Is February the new April?

Is February the new April?

Is February the new AprilIs February the new April?  Well, in the real estate market, the short answer is YES!! 

The “Spring Market” which most people relate to the April time-frame has historically been the busiest season for buying and selling as most home sellers and home buyers come out of their winter hibernation ready to hit the streets and find their new home.  What we are seeing now, though, is a shift in the market timing due to the severe shortage of homes in the housing market.  We recently talked about the Absorption Rate and how that affects the real estate market.

Right now the housing inventory across the whole country is at records lows and with more buyers looking to jump into the real estate market now, the Spring market will likely see fewer homes for sale compared to years past.  Sellers are anxious to take advantage of the limited housing market to sell their house because they know they are going to get top dollar, except they are nervous to do so because……where will they go?  One of the biggest concerns for both sellers and buyers is that there are not a lot of homes to choose from.

Buyers are frustrated because their current leases may be coming up, maybe their landlords are selling their homes and they need to move, or possibly they are just moving to a new town and need to find a house.  That’s all well and good except their isn’t anything available for them.  Realtors used to show buyers 4 or 5 houses at a time several days a week and now they are lucky to see 1 or 2 a week.  Of those houses they are seeing, its likely that many other buyers are looking at them as well and lots of buyers are writing offers driving the prices up and in some cases, out of their budget.  Buyers are finding it necessary to “settle” on a house simply because they don’t have a choice.

Sellers alike, are frustrated because they know they can sell but after they get an offer on their home, they have to deal with the problem of now being a buyer themselves.  In some cases, sellers would just prefer to stay where they are vs jumping into the buyer market.

 

RELATED ARTICLE: Buying a home in a sellers market

 

On a positive note, if you are a seller, and can deal with waiting to find a new home or have a place to go, then this is a great opportunity for you.  Being in a sellers market gives you a huge advantage and by getting your house on the market now rather than waiting another month or two will ensure that you get the most amount of money.  Although we dont expect to see the Spring market “flooded” with inventory this year, we do expect to see a slight uptick and you know how supply and demand works

If you are a seller thinking about selling this year, its worth reaching out and talking to us about a timeline and a plan.  If you are a buyer, we can help too.  We have several ways of finding you a great home without you having to be caught up in the crazy real estate market.

Is February the new April? Well, whether it be February, March or April – the truth is Spring Market is here.  You should not wait any longer, you should Just Call The Pro’s

Get a quick home value estimate here

 

Frustrated with not finding the right home?  Ever considered just building one?  Check out some of the new construction homes for sale right now but BEFORE you run out and talk to the builder, here are a few things you need to know so you are prepared.  When Considering a New Construction Home: Should you use a Realtor®?

How to buy a home – The Process

How to buy a home

home buying stepsBuying a new home can be an exciting thing but its not as easy as it is portrayed on HGTV.  We are a full service real estate team working with buyers and sellers and we take the time to meet and have a consultation with each client so they fully understand the home buying steps.  In this series we will outline the steps to buying home to help you better understand how this works.  Contact us today to schedule a private one on one consultation.

Step 1. Find a professional real estate agent

After you have decided you want to start the process, the first thing you should do is find a professional Real Estate Agent you can Trust (preferably a REALTOR® rather than just a Real Estate Agent) (Preferably US – The Pros Real estate team)

Why is this so important? – see following 12 steps in this series.   Every real estate transaction is a unique and beautiful thing to a real estate agent. To a buyer, especially a first time buyer, it can be a stressful, overwhelming experience that just might make you run for a rental. With the right guidance your home purchase can go smooth and you can feel assured that you and your money is protected. You will feel as though you can make an educated decision based on a non-bias parties opinion of your needs vs the condition, location and valuation instead of emotion.

Most Buyers these days get to choose who they want to represent them. This means there is a sole agent looking out for your best interests. Agency describes the direction in which loyalty is given. A listing agent represents the best interest of the seller.  If you go unrepresented directly to the listing agent, keep in mind that agent is being paid by the seller to get them the highest price possible for that home and to protect the interests of their client. Some buyers think that if they go directly to a listing agent they can buy the house for a better price. This is not always true. The listing agent typically signs a contract that pays the agent a full commission they would otherwise split with a buyer agent. If there is no buyer agent, the listing agent is still paid the full commission. Going directly to the list agent does not save the seller any money on the net sales price. Yet you have no representation so you are now negotiating the sales price on your own behalf against an agent who negotiates for a living.

It cost nothing to consult with a buyer agent. Meet with one and see how you feel about this agent. Will you get along? Do you trust them to do a great job? What is their sales history? Do they have enough time to get you into property on your schedule? Are they full time agents or do they do this in their spare time?  Are they educating you on the process or trying to sell you a product? Look for someone who is a consultant and adviser- someone who will guide you. It’s great to have an agent with a sales background too, as they will be negotiating on your behalf. You just may want to avoid having to negotiate with them. You don’t want someone so aggressive they don’t give you time to compare homes and make an educated decision but you also don’t want someone so laid back your shopping for a home for years. You are hiring this person – so interview them. Once you feel confident, sign the contract.

Continue to Step 2.  Analyze your needs

Check out these great first time home buyer homes in Worcester County!

What is the difference between a Real Estate Agent and a REALTOR ®

Real estate agent vs a realtorWe have heard many times from our clients, especially ones that are just starting the process to buy or sell, that they don’t understand the difference between a Real Estate Agent and a REALTOR ®.  More often than not, people refer to each of them hand in hand because they just don’t know.  All REALTORS® are real estate agents but not all real estate agents are REALTORS®.  There are actually some big differences between the two of them and they are important to know especially if you are going to rely on their guidance and expertise in the real estate market.

Each state government regulates their real estate professions.  Massachusetts requires that you take a 40 hour live class in order to receive your certificate booklet which is your proof of completing the training.  Once you complete the class, you schedule your appointment to take the real estate licensing test.  Once you pass the test, then you can get your license.  Your license will need to be renewed every 2 years.  To find out more information on the classes, exams, and costs, visit Bay State Academy.

Real Estate Agent vs REALTOR®

  • Real estate agent: A person who completes the required classes, passes the exam and is granted a real estate license can be called a real estate agent.
  • REALTOR®: A real estate agent who becomes a member of the National Association of REALTORS®, meaning that they ascribe to and uphold the Code of Ethics and Professional Standards of the NAR (National Association of REALTORS®.

You don’t automatically become a member of The National Association of REALTORS®.  There are additional classes to take and annual dues to pay.  According the NAR website:

  • “The NAR is composed of residential and commercial REALTORS®, who are brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry.” Members sit on boards and committees together to share information about their respective expertise in the real estate industry.  “Members belong to one or more of some 1,700 local associations/boards and 54 state and territory associations of REALTORS®.”
  • The NAR constantly offers professional development to its members.  The association offers institutes and councils in all facets of real estate, everything from changes in lending practices to appraisal to international real estate.

 The Code of Ethics

A REALTOR ® must also prescribe to a legally enforceable code of ethics. The general buyer or seller is not aware of what this code of ethics is about. According to NAR and The Code of Ethics, here is what your REALTOR® pledges to do:

  • Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly.
  • Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.
  • Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.
  • Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.
  • Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.
  • Shall not collect any commissions without the seller’s knowledge nor accept fees from a third-party without the seller’s express consent.
  • Shall refuse fees from more than one party without all parties’ informed consent.
  • Shall not co-mingle client funds with their own.
  • Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.
  • Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.
  • Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.
  • Must engage in truth in advertising.
  • Shall not practice law unless they are a lawyer.
  • Shall cooperate if charges are brought against them and present all evidence requested.
  • Agree not to bad mouth competition and agree not to file unfounded ethics complaints.
  • Shall not solicit another REALTOR’S client nor interfere in a contractual relationship.
  • Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.

Though you have an option of who you work with for a real estate professional, it is always a good idea to work with a member of the National Association of REALTORS®.  These agents are committed to being the most professional and courteous. These agents have great experience and are constantly improving their knowledge through training and certifications.  Make sure before you agree to work with someone, that they have your best interests in mind and will represent you in the most favorable way.

Each member of our team is a REALTOR® and we pride ourselves in our ability to work with buyers, sellers and investors and have the education and training to exceed their expectations

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