Cedar Rapids, IA

After yesterday's spectacular Super Bowl Victory, the city of New Orleans shone brighter than it has in years. The city's residents had a reason to celebrate, to believe in something larger than themselves, and to move out of the shadows of the tragedy that has darkened the streets of the city for nearly five years.

I can't help but be reminded of the classic work of literature by Charles Dickens, A Tale of Two Cities. In the opening passage it seems we have a perfect description of the city of New Orleans- on both it's darkest day and it's brightest. One place on earth that has seen the best of times, and the worst.

While the celebrations and parties continue now through the Mardi Gras season, don't be fooled. New Orleans is still struggling to recover from the hurricane, the gross mishandling of aid money and efforts, the desperate and violent acts of its victims, and the subsequent lost revenue from tourism.

Americans have a short attention span, but have proved numerous times that we also have the power to do tremendous good during that short time. What we need to work on as a nation is keeping our energy and efforts focused on seeing devastated communities through the entire recovery and rebuilding process. It is long, it is difficult, it is thankless at times, and it is critical.

Communities in our nation, and around the world, continue to struggle to rebuild and recover after various disasters. My own city of Cedar Rapids was devestated by a flood in June of 2008, and it only takes a five minute drive to the downtown area to get a rude awakening and reminder of the hardships many still endure.

A heartfelt congratulations to the Saints, and the people of New Orleans!

Unless you work in the real estate industry or have extensive experience buying and selling properties, it is likely that you don't understand exactly how real estate agents are paid. Where do all of the commissions go? Often times, people avoid contacting a real estate agent in an attempt to avoid paying a commission. This is due to an unfortunate misconception. While every situation is unique, the likelihood is that having an agent on your side will only benefit you and help save you money in the end.

For example, did you know that using a realtor as a buyer costs you nothing? That's right... our services are free to home buyers! In fact, being represented properly by a real estate professional can actually help you save money by negotiating the best deal on your behalf, and guiding you through the process to help avoid common pitfalls (that could end up costing you a lot of money). Your agent will be compensated by the seller only after you find a home, make an accepted offer, and close the transaction.

Home sellers contract a realtor to list their home for a pre-determined commission rate. Sellers pay nothing until they accept an offer on their home and close the transaction. The commission is then taken from the proceeds of their home's sale, and distributed accordingly. This means that if your home does not sell, or if you decided to take it off the market for any reason, you do not pay us anything. See below for a simple example of how a commission is split. We only get paid when we get the job done!

•· Home sale price of $100,000 with a 6% commission rate = $6,000 total

•· Selling agent commission 3%= $3,000 (agent brings qualified buyer to the home for sale, facilitates financing, inspections, etc)

•· Listing agent 3%= $3,000 (markets home for sale through various print & internet media, holds open houses, distributes marketing materials, etc)

•· Each agent then must split their earned commission with their broker. The broker keeps up to half of the earned commissions to pay for costs incurred during the transaction (all advertising expenses, office space, supplies and staff, etc). Therefore, the actual compensation for each agent is approximately $1,500 for all of the time and services provided during the transaction. A single transaction can last from 1-12 months depending on circumstances.

Because there is no salary, realtors depend on the loyalty of clients in order to be compensated for all of the time and work dedicated to serving them.

This Market Report is brought to you by Wanda Greif-Tharp with Coldwell Banker Hedges Realty. The report is for residential single family homes only and may not include all sales activity in the area. Figures for sold prices used are the GROSS sold price, price after seller concessions or down payment assistance were not included. This report or any part of it may not be used without permission from Wanda Greif-Tharp.

U.S. News & World Report recently released a list of the top cities to grow up in and my hometown showed up at #8! That’s right, Cedar Rapids, Iowa is considered one of the best places to enjoy a happy childhood based on safe neighborhoods, schools and fun activities. Having being happily born and raised in Cedar Rapids, I can completely agree with the top ten ranking.

Here is the complete top ten:

1. Virginia Beach, Va.
2. Madison, Ala.
3. San Jose, Calif.
4. Overland Park, Kan.
5. Boston
6. Denver
7. Rochester, Minn.
8. Cedar Rapids, Iowa
9. Plano, Texas
10. Edison, N.J.

Source: U.S. News & World Report (08/19/2009)

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Andy Zeal is a Realtor© at Coldwell Banker Residential Brokerage in Scottsdale, Arizona and author of the real estate blog AZintheValley.
For more information about buying or selling property call 480-540-2291 or visit www.AndyZeal.com