The 11-8-11 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


CONTENTS
1. The “Hyperlocal” Key to Your Success
2. The Coming Rental House Wave
3. Customers Are Not Always Right!
4. HOT LINE: Seller Not Responding?
5. HOT LINE: Linking Two Transactions?
6. HAPPENINGS – This Week And Next
7. Rates Drop to 4.00 Percent
8. Useful Web Links

To ask a TAR Legal and Ethics Hot Line question, CLICK HERE.

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


1. The “Hyperlocal” Key to Your Success

A new article on RISMedia by Susie Hale (“What Is ‘Hyperlocal’ and Why Is it Key to Your Success?”) profiles several real estate professionals who have discovered a path to success despite these trying economic times:

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“All real estate is local,” the saying goes. But what buyers and sellers really want to know is known as “hyper”-local information – the numbers and news that affect their specific community’s neighborhoods. When an agent shares information about the first day of school, the date of the high school football games, or how road construction will affect a morning commute, that agent becomes more than a home seller…he or she becomes a trusted resource.

The best agents already know this. Award-winning Texas broker Krisstina Wise, owner of The GoodLife Team, regularly posts graphs on the company’s blog showing average sales prices and closed sales for Austin. She also lists “Good Hoods” as well: neighborhood profiles with maps, news, schools and restaurant reviews – crucial in a town where eating out is a passion.
*** END QUOTE ***

By the way, this is the same Krisstina Wise who spoke at our 2011 TAR Annual Convention.

To read more, CLICK HERE.

[SOURCE: RISMEdia]


2. The Coming Rental House Wave

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The multifamily market is benefitting from changing demographics and consumer attitudes toward renting resulting from the growing number of financially stressed households. The increase in young and newly formed households that have decided to postpone or even reject homeownership in favor of the lower debt and flexibility afforded by renting during these last unsettled economic years.

“It’s an exciting time to be in this growing sector where it is projected that $1 trillion in capital and 10 million additional apartment units are needed in the next 10 years as more individuals turn to apartment living,” said Freddie Mac Multifamily Senior Vice President David Brickman.
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To read more, CLICK HERE.

[SOURCE: CoStar Advisor]


3. Customers Are Not Always Right!

Betsy Kruger, marketing consultant and author of “Top Market Strategy: Applying the 80/20 Rule,” says customers are not always right, and firms should reward loyal customers – not complainers. Loyal customers reward firms with bigger profits, and Kruger says firms should value the customers who value the business.

According to the 80/20 rule, the top 20 percent of customers are responsible for 80 percent of the company’s profits, and the bottom 80 percent of customers generate just 20 percent of profits and almost all of the complaints. Kruger says firms can benefit from the 80/20 rule by determining which customers are in the top 20 percent, creating a top market strategy that targets these customers, automating interactions with the bottom 80 percent of customers, and concentrating on turning prospects similar to the top 20 percent into top customers. “When you prioritize your customers with the 80/20 rule, you are prioritizing your profit,” says Kruger.

To read more, CLICK HERE.

[SOURCES: RISMedia; Information, Inc.]


4. HOT LINE: Seller Not Responding?

QUESTION: We represent the seller in a transaction. The seller was slow to respond to the buyer’s inspection contingency. The seller also capped the amount at $500 in the contract. My seller has still not responded to the inspection report and I now find out that she no longer wants to sell her house. What information regarding this situation can I legally disclose to the buyer’s agent? By not countering the original inspection contingency release, what position does that put the seller in?

ANSWER: You cannot disclose anything that you do not have permission to disclose by your client. However, you should advise your client to speak with their own legal counsel concerning this matter and simply not responding. It is important to understand that there is a duty of good faith inherent in every contract. In other words, by simply not responding at all the seller could be found to be in breach of the obligation to fulfill the terms of the contract in good faith.

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


5. HOT LINE: Linking Two Transactions?

QUESTION: With regard to tie-in agreements under antitrust law, can a real estate agent list and sell a person’s home, offering offer their services for free in the sale of their home if the sellers then use them as a buyer’s agent in their purchase of another home, with all of this in writing upon the initial transaction?

ANSWER: This would not be an antitrust issue. HOWEVER, you need to be aware that there is a risk in doing this. The buyer’s representation agreement must be limited to a particular time period. You also need to plan for the possibility that the buyers will not find a home in that time period OR will simply wait until the agreement has ended to purchase. Then you would not get paid for either transaction.

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


6. HAPPENINGS – This Week And Next

Nov. 9-14: NAR Annual Convention – Anaheim, CA.

Nov. 14: 2011-2012 Residential Core Course (6 hrs. CE) – NETAR Office, Gray. For more information or to register, call 423-477-0040.

Nov. 14: 2011-2012 Residential Core Course (6 hrs. CE) – Sumner Assn. Office, Hendersonville. For more information or to register, call 615-824-6629.

Nov. 16: TransactionDesk Basic (3 hrs. CE) – MAAR Office, Memphis. For more information or to register, call 901-818-2421.

For information on the NEW 2012 GRI Program, go to: http://tnrealtors.com/main/education/gri_in_2012/

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


7. Rates Drop to 4.00 Percent

The 30-year fixed-rate mortgage averaged 4.00 percent for the week ending Nov. 3, 2011, down from 4.10 percent a week earlier, according to Freddie Mac. This past week’s average is the second lowest in history, after the record 3.94 percent set during the week ending Oct. 6, 2011. Also, the 15-year fixed-rate mortgage averaged 3.31 percent, down from 3.38 percent the previous week, and the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this past week, down from 3.08 percent. Mortgage rates declined sharply as investors turned to U.S. Treasury bonds amid concerns about the European debt market.

[SOURCES: Realty Times; Information, Inc.]


8. Useful Internet Links

Click on any of the following to access:

Back Issues of the TAR DIGEST
Tennessee Assn. of REALTORS
TAR Education
TAR on LinkedIn
TAR on Facebook
Follow TAR on Twitter
Online Risk Reduction Resources
Online Resources for Association Leaders
Tennessee Real Estate Commission

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