Realtor Referrals

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1. Search on the web for distressed or foreclosed properties. Use a professional REALTOR to identify foreclosure deals for you. If you are searching the web on your own, keep in mind some of the information is outdated, some may be incorrect, and some properties are not even listed. A REALTOR can offer you the most current information available.

2. If you search yourself for distressed properties and purchase from the selling agent, in essence, the person being paid is an agent for the current owner, not you.

Make sure your interests are represented in the sale by working with your own Realtor. You won’t pay any more.

3. As with any real estate transaction, time is of the essence. Purchasers must close on the date specified by the agency, and cannot close after this without penalties of $25-200 per day.

4. Loan qualification takes 1-4 week. If you have been pre-approved for a loan, make sure you are qualified by your lender as soon as possible. If you are paying by cash, make certain funds are available. If finances are in order, the REALTOR will then submit an offer. When the offer is accepted by both seller and buyer, the REALTOR will submit the contract to the lender and closing agent.

5. If the property is in need of rehab or just in need of repair, always obtain 3-4 bids from different contractors, if you do not plan on doing the work yourself.  

6. If you plan to sell the property after rehabbing, or if you are planning to wholesale it, ask your REALTOR to research similar properties in the neighborhood to see what the current market value will be after the work is complete.

7. Keep good record!. Any expenses related to the purchase, repair, or maintenance of the property should be kept for tax purposes. Good record keeping is the key to a profitable real estate venture.

8. When you receive title on a distressed or foreclosed property it will be in the form of a special warranty deed rather than a general warranty deed. Don’t let this alarm you. The purchase of title insurance will protect you. Lenders purchase insurance to protect the loan as well. Consider using an attorney instead of a titling company as your closing agent. An attorney is only $50-75 more and can remedy any situation that may arise.

9. Don’t be alarmed by the special addendums and contracts required for distressed or Foreclosure properties, banks and the HUD office (where applicable), will require these documents.

10. Foreclosure properties are potentially very profitable, but require the most attention to detail. An experienced REALTOR would be highly recommended because of the mountain of paperwork that must be in order to submit a proper bid or proposal.

For More Information go to http://www.stlouiswholesalerehab.com or http://laurawunder.cbgundaker.com

Laura Wunder
http://www.articlesbase.com/ask-an-expert-articles/10-steps-to-a-successful-1st-time-real-estate-investment-transactions-688813.html

Trevor showed up at an open house party held by a local Realtor, Mary, for a new homebuyer. Several neighbors had dropped in for the welcoming event. A friend of the Title Company who had closed the loan for the new homeowner had invited Trevor to the gathering, as he was new in town and had stopped at the Title Company making inquires about future purchase business. Mary peeking out the window witnesses a sharply dressed middle aged man probably in his late 30s she surmised driving a brand new Mercedes. Upon entering, Trevor was dripping in bling with a huge Rolex watch, a heavy gold chain on his wrist and tailored suit that looked very expensive dressed out with a fine silk tie and a gold ring with an onyx setting bordered with small diamonds. It was a rare sight to see someone with French cuff links and a pleated white shirt. The light shinned off his carefully trimmed jet-black hair with a light amount of hair gel while showing good contrast with a deep tan. Mary noted that he was somewhat handsome man over six feet tall with a slight northeaster accent. He almost looked out of place but had an electric smile and a warm manner. There were about 20 people at the party. Introductions were made and Trevor indicated that he was involved in real estate investments. As small clusters of people gathered in various areas of the dining room and kitchen each sampling the bounty of passing dishes Trevor made his way from each group making small talk and further discussing the benefits of real estate investing with each. Betty Jane listening to the discussion appeared to be in deep thought. Finally, Betty Jane, a recent divorcee, asked Trevor if it was a good time to invest. Trevor turned his sharp focus in Betty Jane’s direction. Betty Jane was a friend of the new homebuyer and had used the same Realtor and Title closer on her loan and purchase twelve months ago. She had a comfort level with the professionals in the room. Betty Jane finally indicated to Trevor that she had recently became interested in finding property that would give good cash flow over something other than she was getting in CDs at the bank. Trevor engaged her further. A lengthy discussion followed. Numbers and information was exchanged. The game was on.

Betty Jane had excellent credit and was a professional marketing manager in her own right and had assets in the bank as well as a full investment portfolio which was just barely going sideways with the recent market climate. She wasn’t losing any money, but she wasn’t making much either. While at work Trevor called to make small talk and inquire as to the depth of Betty Jane’s commitment to find a good investment property.

A week passed and Trevor called Betty Jane to indicate that he might have something on the radar in the way of a stellar investment but would check it out fully before bothering her with anything that would not be in her best interest.

A few days later, Trevor called to say he had found a property but after doing a careful due diligence found the property had a termite problem. Likewise the owner wasn’t forthcoming about a settling problem of unstable soil in the neighbors house which could effect the for sale property so he rejected that possibility but was still looking for other opportunities. Trevor explained that he ran in different investment circles and was able to locate properties with extremely motivated seller’s who would listen to offers. Trevor’s stock began to rise.

A week later, Trevor called Betty Jane regarding an incredible deal that he had found and wanted to show the property to her with the listing Realtor. Since this was an exclusive property other Realtors were not being invited to sell it. The property was vacant and needed some improvements to bring it up to the neighborhood standards but had great square footage and otherwise in good structural condition. Betty Jane saw the potential and many of the homes in the area were selling in excess of $400,000.

Incredibly, Trevor called Betty Jane and indicated that he was in contact with a national writer who was looking for a large home in the area while he studied research material in the historical archives at the University in the area of Indian culture. This was to be the first in a series of three books, which would take some ten years to complete. It was a fiction based but needed to be factual in the background information. He wanted to lease with an option to buy a home similar to what Trevor was touting to Betty Jane but wanted some specific remodeling completed before moving in. The author wanted to remain below the radar and wanted to use a third party intermediary to negotiate and protect his identity. In this case, it was the author’s business manager. Trevor met with Betty Jane and showed her the agreement. Remarkably the terms included paying $5,000 per month including all utilities and deposits, and Trevor showed Betty Jane a cashiers check for $12,000 representing the first and last month’s rent and $2,000 option money. The option price was set at $600,000 or appraised value in three years. The improvements would certainly make the property worth a lot more, Betty Jane reasoned. The stipulation of the lease-option was that the property had to be remodeled to meet the specifications of the anonymous author who demanded secrecy, security, and floor plan modifications with a new kitchen as the author professed to be a gourmet cook. Trevor showed Betty Jane a virtual plan of the remodeled property that the author had agreed to in the lease option agreement. Trevor went on to explain the author was demanding autonomy and did not want any publicity while he worked on his next series of books. For that reason a high security fence was to be built in the back to shield him from prying eyes. Trevor’s contractor connection had already bid the property construction work out at $85,000. However, to take care of this opportunity, Betty Jane would need to move quickly to lock up this rare deal. The sales price was set at the appraised price of $425,000.00. This was about $40,000 more than the closest comparable but there was this great lease option and there were improvements to be made. Betty Jane decided to go ahead. With Betty Jane’s excellent credit she was able to get a 90% Combined Loan To Value with an 80% first of $340,000 at 6.5% and 10% LTV second mortgage of $42,500 at 8%. The total payment was $2,149.03/month on the first mortgage and $311.85 on the second for a total principal and interest payment of $2,149.03 + $311.85 = $2,460.88/month plus $390/month in taxes and $280/month insurance for a total payment of $3,130.88/month. And even with paying the utilities budgeted at $800/month including lawn care and maintenance that would still leave approximately $3,130.88 + $800 = $3,930.88 outgo with $5,000 in rent would give $1,069.12/month in estimated cash flow each month. With a 10% down payment of $42,500 and $8,000 in closing cost Betty Jane’s total investment was now $50,500 for which she figured she would get $12,829.44/$50,500 = 25.40% Return On Equity. Trevor showed her with the depreciation with land value backed out at $100,000 the improvement remainder of $325,000/27.5 years = $11,818.18/year in depreciation. The interest deduction would amount to $22,100 on the first mortgage and $3,400.00 on the second mortgage for a total deduction of $25,500. This would make for depreciation deduction of $11,818.18/year plus $25,500 the first years interest for a grand total of $37,318 to offset the rental income. The future appreciation and option exercise price Trevor demonstrated to Betty Jane was a situation investors dreamed about.

With the improvements the Return on Equity was now at 9.94%. The only thing Betty Jane needed to do was to arrange for the $85,000 construction funds to make the improvements on the purchase. For this Betty Jane took out a Home Equity Line Of Credit on her personal residence. All the mortgages and the closing were completed in three weeks from start to finish. The appraiser had to supply some additional comparables with notes of the impending improvements the lender signed off. The closing was held at a Title company of the seller’s and Trevor’s choosing. Betty Jane received the signed Lease Option Agreement with the $12,000 check from the author’s business manager and she wrote a check out to the construction company which promised to complete all the work in two weeks and thus needed the entire $85,000 up front. This she gave to Trevor. On the closing statement was a $40,000 amount paid from the seller’s side payable to Trevor for contract assignment and consulting. Trevor indicated to Betty Jane that this was normal and customary in his investment practice and at any rate he reinforced to her that since she was getting such a great deal she shouldn’t mind sharing some of the profits. Besides, the seller was paying for it. Closing went on and Betty Jane was the proud owner of the property to be leased to a famous author.

The contractors failed to show up on Monday as planned. Betty Jane called Trevor. The phone was disconnected. She called again. Disconnected. In a panic, Betty Jane called the original Title person, Patricia, who closed on her home loan and had made the introduction at the open house to find out if she had heard from Trevor. She stated that the last time she had seen Trevor was at the Open House but she asked why she was trying to find Trevor. Betty Jane told the story. There was dead silence on the other end of the line. Patricia took a deep breath and shared with Betty Jane that she may be a victim of fraud. Betty Jane broke down and cried. Patricia insisted that Betty Jane call the FBI and tell her story. Agent Ryan showed up at Betty Jane’s home and they went through all the details. Agent Ryan had been chasing this con man for over a year now. As the facts were revealed, the appraiser in conjunction with the Title Company by using two closing statements, one for the bank and one for the seller had all participated in perpetrating this fraud on Betty Jane. Agent Ryan shared that “Trevor” had closed three other deals on the same day and left town. The house was actually worth about $375,000 and needed work. “Trevor” had received $85,000 from Betty Jane and another $40,000 from the Title company for a total score of $125,000. The $12,000 check Betty Jane received bounced and was worthless. Betty Jane was left with a property worth less than $50,000 from what she paid for it. The market rents were only $2,000 per month if that. Now Betty Jane had a $3,130.88 plus a Home Equity Line Of Credit payment on her personal resident of $653.58/month with a massive shortfall to look at each month.

To cut the bleeding Betty Jane with her Realtor friend spiffed the property up as much as possible with paint and cosmetics and was able to sell the property for a little less than the mortgage. Betty Jane made up the difference out of the pocket. Betty Jane’s attorney sued the Title Company and the appraiser along with the participating Realtor and they have yet to go to court. This transaction had the potential to destroy Betty Jane’s excellent credit. It was a strain.

Agent Ryan, using a group picture from the open house party put out fresh photos of “Trevor” and two weeks later he was captured and charged with mortgage fraud among a litany of other charges. He still had some of the remainder cash but there were lots of people after their money and Betty Jane had little hope of getting all her money back. She was now, a lot wiser however.

Eventually, she did back in the real estate game with a team of good people and is slowly winning her way back.

Like any investment there are things to look for. If it sounds too good to be true, it probably is.

It’s always advisable to have an attorney at your side during negotiations and at closing. Get all the facts. Deal with established companies and brokers well known and long experienced in the community. Someone new in town just showing up is a red flag. Anyone can independently verify values. Start with the local assessor and work it from there. One can look very closely at the title history with one’s attorney to see if it’s a flip property or anything else that may not look right. One needs to take their time and not be rushed into these “great deals”. If you happen to miss one, there will be another coming along soon. Keeping the powder dry allows one to do something another day.

Dale Rogers

www.brokencredit.com

www.sellerhelpsbuyer.com

All rights reserved. Article may be reprinted as long as the content remains intact, unchanged, and all links remain active.

Dale Rogers
http://www.articlesbase.com/mortgage-articles/the-mark-is-selectedthe-fix-is-insting-underway-93332.html

Finding the right representation when selling your home can be a job in itself. There is such a remarkable number of agents and other methods of selling your home these days, how can you be sure that you choose the right one? Hopefully this article will give you some good basic info that will assist in the choice. Essentially you have two basic choices, selling the home yourself or using a realtor.

Selling your home yourself is a dicey choice at best. You will not be able to match the level of service that’s provided by a realtor. The home sales process is a complicated one, its also a full time job, so if you have a job yourself, then you will not be able to dedicate the necessary time to your sale. Also you cannot equal the amount of advertising and media coverage that a realtor can provide. This is possibly the most important aspect of a sale, letting people know that the home is available and all the wonderful assets that it has. If it’s not general knowledge that your home is for sale then the chances of it selling are severely limited.

A realtor can provide all these things and more, but with so many Realtors available; how can you be sure you have the right one? Hiring a Realtor is like conducting a job interview. The successful candidate will have all the right skills to do the job in a timely and professional manner. Don’t be afraid to ask the agents what they will do to sell your home, in detail. The more comprehensive their business plan, the better your home’s chances of selling. Look for a well developed marketing plan and be sure that they are available and reachable at all times. In choosing a representative for your home its essential to have someone with a good reputation and track record. Never hesitate to ask for references and be wary of someone who can’t or seems reluctant to provide them. References are the hallmark of a good agent and are a real indication of their ability.

Lane Hornung
http://www.articlesbase.com/real-estate-articles/getting-the-right-representation-selling-140245.html

Lately we have all become more curious about interest rates and the effect they have on our lives. Our main interest, of course, is to get the most for our money, and as most of us borrow money for a house purchase, part of this involves finding a good interest rate for our mortgage loan.

Many of us who are shopping around for financing are not strong enough about negotiating a lower interest rate. Perhaps we feel that we are not in a position of strength, but in fact, we often represent hard cash to the person negotiating the deal for us.

In many cases, this person will be a mortgage broker. The different types of mortgages vary so much that one short article cannot explain them all. However, once the mortgage broker knows all the facts about your finances. then he/she will know the best type of company to place you with.

If you are unable to get financing from your bank, there are still options out there. Folks who have a less than perfect credit rating can often still find mortgages through a broker. There are also such things as an equity mortgage, this is where you can use an existing property to raise money for a second property. Your broker can help you with many different scenarios.

In the case of house buying, your realtor will often be able to recommend a broker. Sometimes the recommended broker will go the extra mile to try and get you the financing, because he has a deal with the realtor to get a small percentage of the commission on the sale. This is a logical step for the realtor, as a house sale will often fall through because of the financing and then the Realtor loses the deal.

It is in your favor to have a broker who is pulling out all the stops, so it is worth trying a broker recommended by the realtor, as well as one you may have in mind. The broker’s fee is paid by the finance company who eventually finance you, so having more than one working for you is not uncommon.

The interest rate is negotiable right up to the moment of preparing the document for signing. Your mortgage broker can go back to the financier at any time. Even one quarter of a percent will save you hundreds of dollars.

Some advice from a group of independent mortgage experts reads as follows: When dealing with your lender, it is advisable to have the same steely determination as you would when dealing with a used car salesman!

Lee Cameron
http://www.articlesbase.com/mortgage-articles/the-interest-in-interest-rates-280864.html

The term foreclosure refers to the circumstances, which arise due to the nonpayment of loan to the lender. When the borrower failed to pay back the money borrowed to the lender, then the lender will transfer the ownership of house property to him. The foreclosure arises when the owner of the property failed to make payment to the lender, the property will be seized. Losing the house property for not paying of foreclosure is a ridiculous task. Some steps can be followed to avoid foreclosure. There are so many alternatives available to avoid foreclosure.

Foreclosure Involves Many Stages

Stopping foreclosure is not the difficult process. There are several stages involves to pay off the current loan and avoid foreclosure. When the owner failed to pay money for a long period say 5 to 6 months then the lender ask to obtain a notice from the county record office. This notice will make the borrower to face the foreclosure and starts with replacement period.

If the borrower fails to correct the foreclosure within few months, say three months then foreclosure date for sale will be intimated. The notice of sale will be issued to the homeowner and this notice will be posted on the property. The notice of sale will recorded in the county record office and also published in the newspaper.

The foreclosure occurs where the property is located. In the notice of sale the time and location of the foreclosure will be properly designed. In the sale, the property is auctioned to the highest bidder.

Foreclosure Auction

In the auction the opening bid for the property is foreclosed by the foreclosing lender. The opening bid will be equivalent to the outstanding loan, interest accrued, additional fees and attorney fees related with the trustee sale. Compared to the opening bid, if no bid is higher than the property, the property will be purchased by the attorney who conducts the sale for the lender. The property will be deemed as REO if the opening bid is not met. It occurs because many of the properties listed for sale at the foreclosure auctions are worth less than the total amount payable to the lender. When a property has been purchased in the foreclosure auction sale, all small liens other than the property taxes will be swabbed out. The priority of lien will be determined by the date of recording.

Buying Homes On Foreclosure

Buying homes on foreclosure is said to be good purchase. If you are interested to buy a property on foreclosure, then you can search either on online or through professional realtor.

1. Search the foreclosed property either on online or through a professional realtor. The realtor will help you to find a successful foreclosed property. The realtor may always be updated with the real estate information.

2. If you are searching a foreclosure property through a selling agent you have to pay a commission to him at the time of purchase. But if you obtain a foreclosed property through a Realtor you need not want to pay commission and find good foreclosed property.

3. Time is essential for purchase of foreclosure property. If you are paying for a foreclosure property through a loan or through cash, maintain proper records.

4. While purchasing a foreclosed property obtain some few bids from different contractor to estimate the cost.

5. If the property is going to be sold in the market, then ask the realtor to estimate the market value of the property going to be sold.

6. Additional cost or maintenance cost can be estimated to the tax department to get exemption or deduction.

7. After purchase of the foreclosed property, the purchaser receives the title under the special warranty deed. This title protects the buyer. Each lender obtains an insurance protection from the loan.

8. Foreclosure properties are highly profitable. But it requires more alertness while collecting details. The experienced realtor will handle the situation more carefully.

Ron Victor
http://www.articlesbase.com/loans-articles/stop-foreclosure-we-buy-houses-95552.html

Purchasing your first home is a big step that comes with some serious decisions. When you rent, instead of own, you are just buying the home for your landlord. Buying a home today is so easy there is no reason to wait, especially since home prices have come down. But, hurry! They are beginning to increase due to buyers rushing to get into the market at the lowest prices. Mortgage rates are also good, so the time is now. Here are some tips to get you started.

Before You Begin, Ask Yourself . . .

Will you live in the home for at least 3 years? If the answer is yes, then buy now. You can break even selling after 2 years the way that homes appreciate in this area, so moving anytime after 2 years is profitable for you. Considering tax advantages, you will more than break even; and, you can write off real estate taxes and the mortgage interest. Rent payments are generally the same as your mortgage payment, so it really doesn’t cost you.

No Down Payment!

Did you know you can buy a home with no money down? Mortgage companies are eager to loan you money if you have good credit and your salary justifies the loan payment. Don’t believe it if you are told you need a big down payment to buy a home . . . that is yesterday’s thinking.

Get Pre-Qualified

This is an easy process. Just call a mortgage company and discuss your situation. You can call your present bank or a mortgage Broker. Ask friends or family for a personal referral. Use someone with a good reputation. Interviewing lenders can be done over the phone, so interview a couple to find the right one for you. Besides asking the current rate, ask about closing costs. Once you select your lender, meet with them personally and get a pre-qualification letter that spells out what you can invest, interest rate and closing cost. You will now use this letter to shop for a home.

Consult a Real Estate Professional ASAP

The most important person in this transaction is the Realtor that you use. Be selective on how to choose your Realtor. Look on the web to find some possibilities. Do not just use the first one you come into contact with. Talk to a few and meet in person with a couple of agents before you look at homes. Make sure your agent sold at least 50 homes in the last year. Anything less than that means you are working with a new agent or one that does not have the experience that will best serve you. This agent represents you, so the agent you choose needs to know the area, have a lot of experience negotiating, and be committed to finding the best home and neighborhood that will meet your needs.

Make a list of “Must Haves” & “Wants”

It’s very important your Realtor know your criteria in order to find homes that meet your needs. You can go to www.Realtor.com to view homes that fit your specifications. This will give you an idea as to what is possible in your price range and in the location you want. Once again, select your Realtor right away so if you become interested in new construction your agent can negotiate for you. You do not want to not be represented by a Realtor when you are purchasing your first home. This is very risky because this is a complicated purchase and no representation puts you at a major disadvantage.

Make a Decision

Once you find the best home that meets your needs, take action. Homebuyers often hesitate and this could mean you miss the best home that meets your needs. If you have chosen a good mortgage broker and a good Realtor, you should have the facts to make the right decision.

The time is right to buy your first home, so do not wait. If you have the right team of professionals assisting you, it is an easy, wise and exciting process!

Kris Kombrink
http://www.articlesbase.com/real-estate-articles/tips-for-firsttime-home-buyers-101365.html

Q: Does routine forced reduction of Realtor short sale commissions by Banks
amount to a form of extortion that falls under the RICO ACT?

Suppose we have a small group of powerful bosses whose names, by
coincidence, all end in a vowel (Fargo, Chase, B of A, etc).
They target a small class of defenseless business people (Realtors) in a
very distressed neighborhood (Las Vegas, or your home town). 

These people already owe the bosses a lot of money (on 1st and 2nd mortgages & HELOCS), so the bosses proceed to syphon off half of their business (REO listings = the
majority of closed transactions each month) and give that business only to
those who the bosses directly control (A very small group of
REO listing agents.  Bank of America recently said they added only 3 realtors
to their REO approved list in 2009 IN THE ENTIRE U.S. and NONE in NV; to
get on the list one needs a year’s experience in REO sales; tough to do if
you don’t already have REO listings. Didn’t our tax money bail them out? Shouldn’t they spread these real estate jobs around a little? Why, no! That would be … inconvenient.)

The bosses further squeeze the business people’s income on what is left  (By reducing short sale commissions by 25-33% routinely and often refusing to
approve the final HUD 1 closing statement unless “someone,” usually the Realtor, agrees
to pay for additional items on the HUD per bank demands at the 11th hour) and they keep it for themselves. The bosses have the peoples’ main industry (real estate) by the throat (Banks control REO sales, approve all short sales, and loan the money to any non-cash buyers).
When, due to declining income, the business people (Realtors) can’t pay back their
loans, the bosses take their houses and sell them at current discount
prices (in Las Vegas, Feb 2010 avg price is roughly 80% below Feb 2006). The business men lose whatever equity they paid down (5 to 20% at 2006 prices) and the bosses keep that for themselves, too. And then they come after the people for the deficiency at the old inflated prices, demanding payment despite the fact that the bosses have intentionally damaged their ability to pay.  (Q: Didn’t the bank make an implied promise under Equity Law NOT to damage their barrowers ability to repay the loan?)

This “routine reduction” applies to hundreds of short sale transactions each month in Las Vegas alone.  When Realtor income is down by 60-75% already, it feels like a systematic shake down. The bank is not actually a party to the short sale contract -  it is
merely a beneficiary of the closing. The Realtor can’t say no to a commission reduction without losing his entire commission.  If he refuses, the bank has a “gun to the head” of the transaction.  If the transaction does not close, the bank gets the property anyway via foreclosure. If the Realtor stands up for his rights, he may breach of his fiduciary duty to his client.  The bank order is an offer he can’t refuse because of FEAR of greater loss.

The commssion is reduced by an order called a “short sale approval” that arrives on
bank letterhead, signed by a bank officer,  and 100% of that amount is retained by the bank. For the Realtor, it’s death by a thousand cuts.

To make the math easy, let’s suppose a Commission of 6% (split between listing and selling agent) on a $100,000 short sale house is reduced by a bank to 4% = a $2000 reduction.
Multiply this by 569 Las Vegas short sale transactions in January, 2010 = $1,380,000 in additional bank profits in one month.  At this rate, the 4822 short sales closed in Las vegas in the past 12 months = roughly $9.6 Million in lost Realtor income in Las Vegas alone, all taken from the people who can least afford it. The average price per residence was actually $140,000 for the same period, so the $ amount is probably considerably higher. Multiply this by every city across the country and you know where the bank CEO bonuses come from. (GLVAR data)

It’s a lot of money.  Tony Soprano would be proud.

Grant House

Finance in America has a long history of criminals—men and women who use deception to turn profits. Today that seems especially apparent, with headlines routinely announcing one swindle after another. Paranoia and distrust from this news is sewn into the public’s mindset. Couple that with an unstable economy and a grim financial situation emerges.

The real estate market in the past 10 years had had an important role in developing these trends. The current state of the economy is largely due to the subprime mortgage crisis. It’s understandable then if homebuyers want to know more about realtors.

Transparency is a positive thing in business. It allows involved parties to understand and accept another’s motivation and goals. It fosters stronger relationships and develops lasting success. But business also employs cloak and dagger tactics. Nobody wants to give away too much information. Nor do they want to appear vulnerable, greedy, naïve or overzealous. In this regard, transparency is anathema to business.

Real estate, for most part, involves a buyer and a seller. Let’s focus on residential property. A buyer contacts a realtor and expresses interest in a home. The realtor describes the home, shows it, and works with the buyer. Easy, right?

The buyer understands the realtor is trying to sell him something. It is a conditional agreement that when a realtor shows a home he is trying to sell it. The buyer knows this, listens to the realtor, looks at the home, and then decides.

The realtor makes money from a sale. It’s no surprise, then, that realtors work hard to sell property. The trouble starts when bonuses and financial incentives motivate Realtors to distort the facts. If a realtor has an incentive to sell a home for a price that he knows the homes is not worth, chances are, especially in a difficult market, that he’ll do it. This makes potential buyers suspicious. And it spurs action.

In Charlotte, realtors were recently pressed to allow buyers access to their financial interests in selling a home.

The Charlotte Observer ran an article.

“We want to go over and look at it again,” said commission member Marsha Jordan, owner of Apple Realty in Lincolnton, speaking of the rule.

Jordan said colleagues around the state had expressed concern about having to reveal to clients what they make beyond the standard commission that’s recorded on a buyer’s agency agreement.

She and commission chairman Skip Alston, owner of a Greensboro real estate company, denied that the nine-member commission, which is made up mostly of real estate professionals, was putting their colleagues interests’ ahead of consumers.

It’s plain to see people are wary. The best way to promote better relationships between Realtors and buyers is transparency. When a buyer understands where a seller’s motivations are, he feels more comfortable with the experience. But at the end of the day, buyers and sellers need to recognize that real estate is a business, and people are trying to make money.

American history is full of financial criminals. It is also full of trustworthy business people. It’s time to flush out the criminals and focus on developing a healthy economy through hard work and trust.

michaelrussell
http://www.articlesbase.com/sales-articles/charlotte-real-estate-an-issue-of-trust-725565.html