Posts Tagged ‘National Association of REALTORS’
Posted by tblefko on June 3, 2010
So you’re thinking about putting your home on the market and moving to that condo/farm/new build/quiet neighborhood/high-rise/bigger home/smaller home (select one). Even though prices on homes seem to be stagnant and you won’t be able to get as much for your home as you could just three years ago, the deals you can get as a buyer after you sell your home seem too good to pass up.
Your natural inclination is to save the commission and try to sell your home yourself which will leave extra cash to put toward your next home. Simple math says that if you don’t pay a REALTOR® a commission to sell your home, you’ll have more left over to buy your new home. You may want to reconsider your strategy.
In a recent article posted on FORBES.com, they make the case that going it alone has drawbacks that most potential ‘For Sale By Owners’ don’t even consider.
Here is the article posted in its entirety:
Five Reasons Why You Still Need a Real Estate Agent ¹
The proliferation of services that help homebuyers and sellers complete their own real estate transactions is relatively recent, and it may have you wondering whether using a real estate agent is becoming a relic of a bygone era. While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go–and could end up being more costly than a realtor’s commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking. Find out why you shouldn’t discard the notion of hiring an agent just yet.
1. Better Access/More Convenience
A real estate agent’s full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents. Both the buyer’s and seller’s agent work full time as real estate agents and they know what needs to be done to get a deal together. For example, if you are looking to buy a home, a real estate agent will track down homes that meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner.
Similarly, if you are looking to sell your home yourself, you will have to solicit calls from interested parties, answer questions and make appointments. Keep in mind that potential buyers are likely to move on if you tend to be busy or don’t respond quickly enough. Alternatively, you may find yourself making an appointment and rushing home, only to find that no one shows up.
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Posted in Agents, Buyers, Sellers | Tagged: Buyers, Sellers, National Association of REALTORS, Web Sites, Agents, Negotiating, Real estate, FSBO, For Sale By Owner, Fiduciary, Commission | Leave a Comment »
Posted by tblefko on November 23, 2009
Within the last two weeks, the National Association of REALTORS® (NAR) unveiled its vision of a national property database called the REALTORS® Property Resource (RPR) that would be available to its membership starting in the second quarter of next year. After I watched NAR’s online presentation of the RPR the first thing I concluded (read my post here) was that they were going to build a national Multiple Listing Service (MLS) even though they stated numerous times during the presentation, “This is not a national MLS.” I didn’t buy their statement two weeks ago and I’m not buying it today. I wish they would just call a spade a spade and get on with it.
While the NAR and the oodles of MLS’s serving their membership haggle over how they’re going to tweak or preserve the status quo, Google is busy blowing up the old model and rewriting the rules of the game.
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Posted in Agents, Buyers, Consumers, Lancaster, Technology | Tagged: Google, Google Map, Google Streetview, Move, Multiple Listing Service (MLS), National Association of REALTORS, Realtors Property Resource (RPR), Search Engines, Trulia, Zillow | Leave a Comment »
Posted by tblefko on November 19, 2009
Since the National Association of REALTORS® (NAR) first unveiled the REALTORS® Property Resource (RPR) at NAR’s Convention in San Diego this past week, I have been intently following and participating in the online conversation so that I can fully understand the breadth of this behemoth. My conclusion thus far – - – This WILL change everything! From how individual REALTORS® in the field do business to how local Association’s and MLS‘s operate to how the consumer perceives us. Trust me; this is the biggest thing to happen to our industry in last twenty-five years. Nothing even comes close. What is amazing to me is that most REALTOR® (my guess is 90%) haven’t even heard of the RPR yet. Mention the RPR and it’s like watchin’ deer in the headlights. Most have no clue.
Why is that? Why the indifference? My guess is that our industry is so focused on pulling itself out of the economic malaise of the past sixteen months that this game-changer has gone unnoticed. In addition, even though it has been introduced, you can’t get your hands on it yet. (NOTE: The official release date of RPR is sometime in April of 2010.) It’s all talk and talk is cheap. Most REALTORS’® attitudes mirror a line from one of my favorite movies, Jerry Maguire: ”Show me the money!” Not literally; but figuratively. They want NAR to, “Show me the product!”.
In case you don’t want to watch the 90 minute NAR webinar or read the press release or read the hundreds of real estate blogs that are covering this important endeavor, here is a condensed synopsis for you. I’ve added my own thoughts and musings after each bullet point to give you my take and to make you think. If you think that I’m too far “out there”, feel free to ignore the commentary sections. I won’t be offended. WARNING – even though this is condensed, it’s still a bit lengthy: Read the rest of this entry »
Posted in Agents, Consumers, Technology | Tagged: National Association of REALTORS, Fannie Mae, Zillow, Zestimates, Federal Reserve System, NAR, Multiple Listing Service, Cyberhomes, Realtors Property Resource, Lender Processing Services, Jerry Maguire, Automated Valuation Model (AVM), Realtors Valuation Model (RVM), Virtual Office Website (VOW), Application Programming Interface (API) | Leave a Comment »
Posted by tblefko on November 7, 2009
Late yesterday afternoon, the National Association of REALTORS® (NAR) announced that on November 12, they will unveil a new web site called HouseLogic designed to provide home owners with a smart, simple resource to help them manage their homes wisely and to help REALTORS® extend their relationship with consumers through the entire lifecycle of homeownership. While the specifics are still sketchy at this point, it is clear that NAR’s latest foray into the world of online real estate is not just a simple blip on the radar screen but rather a major trembler within our industry.
For the past couple of years, NAR has been working on a project called the ‘Realtors Property Resource’ (RPR) that has been shrouded in secrecy. In fact, even the name was a mystery. It had been called ’Gateway,’ ‘The Real Estate Channel’ and the ‘Library/Archive.’ Those of us in the industry weren’t even allowed to know all the details about the project. Was it for consumers? REALTORS®? Would it provide data on every property in the US? Was it designed to be a property valuation tool? Would it take the place of REALTOR.com? Or, dare I ask – - – Was it intended to be a national multiple listing service? It was like throwing darts from 50 yards to try and hit an ant – who knew?
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Posted in Agents, Consumers, Technology | Tagged: Cyberhomes, Lender Processing Services, Multiple Listing Service, National Association of REALTORS, Realtor Valuation Model, Realtor.com, Realtors Property Resource, Zillow | Leave a Comment »
Posted by tblefko on November 6, 2009
The Lancaster County Association of REALTORS® Government Affairs Department, headed up by Frank Christoffel, IV, passed this Q&A along regarding the latest information on the potential extension of the homebuyer tax credit which includes an existing homebuyer credit that was not part of the first bill.
The House of Representatives passed the extension yesterday by a vote of 403-12 after passing the Senate the previous night 98-0. The new provisions will take effect as soon as President Obama signs the bill.
Here are some of the specifics regarding eligibility requirements:
1. Existing homeowner credit: Must the new house cost more than the old house?
No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
2. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
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Posted in Agents, Buyers, Consumers, Financing, Legislation, Sellers | Tagged: Agents, Barack Obama, Buyers, FAQ, Financing, Lancaster County Association of REALTORS, National Association of REALTORS, Obama, Sellers, Tax credit, U.S. Housing Market, United States Senate | 2 Comments »
Posted by tblefko on August 15, 2009
Image courtesy of Flickr
I remember a couple of years ago when Zillow first hit the real estate scene. Consumers embraced the web site almost immediately because of the web site’s cool, on-line tools. One tool in particular caught their fancy: the Zestimate. This single, funny-sounding word would grow to strike fear in the heart’s of REALTORS® everywhere.
But what is a Zestimate? A Zestimate is an estimated market value of a home based on Zillow’s proprietary, mathematical formula. The home data they compile to generate a Zestimate home valuation varies by location. Some geographic areas provide all the data Zillow could hope for, but others are lacking such key things as the number of bedrooms and bathrooms, or, in some cases, the square footage of the home. The theory says that the more data Zillow has, the more accurate the Zestimate. They even made it easy for users of the site to help them improve accuracy by incorporating edited home facts into their Zestimate calculations. In some areas, Zillow can’t produce a Zestimate at all, but they do have some basic information on the homes.
Why did REALTORS® dispise Zillow? Because they claimed that the tool that produced Zestimates oversimplified the valuation process and gave inaccurate results. Regardless, Zillow shot up the popularity charts and in no time at all it was firmly entrenched as one of the top ten real estate web sites in the world. REALTORS® looked at the new kid on the block as a threat to their own personal fiefdom as experts on property valuation. They exclaimed, “How dare they hand out FREE property estimates! They’re misleading consumers. Why can’t consumers see that the accuracy of Zestimates is atrocious?”
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Posted in Agents, Lancaster, Market Conditions, Sellers | Tagged: Agents, Charts, Lancaster County, National Association of REALTORS, Property Values, Sellers, Statistics, Video, Zestimates, Zillow.com | Leave a Comment »
Posted by tblefko on July 28, 2009
Image courtesy of Flickr
Like it or not, one of the most pessimistic (some would argue realistic) housing economists of our generation, Robert Shiller, will probably always be associated with the worst housing downturn since the Great Depression. He was one of the first outspoken people to warn us of an impending ’housing bubble’ as far back as 2003. At that time, most economists scoffed at his assertions and at his newly created S&P/Case-Shiller home-price index. He was like that single, stray cloud that blocked your personal sun on the beach on an otherwise beautiful day. Annoying, but if you waited long enough, it would pass and the sun would return. One small problem - Shiller’s cloud grew into a full-fledged thunderstorm that very few people saw coming.
His S&P/Case-Shiller home-price index has been quoted far and wide as the definitive read on the housing market. For months, it hasn’t been a rosy picture, but today that sun returned to the beach. For the first time in three years, his index showed an increase in nationwide housing prices of .5% for the month of May.
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Posted in Market Conditions | Tagged: Great Depression, Karl Case, National Association of REALTORS, Property Values, Reports, Robert Shiller, S&P/Case-Shiller Home Price Index, Statistics, U.S. Housing Market, United States Department of Commerce | Leave a Comment »
Posted by tblefko on July 26, 2009
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The National Association of REALTORS® (NAR) reported on Thursday of this past week that existing home sales for the month of June increased for the third month in a row fueling speculation that the housing downturn is starting to reverse direction. Excerpts of NAR’s press release¹ follow:
Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008.
Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions . . . “
Much of the fuel for the fire of homes sales has occurred in the first-time homebuyer market which has accounted for 29 percent of transactions according to an NAR survey of its practitioners. With the $8,000 tax credit deadline of December 1, 2009 (4½ months away) fast approaching, it will be interesting to see if this segment continues to stoke sales numbers.
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Posted in Lancaster, Market Conditions | Tagged: Lancaster County, Lawrence Yun, National Association of REALTORS, Reports, Statistics, U.S. Housing Market | Leave a Comment »
Posted by tblefko on July 12, 2009
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The real estate industry has been operating under the new HVCC guidelines for a couple of weeks now and we are beginning to see the ugly results of this misguided set of government regulations. In a preliminary report issued this past week by the National Association of REALTORS® (NAR), it finds that the HVCC is having an adverse impact on housing markets.
Before I get into the actual results, let me spend a minute and tell you about what this new set of guidelines was supposed to do.
The HVCC was intended to promote independence in the appraisal process and, thus, help ensure that appraisers and the appraisal process may be relied upon as part of sound underwriting for financial institutions. What that actually means is that the loan officer who is working on your loan no longer orders the appraisal on your home. It is done through the lender who either has an in-house process for appraisal management issues or, more often, it is done through something called an Appraisal Management Company (AMC).
While this may not seem like a big change to you if you are buying a home, it can possibly be a much bigger change than you might think. Prior to May 1, loan officers, REALTORS® and appraisers all communicated as needed regarding your home and home financing and it wasn’t uncommon for everyone to be on the same conference call if needed. But now that the HVCC rules are in place, the only way the loan officer or REALTOR® will know who the appraiser is is if by chance the appraiser calls them. In other words, no one talks to anyone to clarify anything!
Now, on to the findings of NAR’s analysis:
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Posted in Agents, Buyers, Financing, Legislation, Sellers | Tagged: Agents, Appraisal, Appraiser, Buyers, Financing, HVCC, National Association of REALTORS, Property Values, Reports, Sellers, Statistics | Leave a Comment »
Posted by tblefko on July 10, 2009
The gap between the 2008 and 2009 real estate markets in Lancaster County is down to a razor’s edge. On Wednesday of this week, the front page of the Intelligencer Journal ran the following story:
Market Here For Housing Gets Better ¹
Numbers for pending home sales improve
The housing market in Lancaster County continued to rebound in May, creeping ever closer to 2008′s level, local Realtors reported Tuesday.
The number of pending home sales here was down only 2.5 percent from the May 2008 figure, the smallest gap so far this year, according to the Lancaster County Association of Realtors.
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Posted in Lancaster, Market Conditions | Tagged: Agents, Buyers, Financing, Intelligencer Journal, Lancaster County, Lancaster County Association of REALTORS, Mortgage, National Association of REALTORS, Newspapers, Property Values, Statistics, U.S. Housing Market | Leave a Comment »
Posted by tblefko on July 1, 2009
Photo courtesy of Flickr
In a report released today by the National Association of REALTORS® (NAR), the Pending Home Sales Index advanced for a fourth month in a row. Granted, the increase was only 0.1% from April to May, but it was still good news. In addition, the index continued a four month positive trend which is the first time that has happened in nearly five years. On an even brighter note, the index rose a whopping 6.7% when you compare it to May of last year.
We do need to temper our enthusiasm; however, because a rise in sales contracts may not yield a like increase in completed sales. Lawrence Yun, NAR’s chief economist said, “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions.”
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Posted in Buyers, Financing, Market Conditions, Sellers | Tagged: Appraisals, Financing, Foreclosures, Housing Affordability Index, Lawrence Yun, National Association of REALTORS, Pending Home Sales Index, Property Values | Leave a Comment »
Posted by tblefko on June 5, 2009
Image courtesy of Flickr
I read two surveys within the last week that reconfirm my belief that newspaper advertising for real estate is now officially a thing of the past. No more will I listen to those pundits that extol the benefits of this flimsy periodical from a bygone era. If you’re a homeowner who needs to sell their property and is considering what forms of advertising to utilize – - – listen up. If you’re an agent who is looking for ammunition to try and convince a potential listing that newspaper advertising is not worth it – - – you’re about to hit the jackpot.
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Posted in Agents, Buyers, Sellers | Tagged: Advertising, Agents, Buyers, Charts, National Association of REALTORS, Newspapers, Sellers, Statistics | Leave a Comment »
Posted by tblefko on June 2, 2009
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When I first got into the real estate business year’s ago, occasionally I would run into a seller that told me to sell their home quickly at the highest price but with some of the following caveats:
My response was always the same; “Are you out of your mind?” Actually, I conveyed my message a little differently but the point was always the same; “Mr. & Mrs. Seller, in order for me to get your home sold in the shortest period of time at the highest price, I need all the tools available to me. That includes . . . . “ At the end of the day, I would get the listing, use all the tools and eventually sell the home.
I can understand this line of reasoning from a seller (hmmm – not really) but from the National Association of REALTORS® (NAR), I’m floored!
Posted in Agents, Legislation, Sellers | Tagged: Advertising, Agents, Google, IDX Feed, National Association of REALTORS, Sellers, Web Sites | 2 Comments »
Posted by tblefko on May 23, 2009
Over the last decade, the role of a REALTOR® has changed drastically. REALTORS® are no longer the gate-keepers of information because of the proliferation of real estate related web sites on the internet. Consumers today can compare mortgage rates of various lenders, read about ways to improve the marketability of their home and obtain comparable home data from the comfort of their home without any interaction from a real estate professional.
While a REALTORS® role may have changed, it doesn’t mean our importance as a trusted advisor has waned. In fact, our function today is more valuable than ever.
I read an article on REALTOR.org by Steve Harney that drives this point home. Steve specializes in negotiation and leadership training and has been in the industry for more than twenty years, first in sales and then as broker-owner of a 500-associate real estate company. He explains that the REALTOR® of today needs to be able to take all that information that is readily available to the consumer and interpret it for them. Here are four questions that Steve lists in his article that today’s real estate practitioner needs to be able to address. Notice that none of them has anything to do with providing a printout or a body of statistics but rather furnishes a valuable interpretation and opinion of why things are the way they are today.
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Posted in Agents, Buyers, Market Conditions | Tagged: Agents, Buyers, FAQ, Lancaster County, National Association of REALTORS, Statistics, Web Sites | Leave a Comment »
Posted by tblefko on May 3, 2009
Image courtesy of Flickr
If you take a moment and peer up into the sky you will actually see that we are at the crossroads of a real estate buying opportunity like we haven’t seen in my lifetime. All the factors that go into making a real estate buying decision are perfectly configured. But like most perfect planetary alignments, clouds and precipitation sometime make it difficult to see this truly amazing sight and before you know it, the moment has passed. The four planets that I see aligning are as follows:
1. Mortgage Financing - If you’re like most people, you will need a mortgage to assist you in purchasing a home. Interest rates right now are the lowest that they have been in decades (see ‘Mortgage Info’ tab). When I first got into the real estate business over twenty-five years ago, the 30 year fixed rate was about 17% (this is not a misprint). To put that in easier terms to understand, a principal and interest payment on a $150,000 mortgage then was $2,138 – - – now $805. Hopefully, President Obama’s programs and endeavors will start to have some positive effects on the economic growth in this country. When that happens and consumer spending starts to pick up, what do you think will happen to interest rates? I was not an Economics major in college, but even I can figure out that rates will tick up because of inflationary fears. So if you have good credit, money to work with and an income that can be verified, there has never been a better time to get a mortgage.
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Posted in Buyers, Financing, Lancaster, Market Conditions, Sellers | Tagged: Buyers, FICO Score, Financing, Lancaster County, National Association of REALTORS, Obama, Property Values, Sellers, Statistics | Leave a Comment »
Posted by tblefko on March 24, 2009
I’m starting to hear the distant drumbeat. Do you hear it? Not yet? Stay quiet for just a second longer. There!!! You had to have heard it that time. It’s the sound of the real estate market coming back to life. Over the last thirty days there have been tiny rays of sunshine peeking through the storm clouds. Here’s one of those rays – - -
Posted in Agents, Buyers, Market Conditions, Sellers | Tagged: Buyers, Interest Rates, National Association of REALTORS, Predictions, Property Values, Sellers, Video | Leave a Comment »
Posted by tblefko on February 23, 2009
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So you think you’re fairly savvy when it comes to real estate? Let’s test your smarts. The National Association of REALTORS® surveys home buyers and sellers annually to gather information about the home buying and selling process. I’ve compiled a five question quiz based on the results of that survey for your entertainment pleasure. The answer key can be found at the end of this post (no peeking).
1. Single women buy more homes than single men by what percent?
A. 25%
B. 10%
C. 3%
D. Statistically it’s a dead heat.
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Posted in Agents, Buyers, Sellers | Tagged: Buyers, National Association of REALTORS, Quiz, Sellers | Leave a Comment »
Posted by tblefko on February 5, 2009
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Since I have been selling real estate, there have always been NIMBY’s (Not In My Back Yard) show up at planning commissions and protest against high-density developments based upon emotions gone wild instead of looking at the merits of the specific submission by the developer. I am not naive enough to think that every proposed high-density development plan is manna from heaven. There are definitely bad plans served up for our consumption. But when a good plan is submitted and dismissed out of hand as the second coming of the devil, I feel I need to point out the fallacies of the NIMBY mantra.
Assumption #1: Higher-density developments overburden public schools and other public services and require more infrastructure support systems.
The United States Census Bureau has determined that for every one hundred, single-family detached homes built, there are 64 school-aged children that live there. Compare that number with 21 kids living in the same number of apartment units. For some reason, people incorrectly assume that with an increase in housing units there is also an increase in the number of people who live in each unit. In addition, by building more housing in a smaller area there is less need for lengthy water and sewer lines, expensive sidewalks and curbs, and linear feet of roadway.
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Posted in Development | Tagged: Crime, Environment, Farmland, High-Density Housing, National Association of Home Builders, National Association of REALTORS, NIMBY, Pennsylvania Association of REALTORS, Property Values, U.S. Census Bureau, Zoning | Leave a Comment »
