The Real Deal Newsletter for December

Wishing you the Happiest of Holidays!
I’m truly grateful for the privilege of connecting with each of you. I want to extend my heartfelt wishes to you and your families for a holiday season brimming with love, laughter, boundless joy, and the spirit of kindness this Holiday season!

In this month’s Newsletter we’ll look at the following:

• Gift Giving Thoughts

• Real Estate Commissions are Negotiable (and Always have been)

• Should You Consider Selling Your Home Now, or Wait?

• Local Snohomish County Real Estate Trends

• The Broader Economy - Economic & Real Estate News

• Financial Investing Tips & Tricks

• December Home Maintenance and Safety Tips

• AI - Artificial Intelligence

• Other fun nuggets

If you don’t currently receive my monthly mailed newsletter, “Front Porch News” and would like to, please email me at [email protected] and I’ll get you added!
Joe Frank - Real Estate Broker | REALTOR® | eXp Realty
(425) 501-6901 (text or call)

Unwrapping Drama: Remember, It’s the Thought That Counts! 😊 

What do a jigsaw puzzle, pearl earrings, a gaudy gold picture frame, and an electric teapot have in common? They're gifts that people said were among the best, or worst, they'd ever received.

You'd likely never guess which gifts were best and worst: The pearl earrings bombed because the giver hadn't noticed that his girlfriend didn't have pierced ears. The gold picture frame was a hit because the husband noticed his wife admiring it in an antique store on their vacation.

Gift-giving is a ritual filled with love and angst. We want to “get it right,” but we don’t always know what they want and can’t always afford it when we do know.

Ideally, you’ve spent all year noticing what your loved ones and friends like. But if you haven’t been doing that, and you're still wondering what to get, then perhaps you can reflect on some of their favorite places and activities.

If she loves dancing, maybe buy a t-shirt from her favorite dance club, and combine it with a gift certificate. If he loves playing the guitar, maybe a new leather guitar strap stamped with his name.

With kids, it can be harder to please them if they want something you can't afford. In that case, you may have to manage their expectations ahead of time, giving them a budget to work within. Then they’re sure to find something they’ll love, and you can afford.

I hope you found these thoughts helpful. I wish you all a joyful gift-giving season that hits the mark every time! 

“Xmas” - a Legitimate & Respectable Abbreviation

Have you ever seen the abbreviation 'Xmas' for Christmas?

Here's where that comes from: Rather than being a crude abbreviation, the word Xmas has a very respectable history. The abbreviation was first used in the mid-1500s. X is the Greek letter “chi,” the initial letter in the word Χριστός., which translates as “Christ.” X as a representation of the word “Christ” is known as a Christogram. In the same spirit of Xmas, the terms Xpian and Xtian have been used in place of the word “Christian.”

Real Estate Agent Commissions Are Negotiable (and always have been)

Real Estate Brokerages are under pressure for the practice of splitting commissions with buyer's agents. The issue lies in the lack of transparency regarding the negotiability of such splits, not the legalities of splits, which are offered as a way of getting qualified buyers to make offers. 

Going forward, sellers will likely need to decide how much additional commission to allocate (if any) to compensate a buyer's agent via the MLS listing. This is usually spelled out in the seller’s listing agreement, and you can expect more attention to be paid to that section during your next listing appointment. In some markets, buyers may need to directly cover part or all their buyer’s agent commission. This could be a challenge for buyers, especially first-time home buyers with a more limited budget.

If you have questions about how this might affect your next transaction, don’t hesitate to contact me @ 425-501-6901.

Should You Sell Now?

Selling now might not be a bad idea, as long as you can find a replacement property. However, if possible, I would recommend waiting until January or February when buyer activity increases.

Your home's value likely saw a slight decrease in value over the last few months, but the good news — we normally see values rise as we transition into a new year. Additionally, it was just released that the Fed doesn’t plan to raise interest rates any further in 2023 and will likely start cutting them in 2024.

The Fed rate cuts should drive mortgage interest rates down - by how much - nobody knows and it will depend on the size of the Fed’s rate cuts, along with other factors such as the overall health of the economy, elections, wars, etc.

A concern of many would-be home buyers is that with likely lower rates, home prices may trend higher again, and effectively offset any benefit of lower rates. This is a definite possibility, but again, nobody can accurately predict what we’ll see in the new year, or beyond… we’ll need to watch closely how it plays out.

If you're interested in learning more about our local housing market, getting an accurate value for your home, or any other real estate help, please contact me any time: [email protected] or 425-501-6901 (text or call)

Local Snohomish County Real Estate Trends

Snohomish County home prices have been in a rut since June of this year, but could rebound or remain stable in 2024. It all depends on changes to interest rates, supply, and demand. Additionally, new construction could continue to play a role too. It’s like a complex puzzle, or a dramatic season finale of The Bachelor! 🍿
Check out my recent article that examines November 2023’s Snohomish County housing market, along with insights and trends: https://www.joefrankrealtor.com/post/snohomish-county-real-estate-trends-and-insights-for-november-2023

Economic & Real Estate News

• National Housing Market Update: 

  • According to Yahoo Finance, as the Federal Reserve continues its fight against inflation, the outlook on where mortgage rates will end up in the new year is looking far less grim. Economists predict rates could land anywhere from 5.7% to 6.8% depending on how quickly inflation cools and whether the Federal Reserve manages to put an end to one of its most intense rate hike campaigns in decades. Full article

  • Mortgage Rates Drop, and Purchase Applications rise again (indicating increasing home buyer demand and potentially home prices). Full article

  • According to Redfin, Mortgage Rates and Housing Payments Drop to Lowest Level Since Spring. Depending on the region, this is bringing buyers off the sidelines, and pushing prices up. Full article.

Financial Investing Tips & Tricks

Considering a Financial Planner or Financial Advisor to be sure you’re on the right path and taking the necessary steps NOW to ensure you’re prepared to buy that first home, retire at that perfect age, or travel the world? 

The first step for many is determining the difference between a Financial Advisor and Financial Planner and which is best suited for you / your situation. Following is a definition of both, along with understanding the term fiduciary.

• A Financial Advisor is someone who helps you manage your money, such as investing, saving, budgeting, or planning for retirement. A financial advisor may have different qualifications and licenses, such as Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or Registered Investment Advisor (RIA). A financial advisor may also sell you products or services that they recommend for your needs.

  A Financial Planner is a type of financial advisor who takes a more holistic approach to your financial life. A financial planner will help you create a strategy to meet your long-term and short-term goals, such as paying off debt, saving for the future, or purchasing insurance. A financial planner may also have different certifications and licenses than a financial advisor.

• When choosing your financial professional to assist with financial planning and investments, consider using a fiduciary - someone who has a legal or ethical duty to act in the best interest of another person or group of people (a real estate agent is a fiduciary). A fiduciary must put their clients’ interests ahead of their own and avoid any conflicts of interest. It’s not always clear if a financial advisor or planner is a fiduciary, so it’s best to simply ask them. If they have a ‘CFP’ (Certified Financial Planner) designation, then they must be a fiduciary. This article from NerdWallet.com gives additional insight into fiduciaries and why it matters.

• For your convenience, here’s a list of Certified Financial Planners in the Snohomish County area (you can also broaden or narrow the search results)

Home Maintenance & Safety Tips

• December Home Maintenance & Safety Tips. Checklists

  • Check storm drains to ensure free of leaf debris to prevent heavy rains from backing up and potentially flooding your street and/or yard.

  • Be sure you’re prepared for winter / snowy weather around the house.

    • Snow Shovel and/or Snow Blower (you can buy electric now!)

    • Ice Melt 

    • Firewood for your fireplace or outdoor fire pit

  • Be prepared for winter travel - especially over the passes. Checklist

    • Good All-Season or Winter Tires

    • Tire Chains or Cables

    • Snow Scraper

    • Jumper Cables

    • Road Flares

    • Winter Clothes (warm jacket, hat, gloves, boots)

    • Extra Blankets

    • Food

    • Water

    • Phone and Extra Battery / Charger

AI - Artificial Intelligence

• Google’s latest AI release - Gemini - performs better than ChatGPT 4 (according to Google).

• Be aware of AI deep fakes, and the ramifications such can have. From the Israel - Hamas conflict, to the upcoming presidential election, the threat is real, and the technology/capability is only getting better. More from APnews.com

Other Nuggets

• 50 best Christmas movies (opinions may vary)

• A Google Map of Christmas Activities throughout Snohomish County (and beyond). Includes lighting displays, holiday events, and Christmas markets.

• 💕 For all you skier and snowboarders, all Washington State Ski Resorts are now officially open! 😍 However many are on limited operations due to low snow coverage. Check out OntheSnow.com for the latest on each.

• Mushrooms to build homes? Researchers at the UK’s Newcastle University are using fungal networks (called mycelium) to build lighter weight building products, reducing our reliance on concrete, and lessening negative environmental impact. Mycelia are small strings that are part of fungus, and mushrooms are a by-product of mycelium growth. Researchers have created an ingenious paste from mycelium that's super-strong, and can be used to solidify wool, sawdust, and cellulose into building materials. 

Inspirational Quote (from my favorite Christmas movie):  “The best way to spread Christmas cheer is singing loud for all to hear." – Buddy the Elf

If you (or anyone you know 😊) are looking for real estate guidance, help, or insights within Snohomish County or beyond, please feel free to reach out: [email protected] or call / text, 425-501-6901

Have we worked together in the past? If so, and you’d like to share your experience with others, please consider leaving me a review on Google. I donate $50 to the Make-A-Wish foundation for each review (positive or negative) - many thanks! 🙏

DISCLAIMER: This content is for educational and entertainment purposes only.

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www.JoeFrankRealtor.com | [email protected] | 425.501.6901
Joe Frank, Real Estate Broker | REALTOR® | eXp Realty Real Estate & Other Fun Nuggets of News & Information!