Looped In

Right now, there is a fight that could change how commissions work that is winding its way through the court system. In it, the defendant, who thinks that real estate commissions are too high, is pointing to the United Kingdom as an example of how things could work. So we spoke to real estate agents in different countries to see how real estate commissions – and the home selling process -- work in their corner of the world.

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When asked about the future of real estate -- are we in a home price bubble? will offices fully recover -- real estate economist Jim Gaines is quick to caution that "there isn't an economist in the world that really knows what the heck he's talking about." We’ve never gone through anything like this before, so modeling it is a difficult endeavor. But here is his take on what a recovery may look like for real estate and what normal might look like in the future.

READ: Where Texas A&M real estate economist Jim Gaines sees ups - and downs - in the year ahead

Connect with Rebecca Schuetz.

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Many neighborhoods throughout Houston, Texas and the United States have shocking language in documents restricting how the land can be used. “None of the lots… shall be used, owned or occupied by any person other than of the Caucasian Race," reads one example, the deed restrictions of Oak Forest.

Making it easier to remove racist language from deed restrictions has been one of Lt. Gov. Dan Patrick’s legislative priorities. It passed unanimously in the state Senate in a rare display of bipartisan support. But the bill has yet to be voted on in the House, and time is running out.

Residents of Oak Forest, a Houston neighborhood working through the labor-intensive process of removing the language, are watching nervously — whether the bill passes will determine how they’ll spend their next two years before the next legislative session has a chance to examine the issue again.

Connect with Rebecca Schuetz.

READ: 'It's so damn offensive': More Houston neighborhoods push to remove racist deed language

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Rebecca visits her dad and share news on her refinance. But a lot has changed since she was shopping for a new mortgage. She chats with Frank Nothaft, chief economist for the real estate analytics company CoreLogic, about what is causing rates to go back up and what he thinks the impact will be on affordability, home prices and home sales, then touches base with loan officer Jennifer Hernandez about how things are looking on the ground for mortgage originators.

Connect with Rebecca Schuetz. Read the story: Mortgage rates are on the rise. What does that mean for the housing market?

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In the aftermath of Houston's litany of hurricanes, floods and storms, renters are realizing that renter protections in Texas are anemic at best. If the apartment's condition has deteriorated to the point where it impacts physical health or safety and the landlord does not make timely repairs — usually defined as seven days — renters are supposed to be able to move out. But if tenants and landlords disagree on whether a home is livable or whether reasonable repair efforts are being made, tenants find themselves with few practical options.

Connect with Rebecca Schuetz.

READ: 'It is a disaster': Renters demand repairs after weeks without water

'Stuck in this netherworld': Deadly freeze exposes Texas' renter protections as anemic at best

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The commission a buyer's agent earns is in the spotlight because of how they're set up. While the buyer's agent has a fiduciary responsibility to the homebuyer, their commissions is largely set by the homeseller before the property is listed on an agent-to-agent database known as the multiple listing service. Even though this is the setup, buyers' agents are required to work in the homebuyers' best interest, which means they should not steer buyers to one house or another just because of how much they'll be paid. However, phone calls recorded by the brokerage Rex seem to show real estate agents doing just that. Rex credits the calls with a Department of Justice suit against the National Association of Realtors. Jack Ryan, Rex's chief executive, talks about what life is like for a brokerage that decides to circumvent the traditional commission structure by staying off the multiple listing service and what he believes will change as a result of the suit.

Connect with Rebecca Schuetz.

READ: Houston real estate agents caught on tape steering buyers away from homes with less commission

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Even as Rebecca interviewed people who had shaved hundreds off their monthly mortgage payments — giving them increased financial security in the midst of a recession — and spoke to coworkers and friends about how the historically low rates had benefited them, she put off doing one of her own. After low mortgage rates won a 2020 Loopie Award for Brightest Glimmer of Hope (Besides the Vaccine), her podcast editor suggested to stop dilly dallying and to document her journey so listeners might learn from her experience. So she did.

Connect with Rebecca Schuetz.

 

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Every year, Looped In celebrates by recognizing the best and worst of Houston real estate.In 2020, there was a lot to choose from.The pandemic and the need to socially distance has shaped the way we interact, which has shaped the spaces we interact in. Home sales and renovations boomed, while offices were thrown into uncertainty and hotels and small retailers floundered. Some have closed for good.As Looped In looked back on last year, we asked your thoughts on what stood out. And the people have spoken:Most Controversial Controversy

34 percent: The National Association of Realtor's new social media policy

32 percent: How the attempted Daugherty-Elliman merger panned out

26 percent: Al Hartman's handling of masks in the workplace

8 percent: The proposal to turn Sharpstown into a homeowners' association

Buzziest Buzzword

56 percent: Unprecedented

22 percent: WFH

16 percent: Uncertainty

6 percent: De-densification

Trendiest Development Trend

48 percent: Home office

27 percent: Plexiglass partitions

16 percent: Touchless (fill in the blank)

9 percent: Swimming pools

Saddest Demise

62 percent: Luby's

15 percent: Bernie's Burger Bus

15 percent: Barry's Pizza

4 percent: Morningstar

Write ins: Benjy's, Sweet Tomatoes, Wendy's

Biggest Work-from-Home Perk

43 percent: Less time commuting

28 percent: More time with pets

16 percent: More time with family

13 percent: Kitchen access for lunch and snacks

Brightest Glimmer of Hope (Besides the Vaccine)

49 percent: Low mortgage rates

28 percent: Escapes to nature

11 percent: Empty commercial space repurposed into housing

9 percent: Road trips

Write ins: Vacation homes, freedom

Connect with Rebecca Schuetz and Nancy Sarnoff. 

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Houston real estate agents have been recorded saying they will not show certain homes to their clients — even though the houses meet all the buyers’ desires. This is one of the conversations. Read the story: https://www.houstonchronicle.com/business/article/houston-real-estate-agents-less-commission-records-15857087.php 

REX: And you don’t think they’d compensate you after everything you’ve done for them? I mean, if you’re working so much for them.Agent: Not as far as what my compensation should be, no. I wouldn’t even feel comfortable asking them for that. And I know it’s not you. Unless you’re the owner of this company. The real estate game is changing. And I’m not -- I mean, it’s putting away my profession. And I’m not in favor of it. So I can’t help you to sell something that’s wiping out my profession.

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Houston real estate agents have been recorded saying they will not show certain homes to their clients — even though the houses meet all the buyers’ desires. This is one of the conversations. Read the story: https://www.houstonchronicle.com/business/article/houston-real-estate-agents-less-commission-records-15857087.php

REX: How our properties work is we list our properties at 2 percent. And we don’t use the MLS so how that works is our sellers are not obligated to pay a buy-side commission. However, we do want you guys to get paid, so how you do that is place your commission on top of the offer price, and you’d get that from your buyer, so it’d be a discussion between you and the buyer on compensation.Agent: Okay, well, I’m not doing that. Thank you.

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