Hilton Head Island Real Estate ~ Buyer's Agent/Seller's Agent

Buyer's Agent/Seller's Agent - What's the difference and why would you need a Buyer's Agent. This article provides a straight forward explanation of both and why it's a good idea to have a Buyer's Agent.

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Buyer's Agent/Seller's Agent

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What’s The Difference?

Until recently, the line separating a buyer's agent from a seller's agent was fine, indeed. In fact, the traditional buyer's agent (also called a sub-agent) has a greater legal obligation to an individual selling a property than the one trying to buy it. But a new breed of agent has appeared on the market over the past several years, one committed exclusively to the best interests of the buyer.

The Buyer's Agent: A New Breed

Whether retained for a fee or paid a percentage of commission, this new breed of buyer's agent is contractually bound (for a negotiated length of time) to help clients realize the best possible price and terms when purchasing real estate. While traditional sub-agents and their newest offspring are both responsible for viewing properties, evaluating neighborhoods and offering expert advice on services such as property inspection and mortgage lending, the advantages of contracting with an exclusive buyer's agent are readily apparent:

• Ability to disclose "inside" information about the seller's position that the sub-agent cannot legally divulge. Such information can benefit the buyer when making an offer to purchase real estate.
• The buyer's agent can work for the lowest sale price while the sub-agent legally cannot.
• Buyer will not be under pressure to purchase any particular property since all sales will be commissioned under terms of the exclusivity contract.
• The agent's expertise in real estate can help a client comfortably negotiate the purchase and sales process.

Despite such benefits, some experts still recommend using sub-agents, if only for the flexibility they afford. Since sub-agents don't work under contract, the buyer is free to work with a number of agents while property hunting. The sub-agent also has a leg-up in a hot real estate market thanks to a non-adversarial relationship with the seller's agent. After all, both are legally obligated to the selling party, and the selling party will ultimately decide which buyer prevails in a real-estate bidding war.

Selling or Listing Agent

More straightforward is the selling, or listing, agent. Employed by a real estate firm, this agent works with the seller to establish an appropriate sale price for the home then markets that property, usually through a multiple listing service.
In any real estate office, each agent works hard to sell their company's listed properties and each is paid only if the home is sold, taking their commission on a percentage of the final sale. If the selling agent fails to produce a buyer for their client within the negotiated time frame, the seller may pull the property listing and contract with another real estate company.


The Richardson Group has been selling Hilton Head realestate and Bluffton Real Estate since 1956. Currently, our agents share 150 years of local residency, along with a deep commitment to the people and places that make the area unique. We have two different locations, one in Hilton Head and the other in Bluffton. We specialize in helping you find homes for sale inHilton Head.

Hilton Head Island Real Estate and Foreclosure Myths

Great article on 5 foreclosure myths. I can't tell you how many times we've heard people talking about all of these myths.

5 Foreclosure Myths for 2012

Beginning in 2007, foreclosures rocked the real estate world. Like an out-of-control freight train, they began decimating the market, peaking in 2009. Myths and rumorsbegan propagating like mushrooms as consumers struggled to understand the new reality. Although many misconceptions have come and gone, we still encounter five myths on a regular basis.

1. There is going to be a flood of new foreclosures to the market.

This rumor has appeared every year since 2008 and has been routinely debunked. However, recent announcements that the Feds reached a settlement over the robo-signing scandal have reignited speculation. The idea is simple: Since the cork is now out of the foreclosure bottle, we’ll soon see another flood of REOs inundating the marketplace.
My personal opinion: don’t hold your breath.
Banks have learned that if they control inventory, they can affect local prices. By releasing homes in measured amounts, they realize higher prices than if they released a glut of homes. In addition, they’ve learned that if they can mitigate their losses by agreeing to a short sale, everyone wins.

2. You can go directly to a bank to buy a foreclosure.

Every few weeks I’m asked how to buy foreclosures direct from a bank. Someone knows a friend being foreclosed on and they want to step in and grab the house before it hits the market. Don’t we all? In reality, banks have a simple system – they first offer properties on the courthouse steps. The rest they assign to asset mangers who then hire local real estate agents to put them on the market along with all the other homes. Want an REO? Pay cash at the courthouse steps or get in line witheveryone else when they hit the local MLS (Multiple Listing Service).

3. You can get a killer deal by submitting lowball offers on foreclosures.

You would think this myth would be dead by now. Unfortunately, like Elvis sightings, it just won’t go away. Here’s the truth: Banks want REOs sold in 30 days or less, so they typically appear on the market priced slightly under comparable properties. If the property doesn’t sell quickly, the bank will lower the price after about 30 days. Lowball offers are ignored and are, quite frankly, a waste of everyone’s time and effort. You might get a deal by offering a lower price on a foreclosure that’s been sitting on the market for more than 90 days, but remember that there are good reasons it’s gone unsold for so long. And even if you have cash, your lowball offer won’t be accepted —seriously.

4. You can’t use foreclosures when doing an appraisal.

Or short sales, for that matter. That is no longer true. In fact, in many neighborhoods, that’s all that’s there. Therefore, foreclosed or distressed sales represent the actual value of homes in the area and HAVE to be used to appraise other properties. Don’t like it? Get over it. Times have changed and the ways neighborhoods are valued have changed as well.

5. Foreclosures are only affecting the bottom end of the market.

This used to be true. However, while foreclosure rates on the lower end of the market have actually decreased, they’re actually increasing on the upper end. According to Daren Blomquist, vice president of RealtyTrac, the market share of foreclosed homes under $1 million is shrinking, but those among properties valued over $1 million are rising – up 115% since 2007. And foreclosures on properties valued upwards of $2 million have increased by 273%. While some well-known jet-setters have melted down and lost everything, others are choosing to strategically default. They see it like liquidating a poorly performing portfolio – they have enough resources to cut their losses and move on. Historically, banks have been reticent to foreclose high-end homes and absorb a large loss, but defaulters are now forcing their hands and mansion foreclosure rates are moving on up.
Myths control behavior, and this has never been truer than in the housing market. Savvy agents will work hard to educate their clients, debunk myths, explain market trends, educate with solid facts – and actually close transactions.

 

 The Richardson Group has been selling Hilton Head realestate and Bluffton Real Estate since 1956. Currently, our agents share 150 years of local residency, along with a deep commitment to the people and places that make the area unique. We have two different locations, one in Hilton Head and the other in Bluffton. We specialize in helping you find homes for sale inHilton Head.

Great Article in the Wall Street Journal ~ Home Prices Hitting Bottom. Now, the Bad News

Yea! Home Prices Hitting Bottom. Now, the Bad News.

By BRETT ARENDS

This is a great time to buy a home in many parts of the country. There are signs that the downward price spiral is bottoming out. Mortgage rates are at historic lows.
The next few years could well be remembered as the best opportunity for Americans to buy homes since the postwar baby boom.
But one group's opportunity is another group's problem. Tens of millions of baby boomers and other home owners have seen their equity shrunken or wiped out completely. Many were counting on their homes to help finance their retirements. Often they have been waiting for years for the market to turn. Now they find themselves on the short end of the deal, sellers into the buyer's market of the century.

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"It's a really challenging environment to be a seller," says Lawrence Glazer, wealth adviser at Mayflower Advisors in Boston. "Unfortunately, many people planning to retire may have no choice."
So what if you are on the wrong side of the trade? As ever, there isn't a single, simple answer, but if you're in this situation, here's a checklist to help you out.
1. Don't hold your breath.
Yes, house prices nationwide have stabilized. Of the 20 cities tracked by the Standard & Poor's/Case-Shiller Home Price index, 16 are in the black for this year. But the housing market isn't like the stock market. Bouncebacks are typically slow.
The last crash took more than a decade to work through—and this market could take an especially long time because the huge accumulation of empty, foreclosed houses will hold down prices for all properties.
When adjusted for inflation, the Case-Shiller index didn't return to its 1989 peak until 2000. Some markets, such as New York and Los Angeles, didn't hit new highs until 2002. This time may be even worse because the bubble was much, much bigger. Some locations may not recover their inflation-adjusted peak in our lifetimes.

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Dongyun Lee

Harvard's Joint Center for Housing Studies calculates that there is a backlog of around two million home loans in foreclosure, waiting to come onto the market. Some estimates put the number much higher, especially when you include "shadow inventory" held back by banks.
Unless you are willing to wait for a long time, you may not want to get too hung up waiting for a big rebound.
2. Look at your local market.
As the housing market recovers, expect to welcome back the old Realtor's adage: Location, location, location.
Don't expect all markets to rise at the same rate. According to Case-Shiller, Phoenix home prices are up 9% in a year. Meanwhile, Atlanta is down 17% and New York is down 4%.
Where will prices go from here? That's likely to depend on two factors: rents and valuations. If it's cheaper to own than to rent, and rents in your neighborhood are rising, you can expect prices to rise in due course. If it's cheaper to rent, or if rents are stagnant, it's another matter.
3. Be realistic.
The true value of your home isn't what you paid or refinanced for in 2006, but what it's worth now. And the true value of your equity isn't what you put into the home, it's what you would get if you sold it.
Money spent on that new kitchen? Irrelevant. The pool? Ditto. Too many investors get hung up on past or "sunk" costs. Don't hang around until you "get your money back." That money is gone.
4. Know your 'negative equity.'
Harvard's Joint Center estimates that 11 million American home owners are underwater on their mortgages—in other words, the loan is worth more than the home. Housing-data company Zillow puts the figure closer to 16 million—nearly one mortgage in three.


The Richardson Group has been selling Hilton Head realestate and Bluffton Real Estate since 1956. Currently, our agents share 150 years of local residency, along with a deep commitment to the people and places that make the area unique. We have two different locations, one in Hilton Head and the other in Bluffton. We specialize in helping you find homes for sale inHilton Head.