Living In Tallahassee

08/20/2024

Buying a home is one of the most significant financial decisions you’ll ever make. We, the Realtors at Ketcham Realty Group, have demonstrated that we are a trusted resource. As an educated and experienced Broker, I am still ready to guide you through the homebuying journey and help you make the best decisions for your situation. With NAR’s recent settlement, there are several items designed to benefit homebuyers and make the process more transparent. Here’s what you need to know:

What the Settlement Means for Homebuyers:

- Written Agreement with Your Agent: Before you start touring homes, you must sign a written agreement with your agent. It may be just to see that particular house, or it might be for real estate services in general. Make sure this agreement reflects the terms you’ve negotiated and that you clearly understand the services provided, their associated costs, and your obligations.

- Key Components of the Buyer Agreement: The agreement with your agent must include four essential elements regarding compensation:
* A clear disclosure of the exact amount or rate of compensation your agent will receive or how it will be determined.
* Objective compensation terms (e.g., a specific dollar amount, flat fee, percentage, or hourly rate) and not open-ended.
* A clause prohibiting the agent from accepting compensation for brokerage services from any source that exceeds the agreed amount or rate.
* A clear statement that broker fees and commissions are fully negotiable and not set by law.

- In-Person & Virtual Tours: These written agreements apply to both in-person and live virtual home tours.

- Exceptions: You won’t need a written agreement if you’re just chatting with an agent at an open house or inquiring about their services. If you ask them real estate-related services, they will ask you to sign an agreement.

- Seller Compensation to Your Agent: The seller can still offer compensation to your buyer's agent. This information can no longer be shared on a Multiple Listing Service (MLS). The information about the sellers' or their brokers' offers should be shared with you by your buyer's agent.

- Buyer Concessions: You can still receive other concessions from the seller, such as offers to cover your closing costs.

What the Settlement Doesn’t Change:

- Once we decide to work together, I will continue to be your advocate throughout the home-buying process. Our written agreement will outline both of our responsibilities to each other.

- Your agent’s compensation remains fully negotiable. If your agent is a REALTOR®, they must adhere to the REALTOR® Code of Ethics and engage in transparent discussions about compensation. Be sure to ask questions and understand the services you’ll be receiving.

- You have so many options when buying a home. Work with an experienced and educated agent to ensure you make the best decision for your family's needs.

Abbe Justus
Ketcham Realty Group

Whether you’re a REALTOR®, brokerage leader, MLS executive, homebuyer, or home seller, the resources here provide the facts and latest updates on NAR's settlement agreement related to broker commissions.

08/19/2024

The Department of Justice vs. National Association of Realtors reached a settlement this year, and the changes went into effect Saturday, August 17.

There is a LOT of misinformation out there, and I wanted to take a minute and clear some things up. Let's start with how it impacts selling your home.

As a home seller, you have many options when it comes to listing your home. This settlement does not impact you in large ways. The listing agreement is and always has been negotiable. This settlement is an attempt to make real estate broker compensation more transparent.

The broker associates at Ketcham Realty Group have demonstrated that we are a trusted local resource. We will continue to be ready to guide you through the complexities of selling your home. An experienced agent will help you make the best decisions for you and your family.

Recent changes from NAR’s settlement have enforced guidelines regarding broker compensation, and here is what you should understand from your real estate broker.

What the Settlement Means for Home Sellers:

- Choice of Compensation to Buyer Brokers: You still have the option to offer compensation to buyer brokers. This can be a strategic move to market your home or make your listing more attractive to potential buyers. Research backs this up, offering a commission helps you sell your house faster.

- Transparent Disclosure and Approval: Your agent must clearly disclose and obtain your approval for any payment or offer of payment to another broker representing buyers. This disclosure must be provided in writing before any payment or agreement is made and must include the specific amount or rate of the payment. This wording in included in your listing agreement that you sign with your broker of choice.

- Changes in Offering Compensation: If you choose to offer compensation, there are new guidelines on how this can be done. While you can still offer compensation, your agent cannot list it on a Multiple Listing Service (MLS), which is a local marketplace where both buyer and listing brokers share property information. However, your agent can promote your listing through other platforms like social media, flyers, and websites.

- Buyer Concessions on MLS: You can still offer buyer concessions, such as closing cost assistance, on an MLS.

What the Settlement Doesn’t Change:

- We remain committed to helping you navigate the home-selling process and are ethically bound to work in your best interest.

- Compensation for your agent is still fully negotiable. If your agent is a REALTOR®, they must follow their Code of Ethics and have open, transparent discussions with you about compensation. When selecting an agent, make sure to ask questions about compensation and discuss what you’d like to offer buyers.

- When selling, you have many options that can impact your proceeds. Work with an agent who has the education and experience to help you understand all your choices.

Abbe Justus
Ketcham Realty Group, Inc.

The Drive With NAR podcast series now includes episodes that cover the proposed settlement agreement. NAR is also offering its ABR designation course for free.

06/21/2024

Q: Is it okay to go to an open house if I'm not going to buy a house anytime soon?

A: Yes! It helps the seller in two ways.

1. Others are more likely to stop by if there are other cars in the driveway. And...
2. The more attention a house gets, the more likely the sellers are to sell it. We have sold houses to buyers who were referred to the home by a friend who toured an open house.

Here's your invitation to come on by, say Hi, and check out this gorgeous home!

Saturday June 22, 2024 from 1pm to 3pm

3712 Pine Tip Road, Tallahassee, FL

Abbe Justus
Broker Associate
Ketcham Realty Group, Inc
850-321-0920

05/14/2024

Time is Money When Selling A House

In a peer-reviewed research study titled "Days on Market and Home Sales," published in the Journal of Economics, researchers Catherine Tucker, Juanjuan Zhang, and Ting Zhu explore how time on the market impacts a home's sales price. They took advantage of a natural experiment when Massachusetts changed real estate listings policy. Comparing Rhode Island home sales (that hid days on the market) to Massachusetts homes, which provided more information. They found that a buyer's knowledge of how much time a home has spent on the market significantly affects home sale prices. Their article provides data to back up what experienced Realtors already know – the longer a house spends on the market, the less sellers earn in proceeds—more details on my blog. https://www.livingintallahassee.com/days-on-market-and-proceeds/

Key Findings

The results were striking, statistically significant, and unsurprising. The policy change in Massachusetts led to an average reduction of $16,000 in home sale prices compared to Rhode Island. This effect was particularly pronounced for homes that had been on the market for longer, while newer listings experienced only a slight increase in sale price. The longer the house was on the market, the more significant the impact on the home sales price.

Implications for Buyers and Sellers

The number of days a property spends on the market can significantly influence buyer perceptions and, consequently, sale prices. Homes lingering on the market may signal underlying issues or unreasonable sellers. This prompts buyers to infer unknown characteristics of the house and the seller and, in turn, negotiate a lower price. Conversely, fresh listings may enjoy a modest premium due to perceived higher desirability. As a Tallahassee listing broker, my experience has been that an appropriately priced home will have an offer within two weeks on the market.

This study highlights the importance of strategic pricing and listing management for sellers. Savvy buyers ask for the listing history before making an offer. This study also points out the need for sellers to be more mindful of initial pricing to avoid extended listing durations that could harm sale prices. I also advise sellers to regroup with me if we have been on the market for two weekends and have not received an offer. Experienced Tallahassee real estate brokers know then that the market has spoken, and it is time to change tactics.

Experience matters when choosing your Realtor and home sale representative. Let's talk if you're considering listing or buying your Florida home. I will help connect you with information to help you negotiate your home sale.

Abbe Justus, MS
Broker Associate
Ketcham Realty Group, Inc.
850-321-0920
[email protected]

05/06/2024

Don't Say That... How Language Impacts Home Sales

Can listing descriptions shape perceptions and influence the decisions of homebuyers?

A study by Kimberly R. Goodwin, Bennie D. Waller, and H. Shelton Weeks, published in the Journal of Housing Research, examines how certain words and phrases can affect a home's perception. The study surveyed 1,027 people across different income levels, genders, and educational backgrounds, analyzing how they perceived specific words used in home listings.

"As-Is"

The study found that higher-income respondents viewed the term "as-is" less favorably than lower-income respondents, indicating that sellers at higher price points should avoid using this term in their listings. Interestingly, respondents born in the U.S. and those fluent in languages other than English reported higher favorability ratings for "as-is," suggesting a possible correlation with language nuances.

"Charming"

The word "charming" was less favored by respondents with incomes between $100,000 and $200,000. The study also found significant differences between respondents who had held a real estate license and those who had not. When real estate agents use the word "charming," they often mean something is beautiful, but the general population interprets "charming" as small or old-fashioned.

"Classic"

The descriptor "classic" appealed more to females and the highest income group (those with annual incomes above $200,000). This suggests that including "classic" in a listing for a high-end home might increase interest.

"Rustic"

The term "rustic" was less favored by respondents holding a master's degree and those earning between $100,000 and $200,000 annually. However, it was more favored by those living in rural areas. This study may shed light on why log cabins in luxury neighborhoods in the Tallahassee area spend more time on the market than their neighbors.

"Secluded"

The word "secluded" was more favored by respondents born in the U.S., those living in rural areas, and those who have held a real estate license or owned a home. Geographically, it was more favored in the South Atlantic and Pacific regions. This is a word that many buyers looking for a Tallahassee neighborhood with more space than new construction subdivisions provide often use.

As a Realtor in Tallahassee, I know compelling property descriptions resonate with the target demographic. The power of words in real estate is profound, influencing perceptions, shaping decisions, and ultimately driving Tallahassee seller proceeds. Next time you sell your home, consider hiring a Realtor who studies language to help you craft a listing that appeals to your target audience. Read about more words on my blog. You can find the link in the comments below.

Abbe Justus
Broker Associate
Ketcham Realty Group, Inc.
850-321-0920
[email protected]

04/30/2024

🏡 Real Estate Spotlight: 32301 Zip Code 🏡

Let’s take a moment to appreciate the vibrant market of the 32301 zip code in the Tallahassee area. Here’s a snapshot of the past six months of residential activity.

Number of Sales: A total of 128 properties have changed hands. That is approximately 8.6% of the homes sales in Leon County.

Median Sold Price: The median sold price stands at an impressive $225,000. This is lower than the median price for the entire county at $282,000, making this zip code attractive to first-time home buyers and investors.

Price Range of Homes Sold: The price range of homes sold ranges from $88,000 to $615,000, offering a spectrum of opportunities for different budgets and preferences.

Median Sold Price Per Square Foot (SSPSF): The median sold price per square foot is $175.61. The median sold price per square foot for Leon County is $188.93.

Average Days on Market: Properties spend an average of just 45 days (compared to 53 days for Leon County) on the market, signaling quick turnovers and an active community of buyers. This low number often indicates there are many cash sales, and approximately 37.5% of sales in this Tallahassee zip code are cash sales.

In this zip code, the median sold price of townhomes is the lowest for residential sales. Condos sell one day faster on average than townhomes and eighteen days faster than detached single-family homes and have the highest cost per square foot.

Whether you’re looking to buy, sell, or stay informed, follow me for more market statistics that you can use. Let’s connect if you want to discuss how these numbers (or others) can work for you!

01/26/2024

01/26/2024

Hey y'all... come on out Saturday and check out our adorable little town with many locally owned shops! AND... be sure to come a little further east and visit me!

If you are looking for a buyer's agent to help you negotiate your next move, come on by and visit with me. Or drop me a message anytime!

I will be hosting an open house at 1260 E Washington St un Monticello Saturday from 10am to 2pm!

Come on by! Come see all the cool things Monticello has going on!

Abbe Justus
Ketcham Realty Group, Inc
850-203-0209
[email protected]

OPEN HOUSE!!!! Monticello!!!

This house is ADORABLE and just outside of Tallahassee. Monticello is growing and a beautiful little town with plenty of restaurants, boutiques and coffee shops - Join Abbe Justus, Realtor on Saturday, from 10am-2pm and for a tour of this home and then take a drive downtown!

If you can not make it Saturday and are interested in this property, please contact Renee Dawkins Real Estate. We hope to see you there!

01/24/2024

WOW... comparing Leon County to some other counties. What do you think? I will take an educated guess that our homeownership percentage is low because of the many thousands of students estimated in our population that don't actually live here. I believe that brings down our per capita income as well.

The differences between Miami-Dade and Tallahassee sure does explain why we have so many south Floridians buying homes in the area!

If you are moving to our area - contact me. I've been selling homes for over a decade and all those stats classes in graduate school come in surprisingly handy!

Abbe Justus, Broker Associate
Ketcham Realty Group, Inc.
[email protected]
850-203-0209

01/15/2024

Let's look at some important Tallahassee area real estate metrics that can influence your Tallahassee real estate buying and selling decisions. So, let's get to it!

First, the "Months Supply of Inventory" currently stands at 7.5 months. This means it would take 7.5 months to sell all the homes active on the market if no new listings were added. A general rule of thumb is that six months is considered a balanced market. This number takes us closer to a buyer's market.

Now, let's look at the "12-Month Change in Months of Inventory," which shows a large decline of 20.38%. This decrease suggests that the inventory of available homes has been shrinking over the past year. The yearly trends show us that inventory has been shrinking for many years. This can be attributed to a combination of factors such as strong buyer demand, limited new construction, and homeowners trapped by the low interest rates on their mortgages. As a result, this reduction in supply may contribute to a more competitive market.

Next, we have the "Median Days Homes are On the Market," which is currently 48 days. A lower number indicates a faster-moving market, where homes tend to sell quickly. This number indicates that homes are on the market approximately two weeks before going under contract. It's remained steady for months.

The "List to Sold Price Percentage" still stands remarkably high, at an impressive 99%. This metric measures the percentage of the original listing price that a home ultimately sells for. This is a positive indicator for sellers, telling us that buyers are willing to pay close to the list price for a home.

Finally, we have the "Median Sold Price," which currently sits at $350,000. This metric represents the middle point of all the home sale prices in a particular area. Despite rising interest rates keeping buyers from the market and increased days on the market, Tallahassee home prices are still rising.

In conclusion, these real estate metrics paint a picture of a market that is favorable for sellers, characterized by limited inventory, quick sales, and homes selling close to their asking prices. On the other hand, buyers should be prepared for a competitive landscape and potentially higher prices in the coming months. Sellers- if you have been on the market for more than two weeks, you have limited time to fix your listing, or buyers will drop their offer price. Buyers - now is a great time to shop when your competition is low.

Thank you for joining us today. Please follow for more Tallahassee real estate updates. Please contact me if you have any questions.

Abbe Justus
Broker Associate, Ketcham Realty Group, Inc.
850-203-0209
[email protected]