More and more I am getting calls from agents about other agents who seem to be forgetting some basic rules of courtesy and safety!
As business starts to pick up, you may find that your time is getting harder and harder to schedule. No matter how busy, frazzled, or frenzied you are, don't forget the lessons that you learned when you first entered the business:
1) Avoid letting clients into properties if you won't be accompanying them - Several of the calls I've received are from an angry or irritated listing agents who stumbled across buyers who "let themselves" into the property. This is especially frequent with vacant and REO properties that have combination lockboxes. Just because a home is unoccupied doesn't mean that anyone can come in.
Never give your clients the combination to a lockbox. You don't know when they will access the property or how many times. You may be liable if damages or theft occurs. If you are too busy to meet them at the property, have a trusted colleague or co-worker assist your clients until you are available. (In the 2010 REALTOR® Code of Ethics, allowing someone unauthorized access to a lockbox or property will be a violation of Article 1!)
2) Don't let your clients move in until everything is recorded and funded - Just because your clients have signed all the documents doesn't mean the house is theirs. I am hearing that clients are moving into houses and making changes to the property before the sale has recorded. This is (again) happening frequently with REOs.
It belongs to the bank until everything is final. Accessing and changing things without the owner's [re: the bank's] permission is considered trespassing. If your clients start changing things (paint, peeling up carpet, fixing things) and something happens, there is legal liability.
If you are the one giving them the keys early, you could be liable as well. Just because the keys are in the lockbox doesn't mean you have the authority to provide them to the new homeowner. Homeowners will get keys when everything is final and they need to wait for that.
Advise your clients who are getting appointments lined up (such as cable hook ups or appliance delivery) to wait to schedule those until the property has changed ownership. It it tempting to have it all lined up for the day after "closing" but just in case of delays in recording, wait for everything to be final. Some of the new lending standards can cause delays in paperwork as well and having appointments scheduled so tightly can really cause problems. Your clients may ask you to let them in early and you don't want to put yourself in that position!
Besides those, remember basic things - call before you show a property (even if it says 'vacant' on the MLS listing!) - leave your card after showing - if you can't make an appointment or will be late, let them know - be professional in all you do: what you say, how you act, how you treat others.
Good luck and be safe!
Monday, November 30, 2009
Monday, November 23, 2009
Smart Growth Principles and Attracting Young Professionals to Boise
The Idaho Business Review published a terrific article today about attracting young professionals to Boise and how important the Principles of Smart Growth are to these residents. Take a look! http://tinyurl.com/yfdstas
Kit Fitzgerald
Red Barn Real Estate
Kit Fitzgerald
Red Barn Real Estate
NAR RESPA Seminar Available on Realtor.org
NAR's RESPA Realities seminar, recently presented at the NAR 2009 Annual Convention and Expo in San Diego, is now available on Realtor.org.
National RESPA expert, Phil Schulman, a partner at the Washington, D.C. law firm of K&L Gates, discussed the new RESPA rule with a focus on what practitioners will need to know to comply with the new mandatory Good Faith Estimate and HUD-1 forms which go into effect on January 1, 2010.
NAR members may log-in to Realtor.org and go to the "RESPA Realities" page to download Mr. Schulman's PowerPoint slides. An audio recording of the session will also be available on the RESPA Realities page in the near future.
HUD FAQs dated November 19, 2009 >
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
National RESPA expert, Phil Schulman, a partner at the Washington, D.C. law firm of K&L Gates, discussed the new RESPA rule with a focus on what practitioners will need to know to comply with the new mandatory Good Faith Estimate and HUD-1 forms which go into effect on January 1, 2010.
NAR members may log-in to Realtor.org and go to the "RESPA Realities" page to download Mr. Schulman's PowerPoint slides. An audio recording of the session will also be available on the RESPA Realities page in the near future.
HUD FAQs dated November 19, 2009 >
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
HUD Announces 120-day Period of Restraint in Enforcement of New RESPA Rule
On Friday, November 13, 2009, the Department of Housing and Urban Development (HUD) announced a period of "restraint" in enforcing the new Real Estate Settlement Procedures Act (RESPA) rule, which will go into effect on January 1, 2010. The period of restraint will last for 120 days.
Enforcement restraint will be shown for FHA approved lenders acting in good faith to comply with the new rule, including the mandatory Good Faith Estimate and the HUD-1. HUD also asked other federal and state enforcement agencies to exercise restraint. HUD Secretary Shaun Donovan stated: "While we will not delay implementation of RESPA's new requirements, we are sensitive to the concerns of the industry as it integrates the new rules into their day-to-day business practices."
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
Enforcement restraint will be shown for FHA approved lenders acting in good faith to comply with the new rule, including the mandatory Good Faith Estimate and the HUD-1. HUD also asked other federal and state enforcement agencies to exercise restraint. HUD Secretary Shaun Donovan stated: "While we will not delay implementation of RESPA's new requirements, we are sensitive to the concerns of the industry as it integrates the new rules into their day-to-day business practices."
Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294
Thursday, November 19, 2009
NAR Survey Shows First-Time Home Buyers Set Record in Past Year
San Diego, November 13, 2009
First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2009 REALTORS® Conference & Expo.
The 2009 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers. Among national surveys, NAR’s Profile of Home Buyers and Sellers is unprecedented in size and scope.
Paul Bishop, NAR vice president of research, said several factors have been at play. “Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market,” he said. “These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year’s study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. “It’s interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession,” Bishop said.
Read the rest of the story
First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2009 REALTORS® Conference & Expo.
The 2009 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers. Among national surveys, NAR’s Profile of Home Buyers and Sellers is unprecedented in size and scope.
Paul Bishop, NAR vice president of research, said several factors have been at play. “Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market,” he said. “These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year’s study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. “It’s interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession,” Bishop said.
Read the rest of the story
Forecast Hopeful with First-Time Home Buyers Leading the Way
San Diego, November 13, 2009
Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year.”
A large consumer study being released later today, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.
Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0 percent over last year, and then are forecast to rise 13.6 percent to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.
New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.
The 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year. NAR’s housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.
“We’ve seen a steady downtrend in housing inventory for well over a year and home prices appears to be in the early stages of stabilizing. With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5 percent in 2010, but with wide geographic differences,” Yun said.
He expects growth in the U.S. gross domestic product to be at a pace of 2.5 percent in the current quarter, with GDP up 2.8 percent in 2010.
The unemployment rate is close to peaking and is projected to ease to 9.5 percent by the end of next year.
“The size of the U.S. budget deficit is a concern going forward, and carries the risk of higher inflation. At this point, that risk appears to be restrained,” Yun said. Inflation, as measured by the Consumer Price Index, is seen contracting 0.4 percent this year, then rising 1.6 percent in 2010. Inflation-adjusted disposable personal income is estimated to grow 0.4 percent this year and 1.2 percent next year.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year.”
A large consumer study being released later today, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.
Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0 percent over last year, and then are forecast to rise 13.6 percent to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.
New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.
The 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year. NAR’s housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.
“We’ve seen a steady downtrend in housing inventory for well over a year and home prices appears to be in the early stages of stabilizing. With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5 percent in 2010, but with wide geographic differences,” Yun said.
He expects growth in the U.S. gross domestic product to be at a pace of 2.5 percent in the current quarter, with GDP up 2.8 percent in 2010.
The unemployment rate is close to peaking and is projected to ease to 9.5 percent by the end of next year.
“The size of the U.S. budget deficit is a concern going forward, and carries the risk of higher inflation. At this point, that risk appears to be restrained,” Yun said. Inflation, as measured by the Consumer Price Index, is seen contracting 0.4 percent this year, then rising 1.6 percent in 2010. Inflation-adjusted disposable personal income is estimated to grow 0.4 percent this year and 1.2 percent next year.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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