Through the Years: Today's Real Estate Transaction

It is not uncommon for many folks downsizing to have lived in their home for many decades. The world of real estate may have changed dramatically since the last time you bought or sold a home. What are some of the things that have changed in the last several decades and what is the real estate sales process like nowadays?

• Home Prices

According to Google, home prices have risen 2000% since 1970 (1200% inflation adjusted value increase). Wow! 

• Online is the Norm

From looking at real estate options to signing documents, a lot of things can happen online. Buyers can even submit earnest money online. Not everyone is comfortable with doing things through the internet. Make sure you find an agent who can adapt to your preferences, whether that is doing paper contracts, having phone calls about available homes, etc.

• Quick Pace

Because information is so readily available to consumers and because of the strength of the current market in our area, the real estate market moves very fast. It is not uncommon for a home to receive multiple offers after only being listed for a weekend. You might have to make a decision on whether or not you want to accept an offer within a 24-hour time period. Home closing timeframes vary as well but it is not uncommon for a buyer to be ready to close on your home within 30 days. You still have control over your preferences though to some extent, so don’t let this fast pace scare you.

• More Complicated Forms

In the span of my career alone, the real estate forms have doubled in length. There are more contingencies to account for, more requirements to satisfy, and more i’s to dot and t’s to cross. The paperwork can be overwhelming, so make sure you have a great guide. Lenders also have more regulations on them since the early 2000s real estate crash and buyers will sign many more pages of forms to purchase a home than they might have decades ago.

• Buyer’s Agency

Buyer’s Agency is when you have a dedicated agent representing your interests as a buyer. This has been around in Wisconsin since 1986, but for folks who have owned their home for more than 40 years, this might be a new concept to you.

While much has changed, there are some things that probably have remained the same since you last completed a real estate transaction.

• Representation Options

There are so many different agents to choose from. This is great as every consumer has slightly different expectations from the process, needs in an agent, and budget.

• Commissions

There is no hard and fast rule or law around what commissions a seller pays. It remains a common practice that sellers pay their listing agent as well as the buyer’s agent who brings a buyer to sell their home. 

• Options for Selling

You can hire a realtor to help you sell your home. Or you can sell it yourself as a For Sale by Owner (FSBO). There are also auction companies you can work with. Or you can sell to a cash buyer who will help you get the cash for your house fast by offering you a quick sale at a below-market price.

Today’s market can be overwhelming to long-time homeowners. At Jess Lex Homes, we have experience working with folks just like you and do our best to break things down and take away the stress and overwhelm that comes with buying or selling a home in today’s market. Please reach out if you need someone to help you sort through it all. We would love to help!