Fall? November seems like winter to me. I don’t like the whole classification, but yeah, it’s like fall.
Tego Venturi:
It it’s, you know, well, you know, our fall is different than the fall I grew up within in Michigan, you know, fall in Michigan starts in August, but anyway. Yeah, it’s, it’s beautiful. And real estate’s booming. The leaves are falling off the trees. And here we are talking about real estate piles in the yard together. Yeah. So, Tracy, what do we got today?
Tracy Venturi:
Well, we’re going to talk about a few things today. One is, you know, what can we expect for the real estate market over the winter? You know, there’s been a lot of information about that. And the other thing is we’re going to talk a little bit about all the different players involved in, in the residential real estate world and kind of dive in deep on title.
Tego Venturi:
Yeah. And I think that the thing is anybody that’s been doing a certain job or in a certain career in a certain profession for so long, we, we develop our own lingo and over time we just take it for granted that everybody knows what our lingo is and what things mean. And so we felt like it was important to, to start really talking about what are the different people relating to the transaction, the, the, the, the parties, right? The players in the whole real estate transaction. So we’ll go through that. Well, and I wanted to just talk about the, this, the fact, this homes coming on the market, there’s a lot of interest for this home. We, we know that and I’ve, I’ve gotten a few people reach out to me. It’s like, you know, what’s going on with the market as it’s starting to slow down as, you know, what’s going on. And, and the short answer is yes, it’s slowing down, but the, the there’s a, but to that, which is, it always slows down this type of time of year, right. Tracy, you know, real estate activity always slows down November, December, January, well, and then February is kind of when it starts, you know, getting, getting busier again, it’s not like real estate stops. So, you know, people buy and sell throughout the whole the whole year. It’s just that the slower months are right now.
Tracy Venturi:
Speaking of housing. So Lawrence soon he is the chief economist for the national association association of realtors. Smartest, man, I don’t know smartest, man. You’d like to know petty, well, you know, you know, Eddie, so Lauren soon, you know, we really follow him because his chief economists great stuff and it always is very insightful and feels very spot on. You know, if you look back
Tego Venturi:
Well he has, he has the pulse on what’s going on in real estate, especially in the resale side of real estate, better than anybody in the country. Right. That’s his job, that’s his job.
Tracy Venturi:
So here’s, here’s what he’s saying this week, this winter, he said, winter will bring a flurry of activity to the housing market, which, you know, we don’t think of winter as a top selling season for home buyers and sellers. Right. but we are seeing, I know we started off with some stats that show that through the first 10 days of November, we’re up like 30% still, even though people are feeling that it might be slowing a little bit, which would be typical. So he’s saying it will be one of the best winter sales years ever. And we truly
Tego Venturi:
Believe that big statement, huge statement.
Tracy Venturi:
And if we had more houses on the market would be even a bigger winter, right.
Tego Venturi:
And say stuff like that, just to, to pump people up or anything, he will be negative if the data shows that that things are negative. Right.
Tracy Venturi:
You said the typical winter slowdown in the housing market is simply not on the radar. Right. And there’s reasons for that. Right.
Tego Venturi:
Well, we had the great pause is what I call it back in, you know, March, April, may.
Tracy Venturi:
So we still had more homes sold off overall in 2020 than in 2019, even with the great slowdown in March, April, may. Right. So we still sold more homes than last year.
Tego Venturi:
And that’s true locally here Albuquerque. Not that he’s talking nationally, but that’s true here locally as well.
Tracy Venturi:
Right? So some of the things he’s talking about that way into having a great winter mortgage interest rates are going to remain very low through the new year, right? So the possibility of rates falling you know, more is pretty unlikely, but staying low is very low.
Will winter bring a flurry of real estate activity in Albuquerque?
Tego Venturi:
Here we are fall. It’s beautiful. Isn’t it?
Tracy Venturi:
Fall? November seems like winter to me. I don’t like the whole classification, but yeah, it’s like fall.
Tego Venturi:
It it’s, you know, well, you know, our fall is different than the fall I grew up within in Michigan, you know, fall in Michigan starts in August, but anyway. Yeah, it’s, it’s beautiful. And real estate’s booming. The leaves are falling off the trees. And here we are talking about real estate piles in the yard together. Yeah. So, Tracy, what do we got today?
Tracy Venturi:
Well, we’re going to talk about a few things today. One is, you know, what can we expect for the real estate market over the winter? You know, there’s been a lot of information about that. And the other thing is we’re going to talk a little bit about all the different players involved in, in the residential real estate world and kind of dive in deep on title.
Tego Venturi:
Yeah. And I think that the thing is anybody that’s been doing a certain job or in a certain career in a certain profession for so long, we, we develop our own lingo and over time we just take it for granted that everybody knows what our lingo is and what things mean. And so we felt like it was important to, to start really talking about what are the different people relating to the transaction, the, the, the, the parties, right? The players in the whole real estate transaction. So we’ll go through that. Well, and I wanted to just talk about the, this, the fact, this homes coming on the market, there’s a lot of interest for this home. We, we know that and I’ve, I’ve gotten a few people reach out to me. It’s like, you know, what’s going on with the market as it’s starting to slow down as, you know, what’s going on. And, and the short answer is yes, it’s slowing down, but the, the there’s a, but to that, which is, it always slows down this type of time of year, right. Tracy, you know, real estate activity always slows down November, December, January, well, and then February is kind of when it starts, you know, getting, getting busier again, it’s not like real estate stops. So, you know, people buy and sell throughout the whole the whole year. It’s just that the slower months are right now.
Tracy Venturi:
Speaking of housing. So Lawrence soon he is the chief economist for the national association association of realtors. Smartest, man, I don’t know smartest, man. You’d like to know petty, well, you know, you know, Eddie, so Lauren soon, you know, we really follow him because his chief economists great stuff and it always is very insightful and feels very spot on. You know, if you look back
Tego Venturi:
Well he has, he has the pulse on what’s going on in real estate, especially in the resale side of real estate, better than anybody in the country. Right. That’s his job, that’s his job.
Tracy Venturi:
So here’s, here’s what he’s saying this week, this winter, he said, winter will bring a flurry of activity to the housing market, which, you know, we don’t think of winter as a top selling season for home buyers and sellers. Right. but we are seeing, I know we started off with some stats that show that through the first 10 days of November, we’re up like 30% still, even though people are feeling that it might be slowing a little bit, which would be typical. So he’s saying it will be one of the best winter sales years ever. And we truly
Tego Venturi:
Believe that big statement, huge statement.
Tracy Venturi:
And if we had more houses on the market would be even a bigger winter, right.
Tego Venturi:
And say stuff like that, just to, to pump people up or anything, he will be negative if the data shows that that things are negative. Right.
Tracy Venturi:
You said the typical winter slowdown in the housing market is simply not on the radar. Right. And there’s reasons for that. Right.
Tego Venturi:
Well, we had the great pause is what I call it back in, you know, March, April, may.
Tracy Venturi:
So we still had more homes sold off overall in 2020 than in 2019, even with the great slowdown in March, April, may. Right. So we still sold more homes than last year.
Tego Venturi:
And that’s true locally here Albuquerque. Not that he’s talking nationally, but that’s true here locally as well.
Tracy Venturi:
Right? So some of the things he’s talking about that way into having a great winter mortgage interest rates are going to remain very low through the new year, right? So the possibility of rates falling you know, more is pretty unlikely, but staying low is very low.
Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.
1. Listen to Your Real Estate Agent
A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:
“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer.
2. Understand Your Finances
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.
3. Be Ready to Move Quickly
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.
4. Make a Fair Offer
It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:
“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”
5. Be a Flexible Negotiator
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Bottom Line
Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.
Tego Venturi: I get a lot of questions about home inspections. Yes. And every, every, just about every real estate transaction, when there’s a purchase, you know, a buy-sell, there is some sort of inspections done. And I want to just kind of go through with you what those options are, what buyers should be thinking about more that we’ll talk more about buyers and sellers, but you know what buyers are thinking about when they’re wanting to buy and they’re going to get an inspection done first off, what’s the difference between a home inspection and an appraisal?
Tracy Venturi: An appraisal is to verify the value for the lender of the value of the home, not the condition of the home and appraiser goes through it. And if there’s some obvious condition issues that they are concerned about for the lender that could come up, but they’re really not there to do an inspection of the condition they’re looking for value. So Tego, when we are selling homes, we have the opportunity in the purchase agreement to write down what inspections that the buyer might want. But our purchase agreement also has where we don’t have to write down anything unless we want the seller to pay for it. So it’s interesting because a lot of times people say, I want to make my offer stronger and not, not list that I’m going to do inspections while you don’t have to list what inspections you’re going to do. A buyer can do any inspections they want, even if it wasn’t on the, who pays for what page of the purchase agreement. Right? So let’s talk about what some of our typical inspections are.
Tego Venturi: Can I just give you one caveat that the buyer can do any inspections they want, as long as it doesn’t damage the property and they’re paying for it, right? Is it
Tracy Venturi: That’s a good caveat? Some, some things do damage, like doing a lead paint test. You just need to get permission because they do have to scrape through a few paint layers of paint to get the chemical on there, to see if there’s lead paint. So they do need to get that approval.
Tego Venturi: That’s a very obscure inspection kind of, I would say, what’s, what’s the standard, you know what we call full home inspection? What is that?
Tracy Venturi: So typically when we sell houses, most people get a full home inspection and the full home covers everything from the exterior, the grounds, how the water slopes to towards or away from the house. It covers the roof, the exterior, and then the interior and the inspectors typically start inside the front door and they go wall to wall all the way through the property, you know, and they go from room to room to room, they check electrical windows, appliances heating, cooling roof. And they, they give a full written report usually within a day. So if they something Tego, a lot of times, they might say, Hey, the roof needs to be looked at by a licensed professional. So just because you had that inspection doesn’t mean you can’t then order another inspection specific.
Tego Venturi: An example of that would be, they go, they do the home inspection and they note that the water’s running slow or draining slow or something like that. So they say, well, maybe you should get a licensed plumber or do a sewer scope, right. That’s another type of inspection where they put a camera through the sewer line to make sure that it’s clear,
Tracy Venturi: Make sure it’s not broken crushed, things like that. So the typical home inspections we see in our market full home, which is kind of everything nuts to bolts. And then there’s usually a pest inspection, which is typically termites and dry rot. Yep. Dry rod is a fungus, mostly on wood here. And then we, we usually see sewer line inspections, which is the camera’s scope you just mentioned. So those are the main three. If it’s a property that’s on well and septic, of course, the well and septic
Tego Venturi: That just, just a note on that. If it is a septic that’s required by state law, by the New Mexico state environment department, you have to inspect septic systems before you can transfer ownership.
Tracy Venturi: And if there’s a loan on it, the lender’s going to require the water test. Also, they’re going to make sure there’s no Cola former e-coli.
Tego Venturi: So one of the other ones we see Tracy is the radon test. You want to talk about that a little bit? And that’s, that’s a loaded one because I know, you know, it’s like, should I get it or should I not get it?
Tracy Venturi: So retina and testing is a machine they put in the house typically for two or three days that sniffs the air, basically in the house every hour and gives you a readout. And there’s a level that the government has said is acceptable.
Tego Venturi: I get a lot of questions about home inspections. Yes. And every, every, just about every real estate transaction, when there’s a purchase, you know, a buy-sell, there is some sort of inspections done. And I want to just kind of go through with you what those options are, what buyers should be thinking about more that we’ll talk more about buyers and sellers, but you know what buyers are thinking about when they’re wanting to buy and they’re going to get an inspection done first off, what’s the difference between a home inspection and an appraisal?
Tracy Venturi: An appraisal is to verify the value for the lender of the value of the home, not the condition of the home and appraiser goes through it. And if there’s some obvious condition issues that they are concerned about for the lender that could come up, but they’re really not there to do an inspection of the condition they’re looking for value. So Tego, when we are selling homes, we have the opportunity in the purchase agreement to write down what inspections that the buyer might want. But our purchase agreement also has where we don’t have to write down anything unless we want the seller to pay for it. So it’s interesting because a lot of times people say, I want to make my offer stronger and not, not list that I’m going to do inspections while you don’t have to list what inspections you’re going to do. A buyer can do any inspections they want, even if it wasn’t on the, who pays for what page of the purchase agreement. Right? So let’s talk about what some of our typical inspections are.
Tego Venturi: Can I just give you one caveat that the buyer can do any inspections they want, as long as it doesn’t damage the property and they’re paying for it, right? Is it
Tracy Venturi: That’s a good caveat? Some, some things do damage, like doing a lead paint test. You just need to get permission because they do have to scrape through a few paint layers of paint to get the chemical on there, to see if there’s lead paint. So they do need to get that approval.
Tego Venturi: That’s a very obscure inspection kind of, I would say, what’s, what’s the standard, you know what we call full home inspection? What is that?
Tracy Venturi: So typically when we sell houses, most people get a full home inspection and the full home covers everything from the exterior, the grounds, how the water slopes to towards or away from the house. It covers the roof, the exterior, and then the interior and the inspectors typically start inside the front door and they go wall to wall all the way through the property, you know, and they go from room to room to room, they check electrical windows, appliances heating, cooling roof. And they, they give a full written report usually within a day. So if they something Tego, a lot of times, they might say, Hey, the roof needs to be looked at by a licensed professional. So just because you had that inspection doesn’t mean you can’t then order another inspection specific.
Tego Venturi: An example of that would be, they go, they do the home inspection and they note that the water’s running slow or draining slow or something like that. So they say, well, maybe you should get a licensed plumber or do a sewer scope, right. That’s another type of inspection where they put a camera through the sewer line to make sure that it’s clear,
Tracy Venturi: Make sure it’s not broken crushed, things like that. So the typical home inspections we see in our market full home, which is kind of everything nuts to bolts. And then there’s usually a pest inspection, which is typically termites and dry rot. Yep. Dry rod is a fungus, mostly on wood here. And then we, we usually see sewer line inspections, which is the camera’s scope you just mentioned. So those are the main three. If it’s a property that’s on well and septic, of course, the well and septic
Tego Venturi: That just, just a note on that. If it is a septic that’s required by state law, by the New Mexico state environment department, you have to inspect septic systems before you can transfer ownership.
Tracy Venturi: And if there’s a loan on it, the lender’s going to require the water test. Also, they’re going to make sure there’s no Cola former e-coli.
Tego Venturi: So one of the other ones we see Tracy is the radon test. You want to talk about that a little bit? And that’s, that’s a loaded one because I know, you know, it’s like, should I get it or should I not get it?
Tracy Venturi: So retina and testing is a machine they put in the house typically for two or three days that sniffs the air, basically in the house every hour and gives you a readout. And there’s a level that the government has said is acceptable.
