| |
| |
|
Real Estate Information |
|
|
Realty Agents: Don't Ask Don't Tell?
Real estate stories radiate from the water cooler and cocktail parties like a brush fire out of control. Like early stages of fires, real estate transactions start out manageable, but occasionally real estate consumers fan the flames because of inexperience, and some real estate agents misplace the water buckets. How can consumers be more proactive before the fire starts? By asking qualifying questions of realty agents to determine if they carry a fire extinguisher in their briefcase. Under license law whom do you have a fiduciary responsibility to? Ask this question the first time you speak with a real estate agent. In some areas all agents have a fiduciary responsibility to the seller under license law, even if they are working with a buyer. In other areas unless you have a signed buyer representation agreement your agent under law must represent the seller. To add to the confusion, some states require agents to have a fiduciary responsibility to whom they bring to the transaction, be it the buyer or the seller. How are you compensated? The majority of agents are independent commissioned-based contractors of the brokerage with whom they're affiliated. Real estate commissions vary from one to ten percent and can't be fixed under anti-trust laws. The broker through a listing agreement with a property seller is paid a commission, who compensates the buyer's broker cooperatively. Require your agent to show you properties that offer lower than customary cooperative commissions. If you retain an agent under a buyers broker agreement, you will compensate your agent's broker. Brokers split their commissions with their agents usually keeping 5-50 percent for the brokerage and compensating the agent with the remainder on a sliding scale based on previous sales volume. This is known as the "commission split". Agents can only be compensated by their broker and can't receive compensation directly from attorney's, home inspectors or any other non-broker under the Real Estate Settlement Act. Do you show all available properties in the market I'm interested in? Require your agent to show you all available properties listed by all companies. The problem with being shown only the agent's or their companies listings is two fold. If you decide to purchase the agent's listing, in most cases they will become under real estate license law a "dual agent". State laws restrict what a dual agent can and can't do for both sides in a transaction. Dual agency benefits the agent by doubling their commission, and offers no benefits to either the seller or buyer. When you purchase a property that is listed with an agent in your agent's office it is known as an "in-house sale". If you can be confident that the two in-house agents are acting in their respective clients best interest and the agents are not being awarded a bonus for selling an in-house listing, than you could proceed. Require your agent to disclose to you any property that they show you that they have an ownership interest in. Your agent should always show you For-Sale-By-Owner properties, isn't it about your housing needs being met? Are you a Realtor®? Not all real estate agents are Realtors®. Industry sources report that there are 2.6 million real estate agents nationally. Only 1.1 million are Realtors® or members of the National Association of Realtors®, who are required to have ethics training which defines their obligations to clients, customers, the public and other Realtors®. Working with a Realtor® adds another option for dispute resolution should you need it. Have you been disciplined by your licensing authority? All real estate agents are licensed in states where they sell property. Ask to see their current real estate license. Find out the name of the department in your state government who regulates real estate agents, go on-line to the website to look up information about your agent's license status, including disciplinary actions. Most brokerages require real estate agents to have errors and omission insurance, ask your agent if they are covered under this type of policy. How long have you worked full-time in real estate? Your home sale or purchase is one of the largest assets you own. Would you use a new or part-time accountant to fight the IRS? It takes an experienced full-time agent to be up-to-date on market inventory, documentation and property histories. Using a rookie or part-time agent is the best way to fan any real estate transaction fire. Will I be working exclusively with you during my property sale or search? You want one person to assist you on all aspects of the sale or a purchase of a home. You should not get passed around from one half of a real estate team to another, to a personal assistant or a back-up agent when your agent is unavailable. You are focused on your home search or sale and so should your real estate agent. Your agent should accompany you to all property showings, how else can they see your reactions to have knowledge of the property? If the personal assistant is assigned to do your final walk-through and didn't attend the home inspection, they might not be prepared to assess the contractual repairs or changes in the property condition. Always ask a potential agent if they are planning to go out of town during your purchase or sell timeline. Will you answer all my questions truthfully? The real estate market is not always hot, great or fabulous. And yes, sometimes there are better times than now to purchase a home. Real estate is like any other market that is based on supply and demand. Verify all information on a property-listing sheet. Look for disclaimers on the bottom of property feature sheets that state all information is not guaranteed. Measure room dimensions; verify square footage, taxes and assessments. Agents in most states are allowed to promote or exaggerate but not intentionally mislead or lie. Whether buying or selling ask your agent what the absorption rate is for your home parameters. This will give you an honest market indicator of what's happening in like-kind properties. How to figure absorption rate: Example: Like kind by style, price, single-family, $200,000-$300,000, number of homes currently for sale: 100, sold last 12 months: 50, 25 sold in last 6 months: 25 sold in last 3 months: 25 months of inventory available. Looking to buy or sell real estate soon? Join the 85%* of real estate consumers nationally who will use a real estate agent in their next transaction. The Internet has been a welcome resource to consumers in a business sector that has been dramatically impacted by the Internet similar to the travel industry. The Internet has removed agents from the front line of real estate consumer's paths and the National Association of REALTORS® has the numbers to prove it. No longer the keepers of the home information, 74%* of all homebuyers start their search on the Internet before contacting a real estate agent. The age of the consumer has belatedly arrived in residential real estate. Most agents work hard to qualify their clients, but the new reality is you should qualify your next real estate agent. *2004 National Association of Realtors® Profile of Home Buyers and Sellers Mark Nash residential real estate author, broker and commentator in Chicago has been recognized by CBS The Early Show, Bloomberg TV, Marshall Loeb's Dow Jones CBS Market Watch and numerous national and regional journalists as the expert to turn to for real estate consumer advice.
MORE RESOURCES: This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Google News |
|
|
|
RELATED ARTICLES
Finding The Perfect Maui Home For Sale If you are thinking of relocating to Maui, this articlewill hopefully guide you to making a positive decision whenthinking of buying a home there. Hopefully, by the end youwill be one step closer to finding a Maui home for sale,and being able to purchase it. The Costs of Transforming Your Home into a Buyers Dream House Turning your house into the home of a buyer's dreams doesn't have to cost a great deal of money. In fact, armed with some paint and the determination to work hard, most home sellers usually need to invest only about $500 to spruce up their homes for a quick sale. The Value of Building Home Equity There are numerous advantages to owning a home. One of the serious advantages is the equity that is built over time. Cutting Edge Real Estate: Is There Anything New? Part 1 The world of real estate has pretty much stayed the same for decades. It's no different today than it was 50 years ago. Boston Real Estate - You Still Have Considerable Control Over the Sale of Your Boston Home Boston real estate is a hot topic. Daily newspaper articles comment on whether or not a bubble exists in the Boston real estate market, when and if it will pop, how interest rates affect the market, why Boston residents are snapping up interest-only loans, and how foreign investors in our treasuries keep interest rates low. Dealing With Difficult Tenants When managing residential properties one bad tenant can often undo the good work that one hundred excellent ones may have achieved. A bad tenant is a bad tenant regardless of whether they are in the West Riding, Western Australia, Westchester, Wanganui or the Western Isles. Investment Property - Leveraging Rental Property Equity Owning investment property is a tremendous wealth building strategy. Thousands upon thousands of individuals have amassed great wealth by investing in rental properties. Understanding Title Insurance Title to a property is a record detailing the owners of the property and rights associated with the ownership. Title typically shows a progression of ownership from the first owner to the current one. Good Tenants - Learn Twelve Ways Landlords Keep Them Happy, Long-term Good Tenants Paying On TimeHow to Create a Win-Win Relationship for the Both of You!After you've found your tenants, how do you keep them? Establish a friendly, pleasant, business-like relationship with your tenants, so they'll want to renew again each year. By using one or a few ideas below, you will learn how to keep good tenants. Eight Out of Ten Millionaires Surveyed Made their Fortune in Real Estate - How? Consider the statistic in the title for a moment.8/10 millionaires surveyed found their wealth in Real Estate. Types of Listings with Agents There are several different types of listing contracts. Few of them are detailed below:Open ListingThis type of listing is when you, the seller, don't want to commit to any one particular agent and when you are also open to selling the home by yourself. How to Calculate Real Estate Rehab Profits If you are investing in real estate you will face a variety of challenges. First you have to find the right property. California Home Seller Disclosure Duties Property Condition - Seller's What to Expect During the Inspection ProcessThe Transfer Disclosure Statement (T.D. Salt Lake City Real Estate From the mountains to the valley, there are many types of Salt Lake City real estate to choose from.Cabins:Cabins nestled into the mountains on the east side of the Salt Lake Valley are a great place to escape for those who have a home in the valley (or nearby). Sell Your Home Without a Realtor and Save Thousand$$$ A typical real estate commission on a $234,000 home (national median price for all existing homes as of July 2005) is over $16,000. In many areas the cut a real estate broker gets is much higher. Real Estate Investing - The First House Purchase Real estate investing usually begins with the purchase of a house, rather than raw land or commercial property. The purchase of a relatively inexpensive house for rental or fix-up purpose is usually lower risk than any other type of real estate investment. The Ultimate Short Sale Secret Buying foreclosures can be extremely profitable for real estate investors. However, most of these homeowners are mortgaged to the hilt. Flat Fee MLS Listings - Is This The Future Of Real Estate Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it creates more work for the buyers agent, while others see this as a way to tap into the For Sale By Owner market. Business Credit Card Dirty Tricks My system teaches people that the proper useof credit is the fastest way to speed up your profits in real estate investing.And you can use this system no matter what your own credit score is. Real Estate Bubble: Fact or Fiction? The real estate market buzz across the country these days revolves around the anticipated and much feared "bubble". The implication is that once burst, prices will spiral downward taking with them the major assets of those foolish enough to buy at a time when disaster looms large.
|
| home | site map |
| © 2006 TIGER MEDIA |