Why Use a Buyer’s Agent?
July 24th, 2009 categories: Folsom Lake, Home buying, Real Estate
A buyer who represents himself has a fool for a agent
Buyer-broker representation in the purchase of a home is one of the smartest things you can do for yourself. One of my pet peeves is finding out, after the fact, that someone purchased a home from the listing agent because they thought they would get a better deal. My question is who got the best deal?
First, let me explain what I mean by a buyer-broker. According to California real estate code we, who sell real estate, are required to explain who we represent in any given transaction. This is called an agency disclosure. So, if you hire me to list your house, my job is to bring buyers and I am a listing agent. If you hire me to help you find a house, my job is to show you homes that meet your criteria and I represent the buyer as his agent.
A buyer-broker agreement adds to the usual agency duties and requires that I work exclusively for the buyer to find a property that meets his criteria. For example, if I see a home that is For Sale by Owner (FSBO) then I need to contact that owner and ask them if I can show my client the home. If the seller says they will not pay a commission to me then I am still bound to show my buyer. Typically the buyer-broker agreement outlines the compensation to the agent. In most cases the buyers agent is paid from the proceeds of the sale, but technically the buyer is responsible for the commission.
So back to my pet peeve. If you call me about a property that I have listed and you tell me you have an agent, I am required to respect that relationship. Failure to abide by that simple rule results in well over 50% of the complaints received by our board of Realtors. The problem arises when the listing agent alludes that he can get the buyer a better deal for the house by dismissing his agent. Actually, the California Association of Realtors (CAR) boiler plate listing agreement shows the amount of commission to be offered to the selling (buyer’s) agent. So, if the broker doesn’t have to split the commission he gets to keep the whole amount. Do you think that motivates the listing agent to find a buyer who isn’t represented? As Sarah Palin says….you betcha!
This happened in once instance when I was representing a buyer a few years ago. My buyer had a budget that she could not exceed and the market was still going crazy. In the heat of the moment she walked into an open house, told the agent (who also happened to be the owner) that she had a buyer’s agent. He persuaded her to cancel the contract she had with me on another house. He then said he would reduce the price of the home to the amount she told him she was budgeted for.
Do you think she was represented well? The owner/seller wanted out in a big way and exploited her ignorance. We see this a lot in hard markets such as now with investors buying and flipping properties as fast as possible. As if this wasn’t unethical enough, after the escrow closed she finally read her paperwork and found various things wrong or misrepresented. She called me to see if I could offer her counsel. The saddest part was that because this real estate agent was not a member of our local board, and only joined the MLS, there was nothing the board could do to help this consumer.
The lesson is two-fold. One, make sure you understand your agency relationship and if you want single representation (no dual agency) then tell your agent. Buyer broker agreements require that you will be responsible for paying your agents commission. IF you default on your agreement and do what my client did, then not only do you risk owing the commission, but you open yourself up to unethical agents. It’s funny how more green on the table causes failure to highlight items easily missed on reports or disclosures.
And two, hire a Realtor…this is a trademarked designation to be used only for agents who are members of the local, state and national boards of realtor’s. IF they do something unethical you have some recourse and can make their work life very difficult until they resolve your complaint. I’ve always maintained that you can’t teach ethics…people either have them and live by them or they don’t. One thing I do know and that is, that nothing stands in the way of what unethical people think they deserve.
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Beth Mergens Folsom Deal of the Week
June 16th, 2009 categories: Folsom CA, Folsom Lake, Folsom Lake Homes, Home buying
Real Estate Deals in Folsom CA 95630
As promised I would scour the landscape to find the best deal happening in Folsom CA this week and I’ve found a wonderful home listed in the coveted Briggs Ranch subdivision. This 3bedroom 2 bath was built in 1988 and is just under 1300 sqft. It has a 2 car garage and is approximately 1/6 of an acre.
Briggs Ranch is well known for it’s grammar school, proximity to Folsom Lake and mature landscaping. Additionally the fact that there are no Mello Roos fees or HOA’s keeps people who live there from selling and moving on. In fact, there are a number of neighbors who have bought and sold within this subdivision and the investor properties are few. This subdivision hosts many activities from July 4th parades to placing Christmas luminaries throughout the entire subdivision.
This home was posted on the MLS on June 12th and has a few offers in negotiations which is not unusual considering the $259,900 price tag. Although higher in price the location is what adds value given the excellent condition and favorable location but is still a deal at $204 per sq.ft. Because it is a short sale there is still a possiblity of landing this deal given the fickleness of today’s buyer.
Folsom currently has just under a 4 month supply of inventory with a median price at $355,000. The average price per sq.ft. is $178.00 but you have to remember that this is an average of all the homes sold in May 2009. If interested in conducting your own search just log on to my MLS search and let me help you get started finding your deal.
For related articles:
http://folsomlakehomes.com/2008/11/09/thanksgiving-day-race-in-folsom-ca/
http://folsomlakehomes.com/2008/10/29/folsom-soccer-membership-exceeds-3000/
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Folsom Lake Crossing Opens March 28, 2009
March 25th, 2009 categories: American River, Folsom Bridges, Folsom CA, Folsom Lake, Special Events
New bridge ready for use by 4PM
The band will play, the dignitaries will give their speeches and then the people will for one time only be able to walk along the new bridge in Folsom CA this Saturday, March 28th, and see the American River under their feet. There hasn’t been this much excitement in Folsom since the Natomas Crossing was finished in 1999.
There is a group of people forming the Human Chain of Gratitude on Saturday to encourage others to have an attitude of gratitude despite what this economy is doing. I plan on riding my bike across the bridge and joining those grateful souls for a toast and enjoy this one time event.
Another event coming up is the community garage sale in Lembi Park this May 2nd. My office will pick up donated items to be sold with the proceeds going to the Folsom City Zoo. If you would like to donate any gently used items please email me or call my office at 916-984-8778
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The New Folsom Bridge
March 8th, 2009 categories: American River, Folsom Bridges, Folsom CA, Folsom Lake, Special Events
Folsom Lake Crossing Opens March 28th
Since the Dam road closed in 2003 the people of Folsom have had to endure over 18000 cars traveling through the downtown streets not to mention the impact on the residents and small businesses in the historic district. The sad truth is that although more people were detoured through that part of town there has not been an increase in business revenue simply because people are passing through.
The declining economy notwithstanding it seems that some businesses have managed to survive and a few have thrived. Chicago Fire, my favorite pizza place, has expanded despite the lack of parking in the historic district and Scarlet’s next door seems especially busy on weekends. Does this mean that once the new bridge opens that we’ll see a reverse in downtown traffic or will it bring more people to that part of town knowing they won’t have to deal with the additional traffic? Inquiring minds want to know….
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Tax Credit for New Homebuyers
February 24th, 2009 categories: Folsom Lake, Home Building, Real Estate, Tax Incentives
New construction offers up to $10,000 credit
Good news for first time home buyers in California. As part of the state budget you can now get up to $10,000 credit or 5% of the purchase price of an owner occupied newly constructed home. This applies only to “have never been occupied” properties. This is a tax credit that is good only from March 1, 2009 to March 1, 2010. There isn’t any information regarding down payments or loan caps but a tax credit works like cash in your account at tax time so those of you who were on the fence it’s time to go shopping.
Currently there is a tax credit up to $8000 for first time homeowners which will expire at the end of 2009 which is an expansion of last year’s tax credit of $7500 with some changes. I don’t know if the credit will be retroactive to last year’s purchases but since tax season is upon us I’m sure more information regarding exactly how this plays out will start to surface.
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Folsom’s First Bicycle Film Festival
February 8th, 2009 categories: Biking, Folsom Lake, Sacramento, Special Events
Feb 13th starts new season
by Jason Montiel
Folsom has developed a reputation as one of the best places to live due to the outdoor recreation available nearly 11 months of the year although this year seems to be the exception…due to a lack of rain the number pushes 12 months. So this year the city is hosting it’s first film festival featuring “Breaking Away” at 7 p.m. at 48 Natoma St. Just in case you don’t know this is the location of the new Art Center/Senior Center which is a re-make of the fire station next to the city offices.
This presentation was inspired by the upcoming Amgen Bike Race in Sacramento on Feb. 14 and the city of Folsom hopes the locals will support that race and encourage other event sponsors to consider our region when looking for venues. Promotion is something taken very seriously in this town and I wouldn’t be surprised to see film crews on the streets with celebs shopping at the local antique shops between takes.
Speaking of a lack of rain…while driving down Empire Ranch Rd. I caught a clear view of the Folsom puddle and was surprised how brown the lake appears. Watering lawns is now limited to every other day and if you get caught spraying off your sidewalk or driveway you could be fined. I’ve begun to pray for rain because I remember my first year in California, which just happened to be in the middle of the drought in 1977. We used to save the drain water from the washing machine to water the lawn and wash the cars. Local restaurants have begun to only serve water upon request so if anyone has a hotline to heaven please pick up the phone…we need the water.
Feb 13th starts new season
by Jason Montiel
Folsom has developed a reputation as one of the best places to live due to the outdoor recreation available nearly 11 months of the year although this year seems to be the exception…due to a lack of rain the number pushes 12 months. So this year the city is hosting it’s first film festival featuring “Breaking Away” at 7 p.m. at 48 Natoma St. Just in case you don’t know this is the location of the new Art Center/Senior Center which is a re-make of the fire station next to the city offices.
This presentation was inspired by the upcoming Amgen Bike Race in Sacramento on Feb. 14 and the city of Folsom hopes the locals will support that race and encourage other event sponsors to consider our region when looking for venues. Promotion is something taken very seriously in this town and I wouldn’t be surprised to see film crews on the streets with celebs shopping at the local antique shops between takes.
Speaking of a lack of rain…while driving down Empire Ranch Rd. I caught a clear view of the Folsom puddle and was surprised how brown the lake appears. Watering lawns is now limited to every other day and if you get caught spraying off your sidewalk or driveway you could be fined. I’ve begun to pray for rain because I remember my first year in California, which just happened to be in the middle of the drought in 1977. We used to save the drain water from the washing machine to water the lawn and wash the cars. Local restaurants have begun to only serve water upon request so if anyone has a hotline to heaven please pick up the phone…we need the water.
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Now Is The Time To Renegotiate With Banks
January 12th, 2009 categories: Folsom Lake, Real Estate, Short Sales
Threat of judges interference encourage mortgage workouts
According to a news report from CNN Jan. 9,2009, Citibank has signed on with legislation to negotiate mortgage modifications with folks who have filed bankruptcy. It also says that the National Assoc. of Realtors is leaning towards supporting this piece of legislation which appears to be a complete 180 from previous statements. Allowing judges to renegotiate loans and reduce interest rates is some scary stuff.
My concern is the long term impact this type of “tinkering” with mortgages will have on the real estate industry as a whole. Referred to as a “cram-down” by the banking industry, this is something seldom used but according to this article (and my own experience) “the banks have been dragging their feet” in terms of negotiating with homeowners. It appears this offers the push back needed to get them to move the paper and get on the phone to the homeowners (and hopefully answer the phone calls from the Realtors!)
The real estate profession has long been used as a metaphor for unethical behavior but the lenders got caught in this past market and their true colors were displayed for all to see. I understand that mortgage brokers have to make a living and most are honest people who work for their clients best interests but we all know a story or two about the fast Eddie’s who got in and made a quick buck. Unfortunately it’s not those same people who have to take it in the shorts but at least this offers a solution to Joe the plumber to salvage his situation and get his loan reduced to keep his home. If the courts do indeed get the power to start reducing mortgages and alter the interest rates I think the industry as a whole will start to police it’s actions more closely and hopefully everyone will benefit.
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REI Hosts FREE Ski Equipment Clinic in Folsom CA
December 30th, 2008 categories: Folsom CA, Folsom Lake, Outdoor Activities, Skiing, Snowboarding, Special Events
Learn How To Professionally Maintain Your Equipment
Every so often there is a seminar about taking care of equipment that I would actually want to attend and considering the high cost of maintaining my skis this looked like something worth the effort. I barely give my skis a thought until it’s time to drag them out of the closet and head up the hill. Let’s face it, tightening bindings and waxing skis isn’t exactly exciting let alone sharpening edges and checking for tensions. So when I got my monthly email reminder from REI and saw this seminar I thought I’d share the information with all you ski and snowboard fans.
There are other events that REI has and trips too! On my hike yesterday with the Sacramento Trail Mix I met a gal who told me about a trip to Utah to see Zion Canyon and others this June. Apparently REI sets up trips across the world for various interests and this hiking one sounded fantastic. It includes all meals, transportation to/from the airport, lodging and guides for a week. Airfare was not included but the price was reasonable and knowing you’ll be spending time with other folks who have similar interests makes it appealing. Finding friends and family who move at the same pace with the same interests can be difficult and this offers a great way to take a vacation focusing on what you like to do.
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Thanksgiving Day Race In Folsom, CA
November 9th, 2008 categories: Folsom Lake, Jogging, Outdoor Activities, Special Events
Folsom Twin Lakes Food Bank Benefits
Capitol Adventure is once again hosting its Turkey Trot Run to benefit Folsom’s food bank and the community is responding with an enthusiastic yes despite the economic news. This year’s runners will enjoy the trails throughout the Parkway and there will be “chip timing” to accurately gauge the winner and runner ups. This being the land of Intel I’m not surprised that the latest technology in race results would be readily available and I’ve read that it will produce immediate web-based race results.
Folsom is developing quite a reputation for outdoor activities due to the consistently great weather and numerous parks and trails. This past election voted in Ernie Sheldon who has been instrumental in the development of the parks and recreation dept. in Folsom and even has a park named after him! We look forward to more opportunities to enjoy the great outdoors through his leadership.
Another local charity “Coats for Kids” is collecting gently used and new coats to be distributed to children and I am proud to say that my REMAX Gold office is a drop off point for the Folsom community. This is a time sensitive donation and the cut off is NOV 15th. If you have any coats you would like to donate and cannot get to the office please give me a call and I will be happy to pick up any donations you have and place them in the barrels at my office or you can drop them at 2340 E. Bidwell St.
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Latest Statistics for Folsom CA real estate
October 29th, 2008 categories: Folsom Lake, Real Estate
Approximately 25% of current inventory pending a closed sale!
There was an interesting question posed on Trulia today that asked for the latest statistics on Folsom CA real estate and that got my little mind working to see exactly where we are at in the overall scheme of things. Last week, at the SAR board meeting in Folsom, we had a speaker from one of the local brokerages talking about the state of real estate in Folsom and what to expect within the coming year. I did a quick search and found that there were approximately 273 homes for sale and about 72 pending sales as of 10/29/08.
That question got my mind going and I wondered what the cheapest home on the market was which turned out to be a home on Market St. for $165,000. A little 3bedroom, 1 bath, across from Theodore Judah school. The next home was much higher at $194,500 and located across from Blanche Sprentz school on Flower Dr. and happened to be a bank owned home listed by one of my fellow REMAX agents. There are great deals to be had while the interest rates stay below 7% (which won’t last long since the election is next week!) I suggest you take advantage of this market.
Even though money is tight I figured that if a family could manage to come up with 3% down payment of $5700.00 they could qualify to live in the 2nd home with a payment of about $1630.00 per month. That’s not much more than the average rent for a 3bedroom 2bath in Folsom. Granted it’s not a home located in the best part of town but you can paint the walls whatever color you want and no one will argue with you except your teenager! Actually, my kids went to Blanche Sprentz and we lived near there for many years and really enjoyed the neighborhood.
Inventory is constantly changing and the market remains volatile so judging what will happen in the next quarter is a guessing game but I do know that statistically the interest rates will rise after an election. That should get you thinking about making your move so if you need to start touring properties please give me a call and by all means please share this information!
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