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Paul Howard NJHomeBuyer.com Realty... 856-488-8444

NATIONWIDE OPEN HOUSE June 4-5 2011 survival guide

Wow. It sounds like expectations are high that buyers will be out looking at homes in June.
This really falls under the category of home buying for beginners but experienced buyers are at risk too.

Some buyers are just starting their search and don't have an agent yet. Thyy are at risk of getting trapped with an agent working for the seller. (Read up on 'Procuring Cause' at http://www.procuringcause.com )
If you don't already have an agent (and let the seller's agent holding the open house know that fact) you could be trapped into using the seller's agent. Forewarned is forearmed.

What to do: The basic idea is that when you walk through the door to look at the house you alread have an agent (THAT DOES NOT WORK FOR THE LISTING COMPANY) that you can name as your agent.
That will mean having more than 1 agent (so you could not sign a contract with either) since you may want to look at a home listed by one of their companies.

There is a way around having 2 agents. Use an agent with a company that exclusively represents buyers. No listings - no conflict. Full representation.

If you don't know of a company near you google "Exclusive Buyers Agent". Don't assume all the agents that pop up are EBAs. Look for membership in the National Association of Exclusive Buyer Agents.
Go to http://www.naeba.org. This is the same place that you will find if you go to Suze Orman's site to find a buyers agent. Even HUD in their settlement cost booklet suggests (on page 6) that buyers use an exclusive buyers agent.

Happy house hunting! Be safe and be represented. Don't get trapped.


Paul Howard, Broker
NJHomeBuyer.com Realty
Cherry Hill NJ 08002
856-488-8444
http://www.facebook.com/homebuyers

Buyer's Agents and misleading advertising: FTC - Will they call on you?

It is one thing to be required to 'disclose' the possibilities for agency relationships with consumers at the first point of significant contact, but it is quite another to market to them using ads intended to deceive.

Seller's Agent
Buyer's Agent
Dual Agent

Seems simple and it is BUT:
When a brokerage firm, through an agent of that firm, advertises itself (or an individual agent working for them) as a 'buyer's agent', they had better be able to deliver what they advertise.

Can they? In many cases, even they don't know whether they can or not, and even when they can, they can not be sure that the advertised relationship will continue throughout the buyer's purchase.

There are still relatively few real estate companies that can advertise themselves as 'buyer's agents' without fear that they will mislead consumers, but there are some. They call themselves EBAs or Exclusive Buyer Agents. Many of them are members of the National Association of Exclusive Buyer Agents.

If you are buying a home ask the agent of the company to put in writing that they really will stand by you and represent your interest - not the seller's - and not both, throughout your purchase process.

If they advertised themselves as a buyers agent, they should be willing to guarantee in writing that that is what they will be -- all the way through.

If what you find is the bait of buyer agency then a switch giving them the right to be a dual agent - let the FTC know.

If you have been taken in by a deceptive advertisement you can file a complaint with the FTC here. https://www.ftccomplaintassistant.gov


You can read about the FTC's rules here:
FTC

You can read more about deceptive advertising and marketing here:
DECEPTIVE ADVERTISING AND MARKETING PRACTICES


Good luck in your home search.

Paul Howard, Broker
Cherry Hill, NJ
NJHomeBuyer.com Realty
856-488-8444

Buyer Representation - Seller Representaton. Equal treatment is not FAIR.

When I am 'fair' to a seller that means I won't cheat them. I will also treat them with respect. That does NOT mean I will treat them equally. In fact I will NOT treat them equally. I will use every legal means I have to gain an advantage for my buyer client.

If a buyer wants an agent that will work in that way they should be free to choose such an agent. Does disclosure do that for them? Not necessarily -in fact it almost never does. Buyers often see a house online they like and call the company representing that seller. They usually don't buy that house but if they "like" the agent they may stick with them. They may lose sight of the issue of representation.

What if they look at the house with the agent of the seller and then want to buy it but wake up and want someone on their side because they don't feel they are experienced enough to go it alone? If they try to change, many agents will shout PROCURING CAUSE. Buyers usually don't sign brokerage fee agreements with their agent because the agent goes along with whatever the seller and their agent have decided to 'offer' a buyer's agent as 'compensation'.

AT THE CORE of the issue of dual agency is the commission system. Although lack of proper and timely disclosure is a HUGE problem the brokerage fee system is interconnected.

To make a real change:
- outlaw the system that all too often ties the buyer's agent's fee to an offering from the seller or their agent. They may determine a 'set aside' but should not have the expectation that it will equal the buyer's agent's fee as negotiated independently with the buyer.
-Require agents to have a written contract with buyers as a condition of collecting a fee.
-Start by making it illegal for an agent to collect a commission for a sale unless the buyer has been given and signed a REAL agency disclosure PRIOR TO looking at the house. State legislatures could address this but as I see it it is a federal issue. Much of the money involved is funded by government backed loans. That makes it a legitimate area for involvement by the feds. As it is, the current commission system inhibits competition. It nearly eliminates any chance of competition regarding brokerage fees on the buying side of the transaction and this is facilitated by the virtually universal practice of the MLS "offer of compensation".

Paul Howard, Broker
www.NJHomeBuyer.com Realty
Cherry Hill NJ 08002
856-488-8444
Serving Southern New Jersey
Member:NAEBA - National Association of Exclusive Buyer Agents

Market State July 14, 2009 (Mercer County NJ)

Trend MLS shows the following ( on July 14,2009) for Mercer County, New Jersey.

Homes for sale: 2447

Single detached homes for sale: 1486

Homes under contract: 588

Homes for sale categorized as needing "TLC": 120 (You can bet there are another hundred needing TLC and you won't know till you get there)

Homes sold (settled) in June 2009: 320, June 2008: 349

Homes for sale with at least 3BR, 2 full baths, garage, basement: 764, with price under $500,000 - 392, under $300,000 - 109

That still leaves a lot to choose from for the average first time buyer and a lot of competition for the average seller.

When the first time buyer tax credit expires on November 30th the effect will be that of an immediate $8000 increase in price across the board for all qualified first time buyers. It is unlikely that beyond that point any additional slide in home prices will make that up.

When you hire a buyers agent - avoid the BS (bait and switch) hire the whole office.


NJHomeBuyer.com Realty, is a member of NAEBA (National Association of Exclusive Buyer Agents) covering South Jersey and Central Jersey. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call Paul today. For more on NAEBA visit NAEBA

Paul Howard, Broker/Owner

NJHomeBuyer.com Realty (member of NAEBA)

Cherry Hill NJ 08002

856-488-8444

"Fan" NJHomeBuyer.com Realty on FaceBook


Follow Paul Howard on twitter at:
twitter.com/paulhoward

Market Stats 07-03-2009 Cherry Hill NJ

TrendMLS shows the following ( on July 3,2009) for Cherry Hill, New Jersey.

Homes for sale: 667

Single detached homes for sale: 496

Homes under contract: 107

Homes for sale categorized as needing "TLC": 24 (You can bet there are another hundred needing TLC and you won't know till you get there)

Homes sold (settled) in June 2009: 61

Homes for sale with at least 3BR, 2full baths, garage, basement: 275, price under $300,000 - 90

That still leaves a lot to choose from for the average first time buyer and a lot of competition for the average seller.

When the first time buyer tax credit expires on November 30th the effect will be that of an immediate $8000 increase in price across the board for all qualified first time buyers. It is unlikely that beyond that point any additional slide in home prices will make that up.

When you hire a buyers agent - avoid the BS (bait and switch) hire the whole office.


NJHomeBuyer.com Realty, is a member of NAEBA (National Association of Exclusive Buyer Agents) covering South Jersey and Central Jersey. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call Paul today. For more on NAEBA visit NAEBA

Paul Howard, Broker/Owner

NJHomeBuyer.com Realty (member of NAEBA)

Cherry Hill NJ 08002

856-488-8444

"Fan" NJHomeBuyer.com Realty on FaceBook


Follow Paul Howard on twitter at:
twitter.com/paulhoward