Published September 19, 2024
Buying a home can be a daunting process, particularly for those with less-than-ideal credit. While traditional lending systems tend to favor buyers with strong credit histories, prospective homebuyers with bad credit are not without options. Realtors who specialize in working with bad credit borrowers can be instrumental in helping navigate the complexities of purchasing a home under these circumstances. These realtors offer not only ex
Published September 19, 2024
In the real estate industry, the roles of professionals such as realtors and appraisers can sometimes blur in the eyes of the general public. While both are integral to the real estate transaction process, their functions and qualifications are distinct. The question, "Can realtors do appraisals?" often arises when buyers and sellers want to understand the nuances of property valuation and who holds the authority to provide an official
Published September 16, 2024
In July 2024, significant changes to the way real estate commissions are paid took effect, altering the multi-decade tradition of sellers bearing the responsibility of paying both their agent and the buyer’s agent. These changes are the result of a class-action lawsuit against the National Association of Realtors (NAR) and several major brokerage firms, which led to a $1.8 billion verdict against the industry. The lawsuit found that NAR
Published June 5, 2024
Homebuyers willing to face today’s high mortgage rates might find solace in the increasing number of homes available on the market. According to the latest monthly housing report from Realtor.com®, May marks the seventh consecutive month of growth in the overall number of homes for sale.
Published May 9, 2024
Despite facing the highest mortgage rates seen in two decades, the U.S. housing market exhibits robust price growth across the overwhelming majority of metropolitan areas. In a recent assessment by the National Association of Realtors (NAR), it was reported that in the first quarter of this year, home prices increased in an overwhelming 93% of the 221 analyzed markets. This trend und
Published May 6, 2024
As the global economy navigates a precarious juncture, marked by the possibility of stagflation—a malignant blend of stagnant economic growth and persistent inflation—the housing market stands at the forefront of potential upheaval. Renowned economist Mohamed El-Erian has recently highlighted concerns that the U.S. may be unable to skirt a looming recession, a scenario that spells trouble particularly for those in the me
Published November 27, 2023
If you have been tasked with finding a competent and skilled real estate agent, choosing an agent based on their actual performance is the best way to ensure you have a successful transaction. At EffectiveAgents.com, we understand the significance of this approach and advocate for a methodical, data-driven selection process. The following questions are designed to shed light on an agent's actual performance, revealing their expertise and efficiency in the local market. You shoul
Published November 6, 2023
When and How to Cancel Your Listing Agreement: A Seller's Guide Entering into a listing agreement with a real estate agent is a significant step that requires a tremendous amount of trust. If you'recontemplating cancellation one of two things has probably happened; you didn't do adequate due diligence on your agent's experience and skill level or they over promised and haven't delivered. This guide will take you through detailed scenarios that justify cancellation, provide a step-by
Published October 31, 2023
In a landmark ruling out of Kansas City, the National Association of Realtors, HomeServices of America, and Keller Williams have been held accountable for collaborating to inflate commission rates. The contention centered around NAR’s Clear Cooperation Rule, a rule highlighted in the Sitzer/Burnett buyer broker commission lawsuit. The implications are staggering. Damages have been set at $1.78 billion, but the defendants could face up to a colossal $5.36 billion when factoring i
Published October 31, 2023
Selling Your House Without a Realtor In today's digital age, homeowners have more tools and resources at their disposal than ever before. This has led many to consider the "For Sale By Owner" (FSBO) route. But while the allure of potential savings is strong, the journey is filled with complexities. Here's a comprehensive look at the advantages, challenges, and essential steps of selling without a realtor. Understanding the FSBO Appeal At the heart
Published October 31, 2023
The 2% Commission Pitch A variety of web-based platforms offer a 2% real estate commission, including Redfin, IdealAgent, Clever Real Estate and others. What's behind these offers, is there a catch? In the world of real estate, commission rates are often a hot topic. While the average commission hovers around 5.46%, some companies offer rates as low as 2%. But is this too good to be true
Published October 31, 2023
Navigating the Tax Maze: Selling Your Second Home Meet John and Lisa Thompson, a delightful retired couple who've spent countless summers in their cozy beachfront cottage. As they've decided to downsize, they've embarked on a journey to understand the tax implications of selling their beloved second home. Their story offers valuable insights for homeowners in similar situations. Primary Residences vs. Second Homes: The Tax Distinction John and Lisa's primary reside
Published October 31, 2023
The Impact of Pricing and the Dangers of Overpricing Pricing is the cornerstone of a successful home sale. An overpriced home can deter potential buyers from even viewing your property. It's essential to conduct a thorough comparative market analysis, considering homes of similar size, condition, and location. Remember, the longer a home stays on the market due to overpricing, the more it can be perceived as undesirable, leading to lower offers. If you have
Published October 17, 2023
The real estate industry is abuzz as the Sitzer/Burnett class action commission lawsuit, long in the making, finally enters the courtroom. This landmark case has the potential to redefine commission practices and cooperation within the industry. Central to the lawsuit is the contention that commission rates are exorbitantly high. The plaintiffs argue that it's inequitable for sellers to be
Published July 10, 2023
The clock is ticking. Every day that your home sits on the market, its appeal might slightly wane, and the initial buzz surrounding a fresh listing gradually fades. On the flip side, a quick home sale can mean a stronger negotiating position and, quite often, a better selling price. Who holds the key to this accelerated process? Your realtor®. In the high-speed, high-stakes world of real estate, having the right professional at your side can make a world of difference. EffectiveAgents.com
Published June 13, 2023
In today's real estate, there's no such thing as too much help. It's a market where prices fluctuate, trends evolve, and the competition gets fiercer by the day. Especially if you're planning to sell your home, navigating this complex maze can be intimidating. But what if there were a way to make it easier? This is where a data-driven referral website comes into play, your secret weapon and potential best friend in the home-selling journey. EffectiveAgents.com is a leading referral we
Published June 4, 2023
With the ink barely dry on the debt ceiling deal signed by President Joe Biden, Wall Street braces for impact. The imminent deluge of new US Treasury bonds, primed to replenish the nation’s coffers, is set to exert further strain on the already diminished liquidity as bank deposits are appropriated for the cause. Financial analysts warn that the markets are ill-prepared for this torrent. The aftershocks of this fiscal maneuver could surpass those of previous debt limit disputes.
Published June 4, 2023
In the grand theater of the American housing market, high mortgage rates have set a new stage, while a scarcity of home listings has drawn the curtains on many potential buyers. Yet, even as the spotlight turns onto the uncertainty of the current climate, an eager audience waits in the wings, ready to spring into action as soon as the rates decline and more homes flood the stage. Over the last four weeks, culminating on May 28, pending home sales have seen a tumble of 17% from the sam
Published June 1, 2023
Against a backdrop of volatile economic figures and indices, mortgage rates in the United States have pirouetted to a crescendo, reaching the loftiest levels seen since November. The steady climb paints an intriguing backdrop to a housing market already in the throes of flux and adaptation, altering the rhythm of real estate transactions nationwide. Over the last week, the standard 30-year fixed mortgage rate leaped from 6.57% to an arresting 6.79%. When contrasted with the same time
Published June 1, 2023
It has become increasingly challenging for prospective homebuyers to find available properties, particularly in major cities, as the housing industry grapples with a significant shortage of inventory. According to a recent report from Realtor.com, the number of homes for sale in 2023 has decreased in 21 out of the 50 largest metropolitan areas compared to the previous year. Leading the pack is San Jose, California, experiencing a staggering decline of 35% in listed homes for sale. Sac
Published June 1, 2023
What Happens if You Inherit a House With a Mortgage? In today's real estate landscape, one of the first steps many individuals take when inheriting their parents' home is to put it up for sale. While the decision about what to do with a family property often involves both emotional and financial considerations, the escalating costs of renovations, property taxes, and utilities are making it increasingly challenging for adult children to hold onto inherited real estate
Published May 22, 2023
If you're considering selling your house, now may be the perfect time to make a move. The current housing market is experiencing a shortage of available homes for sale, with fewer sellers listing their properties compared to previous years. Looking back at the data from every April since 2017, the only year when the number of sellers was lower than now was in April 2020, during the initial impact of the pandemic. In a typical April, around 500,000 homes are added to the market. Howeve
Published May 22, 2023
The EffectiveAgents® team took a hard look at average Realtor® commission rates so far in 2023 to determine how much the average real estate agent receives in gross compensation for a full-service listing. With the real estate market in transition and fewer listings and sales to go around, is this impacting the comission rates that realtors® charge? Additionally, new services have emerged that offer homeowners discounted listing packages and even flat-fee arrangements that h
Published May 19, 2023
Rocket Mortgage, one of the largest non-bank mortgage lenders in the United States, has announced the launch of its innovative ONE+ program. This groundbreaking initiative aims to revolutionize the home buying experience by allowing low- to moderate-income individuals to put down as little as 1% on their dream homes. By reducing the upfront payment requirement and eliminating the need for mortgage insurance, Rocket Mortgage aims to m
Published May 19, 2023
Buying or selling a home can be a complex process filled with legalities and potential pitfalls. While a real estate agent is often the go-to professional for navigating the transaction, there's another expert who can provide invaluable guidance: a real estate attorney. What Does a Real Estate Attorney Do? A real estate attorney is a legal professional specializing in real estate law. They offer essential services to individuals and businesses involved in various real estate
Published May 19, 2023
Selling a home is a significant financial transaction, and it's natural to want to get the best possible price for your property. While you may consider selling your home on your own or working with just any real estate agent, there are distinct advantages to choosing a top-performing agent who excels in their field. These agents have a proven track record of success, possess in-depth market knowledge, and bring valuable expertise to the table. In this article, we will explore the
Published May 19, 2023
Amidst recent economic uncertainty, concerns about the stability of the housing market have been on the rise. The lingering effects of the pandemic have fueled questions about the possibility of a housing market crash. However, experts agree that while the market is experiencing shifts, a sudden and abrupt crash is very unlikely. In this article, we will delve into the current state of the housing market, analyze key indicators, and explore the factors that may contribute to a potential crash
Published May 19, 2023
The reverberations of the great pandemic mortgage refinance boom are still being felt across the housing market, making it increasingly challenging for prospective homebuyers to find affordable homes. With homeowners holding on to their ultra-low mortgage rates, housing inventory remains tight, impeding the buying process. As the coronavirus pandemic took hold in 2020 and 2021, mortgage rates plummeted, enticing millions of homeowne
Published May 19, 2023
In recent months, the pace of rent growth has significantly slowed, bringing potential benefits to both the economy and future homebuyers. This trend, where rent increases are falling behind inflation and wage growth, suggests a positive outlook for the housing market and the overall financial landscape. Construction of rental units has eased demand, resulting in minimal annual rent growth. The slowdown in rental price growth could further cool inflation in the coming months, which, i
Published May 19, 2023
Selling your home is a significant undertaking, filled with both excitement and apprehension. As you navigate the complex world of real estate, one crucial decision can make all the difference in achieving a successful sale: choosing the right real estate agent. This article will guide you through the process of selecting the perfect agent, equipping you with the tools and knowledge needed to make an informed decision. The Importance of Selecting the Right Agent A knowledgea
Published May 18, 2023
Selling your home can feel like launching your own small business - it's time-consuming, emotionally challenging, and filled with complex tasks. But there's a silver bullet to this taxing endeavor: top performing real estate agents. They're the secret sauce to getting the most out of your property, with their unparalleled expertise, industry insights, and cutting-edge marketing strategies. By working with top-tier real estate agents, you can unlock the full potential of your home's value.
Published May 18, 2023
Housing affordability is no longer a quiet local matter, as it increasingly becomes a hot topic for national political debate. This issue is reshaping the political landscape and blurring the lines of traditional alliances as policy-makers scramble to formulate effective solutions. The escalating issue of housing affordability is a concern, primarily for lawmakers who are facing the formidable task of devising solutions that can alleviate the crisis marked by soaring rents and escalat
Published May 17, 2023
Recently, navigating the complexities of the current real estate market is akin to riding a rollercoaster. One moment you're ascending, the next you're plunging downward at breakneck speed. Recent data from the housing sector reflects this reality, revealing a sharp decrease in housing starts and painting a picture of a market in flux. In fact, the number of new private housing units under construction plummeted by a staggering 22.3% from the same time last year. Despite the significant drop,
Published May 17, 2023
The U.S. housing market, a subject of fascination and speculation for many, has recently seen a significant shift in public sentiment. Only 21% of U.S. adults currently perceive it as a good time to buy a house. This statistic marks a significant decline, down nine percentage points from the previous year's low. This is noteworthy as these are the only instances where less than half of Americans have perceived the housing market as favorable for buyers since 1978. The
Published May 17, 2023
In periods of economic turbulence, investment decisions are invariably fraught with uncertainty. As consumer spending contracts, companies' profitability wanes, leading to stock market fluctuations. The question then arises: should investors pivot from individual stocks towards more tangible assets like real estate during these periods of economic unrest? Interestingly, a recent study by GoBankingRates revealed that 90% of Americans shy away from real estate investments during economi
Published May 16, 2023
As the undercurrents of unease ripple through the real estate market, there is a growing sense of a looming crisis. The financial sector has been hit by a wave of investor uncertainty, sparked by the recent collapse of a prominent Californian bank, a go-to institution for startups and numerous small businesses. The bank, known for its bold but calculated risk-taking, stumbled following a bad bet on interest rates through acquisitions of treasury and municipal bonds. This ill-timed gamble, mad
Published May 15, 2023
In a striking echo of 1982, the current economic landscape might be signaling a similar trajectory. More than four decades ago, the U.S. Treasury sold new 30-year bonds at a record average yield of 14.56 percent, reflecting the extreme hesitancy of investors to purchase long-term bonds despite diminishing inflation. A series of factors, including escalating interest rates and expanding budget deficit
Published May 15, 2023
The year 2023 marked a significant downturn for the world's luxury property markets, with the first negative turn since the global financial crisis of 2009. This unexpected shift came after a peak growth of 10.1% in the last quarter of 2021, as revealed by the latest Prime Global Cities Index (PGCI). The PGCI, which tracks prices in 46 leading prime markets globally, fell by 0.4% in the 12 months leading up to the end of March 2023. This deceleration in growth was primarily driven by
Published May 15, 2023
In the present era, a remarkable $53 trillion is shifting hands as baby boomers pass down their wealth to their descendants, marking one of the most significant generational wealth transfers in history. A significant proportion of this wealth resides in real estate, presenting both an opportunity and a challenge to boomers and their heirs alike. Estate planning and intergenerational wealth planning play pivotal roles in transferring and preserving this wealth. Real estate, in particul
Published May 15, 2023
The dream of homeownership is becoming increasingly elusive for the average American, even those earning a six-figure income. The spring 2023 housing market is being dubbed "a nobody's market," as sellers cling to their homes to maintain low interest rates while many buyers find themselves priced out. On May 4, the federal funds rate, which influences mortgage rates, rose above 5% for
Published May 15, 2023
The golden era of buying and flipping homes for swift profits appears to be receding. As per recent reports, sky-high property prices and elevated mortgage rates are leading to diminished homebuyer demand, forcing real estate investors to sell homes at a loss in certain U.S. cities. In a revealing turn of events, real estate investors incurred losses on approximately one in seven (13.5%) homes they sold in March. This is a stark contrast to the overall U.S. homes sold in the same peri
Published May 15, 2023
2023 has begun on an unsettling note as consumer debt in the United States marked a new record high, exceeding the staggering $17 trillion threshold in the first quarter. This increase occurred even as mortgage demand experienced a significant decline. In the January-to-March period, the total borrowing across all categories escalated to $17.05 trillion, a nearly $150 billion, or 0.9% increase. This rise signifies an approximate $2.9 trillion surge in total indebtedness since the peri
Published May 13, 2023
The U.S. government’s fiscal health is under scrutiny as lawmakers continue to debate the debt ceiling. Democrats advocate raising the ceiling unconditionally, while Republicans insist on accompanying it with spending cuts. Failure to reach a consensus could lead to an economic "calamity", as described by the U.S. Treasury Secretary. In this context, one might ask, how would this so-called "calamity" affect the U.S. housing market? A recent report from Zillow explores this very
Published May 13, 2023
As the calendar turned to 2023, the overall sentiment surrounding the U.S. housing market leaned towards a bearish outlook. Most forecasters anticipated a dip in national home prices, attributing this to the surge in mortgage rates. Yet, as we ventured into the first five months of the year, these predictions remained largely unfulfilled. In fact, following a seven-month consecutive decline from June to January, the seasonality adjusted Case-Shiller National Home Price Index recorded
Published May 13, 2023
As the calendar flipped to a late spring day, an enticing three-bedroom, 1924 bungalow nestled in Minneapolis stirred quite a commotion in the housing market. Listed on a Friday afternoon, it rapidly garnered attention from prospective buyers, causing a whirlwind of activity over the weekend. An overwhelming number of offers, precisely 25, flooded in, each surpassing the listing price of $320,000. The fervor culminated within 48 hours with a contract from a buyer offering well beyond the aski
Published May 13, 2023
The American housing market has witnessed a perplexing surge, turning the dream of home ownership and affordable rentals into an elusive aspiration for many. The escalation of housing costs is attributed to the mismatch of soaring demand against a constrained supply. In the Sunshine State, there was an instance where a single property attracted over 50 offers in a single week, a ten-fold jump from the usual. Even full-cash offers exceeding the list price were often outbid, reflecting
Published May 9, 2023
In recent weeks, there has been a surge in real estate fraud cases involving criminals impersonating property owners to engage with real estate agents and attempt to sell properties they have no legal ownership of. These properties are often vacant or lien-free, making them attractive targets for fraudsters. The scam has become increasingly prevalent, particularly in several California counties, prompting authorities to warn real estate professionals of this growing threat. Law enforc
Published May 9, 2023
The direction of the housing market in 2023 remains uncertain, as mortgage rates increased 15 basis points in April, and pending and existing home sales slumped in March. While the median existing-home sales price edged lower year-over-year for the second consecutive month, substantial nationwide price declines are not expected. Tight inventory continues to keep prices high, creating affordability challenges, especially for first-time homebuyers. As the spring homebuying season progre
Published May 9, 2023
As the housing market cools and interest rates continue to rise, defaults on a niche mortgage bond primarily used to fund apartment building purchases are increasing. This bond, known as collateralized loan obligations (CLOs), are mortgages packaged into bonds that are then sold to investors. CLOs played a significant role in driving housing costs in Sunbelt states like Arizona, Texas, and Nevada by facilitating the purchase of buildings with potential for increased rent. In recent ye
Published May 9, 2023
The recent legislative session in Florida has seen a number of real estate-related bills passed, which now await the governor's signature. Meanwhile, some proposals were unsuccessful, including one that aimed to allow the demolition of properties in historic districts across coastal cities. Here's an overview of the key real estate legislation that passed or failed during this session: SB 102 - Affordable Housing: Signed into law, this landmark bill incentivizes devel
