Top 5 Reasons for the Dip in Inventory

We’ve noticed that inventory is low across the country. Here are five reasons why that’s happening.

Today we’re going to talk about the top reasons for the incredible lack of inventory we’re seeing. This isn’t just happening in Richmond and the surrounding areas; it’s going on around the country. I have the unique opportunity of Masterminding with a lot of agents around the country, and this lack of inventory is definitely a national issue.

There are five points I want to touch on for this topic.

1. 47% of existing homeowners are worried they will not be able to find a home to buy. When almost half of the potential market is afraid to list their house for fear of not being able to find a new home, that’s a problem.

2. First-time buyer demand is absorbing a large share of available homes. These new buyers are driving the market right now.

When almost half of the potential market is afraid to list their house for fear of not being able to find a new home, that’s a problem.
3. 11.3% of existing homeowners’ mortgage rates are lower than the market rates are right now. They don’t want to give up the rates they’re comfortable with to move to a higher rate.

4. 10.6% of the whole market has insufficient or negative equity. It’s a small percent, but it is still impactful because those people aren’t able to sell their homes yet.

5. 4.6% of the reason is due to foreign buyer demand absorbing a share of available homes. They see real estate in the US as a really good long-term investment

All these figures together are the reason for which we’re experiencing such a lack of inventory right now.

If you’d like to dive into this further, please give me a call. I’d be happy to talk to you further about this issue, and, of course, to help you find a home. Be sure to make it a great day!

When Are You Committed to a Real Estate Agent?

When are you committed to a real estate agent? Today, I’ll answer three common questions about agent exclusivity for homebuyers.

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As a homebuyer, when are you actually committed to a real estate agent? There are three key points to consider. 

1. Why do agents demand exclusivity when representing you on the buy side?

I have eight buyer’s agent that work in our real estate company. They work really hard. Finding you a home means they are working seven days a week. They are passionate about serving you as homebuyers. 

When buyers show you houses, they use their years of expertise to find you a home. Some agents may show 20 or 30 houses to potential clients before they find one they want to make an offer on. That’s why agents have the agreement in place; they want to make sure they get paid. 

That said, the buyer’s agent does technically work for you for free. The seller actually pays their commission. The buyer’s agent just wants to get paid for their hard work.

In our market, you typically agree to work with an agent for six months.

2. Did you already sign a buyer’s agent agreement? What does that mean if you did?

Typically in our market, when you agree to work with a buyer’s agent, you will work with them for a period up to six months to find the home of your dreams. 

3. How can you terminate the agreement if you aren’t happy with the buyer’s agent’s services? 

In most cases, you can simply say, “I’m just not happy. It’s nothing personal, this is a business relationship. I would like to walk away.” 

For the most part, no Realtor wants to work with someone who is unhappy with services. Sometimes it can get ugly if the agent is not willing to terminate that agreement. In that case, you can go over the agent’s head to their broker. 

Again, that rarely happens. In most cases, you’re going to meet your buyer’s agent and have some sort of relationship before you work out the exclusivity agreement. 

Those are just a few things you should keep in mind when working with a buyer’s agent. If you have any other questions about hiring an agent or buying a home, just give me a call or send me an email. I would be happy to help you!

If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you.