A Low Buyers Agent Commission Can Equal Less Listing Exposure

House for Sale Sign - Commission Impacts Listing Exposure

But Maybe You Get What You Pay For

This debate has resurfaced lately, which is not surprising considering the sellers market we’re in, bidding wars occurring in many cities, and the return of the “1% brokerage”. It’s true that real estate agents are bound to serve the best interests of their clients, but no one should expect agents to work for free.
Some homes with very low buyers agent commission splits may get fewer showings, but most believe this is something that will naturally self-correct as the market and commissions fluctuate.

Read the full Washington Post real estate article here.

N.A.R. Says 2015 Will Be Best Home Sale Year Since 2006

NAR Report on 2015 Home Sales Estimate - Highest Since 2006

“There is sizeable pent-up demand.” – N.A.R.’s Chief Economist Yun

It seems the U.S. real estate market can finally breathe a sigh of relief about the economy in relation to existing home sale volumes. The National Association of REALTORS® released their mid year forecast this week, and it shows 2015 on pace to have the highest sales volume of existing homes since 2006. Indicators mentioned by N.A.R.’s Chief Economist Lawrence Yun include actual sales volumes so far this year, foot traffic at listings, and strong job growth.

New construction still lags behind at 50% of normal volume, but 2015 will be the first year in the recovery that single family home starts outpace multifamily/apartment unit construction.

Read the full real estate article here.

Even with Bidding Wars Prices May Actually Be Peaking in 50% of U.S. Markets

Real Estate Bidding Wars - Low Inventory - Peaking Home Prices - Market Updates from Z57

Still a Seller’s Market for Now, but the Big Investors are Out

The hottest real estate markets are experiencing multiple-offer biding wars and inventories are still low, but things may be turning on at least some levels. 50% of U.S. markets may have even seen their home price peaks in March of 2015, particularly Colorado, New York, Tennessee and Texas.

Homes at the lower-end of the market are still seeing prices rise steeply, but this has also led cash investors to pull back from the heavy investing they’ve been doing for the past several years. All cash purchases have hit a 4 year low so that large influx of investment capital is now returning to more normal levels.

Read the full real estate market update here.

Banks Keep Up Strict Standards for Mortgage Credit Scores

Credit Scores for U.S. Mortgages 2009 to 2015 - Banks Stay Strict in 2015 Q1

Even After the Fed Encourages Relaxed Standards

The Fed released new guidelines for banks who back Fannie Mae and Freddie Mac mortgages, now focusing on patterns of bad loans rather than individual loans that may not quite make the grade. Despite this, “Only a few banks indicated that they had changed their lending policies in response to the new guidelines.” according to a survey done by the Fed of senior loan officers.

Credit scores remain high for the average federally-backed mortgage in 2015 Q1, showing that most banks aren’t ready to take the same risks they did before the housing bubble. See the full mortgage article here.

Fixing Fannie Mae and Freddie Mac

For Sale by Fannie Mae - Z57 Real Estate News Post

Finding a Longer Term Solution for the Mortgage Market

The U.S. government bailed out Fannie Mae and Freddie Mac in the financial meltdown of 2008. They’re out of the red now, but the current system leaves virtually no capital backing $5 trillion in credit risk. This leaves taxpayers on the hook should anything go wrong (again), so we wait on Congress to take action and provide a way for Fannie and Freddie to build up capital.

Read the full mortgage article by financial services executive and analyst John Burnett.

The Qualities of a Successful Real Estate Professional

Multi-Tasking Successful Real Estate Agent

How Do You Measure Up on These Top Ten Traits?

Even if you have the desire to make a living as a real estate agent and already have a network of contacts you can work, these are not enough on their own to produce a good income year after year. Z57 real estate agents and Brokers receive ongoing marketing training, recommendations on what will work to reach their target clients, and the support of ever-improving technology tools that help them stay in front of their prospects and referral network.

Are you working on improving key qualities that make the best real estate agents so successful? Here are the top 10 traits of a great real estate professional.

Mortgage Choice Act Passes House, to Increase Access to Mortgages!

US Congress Passes Mortgage Choice Act 4-16-2015

NAR Says This is a Good Thing for Home Buyers

Making mortgages more accessible for home buyers is important to keep the real estate market moving. The U.S. House of Representatives passing the Mortgage Choice Act helps clarify rules that went into effect last year designed to safeguard borrowers from risky mortgages.

Once this act passes the Senate, then consumers will be less restricted in their choice of mortgage brokers.

See the full mortgage news article and comments by NAR here.