Brokers Blog

Home agents can increase their income by helping troubled homeowners in the pre-foreclosure stage. According to real estate associations, the pre-foreclosure market is another big market for real estate agents because there are more than 1 million mortgages in various stages of pre-foreclosure.

The pre-foreclosure market also provides opportunities for real estate agents to help other people and at the same time earn commissions because majority of distressed homeowners do not know that they have other options when they receive their notices of default.

Agents can also help lenders reduce their losses from foreclosure and make this loss reduction benefit a leverage when they negotiate with lenders concerning short sales.

Mortgage firm Freddie Mac has published studies showing that most delinquent mortgage borrowers do not know they can sell their house in short-sale transactions so they can protect their credit records and be able to buy a house again in the near future.

Home agents however need to prepare and learn from the experiences of more experienced real estate agents when jumping into the pre-foreclosure market. Homeowners in pre-foreclosure are under enormous anxiety, frustration, anger and stress so agents need to understand these emotions. They just have to adjust as homeowners predictably go through denial, anger, despair and acceptance.

Before negotiating with homeowners in pre-foreclosure, agents need to become experts first about the foreclosure process, foreclosure laws, recent changes in foreclosures and time frames in their states. They should be able to explain the process clearly to the homeowner.

They should also know pricing trends and current market trends in their areas so they can time their sale. They should be able to sell the house within the time frame allowed by the judicial foreclosure process. They should also study the federal loan modification programs, including any foreclosure prevention program in their states.

Based on real estate sales data, the agents who are making the short-sale transactions are the ones who are making efforts to contact homeowners directly and patiently explaining all options to them. Some distressed homeowners do not read their mail or answer the phone, but they respond if they see a smiling and friendly face on their doorstep.

Finally, home agents do not have to focus on REOs where there is fierce competition. They can get listings from the pre-foreclosure market, help troubled homeowners and grow their real estate business at the same time.

Related Posts:

• Opportunities for Real Estate Agents Trained in Short Sales
• Brokers Real Estate Focus on Niche Markets to Compete

Discount home brokers, fee-for-service brokers and online brokers are now allowed to compete with full-service real estate brokers in South Carolina such as Consolidated Multiple Listing Services Inc. after the U.S. Justice Department agreed to a settlement with CMLS.

CMLS was sued in 2008 by the Justice Department for anticompetitive practices. Non-traditional brokers accused CMLS, which is run by traditional brokers, for establishing rules that prohibited fee-for-service brokers from working as realtors in the market.

Under the settlement which will be enforced for 10 years, online brokers, discount brokers and fee-for-service brokers can now become members of the CMLS as long as they are licensed in South Carolina.

The MLS is also required to reduce its initiation charge for new members. Nontraditional brokers claimed that they fear losing the $5,000 charged by CMLS for initiation because after paying the fee, they are made to undergo intimidating interviews conducted by full-service brokers who have all the rights to reject their application and forfeit the $5,000 they paid.

The Justice Department stated that the $5,000 initiation fee was 5 times higher than the fees charged by other listing services in the state. CMLS later lowered the initiation fee to $2,500, but the fee is still high according to non-traditional home brokers.

In response, CMLS lawyer Edward M. Woodward Jr. said that the cost of initiating a new MLS member is higher than the $2,500 fee, as calculated by a CMLS consultant.

In addition, nontraditional brokers are no longer required by CMLS to maintain offices in South Carolina. The Justice Department argued that allowing brokers to run their businesses online from their homes will lower costs and will enable them to reduce their fees and benefit customers.

CMLS will also repeal its rule of requiring brokers to actively get involved in the marketing and closing of listings. The Justice Department explained that this rule restricted fee-for-service agents who charge lower fees for specific services only.

Another restriction lifted was the prohibition of brokers from signing exclusive agency agreements with sellers who plan to sell their homes without paying commissions.

The settlement with the Justice Department requires CMLS to submit to the department the minutes of its board and committee meetings and changes in its rules. CMLS is also required to provide copies of the new agreement to all members and to all home brokers who have applied for membership in the last 5 years.

Related Posts:

• Real Estate Broker Service Settles Suit
• Traditional Real Estate Brokers VS Online Brokerages

Online brokers have gone a long way from the difficult times when they were restricted from accessing major multiple listing services and were just used for initial information on certain properties but never hired for closing.
Now, online real estate brokers are enjoying one of the best times in their careers, as more and more [...]

Buying a new house or selling your old property is a big decision. You would not want to invest your money on something unreasonable, right? So, many would prefer having a home broker by their side to help them make the wise choice.
Home brokers will help you find the house that suits your taste or [...]

Larry Lupton, a Brookfield, Wisconsin home broker is convicted after asking for a $75,000 kickback from the buyer of the $30 million state office building and for being economical on the FBI with the truth.
Sentencing guidelines suggest 41 to 51 month imprisonment while the prosecution wants four years. Lupton’s lawyer then asks for probation only. [...]

Just like in other professions where hardworking and trustworthy professionals are damaged by the corrupt activities of their colleagues, the real estate profession is also sometimes damaged by the deceitful actions of even just one home broker like 48-year-old Kathy Chen.
So the next time you think of hiring a home broker to facilitate your real [...]

Buyers used to just look for homes that are in the “move-in” state. But home brokers are feeling some changes as home buyers are now also looking at repossessed properties in the market.
Home brokers noted that almost 50 percent of home sales in the Atlanta area involve bank-owned properties or distressed houses that will be [...]

An additional $150 to $500 ABC, processing or admin fee are usually added aside from regular commissions or sometimes during real estate settlements. These charges are exclusively entitled to the brokerage’s owner and not shared with real estate agents.
These mystery fees are said to be added to sustain the business since commission ends up [...]