How do Realtors earn their compensation

A recent NAR study found that 81 percent of sellers used full-service brokerage, in which real estate agents provide a range of services that include managing most of the process of selling a home from listing to closing. Nine percent chose limited services, which may include discount brokerage, and 9 percent used minimal service, such as simply listing a property on a multiple listing service.

Like home buyers, home sellers rely on referrals and their previous experience when looking for a real estate agent. Thirty-eight percent of sellers were referred to a real estate agent by a friend, neighbor, or relative; 26 percent used an agent with whom they had worked before.

Sixty-seven percent of home sellers contacted only one agent before selecting one to assist with their home sale. While some sellers do contact more than one agent, the significant role of referrals in the selection process is one factor accounting for the large share of sellers contacting only one agent.

What do home sellers want from their real estate professionals? Primarily, sellers want agents to price their home competitively, market the property, find a buyer and sell within a specific time frame. Overall, 21 percent of sellers indicated that what they wanted most from their agent was help pricing their home competitively. Other important considerations were help selling the home within a specific time frame, help finding a buyer, and help marketing to potential buyers.

One of every five sellers wanted each of these services from their agents. As with home buyers, sellers' satisfaction with their real estate agent is high. Eighty-five percent of sellers would definitely or probably use their agent again or recommend their agent to others.

Selling a home in today's housing environment can indeed be challenging. Fortunately, home sellers can rely on the expertise and knowledge of real estate professionals to help.

Mortgage Applications Surge on Falling Rates

Mortgage lenders are seeing a deluge of applications for refinancing as borrowing costs decline due to a recent cut in the federal funds rate by the Federal Reserve, and many are hiring temporary workers or reassigning employees to handle the swelling volume.

Some experts believe the jump in re-fis could signal a turning point in the market and reduce pressure on banks by the U.S. government to bolster lending following the distribution of millions of dollars in assistance. However, it remains uncertain how many borrowers will qualify for loans, how long it will take to process loans under new documentation and credit standards, and whether borrowers will back down in hopes that mortgage rates will fall further. Source: Wall Street Journal, Dan Fitzpatrick (12/22/08)

Is real estate still a good investment?

We all can attest to how much media coverage is currently given the nation’s real estate industry. So much has been said, it sometimes seems that we’ve forgotten that we all need a place to live, and how we provide for that need hasn’t really changed much over time. Owning a home isn’t right for everyone or every situation, as it always has been. However, if one examines the rationale for when purchasing a home makes sense; that also hasn’t changed. Home needs are still there; family growth or reduction, upsizing or downsizing, relocation, vacation homes, etc.

Consider that mortgage rates and programs are still very attractive. The major change is that risky loans and companies who provided them have pretty well gone by the wayside.
Investing in one’s residence has always been one of the stable ways to build financial security. It is important though, to remember that the basic model has always involved holding the property for at least 5 years before attempting to sell for profit. The basic average appreciation rate of 3-6% per year has held for many years.

Nothing has changed. In today's world, investing in property is still a viable means to enhance a person’s financial portfolio. Throughout the last 50 years there have always been periods of slower or faster appreciation. The last 7 years has exhibited one such extreme growth and correction cycle. If you bought early during that period and held, you have achieved approximately the basically 4% per year appreciation (including the recent downturn). If you bought later and hold for the normal time you should also do fine.

The real problem has come to those trying to make quick profit and got caught in the down period of the last 2 years. Given the complexity of buying or selling in today’s market the best advice is to ask a real estate professional to assist from the beginning concept if possible.
When considering perhaps the largest investment in your future, it makes good sense to get professional help. By the way Realtors usually provide this service free of cost to buyers, and at low cost to sellers.