It goes without saying that 2021 was full of real issues for the real estate industry — from the continuing pandemic to the subsequent inventory shortages. But it was also full of real solutions. Check out Chicago Agent’s most-read Real Issues features to learn from our expert sources and, overall, to consider the year in retrospect.
No. 5: When Fannie met Freddie
If Realtors, lenders and homebuyers are the stars of the real estate show, Fannie and Freddie are the unseen producers who bankroll the production from backstage.
For better or worse, it’s not very difficult to get into real estate … But that ease of entry also guarantees a steady inflow of newcomers who, without additional training and mentorship, may be ill-equipped to succeed — at the expense of their clients.
Just as you can’t be in two places at once, some would argue that you can’t truly represent two sides of a real estate transaction at the same time. But dual agency — where a single agent represents both sides of a real estate deal — happens all the time.
In a way, the nation’s homebuilders were in an enviable position in 2021: There was not enough of their product out there to meet the ravenous demand of customers — not by a long shot. Of course, it’s not that simple.
Homebuyers lucky enough to win a bidding war for a property are increasingly running headlong into appraisals that don’t match — or even come close to — the agreed sales price, leaving them with limited ways to close the sale. This can leave parties to the deal — the buyer, the seller and their real estate agents and lenders— frustrated, to put it mildly.