Malisa Spivey & Damon Crelia

How many times have you just signed a contract without reading it or going over the entire agreement? I know I have many of times. Although, in Real Estate, whether you represent the seller or the buyer, it is so important to go over these fine details with the clients. No you are not a layer and no you cannot interpret the language of the contract but you can go over with them and if they have questions that you can not answer they can contact their lawyer. So many times I have spoke with clients that said they didn't know what they signed, they just signed. I know that clients aren't going to remember everything they sign, but they should be able to recall that you took a significant amount of time going over the contract, and all the addendum's explaining what each one meant to them, and they will remember the jist of things.

According to Article 9 - Standard of Practice 9-2

When assisting or enabling a client or customer in establishing a contractual relationship (e.g.,

listing and representation agreements, purchase agreements, leases, etc.) electronically,

REALTORS® shall make reasonable efforts to explain the nature and disclose the specific terms of

the contractual relationship being established prior to it being agreed to by a contracting party.

(Adopted 1/07)

Understand it is time consuming but so worth it in the end and it is our duty.

Have you ever wondered why there are so many properties on the market that have been listed forever? Have you ever thought, I know it is because they want to much for that property?

Did you know that we as Realtors have a code of ethics and standards of practice and within those we have duties to the public and other Realtors? Probably not.

I know this is a controversial subject but that is alright, we take our profession serious and wouldn't hold anyone to a standard that we ourselves wouldn't practice.

Today I want to talk about overpriced listings. Yes, we have all seen them and I am sure at times when we first started in the business we might have taken one unknowingly. Overpriced listings hurt our market, increase our days on market, and give the perception of a bad market. There are many reasons that a house may be overpriced, (ex. the owner needs to pay off bills, they want money for their next purchase, they bought too high, they financed all of their closing costs and have lived in the home for a short time, it's their house and they feel it is worth it) but the fact is, when your house is overpriced it becomes stagnant on the market and people begin to wonder what is wrong with it.

Really people should wonder what is wrong with the Realtor for listing that house. We are the professionals and as professionals we should know what the house is worth. Again, several reasons why a Realtor may have listed that house, but a big one is, self promotion and sign calls. Yes we know your house is overpriced but that is ok, we will get calls off of the sign and refer these ready willing and able buyers to another home that isn't, or we will let you suffer for a while and then get you to drop the price. My question is....if we are professionals who do this for a living day in and day out what sense does it make to take an overpriced listing? Wouldn't it make much more sense to have properties priced right on the market that sell quicker with less hageling because the general public can trust that we as Realtors have priced the property in line with what the market is doing? If not,the owner is only going to dislike you after months of it not selling, you decrease your credibility as a professional, you spend money on advertising something you know isn't going to sell (or do you advertise it), and above all those you have just violated

Article 1 - Duties to Clients and Customers - SOP 1-3

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. (Amended 1/01)

Standard of Practice 1-3
REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.

I know you are saying "I am not deliberatley miselading the owner", and I am sure your not. All I am saying is that if our duty is to the client, why would we mislead them in thinking that they can get something for their house that you yourself know they can't. Think this is crazy? Look at some houses that have been on the market for a long period of time and look at the price reductions or expired listings.

Example - Waco Association of Realtors MLS - *This information is deemed reliable but not guaranteed. (these numbers are strictly residential)

as of 4/29/2009 -

Active Listings 1384
Sold Year to Date 515 (divided by 4 months = 137 per month)
Months of Inventory 10.10
(this means if we listed nothing else from this day forward it would take us 10 months to sell the inventory we have based on the average numbers of homes sold per month from 1/1/09 to today)
Average Days on Market 157

How many properties have been on the market past the average? 515 listed for more than 160 days (3 days more than what the average days on market is)

If we take the number of properties listed over 160 days (our average number of days to sale) out of the active listings (1384 - 515) that would decrease our Months of Inventory to 6.34 months.

Who really is in control of our market? Is your sign in that yard helping the client? Remember we have duties to the public and other Realtors.

As always, if you would like more information about one of the properites listed below or any property for that matter or would like to view a property please do not hesitate to contact us directly at 254-638-0898.

This information is deemed accurate but not guaranteed.

Attention Renters, Sellers or Potential Home Buyers!

So you've been sitting in your apartment, home or office wondering if you can even afford a home. You'd be surprised to find that some people have been able to buy a new home for less than what they were paying in rent! You would also be surprised to learn that you may be able to refinance you home and lower your monthly payments.

Right now, there are some brand new homes on the market starting at $89,900. Depending on your credit and interest rate you can buy a home for less than $850 a month.

If you'd like more information regarding a new home, refinancing your home, or buying an existing home, call us anytime. You can contact us directly right now at 254-638-0898 or email us at team@MoveWithIRG.com and visit our website at www.MoveWithIRG.com .

If you're thinking about selling or buying a home, here are some quick statistics that should give you a general idea of where Waco Real Estate is today:

• There's currently 1350 residential properties on the market today.
• There's about an 8 month supply of homes on the market right now. Rule of thumb is that less than 5 months of inventory is a seller's market and more than 7 months is a buyer's market. Considering that last month there was a 10 month inventory this is GREAT NEWS!
• Currently, there are 287 (as I'm updating this blog) homes "under contract". Average asking price is $129,301
• Dating back to the January 1st, 2009 (for sold properties) average asking price was $128,950 and the average sold price was $122,541. That's 95% of asking price
• Average days on market for homes sold since January 1, 2009 is 170 days.

Of course if you'd like more detailed statistics regarding the Waco real estate market, you can go to www.MyMarketReports.com and contact us if you don't see what you are looking for. We would be happy to give you detailed statistics for your specific neighborhood.

Note: The statistics used above are for single family residences only. These numbers do not include ranches, land, farm and ranch, commercial, or manufactured housing.