WELCOME 

Happy Wednesday, y’all! I don’t know why I always think of the beginning of summer as being relaxing, when it’s really non-stop graduation parties, weddings, and the kickoff to the busiest home buying season. New ventures, new lives together, new spaces—what’s not to love? June is just the best.

This week, I have some strong opinions to share on the Great Agent Flush (at least that’s what I’m calling it) and zero down mortgages. So let’s start the conversation!

THE REALITY OF REAL ESTATE

Apparently zero-down mortgages are back. Oh, my stars did I laugh when I saw the headline, stating “A Shady Financial Tool from the Housing Bubble Era Is Making a Comeback.” Ha, ha! Tell us how you really feel, CNN.

I have to say, I agree with the author when she says, “Perhaps the last thing the market needs is another shady financial product that pushes low-income Americans into homes they can’t afford, under terms that could bankrupt them.”

United Wholesale Mortgage is allowing buyers to borrow up to 3% of the home’s value (capped at $15,000) for an interest-free loan that must be paid back in full, at once when the buyer sells, refinances, or pays off the mortgage.

“But Glennda, why is this bad? It’s going to open up my buyer pool,” you may say.

While zero down programs aren’t new—and they’ve always been an option through programs like the VA—I don’t see this as the miracle that will solve the current housing crunch or a sluggish market.

In theory, as long as the economy remains in good shape and the value of the home continues to go up, there’s no problem. But like I always say, there’s never a problem until there’s a problem. I mean, 2008, anyone?

When buyers don’t have any skin in the game, it makes it a lot easier for them to walk away from their responsibilities. And I’m not saying this from my ivory tower. I’m saying this as someone who bought a no-doc, no money down, no income verification home when I was starting out.

Listen, I was that low-income American who bought a home she couldn’t afford under terms that could bankrupt me. Granted, I wasn’t more cavalier about being able to walk away if seas got choppy, but a whole lot of my peers were and that was devastating for the market and the country.

UMW argues that these borrowers will go through a strict underwriting process, so I guess we’ll see how this shakes out. But I reserve the right to say, “I told you so.”

What do y’all think? I’d love to hear your thoughts.

@glenndabaker

How much money should you put down on a house? #GlenndaBaker #RealEstate #AtlantaRealEstate #RealEstateTiktok #downpayment 

STORY TIME WITH GLENNDA

The Great Agent Flush

Last week the Washington Post ran an article about how thousands of real estate agents are fleeing the profession because of all the new changes. The story also mentions the statistic that 49% of all agents sold two or fewer homes last year.

Well, buckle up, buttercup, because here’s the hard truth: if you sold two or fewer homes last year, you weren’t in the business to begin with.

If there’s a massive cleansing coming? Good. Because what that means for buyers and sellers is that they’re going to end up with a better agent and that will collectively raise the value of the services for those of us who remain.

Let me give y’all a real life example of clients I worked with years ago. I was the listing agent for a home. The buyers drove by, saw the house, and decided they wanted it. They called their mom’s friend from church—let’s call her Part-Time Patty. They thought Patty would be great because she lived in the neighborhood, so surely she must have a bead on what was happening.

Guess what? All Patty did was fill out the paperwork for them, and even then, she got it wrong. She didn’t include the media room equipment, she didn’t include the hot tub, she didn’t include the termite inspection, and to top it all off, she never submitted the earnest money. She handed me the earnest money check at closing and we had to rewrite the contract. Patty offered no value to her clients, just none whatsoever, because Patty only handled a couple of sales a year and she didn’t know how to land that plane.

Here’s something we all know—anyone can fly a plane when you’re in clear skies at cruising altitude. The skill comes in take off, landing, and handling turbulence. So are there cases where buyers and sellers could operate without an agent? Maybe if it’s seamless, but it’s so rare that any transaction is completely straightforward or seamless.

For example, a while back, I had a cash buyer with no contingencies. It was about as textbook a sale as I could imagine. And anyone can unlock a door and fill out paperwork, right? Wrong! The house they were buying had four septic tanks and the map of where the tanks were located looked like it had been drawn by one of my grandbabies. We brought someone out to remap the tanks, which cost about $500. What they found was that the tanks were buried so deep, it would cost $9,000 to excavate them.

Do you know the kind of damage that can be incurred with a $9,000 excavation? Luckily, I did, and we pushed that excavating cost back on the seller, who also had to cover the cost of the cut sprinkler lines and damaged electrical cable, too. In another example, Part-Time Patty thought the roof on her listing was slate, which is a 100-year product. But it was synthetic, and only good for another ten years. If I hadn’t caught that, it would cost my clients $400,000 to replace it a decade later.

I believe the problem of having too many agents is going to take care of itself. In fact, it already is, as there are 72,000 fewer folks in the business than there were last year.

The dilemma that we do still face is one of consumer perception of the value we bring. For example, almost every commenter on the WaPo article was borderline gleeful that the industry is struggling. The majority aren’t on our side. One of the comments in the article that caught my eye read: “Time to shine up that resume and get back to your bottle service gig.”

Ouch.

I blame Patty for giving us all a bad name.

That’s why next week we’re going to talk about how to better position ourselves in the public eye.

(And because I know my readers are the good agents, I’ll see y’all then.)

GLENNDA’S GURU

Meet Chris Heller!

I’m so pleased to introduce Chris Heller, the #1 Keller Williams associate in all of North America! How impressive is that? He literally is Heller the home seller! I am so excited to share our conversation and I hope you walk away from this as inspired as I am!

Thank you, Chris!

GLENNDAISM

It Bears Repeating

GO HOMES.COM WITH GLENNDA

Another week, another fantastic listing to share with you today!

I love this new listing for a million reasons, starting with its proximity to everything and ending with the high-quality finishes and masonry. There are so many little touches that make my heart go pitter-patter, from the clawfoot tub to the dual dishwashers to the separate entrance living space. What a perfect spot for multigenerational living! Plus, there’s a walk-out terrace, a screened porch, a balcony overlooking the backyard, and a tree house, so however you like to be outdoors, this place has you covered in style.

Now, remember, if you’re an agent, remember, with Homes.com, it’s always your listing, your lead and what could be better than that?