April Newsletter 2024

'The best way to predict your future is to create it"
- Abraham Lincoln

Happy Easter! 

If you have kids, you understand the image on the left is our goal, but the image on the right is sometimes our reality!  From us Carey's; we hope you had a Happy and Blessed Easter with your loved ones!  

Market Update

To begin this month, let's take a quick peek at updated market numbers and then jump into an update on the topic I'm hearing so much about lately: Are buyer agents going away?  Along with an explanation of what's going on with this. 

Let's start. A quick market update provides EXACTLY what was expected this year; market appreciation right from the beginning of the year.  We saw +2.05% in January, +2.73% in February, and now +3.48% in March for median home prices.  

We're seeing houses take fewer days to sell and we're seeing a major shift in 'months of inventory' decreasing.  All this to say, it's quite competitive and a good time to sell your house!  Buying a house is more difficult, not impossible, but I suggest preparing yourself before you enter the market to find your new house!  

What's all the buzz about Buyer Agents?

Welcome to the chaos of lawsuits, appeals, changes in the market, and a whole lot of confusion!  

If you've never bought a house before, or aren't familiar with how the home buying process works, let me explain one simple thing: Home OWNERS traditionally pay the commission for a buyer's agent.  It's been that way for decades and it's a good thing for many first-time homebuyers or homebuyers who only have enough for their downpayment.  These commissions typically range from about 2.5 - 3.0% (although on rare occasions they might be higher/lower).  

So, if you're going to buy a house and it costs $500,000, that means the homeowner typically would pay approximately $15,000 (3%) of the compensation to YOUR agent.  

What's new now? 

Now, let's jump ahead to what's happening.  Starting this July, changes will be coming within the commission structure of buyers/sellers agents as currently listing in the co-op section of the MLS.  While this hasn't gone into effect yet, it's tough to say exactly what the effects will be, but in some cases it would appear that buyers could potentially be more 'on the hook' for costs associated with hiring their own buyer's agent.  

Homeowners Celebrate!  More $$ in your pocket, but wait...

Let me throw a wrench in this for a moment.  If you're a homeowner and you're looking to sell your $500,000 home, do you think removing all compensation for a buyer's agent will help increase the demand for your house?  In other words, if a home-buyer has to come up with a downpayment for a house AND thousands of extra dollars to pay for agent representation, the likelihood of decreased interest in your home dramatically increases.  

For this reason (amongst others), I think there's more of an initial 'extreme' reaction than what reality will prove to be true.  Commissions have ALWAYS been negotiable.  Some houses are easy to sell, some houses aren't.  Sometimes it takes months (or years) to find the right home, sometimes it happens in a couple days or weeks.  It's my opinion, but I would venture to say that homeowners will continue offering some sort of compensation to the buyer agents moving forward.  It just might look a little different...

**There's a lot more to this change coming to the market, but it's more than words in my newsletter would make sense to expand upon.  If you are interesting in learning more about everything that's going on and what's coming this July, give me a call and let's chat.  Information is power in deciding how to prepare for your future!

Coming Next Week!

Keep your eyes out for Lakewood's newest listing coming April 11th!  Kudos on an Amazing Job by Michael and Susan who exemplify what it means to truly prepare your home for the market! If you're looking for a beautiful single-story ranch style home in Lakewood, give me a shout! 

Congratulations!

Congratulations to Stephen, Amy, and the whole family!  I'm so happy that you are in your new home here in Colorado!  It was a pleasure walking alongside you through the process and thank you for entrusting me to help you along the way! 

Free Zoo Days

Don't forget, this Sunday (April 7) is the Denver Free Zoo Day!  You can click on the image to the left and reserve up to 5 free tickets now!  Tickets can only be reserved online.  It's going to be 58 and partly sunny, I hope you can enjoy a day with the animals!

Have a Wonderful and Blessed April!

Travis Carey

Broker Assoc.
M: 607.435.5113
travis.carey@compass.com

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.