realtor – Page 2 – John Angell

Vague Specifics June 2024

I’d like to direct your attention to the Referral panel on the right. I’ve never received 3 referrals in a month, and I just want to thank them with all sincerity. I try to provide a level of service that makes people think of me when anyone they know talks about real estate, and although I really don’t ask for referrals as often as I should, it’s great having 90% of my business come from repeat business and referrals.

As spring gives way to summer, the real estate market has been typical in many regards. For the first 16 years of my career, I told buyers if they lived in a home for 3-5 years, they would likely make a tidy profit when they sold. 2020-2022 were an exception, but those normal days have returned. Median sales prices are 1% higher than last year, which is a little disappointing considering what we expected relative to other major metropolitan areas, but some cities are in a bonafide re-adjustment “readjustment” (read: prices are going down). Interest rates have settled around 6.5% for a 30-year fixed, when that goes below 5% in the next few years the party will be on again and the good times will roll once again. I can’t say we’ll experience double-digit appreciation, but the fact the Metroplex will DOUBLE in size by 2040, it’s not realistic to think the market won’t at least be flat.

IT’S HAPPENING. After 20 years in real estate, I finally have a teammate/protege. His name is Vincent Kolles. He’s 28, smart, charismatic, and his head and heart are in the right place. At some point you’ll encounter him, I think you’ll agree he’s destined for great things. I’ve never mentored anyone in real estate and have never had an employee. Like I mentioned in last month’s newsletter it’s exciting and terrifying, but it’s time and I found the an understudy who I can not only teach what I know, but it’s the goal of every ambitious Realtor to build a team that is self-perpetuating, motivated, and can thrive even when you spend time away. If you have any input on how to mentor, I’m all ears. To date he’s watched me go about my day-to-days and we’ve done a few market analyses after touring properties. Tomorrow we’ll go to an inspection. I remember when I first started, there were some agents who helped, but there are so many things that just have to be experienced like inspections.

“I Think I’ll Get My Real Estate License

Real estate is the fantasy of many a 9-to-5er, stay at home mom, or anyone who wants a reason to abuse alcohol full-time. “I can make my own schedule!”, “The income potential is unlimited!”, and my favorite, “I love houses!” have been led to many ephemeral real estate careers. But what does it take, and why is the rate of attrition over 90% in the first 2 years?

Getting your license takes time and dedication but it’s not arduous. Why do so many fail? Ask yourself: Why am I doing this? Your answer may decide your fate as a top producer or just another inactive licensee.

Money – This isn’t derogatory towards people who like the money. I like money. No Money No Funny. That said, every agent goes through dry spells. When weeks stretch into months without paychecks, those in it for a buck tend to lose focus and move onto the next “unlimited income potential” Job.

I Like Helping People – When working with great people, it’s the best job in the world. You’re making a difference and being well-paid. But you’re not going to always work with great people, and you’ll soon find out the depths to which some will stoop for money. I’ve seen people I respected turn do dishonorable things – it’ll make you question human nature altogether.

I Love Houses! – Some agents specialize in certain niche homes, in fact I’m trying to break into the mid-century modern market. However, they ain’t Frank Lloyd Wrights and you’ll see your share of unimpressive homes.

I Can Make My Own Schedule! – Yeeaahh… In reality, a Realtor’s schedule is whenever a client has time and needs them. That includes nights, weekends, while you’re on vacation, etc. Making private time is a challenge.

If you are considering a career in real estate, call me. I’ll give you what insight I can, we’ll discuss your situation, and I’ll give you what advice I can. Plus I’m looking to grow my team. If that interests you and we seem like a fit, I’d love to explore the idea, but regardless I promise you to give you the best advice I can.

Architectural Corner: Second Empire

Popular in the later half of the 19th century, Second Empire was influenced by bot the renaissance and Napoleon III’s Second French empire.

Characterized by mansard roofs (two slopes on each side, the lower slope at a steeper angle, often featuring dormers), boasting emphatic pavilions and being of enormous size, Second Empire buildings were solid and flat in their facades, projecting both an air of decor and formidability. They were almost always cubic or rectangular, sometimes featuring interior courtyards, adopting themes from Italianate floor plans. They were symmetrical, often with a tower in the center.

Vague Specifics: May 2024

I got an email from the National Association of Realtors (NAR). The subject line read: Dallas/Fort Worth ranks second in key statistics. Intrigued, I opened it and scrolled down. The first article read, “DFW Market ranks second in pet-friendly rentals”. Thanks NAR. Annoyed, I continued to scroll down and found “DFW Market ranks second in sales volume”. No idea why the pet article was first… Point being, the US is in an erratic market. People are dealing with interest rates fluctuating from 6.5-8%, personal debt is at an all-time high and inflation continues to hinder everyone. But DFW is as good as it gets for real estate, and for that I’m thankful. Looking at page 2, we certainly have more inventory, up a whopping 35% from 2023, which admittedly was a very low inventory market. That said, sales prices are ticking up a bit, median days on market is still a brisk 50 days, and although pending sales are down a bit sales volume is actually up 5% from April 2024.

I’ve interviewed a younger agent to join John Angell Real Estate Group. Seems like a good guy, ambitious, smart, self-starting. He may come on as an assistant for the time being, which makes me nervous. I could always use someone willing to research social media marketing, hold open houses and do little things I don’t want or don’t have the time to do, but the notion of employing someone and being responsible for their livelihood is kind of terrifying. People who have never had an employee tend to think “bosses” whimsically fire workers, but I’ve noticed the opposite, especially with small businesses. Don’t get me wrong, I’d have no problem firing someone who was lazy/disrespectful/incompetent, but it’s a bit terrifying being responsible for the livelihood of a subordinate. That said, I’ve been in this business 20 years and it’s time. The first question I asked him was, “Why real estate?”, one of his two reasons was what I wanted to hear. “It’s a booming market in DFW” was the first, “I want to help people with the biggest financial decision of their lives” was the second and it was spot-on. There are people who get into real estate for the money, the “flexible schedule”, their appreciation of houses/architecture, but there are long spells where the money is bad, the schedule is inflexible and you’re touring crappy houses. To me, the “Big Why” has always been helping. Don’t get me wrong, that’s no fun when you really don’t like the client, but that’s an uncommon thing.

Buying a Backup Generator

Why John,” you may ask, “is this newsletter late because you decided to center the front page article around Tuesday’s storm?”. Why yes, dear reader. I was prepared to write something relevant to the market or coming summer, but this was a chance to research something fresh in everyone’s minds.

It’s rare that we need a generator, but it would appear that “extreme weather” in Texas is increasing in frequency. The topic of generators is pretty big in options, so rather than giving you an insufficient view of all of things I’ll give you two options.

1) The Essentials – According to Consumer Reports, a 2,000 watt generator is enough to power your fridge, TV(s), 5-10 lights, a computer, charger and security system. There are portable, gas-powered generators. If you’re prepared to chance the elements and make a few concessions, you can live in relative comfort (sans HVAC) for $300-400. You’ll need to get gas every couple of days, but those steaks in the freezer will stay frozen, you’ll have light and TV, and the all-important internet will function.

2) All the Bells & Whistles – It’s Texas. The odds every outage won’t be followed by 70 degrees, and if you’re going to drop some coin on a generator you may as well have something even The Omega Man would envy. If you have natural gas, a 4-ton air conditioner (servicing 2,000 sqft) requires 17,000 watts. Stack on top of that the comforts you are willing to pay to maintain (TVs, internet, most-all of your lights, chargers, computers, stove/oven, everything except probably your dryer) and you’re up to roughly 22,000 watts. A permanent, wired into your electric panel and plumbed into your gas line is going to set you back $5,000-8000 PLUS installation. At this time I’m not sure the cost of the plumbers and electricians fees, but if I was to guess I’d add another $1,500 to that. Now this system is big, roughly the size of a table, but it will also increase the value of your house (not dollar-for-dollar) or you can take it with you when you move.

Architectural Corner: Colonial

Colonial architecture is a blanket term for homes that were built in the US beginning in the 1600s, that can be broken into categories based on location, the ethnicity of its settlers, the local climate and available materials. Despite this variety they have many features in common.

Built for large families, they typically had 4+ bedrooms, large attics that could be easily used as playrooms and finished basements (basement is a trigger word for me I want one so badly). Front doors are centered, flanked by multi-paned rectangular windows. Built centuries before furnaces, they either featured a central chimney or chimneys on both sides. They were typically 2-stories (minus the attic), stressing symmetrical architecture and floorplans.

Vague Specifics – April 2024

Inflation numbers came out higher than expected, and while the Federal Reserve is not expected to raise interest rates next month, look for mortgage rates to be affected. As of my writing this they’ve already bumped back up to 7% for a 30-year fixed rate. It’s still funny Adjustable Rate Mortgages are higher than fixed, an effect of an inverted yield curve.

Inventory continues to climb, up 10% from this time last year, but average days on market is actually down 2%. At this point, interest rates were around 6.5% compared to 7% now. When rates drop below 5%, and they will someday (probably 2026), the market is going to catch fire again. There are too many people moving to Dallas following the incredible job growth we’re seeing.

I had a chance to visit with my childhood best friend, who lives just outside of Tyler in a golf course community. He and his wife bought the lot years ago and tried to sell it in 2017 but were unable to find anyone interested. Fortunately they were able to hold onto it and built their dream home on 3 acres, the value on it has gone up exponentially. It makes me think about how much of life is “right time, right place”. I like to tell people I timed the market perfectly when we bought our house in 2010 for next to nothing, but in reality Kacie and I had just gotten married a few months prior and one morning she essentially told me we were going to be moving out of my one-bedroom condo or she was was going to do it alone. I like to think she was exaggerating, but nothing tests a relationship like crammed spaces. Point being the market just happened to be bottomed out at the time.

Speaking of small towns, the mass exodus from Dallas to the surrounding rural areas has definitely calmed down. It never ceases to amaze me how people thought they would never have to go back to the office again. I would consider working from home but I know myself, there are too many distractions between my wife, cats, the TV, chores etc.

Architectural Corner: Italianate

Often considered more popular at it’s peak than Greek Revival Style, from the 1840s-1880s the splendor of Italian architecture was brought to the US in the form of Italianate. Inspired by farmhouses and villas of the 16th century, Italianate was popular across the western world.

Characterized by asymmetrical layouts, low-pitched or flat roofs, tall narrow windows, stately cupolas, masonry blocks at corner walls (quoins), exterior gallery corridors (loggias), triangular gables (pediments) and several other terms I had to look up, Italianate carried both romance and dignity. Some even featured towers.

Lasting until shortly after the Civil War, many residential and commercial buildings alike can still be seen in the US, mostly in the coastal states like New York and California.

Vague Specifics – March 2024

You can’t say I didn’t warn you. Okay maybe I didn’t, but I should have.

Now that Spring Break is over, the market has picked back up. While we expected most of January and all of February to be busier than it ended up being, Dallas will have a busy spring and early summer. As I’ve said before, if you’re looking to sell you want to get started now. As we approach the late summer and fall, election hysteria will sink in and slow things considerably. That said, look for interest rates to inexplicably drop in the 60-90 days before the election. Anyone who thinks the Federal Reserve is non-political should reconsider, and it favors whoever is in office at the time.

The big buzz around is the proposed settlement involving the National Association of Realtors. The media has gone all-out on hyperbole, and those I know who hate Realtors are suggesting for the 300th time I get a new job. Not to disappoint them, but in the short term the only change we’re expected to see in Texas is the commission offered to a buyers agent will no longer appear on MLS.

“But John, you confident yet introspective purveyor of fine properties,” I hear you ask, “CNN said this was, ‘the end of 6% commission’!” Well, dear reader, 6% was never written in stone. In fact, it is illegal for agents to say anything commission-related is standard. In addition, agents who conspire to maintain commission rates may be guilty of anti-trust violations.

Ultimately, Wall Street and big money are behind this assault on NAR (of which I am a member but not an ardent one), their goal being able to co-opt real estate and take control of a multi-billion dollar industry. It’s not enough for them to own all the homes in America, they want to control transactions as well.

The bottom line is if a buyer or seller sees value in an agent the advice they provide, they will be willing to pay for it. I would never try to wedge my services between a willing buyer and willing seller, but there is a reason real estate agents exist and we do a lot more than stick signs in yards and collect paychecks. Okay, maybe we did in 2021 and 2022, but certainly not now.

What is a Home Warranty?

The other day my mom received a piece of mail from the “home warranty department” (no company name was stated). When I looked up the number, sure enough it was a scam. Then my mom asked, “What is a home warranty anyhow and do I need one?”.

A home warranty is essentially an insurance property on the mechanical components of your property such as major appliances, plumbing, HVAC & electrical systems. It is a service contract that covers general wear and tear but unlike homeowners insurance is NOT mandatory. It is, however, so common that the Texas sales contract has a “Residential Service Contract” section that very often provides a buyer with funds for a 12-month, seller-paid home warranty.

There are multiple Home Warranty Providers, and like most industries they closely monitor what one another charge and the services they provide. Most of them are quite similar but every now and then one distinguishes itself with new plans or pricing. The differences are often subtle. A few years ago one company inserted language stating they would not cover “detectable pre-existing conditions”, meaning if a home inspector missed the issue on the report and it was determined by the home warranty-approved repair professional it should have been detected, then they would not pay to fix it.

Are they Home Warranties worth it? It depends. If it’s paid for by the seller, why not? Product and builder warranties are better and home warranty companies feature a lot of fine print designed to protect them, but I have clients who have saved tens of thousands and swear by them. They often write 5-figure checks for air conditioning systems that were deemed to have died before their time, and I’ve seen huge plumbing jobs covered. That said, I’ve also seen clients hold a home warranty for 3 years and they never used it. It’s all very subjective. Rule of thumb: If you have an older home, it’s not a bad annual investment of $500-800.