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By Mary Lynne Gibbs • 2018 Director

Moving often rates among the top stressors in life. So, when various start-up companies say they have invented ways to make buying and selling homes hassle free, we, as REALTORS, often want to know more. Because isn’t it our job to make sure our clients have a pleasant and smooth experience during these kinds of transactions? 

But let’s remember that our job is also to protect our clients during these transactions. As we often say, “they don’t know what they don’t know,” and our job is to educate buyers and sellers. These new options to buy and sell a house with the click of a mouse – or a tap on a phone – may be convenient, but, as in many things in life, convenience often comes at a cost. I did some research on one of these companies that is active in some our state’s largest cities and found that at least one of these start-ups has charged fees of 8 to 10 percent, and sometimes as high as 12 percent. Clients have the perception they are saving 6 percent without working with a traditional REALTOR, but often they aren’t.

In addition to possibly higher fees, sellers may be leaving money on the table that they don’t know they are leaving. Like I said before, “they don’t know what they don’t know.” If they are in a hurry to sell, perhaps a click and sell method is beneficial to them, but in most cases, people need to get the most money for their homes. As REALTORS, we bring experiential knowledge that sets us apart. Algorithms used by these technology-based companies can’t touch, taste, smell or put their eye on the property to determine its value like we can. 

Even a former REALTOR, who had years of experience but had let his license expire, did not know how much his home was worth when it came time to sell. Factors such as low inventory and location allowed us to push the market and we got him $100,000 more. If he had used a click and sell type of company, he would have left that on the table unknowingly. How is that helping the consumer?

In everything, there is going to be a bigger, better model that touts itself as being more efficient and saves money, and we in the industry must be prepared for that. But we also must be ready to educate and protect our clients about the potential costs of these click and sell methods. More than ever, be ready to show clients how using your skills as an experienced and educated REALTOR is essential. And if the transaction does turn out to be one of life’s stressful events, they can buy multiple massages with the money they did not leave on the table! 

By Mary Lynne Gibbs • 2018 Director

It was May 23, 1973, when my parents closed on their home and our family moved back to Austin. The final sales price was $34,582.75. Wow, how times have changed since my teenage years.
  Fast forward to May 2018, when the Austin Board of Realtors reported the median price of a home in our city at $389,000, a figure fewer and fewer can afford.
   Recently I attended a mid-year economic forecast with speaker David Tandy, president of Texas National Title, who stated that if home prices continue to increase at 5 to 7 percent per year, combined with our population growth, then affordability challenges will continue, and rentals will grow.
     As REALTORS we all are feeling this impact and realize that more and more of our first-time home buyers are seeking housing on the outskirts of Austin due to affordability. The challenge for them is often whether to accept a longer commute into work or trade off with less square footage closer in.    
   Affordability also is taking a hit due to interest rates, which had been historically low but are now rising. Communicating this shift with our buyer prospects may encourage them to act more quickly to enable them to benefit from homeownership sooner rather than later.
   While native Austinites who have witnessed home prices skyrocket may feel as though housing affordability is diminishing, Austin is reasonable when compared to the national market. According to PayScale, our city is 3 percent below the national average cost of living and the cost of housing is 15 percent below the national average.  
   “In many other large cities, the cost of housing is well above the national average, regardless of the overall cost of living,” according to PayScale. “It’s no wonder that Austin is one of the most popular cities in Texas.”
 So while home prices have risen astronomically over the past 45 years, smile and realize it could be worse!

By Mary Lynne Gibbs • 2018 Director

Closings are typically the time to celebrate and are often topped off with champagne. This is not always the case when couples are divorcing. Our fiduciary duties as professionals are to put our clients at ease; making sure to treat both spouses or soon to be ex-spouses equally. Remain neutral, avoid giving relationship advice, remember you are not a marriage counselor, but have a willingness to listen.

The closing may be the final act in dividing assets in a settlement agreement. Separating marital assets should be left in the hands of your clients and their attorneys. Remember REALTORS shall not engage in activities that constitute the unauthorized practice of law as per the Code of Ethics. Obtaining a copy of their divorce decree, open communication with their attorneys and the title company will help ensure a smooth transaction. Utilizing your title resources for a preliminary closing disclosure or estimated net sheet when taking the listing will allow transparency and prevent surprises at closing. Ask your clients how they would like to be communicated with and copy both on all correspondence. A “paper trail” is always a good habit so nothing gets lost in translation.

Divorcing couples with children can be the hardest. Paying extra special attention to them will brighten their day. They of course did not wish for these changes in their lives. Will both parties be able to purchase or only able to lease? Is there damaged credit? Housing may be smaller and less affordable based on one person’s income. All these things are to be taken into consideration.  

The house was once filled with memories, dreams and traditions; the adjustment to change can be very emotional. One spouse may have moved on in another relationship and the other one remaining in the house may have a lot of anger festering with additional responsibilities such as having the house on the market and keeping it show ready. Some tips to help with the sale may be to incentivize the seller with offering housekeeping services paid by the party that is ready to get the house sold or offering financial gain for a good showing.  

Scheduling separate signings at closing may be best for some and less stressful. Divorcing couple representation can be twice as much work and double communication yet certainly worthwhile.