Category Archives: Uncategorized

Choosing the right real estate agent

Posted on June 5, 2015 | Leave a comment

A good real estate agent can make or break a home search, especially if you’re a young buyer.

According to a new report by the National Association of Realtors, 90 percent of adults 34 and younger who bought a home in the 12-month period ending June 2014 used an agent.

“They want someone who is going to help them through the process because they’ve never done this before,” said Jessica Lautz, director of survey research and communications at the association. “And that’s different from the other age categories.”

Many young buyers rely on referrals from family and friends to find an agent, according to the study. But before you pick an agent, here are four questions to ask.

Whom do you represent?

You want an agent who will look out for your best interest. Some states allow what’s known as dual agency, in which an agent can represent both a buyer and a seller in the same transaction. By representing both sides, however, the agent can only give limited advice.

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The murky world of real estate agent/broker commissions

Posted on June 3, 2015 | Leave a comment

It’s one of the dark corners of American real estate that doesn’t get much attention from consumers: When realty agents representing potential buyers don’t like the commission split offered on a particular listing, they might boycott it: simply not show the house to clients.

The net result: Houses get less exposure. They sit on the market longer than they would otherwise and the seller may end up with a lower price. The practice, known as “sell-to-the-commission,” has surfaced recently as discount brokers in major markets advertise low fees on both sides of the transaction, and home sellers increasingly ask: Why am I paying 6 percent to agents when I know my well-priced, well-maintained house will sell quickly?

The issue bubbled up earlier this month during a frank discussion among agents across the country on the industry website ActiveRain.com. Some agents described the practice as commonplace or even “rampant” in their areas. One, Eve Alexander of Buyers Broker of Florida, in Orlando, said “It is a fact that when the co-op fee is peanuts, less agents will show it and it will more than likely take longer to sell.” In a subsequent interview with me, Alexander deplored the practice, saying “sellers usually don’t know” that their property is getting fewer showings because of the low fee-split to the buyer-side agent. And buyers don’t know what they’re not being shown.

Disclaimer: for information and entertainment purposes only

HOA Super lien pose perils for home buyers

Posted on June 1, 2015 | Leave a comment

Could some of the nearly 67 million Americans who live in communities governed by homeowner associations — condominiums, master-planned developments, cooperatives and others — face much tougher underwriting and higher interest rates when they apply for a mortgage?

That is the looming threat from the mortgage industry in areas where state laws give community associations “super-priority” liens on dwellings whose owners have not paid their assessments.

Super-priority liens give a community association the power to initiate foreclosures and get first crack at the proceeds from the sale of a delinquent dwelling unit, ahead of the traditional first-lien position held by the mortgage lender. Twenty-two states plus the District of Columbia currently have authority for super liens on their books, and all 50 states recognize homeowner association liens.

Homeowner associations argue that, like property taxes for local governments, assessments or dues on units fund the essential operations of the community. They are crucial to maintain the community’s buildings, roadways, parks, recreation centers and other amenities. When unit owners fail to make the payments, the shortfall must be made up by the rest of the owners, often through higher assessments.