Happy September,
After a month of working in the post-NAR Settlement world, I couldn't resist a new top 10 list.
Top 10 Things People Think Realtors® Do:
- Open doors
- Get botox
- Vacation
- Buy fancy cars
- Jet set to appointments
- Provoke office rivalry
- Play pickleball
- Date other realtors
- Lunch
- Have an easy job
Top 10 Things Realtors Really® Do:
- Schedule tours for buyers. Sans a door butler, we do open doors.
- Get botox. Dam straight.
- Plan refundable vacations.
- Fill our cars with lightbulbs, smoke detectors, snacks, keys, painkillers, paint samples, air purifiers, flashlights, dog hair and cleaning supplies. Did I mention painkillers?
- Fly coach on Southwest.
- Dance at the office.
- Play Pickleball with branded swag to let everyone know they're agents.
- Have a "No Realtor" filter on dating apps.
- Eat on broker's tour or in the car.
- Consider working at Trader Joe's after our first year.
But seriously. Realtors® are trained professionals who help you navigate the ever-changing real estate landscape, including statutory disclosures, home insurance, lenders, legal regulations, inspections, appraisals, point of sale ordinances, escrow, and more. We're hustlers; our job is to save and make you money.
The Disconnect:
- The problem is transparency. Most people don't understand what buying or selling a home entails and don't want to learn. They just want to buy or sell their home. As Realtors®, we need to find a way to explain what we do without sounding whiny or self-righteous. To that end, Red Oak Realty is one of the early beta testers of a new platform called Rayse.
- When introduced to Rayse, I was fangirl #1. James Dwiggins and his brother Christian Dwiggins are brilliant and know how to launch, fund, operate, and scale a business. When launched publicly, Rayse will automatically track agent activity and show progress to clients in real-time. Look for more information soon on how Rayse will help buyers, sellers, and Realtors® align.
- October 5th, 2024: Pretzel Necklaces Oaktoberfest: Make pretzel necklaces with Ilan Penson and I at OAKtoberfest (Octoberfest in Oakland) on October 5th from 12-5 pm. We'll be at the Diamond Library parking lot on Fruitvale, across from the Fruitvale Safeway.
- Downsizing and How to Buy Before You Sell: We're finalizing the details of this event, but you can register here for now. The first time we held it, we had a great turnout. Come learn about how to make downsizing stress-free with information, food, and drinks.
At an open house last week, a couple with a small child arrived, and the 6-year-old channeled Nathan Lane to announce himself, "And I'm Jimmy!" Jazz hands and all. He proudly introduced the Open House Scavenger Hunt list. The list was simple: Tagine, 2 pigeons "talking," a snake, a non-smartphone, and 3 or more people playing a sport. My first instinct was to sign an acting deal with this kid, but instead, the family viewed the house, I drew my best version of 2 pigeons talking and placed it front table. It's hard to describe the joy on Jimmy's face when he found the picture, confirmed they were speaking "pigeon" and checked it off the list. He then told his dad to save it in a special place, e.g. dad's pocket. Experiences like this are why I love my job.
Finally, thank you to my friends and former clients for their referrals. If you know someone who is thinking of buying, selling, or investing in real estate, please reach out.
With Gratitude,
Marissa
- P.S. If you have questions or need recommendations for anything home improvement, such as a handyman, gardener, electrician, roofer, painter, solar provider, dog sitter, etc. - reach out!
- P.P.S. Are you having problems with your home insurance provider dropping you or insisting you remediate your home? Reach out!
REAL ESTATE CHANGED ON AUG 17 - HERE'S HOW IT AFFECTS EAST BAY BUYERS AND SELLERS
The real estate industry experienced one of the greatest changes in its history on August 17th, 2024. It was the result of a major legal settlement in a series of class action suits against the National Association of Realtors and their member affiliates. How will East Bay buyers and sellers be impacted?
SELLERS
Prior to the change, the seller traditionally negotiated and paid both the seller and buyer agents commissions as a contractual obligation. Now, that same commission can be both negotiated and paid separately by buyers and sellers.
That being said, a purchase offer for a property may include a request for the seller to pay a "concession" that covers the buyer's agent fee, essentially obligating the seller to cover the fee if the offer is accepted. The seller and their agent will analyze all offers based on whether they ultimately generate the highest net dollar at the best terms, almost regardless of who pays what. So covering a buyer agent representation won't necessarily cost a seller more, even if it sounds like it at first.
Fortunately, sellers do not need to decide about concessions at the beginning of the selling process; they can say they are open to the option and then wait until they receive offers. And they may still pay less than they would have prior to the settlement.
BUYERS
There are two notable changes for buyers:
1. BUYERS AGREEMENTS
Buyers now need to sign a buyer's agreement for the agent to provide many essential services:
Buyers now need to sign a buyer's agreement for the agent to provide many essential services:
- In order to receive guidance from an agent.
- In order to tour houses together.
- When an agent is hosting an open house, they can answer questions about the house itself but cannot provide a buyer with guidance about real estate outside the property (i.e. "agency") unless an agreement has been signed.
2. BUYER'S AGENT FEES
Buyers now need to negotiate and agree to their buyer's agent fee, but they do not necessarily need to pay it outright. When submitting an offer to buy a property, the offer may include a request for "concession" which would ask the seller to pay the agent's fee. Furthermore, the fee could be folded into the loan, depending on the terms.
Since many buyers search for properties on their own, some ask why they should pay a fee at all. One of the highest values a buyer's agent brings is their ability to navigate the transaction, particularly when it comes to interpreting disclosures. These documents are lengthy and opaque, but are critical as they can mean the difference between buying a great home and buying a "lemon." Furthermore, the best agents are well-networked and have both the reputation and the experience to make sure they can bring a transaction through to close of escrow.
While these changes are significant and require new ways to think about the process, they are great for the industry. Reach out with any questions that you may have.
MARKET UPDATE
AUGUST 2024
The East Bay real estate market seemed to take a pause in August - one that went beyond a typical summer slowdown. While the number of sales increased 7% since 2023, median price fell 3%, homes sold 3 percentage points closer to asking, and average days on market increased from 24 to 30 days. Some believe this might be due to recent legal settlement and the subsequent changes to the process of buying and selling real estate; others believe it might be because of the upcoming presidential election. Either way, we have entered the highly active fall market, and transaction activity will likely increase in September. At that point we can see if these declines are the beginning of a trend.
RECENT TRANSACTIONS
521 VICTORIA COURT
SAN LEANDRO
Sold | Listing
5747 SCARBOROUGH DR
OAKLAND
Sold | Represented Buyer
82 CLAREWOOD LANE
OAKLAND
Sold | Represented Buyer
CROSSCOUNTRY
MORTGAGE UPDATE
For the first time in almost 4 years, the FED cut their interest rate on September 18, 2024. The markets expected a 0.25% cut from their current rate of 5.5% to 5.25%. The FED surprised many market watchers by announcing a 0.50% cut to 5.0%. The quarterly meetings in March, June, September, and December are the most watched because they include interest rate decisions as well as the FED forecast for future rates. The much anticipated "dot plot" which is a forecast of where the FED expects their interest rate to be at the end of 2025, 2026, and beyond is where much of the focus was at this meeting. In June, most of the voting members had forecast a rate of 4.0% by the end of 2025. This was revised to 3.50%. All-in-all, great news for mortgage interest rates that have already come down by a full percent to around 6% for prime 30-year fixed borrowers since the beginning of August. This announcement will likely result in lower rates which, historically, have led to higher home prices. For more information, please contact Faramarz Moeen-Ziai at CrossCountry Mortgage - [email protected] or 510.254.4697.
2024 RED OAK CALENDAR
NATIVE FLORA: CALIFORNIA BLACKBERR
Each year Red Oak produces an original desk calendar, selecting a theme with ties to the East Bay. This year's theme is California Native Flora, showcasing artwork by selected local artists and descriptions courtesy of Ashika Narayan, a seasoned horticulturist and gardener from Oakland. The native plant from each calendar month will be featured in the newsletter.
California blackberry · Rubus ursinus · California blackberry grows along streambanks, canyons, and coastal habitats. Though seemingly understated, it defies classification, capable of assuming the guise of both vine and shrub. Its leaves may resemble the infamous trio of poison oak, but its bristling prickles set it apart. Delicate white blossoms attract diligent bees, and birds and small mammals savor the often dark purple or inky black fruit. California birds, such as quail, seek sanctuary within the prickly embrace of its wide-spreading branches as they forage.
2024 desk calendars are out of stock, but if you'd like to receive a free copy of next year's 2025 desk calendar (approximate delivery December 2024), just email your mailing address to be added to the list.
LOCAL BUSINESS SPOTLIGHT
CUPCAKIN' BAKE SHOP
Got a sweet tooth? Cupcakin' Bake Shop has you covered with a tempting variety of treats, including seasonal favorites and classics like chocolate salted caramel, and red velvet; they even have gluten-free cupcakes. Every bite is made with locally sourced, sustainable ingredients for maximum freshness and flavor.
This Black and woman-owned business, founded by Lila Owens in 2007, has grown from a home-based catering business to six locations, with four right in the East Bay. Known for its friendly atmosphere and artisan creations, Cupcakin' is a must-visit for dessert lovers.
Shops in Berkeley, Oakland, Walnut Creek & SF · cupcakinbakeshop.com · Follow on Instagram @cupcakinbakeshop
