When you finally decide on a realtor, you’ll be required to sign a “Listing Agreement.”

Make sure you fully understand the ramifications of this innocuous piece of paper. It ties your hands in a way that can affect you profoundly.

The way the Real Estate Industry has set things up, the Listing Agreement is basically an “exclusivity contract.” Once signed and in effect, it denies you the right to a second opinion. The Exclusive Listing Agreement” executed between your agent, his or her agency, and you states, in so many words, that no other real estate agent is allowed to interfere in any way with the progress of your sale.

In other words, any other realtor who approaches you with an offer to sell your home is in breach of the Code Of Ethics established by the N.A.R. (National Association of Realtors). By extension, if you approach any other realtor with questions or for advice regarding your property, you are not only putting that realtor’s standing in jeopardy, but you are in breach of your Exclusive Listing Agreement.

That could jeopardize any transaction involving you, your realtor or your property.

The Listing Agreement is a contract between you, your specific agent, any agency he or she works for or with (Century21, ERA, Coldwell-Banker, etc.) and the governing agency in your state, as well as the agency or agencies (federal, state and/or local) that govern them.

It works this way: In California, for example, the governing agency is the C.A.R. (California Associan of Realtors). It is a sanctioned branch of the N.A.R. mentioned above.

In other words, when you sign what appears to be a simple agreement between you and that sweet realtor sitting across the table, whom you like so much, you’re actually entering into an agreement with one of the most powerful and influential bodies in the United States.

Think about it. Donald Trump can’t sell property without entering into such an agreement. If he acts in a way that can be even remotely interpreted as a breach of that agreement, it makes national morning headlines. Donald Trump can afford to make a mistake.

You can’t.

This is one of the reasons why it is so important to choose your realtor with extreme caution. You will be entering into an agreement that will tie you, lock you, into that agent for the duration of that agreement.

Now, the Exclusive Listing Agreement can be stated to exist for an arbitrary period of time. You and your agent will decide its duration. It could be for 30, 60, 90 days, on average. Your agent will probably determine how long it will take, in his or her opinion, to successfully sell your house. He or she will suggest that the agreement extend for at least that period of time.

Now, here’s where it gets tricky. You can cancel the agreement at any time. It’s your right and prerogative. However, wording in the agreement states, in so many words (at least in California) that, if you terminate the agreement voluntarily, you will still owe your realtor his or her full commission IF a sale occurs within 30 days after termination, and the buyer is someone who viewed the house while the agreement was still in effect.

If you do cancel an ELA with an agent, and hire another, an ethical agent will usually tell you to take the house off the market for 30 days. Once that time has passed, the new agent can list your house without any encumberances involving your previous agent.

The question is whether you can afford to take your house off the market. In a Seller’s Market, when housing values are up, you might. In a Buyer’s Market, when the value of your home is depreciating, you might not.

So, selecting the right agent, and committing to a contract, becomes one of the most critical aspects of putting your home on the market. The Exclusive Listing Agreement should never be taken lightly, and should never be extended arbritrarily beyone 30 days to start. Much depends on how much you trust your chosen realtor’s abilities and accumen, tempered by how long you can afford to have your home off the market should your realtor let your down.

Source: agreement

The National Association Of REALTORS (N.A.R.) imposes a strict Code Of Ethics and Standard Of Practice on member real estate agents and brokers. It’s important to know, however, that not all realtors are members of the N.A.R.

The N.A.R. is a voluntary membership organization, and most reputable realtors are members. Members are identifiable by the REALTOR service mark, as illustrated here.

Any licensed real estate agent or broker can join, though. N.A.R. membership does not, in and of itself, guarantee that you are dealing with an honest, ethical agent. It does, however, help in selecting a realtor, and may be of assistance should problems arise before, during or after the transaction.

Most reputable real estate agencies require N.A.R. membership of their agents, brokers and sales assistants.

You can review the N.A.R. Code Of Ethics and Standard Of Practice HERE.

Source: association

You see it all over the national news. It seems like every day there is a news report warning people of the bad real estate market. However, the context in which they speak is one of generalities and should not be taken to mean that the real estate market is down everywhere. That is the gist of an article featured here on MORealtyWatch that discusses the national real estate reports.

One community that seems to have a trend that differs compared to other real estate markets is Branson, MO. Recently in an article discussing the Branson market, One agent (Doug Edens) had positive things to say about the small vacation destination.

The bottom line is that before you decide to buy or not to buy a property, check the market in a specific locale to get an idea of the condition of that area’s real estate market.

It’s no secret that there is a good deal of money to be made in real estate. In fact, many of the rich and famous have made much of their fortune by investing in real estate. But, what kinds of things should one be aware of when investing in real property? There are many aspects to consider but this post will mention two very important facets to consider when investing in realty.

Fixer Uppers
If you are investing in a property it may be a good idea to do your homework. There are so many things to consider when making a real estate purchase. Often times one can find homes that are in good condition, but need a little attention. Putting some time, effort, and money into a property can yield beneficial results. Knowing some of the common “little things” and how to fix them can certainly boost the gain potential of a home that just needs minor repairs.

Where does one find the information? There are many sources that offer insight on various aspects of renovating properties. Perhaps you can find advice from a book about home improvement or help from a home remodeling website. In any case, The more knowledge that can be applied to investing, the more effective the one that uses the knowledge becomes at finding the income generators.

Know the Area
Another important aspect of investing is becoming educated with the area in which you are investing. Buying a property for the purpose of reselling is good but there might be potential snags that aren’t readily apparent. Getting good information from public records and resources on the internet can simplify research.

For example, One real estate agent in Missouri has implemented a search tool for real estate in the Branson area. If you open that link and click the search options link just below the 76 Realty logo, you’ll find that the tool has many features to search on. Each property can be mapped if you so choose and you can map locations of offenders in the same area. Having knowledge of helpful tools like this one can make researching the home in which you are looking to invest much easier and beneficial in the long run.