"Clear Cooperation" is a new National Association of Realtors® (NAR)
mandatory policy that went into affect on May 1st. It requires entry
of a listing in the MLS within one business day of publicly
marketing the listing.
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A pocket listing is one which a brokerage keeps within the company and doesn't put on MLS to share with the rest of the real estate community and the vast network of public marketing sources. This kind of listing may be appealing to a particular kind of Seller (such as someone in the public eye - politician, professional athlete, or other high-profile individual, or perhaps someone in a divorce situation). For those wanting to keep their listing information private, brokerages may take it as a "firm exclusive" company listing. Sellers who choose to keep their listing private, must sign a certification indicating that the seller, the
listing brokerage, or any other entity cannot publicly market the
listing in any way. The decision to go with a "firm exclusive" listing is one that must be
considered carefully by a seller, as it greatly limits the number of
buyers who will know that the property is for sale.
According to CANOPY MLS:
As noted above, third party vendors (such as home stagers and photographers) and home owners are also prohibited from including anything about the listing at their websites or on social media. Once a property has been publicly advertised by anyone, it must be placed in MLS within 1 business day.
The great advantage to MLS is that the property gets maximum exposure. The more people who see the listing, the greater the chances for showings and a sale.
If there is concern about having people come through a home during the COVID-19 pandemic, sellers can request only virtual showings or the listing agent can make arrangements for showings to follow strict CDC guidelines for social distancing, wearing of masks, removal of (or covering) shoes, and use of disinfectant wipes on all touched surfaces.
This year, Memorial Day weekend has a different feel than in the past, as we find ourselves living our lives quite differently from the norm, due to the COVID-19 pandemic. For many this Memorial Day weekend will be spent at home with no plans to party with family and friends. Others may be venturing out, hopefully following strict protocols for social distancing. However you are spending this weekend, I hope you will take time to reflect on the real meaning of Memorial Day and to honor the memory of those who made the ultimate sacrifice to protect the freedoms we cherish.
MEMORIAL DAY LINKS:
Article Courtesy of Keeping Current Matters/The KCM Blog
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, speak with a real estate professional to discuss your
options.
Article Courtesy of Keeping Current Matters/The KCM Blog
With the release of the latest Economic Pulse Flash Survey from the National Association of Realtors (NAR), results show that people selling their houses today are holding strong on price.
According to the most recent data, 74% of real estate agents noted that
sellers are not dropping listing prices to attract more buyers.
Lawrence Yun, Chief Economist at NAR, noted:
“The housing market faced an inventory shortage
before the pandemic. Given that there are even fewer new listings during
the pandemic, home sellers are taking a calm approach and appear
unwilling to lower prices to attract buyers during the temporary
disruptions to the economy.”
This inventory
shortage, which spread widely throughout the housing market going into
today’s economic slowdown, created an environment where there were not
enough homes for sale for those who wanted to buy them. With that
backdrop setting the stage, Yun also notes:
“With the current quarantine recommendations in place, fewer sellers are listing homes, which will limit buyer choices.”
So, with buyer choices already limited going into this season, and
more sellers removing listings today, if you’ve been thinking about
listing your house, it’s a great time to do so. Many others in your
neighborhood may be waiting to make a move or removing their listings,
so staying on the market – or jumping into it – could work to your advantage.
Buyers today are serious ones, and with prices holding steady in this
low-inventory market, you can feel confident about selling today.
Embracing the process virtually,
where available, could help your house hit the top of an eager buyer’s
list. While your neighbors miss out on this opportunistic time, you
don’t have to.
Bottom Line
If buyer choices are limited in your neighborhood, selling now may
help your listing rise to the top of the pool. Reach out to a local real
estate professional today to make sure you have the expert help you
need to succeed in the selling process.
Article Courtesy of Keeping Current Matters/The KCM Blog
Today, many people are asking themselves if they should buy or sell a
home in 2020. Some have shifted their plans or put them on hold over
the past couple of months, and understandably so. Everyone seems to be
wondering if the market is going to change and when the economy will turn around. If you’re trying to figure out what’s going to happen and how to play your cards this year, you’re not alone.
This spring in the 2020 NAR Flash Survey: Economic Pulse, the National Association of Realtors (NAR)
has been tracking the behavior changes of homebuyers and sellers. In a
reaction to their most recent survey, Lawrence Yun, Chief Economist at NAR, noted the beginnings of a turn in the market:
“After a pause, home sellers are gearing up to list
their properties with the reopening of the economy…Plenty of buyers also
appear ready to take advantage of record-low mortgage rates and the
stability that comes with these locked-in monthly payments into future
years.”
What does the survey indicate about sellers?
Sellers are positioning themselves to make moves this year. More than
3 in 4 potential sellers are preparing to sell their homes once
stay-at-home orders are lifted and they feel more confident, which means
more homes will start to be available for interested buyers.
Just this week, Zillow also reported an uptick in listings, which is great news for the health of the market:
“The number of new for-sale listings overall has
shown improvement, up 5.9% last week from the previous week. New
listings of the most-expensive homes…are now seeing the biggest
resurgence, up 8%. The uptick is likely a sign sellers are feeling more
confident because of improving buyer demand, as newly pending sales have
also jumped up during the same period.”
What does the survey note about buyers?
The recent pandemic has clearly impacted buyer preferences, showing:
- 5% of the respondents said buyers are shifting their focus from urban to suburban areas.
- 1 in 8 Realtors report changes in desired home features, with home
offices, bigger yards, and more space for their families becoming
increasingly important.
- Only 17% said buyers stopped looking due to concerns about their employment or loss of a job.
As we’ve mentioned before, buyer demand
is strong right now, and many are simply waiting for more inventory to
become available so they can make a move, especially as the country
begins to reopen.
Bottom Line
If you’re thinking about putting your house on the market, contact a
local real estate professional today. There’s a good chance an eager
buyer is looking for a home just like yours.
While I've personally been blessed with being able to stay at home in a wonderful neighborhood, in a beautiful community, I cannot begin to imagine how difficult it must be for families to be confined to small spaces during this corona virus pandemic. My heart goes out to those who are enduring the unimaginable hardships that have been placed on everyone, but, especially on those who live in small homes or apartments and have been unable to leave due to the restrictions of stay-at-home orders. Never did any of us ever think that we'd be facing such circumstances. The astounding number of those experiencing the devastating illness and deaths is beyond comprehension. Our gratitude to the first responders and the dedicated hospital personnel who face the wrath of this pandemic 24/7 with utmost professionalism, compassion, and grace. As we begin to see a slight easing of restrictions in many areas, we can only hope that life will soon return to some form of normalcy. As we slowly move forward, we must rely on each other to follow appropriate safety protocol to keep all of us safe.
While everyone has a different comfort level for going out in public, I hope that everyone will maintain a standard of safety for themselves, their families, their friends, and our community. Follow protocol for social distancing, washing hands, wearing a mask, and disinfecting touched surfaces. I, personally, do so whenever I go to a public place or when showing property. Let's continue to do all we can to be safe and slow the spread of COVID-19.
Article Courtesy of Keeping Current Matters/The KCM Blog
With the housing market staggered to some degree by the health crisis
the country is currently facing, some potential purchasers are
questioning whether home values will be impacted. The price of any item
is determined by supply as well as the market’s demand for that item.
Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between
seller traffic (supply) and buyer traffic (demand) during this pandemic.
Buyer Demand
The map below was created after asking the question: “How would you rate buyer traffic in your area?”
The darker the blue, the stronger the demand for homes is in that
area. The survey shows that in 34 of the 50 U.S. states, buyer demand is
now ‘strong’ and 16 of the 50 states have a ‘stable’ demand.
Seller Supply
The index also asks: “How would you rate seller traffic in your area?”
As the map above indicates, 46 states and Washington, D.C. reported
‘weak’ seller traffic, 3 states reported ‘stable’ seller traffic, and 1
state reported ‘strong’ seller traffic. This means there are far fewer
homes on the market than what is needed to satisfy the needs of buyers
looking for homes right now.
With demand still stronger than supply, home values should not depreciate.
What are the experts saying?
Here are the thoughts of three industry experts on the subject:
Ivy Zelman:
“We note that inventory as a percent of households
sits at the lowest level ever, something we believe will limit the
overall degree of home price pressure through the year.”
Mark Fleming, Chief Economist, First American:
“Housing supply remains at historically low levels,
so house price growth is likely to slow, but it’s not likely to go
negative.”
Freddie Mac:
“Two forces prevent a collapse in house prices.
First, as we indicated in our earlier research report, U.S. housing
markets face a large supply deficit. Second, population growth and pent
up household formations provide a tailwind to housing demand.”
Bottom Line
Looking at these maps and listening to the experts, it seems that
prices will remain stable throughout 2020. If you’re thinking about
listing your home, connect with a local real estate professional who can
help you capitalize on the somewhat surprising demand in the market
now.
