Over the last 40 years in real estate, these are some of the biggest changes.
Today we want to talk about how the real estate game has changed over the last 40 years. We’ve been helping people buy and sell homes for a long time, so we wanted to share some of our experiences with you.
One of the biggest things that have changed is that everything used to be analog as opposed to digital. We used typewriters and paper to keep track of everything; we even used to mail our listings into the MLS! When a client wanted to list a home, they would have to wait at least two weeks for the mail to arrive.
One of the things we included in our mail package was a single, black-and-white picture of the home. Pictures were more expensive, so we had to make sure we got things right the first time.
Buying has changed a lot too. There were no buyer-specific brokers, so if you wanted to buy a home, you would come into my office and have a conversation. From there, we would wait for a huge book filled with all the MLS listings to arrive. It usually came on Friday, so if you walked in on a Monday morning, you were going to have to wait a long time.
The standard commission also used to be 7%. The listing agent would get 4%, and the buyer agent would get 3%. Nowadays, people think 6% is a lot, but this just goes to show how much things have changed.
Right now, we have historically low interest rates. However, back around 1979, things climbed as high as 17%! Inflation was pretty crazy back then, and it took a long time for rates to fall back down. When interest rates finally got back into the single digits, people were lined up outside the bank and waiting to take advantage.
We have a lot of experience in this market, and it seems like many people today are worried that high inflation will lead to crazy interest rates like we saw back in 1979. In our opinion, the situation is pretty different. Rates may go up in 2022, but they certainly won’t go up like they did back then.
It’s still a great time to buy a home. If you want to take advantage of our 40+ years of experience, please call or email us. We are always willing to help!