Real estate agents have not had to deal with negotiating home inspection issues for a years because the market was so hot that buyers were purchasing properties without a home inspection. In this column, I'll address: - Correctly negotiating a home inspection response so the buyer and seller actually get what they want and avoid needless last-minute surprises which can cost money and possible legal action. - Options when the seller does not complete (or complete correctly) the requested repairs. - Too much money - when the buyer wants more than the loan program will allow for home inspections. ================================== The Right Response Every home inspection uncovers defects. It's nothing for the seller to defend and for buyers to freak out about. Every home is slowly falling apart - even if it's a new build. I'm assuming most reading this article understand the basics of the home inspection (find defects, provide opportunity to negotiate fixes and replacements, or cancel the contract and earnest money deposit is refunded). Here are the mistakes I witness in this process - it's enough to drive a broker to drink (heavily!) #1 - UNCLEAR ABOUT WHAT YOU WANT, when you want it, and what happens (the consequences) for missing the deadline What Do You Want? Say it - don't hint around, and don't cut and paste the inspectors findings in the HICRA - "The HVAC is not operating optimally" is a passive way of saying "Seller to have HVAC system inspected, serviced and repaired or replaced by a licensed HVAC company." If the buyer actually wants a new HVAC system because it's at the end of life - then say it: " Seller to replace HVAC system." And that enters us into another issue #2 - ASKING FOR TOO MUCH SELLER CONCESSION When the buyer has negotiated closing costs concession, adding on home inspection credits could catapult the concession beyond what the lender will allow. And the level of credit depends on the down payment the buyer is making.

In the 2000’s this is about the fourth shutdown of the federal government. It has an effect on the northern Virginia real estate market but not as much as you might imagine. We have about 81,000 federal employees. That does not include the contractors who do a lot of the work on the federal contracts. During the last two shut downs in 2012 and 2018, the number of listings and sales and contracts written did not really deviate much from the year before. Less than 1% less contracts being written and fewer listings being put on the market. The shut down seems to have a more of a psychological effect and a disruption in employment for the future, but it doesn’t really affect the market. Employees will be made whole with lost wages, returned to them once the government opens up again. So on the short term, they have to budget really tight and some will delay either moving into a new home or selling the one they’re in.

How do I get a BPO for my Listing?

Any worker in Virginia performing electrical and plumbing work must have a Virginia license to conduct their trade in the state. ( If they work on projects more than $1000, they also must carry a contractors license.) Licenses for trades work is required for • electrical • plumbing • gas fitting and mechanical • HVAC There are three levels of contractors in Virginia: (https://www.procore.com/library/virginia-contractors-license) Class A contractors perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is $120,000 or more, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any twelve-month period is $750,000 or more. Class B contractors perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is $10,000 or more, but less than $120,000, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any twelve-month period is $150,000 or more, but less than $750,000. Class C contractors perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is over $1,000 but no more than $10,000, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any twelve-month period is no more than $150,000.

I was reviewing some stats from the industry and it's quite disheartening to say the least - but also enlightening. The chart below says A LOT! And that is that 40% of productive agents sell 1-2 units per year. The concept of the article is that casual/part-time agents aren't going anywhere. Sharing this with another broker friend of mine, his response: "Of course! It's the perfect side-hustle." And so it is - if you hit an average commission rate with an average priced home in the DMV are - you're instantly into $40,000 gross commission income! Why go work at Starbuck's or Walmart? This pays a ton more if you just get 2 deals done per year. Even on the national numbers - you can make about $30,000 with just two deals per year. HOWEVER - the small print of the chart speaks even more disheartening news (and the reason I've launched this channel!) The study is pulled from CoreLogic and accounts for 840,000 agents - the productive ones. WELLLLLL - there are 1.49 MILLION agents who call themselves Realtors. Thus - the REAL data should be: 56% of Realtors actually sell something 44% of Realtors sell NOTHING 22.4% of all Realtors sell 1-2 deals per year. 12.9% sell 3-5 transactions 20.8% sell 6 units or more What do you think??