When I am 'fair' to a seller that means I won't cheat them. I will also treat them with respect. That does NOT mean I will treat them equally. In fact I will NOT treat them equally. I will use every legal means I have to gain an advantage for my buyer client.
If a buyer wants an agent that will work in that way they should be free to choose such an agent. Does disclosure do that for them? Not necessarily -in fact it almost never does. Buyers often see a house online they like and call the company representing that seller. They usually don't buy that house but if they "like" the agent they may stick with them. They may lose sight of the issue of representation.
What if they look at the house with the agent of the seller and then want to buy it but wake up and want someone on their side because they don't feel they are experienced enough to go it alone? If they try to change, many agents will shout PROCURING CAUSE.
Buyers usually don't sign brokerage fee agreements with their agent because the agent goes along with whatever the seller and their agent have decided to 'offer' a buyer's agent as 'compensation'.
AT THE CORE of the issue of dual agency is the commission system. Although lack of proper and timely disclosure is a HUGE problem the brokerage fee system is interconnected.
To make a real change:
- outlaw the system that all too often ties the buyer's agent's fee to an offering from the seller or their agent. They may determine a 'set aside' but should not have the expectation that it will equal the buyer's agent's fee as negotiated independently with the buyer.
-Require agents to have a written contract with buyers as a condition of collecting a fee. -Start by making it illegal for an agent to collect a commission for a sale unless the buyer has been given and signed a REAL agency disclosure PRIOR TO looking at the house.
State legislatures could address this but as I see it it is a federal issue. Much of the money involved is funded by government backed loans. That makes it a legitimate area for involvement by the feds. As it is, the current commission system inhibits competition. It nearly eliminates any chance of competition regarding brokerage fees on the buying side of the transaction and this is facilitated by the virtually universal practice of the MLS "offer of compensation".
The information below was provided by Steve Kappre of Treasury Mortgage. Mortgage smarts coupled with local knowledge is a great combo and it is even better that Steve is in my market area to help my buyers. --Paul Howard
MORTGAGE OPTIONS FOR THE VILLAGES AT BERKLEY, MANTUA, NJ
Are you considering a home for sale in the Villages at Berkley located in Mantua, NJ (Gloucester County)?
The Villages at Berkley is a condo and townhome complex located off of Berkley Road in Mantua, NJ. The complex boasts a club house, pool, tennis courts and other amenities. Located in Gloucester County, NJ, there is plenty of access to local stores such as Home Depot, KMart, Staples, and ShopRite. More recently to come to Mantua is a Target and a Lowe's Home Improvement Store. With all of these local options, Mantua still has plenty of parks and walking trails such as those at Chestnut Branch Park on Main Street, which is also the location for many of Mantua's youth sports events.
MORTGAGE FINANCING OPTIONS
The Villages at Berkley has a good price range, spanning from properties below $100,000 to the larger models which have sold for over $200,000. A portion of the units are low-to-moderate income units with one or two bedrooms. Some larger models have 3 bedrooms, 2.5 baths and basements. Below is a breakdown of several financing options you can consider for purchasing a home in the Villages at Berkley.
The typical loans available for Gloucester County area are: Conventional, FHA, VA, and USDA.
Loan: FHA (Required downpayment is 3.5%, or $3,500)
Tax Estimate: $140/mth
Est. Assoc. Fees: $72/mth
Est. Closing and Prepaid Items: $3,200
Est. Monthly Payment: At a 5.5% rate, the mortgage payment would be $547
Est. Total Monthly Payment (PITIA): $823/mth
**First Time Home Buyer's OPTIONAL FINANCING: One current mortgage option is to use a portion of the first time home buyer's tax credit as a down payment on a home. Utilizing this program, known as the Tax Prefund mortgage option, a first time home buyer can receive up to $5,000 of the $8,000 tax credit currently given from the federal government. This $5,000 will be applied to the buyer's required downpayment of $3,500. With $1,500 left over from the credit, a buyer can then apply the balance ($1,500) towards their closing costs. Using this equation a buyer would have to have $1,700 of their own money to close on a purchase of this home. (A buyer can also utilize seller concessions to pay for the difference, in which case in the end, the buyer would need no money his own.)
Est. Monthly Payment: At a 5.5% rate, the mortgage payment would be $851
Est. Total Monthly Payment (PITIA): $1,185/mth
In this scenario no downpayment is required. A buyer would still have to pay their estimated $3,800 closing costs and pre-paid items (taxes and insurance). These costs can also be negotiated to be paid by the seller. This is typically done and the time of negotiation when a buyer and seller come to terms.
* - * - * - * - * - * - * - * - * - * - * - * - *
Example #3: Home Purchase using a Conventional loan
Purchase price: $225,000
Loan: Conventional (5% minimum required down payment - our example will use 20% down)
Tax Estimate: $349/mth
Est. Assoc. Fees: $125/mth
Est. Closing and Prepaid Items: $4,500
Est. Monthly Payment: At a 5.5% rate, the mortgage payment would be $1,022
Est. Total Monthly Payment (PITIA): $1,496/mth
* - * - * - * - * - * - * - * - * - * - * - * - *
Above you have seen just a few examples of financing a home in the Villages at Berkley. There are many other options and ways to structure financing for a new home. Many of these options will work on other homes in the area, but all mortgage programs have guidelines that may or may not allow you to utilize them with the home you desire to purchase. Be sure to consult a mortgage professional with your particular scenario to see what options are available to you.
Trend MLS shows the following ( on July 14,2009) for Mercer County, New Jersey.
Homes for sale: 2447
Single detached homes for sale: 1486
Homes under contract: 588
Homes for sale categorized as needing "TLC": 120 (You can bet there are another hundred needing TLC and you won't know till you get there)
Homes sold (settled) in June 2009: 320, June 2008: 349
Homes for sale with at least 3BR, 2 full baths, garage, basement: 764, with price under $500,000 - 392, under $300,000 - 109
That still leaves a lot to choose from for the average first time buyer and a lot of competition for the average seller.
When the first time buyer tax credit expires on November 30th the effect will be that of an immediate $8000 increase in price across the board for all qualified first time buyers. It is unlikely that beyond that point any additional slide in home prices will make that up.
When you hire a buyers agent - avoid the BS (bait and switch) hire the whole office.
NJHomeBuyer.com Realty, is a member of NAEBA (National Association of Exclusive Buyer Agents) covering South Jersey and Central Jersey. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call Paul today.
For more on NAEBA visit NAEBA
TrendMLS shows the following ( on July 3,2009) for Cherry Hill, New Jersey.
Homes for sale: 667
Single detached homes for sale: 496
Homes under contract: 107
Homes for sale categorized as needing "TLC": 24 (You can bet there are another hundred needing TLC and you won't know till you get there)
Homes sold (settled) in June 2009: 61
Homes for sale with at least 3BR, 2full baths, garage, basement: 275, price under $300,000 - 90
That still leaves a lot to choose from for the average first time buyer and a lot of competition for the average seller.
When the first time buyer tax credit expires on November 30th the effect will be that of an immediate $8000 increase in price across the board for all qualified first time buyers. It is unlikely that beyond that point any additional slide in home prices will make that up.
When you hire a buyers agent - avoid the BS (bait and switch) hire the whole office.
NJHomeBuyer.com Realty, is a member of NAEBA (National Association of Exclusive Buyer Agents) covering South Jersey and Central Jersey. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call Paul today.
For more on NAEBA visit NAEBA
TrendMLS shows the following ( on July 2,2009) for Cherry Hill, New Jersey.
Homes for sale: 667
Single detached homes for sale: 499
Homes under contract: 98
Homes for sale categorized as needing "TLC": 25 (You can bet there are another hundred needing TLC and you won't know till you get there)
Homes sold (settled) in June 2009: 61
Homes for sale with at least 3BR, 2full baths, garage, basement: 275, price under $300,000 - 90
That leaves a lot to choose from for the average first time buyer and a lot of competition for the average seller.
When the first time buyer tax credit expires on November 30th the effect will be that of an immediate $8000 increase in price across the board for all qualified first time buyers. It is unlikely that beyond that point any additional slide in home prices will make that up.
When you hire a buyers agent - avoid the BS (bait and switch) hire the whole office.
NJHomeBuyer.com Realty, is a member of NAEBA (National Association of Exclusive Buyer Agents) covering South Jersey and Central Jersey. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call Paul today.
For more on NAEBA visit NAEBA
Deceptive Advertising in Real Estate - Avoid the BS - Bait and Switch
I have no problem with agents saying they are a buyer's agent - if they are and will be. When it comes to advertising ones self as a buyer's agent, though, it is unethical to do it without disclosing in the same advertising any potential that they might not be able to deliver on that. The ONLY agents that can advertise unconditionally as a buyer's agent are those that work for companies that do not list homes - Exclusive Buyer Agents. The only way I know to be sure that a company is an Exclusive Buyer Office is to verify that they are a member of NAEBA - The National Association of Exclusive Buyer Agents.
It is my view that most advertising as 'buyer agents' by Realtors and other licensees across the country is deceptive when they advertise unconditionally. Only in the case of Exclusive Buyer Agents would the claim always be true.
When the URL for the page shouts "Buyers1st" or some equivalent words, or when the landing page (any landing page) makes a statement that the consumer should use them as their buyer's agent without disclosing any potential for dual agency -- that is deceptive.
When a Realtor or other licensee advertises themselves as a buyer's agent without disclosing dual agency potential - even in a designated agency state - that is deceptive because at that point they have not been 'designated' as a buyer's agent by their firm and even then the person doing the designating would be a dual agent if the firm listed the property in question.
The issue is disclosure -that is definitely true. I'm happy to see NAEBA pushing for national disclosure. Although I don't think it will happen at the federal level as soon as it should, I think federal pressure can make it more likely at the state level. On the other hand to the extent that advertising reaches across state lines - it is a federal issue.
The issue is also false or deceptive advertising. That lack of disclosure is what makes the advertising deceptive. The issues are separate though.
My office, NJHomeBuyer.com Realty, is a member of NAEBA covering South Jersey and Central Jersey. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call me today.
For more on NAEBA visit NAEBA
Days on Market: May not be an accurate representation of the length of time a property has been on the market because this number only refers to the days on market for one listing of a property. Multiple listings due to withdrawal from market followed by relisting and expiration of listing followed by relisting serve to provide an inaccurate picture of the time a property has been on the market.
TREND MLS has tried to improve the accuracy of information available to agents.
Property Marketing Period: The sum of days on market for multiple listings of one property when there are fewer than 30 days between the end of one listing and the start of another.
Example: Company A lists #1 Main St. After 120 days the listing expires. 10 days later Company B lists #1 Main St.
10 days into Company B's listing Days on Market is 10 days. Property Marketing Period is 130 days. (One may argue that the true number is 140 days since the 10 day period between listings has been excluded.)
If the seller had not listed #1 Main St with Company B until 35 days after the expiration of Company A's listing then 10 days into Company B's listing the Days on Market would equal the Property Marketing Period. Both would show 10 days.
Even in this case, though, your agent has access to the listing history of the property and can find the prior Company A listing period - even though it will not be shown on either the agent reports or the consumer reports that they give to clients.
The reason the reports that consumers receive from their agent contain DAYS on Market and not Property Market Period is because some agents might not want the buyer they are working with to know this information.
If you are not told the Property Marketing Period ask specifically to be shown the listing and price history of the property.
Use an agent that believes what they know = what you should know.
Members of NAEBA (the National Association of Exclusive Buyer Agents) have taken a pledge to exclusively represent buyers - and never sellers - and they work for companies that maintain that as the core of their business model.
I am a buyer agent member of NAEBA working in the South Jersey and Central Jersey area. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call me today.
Remember: the $8000 tax credit that most first time buyer's qualify for only is available for those settling on their home BEFORE December 1, 2009.
Given the number of Realtors misleading the public with websites proclaiming that they are "Buyer's Agents" or will represent buyers as a "Buyer's Agent" I've decided to dwell on this subject a bit more.
5 Questions a home buyer should ask when interviewing to find an agent to represent them:
How long have you been in the business?
What makes you stand out in your ability to represent me?
Does your company also list homes?
Can you fully represent me (as a fiduciary) if your company listed the home I want to buy?
If I hire you and I want to see one of your company's listings will you release me to work with a buyer agent from another company - even if I have already seen the house?
I'm dwelling on this because there are a number of agents in my area that advertise themselves as 'buyer's agents' on their websites and (if it is there at all) bury the information on dual agency potential. There is at least one local Realtor with a misleading website name (the name itself gives the impression she would be a buyer's agent).
In fact when you go to the first page of the site it states without qualification "I'm "name" of "company" in "town name" , your Home Buying Advocate. I work an 80 plus hour work week to get the right home, at the right price, without fail, for all my clients."
Frankly, that statement is not just misleading. It is unethical, it is false. She works for a big franchise company that lists hundreds of homes.
It is even more bold - and literally in bold - stating: "South Jersey Buyer's Agent Gets the Terms and Price that is Best for you, the Buyer"
The site links to the agent's property search page.
At some point I may report this to the real estate commission - in the mean time I'll just use it for fodder for commenting about buyer agency. I'm sure I've given enough info here for anyone to figure out who the agent is and I'm wondering if the site will change because of it.
Members of NAEBA (the National Association of Exclusive Buyer Agents) have taken a pledge to exclusively represent buyers - and never sellers - and they work for companies that maintain that as the core of their business model.
I am a buyer agent member of NAEBA working in the South Jersey and Central Jersey area. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call me today.
I got a referral the other day from NAEBA. The potential buyer, I found out later, had signed an "Exclusive Buyer Agent" agreement with an agent of one of the large franchise companies. She actually KNEW that the agent was not an Exclusive Buyer Agent and that all the contract meant was that she had to work with this agent (exclusively) for the term of the agreement (though it did have a cancellation provision).
The use of the term "Exclusive Buyer Agent" in this context is at best misleading. There is an organization of EXCLUSIVE BUYER AGENTS called the National Association of Exclusive Buyer Agents. Members of that organization are EBAs (EXCLUSIVE BUYER AGENTS) because they work for companies that never represent sellers or list homes.
In the case of my referred buyer that agent worked for the company that listed a home the buyer had some interest in. This is where she became uneasy about the relationship - with good reason. When she signed that so called "Exclusive Buyer Agent" agreement it also contained a "Consent to Dual Agency" provision. That meant that she agreed upfront that the agent could represent both her and the seller. As you may well see, that conflict can't be resolved so she ended up without ANYONE to represent her interests. Who would help her negotiate the price and, later, home inspection repair issues. Certainly not "her" agent.
It is no wonder that so many consumers end up in this position. This buyer is an attorney and so is her husband. She said, "I feel so stupid". She shouldn't - real estate was not her area of expertise and she didn't realize she had other options. State law does not require that disclosure.
When asked to sign a "Consent to Dual Agency" form consumers should just say no.
State laws do NOT REQUIRE that consumers be told of the exclusive buyer agent option - but they should. Also see: The pitfalls of Dual Agency" in Realty Times.
Members of NAEBA (the National Association of Exclusive Buyer Agents) have taken a pledge to exclusively represent buyers - and never sellers - and they work for companies that maintain that as the core of their business model.
I am a buyer agent member of NAEBA working in the South Jersey and Central Jersey area. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call me today.
Five things a buyer agent should show you when looking at an 'older' home.
The other day while showing a young couple a home they asked me if they could use a voice recorder to record my comments. I thought it was a great idea. When I look at any home (not just an older home) I point out pros and cons and answer a wide range of questions. So, what was it they wanted to record?
Here are 5 things I'm likely to comment on or answer:
Is the grading around the house likely to result in water in the basement?
Is the water service entry galvanized pipe or copper?
Are there cracks in the foundation wall and what effect might that have on the choice of a home inspector.
Are there signs of termite damage/activity or repair.
Are there signs of water penetration in dark corners (I have a big light).
This list applies mostly to houses with basements but not entirely.
In future posts I may do a list on other aspects of viewing homes or on the purchase process.
Think about doing what my clients did (and which I'll encourage others to do) - use a voice recorder or better yet a video camera.
If you are a consumer, looking for a buyer agent in your area, you may find an EXCLUSIVE BUYER AGENT (EBA) at: naeba.org. Members of NAEBA (the National Association of Exclusive Buyer Agents) have taken a pledge to exclusively represent buyers - and never sellers - and work for companies that maintain that as the core of their business model.
I am a buyer agent member of NAEBA working in the South Jersey and Central Jersey area. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call me today.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Are you considering a home for sale in the Villages at Berkley located in Mantua, NJ (Gloucester County)? 
;)
;)
