Blooming tree season lasts about a week in these parts, which is good news for people with spring allergies. Pay attention and don’t miss Blooming Tree Week. I may even get out and take some pictures. Happy Monday!
Pending home sales rose in March 2025
I expect to see some improvements in year-over-year numbers. Last year was not the best year for home sales in the US.
Pending Home Sales Jumped 6.1% in March
Key Highlights
- Pending home sales in March leapt 6.1%.
- Compared to one month ago, pending home sales declined in the Northeast, while the Midwest, West, and especially the South – underwent increases.
- Year-over-year, contract signings rose in the Midwest. However, the Northeast, South, and West declined, with the biggest drop in the Northeast.
The numbers from NAR are always interesting to me, partly because they show that real estate is local and varies by region.
Real estate commissions are negotiable
I shouldn’t be surprised, but so far, I have not noticed any negotiation on commissions paid to a buyer’s agent. Commissions for agents who assist the home buyer used to be listed in the MLS (multiple listing service) for every home for sale.
That all ended last year after the National Association of Realtors lost a lawsuit. Sellers often want to negotiate for a lower commission, but when a buyer makes an offer and asks the seller to pay a buyer’s agent commission, sellers are paying it with no negotiation.
As a small company, I don’t have a ton of data for this, and real estate brokers are not allowed to discuss how much they charge or are paid amongst themselves. All I can say is that the commissions that are being paid out to buyers’ agents are pretty consistent and appear to be the same as what they were when they were listed in the MLS.
Redfin reported that the average percentage of commission paid to buyer’s agents has gradually fallen since the NAR settlement was announced, although the decrease “is small and the dollar amount paid to buyer’s agents has held steady.”
It could be that because sellers often pay the buyer’s agent’s commission, buyers don’t feel the need to negotiate. I am not sure why sellers negotiate with their agent for a lower commission and then turn around and pay the buyer’s agent with no negotiation.
There is a point to this post, and that is that real estate commissions are always negotiable, and so are any fees charged by your real estate agent. There are many excellent real estate agents in the area looking for work every day, and it is always alright to negotiate and to pay less.
If you are a home seller, your agent should not be advertising the fact that you will pay the buyer’s agent commission. There is a better way.
Realtors, love letter and fair housing
Real estate agents can not legally help their clients violate fair housing laws. A fair housing violation is where an offer is accepted or rejected based on race, color, religion, sex, familial status, disability, or national origin of the persons making an offer.
Sellers are having it put in writing that they do not want to receive “love letters” from home buyers. Homeowners do not have to accept the letters, and it might be best if they don’t.
We have had a few listings that have gotten multiple offers. Some of the buyers making an offer send ‘love letters” along with the offer. The letters say how much the buyers loved the house and how they plan to fill it with children. Buyers include pictures of themselves and of their children.
They also include information about the buyer’s marital and familial status. Sometimes the letter will mention a local church or parish school that the family plans to attend. Sometimes the letters even suggest that God wants them to buy the house.
There isn’t any rule against buyers writing letters to the seller, but I always advise sellers to ignore the letter until after they have chosen an offer or to consult their attorney.
If the seller accepts the offer because they like the buyers the best, and it wasn’t the best offer, that could lead to a fair housing complaint. Sometimes the offers are similar, but one offer has a letter with it that includes pictures.
It is important to look at selling a home as a business transaction and to look at the terms in the offers and what kind of financing the buyers are using.
It is also possible to write a letter that is about the house and maybe about interests in common with the owners without including demographic information. Sometimes buyers will want to let the seller know that they will take good care of the garden or that they will also use the shop to work on old cars. It is not considered a fair housing violation to sell a house to someone who likes to garden.
We have seen instances where love letters have backfired, and the sellers rejected the offer because of what the letter said.
A little cleaning can mean more $$$$
I’ll admit my standards are high when it comes to cleaning and I am not a fan of clutter. I recently saw a home that the owners had ready to sell. The carpet was filthy, and the windows were dirty. The walls had not been cleaned or painted in years.
In a situation like that, the sellers will come out ahead if they have the house professionally cleaned, including the carpeting and windows. The walls can be cleaned or painted. The return on the dollar for cleaning is high. It is a great investment and should not be overlooked.
If the home has hardwood floors, it makes sense to remove worn carpeting. If the window treatments are dirty or damaged and can not be cleaned or repaired, they should be removed.
Any burned-out or missing light bulbs should be replaced. Light is important; more is better than less.
Trust me, your home will sell faster and for more money if it is clean.
Disappearing real estate offices
Yesterday, I noticed two vacant spaces where real estate offices used to be. The National Association of Realtors stopped publishing numbers, so we don’t know how many Realtors there are. We don’t know how many real estate licensees there are either. There isn’t a shortage, I know that for sure. are more Realtors in the area than there are homes for sale. Home sales have been in a slump for a couple of years due to high interest rates. The houses sell fast enough, but many homeowners have chosen to stay put, which has resulted in fewer homes for sale.
The picture is of the Keller Williams office on West 7th Street. It was there for about five years and was one of many Keller Williams franchisees in the metro area, but the only one in St. Paul. There was also a real estate office across the street, but that one only lasted a couple of years. It could just be that West 7th Street near downtown isn’t a good place for a real estate office.
One thing that really surprised me when I started in real estate was how much real estate agents like to work in offices. As independent contractors, I would have thought they would be more independent.
There is a Coldwell Banker Burnet office on Grand Avenue with a for-sale sign in front of it.