The 10-22-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. Fannie Mae To Increase Down Payment Requirements
3. Home Buyers Planning To Stay Longer…
4. Answers To Common Objections
5. Titans Owner Passes Away
6. HOT LINE: Agency Brochures for Consumers?
7. HOT LINE: Seller Ignoring the Contingency Removal?
8. HOT LINE: No Independent Contractor Agreement?
9. USEFUL LINKS


1. Upcoming COURSES & EVENTS

Our last three GRI Courses of 2013 are coming up:

Oct. 24 – Nov. 13: GRI 405, Mastering Forms & Contracts (8 hrs. CE) – An E-Class distance-learning course. For more information or to register: https://www.123signup.com/event?id=bzmpf

Nov. 14 – Dec. 4: GRI 406, Tips, Tools & Technologies (8 hrs. CE) – An E-Class distance-learning course. For more information or to register: https://www.123signup.com/event?id=bzmpd

Dec. 6: GRI 406, Tips, Tools, & Technologies (8 hrs. CE) – KAAR Office, Knoxville. For more information or to register: https://www.123signup.com/event?id=dxycf

To see upcoming offerings of TREC CORE COURSES, ABR COURSES, etc., – at locations around the state – go to the TAR Course calendar at: http://tnrealtors.com/education/realtor-courses/


2. Fannie Mae To Increase Down Payment Requirements

An update to Fannie Mae’s Desktop Underwriting (DU) system, scheduled to take effect on Nov. 16, includes an option that allows the system to ignore foreclosure information on a credit report if a pre-foreclosure sale is also documented. While this change will offer lenders more leeway in underwriting and approving borrowers who previously unloaded a home through a pre-foreclosure or short sale, another DU provision could make it more difficult for some applicants to qualify for Fannie Mae financing. Specifically, the minimum down payment required from borrowers will rise to 5 percent of the loan balance from 3 percent currently.

Other provisions under the new DU guidelines include complete elimination of interest-only loans, tougher debt calculations for adjustable-rate mortgages, and a drop in the maximum loan term to 30 years from 40.

To read more, go HERE.


3. Home Buyers Planning To Stay Longer…

There are a number of amenities and attributes that stand out as important to today’s home buyers – especially Millennials, who represent an increasingly sizable buying pool. Quality of the neighborhood is a big must for many. Convenience to one’s place of business also ranks high, as does affordability and quality of schools. A recent Realtor.com poll showed that almost 45 percent of today•s buyers are willing to pay a premium for quality schools. More and more of today’s buyers also are looking for properties that will meet their needs for the next 15 years. That deviates from just five years ago, when buyers were looking to stay in their home only about 10 years. Energy efficiency is also an increasingly important consideration for many, along with open floor plans, high ceilings, and technological amenities.

To read more about the “10 Things Today’s Buyers Look For in a Home”, go to this recent RISMedia article at: http://rismedia.com/2013-10-15/10-things-todays-buyers-look-for-in-a-home/


4. Answers To Common Objections

On the REAL Trends blog last week, a useful article by Walter Sanford was posted with answers to seven of the more common objections you’ll hear from prospects, buyers, and sellers! To read it: http://realtrends.com/blog/answers-to-common-objections

If YOU have a favorite response to a common objection – one that has actually worked – we would love to hear it! Just send it by email to:


5. Titans Owner Passes Away

It’s not real estate news, but many Tennessee Realtors are Titans fans.

We just got word that Titans owner Bud Adams, age 90, has passed away in Houston from natural causes. There is no immediate news on how ownership of the team will be managed in the future.


6. HOT LINE: Agency Brochures for Consumers?

QUESTION: At one time, TAR had posted online two PDF brochures for consumers – one for buyers and another for sellers – explaining Tennessee’s agency law, in language that they could understand. Where are they now?

ANSWER: You will find these (and OTHER free and downloadable resources) at: http://riskreduction.wikispaces.com/Agency+Law

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


7. HOT LINE: Seller Ignoring the Contingency Removal?

QUESTION: I am working with some buyers on a VA/FHA advertised property. The seller is ignoring the contingency removal form I have submitted. How should I handle this situation? I have tentatively decided to refrain from negotiating until this seller complies with the contract.

ANSWER: Keep following up with the seller and/or his agent. It is usually not necessary to have a contingency removal form completed (unless it is a request for repairs). Therefore, if it is simply a notification that the buyer is removing one of the contingencies in the contract, it is probably not necessary to have the seller sign off on this. HOWEVER, you must continue to work with the seller (or try to do so) in the best interests of your buyer.

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


8. HOT LINE: No Independent Contractor Agreement?

QUESTION: I discovered this morning that the Independent Contractor Agreement has been removed from Forms on the Fly. Is there a replacement form we need to be using?

ANSWER: The TAR Residential Forms Committee reviewed the independent contractor agreement and determined that this was an issue which dealt with employment issues rather than real estate issues. In addition, it is difficult to construct a one-size fits all independent contractor’s agreement. Finally, the committee determined that this is a matter which will take into account numerous areas of law including employment law and tax law which is known to change frequently. As such, it was felt that this type of form was best left to each individual company to have their own legal counsel draft an independent contractor’s agreement which would take into account each individual office and its needs.

Having said all of this, we DO recommend that every company and sales associate negotiate an independent contractor agreement for their mutual benefit and protection!

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


9. USEFUL LINKS

To access current and past TAR DIGESTS: http://www.tardigest.com

Follow TAR on Twitter at: http://twitter.com/tnaor

TAR’s LinkedIn page: http://www.linkedin.com/groups?gid=852077&trk=hb_side_g

TAR’s page on Facebook: http://www.facebook.com/pages/Nashville-TN/Tennessee-Association-of-RealtorsR/15041383689

To ask a TAR Legal and Ethics Hot Line question: http://tnrealtors.com/services-support/legal-ethics-hotline/

For CE classroom courses around the state, go to: http://tnrealtors.com/education/realtor-courses/

For online CE courses, go to: http://tnrealtors.com/education/online-courses/

Tennessee Real Estate Commission: http://tn.gov/regboards/trec/

To check your CE credits on file with TREC, go to: http://verify.tn.gov