Brokers and their agents are always trying to find better ways to serve our clients. Over a hundred years ago the members of my profession would gather on a regular basis to share information about their new listings and they had agreed to split the commission with another broker if they could bring them a buyer. It was the beginning of the Multiple Listing Service, a phrase created somewhere near the end of the nineteenth century. During the first half of the twentieth century, the process became more formalized. But when I first started in real estate in 1991, commercial agents and brokers in my area would meet for breakfast every Tuesday morning at the local Denny’s. I would sit in awe of those agents as they would broker deals. A gas station would be sold for money, a boat, and a duplex. Did anybody have a lead on an industrial site? A client of another agent was looking for tear-downs.
In some ways agents still conduct business like this. We get together weekly to see the new listings and discuss what our buyers are looking for. We all know that our clients are better served when we share information. To the outside world it looks as though we eat, sleep, and drink real estate. What we are really doing is looking out for our clients.
Multiple Listing Services eventually became separate entities from the Realtor boards that created them. They eventually published books each week with the latest information. In the nineties we went computerized. The information, however, was still input by someone at the MLS. Here in Southern California we have what is called a “broker loaded” MLS. That means that the information is loaded by the broker or an authorized licensed agent. We keep tight controls on just who has access and we fine agents for not following the rules.
Most Multiple Listing Services are Realtor owned, but not all of them. Only those that are Realtor owned automatically load into the Realtor.com website. The site has been up and running for several years now with great success. The public information portion of our listings can now be viewed by millions of people around the world. It has become a valuable tool for agents and brokers.
But success breeds jealousy. Realtor.com and its power are coveted by those who are not necessarily interested in maintaining its integrity. To be an agent requires education and training. To become a Realtor one must adhere to an ethical code. To place an ad in a Multiple Listing Service you must be both a licensed agent and a member of the National Association of Realtors. Do it yourselfers would like to skip those requirements and utilize an industry tool that has taken over a century to create.
To this end the FTC filed suit over a year ago against 7 MLS’s for anticompetive conduct. Several of the services just gave in. But a Detroit area MLS decided to fight. On Thursday, the FTC ruled against itself. The bottom line for the FTC is how well is the consumer served? By not allowing For Sale By Owners to use the local Multiple Listing Service is the consumer, in this case a buyer, hurt? No, said the judge.
I would argue that allowing FSBO’s to use the MLS would hurt buyers. Contrary to popular belief, the vast majority of our profession is concerned with fairness and honesty. We are held accountable for our business practices by others in our profession, by our national, state, and local Realtor’s associations, and by the state and federal government. Owners selling on their own are only accountable to state and federal laws, if someone files a complaint. They are not audited as we are. They are in it for the one deal, not for a career. It is one thing to share between professionals; it is another to allow armatures to take over an industry tool. If that tool becomes unreliable, then everyone looses.
Permalink Comments
Thursday, September 20, 2012
Buyers’ Agency
What was created to protect the buyer has become a nightmare for agents. If we show you property - we represent you. We have no choice in the matter. But just because we’ve done all that hard work, doesn’t mean we will get paid. On the contrary, we are now at the mercy of the buyer. We can spend countless hours showing property and gathering information for people who will turn around and give the money to someone else.
Last Sunday, the LA Times printed an article entitled “Agents want a little loyalty”. I can certainly understand the sentiment. Many agents refuse to work with buyers for that very reason. Still, there are some of us who only work with buyers. But the vast majority of agents who work with buyers are the new agents. They don’t have any choice and can waste hours upon hours of their time with buyers that have no loyalty.
When people walk into one of my open houses and I ask if they have an agent, it’s because I don’t want to steal someone’s client. This is my full-time business. I didn’t just get in the business nor do I intend to leave tomorrow. I work with the other agents in my MLS with a sense of cooperation.
In the Times article it refers to buyer loyalty contracts. The California Association of Realtors has three different ones. So far, I haven’t asked my clients to sign any of them. I try to offer enough buyer services for both before and after the offer is written so that my buyers feel they are best served by writing their offers through me.
That’s another part of the argument. Buyer’s agency should consist of more than just showing property. It is research to find the right property at the right price. So far I haven’t needed to request loyalty up front; I’ve been allowed to earn it.
Last Sunday, the LA Times printed an article entitled “Agents want a little loyalty”. I can certainly understand the sentiment. Many agents refuse to work with buyers for that very reason. Still, there are some of us who only work with buyers. But the vast majority of agents who work with buyers are the new agents. They don’t have any choice and can waste hours upon hours of their time with buyers that have no loyalty.
When people walk into one of my open houses and I ask if they have an agent, it’s because I don’t want to steal someone’s client. This is my full-time business. I didn’t just get in the business nor do I intend to leave tomorrow. I work with the other agents in my MLS with a sense of cooperation.
In the Times article it refers to buyer loyalty contracts. The California Association of Realtors has three different ones. So far, I haven’t asked my clients to sign any of them. I try to offer enough buyer services for both before and after the offer is written so that my buyers feel they are best served by writing their offers through me.
That’s another part of the argument. Buyer’s agency should consist of more than just showing property. It is research to find the right property at the right price. So far I haven’t needed to request loyalty up front; I’ve been allowed to earn it.
The Heros of Fort Myers
Mary Pat Troups is my newest hero. She is fighting for those of us who don’t want our children to spend a fortune to inherit what is rightfully theirs. What other lawyers have created, Mary Pat wants to undo. She is fighting for a simpler way to document who gets what after we die. It’s called a Revocable Transfer on Death (TOD).
The proposed “revocable transfer on death deed,” or TOD deed, is aimed at giving homeowners a simple, inexpensive and secure method of handing down property, rather than retaining lawyers to create trusts or guide heirs through the probate system. Elderly people and others with little disposable cash but relatively large accumulated equity in their homes are expected to capitalize most on the option.
LA Times http://www.latimes.com/classified/realestate/news/la-re-probate4nov04,0,863848.story?track=rss
What can we do? We can contact our state representatives and tell them we want what 9 other states already have – a reasonable way to transfer property to our heirs.
The proposed “revocable transfer on death deed,” or TOD deed, is aimed at giving homeowners a simple, inexpensive and secure method of handing down property, rather than retaining lawyers to create trusts or guide heirs through the probate system. Elderly people and others with little disposable cash but relatively large accumulated equity in their homes are expected to capitalize most on the option.
LA Times http://www.latimes.com/classified/realestate/news/la-re-probate4nov04,0,863848.story?track=rss
What can we do? We can contact our state representatives and tell them we want what 9 other states already have – a reasonable way to transfer property to our heirs.
Whoof, whoof
Early on in my career, I had driven out to a hillside property to meet some clients. Before I could get out of my car, two Dobermans came out of the side yard and started to bark, loudly, at the car. My clients arrived a couple of minutes later and found themselves also trapped inside their car. I called the owners on my cell phone, to no answer. They hadn’t answered their phone earlier and there was no mention of the dogs in the listing. After about 5 minutes, that seemed more like an hour, one of the owners came strolling down the front steps and herded up the dogs. My clients barely looked at that house, they bought another. It was a cute house, priced right, but after 9 months on the market it failed to sell.Several years later, I was showing property to a young woman who had been a floor call the day before. She was a daddy’s girl with enough money to pay cash for her house. Accompanying her was a friend who was 7 months pregnant. The companion had a long scar down one cheek she had received as a girl when she was attacked and almost killed by a dog. None of the homes we were to view mentioned any pets. The third house on our tour was the only house where I had been unable to get a hold of either the agent or the owners, but it was a knock and show. We went in and my client went bouncing off to look at the bedrooms. I slowly made my way through the living room followed by the companion. I turned and found my self in a kitchen, beyond which was a small family room. As I approached the family room I noticed two statutes of dogs. Huh oh, I thought to myself. Where there are pictures and statutes of dogs, there are usually the real thing. One of them was a very shiny depiction of a pug-nosed; the other was almost as tall as me: a hound sitting on his hind legs. I walked to the end of the family room, looked out the window for the view, turned around to approach the pregnant woman a few steps in front of me, and that’s when our eyes locked – the hound was no statue.
I looked forward, to the pregnant woman, with visions of a premature labor, and continued walking at the same slow, steady pace. When I reached the woman I took her by the arm, said, quietly, “We are leaving now”, and marched her out of the room. When we entered the living room, my client came bounding out of the hallway to the bedrooms. I took her with my other arm, said, quietly, “We are leaving, now”, and marched them both out the front door. I let go of the women, turn, quickly closed and locked the front door, turned back around and said, “dog”. My client shrugged her shoulders, turned, and went skipping to the car. I caught the pregnant woman, who was now shaking, and steadied her back to the vehicle.
Putting information about your pets on a listing shows respect for those animals. Show your pride in these beloved family members – mention them on the listing form.
Sacramento Mortgage Rate Update
Experian Report Reveals Surprises About Sub Prime Borrowers »
This entry was posted on Saturday, April 14th, 2007 at 11:00 am and is filed under 100% Financing, 1st X Buyer, Mortgage Programs, Mortgage Rates, Qualifying. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
8 Responses to “Safe 100% Financing with “MyCommunity Mortgage””
Brian Brady Says:
April 26th, 2007 at 10:26 pm
I saw that Flagstar recently withdrew it’s MyCommunity product. Has FNMA cancelled it?
Marc Says:
April 27th, 2007 at 9:46 am
As of yesterday it was still around. I’ll double check, but with the agencies working to come up with sub-prime bailout loans, I can’t see them taking this one off the table Brian.
Thanks for your excellent hard money presentation the other day. Good stuff!
Marc
Marc Brinitzer Says:
May 1st, 2007 at 12:58 pm
MyCommunity is alive and well Brian
aldon bordenave Says:
September 20th, 2007 at 4:28 pm
for the My Community Program do both my wife and I need a 620 credit score. her income is less than 50% of our total income.
Marc Brinitzer Says:
September 20th, 2007 at 4:35 pm
That’s a good question Aldon. Normally, lender take their cue from the lower of you and your wife’s middle scores, and this seems to be the way the MyCommunity guidelines read. There are some exceptions to this rule however, so I should check on that and get back to you.
What area do you live in?
LendingClarity.com » Blog Archive » 100% Financing: Freddie Mac’s HomePossible Says:
September 25th, 2007 at 6:46 pm
[…] Fannie Mae’s initiative is called MyCommunity Mortgage and I wrote a previous article about that. Freddie Mac has something similar called Home Possible. Here are a few highlights: […]
Glenn Johnson Says:
October 30th, 2007 at 9:39 am
Can the MyCommunity program be used for property rehab?
Marc Says:
October 30th, 2007 at 9:47 am
Glenn,
Interesting that you ask. Actually, MyCommunity does have a “rehab” program. Stay tuned for a short article on that topic.
I was recently looking for the old FHA 203(k) rehab product, but I can’t find a lender yet willing to do them again. They were messy affairs with lots of moving parts.
Fannie Mae, Freddie Mac, and MyCommunity all offer rehab loans, and I’ll be comparing them in an upcoming post.
This entry was posted on Saturday, April 14th, 2007 at 11:00 am and is filed under 100% Financing, 1st X Buyer, Mortgage Programs, Mortgage Rates, Qualifying. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
8 Responses to “Safe 100% Financing with “MyCommunity Mortgage””
Brian Brady Says:
April 26th, 2007 at 10:26 pm
I saw that Flagstar recently withdrew it’s MyCommunity product. Has FNMA cancelled it?
Marc Says:
April 27th, 2007 at 9:46 am
As of yesterday it was still around. I’ll double check, but with the agencies working to come up with sub-prime bailout loans, I can’t see them taking this one off the table Brian.
Thanks for your excellent hard money presentation the other day. Good stuff!
Marc
Marc Brinitzer Says:
May 1st, 2007 at 12:58 pm
MyCommunity is alive and well Brian
aldon bordenave Says:
September 20th, 2007 at 4:28 pm
for the My Community Program do both my wife and I need a 620 credit score. her income is less than 50% of our total income.
Marc Brinitzer Says:
September 20th, 2007 at 4:35 pm
That’s a good question Aldon. Normally, lender take their cue from the lower of you and your wife’s middle scores, and this seems to be the way the MyCommunity guidelines read. There are some exceptions to this rule however, so I should check on that and get back to you.
What area do you live in?
LendingClarity.com » Blog Archive » 100% Financing: Freddie Mac’s HomePossible Says:
September 25th, 2007 at 6:46 pm
[…] Fannie Mae’s initiative is called MyCommunity Mortgage and I wrote a previous article about that. Freddie Mac has something similar called Home Possible. Here are a few highlights: […]
Glenn Johnson Says:
October 30th, 2007 at 9:39 am
Can the MyCommunity program be used for property rehab?
Marc Says:
October 30th, 2007 at 9:47 am
Glenn,
Interesting that you ask. Actually, MyCommunity does have a “rehab” program. Stay tuned for a short article on that topic.
I was recently looking for the old FHA 203(k) rehab product, but I can’t find a lender yet willing to do them again. They were messy affairs with lots of moving parts.
Fannie Mae, Freddie Mac, and MyCommunity all offer rehab loans, and I’ll be comparing them in an upcoming post.
SAFE 100% FINANCING WITH “MYCOMMUNITY MORTGAGE” IN FORT MYERS
I recently wrote about FHA Access, a wonderful and safe way to obtain 103% financing. With 100% financing becoming more scarce every day, I?ve been rechecking guidelines for traditional 100% loan programs. I?ve done plenty of FHA, VA and 100% agency loans, but that was years ago, and it?s time now to reconsider programs that promote sustainable homeownership while helping borrowers who qualify but lack a down payment.
I want to share a few highlights from my conversation yesterday with an underwriter about Fannie Mae?s MyCommunity Mortgage?. This program isn?t new, but it does require that borrowers prove income. At the peak of our market here in California, people were buying homes for which they weren?t qualified?at least in traditional underwriting terms. That?s an interesting comment all by itself, isn't it.
The link above to MyCommunity Mortgage? is 6 months old, and Fannie Mae is nationwide. The rules can vary by state or by a particular wholesaler?s agreement with the agencies, so I called to update myself on the current local guidelines and pricing.
Others have blogged this topic and the Fannie Mae link will get you to the general stuff, so I?m going to restrict my comments to points I don?t see made elsewhere. Some of the issues?income limits and the interest-only option?are not covered on the Fannie Mae site, so I?m going to confirm them on Monday. And keep in mind that what follows applies to the use of MyCommunity Mortgage for 100% financing.
MyCommunity Mortgage Highlights
Single family homes only (no 2?4 units or manufactured homes)
Purchase and rate and term refi?s (no cash out refis)
DU approved (manual underwriting can be requested)
620 minimum Fico (alternative credit?landlord rating, utility bills, etc.)
Alternative credit ok with manual underwriting
Interest-only option on the 30 year fixed and 5/1 arm (not on the 7/1 or 10/1 arm)
California income limits = 140% of the median income (120% for Oregon and Washington
41% total DTI (debt to income) ratios allowed
45?50% total DTI if the borrower is a teacher, police, firefighter, or public health worker
2 months reserves requirement if ratios are >41%
Mortgage insurance factor is .59% on 100% LTV (this is really low for 100% LTV)
Expect to pay .5% over the regular 30 year fixed rate, higher still for interest-only
Got a Comment? Please leave it below.
Got a Questions? Send me an email; I?ll answer it right away.
Get Pre-qualified for a loan? Click here.
I want to share a few highlights from my conversation yesterday with an underwriter about Fannie Mae?s MyCommunity Mortgage?. This program isn?t new, but it does require that borrowers prove income. At the peak of our market here in California, people were buying homes for which they weren?t qualified?at least in traditional underwriting terms. That?s an interesting comment all by itself, isn't it.
The link above to MyCommunity Mortgage? is 6 months old, and Fannie Mae is nationwide. The rules can vary by state or by a particular wholesaler?s agreement with the agencies, so I called to update myself on the current local guidelines and pricing.
Others have blogged this topic and the Fannie Mae link will get you to the general stuff, so I?m going to restrict my comments to points I don?t see made elsewhere. Some of the issues?income limits and the interest-only option?are not covered on the Fannie Mae site, so I?m going to confirm them on Monday. And keep in mind that what follows applies to the use of MyCommunity Mortgage for 100% financing.
MyCommunity Mortgage Highlights
Single family homes only (no 2?4 units or manufactured homes)
Purchase and rate and term refi?s (no cash out refis)
DU approved (manual underwriting can be requested)
620 minimum Fico (alternative credit?landlord rating, utility bills, etc.)
Alternative credit ok with manual underwriting
Interest-only option on the 30 year fixed and 5/1 arm (not on the 7/1 or 10/1 arm)
California income limits = 140% of the median income (120% for Oregon and Washington
41% total DTI (debt to income) ratios allowed
45?50% total DTI if the borrower is a teacher, police, firefighter, or public health worker
2 months reserves requirement if ratios are >41%
Mortgage insurance factor is .59% on 100% LTV (this is really low for 100% LTV)
Expect to pay .5% over the regular 30 year fixed rate, higher still for interest-only
Got a Comment? Please leave it below.
Got a Questions? Send me an email; I?ll answer it right away.
Get Pre-qualified for a loan? Click here.
Report Reveals Surprises About Sub Prime Borrowers
Is California Saturated With Real Estate Agents? »
This entry was posted on Tuesday, April 17th, 2007 at 3:09 pm and is filed under Interest-Only, Mortgage Programs, Mortgage Rates, Subprime Meltdown. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
4 Responses to “Mortgage Giants To Rescue Distressed Borrowers”
Mike Says:
April 17th, 2007 at 3:18 pm
The greed from everyone jumping into the housing boom over the last 5 years created artificially inflated house prices. Investors account for nearly 26-30%(maybe more if we knew the real story) of the purchasing of these subprime mortgages trying to ‘get rich quick’. The rest of the mortgages were purchased by just about everyone with the same mindset of, “I got to get in while the getting is good”.
A correction in the housing market is absolutely necessary. Home prices are beyond the affordability of the average paycheck and it’s destroying our quality of life. In some areas like San Diego, affordability runs at 8-12% of the population can afford a ‘MEDIAN’ priced home.
Investment is a risk. The problem became that there were so many wan-a-be millionaires, like your neighbor who took out an equity loan on his house to buy another, that drove the market higher and higher. I am sure they would be laughing all the way to the bank if they made the right decision. However, it was their ‘choice’. Their risk and it’s their responsibility to bear the pain of their mistakes.
Let the market fall back to a reasonable level of affordability, period.
Marc Says:
April 17th, 2007 at 7:30 pm
Mike,
I agree with you that greed took hold. Even first time buyers had dollar signs in their eyes in the last few years. Every one had developed a short-term mentality. Flippers replaced day traders in the latest get rich quick gold rush.
When will people learn?
This entry was posted on Tuesday, April 17th, 2007 at 3:09 pm and is filed under Interest-Only, Mortgage Programs, Mortgage Rates, Subprime Meltdown. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
4 Responses to “Mortgage Giants To Rescue Distressed Borrowers”
Mike Says:
April 17th, 2007 at 3:18 pm
The greed from everyone jumping into the housing boom over the last 5 years created artificially inflated house prices. Investors account for nearly 26-30%(maybe more if we knew the real story) of the purchasing of these subprime mortgages trying to ‘get rich quick’. The rest of the mortgages were purchased by just about everyone with the same mindset of, “I got to get in while the getting is good”.
A correction in the housing market is absolutely necessary. Home prices are beyond the affordability of the average paycheck and it’s destroying our quality of life. In some areas like San Diego, affordability runs at 8-12% of the population can afford a ‘MEDIAN’ priced home.
Investment is a risk. The problem became that there were so many wan-a-be millionaires, like your neighbor who took out an equity loan on his house to buy another, that drove the market higher and higher. I am sure they would be laughing all the way to the bank if they made the right decision. However, it was their ‘choice’. Their risk and it’s their responsibility to bear the pain of their mistakes.
Let the market fall back to a reasonable level of affordability, period.
Marc Says:
April 17th, 2007 at 7:30 pm
Mike,
I agree with you that greed took hold. Even first time buyers had dollar signs in their eyes in the last few years. Every one had developed a short-term mentality. Flippers replaced day traders in the latest get rich quick gold rush.
When will people learn?
LOAN CITY BITES THE DUST
Today’s announcement, posted on their website, entirely unexpected…
LoanCity is closed for business. Today March 20, 2007 is the last day we will be funding loans. To our customers, our staff and business partners - we thank you.
There are many people finding out as they near the close of escrow that they don’t have loans after all. What could be more unsettling than that?
Does your lender have the knowledge and experience to steer you away from trouble and weak lenders?
Got a question or concern? Email me.
LoanCity is closed for business. Today March 20, 2007 is the last day we will be funding loans. To our customers, our staff and business partners - we thank you.
There are many people finding out as they near the close of escrow that they don’t have loans after all. What could be more unsettling than that?
Does your lender have the knowledge and experience to steer you away from trouble and weak lenders?
Got a question or concern? Email me.
Wells Fargo
« Wells Fargo Slashes More Subprime Jobs, Heads for the Exits
Sacramento Mortgage Rate Update »
This entry was posted on Monday, March 26th, 2007 at 9:46 pm and is filed under Flipping, Rants, Sac Real Estate, Subprime Meltdown, True Stories. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
3 Responses to “I Thought Flippers Were Out of Business!”
SinCityGr8One Says:
April 11th, 2007 at 5:15 pm
They are total IDIOTS! $12K for an OnLine school? P.T. Barnum said there was a Sucker born every minute!Let them find out the hard way. They’ll get a NOD on their O/O property and someone will pick it up for 75-80 cents on the Dollar. You just can’t feel bad for IDIOTS!
Marc Brinitzer Says:
April 11th, 2007 at 5:26 pm
SinCity,
Unfortunately, you’ve predicted an entirely plausible outcome for these folks. In our haste to assess blame, let’s remember that not all consumers are innocent victims.
In my experience, more are victims of their own desire to hear and believe what they want to hear and believe. Sure, all your friends got 6%, but you get 1% because you’re just so special. What ever happened to common sense?
Catherine Coy Says:
July 1st, 2008 at 2:01 pm
**Sure, all your friends got 6%, but you get 1% because you’re just so special.**
Makes me laugh, but they (the special borrowers) are getting away with it. Such a rebuttal now forms the basis of their defense.
http://www.cnbc.com/id/25461975
Sacramento Mortgage Rate Update »
This entry was posted on Monday, March 26th, 2007 at 9:46 pm and is filed under Flipping, Rants, Sac Real Estate, Subprime Meltdown, True Stories. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
3 Responses to “I Thought Flippers Were Out of Business!”
SinCityGr8One Says:
April 11th, 2007 at 5:15 pm
They are total IDIOTS! $12K for an OnLine school? P.T. Barnum said there was a Sucker born every minute!Let them find out the hard way. They’ll get a NOD on their O/O property and someone will pick it up for 75-80 cents on the Dollar. You just can’t feel bad for IDIOTS!
Marc Brinitzer Says:
April 11th, 2007 at 5:26 pm
SinCity,
Unfortunately, you’ve predicted an entirely plausible outcome for these folks. In our haste to assess blame, let’s remember that not all consumers are innocent victims.
In my experience, more are victims of their own desire to hear and believe what they want to hear and believe. Sure, all your friends got 6%, but you get 1% because you’re just so special. What ever happened to common sense?
Catherine Coy Says:
July 1st, 2008 at 2:01 pm
**Sure, all your friends got 6%, but you get 1% because you’re just so special.**
Makes me laugh, but they (the special borrowers) are getting away with it. Such a rebuttal now forms the basis of their defense.
http://www.cnbc.com/id/25461975
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