Recently a hard working buyer’s agent learned that the Realtor’s “Code of Ethics and Standard of Practice” is not always a precedent to all Realtor’s, even the so called “Top Producing Agents”.
The buyer’s agent showed a home to her buyer in September listed with a 10% commission. In October they verbally negotiated and the offer was accepted in November. In beginning of December the commission disbursement was released and the buyer’s agent realized that her commission was only 3%. When the buyer’s agent approached the The Top Producing “Super Agent” about the discrepancy, she indicated the commission was changed prior to the offer being fully executed. Within the code of ethics she should have disclosed to the buyer’s agent that the commission was being reduced during the verbal negotiations. Unfortunately these types of agents, top-producers or not, rely on undisclosed actions & paper work technicalities for monetary gain, over their pledged oath of “doing the right thing”.
What transpired was the listing agent’s listing expired at the end of October. Upon re-listing she changed the commission to 3% without notifying the buyer’s agent.
Though an ethical violation of our pledged Realtor oath, legally the listing agent is able to do this.
Here are a 3 practices that may prevent you from this type of situation when dealing with commission switches on the Multiple Listing Service.
First when writing an offer add the commission stated on Multiple Listing Service in the contract.
Second always submit the Active MLS print out with the commission you expect to receive.
Thirdly when opening escrow immediately ask the escrow company for a commission disbursement so that you can verify your compensation.
Written by “eClosed”
This video is for people selling their property by owner. It explains how to use the Internet generally, and the Multiple Listing specifically, to reach a wide audience of prospective buyers while saving thousands on real estate commissions. Feel free to call us if you have any questions 619 861 6307.
Homes: Most affordable in 2 decades
According to several recent studies, homes are more affordable nationwide than they have been in many years, enabling many buyers who previously might have been priced out of the market to become homeowners.
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A short sale may not mean you’re home free
Some homeowners who sell their homes through short sales are finding their mortgage companies still try to
collect some or all of the difference between the bank-approved short-sale price and the outstanding
mortgage balance. Some mortgage companies also are taking legal action to recover unpaid amounts after
a foreclosure is completed.
KEEP THIS IN MIND
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A lender tactic gaining popularity is for the holders of mortgages or home-equity loans to require
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Short sales and foreclosures that occur after April 1, due to the “current economic environment,”
according to an official with the company.
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Not all borrowers who sell their homes through a short sale or lose their homes to foreclosure will
receive a deficiency claim. Often, mortgage companies don’t try to collect unpaid amounts either
because state laws prohibit or limit such actions or the cost outweighs the potential return.
California has anti-deficiency rules that prohibit lenders from pursuing borrowers after foreclosure,
but California does not have anti-deficiency rules for a short sale.
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The borrower’s situation often is the determining factor in whether the lender tries to collect the
unpaid debt or not. The borrower’s employment status, assets, whether the home was purchased
as an investment, and the amount of debt owed are taken into consideration.
It is important that sellers are informed of the lenders requirements, read the fine print, and ask
questions when selling their home via a short sale. According to one real estate attorney who
represents financially troubled homeowners, every short sale she has worked with has had a
promissory note or terms giving the lender the right to collect a deficiency. Often, the terms are
buried in the sale contract, according to the attorney.
To read the full story, please click here:
http://online.wsj.com/article/SB124104990739271023.html
Printed in The Wall Street Journal, Page D1 (April, 30th 2009) By Ruth Simon
The power of the Multiple Listing Service has become even more powerful and essential tool for non distressed homes sales in this current market. The majority of listing on the MLS are REO, Approved short sales and awaiting short sale approvals. Many agent are quickly learning that Short sales can take months before they are approved and the majority are not closing. Banks are refusing to sign paper work until the day of closing, giving themselves the opportunity to walk away from a deal at any time.
eClosed.com just listed two regular listings this week and both received offers with in days. If you price your home right agents will bring offers to your home first as they know they will be dealing with a seller directly and not a bank or short sale approval.
Just like in any industry there are going to be professional and unprofessional companies in the industry. In the real estate flat fee sector you will most probably find the same. eClosed.com has worked in the industry with over 20 years of experience. All of our employees are licensed Realtors and are experienced in both selling and buying of real estate.
eClosed.com is not in the business of just placing a home on the MLS. We work with our clients to prepare a sales plan, and as active agents we are knowledgeable in the market. We provide services ranging from our basic package all the way to full representation for 1%, to effectively negotiate and close your escrow. With any package you will always receive phones support, to our direct cell phone numbers, to ensure you will always have your questions answered to help you get your home sold.
eClosed.com has built our company through our philosophy of communication as the number one priority in a successful home sale.
Mortgage Backed-Securities have become a major cause of the recent collapse of Wall Street Institutions. The cause is very intricate and the solutions will be even more important and difficult. The different variables in how this is all tied together with mortgages is varied and complex. To get a better understanding visit this link below to get a generalized explanation of the relationship of loan types and the the securities they are tied to.
For more information on Fannie and Freddie Mac click on the link below. In the video C.A.R. Executive Vice President, Joel Singer explains why Fannie and Freddie matter to the consumer. He explains the confusing role Fannie and Freddie Mac play in the housing market.
http://www.car.org/newsstand/video-js-gse/
http://www.pe.com/business/local/stories/PE_Biz_S_dataquick19.3e7c8f3.html#
The market is very vulnerable in Southern California. Waiting until next year to sell your home, may lead to a lower sales price. Every neighborhood is experiencing different changes, but over all the market it adjusting to the spike in values we have seen, to return to a normal market. Short sales and foreclosures are the leading factors, reducing values and returning prices back down.
