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By Gary Kelley
I pay the Community Advocate to run my drivel. As I sit down each month to write these articles, I think of the people who come up to me and say things like, “I can’t keep Brenda and Eddie out of my mind,” and “I’m tired of COVID, too.”
The news lately is a little discouraging (I am writing this Aug. 1). COVID-19 cases are going back up slightly. Schools are debating reopening safely. I generally try being upbeat and our environment is pulling me down…so I decided to write about the summer of firsts!
This year marks the first time since 1975 I was grounded. I’d say it’s been a good run! Being grounded was not all bad…I spent time prettying my garage (including decluttering and painting the walls and floor). A friend helped me add a kitchen backsplash (read: I picked out the tile and brought it home and he did the rest). Even Realtors need to do updates!
I did get away and spend three nights in Maine around the 4th of July. Yes, I went to my doctor and got a COVID test. The hotel did not service the room while we were there lest they drip COVID from room to room. The front desk wasn’t sure how to respond to my call for “either a shower curtain or a bunch of towels” so they brought both (I think we were the first in the room this year). It was post-apocalyptic Ogunquit, with many places open limited hours and limited days. I did note the ocean was oblivious to social distancing. It was fine; it was different.
Our local real estate inventory hit a level 50 percent less than last year. I track this regularly, and while arguably good for sellers, it is a bigger challenge for buyers. This is where you hear, “there is no inventory.” Inventory is snapped up faster than the dots in that Pac-Man arcade game from the 1980s.
Interest rates hit the lowest I have seen in ages…like in the 2s for a 15-year mortgage. That is almost scary low when you consider what investors are making on their bond purchases. If you have not refinanced you really should look into it….you can save some real money.
Many closings are being delayed. Refinances are burdening lenders, who in many cases are working from home and are somewhat inefficient. Many towns are still operating at COVID speed….making approvals on things like septic plans downright painful. While a delay of a day or two isn’t the end of the world, delays of weeks or months really gum up the works. (A condo 6D certificate is good for a month…and then a new one has to be ordered. What if the buyer’s rate lock expires, who pays for the extension? (unless of course the rate dropped).
Through all this, I am reminded people buy from people. I am not a fan of the nameless faceless call center approach to business. Economies of scale for real estate showings or mortgage origination ultimately end up being performed at the lowest transaction cost – without any consideration for the relationship. I’m a fan of the model of good/fast/cheap and how in life you can have two and not three. So if that fast/cheap mortgage call center is your thing, remember it won’t be good. Good and fast may not be as cheap, unless you include something for the value of your time.
In the summer of firsts, the key is striking the right balance for all the options. Stay sanitized!
I’m not a huge fan of Zillow, etc. for buyers. Here is an app for your phone/tablet tied directly to the MLS: www.homesnap.com/Gary-Kelley.
Gary is heard on WCRN AM 830 discussing “All Things Real Estate.”
If you need advice on selling your home or buying a new one, give us a call 508-733-6005.
Gary Kelley, Realtor®
508-733-6005
