Kirk Marchand has been an agent at the Weichert
office at North
Bethesda
since 2010, and at the office in Chevy Chase, D.C. since 2023. What
have I done?
D.
Kirk Marchand
Weichert,
Realtors, Chevy Chase Office
5034 Wisconsin Ave. MW
Washington D.C. 20016
Office:
202 326-1300
Website:
https://kirk-marchand.weichert.com/
Go here for a lot of information and
resources about buying, selling and moving!
July 1, 2024
What
Does the Lawsuit Mean for Sellers and Buyers? Not a Whole Lot is
Different
My
topic for this newsletter is the recent settlement of a lawsuit by
several
clients in Missouri. To make sure we know where we’re going here, let’s
make
the conclusion clear. Real estate transactions in Maryland and D.C.
will be
minimally affected because regulations and ethical standards have
already been
in place.
The
case in Missouri involved brokers from different companies “price
fixing”. This
has been prohibited in Maryland and DC since long before I became an
agent.
While the general rule is a 5% or a 6% commission (depending on
services
provided by the selling agent), this is always negotiable with the
seller.
The
confusion I have been hearing is in regard to the buyer’s agent
commission. In
Maryland and DC the agent always represents the seller unless there is
a
written and signed buyer’s agreement. This was not true in the Missouri
case,
so a lot of jurisdictions nationwide are simply doing what Maryland has
done
for decades. The other part of this is that the seller pays the
commission, and
if there is a buyer’s agent the commission is split.
This
does NOT mean that if there is no buyer’s agent the seller pays 2.5% or
3%.
There is a lot of work involved, and the question is whether one agent
is doing
all the work or the work is being split between two agents. The total
list of
179 tasks the agent/ broker performs is at this National
Association of
Realtors link.
If the seller does not have an agent or two working on the transaction,
the
seller must take care of these issues. It is not simply a matter of
“going to
see a lawyer”.
A
side issue I run into as an agent is the assertion that the seller does
not
need an agent. With increasing litigation, especially in the area of
disclosures of material defects, lawyers are increasingly requiring
sellers and
buyers to at least find a broker to review documents. This is simply to
avoid
and spread risk. Brokers will not do this for free and would be
charging a
commission. On this type of case the broker is not working for either
the buyer
or the seller’s interest. If the seller wants an agent who is committed
as a
fiduciary, they must sign a listing agreement and agree to a commission.
There
are updated forms being generated by the Maryland Association of
Realtors.
So
to sum up where we are, most of the terms of the settlement were
already in
place in Maryland. The commission has been and is negotiable between
the seller
and their agent. Out of courtesy, I would expect any seller clients of
mine to
establish the percentage for the buyer’s agent up front. This means a
bigger
pool of prospective buyers and more competition among buyers.
In
a couple weeks I will be sharing some issues sellers need to be aware
of as far
as Fair Housing issues. Another topic coming up this summer is a view
of the
market now that we are out of the spring buyer “frenzy”.
For
those of you who have been with me awhile, I am now in Weichert’s Chevy
Chase
DC office, and I will be getting my DC license in addition to my
Maryland
license. The North Bethesda office where I met a lot of you (and
conducted
three settlements) is now closed.
Please
refer this article to anyone you know who would like to buy or sell a
home this
spring and early summer. I am ready to help you, your friend, or your
relative
come to a successful and satisfying conclusion to your search.
Some
Other Articles That May Interest You:
National
Association of
Realtors – the 179 Tasks Agents/ Brokers Perform
Facts
Concerning the Moehrl et al. v. National Association of Realtors,
et al.
Lawsuit
What
Does A Real Estate Agent
Do?
Listing
Agent vs. Selling
(Buyer’s) Agent, What’s the Difference?
Maryland
Association of
Realtors, Role of Real Estate Agents
July 18, 2023
It’s
Still A Seller’s Market,
But The Buyer’s Outlook Is Improving!
At
some point everyone thinks about selling their current home or moving
out of a
rental and moving into a new home that meets more of your needs. Here
are some
things to look at when you are considering buying right now. Mixed in
will be
suggestions for selling a home in this market.
1.
We
are not in a recession and it is less and less likely there will be
one. I’ve
talked to people who might want to sell, and up to just a couple months
ago
they thought we were in a recession. Fact, you cannot have very low
unemployment, many unfilled jobs and inflation in a recession. There
was
speculation that the only way to check inflation would be for the
Federal
Reserve to drastically raise interest rates, like they did in 1980 and
1981.
Current inflation is more based on the free market, we had a lot of
pent up
cash in people’s hands following the shutdown and demand exceeded
supply.
Manufacturing has increased, increasing supply, and we’re now pretty
close to
nominal inflation.
2.
Interest
rates will not go back down to 2% unless there is another pandemic and
a
shutdown. Flip our point #1, interest rates were low to keep the
economy from
going into deflation. Interest rates are
at the average for the last 30 years or so, and from market activity it
seems
that people are adjusting to the normal.
3.
There
are more homes for sale, simply because more and more people are
confident they
can get an acceptable price if they sell.
4.
In
this area (Maryland; Montgomery, Prince Georges, Howard and Baltimore
Counties,
also Baltimore City and surrounding areas), there is still high demand.
But this
means that homes are getting six or seven offers instead of the twenty
or
twenty five offers they were getting three years ago.
But
people are hitting price points. I am currently
helping a client find investment property, and is also looking for a
home for
his sister and her family. We found a really nice townhouse. However,
the
seller was asking a price that was about 8% higher than anything in the
development
was selling for at the height of the pandemic! We made an offer that
was close
to his number, but included upgrading the porch and the kitchen. The
seller
refused our offer, and has now taken the townhouse out of the market to
rent
out. My point is that this would not have happened a couple years ago.
So there
are prices that the market is considering excessive now.
Jan. 9, 2022
Hello Everyone,
Nov. 20th 2021
Happy Thanksgiving Everyone!
It’s that time of
year again! I hope everyone is having a
nice holiday, and hope some of you have a chance to be with people you
haven’t
seen for a couple years.
We are in a
changing environment in the housing market. As
I’m sure most of you know, for awhile there was a shortage of homes on
the
market. On the other hand, due to the programs that helped people stay
on their
feet and employed during the CoVid situation, there were a “normal”
number of
buyers looking for a home.
As a result, it
was difficult for buyers to develop winning
offers in multiple offer situations.
Things are
changing. Beginning last summer, I began seeing
for sale signs in my area (northern Prince Georges and eastern
Montgomery
counties), because homes weren’t getting offers before coming on the
market.
Homes are on the market longer now. It is possible to find homes with
normal
parameters of offers and prices.
A few tips for
buyers. First, homes that need work are
easier to negotiate prices. If you have resources to some kitchen,
bathroom,
carpeting and painting fixups, you can find homes at reasonable prices.
And you
have time to develop reasonable and workable offers. Second, make sure
you see
the houses, don’t just look at pictures. If the statistics are what you
want,
look at the home in person, and of course see it with an agent working
for you!
For sellers, move
in ready homes are still easy to sell in a
matter of days or a couple weeks. This means bathrooms, kitchens, and
appliances should be new or recently added. But if there are necessary
upgrades, it would be better to be flexible in price.
The beginning of a
new year is the most competitive for
selling homes, and the current health issues have not changed that
reality.
Buyers can find more competitive pricing now through February, or after
May.
Sellers should consider waiting until after New Year to put homes on
the
market, but the current demand does not make this a hard and fast rule.
Hopefully, there’s
something you can work with, or tell a
friend. As an agent, I depend on referrals, and I hope you can pass
this
information to friends who might call me for assistance. I work with
buyers and
sellers, and will provide top notch service to my clients.
Happy
holidays, and be careful!
Next Month: Are you a
renter or a
property owner renting? Some information for both!
Hello
Everyone!
Please
refer this article to anyone you know who would like to buy or sell a
home this
spring and early summer. I am ready to help you, your friend, or your
relative
come to a successful and satisfying conclusion to your search.
First,
if you are a potential buyer, and if your employment is relatively
secure, this
is as good a time to buy a home as if you’re thinking about waiting.
The first
thing you should do, whether you’re sure or not, is get a pre-approval.
Current
interest rates are very low, so if you can get a 6 month pre-approval
at today’s
rates, by all means get it whether you’re sure or not.
You
may have a perception that you are taking advantage of someone, or have
some
other misgiving about buying now. I would say that people are selling
for a
reason, and they want to sell now. My job as an agent is to negotiate a
price
that is acceptable for both buyer and seller, so I want to make it work
for
everyone. So if you are ready to buy this is a good time.
PROSPECTIVE
SELLERS
You
may have a home to sell, don’t wait. First, you probably don’t “have to
sell”
right now. You need to give your agent a little more time to sell at an
acceptable
price, because some buyers are probably going to assume you’re
desperate. (note
to buyers, do not assume they are desperate, and I will advise you not
to make
this assumption!)
But
you can get an acceptable price, because some sellers are waiting right
now
(once again, I will advise clients not to wait). There is actually a
little bit
of a shortage to meet demand.
Realtors
are not having open houses, but can show unoccupied houses with
acceptable
documentation.
This
may not be the right time for you, emotionally this is not the best of
times.
But if you are a buyer, once again I recommend you at least get a
pre-approval.
That may help you make a decision.
So
everyone, be safe, be comfortable, and when the time is right contact
your
agent and let them know what you want.
I
hope this article has helped potential buyers and sellers see a path to
what
you want. Always consult a real estate professional, they know the
market and
what is realistic for the buyer or the seller.
I
hope to begin to maintain contact with my past clients and customers
with a
monthly newsletter. Please share with anyone you know who’s interested
in real
estate.
Besides
helping homeowners and home lookers, I am teaching Real Estate through
the
Weichert Real Estate School. Right now I am teaching Pre-Licensing for
aspiring
agents in Maryland; Bowie, North Bethesda, and Fallsgrove.
Here’s
my agent website with links to properties for sale, school districts,
private
schools, and services for the homeowner or renter.
Some
Other Articles That May Interest You:
An
article from 2018 about interest rates:
6
Factors that Affect Your Interest Rates
From
June on the Moving.Com website, here is an article about fixer uppers:
Tips
You
Should Know - Fixer Uppers
Besides helping homeowners and
home lookers, I am teaching Real Estate through the Weichert Real
Estate School. Right now I am teaching Pre-Licensing for aspiring
agents in Maryland; Bowie, North Bethesda, and Fallsgrove.
I’d like to share some
information concerning interest rates, and how they can be used when
considering a new home or additions to your current home. My first
advice is always go see a mortgage specialist. They can tell you what
you qualify for, that can be lower than the posted rates for the day.
All loan transaction interest
rates, whether they are first or second mortgages, auto loans, and
credit card rates, change daily based on several factors related to the
federal government. The Treasury Department auctions bonds to finance
the national debt. Another is the Federal Funds rate, what banks charge
each other for loans from bank to bank.
Another is simple supply and
demand. We saw this recently when the Fed raised its short term rate,
and banks followed at first. Rates dropped shortly after this because
fewer consumers were borrowing. They thought rates were going up and
the number of loans applied for dropped. Banks and consumers have to
take out loans for the Fed and banks to make money, so when demand
slumped rates went back down.
As mentioned, if you need to
know how this affects you, see a professional. Your Real Estate agent
is not qualified to give you day to day market information. But you do
need advice on the day to lock in the rate for your loan, your mortgage
advisor’s job is to keep up with that information.
The two
facts you need to know here are that rates change daily, and that rates
are established through a variety of factors that are liquid and
changing. Your agent can help you get a price that you’re happy with,
and can give you general advice about where to go for information. But
your agent, your mortgage specialist, and your settlement company are a
team, each with different specialties. Make sure you use the resources
they all provide you to complete a successful transaction.
July 12th, 2017
The Washington area has always been a strong real estate
market, even during 2009 and 2010 there were still steady home sales.
Today the market is very strong, with good prices for both buyers and
sellers.
An interesting part of the market are multi bedroom multi
bath single family and townhouse homes around $300,000 and below. Very
few of these are currently being repossessed by banks, most current
repos are a year or more old. Distressed homes are being bought, often
for cash, by investors looking to either rent the homes or renovate and
sell for a profit.
Mortgage rates are low too. A lot of
people
are afraid of escalating mortgage rates once the Fed starts moving this
fall or winter. I would beg to differ, the Fed can’t simply and
arbitrarily raise rates.