Carolina Living Real Estate – Our Clients Are Our Focus

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Article courtesy of Scott Hoyt.  Scott is someone I respect and used to work with!

The other four percent ( I am being liberal here) are consumer focused. The difference is outcomes, one desires great outcomes for agents, the other creates great outcomes for clients.

Want to know what an (out of touch) agent focused company says in the wake of serious changes* in todays real estate market?

 First some context. 
Buyer Agent commissions are being removed from MLS systems and most listing contracts. A sellers willingness to pay a buyers agent to negotiate against them is no longer listed in the MLS? There are many arguments against sellers paying a buyers agent, but for expediency lets get to the quote:
“We value agents who show our listings and appreciate the offers made to our sellers through buyer agents. We believe buyer agents deserve to be compensated for the value they bring to their clients. We plan to strongly encourage our sellers to provide for that compensation in their listing terms with us.”
Yes, you read that correctly, a large firm sent that love letter to agents and an agent forwarded it to me. I do not entirely disagree; buyers agents should be compensated appropriately for services rendered, by the buyer.
They said they will work their sellers for buyers agent commission up front, before seeing the terms of an offer, before the showing. Who do they work for?What email did they send to their clients?

The same clients they have a fiduciary duty to represent. The same clients who entrusted them to do the right thing. They said our clients will give up a percentage of their sales price before you even ask.
The brokerage said we do not believe buyers are strong enough to pay their own fees. We will take the low road and enable weak buyers agents that can not prove value to their clients. We are not going to focus on building the most irresistible listings possible.
Think about what the rest of the process, transaction, sale looks like if this is how they solve problems. Worst part this company is not alone this is more than common.I can and probably will go on forever about what home buyers and sellers should do to get a stronger outcome.

The next 36 months are going to be awesome!
*Prior to August 17th Multiple List Services across the country are eliminating the buyer agents compensation from listings. In the past this listing was an easy way for agents to boycott listings that did not pay them enough.
Now that is not possible, buyers must now sign a form recognizing the costs of their agent and responsibility for payment prior to touring any home. A huge paradigm shift is the way real estate commissions are handled.

Must I return a Due Diligence Fee check to the buyer if they demand it?

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Important information from NC Realtor Association and Carolina Living Real Estate

QUESTION: I won’t give you all the gory details, but suffice it to say there is a dispute between my buyer client and the seller about whether there is a binding contract on the property between the seller and my client. The seller thinks a contract has been created while my buyer does not. I am holding the buyer’s check for the Due Diligence Fee and was prepared to deliver it to the listing agent when the dispute arose. Now the buyer is demanding that I return the DDF check to her. What am I supposed to do? I know that if there’s a binding contract, the buyer owes the DDF to the seller. Do I hold the DDF in case there is a contract, or do I follow my buyer’s instructions and deliver the check back to her since there’s a dispute about whether a contract has been formed?

ANSWER: Whether or not there is a binding contract, an agent who is holding a Due Diligence Fee check is required by Real Estate Commission Rule 58A.0116 to return it to the buyer upon the buyer’s request. The Rule may be accessed by clicking here. Subsection (b)(4) provides that a broker may accept custody of a check or other negotiable instrument made payable to the seller for a due diligence fee, but only for the purpose of delivering the instrument to the seller.  However, the next sentence of the Rule provides that “[w]hile the instrument is in the custody of the broker, the broker shall, according to the instructions of the buyer, either deliver it to the [seller] or return it to the buyer.”  Since the buyer has instructed you to deliver the DDF check back to her, that’s what you must do to be in compliance with the Rule.

It should be noted that this Rule also requires a listing agent to return a Due Diligence Fee check to the buyer upon the buyer’s demand if the check is in the listing agent’s possession at the time of the demand. For that reason, any DDF check received by a listing agent should be delivered to the seller without delay.

If a binding contract has been formed between the seller and your client, you are correct that the buyer would owe the DDF. If the buyer doesn’t pay it, the seller likely would have the right to go after the buyer for the DDF and any Earnest Money Deposit that may have been payable, and may be entitled to recover attorneys’ fees to boot. See paragraphs 1(d) and 23 of form 2-T. However, the fact that a seller may be entitled to payment of the DDF according to the contract doesn’t affect the duty an agent holding the DDF check owes to the buyer per the Real Estate Commission’s Rule.

© Copyright 2021 – 2024. North Carolina Association of REALTORS®, Inc.

This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.

New Listing – Denver NC

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PROPOSED. TO BE BUILT. NEW CONSTRUCTION $756,750. This fabulous lot is co-Marketed w/ Caruso Homes & can be purchased separately. Buyer may also work with Caruso Homes to build another of their well-designed, ready-to-build floor plans, or they may choose a builder of their own. Buyer may select their own options, upgrades, and/or elevations ensuring that every detail is crafted to perfection. Buyer may choose any of Caruso’s models that will fit on the lot. Photos and tours may display optional features and upgrades that are not included in the price. Pictures are of proposed models and do not reflect the final appearance of the house and yard settings. All prices are subject to change without notice. Final pricing, square footage, features, options and lot estimates will vary per buyer selections. Contact Sheryl Love at (240) 927-2951 or slove@carusohomes.com for more info about building w/ Caruso Homes. see sign on Wingate hill rd. Turn down road at sign and lot is on the right.

Caruso Homes: Caruso Homes | New Homes in Maryland, North Carolina, Pennsylvania, and Delaware

Weekly Market Activity Report – Charlotte Area

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For Week Ending November 19, 2022 (Data current as of Nov. 28, 2022)

Weekly market activity data and reports are provided by ShowingTime, and updated on Mondays by 2:00 pm, once received. Exceptions are on Monday holidays, when data/reports are not available until the following day.

Housing supply continues to grow nationwide, as higher borrowing costs cause home sales to slow. According to Realtor.com’s Monthly Housing Market Trends Report, the national inventory of active listings increased 33.5% year-over-year in October, the highest inventory level since 2020. As a result, local buyers may find they have more options to choose from, and with homes spending more days on market compared to the same period last year, a bit more time to shop around as well.

Charlotte Region

In the Charlotte region, for the week ending November 19:

  • New Listings decreased 34.5% to 759
  • Pending Sales decreased 34.2% to 747
  • Inventory increased 49.7% to 7,784

For the month of October:

  • Median Sales Price increased 13.4% to $380,000
  • List to Close increased 16.7% to 84
  • Percent of Original List Price Received decreased 4.0% to 96.5%
  • Months Supply of Homes for Sale increased 72.7% to 1.9

More Americans Choose Real Estate as the Best Investment Than Ever Before

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Real Estate Info From Carolina Living Real Estate and Property Management

Charlotte|Winston Salem| More Americans Choose Real Estate as the Best Investment Than Ever Before | MyKCM

Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey from Gallup. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before.

The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:

More Americans Choose Real Estate as the Best Investment Than Ever Before | MyKCM

If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision.

How an Investment in Real Estate Can Benefit You During High Inflation

Because inflation reached its highest level in 40 years recently, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month.

If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as rents rise. As Danielle Hale, Chief Economist at realtor.com, notes:

“Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”

When Inflation Has Risen in the Past, Home Prices Have Too

Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like this:

“There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .”

And since rising home values help increase your equity, and by extension your net worth, homeownership is historically a good hedge against inflation.

Bottom Line

Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

Charlotte|Winston Salem|Lake Norman Myths About Today’s Housing Market

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Myths About Today’s Housing Market [INFOGRAPHIC] | MyKCM

Some Highlights

  • If you’re planning to buy or sell a home today, it’s important to be aware of common misconceptions.
  • Whether it’s timing your purchase as a buyer based on home prices and mortgage rates or knowing what to upgrade or repair before listing your house as a seller, it takes a professional to guide you through those decisions.
  • Let’s connect so you have an expert to help separate fact from fiction in today’s housing market.