As the summer chugs along, real estate agents are continuing the effort to get good information into the hands of homebuyers and home sellers. August does not disappoint, as this roundup highlights excellent content from some smart folks. Let’s dig in:

How NOT to Make an Offer on a Home

The Best Real Estate Articles in August 2024

This article by Chris Highland serves as a crucial guide for homebuyers navigating the competitive real estate market. It emphasizes the importance of crafting a strategic offer and gives readers essential tips and warnings on avoiding common pitfalls.

The article discusses the delicate balance buyers must strike between making a compelling offer and not overpaying for a property. Chris compares this process to a chess match, where one wrong move can cost you the game—or, in this case, your dream home.

The guide stresses that a successful offer is not just about price but also about understanding market dynamics and considering the seller’s perspective.

One key mistake highlighted is submitting a lowball offer, especially in a seller’s market where demand is high. The article explains that such offers can insult sellers, potentially causing them to reject your offer outright without a counter. It also debunks common justifications for lowball offers, such as needing to save for upgrades or relying on outdated advice.

Instead, he encourages buyers to work closely with their agents to understand the market value of a property, using tools like Comparative Market Analysis (CMA) or a BPO to determine a fair offer price. By focusing on realistic pricing and the emotional aspects of the transaction, buyers can make a competitive and respectful offer, increasing the chances of securing the home they desire.

Selling an Inherited Home

Bill Gassett’s article about selling an inherited home offers an in-depth look at the intricacies of the sales process of an inherited property. The guide covers vital steps, including confirming ownership, navigating the probate process, and understanding legal and tax implications such as capital gains, estate, and inheritance taxes.

Bill also emphasizes hiring professionals like estate attorneys, CPAs and experienced real estate agents to help manage sales’ legal, financial, and emotional complexities.

Additionally, the article provides practical advice on preparing the property for sale, from cleaning and staging to making minor repairs that can enhance its marketability.

Gassett underscores the importance of setting a competitive sale price based on a professional appraisal and effective marketing strategies to attract potential buyers.

He concludes by addressing common questions about the probate process, tax obligations, and the distribution of proceeds among beneficiaries, making it a valuable resource for anyone considering selling an inherited home.

VA Home Loans Vs. FHA Home Loans

Luke Skar’s informative article offers a detailed comparison between VA and FHA home loans, providing valuable insights for potential homebuyers. The article outlines each loan type’s unique benefits and eligibility criteria, emphasizing how government-backed loans like VA and FHA can make homeownership more accessible, especially for those with imperfect credit or limited down payment funds.

VA loans, specifically tailored for veterans, offer advantages such as no down payment, competitive interest rates, and no mortgage insurance, while FHA loans, available to a broader audience, allow for lower credit scores and more flexible debt-to-income ratios.

However, while these loans offer numerous benefits, the article stresses the importance of understanding the specific requirements and limitations associated with each.

For instance, VA loans require military service, and while they don’t necessitate a down payment, they involve a funding fee unless exempted.

On the other hand, FHA loans require mortgage insurance for lower down payments but provide a viable option for those who might not qualify for conventional loans. Ultimately, the article guides readers in making an informed decision based on their financial situation and eligibility.

Beware of Cybercrime in Real Estate

Vicki Moore’s article highlights the growing threat of cybercrime in the real estate industry and emphasizes the urgent need for robust cybersecurity measures. Real estate companies handle sensitive client information and extensive financial transactions, making them prime targets for cybercriminals.

Despite the risks, many real estate firms lack federal cybersecurity regulations and necessary resources, leaving them vulnerable to attacks. The article defines cybercrime and explores how it affects real estate, noting that even cloud-based systems are not immune to breaches.

Vicki underscores the importance of implementing strong cybersecurity practices, staying vigilant, and having a solid mitigation plan.

The article also offers practical steps for preventing cybercrime, such as adopting a “zero-trust mindset” with email communications, verifying wire transfer instructions over the phone, and being cautious of phishing scams and email spoofing.

Remember the importance of quick action if fraud is suspected, including contacting the bank and law enforcement immediately. Additionally, the article suggests investing in cybersecurity insurance to manage potential financial losses and maintain client trust.

Real estate professionals can better protect their businesses from these ever-evolving threats by understanding common cybercrimes like phishing, email spoofing, and malware.

Real Estate FAQs

Kevin Vitali’s article, “24 Real Estate FAQs for Home Buyers and Home Sellers,” provides a comprehensive guide to navigating the complex world of real estate. The article addresses vital concerns buyers and sellers often encounter, such as obtaining a mortgage pre-approval before buying a home and understanding market conditions to inform pricing strategies.

Kevin emphasizes the critical role of working with experienced real estate agents who can offer valuable insights and representation throughout the process.

For home sellers, the article highlights the significance of preparing a home for sale, which includes steps like decluttering, making minor repairs, and enhancing curb appeal.

It also discusses the costs associated with selling a home, such as real estate commissions and tax stamps, and advises sellers to understand the type of market they are in—whether it’s a buyer’s or seller’s market—before setting expectations. This understanding can significantly impact the success of the sale.

The article also delves into financing and legal considerations, including the types of mortgages available, the importance of a home inspection, and the legal steps required to sell a home.

Kevin stresses the importance of being well-informed and seeking professional advice tailored to individual circumstances, as real estate transactions can be complex and varied. By addressing these common FAQs, the article aims to empower readers with the knowledge to navigate their real estate journeys successfully.

The NAR Commission Settlement Explained

If you haven’t heard of the National Association of Realtors® (NAR) lawsuits, Paul Sian explains how the recent settlement will affect home buyers and sellers. NAR recently settled a lawsuit brought by homeowners who claimed they were forced to pay inflated commissions when selling their homes. This settlement introduces significant changes to how homes are bought and sold in the U.S., particularly regarding how real estate commissions are handled.

Previously, a buyer’s agent’s commission could be listed on the MLS (Multiple Listing Service) and was often negotiated between the listing agent and seller.

Now, under the new terms effective August 17, 2024, buyer’s agent commissions can no longer be listed on the MLS, and buyers will need to enter into separate agreements with their agents to determine how the agent will be compensated, such as through a flat fee, commission percentage, or hourly rate.