This year has been especially difficult for the real estate market – and in many ways has opened our eyes to be ever more diligent about PROTECTION and RIGHTS. Along that lines, criminals seek opportunities to take advantage of a chaotic environment and rely upon those not keeping up with all the things going on / happening. Our desire is to PROTECT YOUR RIGHTS in Real Estate and assist with helpful information – so please take this message as your PSA to: Protect Yourself from Deed Fraud.
Naturally, if you are in the process of buying a home with us, we are going to share with you the BENEFITS OF A TITLE POLICY – and we have seen a number of instances where the client DID follow our advice and ultimately this SAVED THEM from title troubles and legal costs to correct. While ultimately it is the client’s decision as to if they want to purchase a title policy, we believe that being INFORMED and EDUCATED about What is a Title Policy and What does it do for YOU – is the best way to ensure you make the right decision for yourself.
Our counties have registered an INCREASE in Fraudulent DEED ACTIVITIES in 2023, and for this reason, many counties are taking actions to establish further steps in the recording process, as well as setting up notification systems. Even if you are not buying a home anytime soon, or for that matter, even if you do not plan to SELL your home – having a FRAUD ALERT set on your DEED with the County CAN HELP PROTECT YOU. “The sooner you know something is wrong – the sooner you can do something about it.”
Official now – election results are in… Very happy to continue my service to the real estate industry – and knowing that so many of my fellow Realtors have the confidence in me to represent our Membership. Real Estate is not just about buying and selling homes – it is most importantly about the relationships we are able to make (with our clients, communities and others in the industry!) Having people who are invested in the business and open to doing what is right and for the greater good is key to making necessary changes and supporting our roles to our clients! Looking forward to 2024 and beyond!
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.
Our “Building a Secure Future: Estate Planning and Real Estate Workshop” is planned for Thursday, August 24, 2023 and will be held from 11 AM – 1 PM. This FREE event will be held at the American Legion Post 598 at 5700 Kentshire Drive, Kettering OH 45440. Please reserve your seat in advance so that we can adequately be prepared with Refreshments and Hand-outs!
Here are a few Helpful Tips to Assist Planning for You & Your Loved Ones:
Start Early: Begin your estate planning process as soon as possible. Don’t wait until it’s too late or you’re faced with an unexpected event. Planning ahead allows you to make informed decisions and ensures that your wishes are carried out effectively.
Define Your Objectives: Clearly identify your goals and objectives for estate planning. Whether it’s protecting your assets, minimizing taxes, providing for your loved ones, or supporting charitable causes, having a clear vision will guide your planning process.
Create a Comprehensive Estate Plan: A well-rounded estate plan typically includes a will, power of attorney, healthcare directives, and trusts. Tailor these documents to your specific needs and circumstances, considering factors such as real estate holdings, investments, business interests, and family dynamics.
Regularly Review and Update: Life circumstances change over time, so it’s crucial to review and update your estate plan periodically. Major life events like marriage, divorce, births, deaths, or significant financial changes may require adjustments to your plan.
Involve Trusted Professionals: Seek the guidance of experienced professionals such as estate planning attorneys, financial advisors, and tax experts. They can help you navigate complex legal and financial matters, ensuring your plan aligns with applicable laws and maximizes your benefits.
Consider Long-Term Care: Incorporate provisions in your estate plan to address potential long-term care needs. This may involve setting up healthcare proxies, living wills, or establishing trusts to safeguard assets and provide for your care in the event of incapacity.
Maximize Real Estate Planning: Real estate is often a significant asset in an estate. Consider how to pass on property to heirs efficiently, minimize tax implications, and explore strategies like gifting, trusts, or establishing family limited partnerships to manage and protect your real estate assets. Working with your Trusted Realtor is a start to ensure timing in the market is maximized.
Communicate with Loved Ones: Openly discuss your estate planning intentions with your family and loved ones. Clear communication can help prevent misunderstandings, disputes, and challenges in the future. It also allows you to address any concerns and provide explanations for your decisions.
Continually Educate Yourself: Stay informed about changes in estate planning laws, tax regulations, and financial strategies. Attend workshops, seminars, or seek educational resources to enhance your knowledge and make informed decisions.
Seek Professional Guidance: While this list provides helpful tips, it’s important to remember that every individual’s situation is unique. Therefore, consult with a qualified estate planning professional who can provide personalized guidance based on your specific circumstances and goals.
Boxabl as the Future of Housing -presents with a unique housing product that is price / quality and timing sensitive to the current needs in communities… we just need to get our Community Leaders onboard to adjust zoning and permitting to allow the use of this housing alternative.
Knowing that we are now hearing about the “housing crisis” and that there is a shortage of homes for sale across the country, and especially in our local communities – housing alternatives are NEEDED.
Want more information? Ask Tammy for details or feel free to explore with these links:
Participating in the Jobs Ohio Quarterly Update meeting and hearing wonderful news about the progress of our state is an exciting opportunity.
“Ohio is a Special Place” (nothing new to me – of course I already know and believe this!)
The diversity of our state is helping to drive the various job sectors GROWTH, the vibrancy of our communities and the future potential we can take hold of and claim. All that being said, there is a challenge, as Lt Governor Husted stated, “We need to begin to address HOUSING” – and the low inventory levels we have had now for the last four years have added to that need.
It is time for our communities to OPEN their thinking and planning requirements to fast-track the housing process, so that more construction can take place; BUT, it is also time to expand housing alternatives! We must allow alternative housing structures / zoning to include: Accessory Dwelling Units (ADUs); Tiny Homes; Pre-fab / Manufactured Housing; not to mention the ability for multi-generational living and vertical living.
Easy for me to say? YES – because I have been actively working in the industry of Real Estate since 2001. I take this business seriously and know the impact HOUSING has on everyday quality of life, the opportunities it presents to people and more importantly – the impact it has on our communities overall. I care about and want to assist in whatever way possible, so that the right path forward can be forged for all. We have to address the supply of housing to begin to address the cost of housing and the circle of real estate cycles continues!! Why are our communities making decisions about housing WITHOUT having Active Realtor participation? Our Associations and committees would gladly help to answer the questions, direct the focus that is needed and to even participate and volunteer to be included in their discussions – yet many in leadership merely serve their time and pass the buck to the next party. Without an answer to the question of housing – we cannot address the other necessary topics (affordability, homelessness, blighted redevelopment, incoming job growth) all of which should be just as important for community leaders to begin addressing as well 😉
I am not “just a Realtor” I AM YOUR ADVOCATE for property rights and opportunities. I help people to buy, sell and invest in what is typically their LARGEST SINGLE AND MOST EXPENSIVE FINANCIAL ASSETT and I do this with integrity and with the client’s best interest at heart. Seems to me – I might be that person who would be good to have a part of the planning??? At least I am willing to make myself available and help dive into the process with you!
I’ve been talking about topics that are now starting to “trend” but I was saying it LONG before – and I believe alternative housing is going to be the necessary, next thing. Soon I will get to report on a factory tour for a prefab manufacturing facility in our area, and I am planning to venture out West to tour another facility – because I know how important this next step is for people and for our communities. WATCH for updates and I’ll be sure to share my thoughts and findings with you 😉
The real estate brokerage with a heart! Helping you as buyers and sellers in today's real estate market. RH2L is "Real Homes To Love" and your choice for professional real estate services in today's market! Office hours by appointment.