Why Use a Realtor? • August 27, 2024

What’s the Impact of Presidential Elections on the Housing Market?

by Steve Vavrek

It’s no surprise that the upcoming Presidential election might have you speculating about what’s ahead. And those unanswered thoughts can quickly spiral, causing fear and uncertainty to swirl through your mind. So, if you’ve been considering buying or selling a home this year, you’re probably curious about what the election might mean for the housing market – and if it’s still a good time to make your move.

Here’s the good news that may surprise you: typically, Presidential elections have only had a small, temporary impact on the housing market. But your questions are definitely worth answering, so you don’t have to pause your plans in the meantime.

Here’s a look at decades of data that shows exactly what’s happened to home sales, prices, and mortgage rates in previous Presidential election cycles, so you can move forward with the facts as you weigh the pros and cons of your homeownership decision.

Home Sales

In the month leading up to a Presidential election, from October to November, there’s typically a slight slowdown in home sales (see graph below):

Some consumers will simply wait it out before they make their purchase decision. However, it’s important to know this slowdown is small and temporary.

Historically, home sales bounce right back and continue to rise the following year.

In fact, data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) shows after 9 of the last 11 Presidential elections, home sales went up the year after the election, and it’s been happening consistently since the early 1990s (see chart below):

Home Prices

You may also be wondering about home prices. Do prices come down during election years? Not typically. As residential appraiser and housing analyst Ryan Lundquist notes:

“An election year doesn’t alter the price trend that is already happening in the market.”

Home prices generally rise over time, regardless of an election cycle. So, based on what history shows, you can expect the current pricing trend in your local market to likely continue, barring any unusual market or economic circumstances.

The latest data from NAR reveals that after 7 of the last 8 Presidential elections, home prices increased the following year (see chart below):

The one outlier was from 2008 to 2009, which was during the height of the housing market crash. That was certainly not a typical year. Today’s market, however, is much more resilient. And while prices are moderating nationally, they aren’t on an overall decline.

Mortgage Rates

And the third thing that’s likely on your mind is mortgage rates, since they impact your monthly payment if you’re financing a home. Looking at the last 11 Presidential election years, data from Freddie Mac shows mortgage rates decreased from July to November in 8 of them (see chart below):

And this year, we’ve already started to see that happen. Most experts also forecast mortgage rates will ease slightly throughout the rest of 2024. If that happens – and all signs right now indicate it should – this year will continue to follow the trend of declining rates. So, if you’re looking to buy a home in the coming months, this could be great news for your purchasing power.

What This Means for You

What’s the big takeaway? While Presidential elections do have some impact on the housing market, the effects are usually minimal. As Lisa Sturtevant, Chief Economist at Bright MLS, says:

“Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”

For most buyers and sellers, elections don’t have a major impact on their plans.

Bottom Line

While it’s natural to feel a bit uncertain during an election year, history shows the housing market remains strong and resilient. And this means you don’t have to pause your plans in the meantime. For help navigating the market during this election cycle, reach out to me to listen to your questions and work with you for the best options and results for you and your family.

Why Use a Realtor? • August 26, 2024

Going Solo vs. Hiring a Real Estate Agent: What You Should Know

by Steve Vavrek

Do you have to use a real estate agent when buying or selling a home?

The answer, of course, is no. You can absolutely go it alone, and there are people who opt to do so every year.

After all, with the internet at your fingertips, you can search for homes, look up property values, and even negotiate deals on your own.

Yet, even with all that info, 89% of people choose to work with a professional, according to a report from the National Association of Realtors.

There’s been a lot of attention on real estate industry changes lately. But today, I want to go back to the basics and discuss the difference between a buyer’s agent and a seller’s agent—and what each can do for you during your real estate transaction.

Buyer’s Agents

Sites like Zillow can help you find your dream home by browsing listings online, and they even alert you to open house schedules. These sites can also connect you with a local real estate professional if you are not already working with one.

A buyer’s agent goes beyond the vast amount of information online and acts as your personal guide throughout the entire home buying process. Think of them as your real estate advocate, someone who is entirely focused on your needs and interests.

Realtor.com compiled 111 things buyer’s agents do throughout the real estate transaction, but here, we’ll just focus on some of the key elements of their work:

Finding the Perfect Home

Like I noted above, you can search for homes online, but can you really spot the difference between a house that’s priced to sell and one that’s hiding a laundry list of issues?

According to the 2023 Profile of Home Buyers and Sellers, 89% of buyers used an agent to purchase their home, with 50% citing that the most valuable service was helping them find the right property. Your agent will use their knowledge of the local market to help you find properties that match your criteria. They’ll schedule showings, provide insights, and help you weigh the pros and cons of each home.

Negotiating Price and Terms

You might think you can haggle your way to a better deal, but without an agent, you’re missing out on the subtle art of negotiation. Keep in mind that negotiations can happen at different points throughout the transaction, such as getting an offer accepted and after inspection and appraisals are complete.

The NAR report highlights that agents are essential in negotiating better contract terms and handling the complexities of the sale. A good buyer’s agent knows how to sweeten the deal in ways you might not even consider—like securing repairs or getting the seller to cover closing costs.

Navigating Paperwork

The paperwork involved in buying a home can be a maze of legalese. This can be overwhelming for many. That’s why 90% of buyers found their agent to be a useful information source throughout the process, ensuring every “i” is dotted and every “t” is crossed.

Seller’s Agents

On the other side of the deal, a seller’s agent (also known as a listing agent) is dedicated to helping homeowners sell their property quickly and at the best price possible. They’re the ones who market your home, negotiate with buyers and handle the logistics of the sale.

Let’s take a look at some of the key responsibilities of a listing agent.

Pricing the Home Correctly

Pricing your home is part data and part art. Get it wrong, and you could scare off buyers or leave money on the table. The right price attracts serious buyers and maximizes your profit.

Over the past few years, properties were flying off the market in a matter of days. Yet, even then, for sale by owner (FSBO) homes sold for significantly less than agent-assisted homes. In 2022, FSBOs sold for a median price of $310,000 compared to a median price $405,000 of agent-assisted homes, according to NAR.

Seller’s agents use data, experience, and market insight to price your home strategically—something an online calculator just can’t replicate.

Marketing the Property

A seller’s agent will create a comprehensive marketing plan to showcase your home to attract serious buyers, not just window shoppers. This includes professional photos, videos, an online social plan, open houses, and sometimes even staging the home to make it more appealing to buyers.

Interested in learning about our marketing plan? Let’s talk today.

Handling Offers and Negotiations

Without an agent, you’re the one fielding offers, counter-offers, and everything in between. It sounds empowering until you’re faced with a buyer who’s playing hardball. That’s why 87% of sellers said they would definitely or probably recommend their agent for future services. A seller’s agent handles the back-and-forth, ensuring you don’t cave under pressure or get taken for a ride.

In addition, they manage the entire sale process beyond getting an offer accepted—from coordination of inspectors and appraisers to getting to the closing table on time.

Final Thoughts

It’s tempting to think you can save money on commissions without an agent. But when buying or selling a property, the stakes are high. A skilled real estate agent isn’t just another expense; they bring a level of expertise and market knowledge that can save you time, stress, and money.

And that’s an investment that can make all the difference.

Contact me for more information. Thank you

Use a Realtor • August 21, 2024

The Number One Mistake Sellers Are Making: Overpricing Their House

by Steve Vavrek

In today’s housing market, many sellers are making a critical mistake: overpricing their houses. This common error can lead to a home sitting on the market for a long time without any offers. And when that happens, the homeowner may have to drop their asking price to try to re-ignite buyer interest.

Data from Realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):

If you’re thinking about making a move yourself, here’s what you need to know. The best way to avoid making a costly mistake is to work with me as your trusted real estate agent to find the right price. Here’s a look at what’s at stake if you don’t.

Not Paying Attention To Current Market Conditions

Understanding current market conditions is key to accurate pricing. You don’t want to set your asking price based on what happened during the pandemic. The market has moderated a lot since then, so it’s far better to align your price with today’s reality.

We as Real estate agents stay updated on market trends and how they impact the pricing strategy for your house.

Pricing It Based on What You Want To Make (Not What It’s Worth)

Another misstep is pricing it based on what you want to make on the sale, and not necessarily current market value. You may see other homes in your neighborhood selling for top dollar and assume yours can do the same. But you may not be considering differences in size, condition, and features. For example, maybe that other house is waterfront or has a finished basement. To sum it up, Bankrate explains:

“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.”

As a realtor we will do a comparative market analysis (CMA) to make sure your house is compared with truly similar properties to get an accurate look at how it should be priced.

Pricing High to Leave Room for Negotiation

Another common, yet misguided strategy is to price your house high on purpose, so you have more room to negotiate down during the sale. But this can backfire. A price that seems too high often deters potential buyers from even considering the home. So rather than leaving room for negotiation, what you’ll actually be doing is turning buyers away. U.S. News Real Estate explains:

“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you’ve overpriced your home, chances are you’ll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”

We will help you set a fair price that attracts buyers and encourages more competitive offers.

Bottom Line

Overpricing your home can have serious consequences. A knowledgeable real estate agent brings an objective perspective, in-depth market knowledge, and a strategic approach to pricing.

Connect with me as your trusted Realtor to avoid making a pricing mistake that’ll cost you.

Mortgage News • August 19, 2024

How Mortgage Rate Changes Impact Your Homebuying Power

by Steve Vavrek

If you’re thinking about buying or selling a home, you’ve probably got mortgage rates on your mind. That’s because you’ve likely heard that mortgage rates impact how much you can afford in your monthly mortgage payment, and you want to factor that into your planning. Here’s what you need to know.

What’s Happening with Mortgage Rates?

Mortgage rates have been trending down recently. While that’s good news for your homebuying plans, it’s important to know that rates can be unpredictable because they’re affected by many factors.

Things like the economy, job market, inflation, and decisions made by the Federal Reserve all play a part. So, even as rates go down, they can still bounce around a bit based on new economic data. As Odeta Kushi, Deputy Chief Economist at First American, says:

“The ongoing deceleration in inflation, coupled with the Federal Reserve’s recent indication of potential rate cuts [in 2024], suggests an environment supportive of modest declines in mortgage rates. Barring any unforeseen circumstances and resurgence in inflation, lower mortgage rates could be on the horizon, but the journey towards them might be slow and bumpy.”

How Do These Changes Affect You?

When mortgage rates change, it affects how much you pay each month for your home loan. Even a small rate change can make a big difference to your monthly bill.

Take a look at the chart below to see how different mortgage rates impact your house payment each month for various loan amounts. Imagine you can afford a monthly payment of $2,600 for your home loan. The green part in the chart shows payments in that range or lower based on varying mortgage rates (see chart below):

Understanding how mortgage rates impact your payment helps you make better decisions.

How Can You Keep Track of the Latest on Rates?

Real estate agents have the expertise to help you understand what’s happening and what it means for you. They can provide tools and visuals, like the chart above, to show how rate changes impact your buying power.

You don’t need to be a mortgage expert; you just need professionals by your side. People who can help you make sense of the market and guide you through your homebuying or selling journey.

Bottom Line

If you have questions about the housing market, reach out to me. I can help you understand what’s going on and how to navigate it.

Why Use a Realtor? • August 16, 2024

Some reasons why working with a realtor is often a better choice

by Steve Vavrek

Selling your property on your own, often referred to as “For Sale By Owner” (FSBO), might seem like a way to save money on realtor commissions, but it comes with significant challenges. Here are some reasons why working with a BHGRE realtor is often a better choice than selling your property yourself:

1. Expert Pricing Strategy

Accurate Valuation: BHGRE Realtors have access to comprehensive market data and tools to accurately price your home. Overpricing can result in your home sitting on the market too long, while underpricing could mean leaving money on the table.
Market Insight: BHGRE Realtors understand local market trends and can set a competitive price that attracts buyers quickly.

2. Marketing Power

Wider Exposure: BHGRE Realtors have access to the Multiple Listing Service (MLS), which ensures your property is visible to a large pool of potential buyers and other real estate agents.
Professional Marketing: We use professional photography, virtual tours, staging, and marketing strategies to present your home in the best light, attracting more serious buyers.

3. Negotiation Skills

Professional Negotiators: BHGRE Realtors are trained to negotiate and can often secure a higher sale price for your property. They handle offers, counteroffers, and contingencies with the expertise to protect your interests.
Objective Mediation: We provide an objective perspective during negotiations, helping you avoid emotional decisions that could affect the sale.

4. Time and Convenience

Managing the Process: Selling a home requires coordinating showings, open houses, inspections, and appraisals. Realtors handle these tasks, saving you time and effort.
Qualifying Buyers: BHGRE Realtors pre-screen potential buyers to ensure they are serious and financially capable, reducing the chances of a deal falling through.

5. Handling Paperwork

Complex Documentation: Real estate transactions involve extensive paperwork, including contracts, disclosures, and legal documents. BHGRE Realtors ensure that all paperwork is completed accurately and on time, reducing the risk of errors that could delay or derail the sale.
Legal Compliance: We are knowledgeable about all of the new real estate laws and regulations, ensuring your transaction complies with all local, state, and federal requirements.

6. Avoiding Pitfalls

Experience with Challenges: BHGRE Realtors have experience dealing with common issues that arise during the sale process, such as home inspections, appraisals, and buyer financing problems. They can quickly address these issues to keep the sale on track.
Less Risk: Without a BHGRE realtor, you might miss critical steps or overlook important details that could lead to legal or financial problems later on.

7. Maximizing Profit

Higher Sale Price: Studies show that homes sold by realtors often achieve higher sale prices than those sold by owners. The additional exposure, professional marketing, and negotiation skills can result in a better overall outcome, even after accounting for the realtor’s commission.
Avoiding Hidden Costs: DIY sellers may not realize the costs involved in marketing, staging, legal fees, and other expenses that a realtor would typically handle or advise on.

8. Emotional Detachment

Objective Advice: Selling your home can be emotional, especially if you’ve lived there for a long time. A BHGRE realtor provides an objective perspective, helping you make decisions based on market data rather than emotions.
Buffer Between Parties: BHGRE Realtors act as a buffer between you and the buyer, which can help in maintaining a professional and smooth transaction.

9. Peace of Mind

Professional Guidance: Knowing that an expert is managing the sale reduces stress and ensures that you’re not missing any crucial steps in the process.
Trust and Security: BHGRE Realtors provide a layer of security, ensuring that potential buyers are serious and that your interests are protected throughout the transaction.

In summary, while selling your property yourself might seem appealing to save on commissions, the expertise, resources, and services provided by me as a BHGRE realtor can often lead to a quicker sale at a higher price, with less stress and fewer risks involved.

Credit Score Help • August 15, 2024

What Credit Score Do You Really Need To Buy a House?

by Steve Vavrek

When you’re thinking about buying a home, your credit score is one of the biggest pieces of the puzzle. Think of it like your financial report card that lenders look at when trying to figure out if you qualify, and which home loan will work best for you. As the Mortgage Report says:

“Good credit scores communicate to lenders that you have a track record for properly managing your debts. For this reason, the higher your score, the better your chances of qualifying for a mortgage.”

The trouble is most buyers overestimate the minimum credit score they need to buy a home. According to a report from Fannie Mae, only 32% of consumers have a good idea of what lenders require. That means nearly 2 out of every 3 people don’t.

So, here’s a general ballpark to give you a rough idea. Experian says:

“The minimum credit score needed to buy a house can range from 500 to 700, but will ultimately depend on the type of mortgage loan you’re applying for and your lender. Most lenders require a minimum credit score of 620 to buy a house with a conventional mortgage.”

Basically, it varies. So, even if your credit isn’t perfect, there are still options out there. FICO explains:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders, and there are many additional factors that lenders may use . . .”

And if your credit score needs a little TLC, don’t worry—Experian says there are some easy steps you can take to give it a boost, including:

1. Pay Your Bills on Time

Lenders want to see that you can reliably pay your bills on time. This includes everything from credit cards to utilities and cell phone bills. Consistent, on-time payments show you’re a responsible borrower.

2. Pay Off Outstanding Debt

Paying down what you owe can help lower your overall debt and make you less of a risk to lenders. Plus, it improves your credit utilization ratio (how much credit you’re using compared to your total limit). A lower ratio means you’re more reliable to lenders.

3. Don’t Apply for Too Much Credit

While it might be tempting to open more credit cards to build your score, it’s best to hold off. Too many new credit applications can lead to hard inquiries on your report, which can temporarily lower your score.

Bottom Line

Your credit score is crucial when buying a home. Even if your score isn’t perfect, there are still pathways to homeownership. Let’s connect if you want to go over your options with an expert.

Use a Realtor • August 5, 2024

What Every Homeowner Should Know About Their Equity

by Steve Vavrek

Curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. And since home prices rose so much over the past few years, most people have much more equity than they may realize.

Here’s a deeper look at what you need to know if you’re ready to cash in on your investment and put your equity toward your next home.

Home Equity: What Is It and How Much Do You Have?

Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.

Recent data from the Census and ATTOM shows Americans have significant equity right now. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart) or have at least 50% equity in their homes (shown in blue in the chart):

Today, more homeowners are getting a larger return on their homeownership investments when they sell. And if you have that much equity, it can be a powerful force to fuel your next move.

What You Should Do Next

If you’re thinking about selling your house, it’s important to know how much equity you have, as well as what that means for your home sale and your potential earnings. The best way to get a clear picture is to work with your agent, while also talking to a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward.

Bottom Line

Home prices have gone up, which means your equity probably has too. Connect with me so you can find out how much equity you have in your home and move forward confidently when you sell.

If Selling - Tips • July 29, 2024

Boost your home’s value without undergoing a major renovation

by Steve Vavrek

Here are several effective ways to boost your home’s value without undergoing a major renovation:

1. Enhance Curb Appeal

Landscaping: Trim bushes, plant flowers, and maintain the lawn.
Paint the Front Door: A fresh coat of paint in a welcoming color can make a big difference.
Outdoor Lighting: Install or update lighting fixtures to highlight pathways and architectural features.

2. Upgrade the Kitchen

Cabinet Hardware: Replace old knobs and handles with modern ones.
Faucet: Install a stylish, new faucet.
Lighting: Update or add lighting, such as under-cabinet lights or a new pendant light over the island.

3. Bathroom Improvements

Fixtures: Replace faucets, showerheads, and towel racks.
Caulking: Re-caulk the bathtub and sink areas.
Mirrors and Lighting: Install a new mirror and modern lighting fixtures.

4. Interior Paint

Neutral Colors: Fresh paint in neutral tones can make rooms look larger and more inviting.

5. Flooring

Deep Clean Carpets: Professionally clean carpets to make them look new.
Hardwood Maintenance: Refinish hardwood floors or use area rugs to hide worn spots.

6. Energy Efficiency

Insulation: Add insulation to attics or crawl spaces.
Smart Thermostat: Install a smart thermostat to attract tech-savvy buyers.
Weatherstripping: Apply weatherstripping to doors and windows to improve energy efficiency.

7. Lighting

LED Bulbs: Replace old bulbs with energy-efficient LED lights.
Dimmer Switches: Install dimmer switches to control lighting levels.

8. Declutter and Depersonalize

Storage Solutions: Add shelves or storage units to keep spaces tidy.
Remove Personal Items: Make it easier for potential buyers to envision themselves in the space.

9. Modernize Fixtures

Switch Plates and Outlets: Replace old switch plates and outlets with modern ones.
Ceiling Fans: Update ceiling fans to more modern designs.

10. Deep Cleaning

Professional Cleaning: Hire a professional service to clean carpets, windows, and every nook and cranny.

11. Staging

Furniture Arrangement: Rearrange furniture to highlight the best features of each room.
Decor: Use simple, modern decor to appeal to a wide range of tastes.

These improvements can make your home more attractive to buyers and can often be done at a fraction of the cost and time of a full renovation.

Uncategorized • July 22, 2024

Are you ready to Buy a Home?

by Steve Vavrek

Finding and purchasing a home is a detailed process that demands time and dedication. I am
passionate about my work because it leads to the ultimate reward – handing you the keys to your dream
home. I am happy to talk through the several types of buyer representation I offer so we can find the one that
works best for you. [only use if exclusive buyer agency is authorized in your market] Exclusive Buyer
Representation is my preferred method of representing you. With an exclusive commitment, I can
dedicate substantial time and energy to helping you find and purchase a home. You become my highest
priority. But understand that I am willing to be retained to represent you on a nonexclusive basis. Either
way you retain me we do need to discuss how I will be paid for my services.

First, the brokerage itself and I personally are paid on a commission basis. That means that I only get paid if I
help you find a home you want to purchase, and the purchase happens. Unless and until that happens, no
payment is due. Even though I may not be paid, I will do a substantial amount of work trying to make your
home buying process a success. That starts with looking at properties to find one that is right for you. As
your agent, I will search listings and preview homes on my own to make sure I help you find that home.
Beyond that I will explain the home buying process, help you develop your goals, set expectations,
arrange a pre-approval with a lender, negotiate the purchase price, coordinate inspections, help
coordinate title insurance and other closing services, and manage a myriad of other details needed to
close the home efficiently and seamlessly.

Second, there are several ways in which I can be paid for my services. These include: a) the seller of the
property you are interested in has offered to pay a commission to the buyer’s broker; b) the seller has
not offered to pay a commission to the buyer’s broker, but we include that requirement as part of the offer you
make on the property; or c) the seller will not agree to pay a buyer’s broker commission, in which case you
would be responsible for paying me. Please note that my payment amount is not set by law and is
fully negotiable. The payment terms are in the buyer representation agreement that you would sign when I am
retained.

As your broker, we can help you to make informed and educated decisions. For example, we will prepare a
comparative market analysis to help you assess the market value of any particular property in which you are
interested. That market analysis will also help us negotiate the purchase price and terms most favorable
to you. As your broker we can recommend other professionals you may need for the home purchase
such as home inspectors, lenders, attorneys, insurance providers, movers, painters, and other local
support. Having a dedicated professional to advocate for you throughout the homebuying process is
a very worthwhile investment for you as you make one of the biggest purchases in life.

© 2024 Better Homes and Gardens Real Estate LLC. All rights reserved. Better Homes and Gardens®, BHGRE® and the Better Homes and Gardens Real Estate Logo are registered service marks owned by
Meredith Operations Corporation and licensed to Better Homes and Gardens Real Estate LLC. Better Homes and Gardens Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal
Opportunity Act. Each franchise is independently owned and operated.

Uncategorized • July 22, 2024

WHY OFFERS OF COMPENSATION FOR BUYERS AGENTS ARE GOOD FOR SELLERS

by Steve Vavrek

Whether to offer compensation to a buyer’s broker, and the amount of compensation you may decide to offer, is purely your
choice. You are not required by law to offer such compensation, and all compensation is fully negotiable. However, so that you
can make an informed decision, and to help you understand why we recommend that you make such an offer, we wanted to
share why we believe there are significant benefits to doing so.

Stated simply, the most significant benefit of offering compensation to a buyer’s broker is to help make your property attractive
to the widest possible pool of potential buyers. We believe there likely will be a reduced number of potential buyers who are
interested in looking at a property that does not offer buyer agent compensation for several reasons.

First, some buyers may not have the cash to pay their own real estate agent out of pocket. Often buyers need their cash for the
down payment and other expenses. Generally, buyers cannot finance a brokerage commission through a mortgage. So, buyers
without the necessary cash will not have the option of borrowing the money to pay for their own agent. Those buyers may be
unwilling to consider your property if it’s important for them to have an agent representing them.

Second, in our experience, the seller benefits from the buyer having an agent because the sales and closing process goes
much better. Without an agent representing the buyer, the buyer may not be able to navigate the complexities of making an
offer, negotiating the sales price and other terms, understanding how to address issues that may arise in a home inspection,
obtaining financing, paying real estate transfer taxes (in those states where it is split between seller and buyer), and so on. As a
result, the closing process can take longer, and other complications can arise that are less likely to occur if the buyer is
represented by a professional real estate agent. Delays in the process can cost you in several ways– greater carrying costs,
disruption of the process if you need the closing funds for a new home you are purchasing, or delays or losses incurred if a
home needs to be relisted.

My recommendation is that it is a smart financial decision to make your property attractive to the largest number of potential
buyers possible. Experience has shown that this is a good way to create demand, and potentially competitive bidding for your
home– with the goal of generating the highest demand, fastest sale, and potentially the best price for your home.

WILL OFFERING COMPENSATION TO BUYERS AGENTS MAKE MY HOME MORE ATTRACTIVE TO BUYERS?
We think so. Buyers often have significant costs they must pay during the home buying process, such as homeowner’s
insurance, pro-rated property taxes, movers, contractors, down payment, costs charged by lenders and title companies, home
inspection and appraisal costs, and attorney’s fees. Your home will be competing against some (likely many) homes that will
pay the buyer broker’s compensation, which could make those houses more attractive to a buyer because it will mean less
money out-of-pocket for the buyer at closing. Consider how much longer it might take to find a qualified buyer or how much
less you might get in the sale of your home if buyers found it less attractive.

BUYERS AGENTS OFFER A MORE PROFESSIONAL TRANSACTION EXPERIENCE FOR ALL
Another significant benefit of offering compensation to the buyer’s agent is that it generally increases the chances that the
buyer is represented by a licensed professional who will manage their side of the transaction. Explaining the home buying
process, setting expectations, arranging a pre-approval with a lender, showing homes, negotiating on the purchase,
coordinating inspections, helping to coordinate title insurance, and closing services, and managing the myriad of details needed
to close a home efficiently and seamlessly. An unrepresented buyer may not be able to work through these issues.
So, you get a signed purchase agreement…great. Then something happens that the buyer is not prepared to deal with. The
sale either falls through or takes much longer to close. Our goal is to make sure that your transaction goes from contract to
close and manage the process throughout. A buyer’s agent also facilitates completion of the transaction because they are there
to advise the buyer how to work through these issues.