09-29-18 8AM Radio Show Summary
The following is an interpretation of the comments the author heard on material discussed on the Barry and Larry Radio show on Sept. 29, 2018 from the 8:00 am show on KHOW630
Host: More listings are in the markets now than a week ago. This may just be a data anomaly –- too soon to tell if the statistics is a trend or not. One week statistics doesn’t make a trend. The statistics only shows that sellers have more competition.
Last week there are 5,200 detached homes listed in the market and this week, it went up to 5,600. This is the highest inventory for this year
Is it a good time to put the house for sale? It depends on the seller’s wants and needs. There’s no bad or good time to put the house in the market.
Larry’s View: It is time for a change
For more than 100 years, Real estate agent commissions have been fixed at 7% and more recently at 6%. The commission rate of 6% has remained unchanged for many years despite the use of the internet which simplifies the agent’s workload. The time has come for the real estate industry to start pricing their commissions based upon the amount of work the agents actually do. Miller-Stanley real estate and a few other companies around the United States are leading this change. At Miller-Stanley, they have developed a copy written system to determine the commission rates for each home listing, for each home buyer and for each market condition that exists.
When buying or selling a house, make sure that the agent determines the commission base upon the amount of work that actually needs to happen. When interviewing agents, make sure that their rates are variable according to how much work they actually have to perform. If they don’t have flexible commission rate policy, don’t hire that agent. Consumers need to be treated fairly with the right flexible commission program.
Things to keep in mind when shopping home insurance
• Look at home insurances at least once a year.
• Call somebody that can help consumer shop more than one company either for mortgages or insurance.
• Look for the company that can get the best price and best coverage for consumers.
Barry’s World: What is the ideal length of a real estate contract?
• 100 days is the ideal maximum length of a real estate contract. Don’t sign contracts for more than 100 days, or else consumer will be held captive. Consumers won’t know how hard the agent will work especially if they don’t see them.
• For sellers – It is fine if it’s less than 60 days. Typically, the home will sell within days or week. Sellers just need to assess the house at a price that the market will attract.
Host: Agents should have an updated comparative market analysis every two to three weeks. Just last week, 210 homes have been added on the market with a price point between $400k-$700k. Those homes have added 12 additional days of inventory on average. Sellers need to wait a little longer because of the competition. More competition usually drives prices down that’s why it is important that the agents stay on top of things.
“The agents from the Buyer Agent Search Network are always updated on the market’s trends.”, the host added.
Host: Kathleen Chiras of the SmartHomeSearch Network always help match consumer’s wants and needs with top agents throughout the United States.
Upcoming Event: A boot camp seminar will be held on October 27, 2018 from 10:30am-12:30pm. The seminar is for free and snacks, coffee, and parking will be provided. To register, call the registration hotline (303-888-3788) or send an email to firstname.lastname@example.org including the name and contact number of interested participants.
Host: The seminar will teach consumers on how they can work together with the agent in buying or selling a home. It’ll also teach them how they can take full control of the transaction.
Kathleen Chiras’ comments:
• Bootcamp will help consumers get an agent that will advise them on the value of their property and the possibility of moving vs. renting or farmland or other possibilities. It’ll also help them get more information about buying and selling.
• A comparative market analysis is needed. The market determines the value of the property. If the market slows downs, consumers may adjust the expectations on the value of their home.