The Housing Scene

Would-be sellers who have taken their houses off the market should be ready for an all-out blitz this spring from agents looking to relist their places.

There are all kinds of reasons to stop trying to sell your house: Perhaps there was very little interest, you couldn’t get the price you wanted or you were dissatisfied with your agent.

Whatever the reason, tens of thousands of listings expire each year, and agents view them as easy pickings. Denise Lones, an agent and industry coach, wrote in a blog post that working with expired listings is like “picking nice juicy ripe grapes off a vine.”

For one thing, these listings are easy to find. All agents have to do is comb their local multiple listing services for properties that haven’t been re-upped.

It's a convenient way to drum up business when needed, wrote Lones: “It is an easy faucet to turn on and off. When you need business, turn it on. When you have too much, turn it off.”

Sometimes, of course, sellers have had enough and don’t want to put their houses back on the market. But that won’t stop some agents from trying. Whether it be snail mail, email, the phone or in person, they'll try to connect to show these sellers why the next time around will be different.

If you’ve been inundated with emails, texts and phone solicitations after applying for a mortgage, here’s why: Your lender’s competitors regularly purchase customer information from the credit agencies lenders use.

The practice is known as “trigger leads” because your application triggers a barrage of rival offers. It is frowned upon by many in the mortgage community, and legislation to put an end to it was working its way through Congress last fall. Law or not, supporters have vowed to keep fighting.

“This must stop,” wrote Bob Broeksmit, president and CEO of the Mortgage Bankers Association, in a statement on the organization's website. Not only can the practice cause emotional strain on consumers, but it is also sometimes fraudulent. Worse, perhaps, it serves to undermine the trust that borrowers place in their loan officers and brokers.

“The mortgage industry depends on referrals and repeat business, which we have always enjoyed,” says a Mississippi lender in the MBA statement. “This is nearly a bygone notion thanks to trigger leads.”

Added an Oregon colleague: “I pride myself in taking great care of my customers. Trigger leads are affecting my borrowers and therefore my reputation.”

Despite new buildings popping up all over the country, finding a new apartment was a daunting task for many last year.

According to RentCafe, nearly two-thirds of renters renewed their leases in 2024, creating a nationwide squeeze. For every open apartment, nine eager renters were waiting in line to snap it up. When a unit became available, it was typically filled within 40 days.

There are few certainties about the tariffs the Trump White House has attempted to implement, but during his campaign, the president pledged to place tariffs ranging from 10% to 20% on imported goods, with a 60% tariff on imports from China. Such fees would have a massive impact on the homebuilding industry.

According to the National Association of Home Builders, in 2023, around $184 billion of goods were used to construct both new single- and multi-family houses. Of that, $13 billion worth -- about 7% -- was imported.

Commodities from China accounted for 27% of the imported total, while products from Mexico and Canada, two other countries targeted by the new president, accounted for 11% and 8%, respectively.

Though Trump disagrees, most economists maintain that a tariff is basically a tax on an imported good, meaning the company or person who imports an item pays an additional tax for doing so. An example from an NAHB press release: "Say a business in the United States needed to purchase a $100 worth of screws from China. With a 60% tariff, the business would then need to pay an additional $60 to the U.S. government to receive the screws. The exporter in China would still receive the $100 from the business and not pay the added tariff costs.

"The tariff cost falls on the importer, who would absorb the higher costs through lower profit margins or raising their own prices for consumers," explains NAHB.

By NAHB’s estimates, a 10% overall tariff with a 60% tariff on goods from China "would result in a $3.2 billion increase in the cost of imported building materials used in residential construction."

Breaking it down further, household appliances would get the largest cost hike, since 54% of those imported come from China. Some 70% of sawmill and wood product imports, which are already subject to tariffs, come from Canada, and 71% of lime and gypsum products come from Mexico.

Beware of “phantom inventory,” which makes it look as though the market is ripe with houses for sale. In fact, many properties are sitting stagnant because they are overpriced, making the market appear far healthier than it really is, says Glenn Phillips of Lake Homes Realty, a multi-state brokerage.

Odeta Kushi, deputy chief economist of First American Financial Corporation, agrees that more inventory doesn’t necessarily mean an increase in market activity.

“In some cases, higher active inventory levels may be the result of properties lingering unsold due to factors like overpricing, poor condition or decreased buyer demand," wrote Kushi in a blog post. "Indeed, rising active inventory may mean demand has cooled, and homes are taking longer to sell.”

Collectively, real estate agents don’t always have the greatest reputation. In Gallup Polls from recent years, agents' favorability ratings have been just above those of lawyers.

To be sure, some buyers and sellers do have bad experiences with their agents. Anything can go wrong in a real estate transaction: Maybe the seller didn't get their desired asking price, the sale took too long or some paperwork got messed up.

There's often some kind of hitch, but still, most agents are straight arrows who play by the book.

There are some, however, who don't always follow the National Association of Realtors’ Code of Ethics: an extensive document under which the business operates. If agents violate the code, they are subject to sanctions. If they do so often, they could be drummed out of the corps.

For instance: If you have signed a listing agreement or a buyer-broker contract with one agent, other agents should not be calling you and trying to snatch you away. It’s called poaching, and it's against the rules. Agents bad-mouthing their competitors is another code violation.

Some violations are also outright illegal. For instance, if an agent discriminates, that's likely a violation of the Fair Housing Act -- the law that protects buyers and renters from discrimination based on race, sex, religion, disability, national origin and other factors.

That’s pretty cut-and-dried: An agent can’t refuse to work with potential clients because of these factors. Further, agents can’t answer questions about the racial makeup of a neighborhood; if the would-be buyer is interested in that, they’ll have to research it on their own.

If your agent violates these rules, you should report it to the local Realtors group and maybe even to the Department of Housing and Urban Development.

Beyond discrimination, the code covers issues of fairness and strategy. For example, agents are not supposed to disclose information about their clients that may hinder them -- or help the other side. That’s why working with a so-called dual agent, who works for both the buyer and seller, is a dangerous proposition. Dual agents walk a fine line, and in the end, neither side gets the representation they deserve.

An example of what not to do: Sellers' agents shouldn’t reveal to buyers just how low their client will go price-wise. Nor should they disclose the reason for selling, or that the seller is in a hurry.

Another no-no: Agents cannot put their own interests -- or their commissions -- above the interests of their clients. They cannot misrepresent themselves or the properties they list. If a rookie agent falsely claims to have years of experience, or if they list a house as 3,000 square feet when it is only 2,500, those are violations.

Sometimes, a mistake is inadvertent, with the agent just repeating what they were told. But some agents fudge things intentionally and just hope they don't get caught. Such misrepresentations are a major cause of consumer complaints and legal disputes and, therefore, a key focus of regulatory efforts at the state level.

Another area where agents step over the line: giving legal advice. They’re not supposed to. The closest they should come is filling in the blanks of a listing agreement or sales contract. They often write addendums or add clauses, but that really should be left to the lawyers. If you have legal questions, obtain advice from an actual attorney.

Most real estate agents aren’t qualified to answer tax questions, either. Buyers and sellers should seek the advice of an accountant or tax professional if they have questions about the tax implications of their transaction.

Who wouldn’t want to live in a community with an elaborate rec center -- say, one with a fully equipped gym, an Olympic-sized pool and a few tennis or pickleball courts? Possibly even a fancy clubhouse where meals are served, right next to an 18-hole golf course?

The problem is, you and all the other residents have to pay for those amenities, as well as their upkeep -- whether you use them or not. And sometimes those charges can be hefty.

They’re called homeowners association (HOA) dues -- or, in apartment buildings where people own their units, condominium association dues. These fees don't just pay for amenities, but also take care of the community's streets, landscaping and other common elements.

According to the latest Census Bureau figures, nearly two-thirds of all single-family houses started in 2023 were within HOA-governed properties. Now, a new study by Realtor.com has found that more existing houses than ever are in HOA-run communities, and that the fees collected to operate those properties are rising.

Consequently, buyers of all stripes now have another cost to factor into their affordability considerations. It's not just PITI -- principal, interest, taxes and insurance -- but HOA expenses, too. The fees are often overlooked by buyers, even though they are mandatory.

Realtor.com found that 41% of the places listed for sale last year were in association-run communities. The median monthly HOA fee for existing homes was $148 -- up 15% from 2023.

“With a down payment and closing costs up front, and then principal, interest, taxes and insurance every month after that, purchasing a home is already a financially daunting task before adding in the rising cost of HOA dues,” said Realtor.com Chief Economist Danielle Hale.

Buyers are most likely to be faced with HOA fees in areas with a high concentration of new construction or condos, especially in desirable beach or ski markets. In Edwards, Colorado, for example, 90% of the homes listed in 2024 called for HOA fees. In Myrtle Beach, South Carolina, it was 85%.

In Myrtle Beach, the median monthly fee was $138. But in Edwards, it was $525. As you might imagine, buyers sometimes balk at properties that come with dues they consider exorbitant.

“It happens with some frequency,” said Nikki Beauchamp, an associate broker at Sotheby’s International Realty in New York City. “I also have buyers who will only look at HOAs that are below a certain threshold.”

Broker Ryan Whitcher of Harmony Home Buyers in Charlotte, North Carolina, reports that some sellers underestimate how HOA fees affect the marketability of their houses -- particularly when targeting younger buyers.

“Millennials and Gen Z clients often prioritize financial flexibility,” he said, “and recurring fees can feel like a burden, even if they enhance the community.”

Expensive or not, the Condominium Association Institute says its surveys consistently find that residents are overwhelmingly satisfied with their associations. Some 82% believe their associations’ elected boards are serving their best interests, and 72% agree their community manager provides valuable support.

If you're considering buying a place with an HOA, first make sure you can afford the fees, then ask yourself if the charges are worth it. If you plan to use all the facilities the community offers, great. But if you just want a gym, a membership at a club outside the property may be a better bet.

Parker McInnis of Speedy Sale Home Buyers in Troy, Michigan, advises buyers to “always closely examine association costs before making a purchase to make sure they match the value offered.”

It's not just about the money, though: You are going to have to live by the rules and bylaws of the association. If you want to put up a flagpole, for example, or put in native shrubs or park your work truck in your driveway, you may violate the regulations.

“HOAs should be taken seriously,” warns Omer Reiner of Florida Cash Home Buyers in Fort Lauderdale. “Failure to adhere to the rules established by a neighborhood group can cost you. You likely would face a fine by ignoring a violation letter, and you could even get a lien placed on your home.”

The bottom line, says economist Hale, is that would-be buyers should “look closely at what benefits the HOA actually provides ... and decide whether those are really worthwhile. If not, it may be wiser to save that monthly expense and target a home without HOA obligations: most likely an older single-family home in a less flashy neighborhood.”