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        <title>Huntsville, Al Real Estate Blog</title>
        <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/2024-08/</link>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/top-16-questions-to-ask-a-buyers-agent.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/top-16-questions-to-ask-a-buyers-agent.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Top 16 Questions to Ask a Buyer’s Agent</title>
    <description> <![CDATA[ 
16 Key Questions to Ask a Buyer’s Agent





With recent changes in the NAR settlement now requiring buyer agreements before viewing homes, selecting the right buyer's agent has become more crucial than ever. Choosing an experienced agent can significantly impact your home-buying experience and financial outcome. To help you make an informed decision, we’ve outlined 16 important questions to ask when hiring a buyer’s agent. These questions are designed to ensure you choose an agent with the right expertise, availability, and local knowledge. Whether you’re researching potential agents or preparing for interviews, these insights will guide you in finding a professional who can effectively support your home-buying goals and secure your investment.


We've divided these questions into those you can research on your own and those you should ask the agent you're interviewing. The first three questions are ones you should research yourself and use to create a list of agents to interview.


1. How many homes have you sold in your career and in the past 12 months?


Just like you wouldn’t want a surgeon performing their first surgery on you, you don’t want an inexperienced real estate agent. You need someone with enough experience to guide you through the process confidently and who is up-to-date on current market conditions. Homes sold is a key criterion. At Matt Curtis Real Estate, we’ve sold over 7,500 homes, which you can verify online.


2. What do the reviews say?


The best places to check reviews are Google and Zillow. I prefer Google, but Zillow is also a great resource. Simply search for top real estate agents or companies in Alabama, Huntsville, or your desired location. On Zillow, use the Agent Finder tool to narrow down your options. Reviews are vital because we live in a review-driven world. Don’t just rely on the agent’s word or a friend’s recommendation—see what others have to say.


Look at all the reviews, especially the five-star ones, but also consider any negative reviews. How did the agent respond? Everyone makes mistakes, but it’s important to see how they handled them. At Matt Curtis Real Estate, we’re proud to be the number one reviewed real estate company in Alabama, with over 2,000 five-star reviews. Be sure to check out the reviews for the agents with the highest ratings. You can contact them directly or request them when you call our office.


3. Decide what price range you are looking in.


Work with an agent experienced in the price range and area where you want to buy. A great agent in Huntsville might not be as effective in Decatur, and vice versa. Make sure they have experience in the specific area you’re interested in.


 


The next set of questions are those you'll ask when you’ve narrowed down your list of agents and are ready to start interviews.


4. Are you a full-time agent?


If they're not a full-time agent, that would be a deal-breaker for me. From what I’ve seen, most part-time agents don’t sell many homes and lack experience. I've also called part-time agents before to arrange a deal or showing, only to hear, “I’m at work at my full-time job.” That’s not the level of service you want when buying or selling a home. You'll miss out on opportunities if that’s the response your agent gives other agents.


5. Does the agent you're interviewing have a backup?


Things happen—people get sick, go on vacation, and life events occur. What will happen to you when that happens? Will you be left hanging, or does the agent have a backup plan? Do they work on a large team, like Matt Curtis Real Estate, where other agents can cover for them if they’re out of town or sick?


6. When are you available to show homes?


You want an agent who’s available to show homes, but too much availability can be a red flag. If they have a lot of free time, it may mean they’re not working with many clients.


7. How many clients are you working with?


You want a healthy balance. If an agent has no clients, they may lack experience and not be in demand. If they have many clients, that can be a good sign. As long as they have the support and backup, it shouldn’t be a red flag. It means they’re active in the market and can provide valuable insights.


8. How long have you been an agent?


The number of years isn’t always the most important factor. Five years in the business isn’t necessarily better than one year. An agent with five years of experience may have only sold five homes, while an agent with one year of experience may have sold 30 homes last year. So, ask how long they’ve been an agent and how many homes they’ve sold during that time.


9. How do your fees work, especially in light of the new NAR settlement?


You get what you pay for, so don’t just go with the cheapest option. Make sure you’re getting the best value for what you’re paying. Ask how their fees work and what services they provide for those fees.


10. How well do you know the area I'm looking in?


An agent who’s great in Birmingham might not be much help in the Huntsville market, and vice versa. You want to work with an agent who specializes in the area you’re searching in.


11. Do you have contractors to recommend?


If you’re looking at an older home that may need work, this can be important. You want an agent who’s well-connected in the community and the industry, with a list of reliable contractors. At Matt Curtis Real Estate, we have a list of contractors on speed dial to help serve our clients.


12. Give me an example of when something went wrong during a transaction and how you handled it.


Real estate agents, like everyone else, are human and make mistakes. You want someone humble enough to admit, “Yes, I made a mistake, but here’s how I fixed it.” That’s the kind of agent you want—not someone who claims to be perfect, because no one is. The key is how they handle mistakes when they arise.


13. Can you show me a map of homes you’ve sold?


Some of this data is available on websites like Zillow. At Matt Curtis Real Estate, we track all the homes we've sold over the past year so our clients can see the depth of our team's expertise. This allows you to feel confident in our experience in a specific area. If it’s not an area we specialize in, we’ll let you know upfront.


14. This question was crucial during the COVID era but remains important today: If you’re in a competitive situation where many people want the same home, how can this buyer agent help you stand out and win the offer?


During our buyer consultation, we provide a list of strategies to help you stand out in competitive offer situations. If you want to leverage these strategies with our team, we’re ready to assist.


15. How do you communicate?


How will you communicate with me during the process? More importantly, how do you prefer to be communicated with? Do you prefer texting, phone calls, or emails? How quickly do you expect a response? If they’re busy showing homes, they might not respond immediately, or you might only need a nightly check-in if you’re at work all day.


16. How do you stay on top of the latest real estate market info?


 


With the market constantly changing, how do they stay informed? Have they sold a home recently, or was their last transaction six months to a year ago? Are they actively participating in the market? At Matt Curtis Real Estate, we ensure our agents are up-to-date with the latest market information and provide them with the tools to succeed in this ever-changing market.


 


We'd love to be your agent. Not only have we been the number one real estate team in Alabama for the past five years, but we also have more five-star Google reviews than any other real estate company in the state. Don’t just take our word for it—check out our reviews. We would be honored to interview with you and provide a free buyer consultation to guide you through the home-buying process. We’ll help you develop a plan and strategies to succeed in competitive situations.


 



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    <pubDate>Fri, 30 Aug 2024 15:23:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/how-policy-changes-are-influencing-housing-prices-and-affordability.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/how-policy-changes-are-influencing-housing-prices-and-affordability.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>How Policy Changes Are Influencing Housing Prices and Affordability</title>
    <description> <![CDATA[ 
How Policy Changes Are Influencing Housing Prices and Affordability








Understanding the current real estate landscape requires a look at how government policies are impacting housing affordability, grocery pricing, and rent control. Each of these factors significantly influences the market and affects both buyers and sellers. This discussion examines why a proposed $25,000 tax credit may not address the housing crisis, how price controls on groceries could lead to shortages, and the potential issues with rent control policies. Additionally, it explores the effects of recent government intervention in real estate, particularly how these changes might affect first-time homebuyers and who stands to benefit the most.


Why a $25,000 Tax Credit Won’t Solve the Housing Crisis


The first thing we want to examine is a potential $25,000 first-time homebuyer tax credit. At first glance, this might seem like a good idea, especially if you're not currently a homeowner. Many people, particularly millennials, are waiting on the sidelines to buy their first home due to the ongoing affordability crisis. We want to help first-time homebuyers get into their homes, as this is a key way to build generational wealth.


Homeowners typically have 40 times the net worth of renters, which highlights the importance of this issue. Unfortunately, this tax credit is not the solution. The real issue is supply and demand. We simply don't have enough supply in this country. Adding more demand without addressing the supply side will not solve the broader housing problem. What is likely to happen is that the $25,000 tax credit will increase home prices by $25,000. While builders and sellers might benefit during this time, first-time homebuyers won't see significant gains. The last time we tried something similar with an $8,000 tax credit, home prices fell back to their original levels once the credit expired.


Even if prices don't drop afterward, this tax credit is still inflationary. It leads to one of two outcomes: either people pay higher taxes to fund this bill, which resembles a socialistic tax, or it adds to inflation because we’re deficit spending without having the money in the first place. This returns us to the same affordability challenge we faced before. You might help people buy a house, but the cost of everything else, like gas and groceries, increases, making it harder to afford living expenses.


The real issue with housing prices is inflation, which the government created. When you compare the actual value of homes to the price of gold, which is considered true money, homes are slightly below average in value. The problem isn’t the value of homes; it’s the situation created by excessive government spending. You can’t solve this problem with the same approach that caused it. The problem was overspending, and if we continue deficit spending, it will only make the problem worse.


Hidden Dangers of Capping Grocery Price Increases


The next point to consider is the proposal to address grocery price gouging by limiting price increases. The root of the problem is the deficit spending that has occurred over the past several years, which has fueled inflation. It’s unjust to place the burden of this inflation on grocery stores, especially given their already thin profit margins. Policies like this have been shown to lead to shortages, which is not something we want in this country. We don’t want to face shortages of essentials like meat and bread, leading to bread lines, as seen in some other countries. Even Jason Furman, who served as a top economist for Barack Obama, has stated that this approach would harm consumers and is not a wise policy.


Why Economists Warn Against Rent Control Policies


Next, let's talk about rent control, which we've already covered in a previous video. Economists agree that rent control leads to shortages and higher prices. There's even a documentary coming out about rent control in New York, highlighting its negative impact. This policy often results in dilapidated buildings where necessary repairs are neglected, leading to shortages and higher prices for units outside rent-controlled areas. It's another policy that I hope won't be implemented across the U.S.


Government Intervention in Real Estate: Impact on Buyers and Sellers


The last topic to discuss is the government's involvement in real estate. Recently, there was a significant real estate settlement, which stemmed from a lawsuit outside of the government, though the DOJ was heavily involved. The challenge we face is a housing affordability crisis across the U.S., and politicians are reluctant to take responsibility. They prefer to blame the Federal Reserve for creating deficits, which have led to higher prices and interest rates, fueling the crisis.


So, who is struggling the most right now? It's those who don't own homes. The NAR settlement brought a few changes, one being that buyer compensation will no longer be listed in the MLS, changing the system as we knew it. The intention might be to lower commission rates, but this doesn't help the people who need it most—homebuyers, particularly first-time buyers. In fact, it could increase their out-of-pocket expenses if sellers don't assist with buyer agent compensation. This could even prevent them from purchasing a home if they lack the funds for closing costs.


So, who benefits? It might help sellers, but probably not, since most sellers are also buying homes. The real winners could be those with multiple properties to sell, and that’s often Wall Street. Institutions like Wall Street have been buying up large numbers of homes. This settlement could potentially benefit them by reducing the overall cost of selling homes, enabling them to flip and trade homes more quickly.


As someone who works with real estate agents, I've been in touch with agents from different countries recently. They consistently tell me that our system is the best and most efficient in the world. Our MLS system allows easy access to all listings, while in other countries, you might have to visit numerous websites and contact multiple brokers, which can take days or even weeks to gather all the available properties. Often, you only get a fraction of what’s available compared to the comprehensive data provided by the MLS.


We also had a buyer compensation model that benefited both buyers and sellers. Many countries still use this structure. We had the best system in the world, but now we’re taking a step back for homebuyers. Additionally, when you look at other countries, another advantage we have is financing. The U.S. offers the best and easiest financing terms in the world. We need to keep America the easiest place for homeownership because homeownership is crucial, and we need to get more first-time buyers into homes. One of the best ways to achieve this is by keeping the government out of real estate, allowing us to continue focusing on serving clients and providing the best value for our buyers and sellers.


 



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    <pubDate>Fri, 23 Aug 2024 14:02:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-august-23rd--homes-for-sale-in-huntsville-al-area.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-august-23rd--homes-for-sale-in-huntsville-al-area.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for August 23rd | Homes For Sale in Huntsville, AL Area</title>
    <description> <![CDATA[ 
Sneak Peek Listings for August 23rd





100 Posada - $819,991


100 Posada Drive, Madison, Alabama 35756


Talk to an MC Agent today for more info or call 256-270-9393











28177 Kawana - $260,000


28177 Kawana Court, Harvest, Alabama 35749


4 Bed | 2 Bath | 1,547 sqft


Talk to an MC Agent today for more info or call 256-270-9393


 



 ]]> </description>
    <pubDate>Fri, 23 Aug 2024 08:21:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/huntsville-alabama-housing-market-report--q2-2024.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/huntsville-alabama-housing-market-report--q2-2024.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Huntsville, Alabama Housing Market Report | Q2 2024</title>
    <description> <![CDATA[ 
Q2 Huntsville Housing Market Report


 


The Huntsville housing market's Q2 data reveals several key trends that indicate shifts in both sales activity and pricing dynamics. While overall sales remain relatively flat, there are notable fluctuations within specific price points, suggesting varying levels of demand across the market. New construction continues to play a crucial role, with a significant portion of sales attributed to these properties, reflecting builders' efforts to address ongoing supply challenges. Additionally, the increase in inventory and days on market hints at a more balanced market approaching, even as interest rates and inflation influence buyer behavior. As Huntsville's population grows, these factors collectively shape the area's real estate landscape heading into the latter half of the year.


Median Sales Price &amp; Homes Sold


The Q2 numbers are in for the Huntsville area market. Let’s start with the numbers everyone wants to know: the average sales price. Unfortunately, this report did not include that figure. However, it did provide the median sales price, which came in at $339,452, showing a slight increase of 0.2 year over year. If you're interested in the average sales price, it's likely closer to the $370,000 to $380,000 range.


Home sales have slowed for the second year in a row, coming off the peak numbers we saw during the pandemic in 2020. Q2 of 2023 recorded the lowest sales since 2016. This quarter was almost flat, with 1,934 homes sold last year compared to 1,994 this year, marking just a 3.1 increase. We are essentially on track with 2017 sales numbers, a couple of years before the pandemic.


Of those sales, 35 were new construction. Builders are definitely doing their part. Without the additional supply they're introducing, local housing numbers would be significantly lower. In fact, new construction sales have doubled since 2015. The good news is that there’s a lot of new construction being developed, which will help in the long term with the housing supply shortage we’ve experienced. Builders are a key factor this quarter, contributing 35 to overall sales.


More Negotiations Happening in the Market


The good news for buyers is that there are more negotiations happening in the market right now. It’s a mixed situation that benefits both sellers and buyers. Forty percent of sales are closing at an average of 4 below list price, which is good news for buyers. On the other hand, 60 of homes are still being sold at or above list price—41 at list price and 19 above list price—even in the current market. It's still a strong market for many sellers, but it’s important to note that this doesn’t account for seller concessions. Even when homes sell at or above list price, sellers may still be offering closing costs or other concessions to make deals work.


Sales Relatively Flat Except in Certain Price Points


As mentioned, sales have been relatively flat year over year, but certain price points have seen significant increases. At the $150,000 to $200,000 price point, sales are up 22.4. This isn’t surprising since homes in this range are becoming less affordable, and when they do hit the market, buyers are quick to act. The key difference this year compared to last is the increase in inventory at this price point. Any available inventory in the $150k-$200k range is quickly absorbed by the market.


A surprising trend is in the $650,000 to $800,000 range, where sales are up 18 year over year. Homes priced at $800,000 and above have seen an even more dramatic increase, up 45.1. Several factors contribute to this, including higher interest rates, which are leading cash buyers to prefer purchasing homes outright instead of financing. For some, real estate has become a more appealing investment compared to other options like money markets.


The luxury market also plays a significant role. The current economy has created a divide between those with assets and those without. Unfortunately, those without assets are struggling with inflation and rising costs, including housing affordability. On the other hand, those with assets have benefited from rising property values and record-high stock prices. Even with recent stock market corrections, overall values remain at record highs, along with precious metals and real estate. Buyers in the upper price points are capitalizing on this market, undeterred by higher interest rates.


Looking back just seven years to 2017 highlights the inflation we’ve experienced in Huntsville and across the U.S. Sales of homes priced below $150,000 have dropped by 90 since 2017, reflecting the significant inflation we’ve seen over the past seven years.


Days on Market &amp; Pending Sales


The average days on market have remained relatively flat year over year, currently at 41 days. This is close to the pre-pandemic number of 45 days, but still below what's considered normal, like back in 2016 when the average was 92 days. It might not feel like we're in a hot market where homes are selling quickly, but compared to eight years ago, homes are selling over twice as fast.


Pending sales have also declined, down 21.7 year over year. This is a concerning trend for the remainder of the year, as closed sales have remained relatively flat. The drop in pending sales suggests we could see a worse year in terms of the number of sales in the Huntsville area compared to 2023, with pending sales falling from 534 to 418.


Listings &amp; Months’ Worth of Supply Are Up


One of the most significant updates for buyers is that listings have increased by 20.8, from 1,496 to 1,807. This means more homes to choose from and more supply available. We're currently at 3.2 months' worth of supply for Q2, and that number is continuing to inch closer to the four-month mark as we move through August. While 3.2 months' worth of supply technically indicates a seller’s market, the increase toward four months suggests we're approaching a more balanced market, typically considered between 4 to 6 months of supply. Inventory alone rose 43 in June 2024, with the most significant increases in the $200,000 to $250,000 price range, up 135.6, and in the $250,000 to $300,000 range, up 104.7.


Some of this increase in inventory comes from new construction in the $250,000 to $300,000 range, as builders work to improve affordability. Given the affordability index and average household income in Huntsville, homes in this price range remain accessible for most families in our area. Builders are responding well by adding supply in this price bracket.


Inflation, Interest Rates, &amp; Population Growth


To wrap things up, a few quick facts: Inflation, as reported in the headlines, continues to decrease, at least according to current measurements. Inflation is now down to 3, compared to 4.1 this time last year and 8 in 2022. So, it's moving in the right direction.


Interest rates averaged around 7 in Q2, but if you're watching this in August, rates have been coming down, offering some much-needed relief for Huntsville home buyers.


Finally, Madison County's population continues to grow. While we don't have the final numbers for 2024 yet, last year the population increased to 412,600 people in Madison County alone.


 



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    <pubDate>Fri, 16 Aug 2024 12:16:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/is-the-american-dream-still-possible.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/is-the-american-dream-still-possible.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Is The American Dream Still Possible?</title>
    <description> <![CDATA[ 
Is The American Dream Still Possible?


CNBC recently ran an article stating that 41 of Americans believe the American Dream is impossible to achieve now. I'm very saddened by this, but unfortunately, I'm not surprised. Housing costs due to inflation in large cities have significantly impacted affordability.


However, with a housing affordability score close to 100, I think Huntsville is different. I don't believe it will stay this way for long, but I do think there’s a window of opportunity for Millennials and first-time homebuyers to realize the American Dream in the Rocket City. I want to know your opinion for an upcoming YouTube video. We’ll be giving away a $50 Amazon gift card to a lucky winner for completing this quick survey





Take the Survey


 



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    <pubDate>Fri, 16 Aug 2024 08:40:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/effects-of-rent-control-policies-on-housing-supply-and-quality.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/effects-of-rent-control-policies-on-housing-supply-and-quality.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Effects of Rent Control Policies on Housing Supply and Quality</title>
    <description> <![CDATA[ 
Effects of Rent Control Policies on Housing Supply and Quality





As the affordability crisis in the US deepens, discussions around rent control are gaining traction. President Biden's proposed rent control agenda seeks to address rising rents by capping increases at 5 annually. While this may appear to be a solution for tenants facing steep rent hikes, many economists argue that such measures could lead to unintended consequences, including a decline in housing quality and a reduced supply of rental units. This article examines the potential impact of rent control on both tenants and landlords, as well as the broader implications for the housing market. It also explores the underlying causes of the affordability crisis and the role that deficit spending and inflation have played in driving up housing costs. Understanding these factors is crucial for finding effective solutions to the housing challenges facing the country today.


Proposed Rent Control Agenda


President Biden is planning to propose a rent control agenda in response to the affordability crisis affecting the US, including North Alabama. While we usually focus on home purchases on this channel, it's important to note that the rental market is also struggling with affordability issues.


The president's plan aims to cap rent increases to help tenants stay in their homes without facing eviction or the need to relocate. The proposed structure would limit rent increases to 5 annually, and it’s set to last for two years. It’s worth noting that many policies start as temporary measures but can eventually become permanent laws. We’ll discuss whether we think this is a good or bad idea in just a moment, but that’s the basic concept behind it.


I believe the reasoning behind the two-year period is that politicians hope the housing supply will be resolved within that time frame. If you’ve been following this channel, you know that we are far from solving the housing supply issue in this country within the next year or even two years. It’s unlikely to be a short-term fix. The second aspect of the proposed bill is to exclude new construction from these rent control measures.


Rent Control: A Policy Widely Opposed by Economists


What do the experts say about this? If you've ever taken a business or economics class, you know that most economists are strongly opposed to rent control. In fact, 93 of economists believe rent control is a bad idea.


Swedish economist Assar Lindbeck famously said, &quot;Rent control appears to be the most efficient technique presently known to destroy a city, except for bombing.&quot; Even Barack Obama's former top economic adviser, Jason Furman, has also spoken out against rent control. So, 93 of economists, including key figures like Furman, agree that rent control could be very harmful for this country.


Understanding the Downside of Rent Control


If you're a tenant, you might wonder why many economists think rent control is a bad idea. As a tenant, you're focused on controlling your expenses, and you may question why landlords feel the need to raise rents by more than 5 each year.


Studies show that rent control often leads to a decline in housing quality. This happens because landlords, facing limits on rent increases, don't have enough revenue to maintain properties at a high standard. Without the ability to recover the costs of repairs and upkeep, landlords may defer maintenance, leading to a gradual decline in the quality of housing over time.


Another major issue is reduced housing supply. If investors can't make a profit in a city with rent control, they'll invest elsewhere where they can get a better return. This can backfire, as it reduces the overall supply of rental housing. When supply decreases, prices often rise in the remaining non-controlled rental units, which is the opposite of what rent control aims to achieve.


From a tenant's perspective, it might be easy to blame landlords, but the reality is that rising costs due to inflation, increased insurance premiums, and higher taxes are putting pressure on landlords. If landlords can't cover these additional expenses and their investments stop generating cash flow, it becomes a problem not just for them, but for tenants as well.


Why Rents Increase


Why are rents increasing in the first place? The main reasons include remodeling and raising the quality standards for tenants in their apartments and homes. Labor costs are also rising, and supplies have become more expensive due to inflation. Insurance premiums are skyrocketing, especially in certain markets.


Property taxes are another factor. We’ve seen a 40 increase in home values, which has led to a significant rise in property taxes. This is all tied to inflation. In reality, home prices haven’t increased much relative to real money. Many people refer to dollar bills as money, but in truth, they are fiat currency, which is different. Dollar bills can be printed, while true money, like gold, has a fixed supply.








If you look at a chart comparing housing values to gold, you’ll see that housing values are actually on the lower or average side. They're not as high as you might expect, considering the current concerns about housing affordability. The rise in home prices is largely due to an increase in currency supply, but when measured against the true value of gold, home prices are at a normal, or even slightly below normal, level according to this chart.


The Affordability Crisis


We clearly have an affordability crisis in this country. How did we get here? The primary reasons are deficit spending and excessive currency printing, which have led to a misalignment between housing prices and affordability for most Americans. This is a significant challenge.


The proposed rent control policy seems to be more about politics and winning votes than providing a real solution. Many people don’t expect it to pass at this time. Affordability is a major concern for Americans as they head to the polls in November, and politicians are trying to capitalize on that, even if they can’t implement these policies right now. While it’s unlikely to pass nationwide, we may see rent control measures appearing in some larger cities. With 93 of economists opposing rent control, I believe it will have negative consequences for the cities that adopt it.


A Better Path Forward


Politicians often point fingers or try to appear as if they’re taking action, instead of addressing the root causes of the problem. The real responsibility lies in getting our deficit under control, stopping the overprinting of money to curb inflation, and creating policies that increase housing supply. Fixing the supply-demand imbalance will help improve affordability in the US.


The government has been raising taxes and inflating the costs of everything landlords purchase. It’s unfair to expect landlords to absorb these increased costs. Such an approach is not a win-win solution and will likely result in a reduced housing supply, lower housing quality, and ultimately higher prices.


While rent control might seem like a good idea on the surface, history shows it can be disastrous, as some economists have warned. The solution lies in creating policies that foster long-term supply growth in both the rental and purchase markets. This is where we need to focus, especially given the current deficit of about 6 million homes across the US.


 



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    <pubDate>Fri, 09 Aug 2024 14:54:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-august-2nd--huntsville-alabama-area-homes-for-sale.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-august-2nd--huntsville-alabama-area-homes-for-sale.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for August 2nd | Huntsville, Alabama Area Homes For Sale</title>
    <description> <![CDATA[ 
Sneak Peek Listings for August 2nd


117 Morland - $380,000


117 Morland, Huntsville, Alabama 35824


3 Bed | 2 Bath | 2,117 sqft


Talk to an MC Agent today for more info or call 256-270-9393








175 Hollington - $230,000


175 Hollington Drive, Huntsville, Alabama 35811


3 Bed | 2 Bath | 1,179 sqft


Talk to an MC Agent today for more info or call 256-270-9393


 



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    <pubDate>Fri, 02 Aug 2024 14:38:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/nar-settlement-changes-whats-different-for-buyers-and-sellers.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/nar-settlement-changes-whats-different-for-buyers-and-sellers.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>NAR Settlement Changes: What’s Different for Buyers and Sellers</title>
    <description> <![CDATA[ 
NAR Settlement Changes: What’s Different for Buyers and Sellers


The recent changes resulting from the NAR Settlement are set to reshape various aspects of real estate transactions. Buyers and sellers should prepare for updated procedures and adjustments in how fees are handled. This includes the introduction of new requirements for buyer agreements and modifications in how buyer agency commissions are managed. Understanding these updates will be crucial for navigating the evolving real estate landscape.


Effective Dates for NAR Settlement Changes


As part of the proposed $418 million settlement in the NAR lawsuit, there will be a few changes for both buyers and sellers in the Tennessee Valley. You might be wondering when these changes will go into effect.


Nationwide, the changes are set to take place on August 17th. This applies to all realtor-owned MLSs. Although the proposed settlement hasn't been officially finalized—and it’s not expected to be until the end of this year or early next year—the changes will still go into effect on August 17th across the U.S. It’s possible that some of these changes might be adjusted over the coming months and into 2025.


Our local board in North Alabama decided late last week to implement these changes earlier, effective August 1st. As a result, all of the changes we’re discussing are now in effect. Matt Curtis Real Estate has already incorporated these updates for both our buyers and sellers. When you contact Matt Curtis Real Estate, we will be ready to address these changes with you.


How the Latest Settlement Changes Buyer Agreements and Home Viewing


One of the main changes with the new settlement is that buyer agreements must now be in place before viewing a home. This applies to anyone involved in the viewing process, even if it's parents, siblings, or anyone else who is old enough to purchase a home. They need to be included in that buyer agreement as well. This can be seen as a downside.


On the positive side, I believe we’ll see more buyer consultations taking place, which will help educate buyers on the process, the estimated funds needed to close, and strategies for navigating the market. This approach benefits both agents and buyers by encouraging a slower, more informed start to the process.


The challenge will come with what we call &quot;pop-tart showings&quot; in the industry, where someone wants to quickly view a home without fully considering the process. Even in these situations, a buyer agreement is still required. If you're just getting to know the agent you’ve called and aren’t ready to commit to a full buyer agency agreement for the entire process, you can consider shortening the agreement period or specifying it to the particular home or homes you’re viewing. This gives you time to build trust with the agent and decide if they are the right fit to help you purchase a home.


How Buyer Agency Fees Are Affected


A second major change is that buyer agency commissions are no longer advertised in the MLS. Previously, when a listing agent met with a seller, they would agree on a listing commission. Often, the listing agent would share that commission, sometimes splitting it evenly with the buyer's broker who brought in the buyer that ultimately completed the sale. This arrangement meant buyers didn’t have to worry about additional out-of-pocket expenses because the seller was covering the commission, which was essentially factored into the purchase price of the home.


Now, buyer agents can no longer see commissions advertised in the MLS. Some brokers will still work with their sellers to offer buyer broker compensation, but they'll look to advertise it through other means such as websites, phone calls, and other emerging platforms where agents can share that information. I don’t believe this was the Department of Justice’s intention with this rule change.


Matt Curtis Real Estate will no longer participate in broker-to-broker commission sharing. Instead, there will be something called seller concessions, where the seller may still choose to pay the buyer’s broker, similar to how they might cover closing costs to help the buyer afford the home. This option will still be available, but we believe broker-to-broker commission sharing should not continue if we follow the spirit of the DOJ's new rules. At Matt Curtis Real Estate, commissions will be kept separate, and while sellers may still pay a significant portion of the buyer broker’s commission, it will be negotiated in the contract rather than advertised on websites or through other channels. Many of our sellers might opt for seller concessions, but these will not be directly tied to buyer broker commissions.


Navigating Buyer Agent Fees


If you're a buyer working with a buyer's agent, what does this process look like? You'll sit down with your agent—whether it's on the hood of a car outside the home, or preferably in an office or coffee shop—to go over a buyer agreement and have a buyer consultation, walking through the entire process. You'll agree on the terms up front with your agent. Many buyers and agents will try to negotiate that fee into the contract. Some sellers, as mentioned earlier, may already be offering buyer commissions, though I believe the better approach is for sellers to offer concessions instead.


These seller concessions can be used for whatever the buyer needs. This is similar to what we've already seen, where buyers might need help with closing costs or, in the current market, rate buydowns to afford a home. Many builders are offering similar incentives right now. So, seller concessions can be used towards closing costs, rate buydowns, or even buyer agency commissions. Many sellers will likely offer this. At Matt Curtis Real Estate, we'll aim to negotiate these costs into the contract so that the seller covers them, helping to minimize the expenses buyers face for buyer agent commissions.


How Real Estate Changes Impact Sellers


All right, we've covered a lot about the changes affecting buyers and, indirectly, sellers as well. Now, let's break it down for the sellers.


First, we’ll be updating the paperwork for sellers. This will now include just the listing fee, rather than a fee that covers both buyer and seller commissions. The paperwork will focus solely on the listing company’s fee.


While some brokerages may continue to share buyer agent commissions, I believe this is the wrong approach and could potentially lead to issues with the Department of Justice or even lawsuits. Many companies, including ours, will be moving towards seller concessions instead. Sellers who are willing to offer concessions to buyers can plan for this upfront. These concessions can be used for whatever the buyer needs, whether it’s to cover buyer brokerage compensation, rate buy-downs, closing costs, or a combination of these.


Buyer broker compensation will also be handled through the contract, rather than being included in the listing agreement or advertised in the MLS. This compensation will need to be detailed in the additional provisions section of the contract, specifying how the buyer broker will be paid.


As a seller, you’ll need to consider any additional expenses that may arise with the sale of your home. This includes not just the sales price, but also any seller concessions for buyer broker compensation or buyer closing costs that may be necessary. These should be addressed in the contract’s additional provisions section.


 


Will Recent Real Estate Commission Changes Address the Affordability Crisis?


I've seen some articles suggesting that these changes might help address the affordability crisis, but unfortunately, this isn't the solution. Here’s why:


Even in an extreme case where commissions drop by 1 to 3, it won't significantly impact the affordability crisis. Over the last few years, we've seen a 40 increase in home prices, largely due to the massive amount of money printed during the pandemic. A small reduction in commissions won't offset that 40 increase, so it won't solve the affordability issue.


The main challenge we face is government spending, deficit spending, and the Federal Reserve printing money. These issues won’t be resolved by the proposed changes. Politicians often avoid responsibility for their actions and shift blame to others, proposing solutions like rent control or changes to commission structures. However, the real issue with affordability is higher borrowing costs due to increased interest rates—resulting from Federal Reserve policies—along with inflation caused by deficit spending and money printing. In the best-case scenario, some sellers might benefit from lower buyer agency fees, which means the sellers would actually be the ones benefiting from this proposed change.


In a best-case scenario, some sellers might benefit from lower buyer agency fees, meaning they could come out ahead with these changes. But most buyers likely won't see much improvement, as home prices and values aren't expected to drop because of this. Buyers might get their full commission covered through the contract, which is likely to happen often.


If that doesn’t happen, buyers will need to cover the difference in higher fees, potentially making this a neutral situation for them. Sellers could benefit slightly, but for many, the impact will be neutral as well.


If all these changes seem complicated, that's where we come in. We're the number one real estate team in Alabama, and we stay on top of all these developments for you. Contact the top team in Alabama for the past five years to help guide you through these changes, whether you're buying or selling. We'll help you maximize the value of your home or navigate the purchase process so you don’t end up paying unexpected out-of-pocket fees.


 



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    <pubDate>Fri, 02 Aug 2024 14:24:00 -0500</pubDate>
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