The Home Listing Agreement From A- Z
May 22nd, 2012 Categories: Home Selling Tips
As a seller you will be required to sign a listing agreement with your agent. A listing agreement is basically an agreement where the seller signs an agreement with a broker/agent for the agent to sell their home for them.
There may or may not be limits put upon the seller as to how much the seller can do or is expected to do when it comes to the sale of their home.
This contract is generally required by law and can vary from state to state; however there are generally some common styles that are utilized most often.
There are actually three typical types of Agreements that can be signed; although there are many others out there that are similar to these three main styles but have their own individual additions or omissions.
Listing agreements are meant to benefit both the seller and the agent; although in most cases it is to benefit the agent for the work they will be putting into the sale of your home. Nobody likes to work for free and a listing agreement helps an agent/broker assure that their hard work will pay off when the home sells. These agreements can also vary according to state laws but in general the most typical styles are what are covered in this article.
Exclusive Agency Listing, Open Listing, and the Exclusive Right to Sell Listing are the three typical types of listing agreements that most agents will offer. Each choice depends upon what you are willing to do as work for yourself and what you expect from your agent.
Some agents and/or agencies will offer only one standard agreement or two; while other agencies could offer you more or less and even different types. Your choice should also depend upon what your particular area is experiencing locally as a real estate market as a whole.
Exclusive Agency Listing
This type of listing agreement is probably one of the most commonly utilized agreements in the business with some different variations in how the agreement is written up and what is included. The exclusive agency listing and the open listing are quite similar except in the case of the exclusive agency listing a broker represents the owner.
The owner may sell their own property if they can on their own and not pay a commission and the broker is free to work with other brokers in order to bring in buyers to make offers on the home. If the broker alone sells the home then the broker gets paid a listing commission; however if another broker brings the buying party in then the commission is shared with the selling broker.
In either case the commission is paid by the seller but it is one common commission that is split between the two agents if there are two involved. This type of agreement is also the best one for the seller because the seller is represented at all times from the very beginning to the very end of the sale unless the seller sells the home themselves and then in some instances these the agent is not obligated to represent them fully, depending upon the agreement.
Open Listing
An open listing agreement is an agreement that allows the owner to sell their own home and is not an exclusive agreement; whereas the owner can list with various brokers and pay only the broker that actually sells the home. With an open listing the biggest difference from the other agreements is that the seller actually only pays the agent who sells the home and not the agent that represents the seller. If the seller sells their own home they pay no commission because they utilized no agent.
There are dangers with this type of agreement and this could be a case of “it sounds so good to be true” because you could literally end up listing but with your own leg work end up paying no commissions. While this sounds wonderful it also comes with some issues, such as you have no representation or guidance should you be the person who sells your home.
It also requires you to do a lot more work and most people simply do not want to put in the hours it takes to utilize an open listing. Some agents may not offer this type of listing either as they are taking a chance on doing a lot of work and ending up with no commission.
Exclusive Right to Sell Listing
This is probably the other most commonly utilized type of listing available. In this case your broker has exclusive right to earn a commission representing the seller and bringing in and representing the buyer. In this case the broker must provide what is best and most fair for each party and generally will make it so there is nobody who underpays or overpays.
The seller cannot sell the home themselves unless there are exceptions written into the contract. The seller pays both the buyer’s agent fees and the sellers agent s fees because the agent is one in the same. This is probably one of the other most common types of listing agreements offered.
Call me to talk about how we work in New Bern NC.
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Foreign Investors Buy in The US
May 22nd, 2012 Categories: Real Estate News
Overseas foreign investors have a variety of real estate options available to them in the United States. If you are from out of the country you can still invest in both commercial property and residential property.
Regardless of the type of investment, there are a several financing options, legal criteria, and tax ramifications. An increasing number of foreigners are investing in the US real estate market.
This is partly due to the troubles that the country’s market is facing which has created favorable conditions for overseas investors.
With the dollar decreasing in value, there are bargains all over the country. An increasing number of distressed real estate is being sold and foreign investors are investing heavily in these properties as a long-term investment.
Besides the fluctuating exchange rate giving you plenty of leverage when bargaining, the U.S. financial market is another reason for investing in properties. This is a great thing for companies interested in investing in the U.S. real estate market for avoiding tariff restrictions and looking to set up their office or a company here.
You have several investment options available to you, but the safest one right now is investing in property. This is particularly true if you are going to invest using the loonie or euro. Presently, investing in stock is not a good option. The recession has had a big impact on the U.S. economy as well as the world economy. There is a regular decrease in stock values. Also, even if the economy was not as bad as it is now, the values of stocks are more volatile.
In comparison to stocks, real estate investments are quite stable in nature. In fact, they are also more stable than mutual funds or bond investments. By investing in real estate, you will be making an investment that will become more valuable with time.
Another good aspect of investing in the US realty market is that you will have government support. The government offers several types of tax reductions for encouraging people like you. Majority of these tax incentives are not offered by other countries. Everyone is allowed to invest in US real state.
If you have the capital to buy a property, you can get your hands on a good piece. Mortgage financing is also something you can benefit from as a foreign investor. Loans are available to foreign people looking to buy a property. So, if you don’t have the money or don’t want to spend big, you can get a mortgage loan and pay for the property in installments.
The main deterrent for many investors is a lack of understanding in regards to the legal side of things. The first thing to keep in mind is that you can invest in multiple ways. You can get direct interest in a property. You can also get interest by partnering with someone, or through a corporation or an LLC.
Majority of foreign investors acquire interest through an LLC. These companies can provide you with financial or indirect asset protection, particularly if you go bankrupt or face a law suit. Usually, a foreign investor is taxed as if he/she is holding the property in direct interest.
Your investment can be taken as a portfolio investment. It will be considered as investment income. This income can either be periodic or fixed. The amount of tax you will pay will depend on yours status. For example, a corporation will pay a different amount of tax.
Some other thing you should consider are tax refunds and the law of the state where the property is located – different states may have different laws. These are some factors involved in investing in the U.S. real estate market. Having an understanding of all these factors will enable you to avoid hassles when you decide to invest.
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Morning Coffee for 4/16/2012
April 16th, 2012 Categories: Morning Coffee
NO FEAR!
A well-known motivational speaker once said, “No one knows enough to be a pessimist.” He also quoted statistics showing that a very high percentage of the things we worry about are either A) things that never happen, or B)
things over which we have no control anyway. His point? Not only do we not have enough information to justify our worries, we also are virtually unable to alter the outcome of most situations.
Our worst fears are generally of the unknown (not enough information). Our imagination runs wild, conjuring up worst-case scenarios. We become fearful, anxious, and even overwhelmed – yet the source of our fear is
non-existent (except in our minds). Consider these oft-quoted phrases:
“Think you can – think you can’t – either way you’re right.”
“As a man thinketh, so is he.”
“Argue for your limitations, and sure enough they’re yours.”
In other words, by your thoughts alone, you control the outcome. Although there exist many risks to our peace-of-mind during uncertain times, we still have the ability to pursue our very best hopes and dreams. We may find that
their achievement requires more effort than usual. Doubt may creep in. Nevertheless, as you have heard many times, “It’s all in your head.”
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Morning Coffee for 4/9/12
April 9th, 2012 Categories: Morning Coffee
THE WAITING GAME!
The well-known Nike commercials have hammered into our heads the phrase “Just do it!” Regardless of how you view their advertising, there is magic in the words “just do it.” The real key to the message is “doing it,” a.k.a. taking action. Anything you have ever desired is available to you if you will it.
Now, consider those who are constantly washed over by the “tide.” Note that the lyrics in Jim Croce’s song say, “I’m WAITING for my ship to come in . . .” and then, “but all that comes in is the tide.” That sounds like a victim’s lament, as in, “Oh poor me, here I am ready and excited, waiting for my ship to come in, and I get dumped on by the sorry tide. Bummer. How unfair.” Duhh! Helloooo!
It’s easy to see that “action” is the opposite of “waiting.” Yet, it’s so easy to do nothing – waiting passively. Action requires energy, enthusiasm, movement, and objectives, while waiting requires not even a thought.
Whether your desire (your “ship”) is a relationship, wealth, a healthy body, or a new car, you must be the captain, not the port – the “master of your fate,” not a tide-washed, sand-covered beach ball. Life is great! On your next trip to the beach, buy a boat, a map, and a compass, and then choose your own port of call. You’ll dine at the Captain’s Table every day!
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Counting Rental Property in Your Mortgage
April 2nd, 2012 Categories: North Carolina Mortgage News
When applying for a new mortgage loan, what does the lender need from you when you have rental properties?
It is common for mortgage companies to require a copy of your current rental agreement. They may also ask for a payment ledger from a property management company if it is maintained by a third party.
If you are moving from you current residence that will become a rental property, the mortgage company may require extra documentation that includes rental agreement, copies of first rent check and security deposit, and proof of deposit into your account. Again, if it is managed by a property management company, they may require documentation from the management company that it has been received.
Danielle Hifko, New American Mortgage
910-581-6398
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How we Use Technology to Sell your Home
March 27th, 2012 Categories: Home Selling Tips
Once upon a time Realtors would come to your house, you would sign contracts for them to sell your home and then they’d proudly go to the front of your lawn and place a “FOR SALE” sign in front.
They would go back to the office and place it on the MLS (Multi Listing Service) for all the other Realtors and agents out there to know there was a new place available.
Then you would wait until either the right agent pulled the listing up for their buyer or someone would drive by and instantly fall in love with your home.
Thank goodness those are days gone by. Today’s technology has brought marketing your home to a whole new level giving you a much better chance to sell. There are possibilities, both old and new, that can be used to market your home and if your Realtor isn’t utilizing some of these, ask them why or if they could possibly do so. To be honest, if your agent is worth their weight they’re either already using at least most of these techniques or beginning to implement them into their marketing techniques. This is the marketing of today’s Real Estate world.
Online Techniques
The TNT (Tried ‘n True) Techniques – this is the typical marketing techniques we’ve grown up with. Putting your sign in your yard, listing on the MLS, putting ads in newspapers or local Home Catalogs are all the “old fashioned” way that Realtors listed homes. There’s nothing wrong with using the old ways because they can and do still work; but you have to make sure you utilize them along with the new age technique.
Social Media Marketing – Your agent should utilize their own business versions of each of the different Social Medias. These medias include Facebook, Twitter, LinkedIn, YouTube, Google+ and any other of the up and coming medias you see out there on the internet. How do they utilize these medias to sell your home?
Facebook – is the largest by far and should be the first place the marketing campaign starts! First by listing pictures of your house; begin with Facebook where your home gets tagged with your names so your friends and connections see that your home is for sale and their friends, etc. By listing on Facebook their own business friends, other agents, customers, potential buyers, etc. will see the listing also.
Next is Twitter – Posting a short Tweet with a link to their “newest listing” (your home) with a few quick comments. They can also post often with a link to their site which should list all of the homes they are currently listing, including yours.
On YouTube – they can post everything from a PowerPoint type of presentation to a virtual walk-through tour of your house or an introduction to their own website telling about the many homes they have.
On LinkedIn – the Realtor is generally linked with other agents and this will allow those who are connected outside of their own Brokerage Firm to know they have a new listing. There are others listed as their connections also that will see the listing.
The Agency or Realtor’s website – should be very professional and specialize in showing all of their listings in a highly professional way. A virtual tour, not a click as you walk through style of tour, which gives you a 3-dimensional view of the homes they’re listing.
Google+ – is the new kid on the block and many agents won’t be listed here yet. It’s growing in size and hoping to take over as “the new Facebook” but isn’t even close yet. The G+ site should allow not only for pictures but they have a system where other people on Google can give it a “plus” and rate it so everyone can see the higher rated items.
Other Technologies
QR Codes are not all that new as marketing techniques and if you’ve owned a Smart Phone you know what they are. There are special apps that you can download and when you scan the QR Code, which looks like a block of black & white boxes, information about that product comes up. Realtors are now utilizing these QR Codes directly on the signs of homes, on any articles or print information about homes they’re listing and anywhere they can place them. An interested consumer clicks their phone and takes a picture using the QR Code app which will then automatically take them to the mobile designed web page and can even give you a pop up which allows you to hit “Call Now” and reach the listing agent or their agency.
Email newsletters are another way many agencies and Realtors will keep in contact with their current and former clients. In these newsletters they can list their newest listings along with some interesting articles about real estate itself; whether it be trends or do-it-yourself articles. Delivering a note to potential buyers with pictures and links automatically allows the buyer to not only look at the information themselves but also perhaps share it with a friend that they know is looking for a home in your particular area or price range.
Marketing Is Continuously Changing
The marketing industry is continuously changing for every product line out there and real estate is a product line. Your agent should always be on top of the ever changing marketing techniques out there and even ahead of the crowd when it comes to developing their own techniques to showcase your house. Open houses do work but there are so many other ways to get the word out there that your home is for sale and on the market. Showcasing it in different ways that grab the attention of the buyer is always a plus. What it comes down to is making sure your agent not only knows and uses these techniques but keeps up on the newest techniques or discovers their own techniques as time goes on. In the end you want your home to sell and sell quickly!
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Should I BUY or RENT A HOME
March 27th, 2012 Categories: Home Buyer Tips
There are many advantages to purchasing a home, especially in light of the historic low rates that have become available.
Regardless of the fact that these rates dropped considerably as a result of the recent housing and financial crash, more and more people are driven to the path of home ownership versus renting.
There are a number of pros and cons associated with the recent industry crash. Scores of Americans are finally able to purchase a part of the American dream, as desired by so many. And the best part of all? Your money isn’t going straight into the can! This is just one of several benefits of purchasing a home instead of renting.
When you are considering your next move, it would be wise to consider your options carefully. One thing you should consider is the length of time you plan to live in your new home. If you are relocating for a few years for a job it would be wise to consider both purchasing a home as well as other options such as renting.
A number of studies indicate benefits of home ownership for not only the owners, but also for their family, neighbors, and community at large. Below is a brief list of other benefits to owning a home.
- Locked In Cost – When you are dealing with a lease, you often have to worry about future rate changes. However when you buy a home with a fixed rate mortgage, your payments will not change, at least for the duration of your loan period. There is a chance you can see your taxes go up, but many homeowners don’t fret about their tax dollars going toward education or other core government tax-based essentials.
- Tax Benefits – Another benefit homeowners have over renters is the ability to cash in on savings on their taxes. Homeowners are usually eligible for a significant tax reduction because they can deduct their mortgage payments and any paid property tax when they file their yearly income taxes. Though some may think they may not see a good return on their taxes from their mortgage, you’d be surprised by the savings that can be accrued just by interest rates and property taxes alone.
- Debt Consolidation – If necessary, you have the ability to refinance your home’s mortgage in order to merge, or consolidate, other outstanding debt. This is also something you can deduct from you taxes and an opportunity that simply doesn’t exist for renters.
- Build Equity – When you are paying rent every month, you are simply handing your money over for the roof over your head, and nothing else in return. However, when you are paying for a mortgage, your payments are going toward your principal [and any added interest]. Every year that you pay toward your home, you are paying toward the principal and are eligible to get the money back when you put your house on the market, later on. It’s basically a long term investment in the form of real property.
- Peace of Mind – When you purchase a home, you can make your own decisions on everything from window trim and bathroom paint, to future plans for renovating that upstairs attic. You will be able to call all the shots without being worried that your land lord will be upset. You will have peace of mind knowing that you don’t have to depend on somebody else.
Buying a home is one of the most important decisions someone will make in their life. However, it is important to understand that owning a home comes with added responsibilities. For example, if you are used to renting a home, you probably never think about the landscaping work. You may not realize that your rental fees are helping pay a contractor to mow your lawn.
It is important that you evaluate all the facets of real estate before jumping in head first and buying property. Buying a home is a life-long decision. If you think you are prepared to buy a home or are simply sick of throwing away your hard earned money on rent, contact a real estate professional to help answer any questions you may have and to get you on the right track of home ownership.
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March Real Estate News
March 22nd, 2012 Categories: Videos
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Quote for the Day
March 22nd, 2012 Categories: Morning Coffee
“A candle loses nothing by lighting another candle.”
- Father James Keller (1900-1977)
GOT A LIGHT?
We all love a compliment. Your manager says to you, “I noticed that your last sale was handled very smoothly. Thanks for offering your customer such excellent service!” Your wife or husband tells you, “I’m so proud of the way you encourage our children!” Your grown child returns home for a visit and says, “Thanks for making it possible for me to get my degree!” Those are “feel good” times, aren’t they?
If you live a more or less normal day-to-day sort of life, compliments are always welcome, but aren’t absolutely critical to your sense of well-being. You don’t have to get them to make it through the day. If you are fortunate enough to enjoy high self-esteem, why not consider becoming a “candle” to others?
There are many around us each day, both children and adults,
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Financing an Adjustable Rate Mortgage
February 6th, 2012 Categories: North Carolina Mortgage News
When is it a good decision to finance (or refinance) to an adjustable rate mortgage (ARM)?
What is your goal? If your goal is to keep your monthly payments as low as possible and you have a specific time frame for selling your property, an ARM might be the best option for you. If your goal is to pay down the loan quickly or to avoid the risk of increasing monthly payments, then a fixed-rate mortgage might be a better option. If paying the loan down quickly is your goal, a 10 or 15 year mortgage may fit your needs as well.
Danielle Hifko
New American Mortgage
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