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      Keeping Current

      9/11- 19 Years Later

       
       
      Today, 19 years ago, multiple terrorist attacks killed nearly three thousand people in New York, Pennsylvania and Washington DC, and caused billions of dollars worth of damage resulting in an enormously expensive re-building and a $6 trillion war that resulted in thousands more lost lives. This horrific event triggered enormous changes around the globe. Here are some observations.
       

      1.  The Pentagon in Washington DC was fully restored and repaired. In Manhattan it's difficult to believe this horrific event happened almost two decades ago......but it's so invigorating to see what has happened since then. The Lower Manhattan Renaissance is a sight to behold: Multiple towers and a museum and memorial have been built, including a sensational Santiago-Calatrava designed World trade Center transportation hub that has become an instantly recognizable and unique New York attraction. Today Lower Manhattan's population has almost tripled to 62,000. and the number of residential housing units has spiraled past 30,000 units.

      2.  The economy did not stop: US GDP was about $10.5 trillion in 2001: last year it was more than double.

      3.  Air travel was transformed with a whole host of security measures that have become 'expected' and 'normal' today.

      4.  Surveillance increased dramatically. Most large cities have security cameras everywhere and new high tech solutions have made cities much safer.

      5.  The world collectively realized safety and security would always have to be a top priority of governments, cities, towns, villages.

      6.  The unity in the USA felt directly post-9/11 is something we should all remember and try to re-produce. A united front against adversity is always more effective.

      7.  We were reminded how important firefighters are in our world. We are reminded of that again now as they battle wildfires in the West.

      8.  We CAN learn from history if we choose not to forget or ignore realities and data points that provide us clear intelligence and insights.

      9.  With anything catastrophic, we learn how there are always warning signals before they happen. Responding to those may appear paranoid to some, yet we should weigh the cost of paranoia against the cost of recovery. It's usually a fraction.

      If there is one important lesson to be learned from 9/11 it is that we as a human species evolve, learn and adapt. We rebuild and restore. We invent and innovate. At a time like this when so many are unemployed, homeless, sick, grieving and the USA has suffered a truly awful few months, we can look back to 9/11 to be CERTAIN we will recover from this moment and soar well past it. 

      I know someone well who ran down fifty flights of stairs from the south tower of the World Trade Center and exited the building just as it was crumbling.....he walked home for over an hour covered in dust and debris, bloodied from flying glass. When he arrived home, the phone rang. It was his real estate agent: "I have a full price offer on your apartment!" He responded by saying it was not the best time to speak, hung up and the phones went dead for a week. He re-connected with his agent then and she had another offer over the ask..... Life goes on. It always has and it always will.

       

      The Top Reasons People Are Moving This Year

       

       

      The Top Reasons People Are Moving This Year | MyKCM

      Today, Americans are moving for a variety of different reasons. The current health crisis has truly re-shaped our lifestyles and our needs. Spending extra time where we currently live is enabling many families to re-evaluate what homeownership means and what they find most important in a home.

      According to Zillow:

      “In 2020, homes went from the place people returned to after work, school, hitting the gym or vacationing, to the place where families do all of the above. For those who now spend the majority of their hours at home, there’s a growing wish list of what they’d change about their homes, if possible.” 

      With a new perspective on homeownership, here are some of the top reasons people are reconsidering where they live and making moves this year.

      1. Working from Home

      Remote work is becoming the new norm in 2020, and it’s continuing on longer than most initially expected. Many in the workforce today are discovering they don’t need to live close to the office anymore, and they can get more for their money if they move a little further outside the city limits. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) notes:

      “With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”

      If you’ve tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work and continued productivity very challenging.

      2. Virtual Schooling

      With school about to restart this fall, many districts are beginning the new academic year online. Education Week is tracking the reopening plans of schools across the country, and as of August 21, 21 of the 25 largest school districts are choosing remote learning as their back-to-school instructional model, affecting over 4.5 million students.

      With a need for a dedicated learning space, it may be time to find a larger home to provide your children with the same kind of quiet room to focus on their schoolwork, just like you likely need for your office work.

      3. A Home Gym

      Staying healthy and active is a top priority for many Americans. With various levels of concern around the safety of returning to health clubs across the country, dreams of space for a home gym are growing stronger. The Home Builders Association of Greater New Orleans explains:

      “For many in quarantine, a significant decrease in activity is more than a vanity issue – it’s a mental health issue.”

      Having room to maintain a healthy lifestyle at home – mentally and physically – may prompt you to consider a new place to live that includes space for at-home workouts.

      4. Outdoor Space

      Especially for those living in an apartment or a small townhouse, this is a new priority for many as well. Zillow also notes the benefits of being able to use yard space throughout the year:

      “People want more space in their next home, and one way to get it is by turning part of the backyard into a functional room, ‘an outdoor space for play as well as entertaining or cooking.’”

      You may, however, not have the extra square footage today to have these designated areas – indoor or out.

      Moving May Be Your Best Option

      If you’re clamoring for extra space to accommodate your family’s changing needs, making a move may be your best bet, especially while you can take advantage of today’s low mortgage rates. Low rates are making homes more affordable than they have been in years. According to Black Knight:

      “Buying power for those shopping for a home is up 10% year over year, with home buyers able to afford nearly $32,000 more home than they could have 1 year ago while keeping their monthly payment the same.”

      It’s a great time to get more home for your money, just when you need the extra space.

      Bottom Line

      People are moving for a variety of different reasons today, and many families’ needs have changed throughout the year. If you’ve been trying to decide if now is the time to buy a new home, let’s connect to discuss your needs.


       

      Compass Contemplations for Monday

      Good morning,

      Wishing all of those in California, particularly in our Compass family,  well,  who are experiencing a heatwave and wildfires. Death Valley near the border of Nevada recorded a temperature of 130 degrees! 

      DID YOU KNOW? More than 25% of U.S. colleges plan to begin fall instruction fully or mostly online, but many are still opening up their dorms. Some are limiting space to those students with housing insecurity or other hardships. Some, like Washington State University in Pullman, Wash., plan to offer housing to students who fit into a number of defined categories, such as veterans or those with on-campus jobs. Other online-only campuses, like the University of California, Berkeley, say they’re still accepting housing applications. Some may change plans at the 11th hour, as the University of Massachusetts, Amherst, did less than 3 weeks before classes were to begin, with an announcement that it would no longer allow students whose classes are held remotely to move into the dorms. (NY TIMES)

      DID YOU KNOW? Fewer Floridians filed for unemployment last week than any other week since mid-March, a hopeful sign. Leisure and hospitality accounts for 40% of the USA’s long term pandemic unemployment. Destinations Florida showed tourism revenue was down more than 80%. Tourism is roughly a little under 3% of US GDP.....but in Florida, it's closer to 10%. Tourism generated roughly $26 billion in tax receipts in 2018 in Florida which helps fund schools, improve healthcare and supports other government services.

      DID YOU KNOW? Commercial real-estate loans make up around 22% of U.S. banks’ total loans. 
      For the 5 years preceding the beginning of the pandemic, global commercial real-estate investment ran to around $1 trillion a year. We might all wish for a return to the office for this reason alone..... (WSJ)

      DID YOU KNOW? In Hong Kong, CBRE expects a fall of more than 15% in top-tier office rents this year. The combination of political unrest and COVID are driving this. (WSJ)

      Where Did All The People Go?

       

      As I walk the streets of Manhattan, a question I hear asked repeatedly is: "Where are all the people?" This same question is being asked around the globe in larger towns and cities, more so in some areas than others. So I did a little research to help explain this highly unusual moment.....and this is what I discovered:


      1.  Big Cities are often NOT mostly locals.  Most bigger cities attract vast numbers of tourists and visitors, domestic and international. New York City attracts around 60 million people annually......that's around 5 million per month or 160,000-400,000 per day.  Cities like Chicago, Atlanta, Los Angeles, San Francisco, etc also attract huge numbers of visitors and tourists. Miami attracts over 23 million per year. That's a lot of people and most of them cannot or don't want to travel right now.

      2.  Big Cities attract tons of daily commuters. Manhattan alone attracts about 1.6 million workers per day. Many come from outside the city. Most larger cities don't house the majority of workers and these days many are working remotely.

      3.  Big Cities have big colleges and schools......most are shut right now for the Summer and COVID-19 precautions.

      4.  Big City dwellers house many residents with second homes or those who escape for a few weeks in the Summer. They are also out of cities right now.


      Add up the above and it's easier to understand why larger cities around the globe are not quite the same right now. But this will change. It's a matter of time. Not if, but when. Some say things will never be the same again, and I agree with that to a certain degree: Chances are we'll never again take for granted those (sometimes annoying) throngs of visitors, tourists, students, etc that are a critically important part of the fabric of the places we call home.....they are the VOLUME that drives commerce, jobs, growth and LIFE!


      Have a Magnificent Monday!

      COMPASS Contemplations for Sunday

       

      A very HAPPY FATHER'S DAY to all the amazing Father's in America and to their extended families. Today is YOUR day and I hope you enjoy it thoroughly. I am always in awe of the fathers that have a full workload AND have the responsibilities of fatherhood too. I simply don't know how you do it! While being a parent is possibly the most rewarding of all human roles in life, it can also be the most challenging, exhausting and consuming one too.

      So here's a big THANK YOU and CONGRATS to all the fathers everywhere - for the critically important role they play in our society and the lives of all those kids who love and admire you beyond words.

       

       

      “A father is neither an anchor to hold us back nor a sail to take us there, but a guiding light whose love shows us the way.” - Unknown


      DID YOU KNOW?  Alain Ducasse hired interior designer and architect Patrick Jouin along with doctors Thomas Similowski (head of pulmonology, intensive medicine, and resuscitation) and Jerome Robert (head of bacteriological medicine and hospital hygiene) from Pitié-Salpêtrière hospital, in Paris, and architect Arnaud Delloye to create an aesthetically pleasing high-performance system that purifies air and limits its movements to reduce the potential risk of aerosol transmission of the coronavirus in his Paris restaurant ALLARD. The $56,000 filtration/ac system with high-tech filters and fans is akin to that used in operating rooms, and the dividers between tables are ultra-chic. 
        
      DID YOU KNOW?  Yesterday I read a story about a lease in the Hampton's that went awry during the pandemic.....the tenant whose behavior was allegedly awful was a real estate agent in the Hampton's and of course his brokerage was mentioned clearly and boldly. Again. another reminder that every COMPASS employee or agent's actions can reflect poorly on ALL of us. The brand name COMPASS is to be nurtured, treasured and respected as it is something we all share as an extension of who we are. 



      “We believe the FDA will likely approve at least one vaccine prior to the November election. Perhaps multiple vaccines could get the go-ahead at some point early in the fourth quarter and quell fears of a second wave of Covid-19.” - Jared Jolz, Jeffries

      Want to Make a Move? Homeowner Equity is Growing Year-Over-Year

      Want to Make a Move? Homeowner Equity is Growing Year-Over-Year | MyKCM

      One of the bright spots of the 2020 real estate market is the growth in equity homeowners are experiencing across the country. According to the recently released Homeowner Equity Insights Report from CoreLogic, in nearly every state there was a year-over-year first-quarter equity increase, averaging out to a 6.5% overall gain.

      The report notes:

      “CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $590 billion since the first quarter of 2019, an increase of 6.5%, year over year.” (See map below):

      Want to Make a Move? Homeowner Equity is Growing Year-Over-Year | MyKCM

      This means that In the first quarter of 2020, the average homeowner gained approximately $9,600 in equity during the past year.”

      That’s a huge win for homeowners, especially for those looking to sell their houses and make a move this summer. Having equity to re-invest in your next home is a major force that can make moving a reality, especially while buyers are expressing such a high demand for homes to purchase.

      Below, Frank Martell, President, and CEO of CoreLogic addresses the potential long-term outlook, and how homeowners will likely fare much more positively through the current recession than many did during the last one:

      “Many homeowners will experience a recession during their lifetime, and it is reasonable to compare the current recession to those in the past. But the comparison is not apples to apples — every recession is different. Primary drivers of the Great Recession were an overbuilt housing stock, risky mortgages and the collapse of home prices, creating a massive increase in negative equity that proved difficult to recover from. Today’s housing environment has low vacancy and delinquency rates and a large home equity cushion.”

      Bottom Line

      Now is a great time to consider leveraging your equity and making a move, especially while buyer interest is high. Let’s connect to explore your equity position and make your next move a reality.

       

      COMPASS Contemplations for Wednesday

      DID YOU KNOW?  In celebration of Pride Month, Robert will be chatting with the Executive Director of GLSEN Eliza Byard TODAY at 4pm ET and their conversation will be live-streamed in the Compass Workplace group. GLSEN is an organization recognized worldwide as a pioneering leader in the fight for educational equity and in making sure that LGBTQ students are able to learn and grow in a school environment free from bullying. Thank you to Elizabeth Ann Stribling-Kivlan, OUT at Compass and Compass Cares for pulling together this event!

       

      DID YOU KNOW? Russian President Vladimir Putin now has a “disinfection tunnel” installed at one of his official residences to protect him from contracting the coronavirus. Could this become the next X-RAY machine we have become so accustomed to at airports?

       

      DID YOU KNOW? Mortgage applications to purchase a home rose 4% last week from the previous week and were a remarkable 21% higher than a year ago, the 9th consecutive week of gains and the highest volume in more than 11 years!  The average interest rate for a 30 year fixed-rate mortgage decreased to 3.30% from 3.38%  (CNBC)

       

      DID YOU KNOW? Retail sales, a measure of purchases at stores, at restaurants and online, increased a seasonally adjusted 17.7% in May from a month earlier. Expect more GOOD NEWS headlines like this over the next few weeks and months after weeks/months of bad headlines. While the higher you climb the further you can fall is true.....so too is it true that when you have fallen to a deep low, chances are it's up, up, up from there! (WSJ)

       

      DID YOU KNOW? Builder sentiment jumped a striking 21 points in June to 58, the largest monthly increase ever in the National Association of Home Builders/Wells Fargo Housing Market Index. Any reading above 50 indicates a positive market. In April, it plunged a record 42 points to 30. Of the index’s three components, current sales conditions jumped 21 points to 63. Sales expectations in the next six months rose 22 points to 68. Buyer traffic more than doubled from May to June, from 22 to 43.

       

      “The dollar is going to fall very, very sharply,” - Steven Roach, Yale University, citing growing debt and diminished savings. If this happens, could it spur a new wave of foreign buyers? Again, this is just one of many predictions/opinions.

       

      DID YOU KNOW?  The total of new COVID-19 cases from the top 5 states in the USA is 2.5X that of the next 5 states, to put things into perspective.  The top 5 states have a total population of around 108 million, while the next five have almost 47 million people. So the top 5 have a ratio of 78.7 new cases per million inhabitants. The next 5 have 71.7 new cases per million inhabitants. A cheap and widely-used steroid called dexamethasone has become the first drug shown to be able to save lives among COVID-19 patients in what scientists said is a “major breakthrough” in the coronavirus pandemic.

       

      DID YOU KNOW? Housing starts that measure how many single-family homes builders break ground on probably will fall to 770,000 this year, the lowest level since 2015, according to the NAR. The 1.47 million properties on the market at the end of April was the lowest ever recorded for the month, according to NAR data. Americans created 11.4 million households in the 10 years through 2019, according to Census data. Builders sold 5.2 million single-family homes in the same period. In the prior decade, they sold 10.4 million new houses. Supply disruptions and the COVID-19 lock downs that ensued have made the situation worse. (Housingwire)

      COMPASS Contemplations for Tuesday

       

      Wishing all our LGBTQ colleagues, friends and family at COMPASS a HAPPY PRIDE MONTH! Yesterday The Supreme Court concluded by majority that the language of the Civil Rights Act of 1964, which prohibits sex discrimination, applies to workplace discrimination based on sexual orientation and gender identity. The question for the justices was whether that last prohibition — discrimination “because of sex”— applies to many millions of gay and transgender workers. Could there be a better PRIDE MONTH gift?

       

      DID YOU KNOW?  A long overdue $1 TRILLION infrastructure bill seems to be in the works to help fuel the economy and provide much needed improvements to the USA's infrastructure..... (CNBC)

       

      DID YOU KNOW? With the most economic uncertainty in decades and a head-spinning stretch of volatility in the U.S. stock market, many investors have rushed into money-market funds where cash assets have swelled to about $4.6 trillion, the highest level on record, going back to 1992. Imagine if this capital was deployed in the economy.....(WSJ)

       

      DID YOU KNOW? Nationwide, about 64% of home shoppers looked for suburban homes in April, compared with 66% in April 2019. New York metro area shoppers, those looking to move to a different metro area grew to 40%, from about 35% last year. About 70% of all shoppers in the New York metro area looked for suburban homes, down from 72% last year.(WSJ)

      DID YOU KNOW? A 2017 report by the European Foundation for the Improvement of Living and Working Conditions suggeste
      d that 41% of remote employees report higher levels of stress compared with just 25% of their counterparts who work in the office. According to a 2018 survey that Mental Health America conducted with FlexJobs, about 71% of people would like to work from home to reduce commute-related stress. Approximately 75% of survey respondents also said that working remotely could potentially help them limit stress related to distractions during the workday. (Healthline)

      DID YOU KNOW? People who work from home are at a greater risk of obesity and diabetes because there is a significant decrease in physical activity. (Dr A.J. Marsden of America’s Beacon College in Leesburg, Florida)

      DID YOU KNOW? The FBI reported a 50% surge in mobile banking since the beginning of 2020, likely due to stay-at-home orders. (Housingwire)

      DID YOU KNOW? Remote workers typically save about $4,000 a year by working from home, according to a study from FlexJobs. That comes from saving on commuting costs as well as paring spending on coffee, lunches and a professional wardrobe. Those cheering the concept of abandoning working in offices should factor the potential loss of $4,000 spending per person in the economy.....

      COMPASS Contemplations for Thursday

      DID YOU KNOW? Manhattan markets are picking up: There were 47 in-contract deals from May 11 to 17th, up from 31 the week prior. That increase follows six consecutive weeks of declines.

       

      DID YOU KNOW?  Besides DOW 25,000, what SIX METRICS could define the real estate recovery?

      1. The flattening of the curve. (This is a health-fueled crisis, not an economic fundamentals-fueled crisis). CHECK, for most areas.

      2. The end of stay-at-home orders. Once society moves around more freely, so too can commerce flow. CHECK for many areas, not all.

      3. The 10-year yield rises above 1%.  IMPROVING. Not there yet.

      4. Credit Stress. IMPROVING notably.

      5. JOBLESS CLAIMS. STILL BAD, yet most jobs lost were in sectors that are now re-opening. Re-hiring could improve dramatically. (eg: Amazon has offered 125,000 of the 175,000 part-time employees it hired for the pandemic a fulltime job)

      6. Hardest hit sectors improve. STARTING NOW.

      DID YOU KNOW? In Miami, April saw a 20.7% year-over-year drop in closed sales of single-family homes and a 36.5% plummet in condo-townhome sales during the same period. New listings in April were down over 27.2% year-over-year in the single-family category and were down 38.5% for the condo-townhouse sector. New pending sales for April took a 35.1% drop in the single-family category from a year earlier and pending sales in the condo-townhouse category sank by 56.6% from April 2019. April should prove to be the 'bottom' of this decline. May, however, is already showing a sharp improvement with pending sales up around 80%! $1m+ pending sales are up over 30% already.

      DID YOU KNOW? Dozens of U.S. cities have inadequate flood insurance coverage. In Boise, Idaho ValuePenguin found that there was only one active flood insurance policy despite there being more than 8,700 homes ....in a 100-year flood plain. Riverside, California, was the second-worst city for flood insurance coverage ratios, with only 344 active policies despite more than 40,000 homes in a 100-year flood plain. Across the 100 largest metropolitan areas in the U.S., there are only 4 active policies for every 100 homes in active flood zones. Maybe a good time to check in with your clientele to see if their home is located in a flood zone and to make sure they have adequate insurance?

      DID YOU KNOW? In the week ending May 10, newly pending sales nationwide were up almost 50% from the same period in April. And in four large metros — Cleveland, Cincinnati, Houston and Dallas-Fort Worth, newly pending sales were up from the same time last year. New for-sale listings are up 12.5% month over month after the seven days ending on May 10, but year over year they were still down 27.6%. Overall, while home listings continue to bounce back, inventory still remains about 20% below last year’s already low levels. (Housingwire)

       

      DID YOU KNOW? Summer is almost here and it may be a good time to message to your clients how to deal with ticks, a common problem with pets and kids....and adults! After safely removing the tick, one of the most important steps is to test the tick. Knowing the species and what disease(s) the tick is carrying will help with your diagnosis. Click here for a list of tick testing labs in the U.S. Click here for complete Be Tick AWARE resources.

       

      COMPASS Contemplations for Tuesday

      DID YOU KNOW? American biotech company Novavax has started the first human study of its experimental Coronavirus vaccine and expects initial results on safety and immune responses in July. Last week, Moderna reported positive development on its vaccine trial: all 45 participants had developed coronavirus antibodies. Merck plans to work alongside IAVI, a non-profit scientific research organization, to develop a potential vaccine against the Coronavirus. (CNBC)

      DID YOU KNOW? Lumber prices for July delivery are up 46% from a low on April 1 and 15% higher than a year ago, indicating a rebound in construction demand. With trade tensions with China worsening, don't expect construction costs to go down: the exact opposite is possible. (WSJ)

      DID YOU KNOW? Current cash levels are above a historical average dating back to 2005. Cash allocations have risen to nearly 14% for Bank of America clients. Over $1 Trillion could enter the markets soon..... the S&P 500 is up more than 35% since March 23. (CNBC)

      DID YOU KNOW? French GDP fell 5.8% in the three months to March, while Italy’s GDP contracted by 4.7%. In the previous quarter, their GDP fell by 0.1% and 0.3% respectively. GDP in Germany and the U.K. was down by around 2%, with GDP for the entire European Union shrinking by 3.3%. U.S. GDP fell by 1.2% in the first quarter, compared to 0.5% in the previous quarter. The second quarter could be as bad, if not worse as shutdowns extended. The World Bank has forecast a worldwide GDP contraction of 5% this year.....although I think we should always judge a year at the END of the year! After a big fall.....expect big rises!  I am optimistic!  (CNBC)

      DID YOU KNOW? Mortgage availability has tightened sharply as lenders impose tougher income, credit-score and down-payment conditions and drop some loan types altogether, such as home-equity lines of credit. If you have any clients seeking to buy now or over the next few months, be certain to evaluate their credit scores early and connect them with a 'credit clean-up' consultant ASAP to improve their score.but a strong credit score alone may not be enough, so pre-approving buyers early may be more important now than ever. JP Morgan Chase said it wouldn’t make loans without a 20% down payment or a credit score of 700 or above. Wells Fargo stopped allowing cash-out refinancing loans. (WSJ)

      6 Reasons Why Selling Your House on Your Own Is a Mistake

      6 Reasons Why Selling Your House on Your Own Is a Mistake | MyKCM

      There are many benefits to working with a real estate professional when selling your house. During challenging times like the one we face today, it becomes even more important to have an expert help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale By Owner or FSBO, please consider the following:

      1. Your Safety Is a Priority

      During this pandemic, your family’s safety comes first. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings, but your family’s health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, agents are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.

      2. A Powerful Online Strategy Is a Must to Attract a Buyer

      Recent studies have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumped to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you?

      3. There Are Too Many Negotiations

      Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:

      • The buyer, who wants the best deal possible
      • The buyer’s agent, who solely represents the best interest of the buyer
      • The inspection companies, which work for the buyer and will almost always find challenges with the house
      • The appraiser, if there is a question of value

      As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.

      4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage

      Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress that’s being made toward a purchaser’s mortgage commitment. Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and in mortgage forbearance. A loan program that was there yesterday could be gone tomorrow. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.

      5. FSBOing Has Become More Difficult from a Legal Standpoint

      The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

      6. You Net More Money When Using an Agent

      Many homeowners believe they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:

      “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

      The more buyers that view a home, the greater the chance a bidding war will take place.

      Bottom Line

      Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, let’s connect to discuss your options.

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