average about 4 sales a year.
Several of the largest real estate companies in the area are franchises or subsidiaries of huge corporations. Honestly, I am not a fan of huge corporations these days. I would rather be loyal to my clients and agents than to shareholders or a franchiser.
I once made the analogy that to some real estate companies the agents are like backyard chickens. More chickens mean more eggs and they can be housed in a small area. If they stop laying eggs the owner can just get rid of them.
The failure rate among real estate agents is sky-high. Failure is caused by lack of pay because agents do not get paid until there is a successful closing. Some struggle for years before the give up.
The recruiting emails I get tend to emphasize what kind of technology I would have access to if I joined a big company and often along with paying for just about everything there is a technology fee too.
If you are interested in becoming a real estate agent the process is fairly simple. Take 90 hours of pre-licensing education, pass a test, find a broker, pay a fee and get your license.
Both my home and my office are in Federal Opportunity zones. What is an Opportunity zone?
From the IRS website:
“Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in distressed communities throughout the country and U.S. possessions by providing tax benefits to investors who invest eligible capital into these communities. Taxpayers may defer tax on eligible capital gains by making an appropriate investment in a Qualified Opportunity Fund and meeting other requirements.”
My home in the West 7th neighborhood and my office in Lowertown are both in opportunity zones. The median income in downtown St. Paul is quite low at least according to the data I can find which is hard to imagine considering the number of luxury condos and apartments in the neighborhood and the difficulties people are having finding affordable housing in the neighborhood.
My neighborhood, West 7th, has become somewhat gentrified. There has been a lot of investment. Property values and taxes have gone way up making it less affordable every year, yet the neighborhood is considered distressed and is now in an opportunity zone.
The Dayton’s Bluff neighborhood isn’t in an opportunity zone. The median income level in the Dayton’s buff neighborhood is 9% less than the median income level in the West 7th neighborhood. Median home sale prices for 2019 are 175K for Dayton’s Bluff a 211K for the homes in the distressed West 7th neighborhood in the opportunity zone.
Here is a map with Opportunity zones in and around St. Paul. For more information go to irs.gov and type “opportunity zone” in the search window. Also, see the St. Paul opportunity zone web site. Over a fifth of St. Paul is in an opportunity zone which seems fair considering the 20% poverty rate.
If there are any advantages in owning or buying a home in an opportunity zone I don’t know what they are but when I find out I will share. When we were young we choose the neighborhood because we could afford to live in it.
If you plan on selling your home in the winter or in the early spring before the snow melts it is a good idea to take some exterior pictures now and when the leaves turn. Get some pictures of gardens and patios too.
It is Friday and Fridays are for fun. We went up to Duluth right after Labor day and enjoyed the lake and some great weather. One morning there was a spectacular sunrise. All I had to do is show up with a camera. The birds and the boats came along at just the right time. Other than re-sizing the pictures I took didn’t even require processing.
Sunrise over lake superiorSunrise over lake superior
The sunrise seemed to last forever and just kept getting better as it went from dark purples and reds to bright yellows. It has been many years since I have seen such a spectacular sunrise. Is there anything more fun than a sunrise over Lake Superior?
All I had to do is show up with a camera mother nature took care of the rest. I am looking forward to going back to catch some fall color around the lake and maybe another sunrise.
and it isn’t always about the house. Sometimes the buyers change their minds and we are seeing more of that these days.
