The Weekly Membership Newsletter of the Tennessee Assn. of REALTORS


CONTENTS
1. Getting “Back to the Basics”!
2. Mixed News re: Home Foreclosures
3. HOT LINE: Two Hud-1s
4. HOT LINE: “I will sell your home, or…”
5. HOT LINE: Assistants & Open Houses
6. NAR’s Virtual Convention for Commercial Members!
7. Rates Rise Very Little


1. Getting “Back to the Basics”!

In May, at the NAR Midyear Meetings, Kate Rossi (a Coldwell Banker executive) commented, “Everybody says [in the current market] to get back to basics. The problem is that nobody knows what the basics are!” She went on to emphasize the need for agents to know how to:

1. Prospect
2. Present, and
3. Price

John Tuccillo, a former Chief Economist for NAR, underscored her observations by adding: “There’s a lot of ‘never learned’ and a lot of ‘I forgot’ that has to be corrected!”

Kate Rossi also noted a change in what a new generation of prospective clients wants (and will tolerate) in a presentation of your services, credentials, etc.: “Prospective clients do NOT want to listen to a lot of ‘stuff’. They want no more than a good 20-minute presentation, in and out!”

Food for thought…

[SOURCE: NAR Midyear Meetings]


2. Mixed News re: Home Foreclosures

The latest news on home foreclosures continues to paint a grim picture:

*** BEGIN QUOTE ***
The rate of new foreclosures and the rate of late mortgage payments were the highest on record going back to 1979 according to a reported issued [last week] …by the Mortgage Bankers Association.

Nearly 1 percent of loans — roughly 447,723 — fell into foreclosure during first quarter 2008, surpassing the previous high of 0.83 percent from fourth quarter 2007.

Meanwhile, the mortgage delinquency rate jumped to 6.4 percent — 2.87 million loans — compared with 5.8 percent for the previous three months.
*** END QUOTE ***

But the pain is most deeply felt in just FOUR states:

*** BEGIN QUOTE ***
California, Florida, Nevada and Arizona accounted for 89 percent of the total increase in new home foreclosures, said Jay Brinkmann, the association’s vice president of research and economics. Those are places where prices have fallen sharply and there was a lot of home building, creating too much supply.

The association’s survey covers just over 45 million home loans.
*** END QUOTE ***

[SOURCES: AP; Texas A&M Real Estate Research Center]


3. HOT LINE: Two Hud-1s

QUESTION: I represent a buyer and as part of the counter offer on a contract submitted to a seller, the seller has requested “the title company provide separate and confidential HUD-1s for the seller and the buyer.” Is that legal? How can we be sure that the terms of the contract were adhered to, etc. if we don’t see a complete closing statement?

ANSWER: It IS permissible to do two HUDs. One contains the confidential information of the seller, and one contains the confidential information of the buyer.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


4. HOT LINE: “I will sell your home, or…”

QUESTION: Is it legal in Tennessee to send out postcards that state either of the following remarks: “I will sell your home for XX% of your asking price or I’ll pay you the difference at closing” and “I will sell your home in XX days or I’ll pay you $1000 cash”?

ANSWER: NO. It is our opinion that this would be in violation of Tenn. Code Ann. 62-13-302(b). This statute states: “A real estate licensee shall not give or pay cash rebates, cash gifts or cash prizes in conjunction with any real estate transaction.”

This advertising promises a cash gift for the failure to sell the property in conjunction with a real estate transaction.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


5. HOT LINE: Assistants & Open Houses

QUESTION: Would you please let me know if an unlicensed assistant is allowed to hold Open Houses. Or, are only licensed assistants allowed to host Open Houses?

ANSWER: NO, an unlicensed individual cannot host an open house, nor are they permitted to show properties. According to the Official Manual of the Tennessee Real Estate Commission, an unlicensed assistant MAY NOT:

*** BEGIN QUOTE ***
1. Make cold calls by telephone or in person to potential listers or purchasers;

2. Show properties for sale and/or lease to prospective purchasers;

3. Host public open houses, licensee open houses, home show booths or fairs;

4. Answer questions concerning properties listed with the firm except only that information contained on the listing agreement as limited by the Principal Broker;

5. Prepare promotional material or advertising of properties for sale or lease without the approval of the Principal Broker;

6. Discuss or explain listings, offers, contracts, or other similar matters with persons outside the firm;

7. Be paid on the basis of real estate activity; such as percentage of commission, or any amount based on listings, sales, etc.

8. Act as a “go-between” with a seller and buyer such as when an offer is being negotiated.

9. Negotiate or agree to any commission split or referral fee on behalf of a licensee.
*** END QUOTE ***

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


6. NAR’s Virtual Convention for Commercial Members!

Our commercial members can learn how to upload their listings for FREE on NAR’s national commercial real estate listing platform at this year’s CommercialSource Online.

This “virtual” convention, June 17-18, is designed to create educational and networking opportunities for your commercial members without them having to leave their desk! Speakers will present business strategies on marketing, branding, and social media, and help your members translate these strategies into relationship-building action plans. Registration is FREE and online.

To learn more and/or to register, click HERE:

[SOURCE: NAR]


7. Rates Rise Very Little

Freddie Mac reports a slight gain in the 30-year fixed mortgage rate to 6.09 percent during the week ended June 5 from 6.08 percent the prior week, marking a nearly three-month high. The increase can be attributed to concerns about inflation, with investors and analysts interpreting recent comments by Federal Reserve Chairman Ben Bernanke to mean an end to interest-rate cuts as the central bank moves to prevent out-of-control inflation.

[SOURCES: Freddie Mac; Information, Inc.]


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