The Weekly Membership Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


CONTENTS
1. Mastering the Three Big Statistics
2. Tennessee Foreclosures Still on the Rise
3. HOT LINE: Broker Liable for Agent’s Personal Transactions?
4. HOT LINE: Agency Relationships When Co-listing?
5. Working Smarter: Look It Up!
6. Upcoming Courses!
7. Rates Rise a Little

To ask a TAR Legal & Ethics Hot Line question, go HERE.

For other questions about this newsletter, please use the “CONTACT” form HERE.


1. Mastering the Three Big Statistics

One of those skills that becomes even MORE critical in recessions — and periods of economic uncertainty — is mastery of the facts, numbers and figures that both REALTORS and their clients need, to understand the market.

National trainer Dirk Zeller has a very good trio of blog posts (“Calculating And Analyzing Real Estate’s Big Three Statistics” — Parts 1-3) that gives you a step-by-step process to master some essential measures that every REALTOR should know:

  • Average List Price to Sales Price Ratio
  • Average Days on Market
  • Average Listings Taken Versus Listings Sold

If calculating ANY of these proves a chore for you, your agents, or an assistant, then print out Mr. Zeller’s blog postings at:
http://realblogging.com/author/dirk-zeller/

These statistics and more can help establish you as the knowledgeable real estate resource that your clients want and deserve!

[SOURCE: Realblogging.com]


2. Tennessee Foreclosures Still on the Rise

As reported at this week’s Governor’s Housing Summit:

*** BEGIN QUOTE ***
Foreclosures are still on the rise in Tennessee. In the second quarter of 2009, Tennessee reported 10,477 foreclosure filings, a one percent increase from the previous quarter (Q1_09). There was one foreclosure filing for every 260 households, which puts Tennessee in 21st place in the nation. Within the state, Shelby County ranked as number one among all counties in Tennessee both in terms of ratio (1 foreclosure filing for every 106 households) and in terms of total number of foreclosure filings (3,769 foreclosure filings).
*** END QUOTE ***

The national average filing ratio for the same quarter was 1 filing for every 144 households.

[SOURCE: THDA]


3. HOT LINE: Broker Liable for Agent’s Personal Transactions?

QUESTION: Is the broker liable for any real estate transactions that their agents are a part of, if they have not handled the buying or selling through the company? Is there any law that requires agents to buy or sell through a company if they hold an active license?

ANSWER: It is unlikely that your company would have any liability if the transaction was not handled through the firm and you as the broker had no knowledge of it. In the event that you have agents who are operating as owner/agents and/or are purchasing properties outside the firm, you must ensure that none of the company’s resources are used (i.e., forms, using the escrow account, etc.). This could give the non-agent the impression that it is being done through the firm.

Agents are permitted to sell their own property without running it through the company. However, principal brokers can limit the number which are sold every year by an agent. It is important to note that a broker should not prohibit an agent from selling his primary residence as a FSBO. There could be constitutional issues with this.

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


4. HOT LINE: Agency Relationships When Co-listing?

QUESTION: I work with a team, and there are three of us total. We co-list everything for MLS purposes and clients are comfortable with the idea they have three agents working for them rather than one. We verbally discuss this with our clients and they are always on board, but we have no form that states this. If we get audited, is this grounds for a write up?

ANSWER: If you are co-listing a piece of property and you practice designated agency, then ALL three agents must be appointed as designated agents. This can be done on the listing agreement; it definitely needs to be confirmed in writing and must conform with your company’s agency policy. ALSO, be very careful that you understand that what one of you knows, all of you know.

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


5. Working Smarter: Look It Up!

Want to look up the definition of a word?
Searching for another term for _________?
What’s the Spanish term for _________?

An online resource that gives you easy and FREE access to a Dictionary, Thesaurus, Translator, Encyclopedia, and other tools can be found at:
http://www.reference.com/

Bookmark the site and keep it handy. The site even features a Daily Crossword puzzle if you ever need a few minutes’ break from your real estate business!


6. Upcoming Courses!

GRI 5: Systems for Success — Oct. 22 to Nov. 25 (E-Class distance learning course), 16 hours CE. For more information, go HERE.

2-day ABR Course — Oct. 28-29 (Knoxville Assn.), 16 hours CE. Sponsored by TREEF, offered by the Knoxville Area Association. For more information, or to register, go to: http://www.kaarmls.com …and click on “Education”

1-day ABR Elective (“Foreclosure and Short Sales”) — Oct. 30 (Knoxville Assn.) 8 hours CE. Sponsored by TREEF, offered by the Knoxville Area Association. For more information, or to register, go to: http://www.kaarmls.com …and click on “Education”

GRI 1: Professionalism in Real Estate — Nov. 5-6 (Nashville – Cool Springs, TN), 16 hours CE. For more information, go HERE.

GRI 6: Sticky Situations — Nov. 12 to Dec. 16 (E-Class distance learning course), 16 hours CE. For more information, go HERE.

Watch each week’s TAR DIGEST for schedule changes and additions!


7. Rates Rise a Little

Fewer consumers sought home loans last week as the national average interest on 30-year fixed mortgages bumped up to 5.02 percent from 4.89 percent the week before, the Mortgage Bankers Association reported. At the same time, the average rate for a 15-year fixed loan rose from a record low of 4.32 percent back up to 4.44 percent. Demand for mortgages was down 1.8 percent overall for the week, with requests for purchase loans sliding 5 percent and refinance applications dipping by 0.1 percent. MBA said it anticipates 30-year loan rates averaging about 5 percent this quarter but rising as high as 5.6 percent by late 2010.

[SOURCES: Mortgage Bankers Assn.; Information, Inc.]


TAR’s Home Page: http://tnrealtors.com

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