Home is where the Real E$tate is by Fergus

As promised last time here is a two part breakdown of the pending and ongoing $418 million settlement by the National Association of Realtors following class action anti-trust lawsuits that goes into effect on this day, Aug 14th 2024 with some additional changes plus my take… Essentially these changes include the requirement to use written buyer agreements for all buyers and the removal of commission fields in the MLS, the digital search and data tool that we realtors use to buy and sell properties on behalf of our clients. There are approximately 800 MLS’s throughout the country and while there is national oversight each state has its own contract and way of doing business. However, all realtors, no matter the state, are beholden to a code of ethics re standards of practice, the essence of which is tied to the acronym OLDCAR which outlines the duties and responsibilities we owe our clients: Obedience (within the law), loyalty, disclosure, confidentiality, accountability, and reasonab...

WORKING WITH A REALTOR/THE LISTING AGENT Before listing a property, most realtors, myself included, will schedule and pay for a professional photographer to photograph the home for the purpose of highlighting the home's attributes. As the saying goes 'a picture is worth a thousand words'. Once the photography is complete, the agent or their assistant will select and upload/label the best images (typically 30) to the MLS (Multiple Listing Service),  a private database that is created, maintained and paid for by real estate professionals to help clients buy and sell property. Meanwhile, if the home is not occupied or partially furnished, refer to blog number 1 in this 3 part series which includes some information on staging. THE MLS  For both real estate professionals and clients alike, a local MLS plays a critical role when it comes to marketing and selling a home. Each listing has mandatory fields (some are optional), such as the number of bedrooms, bathrooms, total square ...

Representation The most common choice is to work with a realtor or real estate professional, either by referral, word of mouth or reputation, or of course a combination thereof. The advantage of working with a realtor for any seller is that they will get full representation on the back of what is called a listing agreement which I will go into in more detail, but for now lets just say that a listing agreement is encouraged and or required in all fifty states.  In essence the duties of a contracted 'realtor' include the following... Obedience (within reason) Loyalty Disclosure Confidentiality Accounting  Reasonable care  If you are that rare seller (around 1%) who is considering going with the for sale by owner (FSBO) option, keep in mind that you do not have access to the myriad tools a realtor has to find a buyer, or for that matter a plug and play support system to help you navigate your way through what can be a very complex process. Similarly, when it comes ...

Hello and welcome back to my blog: Like all professional client relationships there are two sides to consider, beginning of course with the client.  For my part, I like to begin the conversation with the fundamentals as in why, when, and how? Statistically the number one reason a seller will be looking to sell is family but there a great many other reasons too, such as downsizing or a change of location/job change, or perhaps they need to raise cash going into retirement. Regardless of the reason, it behooves the agent to take an interest in their client’s goals and expectations, particularly as it points to motivation and need.            For instance, I have worked with sellers who are just looking to test what the market can bring them and conversely I have worked with sellers who had to sell due to medical reasons, the latter of which are considerably more motivated as far as the timeline. Irrespective of the reasons we are in the relationshi...

Depending on where you are looking in the Metro DC area, a parking spot is worth its weight in gold or more specifically $40 to $50K. When it comes to parking there is some confusion about the differences when it comes to ownership.  In a condominium , the difference between deeded parking and assigned parking is significant. A deeded parking space is primarily under the control of the unit owner, while an assigned parking space is under control of the condo or homeowners’ association, the latter of which can in extreme cases be changed or even eliminated without the unit owner’s consent.  The owner of the space has the right to use, sell, or rent it out and I know a number of people in the DC who do. Legally, a deeded parking space is generally appurtenant to the unit, which defines it as being attached to the unit, but that does not mean it is physically attached or has to be. A deeded parking space is highly desirable in the event of a home sale since ownership is transf...

QUALIFICATION TO PURCHASE Please note that this is what the buyer can expect at time of writing. All conditions are subject to change.  INTRODUCTION The first thing a serious buyer should do when looking for a home is talk to a lender about pre-qualification since it will give them a sense of what they can afford. When the buyer is ready to purchase a home they will need to seek what is called 'pre-approval' which is a more detailed and thorough process, and involves such things as a credit check. Ultimately, without a pre-approval letter from the lender in an amount that covers an offer price, the would-be seller will not have the assurance they are looking for. In the DC metro area, a pre-approval letter is typically required when making an offer.  1. Upon ratifying a contract to purchase a home, the buyer will need to make an official loan application as well as to provide any outstanding financial documents that may be requested. Once the interest rate is locked, the lend...

When comparing different real estate loans, it of course behooves one to take a proper look at their circumstances. Here are some factors to consider when comparing real estate loans and or how to qualify for a home purchase: Interest Rate Compare the interest rates offered by different lenders. A lower interest rate can save you money over the life of the loan. As a rule of thumb, I recommend working with a local lender who understands the local market but there have been some instances in which clients have found a better rate with a national lender or someone they have worked with previously.       When rates are higher, as they are now (June '24), the buyer pool is typically lower which can be a positive as far as pricing and negotiation. Regardless, one of the things you can do from the onset is to look into buying down the rate . Ask your agent/representative to look into whether or not the seller might want to give a credit to buy down the rate which upon acce...