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Tariffs, Taxes, and Why Real Estate Still Wins—Oh My!

Truth bomb: Real Estate Investing Still Makes Sense—Even in an Uncertain Economy

Let’s be honest: The economy feels a little shaky right now. Inflation, interest rate hikes, stock market swings, conversation about tariffs that frankly no one understands—it’s no wonder many investors are second-guessing their moves. But despite the noise, one investment strategy continues to prove its worth: real estate.

Here’s why real estate remains a smart, stable option—even when the economy feels anything but.

1. People Always Need Housing (Because Cardboard Boxes Aren’t Zoned Residential)

No matter what’s happening in the economy—boom, bust, or somewhere in between—one thing remains true: People need a place to live. You can skip the avocado toast, cancel your streaming subscriptions, and delay upgrading your phone… but “just not living anywhere” isn’t really an option.

Sure, some folks dream of going off-grid in a van, but most still prefer a roof that doesn’t leak and walls that don’t flap in the wind. That’s why real estate has staying power—it meets a basic human need. Shelter isn’t trendy. It’s timeless.

So while markets may wobble and stocks may spiral, housing demand? That’s not going anywhere. Unless humans suddenly stop needing to live indoors—which feels unlikely.

2. Cash Flow Can Be a Lifesaver (Especially When Your Other Investments Are on Life Support)

You know that warm, fuzzy feeling when rent hits your account right on time? That’s cash flow—and in a shaky economy, it’s basically the financial version of comfort food. Reliable, satisfying, and way less salty than your stock portfolio.

While your crypto wallet is having an existential crisis and your retirement account is taking a nap, that monthly rental income shows up like, “Hey bestie, I got you.”

It’s not just about making money—it’s about keeping your sanity while the rest of your assets do their best rollercoaster impressions. When the markets are wild, cash flow is your emotional support income.

3. Inflation Actually Works for You (For Once, Something in This Economy Does)

Usually, inflation feels like that annoying friend who eats your fries, borrows your hoodie, and never pays you back. But when you own real estate? Suddenly, inflation becomes that unexpected sidekick who actually helps out.

Here’s the deal: as prices go up, so do rents and property values. So, while everyone else is panicking over the cost of eggs and wondering if they should start a backyard chicken farm, you’re just over here watching your rental income rise with the tide.

It’s like inflation finally decided to stop being the villain and join your team. And honestly? We’ll take the win.

4. Real Estate Is a Tangible Asset (You Can’t Live in a Stock Certificate)

Let’s be real—owning stocks is great until the market crashes and all you’re left with is a pie chart and an existential crisis. But real estate? It’s there. You can touch it, walk through it, paint the walls neon green if you really want to (though maybe… don’t).

You can’t crash on the couch of your mutual fund. You can’t Airbnb your NFT. But you can buy a property and turn it into income, equity, or your own personal HGTV project.

It’s an investment you can actually stand in—preferably on solid hardwood floors.

5. Opportunities Are Everywhere Right Now (If You’re Not Afraid to Poke Around a Little)

Sure, interest rates are higher and the news makes it sound like the financial apocalypse is upon us—but guess what? That’s exactly when some of the best deals sneak onto the market, quietly whispering, “Hey… you up?”

When everyone else is running for the hills (or just binge-watching Zillow listings without actually buying), savvy investors are out there scooping up underpriced gems, negotiating like champs, and getting the pick of the litter. It’s like Black Friday for real estate—except with fewer stampedes and more closing costs.

The market isn’t dead—it’s just quieter. And in that calm? Opportunities are doing cartwheels, waiting for someone to notice.

6. Tax Benefits Help Maximize Returns (A Rare Chance to High-Five the IRS)

Real estate is one of the few places where the tax code actually feels like it’s rooting for you. Depreciation, mortgage interest deductions, 1031 exchanges—it’s like a secret menu of financial perks.

And let’s be honest: finding out you owe less in taxes because you own property is the adult equivalent of finding money in last winter’s coat pocket… times ten.

It’s one of the only times you might feel tempted to whisper, “Thanks, Uncle Sam,” and actually mean it. (But don’t get too excited—he’s still charging you for that latte and a half you bought last year.)

7. You’re in Control (Finally—Something in Your Life You Can Actually Manage)

Let’s face it: you can’t control the stock market, gas prices, or how your neighbor insists on mowing his lawn at 6 a.m. on Saturdays. But real estate? That’s where you get to play boss.

You decide which property to buy, what rent to charge, whether to renovate the kitchen or just slap on a fresh coat of paint and call it “vintage charm.” Want to Airbnb it? Long-term tenant? Paint a mural of a cat playing a saxophone on the side? Hey, it’s your kingdom.

In a world full of uncertainty, investing in real estate is like saying, “You know what? I will be the main character today.” And your property? That’s your stage.

Final Thoughts:

Let’s be real—real estate isn’t always glamorous. There will be leaky faucets, weird smells, and the occasional tenant who thinks “rent due on the 1st” is just a loose suggestion. But despite the quirks, real estate remains one of the few investments where you can build wealth while literally sitting on your assets.

In a world where the economy feels like it’s being run by a magic 8-ball, real estate gives you something solid. Something that pays you back. Something you can point to and say, “That’s mine, and it’s making me money—even while I sleep (or doomscroll Zillow).”

So, while others panic about interest rates and refresh their stock apps like it’s a game of financial roulette, you? You’re playing the long game—with cash flow, appreciation, and some sweet tax perks in your corner.

Because at the end of the day, bricks and mortar beat bricks of gold… especially when someone else is paying the mortgage.

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Five Reasons I Would Hate to Be a Custom Home Builder (And You Would Too)

Let me start by saying this: custom home builders are saints. They deserve medals, parades, and a lifetime supply of coffee or whiskey or whatever they want. Why? Because their job is like trying to build a house of cards… in a hurricane… while a group of opinionated people stand behind them yelling, “Can it be blue instead?”

And just maybe it’s because our family investment company is in the throes of new construction and permitting, and building, and listing said construction, and all the things that’s making me feel so passionate about NOT wanting to be a custom builder.

First things first. We are spec home builders. That means we come up with the designs, build the house, list it AFTER completion and sell it.  This, in and of itself, is hard work.

HOWEVER! Compare it with:

A custom home saint builder builds a house according to the owner’s design or even a design the builder provides with various options and finishes. The homeowner and builder work closely together to complete the project. 

When I say “closely,” think Glenn Close close in Fatal Attraction. 

So yeah, let me give you five reasons why I would rather wrestle an angry alligator while blindfolded than take on that job.

1. Your Boss is Johanna/Chip Gains (or thinks so, at least)

When you’re a custom home builder, you’re not just working for clients—you’re working for Alan, the amateur architect who used the free version of Home Dezign.com this weekend and thinks they’re now ready to pull permits. Along with Alan, you’ll also be working for Pam, the Pinterest consultant who has boards full of ideas, none of which will fit in their budget but is convinced it can be done. 

Buckle up for a never-ending parade of questionable ideas from people who just binge-watched three episodes of HGTV.

1.5 Your Boss is NOT Your Friend

It all starts well and good. They’ve seen your work, your designs. They’ve stroked your ego and said over and over again how “easy” they will be to work with. <Red flags start waving; you hear sirens blaring from somewhere>

Don’t be surprised when, halfway through the project, you’ve been labeled as public enemy number 1, and your professionalism, your integrity, and whether or not you might be color blind are all up for discussion and debate. 

2. Deadlines Are DOA

In custom home building, the timeline is like Bigfoot—everyone talks about it, but no one’s actually seen it. Clients want everything done yesterday, but then they suddenly need “a week to decide”  on the hardwood floors they picked out a month ago. Or the paint color that looks too warm now. Or is it too cold?

The deadline is gone. It’s crying in the corner with your sanity. Actually not sure you really had either of those things. 

3. Weather Schmeather

Rain? Snow? Tornado? It doesn’t matter—Mother Nature doesn’t care about your construction schedule.

Imagine this: You’re trying to pour concrete for a foundation. Suddenly, it rains so hard you wonder if you should add an ark to the design. But hey, the client just texted to ask if they can “move the master bedroom to the other side of the house.” Because, of course, that’s the real emergency.

4. You’ll Become a Counselor

Being a custom home builder isn’t just about homes; it’s about people. And people are… complicated.

You’ll mediate arguments between spouses about backsplash colors. You’ll calm clients when their dream countertop is back-ordered. You’ll explain (again) why they can’t install a fire pit inside their walk-in closet.

By the end of the project, you’re not just a builder—you’re their life coach, marriage counselor, and part-time babysitter.

5. Budget Woes

Clients start with a budget. Then they see shiny things. Suddenly, that budget is about as relevant as a flip phone.

Client: “We want to add a sauna, a marble fountain, and heated floors in every room. Is that possible for, like, $1,000 extra?” Builder: “Sure, if by $1,000 extra, you mean $50,000 extra.” (They always mean $1,000 extra.)

I get it. Building a home, especially your personal home, is a huge undertaking. Not just financially but emotionally and physically. It’s stressful, to put it mildly.  I know because we’re currently building our own personal home.

And I’d make any builder who had to work with me question their sanity. Luckily it’s just the Hubs and he’s stuck with me.

So, call me a coward, but we’ll just be sticking to spec home builds. 

To all the custom home builders out there, I salute you. May your coffee stay hot, your clients stay reasonable, and your deadlines… well, good luck with that one.

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“Home Sweet Affordable Home”: Tackling the Housing Challenge in Northwest Arkansas

Affordable housing is the cry of just about any major metropolis or fast-growing area in the United States. We left Austin almost two years ago, largely because the cost of real estate, remodeling, and building had become unsustainable, at least for us.  Affordable housing was simply a buzzword that the city liked to throw around council meetings to make themselves feel good while continuing their high regulations process, which caused the price of real estate to continue to rise. Oh, the irony.

Speaking of irony, after leaving Austin, we ended up in the most expensive area of Arkansas…NWA. 

While we love it here, we realized Bentonville and the surrounding areas have their own housing issues. Affordable housing and the ability, as a builder, to offer it is a huge issue. Because I’m up to my eyeballs in construction and maybe because I’ve had four cups of coffee this morning, I’ve got many ideas, but for the sake of time, let’s start with three. 

First, addressing the affordable housing shortage in Bentonville and the surrounding area isn’t a simple, one-and-done solution. It will require a multifaceted approach involving policy reforms, public-private partnerships, and community engagement. 

Buckle up, city folks because the first thing that needs to happen is: 

1. Implementing Policy and Zoning Reforms

Expedited Approval Processes. Ya’ll are killing us with your ever-evolving approval and permitting processes (I’m looking at you, Bella Vista). By streamlining the development approval process you can help us builders reduce construction timelines and costs, which can then be passed on to the public.

I’m not the only one saying this. In November of 2021, the city of Bentonville created a Housing Affordability Workgroup specifically to review housing needs, availability, and affordability in Bentonville. While city review groups normally give me a tic under my left eye, this one has some good ideas, specifically by recommending creating expedited processes for small-scale developments and affordable housing projects that meet specific criteria. 

Like I said, settle down wielding your permitting power, city people. 

2. Fostering Public-Private Partnerships

Collaborative Developments: An affordable housing community was created in collaboration with Excellerate Housing, Bentonville Schools, Benton County, Mercy, Walton Family Foundation, and Arvest Bank. McAuley Place exemplifies successful collaborations aimed at increasing affordable housing. This 160-unit development, located near the Bentonville Community Center, includes single-family cottages and multifamily units designated for local educators and staff. 

We need more of these.

Financial Incentives: Offering tax incentives, grants, or subsidies to developers who include affordable units in their projects can stimulate the construction of such housing. The federal Low-Income Housing Tax Credit (LIHTC) program, utilized in developments like McAuley Place, is a model for leveraging financial tools to support affordable housing. 

And finally, for today, 

3. Engaging the Community and Stakeholders

Housing Affordability Workgroup: Established by the Bentonville City Council, this group conducts reviews of housing needs, availability, and affordability and provides recommendations to the city. Their efforts have led to the development of Project ARROW, a targeted approach to increasing affordable housing supply through education and collaboration.

Educational Campaigns: Raising awareness about the benefits of affordable housing and involving residents in planning processes can build community support and reduce opposition to new developments.

By furthering the above ideas, we can improve the affordable housing situation in NWA or at least begin to move it forward. 

While I don’t have a crystal ball, all signs point to the fact that interest rates will drop sometime this year, and the housing market will heat up. 

Let’s prepare and be ready.

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“Coffee, Whiskey, and the Truth About Real Estate: Why NWA’s Market Is Heating Up in 2025”

I need another cup of coffee before I dive into this.

 Or a glass of whiskey. 

I see posts like this all the time. While they’re most likely meant to grab reactions, they’re a demonstration of ignorance at best. 

I know every real estate market is different. I’ve got my finger on the pulse of both the Austin market and here in Northwest Arkansas. I get it. However, the fact of the matter is that a president, whether Democrat or Republican, will not be able to come in and single-handedly “crash” the real estate market. Wherever you’re at.

Since NWA is my home, I’m going to give you four solid reasons I believe we will see housing prices continue to rise here and why this spring will indeed be a hot market. No matter who you voted for.

But first, let’s talk about how stuff works. 

Yes, I know that a political administration’s policies will affect the market. But I also know how our economy works, as well as the Federal Reserve and their decision on what to do with interest rates, which is what really dictates what happens in all things real estate. 

A quick lesson in how the Fed determines what to do with the interest rate. 

The Federal Reserve does not make arbitrary decisions based on the last election cycle. Decisions regarding whether to lower the interest rate are based on multiple fronts.

  • Inflation: Target inflation rate is 2%. If inflation remains below this rate, this is an indicator rates could drop. Today’s current rate is 2.7%, which is a huge improvement from June of 2022 where it was as high as 9.1%.
  • Employment and labor markets: Higher unemployment rates, slow job creation, and stagnant wages could trigger a rate cut.
  • Economic growth: Slower GDP growth and a drop in consumer spending could signal a cut.
  • Stock market trends: Sharp declines can influence the Fed’s decisions on rate cuts.
  • Global market trends: Global slowdowns can also predict what direction the Feds could take in regard to rate cuts.

…just to name a few. Even natural disasters can affect the decision to raise or lower the interest rates. 

And yes, I know certain policies will affect the market. But please. Stop the fatalism. The sky is not falling, no matter who the president is. 

Now, grab yourself a hot cup of coffee, and let’s go to my four reasons why I believe we’ll see a boon in the NWA market. 

  1. Continued Economic Expansion. Everyone knows Bentonville is the home of Walmart. But did you know J.B. Hunt, Tyson Foods, and Simmons Food all call this area home and continue to attract a skilled workforce? Additionally,  Walmart’s new  1 billion dollar “Home Office” campus, set to open in 2025, is expected to continue to boost local employment and housing demand.
  2. Population Growth: Let’s talk people. Bentonville’s population rose by 2.7% in 2023, and it’s not slowing down. This indicates a sustained demand for housing.
  3.  Limited Housing Inventory: While there’s lots of new construction happening here, housing inventory is still low. This means increased competition for buyers and higher prices. According to the Skyline Report, in the first half of 2024, 4,799 homes were sold in Benton County and nearby areas, marking an 8.5% increase from the previous year, with 39.5% being new constructions.
  4. Stable Mortgage Rates: Finally, future projections indicate that mortgage rates may decline slightly this year, encouraging even more buyers to enter the market and increase housing demand.

Do I have a crystal ball? No. Sure wish I did sometimes, but I don’t need one to determine whether or not the market is going to crash this year. All facts point to a growing real estate economy in 2025.

Similar to my waistline from the holidays. But I digress.

So, to my real estate colleagues, stop worrying, get out there, and sell some houses.

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NAR Changes: Are They Good or Sucky?

It’s been six days since the new NAR ruling took place, and you’d think the sky had fallen on brokerages everywhere. To a certain extent, it feels that way. Especially in light of all the misleading media and sudden real estate gurus. First, to recap. Here’s the new rules in a nutshell:

1. Buyers are now required to sign a contract with an agent before the agent can show them any properties. This is not exactly a brand new requirement, as most states (and any agent worth his salt) have already adhered to this. However, it is now mandated for all agents who are members of the National Association of Realtors (NAR)—a group that includes a substantial 1.5 million agents across the U.S.

2. Commission changes – Prior to the settlement, NAR members who listed properties would offer shared commissions through local multiple listing services (MLSs)—the platforms where most homes are listed. Typically, sellers paid around 6% of the home’s sale price, with 3% going to their own agent and 3% to the buyer’s agent.

Now, MLSs are no longer allowed to display these offers of compensation. While sellers and their agents can still negotiate and agree to pay a buyer’s agent fee, this must be done separately from the MLS. As a result, there may be situations where sellers won’t contribute to the buyer’s agent fee, placing the full responsibility on the buyer. Buyers will then need to either cover their agent’s fee out of pocket or handle the transaction independently without an agent.

First, the gloom and doom, I-need-a-drink, the sky is falling, sucky stuff: 

~ Many first-time homebuyers will not have extra cash to pay a buyer’s agent. They will either end up unrepresented or try to jump through hoops with their lenders to see if they can increase the sales price and then have the concessions/money to pay their agent at closing. Unrepresented buyers could potentially be taken advantage of, and some lenders won’t allow a buyer to include money for a buyer’s concession. 

~ Some agents will knowingly or ignorantly be guilty of steering their buyers towards properties that will offer a buyer agent compensation.

~ Some boneheaded listing agents will pressure their sellers to offer x amount to a buyer’s agent.

~ Buyer’s agents might end up working for free.

~ Sellers will lose money.

While the above may happen, there are some positives in the sky-falling free-for-all the real estate world currently feels like.

~ All prospective buyers must now sign some sort of agency agreement to even tour a home. This protects the agent who is showing complete strangers an empty house and clearly spells out the details of the client relationship with the buyer.

~ If done correctly, this arrangement should provide transparency to the buyer about their possible financial responsibility.

~ Crappy real estate agents will be weeded out. Harsh, I know, but there are a lot of those, which is why we’re in that situation.

So to my real estate colleagues, buck up, little campers, it’s just an acorn, not the sky that’s falling. Let’s tackle this new challenge head-on holding on to our ethics, our sanity, and our whiskey bottles.

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Real Estate Drama: NAR’s Big Settlement Fiasco – Fact vs. Fiction

If you are a real estate agent, buyer, seller, investor, casual perusaler (ok, not a real word) of real estate, or just haven’t had your head under a rock these few months, you’ve seen the big news regarding NAR (National Association of Realtors). Last March, NAR announced that they had reached a settlement agreement to resolve litigation brought by home sellers related to broker commissions. Once that story broke, the media had a field day with misinformation. Agents everywhere began profusely sweating and drinking heavily.  So, facts first:

1. NAR is required to pay out $418 million over the next four years.

2. NAR agreed to create a new MLS rule prohibiting compensation offers on the MLS (Multiple Listing Service). 

3. NAR also agreed to create a new rule requiring MLS participants working with buyers to enter into written agreements with their buyers before the buyer tours a home.

When the news came out, media outlets everywhere began distributing disinformation. Yahoo, NBC, and Joe Biden himself all had something to say, and what they said was largely untrue. 

It was falsely reported that prior to the settlement, real estate commissions were a required and fixed amount of 6%, with 3% going to the listing agent and the additional 3% to the buyer’s agent. Further reporting insinuated that the commissions were legally mandated and set by the National Association of Realtors, the government, or even the Grand Poobah of Greedy Real Estate Professionals Everywhere—whoever that is. 

The truth is that commissions have always been negotiable, not required. Sure, 6% became the industry standard, but it was not the industry requirement. There are many flat-fee agents, brokerages that offer discount services, and even brokerages that specialize in 1% listings.

It has always been well within a home seller’s (or buyer’s) rights to negotiate commission. 

The real problem is crappy agents, specifically listing agents, who do not do a good job of communicating details to their clients. Essential things like how much listing their house is going to cost and the fact that while a listing brokerage may have a standard fee that they charge, those fees are not some mandated amount that can not be negotiated. 

As an agent, disclosure and accounting are part of our fiduciary duties. So, instead of holding those agents responsible for neglecting their fiduciary duties, what was once a pretty transparent process has now been convoluted. 

How? I’m so glad you asked. Let’s compare the new process to the old. Grab yourself another cup of coffee (or a shot of whiskey), and stick with me.

1. Listing process/listing agreement. 

Pre-NAR ruling: When listing a property with a brokerage, you must sign a listing agreement that discloses all the deets and allows that brokerage to sell your property. One of its most important parts is disclosing how that brokerage gets paid. Previously, and depending on your state, that information was a paragraph that included a place for total commission collected at closing and then a place that discloses how that commission might be split between buyers and sellers agents. Again, commissions have, and always have been, negotiable. However, it was typically expected that the seller’s agent would pay the buyer’s agent for bringing a buyer. 

Post NAR ruling: 

Truthfully, we don’t know yet how commissions will be addressed. I believe there will be a place for the listing commission and perhaps another place for the seller to offer a buyer’s agent commission.

Or not.

I assume there will be because the settlement does not say that the seller can’t offer the buyer’s agent a commission. Moreover, the suggested verbiage currently being discussed is about as clear as the congressional budget. 

2. MLS (Mulitple Service Listing rules)

Pre-NAR ruling: Listing agents would list the amount the seller was willing to offer the cooperating broker to bring a buyer. It was typically between 1% and 3%, depending on the NEGOTIATED amount.

Post NAR ruling: Seller agents are now prohibited from disclosing any amount of commission that might be offered to cooperating brokerages on the MLS. That line item will be removed from the listing input completely. 

3. Written buyer agreement.

Pre-NAR ruling: I can’t speak for every agent but I ALWAYS required buyers to sign one of these. A written buyer agreement clarifies the difference between being a customer versus a client and lays out the agent’s and client’s responsibilities. It enables the agent to receive commission and, depending on your state, gives the agent exclusivity with that buyer. Meaning the buyer must use the aforementioned agent to buy a house. Most importantly, at least for me, was protection. If a buyer signs that agreement, it means I have personal information, probably a pre-qual letter from a lender, their driver’s license, and the peace of mind that they’re probably not a serial killer trying to lure me to an abandoned house and murder me.

Post NAR ruling: This is now a requirement for agents working with buyers….which….again…I thought was already a thing. However, the new agreements will include a place for the buyers to check if they are willing to pay their agent’s commission out of pocket if the listing agent doesn’t pay it.

This has led to multiple media outlets, who have no actual idea how this works apparently, to claim the ruling is a win for home sellers and will drive down housing prices as real estate commissions are expected to fall 25-50% 

HAHAHAHAHAHAHA!!!

Right. 

I’d like to see some agents convince their sellers to lower their list price by $10,000-$20,000 or more in some cases since they’re not paying a buyer’s agent. Not gonna happen. 

This ruling and the subsequent garbage analysis being tossed around are doing nothing but confusing people, hurting sellers, and marginalizing certain buyers. 

Think I sound dramatic? Lemme tell you why. First, sellers who believe it will help them financially not to offer a buyer agent a commission will do nothing other than limit their buyer pool. First-time homebuyers, who make up more than 50% of the market, will be disadvantaged. Most have saved up for a down payment, closing costs, and inspection fees. They don’t have the extra $10,000 plus to pay an agent. So those buyers probably aren’t going to come through Mr. Seller’s doors. The house may sit longer on the market, requiring multiple price drops and leaving the seller with less money than if he just offered compensation to the buyer’s agent.

Some first-time homebuyers will also have fewer choices if they don’t have extra money to pay a buyer’s agent and have instructed their agent only to show them properties offering a buyer’s agent commission. Other buyers will lose out on properties in competitive markets. Yet other buyers may find themselves trying to navigate the process on their own, and becoming unfairly taken advantage of.

How many lawsuits will come out of this? 

I’m not a betting woman, but I might take this one. 

Unfortunately, I believe we will see an increase in significant issues in areas that have been unproblematic for years. This NAR ruling forces good agents to walk a very thin tightrope in providing our clients with the fiduciary duties they are sworn to perform as members of the National Association of Realtors.

Stay tuned for some fallout. 

Meanwhile, I intend to continue giving each client my very best.

Just with a little more paperwork and a lot more coffee.

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Five Sure-Fire Ways to Make Sure it Sells!

Alright, alright, alright (channeling my Texas roots and inner Matt McConaughey)! It’s January, and you know what that means?? I mean, besides renewing my coffee club membership? It’s almost selling season! Spring is almost here. At least that’s what I keep telling myself as we burrow down over here in Bentonville in preparation for the Artic Blast of 2024 and negative temps. Brrr…

But I digress. So, without further ado!

  1. Hire An Awesome Agent!
AWESOME AGENT HERE!

Ahem….this is where you call or email me if you’re in the NWA area…..seriously though, wherever you’re at, you need a great agent. Now, I can hear you already, “I can sell my house myself.” “This is the digital age.” I don’t need to pay someone 6%”. Time out. Lemme take a quick little aside and give you just a couple of reasons it pays to have an agent on your side

Expertise – We know our market. The top reason most houses do not sell promptly is pricing! An expert agent will nail the price and have you moving down the road.

Network and Resources-  We know people. People who may want to buy your house or bring someone who wants to buy your house.

Legal and Contractual Expertise– Real estate agents are not attorneys, but we know a thing or two (or a million) about real estate contracts. A good agent will explain all the deets to you.

Time and Effort: A really wise old dude once said, “Two are better than one, Because they have a good reward for their labor.” Ecclesiastes 4:9 While you may be knowledgeable and capable, it’s great to have someone on your side to help with the heavy lifting. Both furniture and all the other home-selling tasks, from coordinating showings to negotiating offers.

Ok…back to our list.

2. Spruce Up Your Curb Appeal!

The exterior of your house is the first thing potential buyers will see. Ensure it looks appealing by maintaining the lawn, cleaning the driveway, and adding colorful plants.

3. Repair:

Look around your home with a critical eye. Are there any repairs you’ve been putting off? Leaky faucets, chipped paint, or squeaky doors are all easy and affordable fixes. You might also consider springing for a pre-inspection. More on that in another post. 

4. Declutter and Depersonalize!  

Clear out any clutter and personal items to help potential buyers envision themselves living in the space. Consider renting a storage unit if necessary.

5. Professional Photography and Staging! Don’t skimp out on this! High-quality photos and professional staging can make a significant difference in attracting buyers. Consider hiring a professional to showcase your home in the best light.

By implementing these tips, you can increase the chances of selling your house quickly during the peak selling season. Call me today to grab coffee and talk about getting your home sold during this upcoming selling season.

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The #1 Secret Your Real Estate Agent Wants You to Know

Have you ever bought or sold real estate? If you have, you know what it’s like to sweat through the offer, inspection, appraisal, and negotiation process. You either made it through to the end with success or a whiskey caffeine addiction and a twitch under your left eye. Or all of that.

Maybe it was easy-peasy thanks to a fabulous agent who made it look like a walk in the park, and you know nothing about said agent’s new nicotine addiction. 

But here’s the deal. Even if you had an award-winning, go-getting, nerves-of-steel-even-after-6-cups-of-coffee agent who makes it all look like sunshine….it’s not. Real estate, albeit enjoyable, is challenging. You’re dealing with human beings and their emotions centering around the most significant purchase they will ever make, dealing with some of the most important decisions they will ever make. Throw in any number of other extenuating circumstances, like:

  • Foreclosure
  • Divorce
  • Death

Just to name a few…..

And you have a recipe for a high-pressure, trauma-inducing, therapy-necessitating event. 

Having just anybody represent you is not a great plan. But even if you have the best possible agent beside you, you need to know something. It’s actually the number one secret that every agent wants you to know.

Ready?

Real estate agents do not own a crystal ball. 

Shocking, I know, but the fact remains that we can give you the very best updated market statistics. A detailed comparative market analysis, including showing you the average days on the market for properties in your area. We can send you spreadsheets, videos, and data with exhaustive information regarding interest rates, potential buyers, and marketing scenarios, but at the end of the day….

We’re just really educated guessers. The most experienced agent can give you all the information, list, and market your home perfectly, and it might not sell right away. Although real estate is all about numbers, list price, days on the market, interest rates, and potential buyers through the door, ultimately, it’s also about people. People who have emotions, life changes, and changing desires. 

As an agent, anxious sellers often ask me how long I think it will take for their house to sell. And with all the confidence of a 4-year-old in a Batman shirt, I cite the current market statistics and pray for the best. 

And I consider myself a good agent. 

So I guess what I’m trying to say is be realistic and don’t assume your agent has psychic skills, a crystal ball, or practices witchcraft. 

However, there are ways you can help mitigate some of the unknown. First, listen to your agent. Even without black magic, a good agent (like me!) can guide you through the process.

Remember, homes require three things to successfully sell. Price, marketing, and condition are the most important criteria. Listen to your agent’s advice about these three points. If you do, I can almost guarantee your house will be sold, and you’ll be on your way to new pastures. 

Second, give yourself and your agent grace. Selling (or buying) is a process, often with factors out of your control as well as your agents’. 

And finally, practice patience! We know that you want and need your property sold. No one wants it to happen for you more than your agent. It can be a difficult and emotional journey, but patience is the best trait to bring with you for the trip. 

As a final aside, going through a challenge with someone can often bring you closer. Facing obstacles together allows individuals to rely on one another, offer support, and work towards a common goal. In the process, connections can grow stronger, and what once started as a challenging situation can lead to developing a meaningful friendship. So, embrace challenges with an open mind, as they may bring you the gift of a good friend as well as a fabulous agent. 

Now I’m off to eBay to see if they have crystal balls for sale.

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So What’s the Deal With the Ugly Home Buyers Anyway?

We’ve all seen those signs for the “ugly house” buyers. Maybe you’ve personally considered giving them a call. But what do they do exactly? What’s the process, why do people choose to sell this way, and is it even legit?  Grab a cup of coffee (I’m already on my 3rd), and let’s see if I can answer these questions.

Our family has been investing in real estate since 2006, so I’m pretty well-versed in how this works. First, let’s talk about what a traditional sale on the open market might look like, and then we’ll compare that to a sale to a real estate investor.

Traditional sale:

The first step is to find a great agent who knows your area well. From there, the preparation of the home for the market begins. This includes paperwork, cleaning, staging, more paperwork, photos, and more paperwork. This process can take weeks. Once your property hits the market, potential buyers traipse through your home with their agents while you wait, drinking copious amounts of liquor or coffee, definitely Pepto-Bismol, for offers to come in. The average days on the NWA area market are 89 days (as of July 2023). 

Once the home is under contract, it takes anywhere from 30-45 days to close and fund. During that time, you, the seller, sweat through an option period while drinking more coffee/liquor, which can last up to 10-14 days  (the option period, not the liquor), where the buyer has the unrestricted right to back out of the contract for any reason. At this point, the buyer will bring in a 3rd party inspector to go through the home with a fine tooth comb, unearthing every possible issue, from the crack in the fireplace tile to the struggling HVAC. While it is vital that a buyer does their due diligence, it is also a very stressful time for the seller.

If all goes well during the option period, the buyer’s lender will order the appraisal, and you will enter yet another waiting period to be sure the home meets value. At this point in time, you will probably now exist solely on Pepto Bismol. On the closing date, you must vacate and clean the home for the new buyer. Traditional home sales usually have very little flexibility because you are working with buyers who have timing constraints of their own that need to be met. Plus, they won’t want a Pepto-Bismol addict living in their new home.

About 80% of home sales typically happen this way. That’s a lot of liquor and Pepto Bismol.

The other option is:

Selling to an investor:

First of all, it is legit. Well….if you’re dealing with a professional homebuyer. We’ll address that in another post. Overall, you may wonder why someone chooses this route anyway. Here are the three C’s of why this could be a good option for a seller.

Controlled Sale

Convenient Sale

Critical Sale

The Controlled Sale is an ideal option for homeowners who desire greater control over the timing and pricing of their property sale, and alcohol and Pepto just won’t cut it for them. This approach is particularly advantageous when the seller needs to secure the proceeds from the sale to rent or purchase a new residence, and they need to remain in the current home until the transaction is complete. Reputable investors or investor companies involved in Controlled Sales often offer the flexibility of a short-term lease back or transition period, allowing sellers to smoothly transition to their next living arrangements. Additionally, a Controlled Sale can be an optimal solution for individuals experiencing legal issues such as divorce or undergoing a relocation for work, where precise timing is crucial. With a Controlled Sale, sellers can confidently navigate their unique circumstances while maintaining control over the sale process and eliminating much of the stress.

Then there are those sellers who may need a Convenient Sale. They simply do not have time for the repairs or preparations needed for listing with a real estate agent. The seller might have inherited the property with or without a probated will, and there are legal ramifications to wade through. The seasoned investor is knowledgeable about working through heirship and probate issues.

Perhaps the seller is dealing with an emotionally charged situation and is in no position to cope with open houses, inspection periods, or be subject to the pressures of a demanding buyer. It is common for a landlord looking to exit the rental business, who needs to sell and is mindful of the tenants still in place, not wishing to disrupt them or cause undue pressure or stress. Simple and smooth is what the seller who needs a Convient Sale is looking for.

Finally, a Critical Sale can be a lifeline for sellers facing urgent financial circumstances. Whether the seller is caught amid bank foreclosure proceedings, struggling to maintain the property, or paying mounting property taxes, time is of the essence. Unlike a traditional market sale, a Critical Sale provides a fast and hassle-free solution. With the help of someone knowledgeable about the foreclosure process in Arkansas, a smooth and quick sale can be achieved. For sellers in dire need of a quick exit strategy, a Critical Sale is the answer they have been looking for.

So now that we’ve identified the three “C’s,” let’s talk about what an investor does. A reputable real estate investor will likely come in and purchase the property with cash, a short closing, and a timeline to address any of the three C’s we just mentioned. Their process should be simple and straightforward. However, the negative is you will not get as much money for your property going with an investor. They typically look to purchase properties somewhere around 65-75% of retail price. Remember, they are business people, not a charity. Their exit strategy will involve taking into consideration how much it will cost them to make repairs or updates and the value of the property after repairs are made (ARV)

Selling your house to an investor is all about convenience. Think about the difference between a 7-11 and a grocery store. You’ll pay more for a loaf of bread at a convenience store, but it sure is easy to run in and grab it.

For a lot of people, however, it is more important to get as much cash out of the sale of their property as possible, so it’s worth it to them to go the traditional route. Remember, everyone’s situation is unique.

So now you know the difference between selling on the open market versus selling to a real estate investor.

If you have more questions, check out our family business’s website at http://www.sellmyhousearkansas.org, where you’ll find more info on the process and learn what to look for in a reputable investor. That way, you don’t end up hooked on Pepto-Bismol after all.

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Why Arkansas?!

I’m only on my second cup of coffee this morning, so I’m still moving slowly, but I had a thought. I was just thinking about how people are always asking us why we moved to Arkansas from Texas, especially amid economic turmoil The funny thing is, we moved out of Texas BECAUSE of the economic turmoil. Especially when it relates to real estate there.

Unless you’ve been living under a rock, you know that Covid did some insane things to the real estate market. However, the market in Austin was like nothing I’d ever seen before. It was enough to drive the most staunch Baptist to drink. In the midst of these fun times, our family decided to start looking elsewhere. And it’s true, overall, things are a little unsettling. Turn on the news or hop on to social media, and you’ll be blasted with bad news from everywhere!  But in our latest relocation adventure, we’ve discovered that it’s not so gloomy and doomy everywhere.

Here in NWA, it’s a whole different climate than Austin…and I don’t just mean the weather.

  • In 2022, the NWA area was ranked the nation’s 13th fastest-growing metro area.
  • A healthy job market with a welcoming environment for entrepreneurs as well as home to three of the Fortune 500 companies, Walmart, Tyson, and JB Hunt.
  • The low tax rate on state income tax.
  • A plethora of outdoor activities, specifically mountain biking.
  • A robust cultural environment complete with live music and art (pretty important to this Austin gal)
  • A healthy housing market with sustained appreciation and affordable housing.

It’s a crazy thought to pack up one’s entire family and move to a completely different state, and I fully appreciate the fact that we were in a position to do so. This is not a possibility for everyone. However, I think sometimes fear holds us back more than anything else. It was a risk, but isn’t that true of just about everything in life? Maybe I’m a risk taker (although my teenagers would disagree), and that’s why I love real estate. Regardless, our move here was one of our best decisions.

So grab a cup of coffee, and let’s talk NWA real estate!