Real Estate News and Commentary

March 21, 2025March 21, 2025

Choosing a Realtor

Real Estate Deep Dive Podcast – How to Choose a Realtor

How are buyers and sellers choosing a Realtor?

A National Association of Realtors survey once asked that same question. Most buyers and sellers responded they hired the agent they first encountered. Although the logic may seem counter intuitive, the means by which home buyers and sellers encounter their agents may provide an explanation.

Both home buyers and sellers reported that the top means of finding their real estate agent was through a referral from a friend or family member.

Repeat business was the second most frequent way indicated in choosing a real estate agent; meaning that the home buyer and/or seller hired the agent that assisted them in the past.

The internet was also indicated as a way of finding a real estate agent; however it was not the top way of meeting an agent.

Regardless of how you find your real estate agent, it is probably a good idea to find out more about them before they list or sell your home. A conversation about their experience, knowledge, and expertise is probably a good way to start.

Additionally, knowledge about the local market is extremely important as well as market trends.

Many agents have specialized knowledge for specific types of transactions, such as short sales, 1031 exchange, divorce, etc). If you need someone with specialized experience, make sure the agent you choose has the knowledge and resources to make your transaction close smoothly.

Many buyers and sellers still call the big-name agencies, even though your transaction relies on the experience and skill of the agent you hire (not the company name).

The bottom line: Asking friends and family for referrals as well as calling the agent you previously worked with is a good way to find a real estate agent. However, vetting the agent to make sure they’re a good fit for you can be achieved by asking the right questions before you hire them.

Search homes!

By Dan Krell
Copyright © 2025

Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

March 20, 2025March 20, 2025

Market Update Podcast

Podcast Market Update

Housing Market Update February 2025

Washington D.C. metro area new pending sales dropped 9.5% year-over-year with 3,485 contracts in February 2025. This is the slowest pace of February contract activity since 2008.

Home sales are generally lower because new listings continue to lag behind the pace of demand. Listings were down 2.6% compared to a year ago.

At the end of February, The number of homes for sale increased about 30% year over year. Although inventory has expanded across housing types, only condo active listings have recovered compared to their pre-2020 levels.

The median sold price in February 2025 was $597,000, a 6.6% increase compared to last year. Prices have risen about 40% over five years in the Washington D.C. metro area.

What’s your home worth?

By Dan Krell
Copyright © 2025

February 13, 2024February 13, 2024

Low inventory home buyer strategies

I’ve written about the low housing inventory phenomenon many times over the course of a decade. I’ve also written about low inventory home buyer strategies in the past. Yes, this has been an issue for that long, although it has ebbed and surged. One consequence has been that many potential homebuyers have stayed away from the market, waiting for conditions to improve.

Low inventory home buyer strategies

Housing market conditions have left many homebuyers frustrated over the last few years. The outlook isn’t that much better this year. Housing inventory shortages will likely continue to hold buyer activity in check.

Although it is expected that many more homes will be sold this year compared to last, the pent up buyer demand will impact the average number of homes on the market at any given time. In plain language, on the current trajectory homes will continue to sell quickly and at appreciating prices.

Are you one of those still waiting for the housing market conditions to tip in favor homebuyers? Or are you just entering the market? Regardless, low inventory home buyer strategies, such as being prepared and proactive, will help you on your home buying journey.

If you’re paying cash for the home, make sure you have access to your funds (or prepared to get access) prior to entering into a contract. Having assets doesn’t necessarily mean it’s liquid or easily accessed. Ask for the process to get your funds from the institution holding your assets.

If you’re getting a mortgage, get preapproved. Having a preapproval will not only help you create a buying budget, it will give you a head start on the buying process. The preapproval letter attached to your offer tells the home seller the bank will give you loan based on the information they reviewed.

If you’re planning on working with a real estate agent, choose your agent before you start visiting open houses. Not knowing if and with whom you’re working can create an unnecessary delay on making an offer. Delays can put you out of the running if there is a tight deadline for offers.

That said, be prepared to make an offer quickly. Communicate to your agent your offer in price and terms. Most likely, the agent can quickly send the offer to the listing agent by having you electronically sign it.

It’s likely that your first (or subsequent) offer won’t be accepted, especially in a multiple offer situation. Always have a plan B, C, and D, which may include looking for off-market homes for sale, and the possibility of renting.

By Dan Krell
Copyright © 2024

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September 5, 2023September 5, 2023

Home sale gimmicks?

Over the past fifteen or so years I’ve written a few articles about home sale gimmicks. And not surprisingly, it’s another year with a new real estate gimmick. In the past I’ve explained and debunked the effects on a home sale of various ploys such as under-pricing, creating buzz, throwing the block party open house, etc, etc, etc. And yet it just doesn’t seem to end. Instead of being honest and straight forward with a solid common-sense strategy, some real estate agents are just good at devising ploys to entice unsuspecting home sellers to list with them.

This year’s shiny item is a nationwide “auction” site that is marketed to sell a home fast for more money. It is used in tandem with the MLS. This is how it works…

The home is listed as usual in the MLS with descriptions, photos and all the accoutrements. The home is simultaneously listed on the “auction” site. The MLS listing has the “list price.” Buyers and agents are redirected to the “auction” site for price and terms that are acceptable to the home seller. This gimmick strategy is sold as encouraging multiple offers on the home. Agents make their offers on the site. The seller chooses an offer and goes under contract.

This sounds like the old tried and true MLS home sale listing with extra steps!

I get it though. The old tried and true home sales model is boring. Post the listing in the MLS with your price and terms. Post terrific photos. Maybe even add a floorplan and a video. Possibly have an open house. And this year (2023), with the average days on market being seven, select one of the multiple offers you’ve received and ratify the contract.

Do gimmicks get your attention? Do you utter some oohs and aahs? But does it really make sense?

In my experience, most home sellers want to sell their home quick and for top dollar. Research into some home sale gimmicks have concluded that it could actually harm your sale by either getting a lower net price, longer time on market, or worse – a lower net price and a long time on market!

For a solid result, stick with the tried-and-true home sale experience. Don’t rely on gimmicks that promise activity on your listing, higher sale prices, etc. Work with an experienced licensed real estate agent who can present a comprehensive and coherent home sale marketing plan.

By Dan Krell
Copyright © 2023

August 23, 2023August 23, 2023

What’s your home buying strategy?

If you’re thinking about buying a home, you may be unaware of what awaits. Your expectation may not be exactly of what is really happening in today’s housing market. I understand that your beliefs and expectations are probably based on what you have read or heard. But the current housing statistics at face value don’t tell the story. It’s actually the cause of these stats that are telling and the force behind what is actually happening. Once you understand this, you can decide on your best home buying strategy.

First, let’s look at July’s housing statistics just published by the Maryland Association of Realtors (mdrealtor.org). Existing home sales decreased 22.6 percent from the same time last year. Homes that went under contract (Pending Home Sales) decreased about 8.3 percent from the same time last year. These home sale stats sound like what was being reported in the fall of 2007 (and you know what followed), especially since the forwarding looking stat Pending Home Sales decreased about 8.3 percent compared to the same time last year. At face value, you might conclude that such a huge reduction in home sales means that home buyers soured on the market (possibly because of the increase in mortgage rates you’re hearing about).

But home sale prices are increasing! The average home sale price increased about 3.2 percent compared to the same time last year, which is about $486,385.

So, what is happening?

New listings decreased about 34.5 percent compared to the same time last year! Active home sale inventory decreased about 35.7 percent compared to the same time last year! Basically, its supply and demand. When there is a shortage of a product when there is a demand, buyers bid up the price. The fierce home buyer competition is the reason why the median days on market for a home is only 7 days.

If you’re thinking that you can easily find your dream home and get a good deal, stop and do your due diligence. Know that you will be up against aggressive home buyers who are likely willing to bid up the price as well as waiving various contingencies to make their offer stand out.

What’s your home buying strategy strategy?

Before you go out and make an offer on home, take stock in what you bring to the table. Have you been pre-qualified for a mortgage? If you’re paying cash, is it liquid? Needing extended time to liquidate or bring funds from overseas is usually a non-starter for a home seller. Think about getting a pre-inspection so you know what you’re getting yourself into. Find a seasoned savvy real estate agent to help you navigate the market.

By Dan Krell
Copyright © 2023