How great Wichita Kansas is doing (edit/delete)
I pity the rest of the country. I've watched so many of my friends in Florida, California, Vegas, and more suffering in Real Estate. While I feel for you, I'm glad that in Wichita we just keep chugging along.
Article in yesterdays newspaper said we had the 2nd fastest growing average wage in the country, and we're close to the national average for weekly wage earnings. Around $44,000 per year. Probably doesn't seem like much to many parts of the country, but consider our average home costs around $120,000. What can you get for that? 3 bdrms, 2 bths, 2 car garage - 1300 sq ft on the main floor, and a full basement. Often a view out basement. For $140,000, you can get a new home, with 3 car garage and a family room finished in the view out basement.
Land is flat here, but cheap too (comparatively). Larger lots, and most places have at least 6 feet from house to side yard lot line. 125 x 70 ft lots are about standard in smaller new homes. I live in a home worth about $300,000. My house is a 2300 ft 1.5 story, full finished walk out basement, 160 x 90 ft lot on a lake. 10 years old. We are just so affordable.
Our housing market has remaned steady, with about a 2% gain over last year. We do have a few too many homes on the market, so buyers have a bit more to pick from, but not so many that prices can be slashed dramatically. Maybe a few too many new homes sitting though.
All in all, good employment, steady economy, moederate entertainment, good schools, and flat - we have plenty of flat!!!!
Thursday, February 14, 2008
Procurring Cause
Realtors who Cut commissions, Freeze out buyers agent (edit/delete)
I read lots of posts here about "I should've had a buyer agency", or "I got cut out of a commission". BIG misconceptions here. I won't address Buyer Agency duties here. Very few people have a problem with the duties, it's the paycheck that seems to be so confusing.
According to "About.com" , "Definition: The legal definition of procuring cause would be "the cause that results in the attainment of a stated goal". In real estate it would take on the meaning of the real estate agent or broker who, by their actions in producing a buyer, brought about the sale of a property."
This seems so clear, yet it becomes a real nightmare for many. I'm going to suggest that everyone who turns their head the other way, lets a broker get away with cutting commissions, is as guilty as the offending broker.
NAR has gone to great lengths to define and test Procuring Cause. According to http://www.realtor.org/LetterLw.nsf/pages/95procuringcausefactors?OpenDocument, we must look at many factors:
Procuring cause factors may be grouped, for organizational purposes, into nine different categories. These categories are:
The nature and status of the transaction
The nature, status and terms of the listing agreement or offer to compensate
The roles and relationships of the parties
The initial contact with the purchaser
The conduct of the broker* or agent
Continuity and breaks in continuity
The conduct of the buyer
The conduct of the seller
Other information
This tells us there really isn't a black and white answer. The Code of Ethics and Standards of Practice becomes a guide at hearings. They guide us to test the Code with evidence provided to support the case. Standards of Practice tells us what should happen, and provide test cases to compare our hearing to.
Realtors who "cut" their commission MUST disclose that in the MLS. Variable commissions are allowed, but must be disclosed as such. When you show property that is marked Variable, you are forewarned that a Seller may choose to accept a contract with a lower price, knowing they will pay a lower commission (this happens in new construction a lot). I suggest disclosing this to a buyer, and telling the listing agent you've disclosed this information. If this will help protect all parties to act legally.
No matter who the buyer's agent is, they have signed on to accept the offered commission. Giving any back to the buyer is very illegal. Be up front with all parties, for the good of all parties. Bring charges against Brokers who try and circumvent the system. Stop complaining about those who break the rules, if you won't bring them to justice.
I read lots of posts here about "I should've had a buyer agency", or "I got cut out of a commission". BIG misconceptions here. I won't address Buyer Agency duties here. Very few people have a problem with the duties, it's the paycheck that seems to be so confusing.
According to "About.com" , "Definition: The legal definition of procuring cause would be "the cause that results in the attainment of a stated goal". In real estate it would take on the meaning of the real estate agent or broker who, by their actions in producing a buyer, brought about the sale of a property."
This seems so clear, yet it becomes a real nightmare for many. I'm going to suggest that everyone who turns their head the other way, lets a broker get away with cutting commissions, is as guilty as the offending broker.
NAR has gone to great lengths to define and test Procuring Cause. According to http://www.realtor.org/LetterLw.nsf/pages/95procuringcausefactors?OpenDocument, we must look at many factors:
Procuring cause factors may be grouped, for organizational purposes, into nine different categories. These categories are:
The nature and status of the transaction
The nature, status and terms of the listing agreement or offer to compensate
The roles and relationships of the parties
The initial contact with the purchaser
The conduct of the broker* or agent
Continuity and breaks in continuity
The conduct of the buyer
The conduct of the seller
Other information
This tells us there really isn't a black and white answer. The Code of Ethics and Standards of Practice becomes a guide at hearings. They guide us to test the Code with evidence provided to support the case. Standards of Practice tells us what should happen, and provide test cases to compare our hearing to.
Realtors who "cut" their commission MUST disclose that in the MLS. Variable commissions are allowed, but must be disclosed as such. When you show property that is marked Variable, you are forewarned that a Seller may choose to accept a contract with a lower price, knowing they will pay a lower commission (this happens in new construction a lot). I suggest disclosing this to a buyer, and telling the listing agent you've disclosed this information. If this will help protect all parties to act legally.
No matter who the buyer's agent is, they have signed on to accept the offered commission. Giving any back to the buyer is very illegal. Be up front with all parties, for the good of all parties. Bring charges against Brokers who try and circumvent the system. Stop complaining about those who break the rules, if you won't bring them to justice.
2007 Buyers and Sellers profile
2007 Profile of Home Buyers and Sellers (Members Only) (edit/delete)
Every year, at the end of November, NAR releases the previous years surveys of buyers and sellers. Great book, and I look for trends that tell me where to spend my advertising dollars. This years book has some jumps, nothing shocking, but very revealing as we follow trends. The book is available from NAR, around $50 for Realtors. Some numbers that I found really meaningful:
84% of all buyers used the internet in their search, same percentage (84%) used Realtors! Only 50% of buyers used the newspaper.
66% of buyers used the internet frequently, 64% used Real Estate agents frequently.
When looking online, what were buyers looking for? 96% looked for properties on the market, 21% wanted general info about the area, 4% were looking for an agent.
After finding a home on the net, 73% drove by home, 58% walked thru home, 23% contacted selling agent to see home, 22% wanted more information.
29% found THE home they purchased on the internet first.
Only 20% of buyers visited an FSBO site, and only 3% of all buyers purchased a FSBO.
My take? Web presence is vital (duh...), Home search should be the first and easiest thing to find on your site. If your site spends a lot of space talking about how wonderfull you are, I think you're waisting the importance of your site.
These are my opinions based on a very limited view of tremendous data. I reccomend all Active Rain members buy the book, study it. Watch the trends. If you're here, you already understand the importance of the 'net, understanding what buyers are looking for on your site tells you the direction to design your site.
By the way, the book breaks down by age, buyers, sellers, location, education, income, and more. This is a must read for serious marketers. Whild I've quoted only a few stats here, this is a very detailed survey available to Realtors and non-Realtors alike. BUT, if you belong to NAR, it's a whole lot cheaper. To purchase:
http://www.realtor.org/prodser.nsf/products/186-45-07?OpenDocument
If you'd like to see how I set up my site to put the search at the top:
www.realtyworldwichita.com
Every year, at the end of November, NAR releases the previous years surveys of buyers and sellers. Great book, and I look for trends that tell me where to spend my advertising dollars. This years book has some jumps, nothing shocking, but very revealing as we follow trends. The book is available from NAR, around $50 for Realtors. Some numbers that I found really meaningful:
84% of all buyers used the internet in their search, same percentage (84%) used Realtors! Only 50% of buyers used the newspaper.
66% of buyers used the internet frequently, 64% used Real Estate agents frequently.
When looking online, what were buyers looking for? 96% looked for properties on the market, 21% wanted general info about the area, 4% were looking for an agent.
After finding a home on the net, 73% drove by home, 58% walked thru home, 23% contacted selling agent to see home, 22% wanted more information.
29% found THE home they purchased on the internet first.
Only 20% of buyers visited an FSBO site, and only 3% of all buyers purchased a FSBO.
My take? Web presence is vital (duh...), Home search should be the first and easiest thing to find on your site. If your site spends a lot of space talking about how wonderfull you are, I think you're waisting the importance of your site.
These are my opinions based on a very limited view of tremendous data. I reccomend all Active Rain members buy the book, study it. Watch the trends. If you're here, you already understand the importance of the 'net, understanding what buyers are looking for on your site tells you the direction to design your site.
By the way, the book breaks down by age, buyers, sellers, location, education, income, and more. This is a must read for serious marketers. Whild I've quoted only a few stats here, this is a very detailed survey available to Realtors and non-Realtors alike. BUT, if you belong to NAR, it's a whole lot cheaper. To purchase:
http://www.realtor.org/prodser.nsf/products/186-45-07?OpenDocument
If you'd like to see how I set up my site to put the search at the top:
www.realtyworldwichita.com
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