Happy Thanksgiving!

I had a repeat question that has been asked many times and in different forms. The question was about looking at just my/my office's listings.

FYI - looking at my listings are great, BUT there are other homes to look at. Why limit yourself to just my listings from my office? I think bigger, much bigger and so should you. If you where listing your home would you just want some buyers or would you want as many buyers as possible? You would want as many as possible. This is what I do for my clients.

Do Not limit your choices, I am hear to help you find the BEST match no matter who has the listing and no matter who the buyers are or where they come from.

School Lesson in Session:

Something to remember are the issues with "Agency".

If an agent has a listing their first job is to represent the Seller foremost.

If an agent has a listing and they also represent the buyer on the same house, they are in a situation where they have what is called "Dual Agency." This means they represent the Buyer and the Seller on the same home. Keep in mind that who ever they started with first has first position and the agent is required by law to represent that person foremost.

This does not apply to a Seller who has an agent help them sell their current home and then helps them (the Seller) find a new home to buy. This situation is fine unless the agent represents their current client plus they represent the new Seller on the new home purchase too.

A couple of ways to remove this obvious conflict of interest is for the listing agent to suggest another agent from their office represent the Buyer (you). This helps with conflict and the Agency stays the same as Dual Agency (because the agent is from the same office) but without the conflicts present when one agent represents both the Buyer and the Seller

I cannot even begin to count the amount of buyers who in hindsight feel they got less than adequate representation because they demanded to only work with a listing agent even after the agents suggested another agent to help represent the Buyer.

The perks of working with a listing agent do not always outweigh the possible problems.

If you demand to only work with a listing agent - PLEASE be aware.


An example ( albeit a bit funny) of having a seller's agent represent you as a buyer is kind of like if you where getting a divorce and you figured you would use your partners attorney that is coming after you in the divorce because you think it will save time and money.

Do you think you would get your best representation?


Just some thoughts to consider, because you are a very smart person and I always want to be sure I share with you the best possible options to help you as a Buyer, Seller or even BOTH!

Real Estate does not have to be a bad experience. Going into a purchase contract or a listing contract does not have to feel scary. Once you understand what I am prepared to do for you and how the contracts help protect everyone. The contracts makes for a smoother, better, and safer Real Estate transaction for everyone.

You would not buy a $30,000 car unless you had some sort of contract in place, why buy a $300,000 up to a multimillion dollar property without the same if not better protection in place as well?


Happy Thanksgiving!

Eat well, Drive safe and enjoy the time with friends, family and loved ones.


Sincerely,


Ken Webb


Ken Webb - Realtor/Agent
OCAR, NAR, CAR
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Today's Real Estate News - April 14th, 2010

Loan Delinquency Rate Takes a Notable Dip
The percentage of delinquent mortgages declined to 6.57 percent in the first quarter from 6.60 in the last quarter of 2009, according to Equifax and Moody’s Economy.com.

This is the first decline in the delinquency rate since the first quarter of 2006.

"It portends a peaking of the foreclosure crisis," says Mark Zandi, chief economist for Moody’s.

Reasons for the decline include tougher lending standards, mortgage modification efforts and a more stable job market, economists say.

Source: USA Today, Stephanie Armour (04/14/2010)

Daily Real Estate News | April 14, 2010 |

Mortgage Applications Fall Sharply
Applications for mortgages to purchase properties declined 10.5 percent last week compared to the previous week on a seasonally adjusted basis, according to the weekly mortgage applications survey released by the Mortgage Bankers Association.

On an unadjusted basis, the purchase index was down 10.5 percent compared to the previous week and fell 17.5 percent compared to the same week a year ago.

Application volume was affected by the rising cost of FHA mortgage insurance premiums, the bankers said. Applications for conventional mortgages also were down, driven by an increase in rates, said Mike Fratantoni, the association’s vice president of research and economics.

Overall, applications for both purchases and refinances decreased 9.6 percent on a seasonally adjusted basis. Interest rates actually decreased compared to the previous week:

• 30-year fixed-rate mortgages decreased to 5.17 percent from 5.31 percent.
• 15-year fixed-rate mortgages decreased to 4.45 percent from 4.54 percent.
• 1-year ARMs decreased to 7.02 percent from 7.03 percent.

Source: Mortgage Bankers Association (04/14/2010)

Daily Real Estate News | April 14, 2010 |
Lenders Push Back on 2nd-Lien Cuts
Executives representing major lenders told lawmakers that principal reductions on second mortgages may not be enough to heal the housing crisis and should not be their sole option for modifications.

They warned that forcing write-downs on second liens could rattle the markets, inflate downpayment requirements, tighten credit criteria more, and boost risk premiums for mortgage credit.

Executives also noted that they have been able to modify first-lien loans without also modifying second-lien loans.

Source: American Banker, Donna Borak (04/14/2010)

© Copyright 2010 Information Inc.

Daily Real Estate News | April 14, 2010 |

Affordable Housing Goals Didn't Doom Fannie
Federal affordable housing goals weren’t responsible for the collapse of Fannie Mae and Freddie Mac, Assistant Treasury Secretary Michael Barr said Tuesday in a speech to the Mortgage Bankers Association.

“This claim simply is not supported by the facts,” Barr said.

Instead, Barr said management’s decision to lower standards in order to compete with Wall Street for profitability drove Fannie and Freddie to risk too much on poorly underwritten loans and the sale of questionable securities.

Fannie and Freddie “relaxed standards for the same reasons other market participants relaxed standards: old-fashioned greed and flawed regulation,” Barr said.

Source: The Wall Street Journal, Nick Timiraos (04/13/2010)

More Single Buyers Opt for Suburbs
More singles are buying homes in suburbia, reports Coldwell Banker, which conducted a nationwide survey of single home owners on the factors that motivated them to buy.

Here are some figures that reflect the reasoning behind their choices:

• 52 percent chose the suburbs over urban or rural areas.
• 53 percent of single home owners said they purchased a home because it was a better deal than renting.
• 68 percent chose a home priced lower than they could afford.
• Of the 13 percent who own their home jointly with another person, 49 percent made the purchase with their parents.
• 55 percent have less than a 30-minute commute to work.
• 40 percent live within 30 minutes of their parents or extended family.
• 27 percent of women thought the number of bedrooms were important, while only 18 percent of men felt the same way.
• 38 percent of men would consider buying a foreclosure, while only 29 percent of women would consider one.

Source: Coldwell Banker (04/14/2010)