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Changes in Real Estate Industry

We all know that change can be good, if not sometimes painful?  What you NEED TO KNOW is that there are proposed changes to the Real Estate Industry – that COULD make a real difference to YOU – as the consumer (buyer or seller).   *** LONGER POST WARNING 😉 ***

I know you think this has already happened with the increased higher interest rates – right?  Yep, that is one change that certainly has impacted everyone.

You also may know that the low inventory and higher purchase prices have continued – and are projected to continue for years – also correct!

However, the little known discussion that has been playing out for a number of years now – with the Department of Justice (DOJ) and National Association of Realtors (NAR) – is something “I” believe will be a BIGGER IMPACT and CHANGE TO THE INDUSTRY than most anyone even realizes.

Now while this may not be decided this year, maybe not even next year – what I see is the tsunami effect of things that is building: low inventory / higher prices; higher interest rates; and THEN if we get way-laid with the change to Realtor Compensation as proposed – the CONSUMER LOOSES!  How?  You may be asking…

Let’s say that for the 115+years now that NAR and Real Estate has been established, there is a way for a SELLER to list their home for sale, having professional representation by their Realtor for their best interests AND in that same agreement compensation is agreed to and offered for a BUYER’s Relator to also be paid.  This works well, is openly noted and shared in the listing services of our MLS (which is solely structured around that compensation agreement BTW).  Yes, Sellers can decide to sell on their own and NOT USE a REALTOR; just as Buyers can decide to make an offer and NOT USE a REALTOR – BUT, if either party uses a Realtor under the current agreements – each party is PROTECTED AND REPRESENTED in a FIDUCIARY ROLE that is bound by ethics and rules. (If I am working for the Seller – then I HAVE TO PROTECT THEIR INTEREST; If I am working for the Buyer – then I HAVE TO PROTECT THEIR INTEREST) you get the point??

Why does this work??  Because the offer of compensation is addressed with the LISTING with the SELLER and both sides of the transaction are ASSURED OF REPRESENATION.  And each Realtor is getting PAID at the CLOSING of the DEAL from the Seller Proceeds.

If a Seller does a For Sale By Owner – there are NO LEVELS OF PROFESSIONAL REPRESENTATION, NO protocols of disclosures or process, and it really becomes a BUYER BEWARE (Caveat Emptor) situation.

If a Buyer decides to purchase without a Realtor Representation, well they can certainly choose to navigate the purchase, finance, inspection, appraisal and closing process ALL ON THEIR OWN – however, each of those steps COULD present an issue for those who may not be familiar with or understanding of their “rights”.

Now – back to the PROPOSED CHANGE – for whatever reason – there is a BUG up someone’s crawl that is saying this system (well proven over the 115 years) that is UNFAIR.  The change is to have Sellers Pay for their Realtor Services and the Buyers to Pay for their Realtor Services.  And I know, on the service – everyone THINKS that is an equitable resolution.

HOWEVER, what you don’t realize – while the Seller is likely MAKING MONEY ON THE TRANSACTION AND ABLE TO PAY THEIR REALTOR FEES AT CLOSING – the BUYER is BRINGING MONEY TO THE TABLE TO CLOSE: either in the form of their LOAN (which currently ONLY can cover the mortgage expenses), or their own FUNDS OUT OF POCKET.

I’m going to now give an EXAMPLE of what a Buyer Scenario looks like:  Buyer decides they want to buy house at $100,000 (good luck finding that right now! – but easy numbers help make the point)

Buyer is “pre-approved” with a lender who has indicated the type of loan they qualify for – FHA may be 3.5% down (or $3500 down), plus closing costs and loan origination fees – well, let’s just call this a Total of about $6000 that will be needed for the Buyer to Close the Loan.

The “process” should / could involve an Inspection ($500) BUYER PAYS OUT OF POCKET AT THE TIME; and an Appraisal ($400) BUYER PAYS OUT OF POCKET TO SCHEDULE.  There could be additional inspection costs (termite, well, radon, etc) all of which would ADD TO THE OUT OF POCKET COST – and ALL PAID BEFORE THE CLOSING BY THE BUYER.

To be “safe” and for Buyers to have some understanding of what they need to BUY a house, I use GENERAL NUMBERS LIKE THIS TO PREPARE THEM, and also to gauge their financial ability to make this decision to purchase.  If they have ~10% of the PRICE OF THE HOME as funds available for them to use – THEN this may be a deal for the Buyer.

BUT NOW – the Proposed Change, is stating the BUYER is to PAY FOR THEIR REALTOR SERVICES – which as indicated is NOT ABLE TO BE ROLLED INTO THE LOAN (currently) so will be OUT OF POCKET COST.  If the Buyer then has to come up with an extra $1000, $2000 or $3000 + to pay for their Realtor Services… DO YOU THINK THAT IS AN UNFAIR HARDSHIP??

I believe that this proposed Change is not only UNFAIR to BUYERS, it puts them in jeopardy to decide to NOT USE A REALTOR (saving the money) but loosing out on their RIGHTS AND REPRESENTATION.  I believe this proposed Change is a TERRIBLE SHIFT TO AN INDUSTRY whose sole business has been based on Ethics, Integrity and FIDUCIARY RESPONSIBILITIES FOR OUR CLIENTS.  It is a GAME CHANGER and NOT IN A GOOD WAY.

Why do I go to conferences, pay DUES and work hard for my clients?  Because it is something I take personally, it is a DUTY I feel, and it is an HONOR THAT I SERVE.  Having an industry change such as this come along and “knock out” all the 20+ years of experience of my service is a SLAP IN THE FACE.  DOJ should be asking the consumers if they are REALLY READY to carry the burden of not only having higher prices due to the lack of inventory (and many governmental shortages and failures), to the higher interest rates (again, due to governmental failures and oversight), to NOW – the proposed BURDEN of having to pay for their “rights” to be a protected BUYER DURING THE HOME PURCHASE PROCESS with their Realtor Services NOW BEING ON THEM DIRECTLY.

Yes, I could go on and on about this – with REAL LIFE EXAMPLES of how I not only had Sellers who made MONEY on their Real Estate transactions – but that they GLADLY PAID FOR THE REALTOR SERVICES FOR BUYER INCLUDED, and knew / know that was the way the process amicably worked for ALL.

And more importantly, I can tell you about REAL LIFE EXAMPLES of Buyers who NEVER THOUGHT THEY COULD OWN A HOME, were negotiated into deals that WORKED for them and made them HAPPY HOME OWNERS – with as LITTLE OUT OF POCKET AS POSSIBLE – to which they were FULLY AWARE OF AND ABLE TO PAY, mainly because there was NO ADDED COST OUT OF POCKET TO THEM FOR MY SERVICES.

And, to go a step further – yes, I have the HORROR STORIES as well of people who LOST OUT because of decisions they made WITHOUT THE PROFESSIONAL SERVICES OF ME (or other REALTORS) as a result of their trying to “SAVE SOME MONEY”.

On the record I will say all of this, and what I believe is that ANYTIME SOMEONE IS TRYING TO TAKE AWAY THE RIGHT OF ANOTHER (in any form: out-right change to constitution or bylaws or process rules) THEN THERE IS ALWAYS A GAIN FOR THOSE SEEKING THE CHANGE and NOT A BENEFIT FOR THOSE WHO ARE AFFECTED.

And my passion to serve is the reason MY CLIENTS continue to use me for their Real Estate needs – they KNOW I am going to STAND UP, SPEAK UP and VOTE in this Industry for the RIGHTS OF THE CONSUMERS.

Here’s a few links if you’d like to see more:

Steps to Buy a House

The Steps to Buy a House involve several aspects, and here’s a simplified explanation of how it typically works:

  1. Saving for a Down Payment: The first step is to save money for a down payment. This is a portion of the total price of the house that you need to pay upfront. Saving for a down payment might take some time, but it’s an important part of the process.
  2. Understanding Your Budget: Before you start looking for a house, it’s essential to determine how much you can afford. Consider your income, expenses, and any existing debts you have. This will help you figure out a comfortable budget for your home purchase.
  3. Getting Pre-approved for a Mortgage: Unless you’re buying a house outright with cash, you’ll likely need a mortgage, which is a loan specifically for purchasing a home. To get pre-approved for a mortgage, you’ll need to provide some financial information to a bank or lender. They’ll assess your financial situation and let you know how much they are willing to lend you.
  4. Finding a Real Estate Agent: A real estate agent is a professional who helps you find a house that suits your needs and budget. They have access to listings and can guide you through the buying process. Look for a reputable agent who understands your requirements.  If you are reading this post – then you are already on the way to finding your Best Realtor of choice! 😉
  5. House Hunting: With the help of your real estate agent, you can start looking for houses that match your preferences. Consider factors like location, size, amenities, and price. Visit different properties, take notes, and ask questions to gather information.
  6. Making an Offer: When you find a house you like, you can make an offer to the seller. Your real estate agent will help you with this process. You negotiate the price and terms of the purchase, including any contingencies (such as inspections or repairs) that need to be met.
  7. Home Inspection: Before finalizing the purchase, it’s crucial to get a professional home inspection. An inspector will examine the house for any potential problems or repairs needed. This will help you make an informed decision about whether to proceed with the purchase or negotiate repairs with the seller.
  8. Closing the Deal: Once you’re satisfied with the inspection results and have secured your financing, you’re ready to close the deal. This involves signing legal documents, including the mortgage agreement and the deed, which transfers ownership to you. You’ll also need to pay closing costs, which include fees for various services related to the transaction.
  9. Moving In: Congratulations! After closing the deal and receiving the keys, you can move into your new home. You may need to arrange for utilities, such as electricity, water, and internet service, and make any necessary updates or repairs to personalize your space.

Remember, buying a house is a significant financial decision, so take your time, ask questions, and seek advice from professionals along the way.


Buying a Home isn’t Rocket Science

Although buying a home isn’t rocket science, although it can feel overwhelming… we are here to help you along the way!

Getting in contact with us early is very helpful to the process and unlike searching online for homes and loans – we promise not to bombard your phone and email with SPAM.  Have you looked online and seen a house that catches your eye – and in an honest (innocent) effort thought clicking “more info” was the better to get answers??  Likely then, you also have been hit up with a BUNCH of phone calls / emails that suddenly you feel inclined to turn everything off and never search again online!?

WE know the feeling = as Realtors it seems EVERYONE has something to sell us LOL.  So we respect the right you have to search online for homes – and we assist with giving you specific emails about new listings or homes that update status / price to fit your needs – and only those emails are what we will send.  You could also sign up for our newsletter – which is only generated at the first of each month, but again – delivery is specific to your request for the information and if that ever changes, you can opt out.

Online lenders that try to “sell” you the idea of also giving you HOME SEARCHES – is SELLING YOUR INFO TO THE HIGHEST BIDDER AGENT and not necessarily the right Realtor for You 😉

Reach out and call / text or email Tammy directly for your personal Real Estate experience to begin (without the hassle of being SPAMMED).

Finding HOME

Finding Home is an opportunity to find yourself… You know that feeling you get when you are “HOME” – it is one of comfort, safety and feeling accepted. Sometimes you have this feeling as a child growing up – and sometimes maybe you only have it for a portion of the time.  But it is safe to say, that the foundation for the feeling of “HOME” started with your childhood.

NOW, how to recapture that when it is time to make your first home purchase?

Well, it starts with working with someone as a trusted advisor a REALTOR who comes recommended by someone you know and trust or by doing an interview with potential Realtors until you find “the one.”  As a new person starting this process, it may feel as daunting as the prospect of finding “THE ONE” of anything else in life… The One – Partner,  The One – Career, The One – House, etc.  All important decisions certainly; but, just as critical as selecting THE ONE, is KNOWING you have The One – or not being afraid to say, NEXT until you do.

There IS a confirmation you feel, something inside that let’s you KNOW you have made the right choice.  Sometimes, I think it comes from the confirmation that the process is EASIER – or at least feels like it is worth the extra effort.

I’ve literally had clients who toured many houses, and for a “feeling” they get, when walking into a particular ONE – they knew it was their place to call HOME. And that is when we kick the process into the next gear!

I am HAPPY to schedule a time to meet with you in person, talk over the phone or via ZOOM – however is best for you to communicate and on a schedule that works for YOU.

If you are not the type of person that “feels” things – an analytical approach to your search may be a better approach.  And again, knowing that you have a trusted advisor for the process who is able to assist you with explaining the numbers for the process of your purchase is critical to you understanding what is the right decision for you.  It may not just be about the purchase price, it could be the terms of your loan that are most important; it could be the actual out of pocket expenses that lead you to the final decision – and all of these are important components of the process that can be determined, and maybe even negotiated for your benefit.



Home Buyer 101

Getting the information you need PRIOR to starting the purchase process can help to ensure you know what to expect along the way! Tammy offered a valuable webinar to walk thru the process and this recorded video shares that 30 minute discussion. If you would like more information or have questions specific to your needs, feel free to reach out to us to set a time to meet (in person on virtually online).