Home Buyers Does Your Agent Work For You?

As a buyer, you may be looking at many properties -- those listed with an agent as well as those sold privately, by owner. Let's say you call a real estate agency regarding a listed property you have found in MLS (multiple listing service), the newspaper, or by driving by. Traditional agencies will offer you 'buyer assistance', meaning that they will show you properties, direct you to mortgage lenders, etc., all without a contract.

The agent you meet who shows you that property will be anxious to show you other properties, of course. You begin to feel that this agent is your agent. NOT TRUE. This agent works for the agency that listed the property, and most likely is working for the seller of the property, not you. Anything you say may be carried back to the seller at any time.

Agents may call themselves many things according to state regulations. In Massachusetts, for example, the listing agent is the agent who obtained the listing from the seller. The selling agent is the agent who actually makes the sale. In order to better understand this concept, bear in mind that a real estate agency makes the most money when one of their listed properties is sold by an agent in house.

Most properties are not shown or sold by the listing agent. Although the homesellers may have spent considerable time with the listing agent discussing the fine points of their home so that they will be knowledgeable when showing it, the property will most likely be shown by agents who are totally unfamiliar with their home. Remember, whether talking about a listing agent or a selling agent, unless you have signed a contract with a buyer's agent, their allegiance is always to the seller.

As if this isn't complicated enough. using Massachusetts regulations as an example, a broker can work for both the buyer and the seller on the same property provided the broker gets the consent of both parties and provides each with a written notice of the relationship. In this case, the broker is considered a disclosed dual agent. This broker owes both the seller and buyer a duty to deal with them fairly and honestly.

In this type of agency relationship, the broker does not represent either the seller or the buyer exclusively, and neither party can expect the broker?s undivided loyalty. Realistically, it's hard to imagine that properties are not discussed over lunch or between agents sitting at the next desk. Undisclosed dual agency by a broker is illegal. The agent must present the buyer with an agency disclosure form upon first meeting to discuss a particular property.

The use of an agent becomes further complicated when the subject of seeing properties offered by owner is brought up. Unless the agent that is showing you properties is a buyer's agent, the only way he/she can get paid is to get the private seller to list the property, something that is not likely to happen. You don't need an agent to see a for sale by owner property and some sellers prefer not to negotiate with anyone but the buyer directly. If you do feel that you need representation, the one agent that has loyalty to you, the buyer, is a buyer's agent.

A buyer's agent (ie. buyer broker) represents you, the buyer, and never the seller. Some buyer brokers are known as exclusive buyer brokers/agents. Exclusive buyer brokers do not list property - period, nor are they housed in an agency that does. The buyer broker's commission, typically 3%, is generally accommodated in the selling price of the property, paid at closing. The National Association of Exclusive Buyers Agents (NAEBA - www.naeba.org) is a good resource to locate buyer's agents in your area. Buyers, remember that a buyer broker is able to show you listed properties, foreclosures, new construction, and for sale by owner properties.

A word of caution....make sure you tell the agent that you want to see ALL available properties without regard to who pays the commission. We have often heard of overly aggressive buyer's agents who will not inform their buyers about a property unless the seller agrees up front to pay their commission. This behavior is unwarranted as the buyer has already agreed to pay any commission due.

NOTE: If you are currently working with a buyer broker and you are looking at a for sale by owner property, please let the seller know up front. Don't wait until the negotiations are underway to bring in representation. It could easily kill the deal. Most sellers are very open to showing their property to you and your buyer broker - just don't assume they'll pay your agent's fees.

Liz Provo, is the publisher of Picket Fence Preview For Sale By Owner Magazine, distributed throughout Western Massachusetts and online at www.MA4salebyowner.com

Website: www.MA4salebyowner.com Phone: 413-529-2971 Email: info@ma4salebyowner.com

Permission to use this article is granted as long as the author information and website link is included.

Eleven Ways to Create a Winning Project

Ten + Points for Successful Vertical Fractional Real Estate Development

Everyone seems to have to have a top ten list for this and a top five list for that. And so do I. In fact I have penned numerous articles on fractional real estate ownership, trying to zero in on the very most important components for success in the growing niche of vacation home ownership. As with any recipe, the ingredients vary with the chef. Perhaps one chocolate cake has more sugar, another more layers and some come straight out of a box.

Whatever the mixture, opinions differ on just the right measurements. The latest identifiers for success come from Dave and Emille Ellingson owners of the Meriwether Ranch, a working Cattle Ranch in Southwest Montana which offers rolling lots for single family vacation ranches. The offering will soon include vertical fractionals: vertical? meaning that it fits specific parameters.

Just what are these ?rules? for success in a vertical fractional market?

1.It is located in a superb area for the primary activity. Ski resorts should have the finest slopes; diving resorts, the finest seas; golf properties, the ultimate in links; fly-fishing resorts the ultimate in clear streams.

2.The vertical fractional should then be in the primo location within that general area. If you want to experience the finest wines, a fractional property in the Napa Valley makes sense. If you are an art lover, perhaps an urban property is the way to go. If diving is your passion, Nevis is a pristine environment.

3.Go with a credible developer. You want to make sure they are in it for the long haul, have had previous success and are sensitive to the environment around them.

4.Goods and services should be reasonably available. Of course it is quite fine to be in a remote locale, but you shouldn?t have to drive forever and a day to get supplies in and/or out.

5.Fractionals are primarily purchased are convenience and value. The area should literally teem with expensive luxurious properties and the quality of the fractional property should match or exceed those around it.

6.The season for the primary activity should not be brief. A window of excellent weather on a north country lake or two weeks of cool ocean breezes in a jungle do not lend themselves to a successful venture or investment in this particular market.

7.Don?t get in on the tail end of the market. To win in the fractional world be the first ?on your block? or close to it.

8.Marketing is of prime importance so have access to past and repeat customers. Those who already have an affinity with the area are your best bet to talk with.

9.If you do not have proximity to a commercial airport, make sure you have a decent jet approve private strip available. Your owners will undoubtedly be busy people who will not want to waste their precious relaxation time coming and going to their property.

10.Another terrific attribute is to have a wonderful, rich history to tell or a story to relate. Did Hollywood movie stars come to escape the pace of stardom? Do football heroes return for their golf vacations year after year? Did pirates lose pieces of eight among the reefs?

11.Finally?because this list needed more than ten items to clearly make its statement, make sure you create a plausible use plan that matches the owners? utilization of the Club component of the property. If they cannot use their purchase they will never be happy. And they will let others know of their disappointment. This 11th guideline is perhaps the most important for a vertical niche fractional property.

If you are thinking of getting involved in this exciting segment of real estate, do your research and ask yourself if your property will pass the 11 point test!

Carl G. Berry RRP is co-Chairman of Star Resort Group. He has more than 30 years of resort and urban development experience. Founded in 1978 Carl's company, California Resorts, Inc. (dba Resort Development & Advisors), is the market leader in urban share projects such as The Manhattan Club in NYC, San Francisco Suites and Powell Place City Shares in San Francisco. Mr. Berry is a co-founder of The World?s Finest Resorts (now part of RCI?s Registry Collection). He has served as Chairman of the American Resort Development Association (ARDA) and and is a member of the Red Flight, Recreational Development Council of ULI. http://www.carlgberry.com

California Mortgage What to Expect When Buying a Home in California

Maybe you are buying your first home in California, or perhaps you?re relocating to California from another state. Either way, it?s important that you educate yourself on California home loans before shopping for a home and mortgage. This article explains what you will need to know before buying a home in California:

The median price of a home in California is $211,500. Recently, homes in California have been appreciating at rates well above the national average. As a result, income levels in many parts of California are too low to purchase a median-priced home with a conventional loan. Although average interest rates in California are below the national average, California has one of the lowest levels of home affordability in the nation.

California?s Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. California law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about California Mortgage Rates and Loans.