Roland's Blog: November 2009

Is It Wrong to Work With More Then One Realtor?

Home buyer: " Is it wrong to work with more then one Realtor at the same time? I'm trying to follow proper home-buying etiquette. My friends tell me it's O.k. as long as I keep track of which Realtor showed which property. That way, if you end up purchasing, the correct Realtor is compensated. I've not signed any exclusive contracts with any Realtor.

Is it OK as long as I make sure both Realtors realize I'm working with another agent as well? Some people have told me that Realtors know customers might be working with others, and it's not a big deal."

                                                   

Isn't that a good question? As a Realtor,  I definitely have a 'biased' perpective and answer to that question.  But since the question involves 'working with a Realtor' - who better to answer it? :) 

1.)Yes - if you're working with Realtor's in two different Cities - where each has their own area of expertise! Go ahead and Use 2 Different Realtors! As a matter of fact your local Realtor can probably refer you to a Realtor in the city you're moving to.

2.)If you are Selling Your Home and Buying again - it is possible to work with a Listing Agent to sell your home and a Buyer's Agent in the purchase of your new home.  Often these 2 Realtors can even be a part of a team where they tag-team each other.

More importantly however, is the Buyer asking about this from a legal or moral/ethical perspective?

First of all I want to say that Real Estate Associations in each Province and State have their own rules.  There used to be 'threshold' rights in British Columbia.  This is where the Realtor who introduces you to the house - is the Realtor who gets the commission.  However it's not so cut and dried anymore.

If you signed a Buyer's Agency Agreement - then you are under 'contract' to work with that and only that Realtor.  If for some reason you choose not to - then your new Realtor may very well end up getting paid by YOU or not at all!  And YOU will be breaching a contract to work with another agent. This can get ugly ... and no one wants "ugly" ...

However if you have No Contract - Let  me Tell you You some Reasons Why it is NOT a good idea to work with more then One Realtor!

Home Buyers often call on signs and advertisements and talk with MANY real estate agents until they find a home that they want to buy ... and then just work with the listing agent to buy the home. Sometimes this is not a good idea, as the home buyer may not get the best deal if  the listing agent is looking out for the best interest of the seller ... not the buyer.

Or the Buyer may work with several different Buyer Agents to see who will find them the best deal. This is ALSO not a very good idea for a couple reasons ...

 

                               

1.  First of all all Agents have the same access to the same homes for sale via the local MLS.  They all have the potential of finding the "best deal".

However Agents only get paid when they successfully find a home for a home buyer ... and it closes. All the up front work of finding the home is done without pay and in good faith that the home buyer that they are working with is using them to represent them. If a home buyer is not disclosing that they are potentially working with other agents, then the Buyer Agent does not have the ability to fairly weigh out the situation and determine whether or not they want to work with that home buyer.

There Are some exceptions though:

1. If a home buyer wants to work with more than one agent (for whatever reason), the right thing to do is to NOT sign a Buyer Agency Agreement and to notify each agent of this decision.
2. If a home buyer is considering buying different types of property or different areas, they may consider hiring an "expert" for each area. 
3. If you're still not sure and don't know if you will like being 'married' to just one agent - Consider  signing a week long Buyer Agency agreement - If after that week, the agent is not a good fit, then the home buyer can move on and find a new agent. Win Win right?

Finding ONE agent to work with is generally going to be your best bet.

  

                                             

 

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz  Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.     

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos by Liz Moras ( except the one's I'm in!). All information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive.  It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd..   

                               

 

 

December 1st, The FTC, Testimonials and your Blog/New Media

December 1, 2009 is the date your blog and all new media advertising meets new enforcement and scrutiny. Meet the Federal Trade Commission 16 CFR Part 255 "Guides Concerning the Use of Endorsements and Testimonials in Advertising". Much of the "guide" applies to celebrity endorsements and the use of "disclaimers" such as those which say "results not typical".

The word "endorsement" is used 188 times in 16 CFR 255 and the word "testimonial" is used 92 times. Where the real danger comes in, of course, is if someone complains to the FTC about something they read on your blog, Facebook, Posterous or any other New Media outlet. You and I, reader, both know there are "testimonials" even here on AR which are not even from real customers or are using real customer's names but they have no idea those testimonials exist. That is the focus of 16 CFR 255 in addition to endorsements and testimonials on late night television.

It has been noted that it is difficult to determine how much deception actually occurs from false testimonials and I am sure it would be very difficult and costly to prove a violation of FTC regulations on a small basis for individual blogs. The best way to avoid violations is to solicit testimonials from your clients that you can keep on file or to use a third party company like iKarma for example.

Thanks to Jeff Link for pointing out the more English short segment FTC REVISED Guides Concerning the Use of Endorsements and Testimonials in Advertising.

 

Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683

Excuse me BofA! You CAN NOT have it both ways!

 I refinanced a loan this week for some past clients.  I did their purchase loan in 2005.  We did an 80-15-5 because they had another home that had not closed yet.  The 15% second was a home equity line of credit.  Their previous home sold and they paid off the 15% second in March of 2006.  They never drew another dime on the equity line.

 

June 2008: 
They received a letter from Countrywide telling them their 0 balance equity line was frozen.  They were not allowed to take any draws on the line because the value had decreased.  No problem for them.  They weren't using the line anyway.

Like lots of other people, the equity in their home has evaporated but current rates are still better than what they had on their first so we put together a Freddie Relief refinance - a great deal for them.  We are able to drop their payment $200+ per month and because they didn't have PMI on the original loan, there is no PMI on the refinance even though their LTV is now 95%.

October 2009:
Bank of America (aka Countrywide) rears its ugly head!  There had never been a Deed of Release recorded for the "no longer usable" home equity line of credit.  The title company received a notice from BofA that there would be a $350 Early Termination Fee in order to do the Deed of Release.  Early Termination Fee?  On a line of credit they were no longer allowed to use? 

Really??  This Early Termination Fee showing on the HUD1 would prevent them from completing the Freddie Relief refinance.

My client took BofA the statement from March 1996 showing where they had paid it off.  She took them the letter from June 2008 saying they no longer had a home equity line of credit.  She took them the statement showing the $350 Early Termination Fee.  She asked them how in the world they could expect an Early Termination Fee when they were the ones who terminated the line.  BofA's response - "We didn't close the line.  We just won't let you use it." My client spent over an hour discussing this with the Wizards of BofA.  At one point they actually told her "if you do your refinance with us we may consider waiving the fee". 

Really??  My client told the Wizards of BofA "either this fee gets waived and you allow the title company to record a Deed of Release or I will go to the Attorney General and see what they think!  You CAN NOT have it both ways!  I didn't terminate the equity line - you did." 

Guess what?  She got it!  Refinance paperwork is all signed - we will record and fund on Monday.

BofA - what are you thinking?  How many other people are you pulling this stunt on?

 

Jane Penttinen, Sr. Loan Officer

Sunstreet Mortgage, LLC

520-547-4150

If you, your friends or family require the services of a mortgage professional, please don't hesitate to call me.  I am never too busy for any of your referrals.

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