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Expert Tips for Navigating the Real Estate Market

Our mission at Clancy Real Estate is to be your best resource for real estate advice. Whether you are a buyer, seller, or investor, our team of professionals can answer any questions you might have about real estate. Subscribe to this blog to get the latest news on local market trends and receive expert tips for buying or selling a home.

Why Haven’t Commission Rates Changed?

Real estate commissions have stayed flat over the years, even though the legwork for agents has dramatically increased. Here’s the reason why.

Call me at (518) 861-7016 for a FREE home buying or selling consultation

It’s spring, the market is robust, and we’re seeing a ton of activity in the market. However, today I want to talk about something a little different: commission rates.

Now, I cannot directly discuss my commission rates, but I do have some general thoughts on them. The base commission rate that most agents in the capital district hasn’t changed in the 25 years I’ve been in the business. This is absolutely ridiculous. 

25 years ago, agents had to do a lot more legwork. I had a book to pull up printed information, write contracts by hand, and send someone out with a fancy camera to take pictures. Today? Everything has changed with digital technology. I can electronically send documents to sign, use digital photographs, and do things much more efficiently.

So, what’s the real reason commissions rates haven’t changed if things are so much easier for agents? It’s because of referral companies like that who take their fees on every single referral they give. Agents have to make up the difference, and that’s why the rates have remained flat instead of dropping. I get a tremendous amount of referrals from companies which then charge me 25% to 37% of the full commission. Since they do not add value, I am paying them for their national advertising.

These referral companies ask for 25% to 37% of our commissions.
Want to save money on your next transaction? Give us a call and skip the middleman. We’ll provide great value for a great price and I’d be happy to discuss the specifics with you. If you have any other questions about the real estate market in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What You Need to Know About the Dirtiest Words in Real Estate

The dirtiest word—or words—in real estate is “real estate appraiser.” Here’s why.

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What makes “real estate appraiser” the three dirtiest words in real estate? To understand, let’s take a look at what’s happening in our current market.

Inventory is tight right now, especially in the lower price points, and our market wants to start trending upward in terms of home values. Whenever this happens, it makes an appraiser’s job more difficult. I know because I’ve been there before.
Remember, appraisers represent the banks, and it’s their job to look at historical data to evaluate home values. Home values want to start increasing because of our supply and demand imbalance, but appraisers are still looking back six or 12 months to evaluate properties.

As an example, I recently sold a home in Albany for $180,000, but its appraisal first came in at $175,000. This gave my seller a tough decision to make—whether to sell at $175,000 or put the home back on the market and hope they eventually get a higher appraisal from someone else. This home had several offers above the price we sold it for, but the appraiser was saying it was only worth $175,000.

Appraisers aren’t doing their homework as far as where supply and demand is and what buyers are willing to pay.

If my client decided they wanted to sell at $175,000 even though the home was worth $180,000, a new appraiser would’ve come along after that and used that as a comparable sale to set values for other homes.

This is just one of many examples I could’ve used that have occurred over the past several months—I list a home at a certain price and then the appraiser comes along and values the home for significantly less than what a buyer is willing to pay for it on the open market.

This effect is keeping the market down when it should be easing up into positive, healthy price gains. Appraisers aren’t doing their homework as far as where supply and demand is and what buyers are willing to pay. As I said, I’ve been there before and I know how hard it can be, but unless they start easing up on their guidelines and using paired sales to measure appreciation and make time adjustments, this kind of thing will keep happening.

As always, if you have any specific questions about your home’s value on the open market or you have any other real estate needs I can help you with, feel free to give me a call or send me an email. I’d be happy to help you.

Why It’s Important to Work With a Relationship-Based Agent

Most of the agents in our industry are transactional instead of relationship-based. Here’s why you should work with one who’s relationship-based.

Call me at (518) 861-7016 for a FREE home buying or selling consultation

What’s the difference between being transactional and being relationship-based in the real estate industry? The answer lies in how our team does business. 

I read an alarming article the other day that described Realtors along the same lines as personal injury attorneys and insurance salesman. In other words, it held our profession in a really low regard. This was disheartening to me because I know how hard my team works and how much we love our clients. Overall, it was hard to read this article and think that the public thinks so little of Realtors. 

I think the reason for this is most Realtors are transactional instead of relationship-based. My firm is relationship-based. 

Let me tell you a quick story of how a transactional mindset works. I met with a couple last week who listed their home last year with a Realtor who was a friend of theirs. After six months, their home hadn’t sold and they were ready to take it off the market. When they told their Realtor this, their Realtor threatened to sue them for $8,000. 

I value the long-term relationship our team has with each of our clients.

That’s not how you build a business, build a career, or build trust with the public. I’ve never, ever told someone that I was going to sue them if they took their home off the market. In fact, we’re one of the few firms that offer an easy-exit listing agreement. If you’re one of our sellers and you want to take your home off the market, just call us up and we’d be happy to do that for you. I value the long-term relationship our team has with each of our clients—not the short-term, transactional gain of $8,000. 

Long story short, we plan on selling this couple’s home. If their previous Realtor would have agreed to take their home off the market last fall, they might have retained the client this spring. 

We want to earn your business, and we want to do business with you for life. 

If you ever have any real estate questions or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d be glad to help you.