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If you've been thinking of buying or selling a home, or you watch, read or listen to the news at all, you may have heard changes are coming to our industry this month. In fact, these changes take effect nationwide on 8/17, but will start to be put in place here in Central Virginia 8/6. So what are the changes, and how might they affect you? The who, what, and why... The biggest change is the "decoupling" of commissions. What the heck does that mean, anyway? For decades, real estate commissions have worked this way: An agent would list a home, negotiating and setting the commission with the seller, and a portion (usually half) of that commission would be paid from that listing brokerage to the buyers' agent and their brokerage. This year, a class action lawsuit filed against the National Association of Realtors and a few larger players in the industry, was settled. The suit was brought by some home sellers who felt that they had not had any choice to negotiate or change what they were paying to the agent who brought the buyer for their home. As a major part of this settlement, the National Association of Realtors agreed to change the way buyers' agent commissions were paid- "decoupling" them from the commissions negotiated by the listing agent and the seller. Forever (at least during the 21 years I've been in real estate), agents have been able to see the buyer's agent commission that is being offered on a particular home in the MLS (multiple listing service.)  Effective 8/6 here in Central Virginia, that will no longer be the case. It's not that commission won't be offered. In some cases it will, and in some, it may not. It just cannot be visible in the MLS anymore, effective August 6, 2024. Now, having said all of that (which I hope makes sense) Here's how it might affect you: Before you are able to view a single home, you will need to sign a buyer brokerage agreement with an agent. This is a change for many people. While buyer brokerage agreements have been "a thing" in Virginia for years, to say that it was a loosely enforced rule is an understatement. This agreement lays out what the agent is going to do, what you are obligated to do, and hopefully, brings some clarity to how and what we get paid in the process of your home purchase. This fee is, and always has been, negotiable, and there are a variety of options available in the market. It also states quite clearly that you, the buyer, are committing to pay this agent you're retaining at the end of the transaction. Somehow, and in some way. HUH? When you decide you want to purchase a home, you should have a "buyer's consultation" with the agent you are thinking of working with. You may even interview more than one. That agent(s) should review not only the buyer brokerage agreement, but also how they work, what they're going to do for you, and give you clarity on what they charge for their services. This is not new. (For me, at least.) Here's the NEW part. Previously, as these agreements were only loosely enforced, and in many cases, signed only after you might be under contract, most buyers didn't understand that they were liable for that buyer's agent commission if the seller/listing broker was not paying it. It was also often written to read "buyer's agent accepts whatever is offered in MLS," so buyers' agents didn't always have to have those icky money conversations with their clients, because they could clearly see the commission on every house in MLS. So how is this NEW?? The new agreement does not have that option, as there will be no commission listed in MLS. The commission must be discussed and agreed upon before any home is shown. Because while commission has been "paid by the seller" for years, we all know the seller is not paying anyone anything until the buyer actually buys the home. So who's really paying? Yep. The buyer. (So yes, it seems like it's changed, but in many ways, for many people, it won't make much of a difference.) Agents will not be able to show preference (in theory, at least) to homes that are offering higher commission. I've never done this, but I'm sure it's done. Does this mean I'm going to have to pay my agent if I'm buying a home?? Maybe. In most, or at least many, cases, there will be all or some commission still offered by either the listing brokerage (as has always been the case) or the seller. This may be offered in the form of a straight payment of commission, or might be negotiated in the offer in the form of closing costs that you can use to pay your agent. In the event the seller is paying less than you've agreed upon with your agent, you will have the option to either make up the difference or ask the seller (in your offer) to pay more than they've initially stated, either directly, or to you through concessions (closing costs). If the news, etc, has led you to believe that if you are selling, you no longer have to pay a buyers' agent, that's both true and not true. The truth is, even before this, you could have offered as little as $1 to the buyers' agent, so technically, you never "had to" pay a buyers' agent. Is that a good idea? Well, It's probably not the best way to get the most people into your home, because IF people are working with a buyers' agent, which most still will be, they will have to pay their agent out of pocket if you are not. That means, if they don't have the cash to do so, they may have to pass on seeing your home. What if you don't have the money to pay your agent and the seller won't contribute/help?? Unfortunately, this will likely be a problem in some circumstances, and one of the concerns I have about the whole situation, especially for first time or low cash buyers. If a seller refuses to contribute, we can always ask them to increase the price to allow for the concessions in the contract to cover your buyer's agent, but if not, if you cannot pay your agent, you may need to find another house. (This is definitely one reason why most sellers will likely offer some compensation). "Okay, so if I want to get the best deal on a house, should I just go to the listing agent directly, and represent myself?" Not so fast. There are a couple of things to remember here. First, and perhaps most importantly, the listing agent represents the seller, first and foremost. They are hired to get the seller the best and highest offer, with the best terms, for the seller. They have no duty to you, other than to be honest (not lie) and at best, facilitate. It's also good to be aware that the agent has likely made an agreement with the seller that in the event someone comes in with no representation, they'll make more money. So your savings, or the idea that you can offer less to the seller because they're saving money, may not even be a real thing, and you will have had no representation. "But can't they do dual agency, and represent both of us?" Weeeelllll, they can. It's legal. (For now) But think about it- they're working for the people who want the most money, and the best terms for them, and now they're going to also work for the people who want to pay the least amount of money? Hmmmm. (Oh, don't forget, this is not free, either.) Here's the thing: as a dual agent, the agent usually makes more money, but they now can't advise you, the buyer, OR the seller. What?? If that sounds crazy to you, join the club. Seems like the agent in this scenario is working for no one so much as themselves, right? That's exactly why I don't like it, and why I have never done it.   Just want the high points with no yakity yak?  1- Buyers will need to sign a buyer brokerage agreement before they view any home. 2- As commissions are "decoupled," you as a buyer may have to pay your buyer's agent, as the seller may not always offer concessions in the amount you've agreed on with your agent. Make sure you understand what you've agreed to. 3- Yes, you can go to open houses without having a sign an agreement. (That only comes when you have a real conversation about the property.) 4- Sellers will still be able to offer compensation to buyer brokers, and in many/most cases, they will.   My take? This will be a confusing, and likely slightly rocky, time, but change is often where good things happen. When it all shakes out, I do think it will be good for everyone- more clarity, more education, and better service for consumers. What questions do you have? Let me know.        

The idea of the slow slow slow market of summer has changed over the past few years. Those cycles we could always count on like clockwork had already changed a bit, but the pandemic really wiped them off the map. That means that even though July is historically slow, now it's definitely less so, and there are fewer extreme peaks and dips seasonally. Soooo… that being said, here's what's going on in Metro Richmond real estate this summer. Despite the fact that rates have been bouncing around 7% for months (!), we're still seeing lots of sales and lots of activity. You may have heard me say that a balanced market is when we have 6 months of inventory, and it's been a while since we've been there. As of June, we are at 1.6 months. With the exception of a few months last fall, this is the most inventory we've had since before the pandemic- that's good news, especially if you're buying. More inventory means more choice, and less demand. In many cases, we're still seeing multiple offer situations, but generally that is on homes that are “DONE." (That means there are opportunities out there for buyers who don't have to have that perfect, brand new renovation!) What else does it mean? That if you're selling, the closer you can get your home to DONE, the more money you're likely to net, and that's good too. On average, we are still seeing homes selling in the Metro Richmond area for 100% of the list price, with no noticeable average deviation. That is based on the data available from our MLS. Anecdotally, though, I think those numbers are slightly skewed because I'm seeing many more price reductions (on average, our MLS is showing around 300 reductions per week for the whole of the summer so far.) That means that while the home may sell for 100% of the list price, it doesn't mean that it sold for 100% of the *original* list price. Again, those homes that are "show ready" are the ones that are selling for those higher prices. Want more customized information to your neighborhood, home, or where you want to call home? Let me know, and I can give you a personalized market report with projections.

Are you wondering how much your home is worth in the current market? Maybe you want to sell or maybe you need the value for something else (refinancing, divorce, etc). Whatever your situation, don't rely on those online calculators/estimators like Zillow, and the dozens of others out there. There are so many you could probably get 10 different values for your home in 10 minutes. The problem is that they can be 10%-30% off depending on the type of home you have, where it is, the comparables around you, and so much more. If you are thinking of selling, the best way to get an accurate value is to talk to an agent in your area. Of course, if you're in the metro Richmond area, I would love to help you. Remember, Zillow doesn't have any idea if you've renovated your kitchen six months ago. So whether your house is better or worse than the neighbor's homes around it, or the comparables that have sold around it, you want to make sure that the information on your particular home is accurate, and you don't accidentally overprice (or underprice) it when you go to market. If you're looking at another type of situation, where you're not going to sell your home, I would recommend getting a valuation from a licensed appraiser. They're going to give you a more official document that is going to fly in court or a divorce case. If you're looking to refinance, the lender is going to make you get an appraisal and that's going to be what they're going to base their information on. So there are a few different reasons why you might want to know the value of your home, but if you seriously want to know the value, don't rely on these online estimators because they are often incorrect. If you're in the Richmond metro area, give me a call or send me a message. I'd love to help. I'll come take a look at your house, and give you an idea of where it stands in the current market. If you're in another area and you need a licensed agent there that's going to do the same, let me know. I'm happy to put you in touch with somebody. I have connections all over the country.

It's not really summer for me until I make Gazpacho. Is this one "authentic authentic?" No. Is it the one that I started making when I owned my cafe/catering business in Carytown, and I've made it pretty much every summer since. It's light, pretty dang healthy, and seriously addictive. Let me know if you make it! GOURMET DELIGHTS GAZPACHO Serves: 6 Prep time: 20 minutes Start to finish time: 1 hour, 20 minutes 1 whole cucumber seeded (peeled if tough skinned) 1 whole green bell pepper 3 cloves garlic (or to taste) 1/2 yellow onion 16 ounces good quality canned tomatoes 2 Tbs tomato paste 3 Tbs olive oil 2 Tbs red wine vinegar 1 Tbs lemon juice 1 Tbs Worcestershire sauce 1 1/2 tsp salt 1 tsp Tabasco sauce (or to taste) Fresh cracked black pepper to taste 1/12 cups V-8 juice Place first 4 ingredients in the bowl of a food processor. Don't puree but gently pulse. Remove to a large covered bowl or jar. Pulse next 6 ingredients, again gently, leaving tomatoes in small chunks. Add to container with chopped vegetables and shake or stir to blend. Let sit in refrigerator for a few hours or overnight to allow flavors to blend. Enjoy!

Do you make a seasonal bucket list? (Do you even know what I'm talking about?) I can't remember exactly when I started doing it, but I know it was for fall. Basically, I love summer-the lushness, the green, the vibrancy of everything, and I find fall a little depressing. So one year I decided I'd think of all of the things that I love about fall, make a list of them, and focus on those things, rather than being depressed about things turning brown. Now I do them for every season. It gives me something to look forward to, and makes me focus on the things that I truly love, instead of just letting time slip by. So, without further ado, here's my Richmond Bucket List... (What would be on yours? For a printable checklist, click HERE!)

All the things to know about what you see in the news about the real estate industry And wow. There has been a LOT of news out there lately. You’ve probably seen the headlines over the last week or so, about the “seismic” changes coming to the real estate industry. Lots of info out there feels an awful lot like clickbait, to say the least, and in most cases, it's quite confusing and misleading. Here’s a little recap of what’s happened, what’s happening, what’s (likely) to come, and most importantly, how it might affect you if you are thinking about buying or selling real estate. This is all facts, with my thoughts in italics... What's happened: Over the past few months, there have been a couple of class action lawsuits brought against the National Association of Realtors and some of the larger players in the real estate space. In short, a class of homeowners in Missouri allege that they had no idea that they had choices when listing their home, did not know they could negotiate, and felt that they paid inflated fees when listing and selling their homes. While the suits were going on for a while, the big news came in the last week, when the National Association of Realtors agreed to settle this case. IF the settlement is approved by the court, they've agreed to pay out $418m over the next four years, AND make some substantive changes to the way the system works, and the way agents are paid. The changes that will go into place, should they be approved: Compensation offered by sellers will no longer be visible in MLS. What this means: Up to now, commissions have been distributed this way- Sellers list their home with a listing agent for a fee (for the purposes of this exercise, we're going to use an imaginary number of 10%). FROM that fee, they agree to offer compensation to the buyer's agent. (In many cases, half, so in this scenario, from the 10% listing fee, each agent gets half at closing.) This compensation offered to the buyer's agent has always been visible in MLS, and as is to be expected, there are agents who have been accused of "steering," or taking buyers only to see homes that pay them well. This will go away to eliminate any real or perceived steering of clients. Buyers working with a buyer's agent will need to sign a contract with that agent prior to viewing any homes. This is really only a variation of what's going on now, and has from years. You should really always have a very good idea of how your agency relationship works- what your agent does for you, how they get paid, and who is paying them. Part of this is getting it all in writhing. This covers the agents, yes (because we can't and don't work for free), as well as the buyer, who better understands the buyer agency they're in. What these things mean and where I think the media has things a little twisted: There is lots of news out there saying that "The 6% Commission is Gone!" and while that is definitely attention grabbing, it's a bit more nuanced than that. First and foremost, commissions are now and have always been negotiable. Now, this doesn't mean that the agent you want, or the services that you know will fit your needs, will cost what you want to spend- but there are many, many options in the marketplace. I liken it to a little black dress- you can buy one at Walmart, Nordstrom, or Saks Fifth Avenue. They are all a little black dress, but they are definitely not the same price, nor the same quality. There may be a time and a place for each option, but they're not interchangeable.  Our industry was definitely ripe for some change, so this will definitely bring about some interesting changes and business models.  Sellers and listing agents will likely, in many cases at least, still offer buyers' agents commissions as part of the transaction. While there will need to be a contract in place between buyers' agents and buyer clients that states the buyer will pay the commission should none be offered, my expectation is that sellers who want to get the most qualified buyers in there homes will indeed still use this as a form of incentive.  In the cases (and there will be some) where the sellers/listing agents are not offering any form of compensation for the buyers' agent, the buyer will have options on "how" to pay for their representation. It can be negotiated in the contract for purchase (basically asking the seller to "pay"), or the price can be bumped up just a bit to include it. As it must now be made clear to sellers that they do not NEED to offer compensation, one of my largest concerns is that there will be occasions where first time and/or inexperienced buyers will feel like they cannot afford buyers' representation, when in most cases, they can't afford not to. By going directly to the listing agent, they'll be working with the agent who represents the seller, and they'll have no one on their side. (And trust me, that is seldom good for the buyer, even with a very ethical agent.)  Another expectation/concern I have as we navigate through these changes is that while the headlines make it seem as though there will be a big reduction in the price of houses, name me another circumstance where the cost of "goods" goes down and the price of the item to the consumer drops. In other words, I have every expectation that if the neighbor sold their home for $400,000 while paying commissions to both their listing agent and a buyers' agent, the "new" seller is not going to sell their home for less because they're not paying the buyers' agent compensation. They're going to want to list at the same price their neighbor did.  I could go on. But in short, there will be lots to navigate over the next year or so. Please feel free to let me know if you have any questions. The headlines are confusing, so if you're stumped on what's going on, reach out. I'm happy to answer anything you might think of. Onward!      

So if you've followed along thus far with all of my videos about appraisals and how they might impact your transaction, thank you. This is the sort of wrap-up. I'm going to talk about a couple of frequently asked questions, commonly asked questions, and maybe a few interesting experiences that have happened with appraisals, that I don't know, kind of throw a curveball, or give you a little bit more food for thought. So one of the commonly asked questions is, if I'm selling my home, and the house contracted for $450k, the appraisal came in at $425k, does that mean I'm losing $25,000? Well, remember, you never had the $450k. So that's sometimes the data just is what the data is and unfortunately, or fortunately, the appraisers don't really consider the the vibes of the house, the vibes of the deal. So just because you are the purchaser and loved the house enough to be willing to pay $450k, if they don't love the house enough to be willing to pay $450k, and they also have a suitcase full of cash to match their vibes, it doesn't really matter, because most people who are getting a loan are going to have an appraisal, and that appraisal is going to be sort of the buck stops here of the value of the house. So yeah, you didn't get what you wanted to get maybe, or you didn't get what you were thinking you were gonna get. But odds are, you're not going to have a drastic difference in another set of data or another appraiser coming with another buyer, perhaps, if that buyer too does not have a suitcase full of cash to bridge the difference between $425k and $450k. Does that make sense? So let's look at the flip side of the same coin and let's say I'm the seller, and I have my house contracted with a buyer for $450,000, we get the appraisal back. And lo and behold, it came in at $475k. Am I clicking up my heels and saying, oh my gosh, I just made an extra $25,000? Not so fast. So this is great for the buyer. In most cases, the buyer does then have a little instant extra equity beyond what they had thought, but at the end of the day, know that price only shifts downward. Should the appraisal come in low, it never goes up. So while it might be a little frustrating, and you might feel like you lost money or left money on the table, remember, you didn't have that money to begin with. This is just kind of a numbers accounting situation and in many cases, you're not even going to see the appraisal. So don't get real tied up in what the lender or the appraiser determines what the value of your house is. If it goes beyond the sales price that you've agreed upon, just remember that you agreed upon that sales price and unless you have other people who were willing to pay more for your house, this is what you agreed to and this is what the open market was willing to value your house at. Thanks for following along if you have any other questions about appraisals or how they can affect your transaction, whether you're buying or selling, drop in the comments or reach out to me and I'd love to help you get your questions answered so you're more well informed when you're ready to buy or sell your home.

Okay, so let's say you got a contract for $450,000, but the appraisal came in at $425,000. Maybe you don't have $25,000 extra to throw at it. If you're the buyer, you're trying to get creative and think of other solutions. Maybe you go back to the seller and you say, hey, you know, well, we're able to do $435,000, but that's all we can do. We'll put $10,000 extra towards it, but that's all we can do. That's all we're able to do, willing to do, whatever. Maybe the seller comes back and says, yes, that works. Maybe you split the difference. Again, in real estate, as long as everybody agrees almost anything, as long as it's legal, is on the table. Everybody just has to agree and it all has to be in writing. Follow along for more appraisal tips, tricks, understandings, commonly asked questions, and situations that might arise whether you're on the buying end or the selling end.

So what do you do if there is an issue with the appraisal? Let's give an example. You purchase a house for $450,000 and the appraisal comes back and it's $425k. Now, what do you do? Well, in our contract, and again, this is the Central Virginia contract. So I'm in the Richmond area, surrounding counties, we have our own particular contract, the contract where you are may be different. In our contract, it states that within five days of receiving that appraisal, the purchaser has the right to request in writing, whatever sort of resolution they would like from the seller and that can be a number of different things. First off, they can request that the price be reduced. So if the house is $450,000, that's what the contract price is, the appraisal comes in for $425k. Maybe you're the purchaser and you don't have an extra $25,000. You may have to go to the seller in writing and say, 'Can you please reduce the price to $425k'. Now they can say yes, or they can say no, or they can present a different option. But if you cannot come to a resolution, then all parties can walk away. No harm, no foul. Another resolution might be that, say you were in a competitive situation when you wrote the offer and you wrote the offer for $450k. There were a number of other offers, you do have the cash to back it up, and you say, oh rats the home appraisal came in at $425k, but we really want the house. We feel like it's worth $450k. It's worth 450 to us and we're willing to throw an extra $25,000 in there to bridge that gap. Obviously, you need to have 25,000 extra dollars. Or in some cases, you can kind of maneuver your loan a little bit to come up with a little extra cash, but that's between you and your lender. So the buyer can actually pay the cash difference, the lender doesn't care. What the lender cares about is if they're giving you 80% of the value, they're only going to give you 80% of the value that the appraiser says it's worth, period, end of story. They're not going to give you any extra because you really liked the house because it was a competitive situation. They don't care because it's the bottom line number for the lender and that is ultimately who the appraiser works for.

So maybe you've followed along with my appraisal series, maybe you're in a transaction, maybe you're contemplating what might happen in a transaction and you're thinking, but Cindy, we don't want to put an extra $10,000, $20,000 in a house if it didn't appraise. What do we do now? Well, obviously, nobody wants to feel like they're overpaying and I think overpaying is a real relative term when we are in the market that we've been in for the last few years really. Overpaying really is a nebulous idea. If 10 people want the house and the house was listed at $410k, and it gets bid up to $450k, and there were multiple offers. You competed against nine other people, you got the house at $450k. Good for you. You won. But now the appraisal comes in at $425k and you don't know what to do. You don't have an extra $25,000 to get you there. So there are a few options. And I've talked about some in other videos. But what if you want to dispute the appraisal? What if you feel like hey, this is not right. I feel like this house is really worth $450k and I want to make sure that my deal doesn't fall apart because we love this house. Or maybe you're the seller and you say listen, I had 10 people want to buy my house, and fair and square, we got bid up to $450k. Now some person is coming in and telling me and the buyers that it's only worth $425k. You're really throwing a wrench in my plans. What do you do in those cases? Well, you can dispute an appraisal, but it is a process. Because the lenders really want to make sure that it's an unbiased sort of set of data and an unbiased opinion of value, they're not real keen on the agents, whether listing or buyer's agents, or the buyers and sellers getting real involved in that process and trying to manipulate that data. Because again, unbiased means they're looking at data, and the data is the data. But I have had situations where we were successfully able to dispute the appraisal. It doesn't happen often though. You really have to have, again, data to go back to the appraiser and say, here is a comparable that you did not use. Why didn't you use this comparable? It almost never works, because these people do their job and the appraisal has to be reviewed by someone else in their office as well. It's not a one person saying check, yes, this house has, you know, everything that it takes to be a $450,000 house. It really has to have all of the supporting information and it gets reviewed a number of times before that stamp goes on to say this is complete. So if you do have comparables that show something or when you look at the appraisal, they have missed something that is an integral part of your house, it's got a brand new roof, but they noted that the roof was old because maybe they made a mistake or you know, they're human. So maybe somebody didn't have all their coffee that day and thought the roof looked old. There is a process, through which it's a little different with every lender, you can dispute the appraisal, but just remember that odds are it's not usually going to go in your favor. So you may need to look at some of the other options to work that appraisal out. If you have any questions about the appraisal process or the appraisal dispute process, drop them in the comments or reach out to me. I'd love to help you. Figure out how you might deal with such an occurrence. But if you're currently in a transaction, I'm going to say reach out to your lender, your agent or your attorney and figure out how to best deal with that situation.