About RealEstate in Georgia - Working With Dual Agency Brokerage Office

Never Agree to Dual Agency

2011-09-21T09:42:00.000-07:00

CAARE

Dual Agency is a conflictive relationship that strips buyers and sellers of service to a level that can best be described as abandonment. Dual agency arises when the real estate broker is representing both the buyer and the seller. It is illegal in every other fiduciary profession except under the most extreme circumstances. It is routinely practiced in residential real estate where there is the least amount of training. When a real estate broker engages in dual agency they may not work to the advantage or the detriment of the buyer or seller. In other words, all the reasons you hired your broker vanish - often with little warning.

Dual agents are legally prevented from negotiating price or terms (two of the most important reasons consumers hire Realtors). And perhaps the biggest problem with this betrayal is that it usually presents itself with little warning to the client - it is a bait and switch. The broker could be acting in the client's best interests all the way up to finding the house that creates a dual agency. At that point the buyer or seller are on their own.

In a dual agency, brokers don't have to share the commission with other brokers so they make twice as much money. They profit greatly from this practice. Realtors, who typically have no understanding of the legal ramifications of their own fiduciary relationship with their clients, often illegally counsel their clients of the so-called "benefits" of dual agency. We're here to tell you that there are NO benefits and that you should NEVER agree to dual agency. Find a small brokerage firm with highly qualified real estate agents and demand that they not engage in dual agency. The likelihood of dual agency arising with a smaller firm is far less than with a large firm. For more on this topic click here.

Watch For "Green" Claims To Rise In Real Estate

2011-08-30T05:20:00.001-07:00

The town of Thomasville, GA Is NOT immune to “Green Washing”

I was recently introduced to an article in the St. Petersburg Times that deals with the now-popular term "greenwashing". It was called "'Green' Houses in Name Only?" by Chuin-Wei Yap. I thought the author did a good job of framing the problem that is starting to crop up everywhere in real estate - sellers inappropriately identifying their homes as "green" or "energy efficient". I loved this quote:

"As home building slumps and environmentalism becomes a business advantage, a fast-growing market for green homes is becoming synonymous with "buyer beware"

The article addressed the lack of proper oversight in "green" claims and the frustrations certifying organizations face when they see claims being made. Since most of the oversight still is voluntary, there's nothing to stop a builder (or realtor) from making a claim that the home is energy efficient or even green-built. In fact, we have at least one builder I know of who's labeling their homes as energy efficient (they're nothing special, and are not certified as Energy Star or better to my knowledge). When I questioned the claim to the listing agent (in a friendly way) I got silence in reply.

"Greenwashing" is the general term for mis-representation or over-representation of a product's environmentally-friendly attributes. Keep a sharp eye out for this trend in real estate and "buyer beware".

http://activerain.com/blogsview/502458/watch-for-green-claims-to-rise-in-real-estate

Dual Agency Should Be Illegal! - Georgia is a Dual Agency State

2011-08-23T15:15:00.000-07:00

According to the National Association of Realtors, “As a customer, a buyer is not represented by an agent… the agent cannot negotiate on the buyer’s behalf nor reveal to the buyer any confidences of the client, the client is the seller.” Without the benefits of using a Buyer Representative, you become just a customer to the seller and their agent.

The seller’s agent is legally obligated to get the most money for the seller. Can the Seller's Agent who is contracted to work in the best interest of one party also work in the best interest of the Buyer? They can not. A seller’s agent, by law, must work in the best interest of their client, including giving information about the buyers to the sellers. Buyers Agents work in your best interest. The goal is to get you the best price and the most savings possible.

This is not Real Estate for Dummies. But, it probably should be. The basic definition of dual agency is “The same real estate agent is representing both buyer and seller in the same transaction”. Dual agency is the single worst issue involved in real estate. The average “Joe” out of the street easily understands that dual agency is WRONG. This seems like common sense to the regular guy. So, why can’t the politicians and many real estate agents & brokers understand this simple terrible concept? The main reason why dual agency exists is because of the glorious MOOLAH. Real estate brokers and agents have a huge financial incentive to be involved in a dual agency transaction at the detriment of their buyer or seller. Dual agency has no benefits to protect the consumer (buyer or seller). One of the simplest and best examples that I’ve ever read about the problems of dual agency actually came from a traditional real estate agent (Matt Difanis) in Illinois and not an Exclusive Buyer Agent. A few years back, Matt had a sent this letter to the Realtor Magazine.

Here is another real simple definition; agency is when a real estate broker discloses “who” & “how” they are going to represent a buyer or seller. Home buyers need to STOP spending all their time on the Internet looking at pretty pictures of potential homes and START spending more time fully understanding all types of agency (dual, single, transactional, limited or designated). Understanding agency is definitely not the most exciting part of the home buying process. As a matter of fact, it is down right boring. But, PLEASE, PLEASE, PLEASE; before you start down the path of buying a home make sure you spend time fully researching everything. As with many major financial decisions (car, home, vacation, etc.) most of us end up rationalizing decisions based on emotion, don’t make a decision based on emotion!!

Non-disclosed dual agency is ILLEGAL in all 50 states. But, only a few states have made (disclosed) dual agency illegal. Dual agency should be”outlawed” and made illegal in all 50 states. If you are a buyer or seller involved in a dual agency transaction and you don’t completely understand dual agency than you should immediately contact or RUN to your nearest real estate attorney.

A TRUE AGENT is one who provides 100% loyalty to his/her clients 100% of the time. No dual agency; no "designated agency", no "transaction brokerage;" no "Chinese walls;" no weasel clauses! - International Real Estate Directory

Buyers Agent: Representing People, Dual Agency: Commission

http://mybuyerbrokerblog.com/2007/10/28/dual-agency-should-be-illegal/

Dual agency = Let's Screw Them Twice!

2011-08-23T15:13:00.001-07:00

I realize some states are lucky enough that Dual-Agency is ILLEGAL and I wish tomorrow it would become illegal in ALL states, but until then, I'll continue to warn buyers & Sellers to stay clear of DUAL AGENCY! For any reader that doesn't know what dual agency means, it's when one RE agent represents BOTH buyer & Seller. Trust me, you DO NOT want to EVER have your agent represent both you and the Seller/Buyer. It can be the WORSE move in the RE transaction that you could possibly make!!! And guess what? It DOES NOT help you as a Buyer OR Selller in any way shape or form. The ONLY person it helps is the agent and or broker! How? Because it takes one agent out of the equation therefore it ultimately give the agent/broker MUCH MORE OF YOUR MONEY!!! You have ABSOLUTELY NO OBLIGATION to agree to DUAL AGENCY and why this is still legal in many states is a complete mystery to me!!!!

MAKE SURE that when you sign your listing agreement, Buyer's agent agreement, or any paperwork for that matter, you DO NOT allow the RE agent to slip you this DUAL AGENCY form to sign!!!!

Would you want your attorney to represent you and the defendant? THIS IS NO DIFFERENT!!!! PLEASE BEWARE! It's your money and your house! Guard it with your life! Think about it? Why else would it be ILLEGAL in many states?

Can you trust a dual agent realtor to work on behalf of the buyer or Seller?

2011-07-14T09:12:00.000-07:00

SEE HOW MANY REALTORS ARE OPPOSED TO DUAL AGENCY on Zillow.com about working with a dual agent. It is very interesting that I am NOT the only one that feels strongly about working with a dual agent. This is allowed in

Georgia

and yes even in Thomasville, GA. It is illegal for a dual agent to try an influence a buyer to a particular listing that is listed by the same agent or benefit the same brokerage office or a co-workers listing to keeping the sale in house with the same office. It is illegal to tell a buyer that a property is overpriced so not to show a particular listing. A dual agents responsibility is to show the buyer all listings in that buyers price range. IT IS ILLEGAL FOR A DUAL AGENT TO DO OTHER WISE.

A MOST READ IF YOU PLAN TO WORK WITH A DUAL AGENCY.......

http://www.zillow.com/advice-thread/Can-you-trust-a-dual-agent-realtor-to-work-on-behalf-of-the-buyer/396844/

Thomasville, Georgia - Good ol' boy network - Alive and Well

2011-02-17T04:20:00.001-08:00

Good ol' boy network and its meaning:

, or "Good old boys", describes a system of social networking alleged to exist among communities and social strata. These networks are assumed to be located throughout the world and very prominent in small towns like Thomasville,GA. It is sometimes taken to refer to informal legal, judicial, social, religious, business, and political associations among members, ("good ol' boys").

Some negative effects of the good ol' boy network are its exclusion of others, leading to possibly limiting business transactions to other elites or to friends or acquaintances from within the network, to give friends better deals, and generally to reinforce traditional power structures over any other elements in the society.

Most consumers and sellers do not realize that some real estate agents and brokerage offices supporting these low to bare minimum code homes knowingly and pushing these homes to consumers are only doing so for its easy sell while many listings sit un shown for years and sellers jumping from brokerage companies in hopes that their properties are shown more often. While these new under minimum code homes are pushed to consumers for being the best of the best other home sellers sit listening to their listing agents advise them to lower their selling prices because new and bigger homes are being sold for rock bottom prices and these prices are possible because of cutting corners in building cost. Our building inspectors should be vigilant to these practices in order to protect the consumers in order for them to utmost acquire a home built to minimum code.

It's becoming more and more common to find misrepresented listings and claiming the properties to be more efficient and misstating their square footage in order to manipulate the price/sq. ft. and by using the words (By Owner) as a loophole for the real estate agent and is sadly tolerated while the consumer gets mislead only to find out they ended up on the shorter end of the deal.

Whatever happened to looking beyond the square footage and weighing in the amenities of each property and negotiating and comparing property amenities and their individual situation for their low sale? Why is it that certain Realtors have their hands in the home building industry and their personal listings selling for full price or very close to listing price and others have to sell below apprised value? Is your Realtor telling you that your home is overpriced? One possible reason is that Realtors are pushing homes under $300,000 thousand with more then over 3,000sq.ft. being built to bare minimum code and possibly even below code and comparing all homes to these SQUARE FOOTAGE. Agents bringing buyers to these homes everyday while others trying not to loss their home are not getting shown. What type of service are these dual agents providing to all their sellers and not to mention their buyers? Consumers did you know that a dual agent is not allowed to negotiate for either party in this capacity? They would be breaking the law if they did. Why would you deal with an agent in this capacity? I pose this question. Would you hire a divorce attorney working for you soon ex-husband? same scenario.

The following is a True Story experienced by our company in this small town and evidence of the Good 'O Boy network in action:

We began building custom homes in Cairo, GA and offering features that were not being offered by no other local builder in effort to provide home buyers with a higher quality home with luxury features specific to each home we built. As a new company in the area and in a small town, we wanted to hire local quality companies. We visited many construction sites in search for these companies since we did not find many companies in the traditional way through advertisements. We visited many construction site in Thomasville, GA looking at different subcontractors and their workmanship. “Mind You” Cairo GA. is a small town and it is approximately 10 minutes from Thomasville, GA. We were searching for a good local trim company and wanted to have the opportunity to see the trim work as well and we noted some work being done on a new home being built. As we visited the site to look at the workmanship in order to consider the trim company, we spoke with the person doing the trim work which was a small one man operation local company. We looked around the home and liked their detailed work and we asked him if he would be interested in doing some work for us up in Cairo GA. The gentleman replied “sure he would love to do the work” We gave him one of our business cards and asked him to call us. To our surprise when he took a look at our business card and saw our company name he informed us that he would not be able to do any work for our company and if he did the Good old’ boy Network would not give him anymore work in Thomasville, GA. Mind you these times where booming with home sales. At that point we realized that the small town of Thomasville did not receive new comers in the real estate business very well and to our astonishment could not believe these form of band existed in today's day and age.

So, it makes you think who is manipulating the real estate system? Sellers and buyers do not realize what really goes on behind the scenes until they personally have been affected by the same systems that placed them in their homes but by then it is to late and a bitter experience is achieved and all Realtors are grouped with the bad apples in the industry. We have spoken to enough people to know that there are many with the same sentiments but do not have the means to publish there opinions. Many in the industry are not very happy with our strong opinions and bringing these issues to light.

But these blog's are meant to educate consumers with our experiences and knowledge of what we see happening in our community. If you the reader feel differently and do not care for the information you are more then welcome to exit this web page and we want to thank you for your visit but we like to express our freedom of speech which is one of our countries greatest rights.

Izzy Bienes / Builder / Developer - Holds a Florida & Georgia Real Estate License

http://www.trulia.com/blog/CHBEcoCustomHomes/2011/02/thomasville_georgia_-_good_ol_boy_network_-_alive_and_well

The risks of dual agency in real estate!

2011-02-01T05:18:00.000-08:00

It does not matter how many bogus testimonials real estate agents or brokerage office try to give a positive spin to dual agency it does NOT work. Here is another reason why it does NOT work. Buyers & Sellers get educated when buying a home.

by E.L. Miller

Consider the fact that dual agency is no longer allowed in many states. There's a good reason for that. Dual agency is the arrangement in which the same real estate brokerage (and often the same agent from that brokerage) represents both the sellers and the buyers of a property. It is not only a conflict of interest, but often impossible, for a real estate agent to fairly represent and negotiate for both sides of a real estate transaction.

The only advantage of a dual agency that comes to mind solely benefits the real estate agent. That's because the listing agency doesn't have to split commission with a buyer's agent. Aside from that, nothing good can come from such a business deal. In negotiating a fair price, how can an agent work to get the best value for the buyers while fulfilling their fiduciary duty to the sellers?

Technically, a dual agent is not allowed to disclose to the seller what the buyer is willing to pay, nor are they allowed to tell the buyer what price the seller is willing to accept. Instead, they are supposed to broker and negotiate on behalf of each client, while keeping the confidential knowledge to themselves. This is a no-win situation. Not only would this be a stressful (and risky, from a litigation viewpoint) situation for a real estate agent who is trying to keep both clients' best interests in mind, but it is an opportunity for a less honest agent to sell a home at a higher price than a buyer should pay for it, thereby receiving a higher commission.

Picture selling and buying property as if it were a legal transaction (yes, it actually is a legal conveyance, but think more of the courtroom scene to help the following example take shape). Real estate purchases are not like mediations; there is nothing binding a particular seller and buyer that requires them to reach an agreement with each other. Instead, they are like trials, with each side represented by a professional who is looking out for his or her client's best interests, and no one else's. There is no exchange of private information made that might damage one sides chances over the other. That would be grounds for malpractice.

Fortunately, in states that still allow dual agency at all, law requires the brokerage or individual agent to fully disclose, usually in a writing to be signed by both parties, that a dual agency exists, often in the sales contract or in an addendum to it. Supposedly, the parties are made aware of the dual agency before they reach the point of signing a sales contract. (At that point, most negotiating is over, and the disclosure would come too late.) This gives the purchaser the opportunity to procure their own representative - a real estate agent who represents buyers. Home purchasers do not pay a buyer's agent; the agent is paid by the split of the sales commission, so the listing agent doesn't walk away with the entire six percent of the sales price, or whatever the percentage may be. An honest real estate agent doesn't mind splitting this commission - it's good business for everyone.

Learn more about this author, E.L. Miller.

Real Estate agents in today’s market are a dying breed and the ones doing real estate full time is trying to stay above water so they do not drown and 99% of the listings they are selling is there own to maximize their commission.

The "Top 10 Complaints" Received by the Real Estate Commission

2010-12-13T09:23:00.000-08:00

1. Misrepresentation

The License Law requires agents to refrain from misrepresenting material facts - either affirmatively or by willful or negligent omission. What is a material fact? Generally speaking, it is any information which the parties need to know in order to make an informed decision (i.e., which might affect the parties' decision to purchase or sell, or which has the potential to put the contract or interests of the parties at risk).

Material facts fall into three broad categories: facts about the property (leaky roof, synthetic stucco siding, presence of asbestos, etc.); facts relating to the property, including zoning changes and plans for a major highway nearby; and facts which relate to a principal's ability to complete the transaction, such as a bank foreclosure. Typical complaints of misrepresentation involve material facts that include hidden defects, changes in land use, whether a piece of land "percs," square footage and lot-size errors.

A recent complaint came from a condominium-buyer who discovered after closing that the condominium was smaller than she had been led to believe. In fact, the unit measured 200 square feet LESS than the figures in the listing agreement! The listing agent admitted to having used tax records to obtain the square footage.

To avoid this type of complaint, disciplinary action by the Commission and the potential for civil liability, do your homework! Don't rely on the work of others. Measure each piece of property yourself.

Be aware that your duty to properly disclose includes oral representations and representations made in print, so check your MLS listings and advertisements for accuracy. Also be aware of your duty to disclose material facts to all parties involved in the transaction, not just to the party you represent.

5. Disputes over Contract Acceptance

The Statute of Frauds requires that all contracts for the sale of land be in writing to be enforceable. Furthermore, all negotiated terms must be in writing, any changes must be initialed by the parties, and the contract must be signed by all parties.

A typical complaint occurs when agents negotiate for their clients orally; e.g., an oral counteroffer is relayed to the buyers and they agree to the new terms; their agent calls and informs the sellers' agent, who tells the sellers. The sellers think that they have a binding contract, but they don't. While the oral acceptance is an indication that a contract will soon be formed, it is not itself legally binding.

To avoid creating conflict between the parties and to ensure that your clients have an enforceable contract, don't tell them that they have a contract until you have the contract signed by all parties.

7. Conflict of Interest

The License Law prohibits agents in a transaction from acting for more than one party without the knowledge of all parties. Complaints in this area usually deal with dual agency, seller subagency, and special relationships between the parties.

With dual agency, there is an inherent conflict of interest because the agent is representing both the buyer and seller, who have different and competing interests. To avoid this type of complaint, you as a dual agent must be sure to disclose the duties that you owe to each party. Thoroughly review the agency forms and explain how your responsibilities as a dual agent differ from those in an exclusive agency arrangement. Finally, be sure to have the parties sign the Dual Agency Contract or Dual Agency Addendum, whichever is appropriate.

As a seller's subagent, keep in mind that although you are working with the buyer, your primary obligation is to the seller. Don't advise the buyer on strategy or advocate on his or her behalf.

Finally, if you have a special relationship with any party to the transaction (e.g., you are a relative of the buyer), disclose it to all parties to avoid the appearance of impropriety.

8. Discrimination

Recently the Commission received a complaint alleging discrimination at an open house. The matter ultimately was resolved, but not before an investigation by both the Real Estate Commission and the North Carolina Human Relations Commission.

The Fair Housing Act makes it unlawful to discriminate in the sale or rental of dwellings of four or more units on the basis of race, color, religion, sex, national origin, familial status (the presence of children under 18 years old) or handicapping conditions (including AIDS). Therefore, if you discover that the landlord, tenant, seller, or buyer that you represent intends to discriminate on the basis of any of these protected classes, you must immediately terminate your agency agreement with that party, or risk violating the law and losing your license to sell real estate in this state.

9. Records Violations

When the Commission receives a complaint, the first thing Commission staff requests is a copy of the firm's records, including bank statements, canceled checks referencing a ledger sheet, deposit tickets, separate ledgers, general journal or check stubs identifying each transaction, copies of contracts, leases, management agreements, closing statements, property management statements, and other relevant documents.

Commission rules require that agents retain records for three years; however, because complaints filed after the three-year limit for record retention are investigated, the Commission recommends that agents retain their records for longer than three years. Be aware that your documents indicating proper record-keeping can be used in your defense in the event that a complaint is filed against you.

10. Lack of Communication

Many complaints to the Commission come from disgruntled clients. Complainants state that their agents will not return their phone calls or keep them updated on their transactions.

Try to avoid this situation by communicating with your clients. Return their phone calls. Keep them informed about what you are doing for them and how the transaction is going. An informed client is less likely to complain to the Commission.

By Pamela V. Millward, Associate Legal Counsel

When buying or selling real estate and working with dual agency always educate yourself on the rules and ethical responsibilities of dual agency. Some real estate agents have been doing dual agency for a long time and are very good when it comes to using loopholes on listing properties, like the “Word” “Buy Owner” when it comes to square footage – like when public records square footage does not match owners square footage, energy efficient home, extra insulation, quality home, bonus rooms done without a permit. If you suspect something is wrong with your real estate transaction you should consult a trusted real estate Attorney.

Capital Home Builders - Top Merchant Recognition

2010-12-12T06:25:00.000-08:00

Capital Home Builders would like to thank Merchant Circle for this Top Merchant recognition on my devotion in providing consumers with a valuable service. Merchant Circle has been a great venue for our Business.

CHB Eco Custom Homes

Thomasville, Georgia, 31792, Real Real Estate, Homes For Sale, Green Homes, UnEthical Agents in Thomasville

Dual Agency is the Ultimate "Bait and Switch."

2010-10-21T04:10:00.000-07:00

Bait and Switch
Dual agency is potentially one of the worst “bait and switches” possible because it involves the “switch” (abandonment) of a trusted advisor and advocate. Even with disclosures, consumers rarely expect the change in relationship that comes with dual agency and they are almost never prepared for the complete abandonment that defines dual agency. And despite the degradation in the level of services in a dual agency situation, the client still pays full commission in a dual agency.

Should Less Service Equate to a Lesser Fee?
The Consumer Federation of America came up with a recommended fee schedule that suggests a sliding downward scale to align the degradation of services that results from dual agency with a lowering of the fee Realtors charge. According to them, less service should translate into a lower fee. The Minnesota Bar Association incorporated this fee structure into their Standard Listing Contract, but since Realtors typically control which listing contract consumers sign, the Bar Association’s Contract is rarely used. (see attachments below). As a result, consumers typically pay the same amount for an agent who offers nearly no service (a dual agent) as they would for an agent who provides full service.

Compare to Attorneys
Attorneys possess incomparably superior education and licensing standards as compared to Realtors. In addition, attorneys are trained in how to manage conflicts of interest. Realtors are not.

Attorneys must have a post graduate doctorate degree and pass a State Bar Exam in order to become licensed. They also have a meaningful Code of Ethics that provides substantial and public penalties for infractions. Even with their tremendous training in agency relationships and conflict management, attorneys avoid dual agency because of the impossible situations it creates.

Licensing requirements for real estate agents are essentially non-existent. The minimum standard to obtain a real estate license doesn’t even require a high school diploma and an individual can often obtain their license after taking only a 30 hour class on how to pass the exam. And their "Code of Ethics" is enforced by peers (competitors) who are members of their trade association and all decisions are kept private. Licensing laws are typically lax as is enforcement of those laws.

There really is no comparison. Realtors do not possess the necessary training or education to engage in such a complex relationship as dual agency.

Despite the complete lack of minimum standards and the incredible complexity and danger of dual agency, it is now legal in most states for Realtors to practice dual agency. It is typically not legal for attorneys.

Attorneys run conflict checks to avoid dual agency and have for the most part bifurcated their profession into plaintiff and defendant firms. Nothing like that system exists for Realtors. We believe that it should. To make matters worse, Realtors don’t understand dual agency, they have little training in conflict management, the and disclosure forms are misleading and inadequate. Consumers don't understand it, are highly vulnerable and typically rely upon their Realtor for skewed and inconsistent “advice” about dual agency. And to totally drive the malfeasance home, Realtors are financially encouraged to practice dual agency and fondly refer to the bagging of dual agency clients as a “hogger.”

The Worst Kind of Swine Flu
Dual agency (aka "Hoggers") exist to enable real estate brokerage firms to double in size and to unfairly collect double commissions. It's greedy, dishonest and anti-competitive. Similar to theft by swindle, dual agency is highly profitable and relies upon the vulnerabilities of its victims to succeed. Oddly enough, dual agency was a response to an innovative entrepreneurial business model of exclusive buyer agency that was quickly gaining market share. Buyer agency offers a legitimate and substantial benefit to consumers in that agents sacrifice the profitability of both buying and selling properties for the exclusive loyalty that comes with only representing buyers.

Dual agency confused and misled the marketplace about buyer agency and all but destroyed the exclusive buyer brokerage innovation. It was a great loss as buyer agency aligned the agent’s financial interests with the interests of the client. It brought a higher level of integrity to the industry. It should be noted that exclusive buyer agency still exists and is promoted by a trade organization called the National Association of Exclusive Buyer Agents (NAEBA).

Omnipotent Lobbying Power
Instead of representing only buyers or only sellers, brokerage firms busted through the constraints of fiduciary case law in order to collect double commissions. Without an all powerful lobbying group behind them (National Association of Realtors “NAR”), it never would have been possible to legalize conduct that is more accurately described as a betrayal. The common law standard to permit dual agency requires a full disclosure of all the material conflicts of interest (an almost impossible standard) and the informed consent of the client (another almost impossible standard). Rather than adhere to these common sense standards, Realtor Associations across the country changed the law so that they could double dip. They amassed a colossal lobbying effort to rewrite state laws to allow for dual agency. In one lobbying effort they defiled two hundred years of common law and eliminated an important and already successful point of redress for consumers who were harmed by dual agency – class action lawsuits.

NAR – Dual Agency is a Totally Inappropriate Agency Relationship
Hypocritically, it should be noted that the National Association of Realtors previously took the position that, “Dual agency is a totally inappropriate agency relationship for real estate brokers to create as a matter of general business practice…The disclosures and consents necessary to make a dual agency lawful are so comprehensive and specific that a typical real estate broker cannot undertake them as a matter of routine.” Taken from “Who Is My Client? *– A Realtors Guide to Compliance with the Law of Agency” 1986 National Association of Realtors. See attachment below. The Executive Vice President of the Association also wrote a letter about the topic.

Dual Agency Should Be Banned
CAARE’s position on dual agency is that it should be banned. It is an insurmountable conflict of interest that results in the abandonment of the client when they need their agent the most – right when they find the property they want. No Dual Agency On Federally Funded Loans At the very least, investors who loan mortgage money should forbid dual agency in their transactions. In addition, HUD should forbid dual agency on all federally funded loans. When mortgage fraud is rampant, consumers need more than ever to be able rely upon their Realtor for exclusive representation and unbiased and untainted advice. We would like to see the elimination of disclosure statements that disclose bad conduct like dual agency and see in its place the elimination of bad conduct like dual agency.

The Worst House that the Code Will Allow:

2010-09-29T04:34:00.001-07:00

“If you built to the minimum standards Code, then you would only have achieved the worst building that the law will allow.

Homes being built. Thomasville, GA. at Sweetbrier Subdivision.

While other builders in the Thomasville, Georgia area are still using old building practices and building to bare minimum code simply to avoid breaking the law. CHB Eco Custom Homes are building homes to a higher standard. Are homes are qualified by a third party and it has earned the blue seal by the EPA. High Performance Homes are independently verified to meet strict guidelines for energy efficiency set by the U.S. Environmental Protection Agency. These homes save money on utility bills, provide a more comfortable living environment with better indoor air quality and superior materials. Building green is now more than a trend; it is a construction method that has been adopted by many.

Built Green homes are designed to provide homeowners with comfortable, durable, environmentally friendly homes that are cost-effective to own and operate. These resource-efficient homes are crafted to exceed building codes and provide homeowners with years of healthy, quality living, while protecting the precious Southeast environment.

Realtors misrepresenting listings as Energy efficient:

2010-09-22T03:55:00.000-07:00

When looking for Energy efficient property in the Thomasville, Georgia area they are a few things to lookout for. Misrepresenting a listing and selling that listing on false pretense is a lawsuit waiting to happen for the agent or brokerage office.

1. Ask for certifications. If the home builder or Realtor does not belong to a nationally recognized organization, ask how and why they are making an eco-friendly claim. If they are certified, don’t immediately assume their paperwork is legitimate. Do some digging of your own to verify their claims, and the validity of their certifications. Realtors claiming Energy Efficient homes in Thomasville, Georgia better have third part verification documents to back it up or buyer I would file a lawsuit against the agent and brokerage office for misrepresenting that listing.

2. Don’t be an undereducated consumer. Do some investigating of your own to confirm that what they’re telling you is actually true. If you’re about to make an investment of several hundred thousand dollars, shouldn’t you get the maximum value for your dollar as possible?

3. Don’t fall for the window dressing. Just because they use nontoxic paint or installed insulation with a R-value above what the local building code requires, don’t assume the house is 100% green. Very few homes (if any) can be 100% green, so when you’re listening to a long list of stats about how great their product is, keep your suspicions up. Taking notes might help too.

4. Energy efficient products alone isn’t enough. Quality and workmanship are always paramount when buying a new home. So it’s entirely possible to have the best insulating triple paned windows on the market, but a small leak around the windowsill will negate their efficacy. It’s best to think of your house as a energy efficient system, rather than a combination of green products.

Beware Greenwashing Advertisements When Buying a New Home

http://www.grec.state.ga.us/consumer/complaint.html

Price Per Square Foot is Misleading for Real Estate Values

2010-09-18T08:29:00.000-07:00

Price Per Square Foot is Misleading for Real Estate Values

Trulia Blog About Real Estate in Thomasville, Georgia

2010-09-15T16:20:00.000-07:00

Trulia.com

By Kim Woodard, Wed Sep 1 2010, 05:13

Real Estate is no different than any other profession, there are bad apples in every bunch and it doesn't matter the state you are in either. Until we as professionals take things into our own hands by going to our local Assocations, State Associations and even National if we do not get a satisfactory outcome these things will continue to happen and give all REALTORS a bad name.

By I Love Thomasville Realtors, Tue Sep 14 2010, 10:40

I regret that you feel this way about the Realtors in Thomasville, Ga. I have been a Realtor for about 5 years here in town and have enjoyed working with all the Brokers and Realtors. I found it offending to read that the only thing we care about is the "commission." That is not true, but it is our only source of income. I worked with a Broker a few years ago who waived his brokerage fees and my commission so that a non-profit would be able to purchase a property. My partner and I go the "extra mile" to make sure that we get to closing whether is helping with closing costs, reducing our side of the commission, or paying for some of the repairs. I am sure like us there are many others in Thomasville who do the same. Naturally some Realtors have more listings and Buyers than others. But look at their track record, their commitment and years in this business. You can not compete with that. I suggest you attend more Realtor functions and get to know us, than make your judgement. As for BANNING your home at Sweetbriar: NOT TRUE. Maybe your agent isn't marketing right or just maybe it is way over priced. I have tried to show it to a few of my clients and they weren't interested. Number 1 it is on Sweetwater Dr. and there are only a couple of homes built on that side of the development (one was a foreclosure) and the remaining lots were sold at auction. The home is not on the lake. The tax records show that it has 2099 SF not 2100SF as on listing (you want to be "picky"). And if you do a CMA your home is at the high end price per square footage. The median price at Sweetbriar Lakes is $122.00 a SF. The home on Sweetwater is priced at $147.95 a SF. Eco friendly or not, no one wants to have the most expensive house on the block especially when who knows when the rest of those vacant lots will be sold and built out. So, no, I don't think Realtors are "banning" you or your home. Three years on the market is a long time.....and it's definitely not all our faults! Writing negative and defamatory comments is not going to encourage cooperation from Thomasville area Realtors to assist you in selling your property. As for calling all of us Realtors "dirt bags," this just shows the level of your education. For your own enlightment, a lot of us Realtors serve on local charity boards, donate our time & money for good causes, active in our church & communities. We support & encourage each other especially now in these troubling economic times. God Bless you and I truly pray that you have a change of heart about Thomasville, Georgia and it's Realtors.

By CHB Eco Custom Homes, Tue Sep 14 2010, 20:29

I regret that you feel this way about the Realtors in Thomasville, Ga. I have been a Realtor for about 5 years here in town and have enjoyed working with all the Brokers and Realtors.

Response:

It is really nice that most Realtors like each other so much or they are just scared to be banned. There are many people in Thomasville, GA that feels like me but they do not have the recourses like I do to get it out to the consumers. So, if you think it’s only me your mistakenly wrong.

I found it offending to read that the only thing we care about is the "commission." That is not true, but it is our only source of income. I worked with a Broker a few years ago who waived his brokerage fees and my commission so that a non-profit would be able to purchase a property.

Response:

To be honest, this is very hard to believe, this comment just confirms to me that agents from the same brokerage firm are showing and selling their own listings to maximize their income. As being a professional am sure you can verify this.

My partner and I go the "extra mile" to make sure that we get to closing whether is helping with closing costs, reducing our side of the commission, or paying for some of the repairs. I am sure like us there are many others in Thomasville who do the same.

Response:

If this helps you sleep at night more power to you. I could not imagine any firm or Realtor that does this I would be really shocked if this is even possible in this town.

Naturally some Realtors have more listings and Buyers than others. But look at their track record, their commitment and years in this business. You can not compete with that. I suggest you attend more Realtor functions and get to know us, than make your judgement.

Response:

I have dealt with quite a few Realtors in this town and heard of many others to tell you that just because they have a lot of listings with no customer support whatsoever or even putting any effort in their marketing makes them such a great Realtor. Like they teach you in real estate the more listings you have the more other Realtors can sell them for you. Am a builder, how would I attend your Realtor functions? What will that do for me?

As for BANNING your home at Sweetbriar: NOT TRUE. Maybe your agent isn't marketing right or just maybe it is way over priced.

Response:

This property has been with two main brokerages in town. The first and second brokerage firm their extend of advertising was a yard sign and in a local magazine. No efforts were made to find out what was so different about this home but yet these two brokerages in today’s market continue to misrepresent some of their listing by claiming them as being energy efficient just to jump on the bandwagon. Just because new window, new A/C and extra insulation were thrown on the attic DOES not make that home energy efficient. This shows the ignorance. These listings are deceiving the consumer and as you know that is against the code of ethics as representing your listing and yourself knowledgeable in an area that you are not but yet continues to happen.

There are procedures and documentations in place in order to claim a property as more efficient then what it was or built to be energy efficient. As for my agent’s marketing, the brokerage that has it has gone way beyond my expectations of marketing my property. You as a professional should be aware how the agency works, the listing agent does the marketing for other agents to bring the buyer and as you stated previously that my property is over priced this must be the opinion of Realtors in Thomasville and why this property has been sitting for two years. I would like for you to ex plain to me as a Realtor what gives you the right to tell your client that my property is overpriced without knowing what it has that makes it so different then any other house that is being built and sold either by a Realtors or a fly by night builder which seems to be the realm of Thomasville. This is the reason why home prices are so low. Simple because of Realtors that push the only thing they know SQUARE FOOTAGE and just make an offer.

I have tried to show it to a few of my clients and they weren't interested.

Response:

You claim that you tried to show this property this is doubtful that you did and if you did you were selling it as a standard spec home. There is no Realtor in Thomasville that can explain not even previous listing agents what features this home has except my listing agent that took the time and extended her education and became the first Realtor to understand what this home is and what it offers. If you in fact did do this you would not hide behind a bogus name to address me. I am certain that you are aware of the blue house bank owned in my subdivision the listing agent came to see my property specifically in order to price her listing.

Number 1 it is on Sweetwater Dr. and there are only a couple of homes built on that side of the development (one was a foreclosure) and the remaining lots were sold at auction. The home is not on the lake. The tax records show that it has 2099 SF not 2100SF as on listing (you want to be "picky").

Response:

I am so glad that this point was touched upon and I will have the pleasure to explain. (I will be picky) So buckle up, because we are now in the okay corral. The home that sold on the lake recently at Sweetwater Dr. is stated on public records as 2260 sq. ft and this property was listed by two brokerage with two different square footages one was at 2353 sq ft and the second brokerage thought it would be more appealing to state the square footage at 2400 sq. ft. This property could have been 2400 sq. ft on plans but when it got built it was built at 2260 sq. ft. Who is unethical here? So, in reality this spec home property sold at $139.98 per sq. ft. making it overpriced. I can go on with three years of documentation of similar if not worse with this problem. Yes, I understand that public records is not always correct but as a professional you should question why the difference because it is very customary here in Thomasville not to finish bonus rooms which at later dates are finished without permits because if it was done with permits public records would be updated to the correct square footage. There has to be a protocol not just for Realtors to be fast to use the square footage by owner. Since this seems to be the way to sell the home with less square footage price I will instruct to change the square footage to BY OWNER because public records has it incorrectly that will bring my square footage price to what you guys think it should be so you guys can show it and not tell your buyers that it is overpriced.

And if you do a CMA your home is at the high end price per square footage. The median price at Sweetbriar Lakes is $122.00 a SF. The home on Sweetwater is priced at $147.95 a SF. Eco friendly or not, no one wants to have the most expensive house on the block especially when who knows when the rest of those vacant lots will be sold and built out. So, no, I don't think Realtors are "banning" you or your home. Three years on the market is a long time.....and it's definitely not all our faults! Writing negative and defamatory comments is not going to encourage cooperation from Thomasville area Realtors to assist you in selling your property. As for calling all of us Realtors "dirt bags," this just shows the level of your education. For your own enlightment, a lot of us Realtors serve on local charity boards, donate our time & money for good causes, active in our church & communities. We support & encourage each other especially now in these troubling economic times. God Bless you and I truly pray that you have a change of heart about Thomasville, Georgia and it's Realtors.

Response:

This paragraph just confirms that you have no knowledge about Eco-Friendly and energy efficiency and what a custom home entails because if you only sell homes by their square footage what does that say about your education.

Realtors need to stay with the times and sorry to bring you to reality you will hear more about my type of custom green homes because the building industry is heading that way and standard or mediocre building practices is not sufficient anymore.

People who are truthful about themselves and know who they are do not have to advertise their good deeds. My opinion of Thomasville is that it is a great town but to change my opinion of some Realtors remains to be seen. Until Realtors stop making accusations that my property is overpriced and take some effort to learn and inform themselves and their clients the property features and the difference between a spec home to a custom green home I will continue to bring awareness. You as a professional have other ways to sell a property then compare what property is the cheapest per square footage. Sellers in Thomasville are hurting and for a Realtor to tell them that their next door neighbor is selling for $86.00 square foot and compare those low end homes to their home and to sell cheaper to me that is just wrong. Remember I am a builder living next door to these homes that are being built. I personally would not sell one of these homes to my worst enemy, also my homes are not resold after one year purchase. I will be more then glad to sit with you and tell you how Thomasville Realtors took me to my current opinion. Can we all work together? The ball is on your court.

Our Custom Features to local fly by night builders and Realtor's who are also building and selling their own in Thomasville, Georgia:

http://www.capitalhomebuilders.com/PDFS/Compare-Our-Custom-Features-to-Other-Builders.pdf

Thomasville, Georgia Real Estate Agents Boycotting Green Homes and green home builders.

2010-09-14T05:27:00.000-07:00

Small town does not embrace green building, but some agent’s listings are fast to misrepresent their listings as Energy Efferent.

It is the twenty first century and the concept of green building—which may have sprouted as a trend from a select group of forward thinkers—is slowly becoming standard practice. If going green is the future, it seems that the future has arrived. And it is here to stay.

According to McGraw-Hill Construction’s 2009 Green Outlook, “The overall green building market (both non-residential and residential) is likely to more than double from $36-49 billion in 2009 to $96-140 billion by 2013.”

The report says that 70 percent of consumers report they would be more inclined to purchase a green home in a down market.

"It is likely that green will reach the mainstream of the global marketplace and achieve critical mass.”

So why is green building growing so rapidly?

It seems the awareness of climate change, with eyes also focused on other pressing environmental issues, is driving society to find a sustainable way of living, and fast.

This heightened consciousness, coupled with the facts—that green building saves on energy costs while creating a durable, healthy and higher quality home—draws many closer to the green building industry.

It doesn’t hurt that architects and design companies are catching on and creating attractive options for consumers, such as prefab homes, green communities, and apartment complexes.

While some of these projects may first seem costly, they not only offer a high quality of construction, but also help save on long term energy costs—which in the end balance out with original overheads.

Additionally, green rating systems, such as LEED for Homes and Energy Star, have become more prevalent, making it easier for those interested in meeting green standards to succeed in their mission.

Today, the demand for green building is high and continues to rise, growing simultaneously with society’s dependence on fossil fuels, elevating again and again with each bump up in fuel prices.

So, yes, green building is good, but what exactly is it?

Energy wasted

While this question requires a thorough answer, this article can only highlight the basics:

Green building implies a process of designing and constructing a home that is energy efficient, one that uses fewer materials while making better use of the materials purchased. The building shell, or envelope, is the most important factor as this determines most of the energy flow.

“We waste 50 to 90 percent of energy in our buildings,” award-winning architect Michael McDonough said. “Energy use per square foot has gone up 14 percent per year in buildings over the past 10 years.”

Green building needs to result in a highly durable home that saves on energy costs, provides a healthy life for those inside it, while minimizing the home’s footprint on the environment.

A green home strives to have high indoor air quality; what is inside the home—from building materials to furniture—should not add toxins to the air. Products that do not emit VOCs (volatile organic compounds) should be used as much as possible.

A green home should save on energy and resources such as electricity and water. If the building envelope is constructed properly, the energy needs of a resident can decrease up to 80 percent. McDonough recommends autoclaved aerated concrete for the shell.

It is airtight; and with its thermal properties, it can save up to 50 percent of energy used for heating and 75 percent in air-conditioning energy use.

Solar power for hot water is also a great advantage. Water consumption should be minimized by using low-flow shower heads, high-efficiency toilets, and high-efficiency or tankless water heaters.

Recycled materials or materials that can be recycled should be used, as should products that are locally made. Products should be resilient to avoid unnecessary replacement and repair.

Whether building a home or remodeling, there are many ways to go green. It begins by thinking green—understanding the advantages of life inside a green home as well as its benefit to the environment all around.

By Adam Miller

“How Many LISTED & SOLD properties From The Same Brokerage Office Does It Take Before We Can Call It ADVOCATING ”

2010-07-27T14:47:00.001-07:00

The real estate market has changed in the last few years and agents find themselves working harder in order to get a client and every agent is out for themselves. Unfortunately, those that weren't doing so well to start with find themselves getting a 9 to 5 job.

Lately, I have noticed more and more the practice of Advocating. Advocating is when an agent in a dual agency only shows you properties from their on office or just their own listings. I believe this should be outlawed in all states is when a state allows dual agents and agency to only show properties from their own brokerage office or their own listings to keep a bigger commission in-house when 95% of the brokerage office listing properties are being sold in-house more times than not the practice of DUAL AGENCY is accruing. You can be sure it is not because that office has the best looking properties in town. Even though DUAL AGENCY is legal in many states and many agents preach and even make themselves believe that this type of agency does not harm either parties are just convincing themselves that it's a good practice. Consumers have a choice in proceeding with this form of agency (it is not recommended by many) if advised by their representing agents what the true meaning of this agency is. Some consumers have no issue with this type of agency because they can represent themselves based on their real estate experience and this is great but always keep in mind that the agent is truly representing the sellers if the buyers are buying from the seller’s agent.

DUAL AGENCY in my opinion is not providing full representation to either the buyer or the seller. We expect our representing agents to advertise our properties for other agents from other firms to bring us a buyer and if by any chance our representing agent brings a buyer we expect, we even demand for our agent to make it clear to the buyer that they are representing our best interest and will negotiate to our benefit and if the buyer does not feel comfortable with this we would strongly encourage them to hire their own buyers agent.

You as a buyer can ask the brokerage office to show you how many properties have sold in a few months and who sold it, another way is to make sure all of the real estate signs in front of the house you are looking to buy are not all from the same brokerage office. This is not going to be easy because a home buyer at the time of any property showing is just interested in looking at the house and he/she does not think or even notice the same yard sign.

The Age Old Dual Agency in Real Estate Debate By Patrick Flynn on February 16, 2010

2010-07-18T07:56:00.001-07:00

So, what should I do to avoid Dual Agency?

The first question I would ask as a buyer or seller is, “Do you practice dual agency?” As I said, this may be a mute point to many in our Union because their State has wisely outlawed Dual Agency. But, if you are unsure of your States laws, ASK! The ethical agents out there will avoid Dual Agency like the plague. So, common sense would dictate that if you get a sense of apprehension or evasiveness from your agent or they flat tell you they do practice Dual Agency…you may want to look for a new agent.

Electrical Bill in Thomasville, Georgia A Hoax our Reality

2010-07-09T07:24:00.001-07:00

When purchasing a home in the Thomasville Georgia area, always have the real estate agent supply you with the utility company servicing that area. The electrical company should be able to give you the average of the low and the high. The low point would be what the home will use in the winter. Some of the unethical real estate agent would advertise the low point of the electrical bill to make the home more attractive.

DUAL AGENCY - National Association of Realtors - NAR

2010-06-23T12:43:00.000-07:00

We are going to continue talking about DUAL AGENCY to educate the consumer on what to look for when in a DUAL AGENCY situation in states where DUAL AGENCY is legal. All Real Estate Brokerage office are practicing Dual Agency because it is legal to do so but MUST be disclosed in writing to both the buyer and seller and get it in writing that they approve this agency. Within this agency there are do's and don'ts. Consumers just need to be aware and if they are comfortable with their agent performing in this capacity then more power to THEM. A buyers Agent will lookout for your best interests.

CHAPTER 3: INDIVIDUAL POTENTIAL PROBLEM AREAS: SEVEN-YEAR ANALYSIS

3.4.1 Dual Agency

A large number of Board Attorneys express serious concerns about Dual Agency. As one Attorney stated, "Dual agency is a legal oxymoron." The Attorneys are concerned that both licensees and their clients do not understand the nature of dual agency or the agent's duties and obligations. "Agents can't explain it, consumers don't understand it, lawyers recoil from it, and the courts, by and large, haven't yet put it to the test. It looks fine on paper, but isn't working in practice." The Attorneys are also concerned that even if licensees do understand their duties, they cannot adequately represent both parties. "Very few agents are able to be completely loyal and objective on behalf of two principals. Many still don't understand it or govern themselves accordingly . . . . Dual agency is simply impossible to abide by in its purest sense and agents have a terrible time trying not to cross the line." Attorneys also link this Problem to Breach of Fiduciary Duty, again noting that licensees do not appreciate what being a fiduciary entails.

P.S. We would like to add that if attorneys are having problems with Dual Agency what would be the effect to some real estate agents in Georgia that barely passed high school or that are dropouts that got lucky passing the real estate exam.

Dual Agency Dos and Don'ts

Because disclosed dual agency is not a concept that consumers, and in some cases salespeople, understand well, spend time educating them on its benefits and limitations if you choose to offer this representation option. Also, make sure dual agency is legal in your state. Here are some more pointers:

Do:

1) Disclose all material facts about the property.
2) Treat the buyer and seller honestly.
3) Provide information about the property and neighborhood within U.S. Department of Housing and Urban Development guidelines.
4) Convey all of the buyer's questions to the seller and get answers in writing.
5) Disclose the buyer's ability to buy and the seller's ability to sell.
6) Explain real estate terms and procedures.
7) Explain closing costs and procedures.
8) Help the buyer obtain financing.
9) Help the buyer arrange for property inspections.
10)Assist in the standard purchase agreement.
11) Work diligently to complete the sale after the purchase agreement is accepted.

Don't:

1) Work to the detriment of either party.
2) Discuss the motivation of either party.
3) Disclose the price the seller will accept or the price the buyer will pay.
4) Disclose terms other than those in the agreements.
5) Say anything that would hinder the bargaining position of either party.

Adapted from Marcie Roggow, Today's Buyer's Rep, Real Estate Buyer’s Agent Council, January 2000

"Original article is found on http://www.realtor.org/�"

DUAL AGENCY IN SOUTH GEORGIA

2010-06-18T15:05:00.001-07:00

A listing agent of a property is working for the seller. If you happen to have the unfortunate luck to buy a home from the same agent that is listing the property that agent is working for the seller NOT YOU, so he/she is going to try and get as much for that seller as possible because the more they get for that property the more they make on the commission. And by having the same agent working the deal he/she makes the whole commission. A Win Win for the agent and Brokerage office and bad for the buyer. We will never know if he/she the buyer really got the best price for that home? Remember an agent in this position can not negotiate if they do they would be violating the license LAW. Negotiation is a big part of an agent’s job and if this portion is taken out from the equation the agents functions is merely a paper pusher. If you as a buyer do not mind having your agent function in this position by all means!

'Favorite Place' on Google! Congratulations! CHB Eco Custom Green Homes

2010-06-06T06:53:00.001-07:00

Capital Home Builders is one of less then 250,000 businesses in the U.S. to receive this recognition; that's less then 1% of all U.S. businesses. Because we are so popular.

CHB Eco Custom Homes

IGNORANCE IS BLISS:

2010-05-18T09:50:00.001-07:00

The new scoop for marketing a property listing to appear as a good buy is deviating from public records information as to the square footage. Many agents justify their square footage source as “Per Owner”. We are not sure what that implies? In a normal world as a professional you're required to pull tax records to get the homes square footage and other pertinent information about the property and if public records do not match with the owner’s information than as a professional you know something was either done without a permit or a mistake has been made. In this situation, it is up to the property owner to get this corrected either by appraisal or updating public records or by having city appraisers re-visit the property to verify property information but most owners do not do so because ultimately it may pose a financial burden.

A number of agents are adding hundreds of square footage to their listing and then claiming "as per owner". I am assuming as a real estate agent, a professional, would address this discrepancy and not pass the buck as to they would not be responsible for the listing they represent. Here we go again with assuming, you know what they say about assumptions! Always ask your agent (a real estate professional) were did the added square footage come from. If she/him claims it came from the owner, I would ask them for documentation justifying the added square footage. Because once you buy the property it is your problem to resolve and for future resale. Remember that the listing agent of any property is working for the SELLER NOT YOU THE BUYER….. And if they are working for the buyers as well they are acting in a dual agency. Ask yourself this Question: Would you go to the same attorney performing a divorce for both husband & wife? Well this is the same thing.

Dual Agency in a Small Town in South Georgia - who is your agent working for?

2010-05-18T09:43:00.001-07:00

Buying and Selling a Green Home in Thomasville

2010-05-02T10:10:00.000-07:00

A greener world is not just a dream like some people in the real estate industry seem to think. Building codes have changed and continue to change towards a more energy-efficient method that includes the way a home is constructed, type of windows and even the type of insulation used. Consumers, now more than ever are more aware on what amenities are available to them besides just buying the biggest home on the block.

The problem arising in the real estate industry, especially in small towns like Thomasville where a limited amount of knowledgeable Green professionals realize how the real estate industry has changed. Real estate agents and firms that once thought that the introduction of green, energy efficiency, and smart home technology construction by Capital Home Builders, Inc. ( a local builder) was just an outsiders sales gig. This innovative and insight of an unheard type of construction was not well received by the local real estate industry.

Nevertheless, as overwhelming news media embraced the necessity of a more sustainable way of life came to light these real estate agents and firms find themselves now jumping on a bandwagon they know nothing about or care to admit is a reality. But in order to be competitive, and with the gaining consumer knowledge on green or energy efficiency of a home these agents & firms are resorting to (GREENWASHING) by misrepresenting their property listings calling them energy-efficient when in reality they are not in order to compete with a true green Energy Star home which is only being built by Capital Home Builders, Inc. But what is the advantage they are trying to push? The answer is simple, square footage, square footage and more square footage with misleading claims.

What does this all mean to buyers looking for energy-efficient homes in Thomasville?

Simply this: Buyers looking for green or energy-efficient homesin Thomasville soon will be surprised to find limitations to their request because only one home is truly Energy Star Qualified in Thomasville, GA. With this limited selection, buyers are presented with larger square footage homes that are misrepresented by their listing agents and real estate firms as energy-efficient when in fact they are not. Buyers are being misled by their agents that are not qualified to advise their clients of the difference between the two.

Professionals lacking the knowledge of the meaning of energy-efficient homes will argue that qualified green or energy efficient homes should be comparable with other homes, and why would they be?

This is the simple analogy: For every $1.00 saved annually by the homebuyer results in a $20.00 increase in home value. So, how in the world would an Energy Star Qualified home be comparable to any standard run of the mill spec home?

Energy-efficiency and green homes are not a fairly new market like some people seem to think. Home efficiency has been around since 1996. It has only become popular in recent years because the United States has encountered astronomical energy price increases on a daily basis and has become a hot news topic and a major concern for consumers. So, this market is by no means considered new or a niche.

An Energy Star Qualified home affect prices because qualified homes are worth more than a standard spec home and appraises higher and qualifies buyers with more buying power by large lenders. Spec homes and existing homes that only offer consumers heavy millwork and more square footage are priced at a lower rate, and appraise lower.

Green Buyers

Buyers find themselves with a dilemma in their search for a green home in Thomasville. With the lack of availability of qualified green or energy efficient homes, buyers end up with the untrained real estate agent pushing (steering) a home that is misrepresented as energy efficient at a lower price with more square footage and fewer amenities in order to compete with the Energy Star Qualified home. Agents will soon convince buyers that their investment would be better spent on a larger home because buyers get more for less but neglect to tell buyers that on resale they will loss between 10-20% from their purchase price simply because the only thing they have to compete with is square footage like every other house on the market.

Sellers will hold firm on their price for their Energy Star Qualified homes and the educated buyers will recognize the benefit that comes with the prestigious blue label logo because they will enjoy the following:

Lower utility bills

Stronger construction,

Healthier indoor quality

Lower maintenance

Quieter homes

More amenities

And most of all higher resale value because contrary to what other local real estate professionals may believe or think they know about green or energy efficient homes they are oblivious to the fact that qualified green or energy efficient homes do appraise higher and lenders will provide for higher buying power. You just need to talk to an Eco Certified Agent and with a lender that provides these types of mortgages for example like Bank of America.

Unlike statements made by others that green or energy efficiency has no weight on appraisals or on lenders are mistaken and misinformed and incorrect on their statements.

They may be speaking of homes that are misrepresented as green or energy-efficient that will appraise lower because they are homes that are not documented as being true Energy Star Qualified homes and the reason why statements are made that these features have no weight.

In other words, is a Mercedes Benz equal to a Ford?

So, why would you the buyer think or expect for an Energy Star Qualified home be equal to a minimum standard spec home?

Green Sellers

A seller that owns a qualified home (by qualified I mean a home that has been rated by an independent third-party verifier) trying to sell these type of homes would contact an appraiser that has the training for appraising qualified green or energy-efficient homes in order to incorporate these values into the appraisal.

Like everything else, these qualified green or energy-efficient homes are treated differently than standard minimum spec homes. A regular run of the mill appraiser that has no training on these types of homes would not be called upon by any lender providing green or energy-efficient financing. This type of financing is called EEM (Energy Efficient Mortgages), FHA EEM’s and VA EEM’s for information log on to www.EcoHomesGA.com/mortgages.html

A lender providing buyers seeking EEM financing provide buyers with additional monetary incentives for their purchase and a larger buying power. Unlike, local lenders will soon tell buyers they do not have any idea of what you, the buyer, are talking about and that there is no such thing.

The only difficulty a green seller may encounter in a small town like Thomasville with their qualified home is hiring a real estate agent in an agency that lacks the knowledge on green or energy-efficient homes. These professionals will soon tell you their famous words “they need to be comparable” and soon tell sellers what standard square footage pricing is in the area. In other words, if you insist and provide support to the value of the home and demonstrate to them that you know more on the subject you will soon find out the hard way as your property will lack the showings oppose to other homes in your area.

Unfortunately, some real estate professionals and agencies still believe that the old ways they use to sell real estate 20 years ago still works in today’s market and sadly become upset and maybe even stumped when a specialized Realtor designation is introduced by their own National Association of Realtors as a sign that in fact this is the future of real estate and a new form of home construction.

If you’re looking for a green or energy-efficient home in Thomasville or trying to sell a home that has energy efficient features contact your local Ecobroker Certified Agent. An Agent that is certified on green and energy efficient homes and can verify for you, the buyer, claims of homes advertised as being energy efficient and for sellers the proper way to market the energy efficient features. Remember distinguishing between the both can eliminate the utility bill shock for the buyer once already in the home and the seller avoid possible litigation for false advertising.

If you’re trying to find an environmentally friendly home and why these homes are superior to standard spec homes contact Marlene Bienes Ecobroker Certified Agent @ Rose City Realty, Inc (229) 289-0139. Buyers and Sellers take the risk of being mislead and misinformed when dealing with an uncertified professional in the Green arena.

Marlene Bienes-Ecobroker Certified Agent @ Rose City Realty, Inc.
May 1, 2010

Key Issues In Dual Agency

2010-05-02T06:40:00.001-07:00

Courts vary in their interpretation of what is acceptable and not all states endorse dual agency. Primary issues in determining equitable treatment in dual agency include:

Did the agent provide timely disclosure of dual agency and were the potential consequences of dual agency sufficiently explained to both parties? Generally, both clients must provide "informed consent" meaning that not only do they consent but that they sufficiently understand the agency relationship.

Did the agent treat each party equally fair and comply with his/her duties required under the laws of agency? Most importantly, a dual agent cannot favor one party over the other. All the disclosures in the world will not relieve the Agents' liability if he/she advocates for one client at the expense of the other. It is not yet clear by the courts whether the loss of advocacy (in dual agency) results in a reduction of the agent's "duty" to the client. Proper explanation and advance authorization by all parties in the initial agency contract is the critical factor.

Dual agency is most likely to occur when a buyer, represented by a buyer’s agent, wants to purchase a property listed by that same agents' firm. A dual agent must carefully explain to each party that the agent and the agent’s firm are also acting for the other party for whom they have the property listed.

Buyers and Sellers Working With Dual Agency: BEWARE:!

2010-04-08T07:00:00.001-07:00

Extra Square footage:
In the Thomasville, GA area the square footage of a listed property is not always the same as public record. We are not sure why the lot size is always correct, but the homes square footage is not. One reason would be to make the price of the home square footage look more attractive or the home had an unfinished room that was done after construction and the owner did not inform the county of the change, if they did their property taxes would go up. NOW you as the buyer are responsible for the extra square footage that does not have a permit. I would always ask for the public record and ask why it is not the same.

ADVOCATING:
Lately, I have noticed more and more the practice of Advocating. Advocating is when an agent in a dual agency only shows you properties from their on office or just their own listings. I believe this should be outlawed in all states is when a state allows dual agents and agency to only show properties from their own brokerage office or their own listings to keep a bigger commission in-house when 95% of the brokerage office listing properties are being sold in-house more times than not the practice of DUAL AGENCY is accruing. You can be sure it is not because that office has the best looking properties in town. Even though DUAL AGENCY is legal in many states and many agents preach and even make themselves believe that this type of agency does not harm either parties are just convincing themselves that it's a good practice. Consumers have a choice in proceeding with this form of agency (it is not recommended by many) if advised by their representing agents what the true meaning of this agency is. Some consumers have no issue with this type of agency because they can represent themselves based on their real estate experience and this is great but always keep in mind that the agent is truly representing the sellers if the buyers are buying from the seller’s agent. I would also read up on Dual Agency in Georgia "Who is Your Agent Working For"! - LOOK FOR A BUYER'S AGENT WHEN SHOPPING FOR A HOME! Email Use For More Info.

Yard Signs: in Thomasville, GA.
With the lack of home buyers do to the economy it looks like some realtors and brokers are keeping buyers restricted to their office listings only. Buyers one way to make sure you’re not being restricted are to keep a look out for the brokers yard sign. If you keep seeing the same yard sign from the same listing brokers office you are being (Restricted) Realtors and Brokerage offices in Thomasville Georgia can use the words "We Show All Listing" to their website all they want it does not change the fact that they DO NOT show all listings.

Who benefits from Dual Agency?

2009-06-01T08:22:00.000-07:00

Is Dual Agency in the publics best interest?

What is a Buyer's Agent??
A buyer's agent is an unbiased and independent licensed real estate agent who is focused on promoting the buyer's best interests. The buyer's agent should have no affiliation with the home seller or his agent; this person is there to seek out a better price and terms on the buyer's behalf.

What is a seller's agent (listing agent)?
Generally speaking, this is a real estate agent who has entered into a contractual agreement to sell the seller's home (for a commission) and to promote the best interest of the home seller; this usually entails getting the highest possible price and best terms on behalf of the seller.

Dual Agency With Same Agent?
A listing agent who also represents the buyer is a dual agent. Dual agents cannot operate in a fiduciary relationship with either party and must treat both sellers and buyers equally. They cannot share confidential information and they cannot give confidential advice. (Caution)

Who benefits from Dual Agency? The Realtor.
A dual agent. It is very difficult to obtain the highest and best price for the seller when the agent also represents the buyer. The dual agent cannot advise on home price nor terms nor negotiate on anyone's behalf.

Question? In a divorce, would you have the same attorney represent both parties?

What Is a Dual Agency And Where Does a Dual Agent Fit In
MO Gov Article, Feb 03, 2005

1. A licensee may act as a dual agent only with the consent of all parties to the transaction. Consent shall be presumed by a written agreement pursuant to section 339.780.

2. A dual agent shall be a limited agent for both the seller and buyer or the landlord and tenant and shall have the duties and obligations required by sections 339.730 and 339.740 unless otherwise provided for in this section.

3. Except as provided in subsections 4 and 5 of this section, a dual agent may disclose any information to one client that the licensee gains from the other client if the information is material to the transaction unless it is confidential information as defined in section 339.710.

4. The following information shall not be disclosed by a dual agent without the consent of the client to whom the information pertains:

(1) That a buyer or tenant is willing to pay more than the purchase price or lease rate offered for the property;

(2) That a seller or landlord is willing to accept less than the asking price or lease rate for the property;

(3) What the motivating factors are for any client buying, selling, or leasing the property;

(4) That a client will agree to financing terms other than those offered; and

(5) The terms of any prior offers or counter offers made by any party.

5. A dual agent shall not disclose to one client any confidential information about the other client unless the disclosure is required by statute, rule, or regulation or failure to disclose the information would constitute a misrepresentation or unless disclosure is necessary to defend the affiliated licensee against an action of wrongful conduct in an administrative or judicial proceeding or before a professional committee. No cause of action for any person shall arise against a dual agent for making any required or permitted disclosure. A dual agent does not terminate the dual agency relationship by making any required or permitted disclosure.

6. In a dual agency relationship there shall be no imputation of knowledge or information between the client and the dual agent or among persons within an entity engaged as a dual agent.

Why Use Real Estate Closing Attorney?
Real estate closings bring all interested parties together. They involve the execution and delivery of all necessary documents simultaneously with the payment of the purchase price and the settlement costs of the transaction. While this may seem like a simple process, conducting a real estate closing is a complicated matter and requires a thorough knowledge of the law. Accordingly, sellers and purchasers often turn to lawyers.

Closing involves a series of complex phases: examination of the title, completion and explanation of legal documents, and resolution of any possible title difficulties. Real estate closing attorneys conduct each of these steps. First, they examine the title records for prior conveyances, unpaid mortgages, liens, judgments, easements, and other encumbrances and clouds on title. They verify that the seller has the authority to convey a good title to the property and that no errors exist in the deeds in the chain of title. They likewise negotiate with the title insurance company for insurance coverage to insure titles against any adverse claims of ownership, liens, and easements.

Closing attorneys next combine all relevant information into one set of closing documents. At the closing, they provide detailed explanations of the documents to insure that the parties understand all issues involved in the transaction. Such matters include: the relevant contracts of sale, obligations of contracts, ordering of the title searches, their analysis of title searches, significance of the title search, quality of title, extent of risks, probability of damage, obligation to close or not to close, process of closing itself, and documents there exchanged. They then disburse funds, record relevant documents as public records, and prepare title insurance policies for the purchaser and lender.

The closing attorney's role can be summed up as follows:

For buyers, attorneys:
Review and negotiate the specific terms of contracts;
Help assess financing options and explain the terms of loans;
Evaluate all legal documents, such as the deed, title policy, mortgage, survey, closing statement, and seller disclosure statement;
Attend the closing and make sure clear title is transferred;
Scrutinize charges to make sure that they are consistent with estimates; and
Provide updates of any facts that affect the property interest and provide counsel if difficulties arise.

For sellers, attorneys:
Review and negotiate the specific terms of contracts;
Request title searches, surveys, mortgage payoff letters, condominium documents and all other items necessary for closing;
Prepare the deed, all other closing documents, and closing figures;
Arrange for the closing at a convenient time and place;
Attend the closing and ensure that clear title is conveyed;
Review charges for consistency with estimates; and
Provide updates of any facts that affect the property interest and provide counsel if difficulties arise.

Not all states require attorneys for closing a real estate transaction. Many states in the western United States allow title companies to fulfill this role, so in those parts of the countries lawyers are not usually involved in routine real estate transactions such as purchasing a residence or raw land. But to be sure always consult with a Real Estate Attorney.

No Dual Agency!
Dual Agency is the process by which one real estate broker represents both the seller and the buyer in a transaction. It is legal in Georgia, provided it is fully disclosed and consented to by all parties. It is also of questionable ethics – at best! – and impossible to effect fairly in practice. In consequence, in many states agents are forbidden to engage in Dual Agency.

Dual Agency in real life...
Here's what you're apt to think of, when you think of Dual Agency: An agent lists a home for sale, you see it at an open house and sign a contract on the spot. The agent represents the seller. Does he also represent you? If he does, his role is reduced to that of a transaction facilitator. He carries messages back and forth between you and the seller, but he is forbidden by the Dual Agency to advocate for either of you. He may be completely scrupulous in his performance, but the chances are excellent that either you or the seller – or both of you! – are going to feel cheated at the end of the process. If "your" agent isn't working in your interest, he must be betraying it instead. This may not be the truth of the matter, but it's a suspicion that leaps readily to mind.

But here's how Dual Agency usually works out. Your agent from Behemoth Realty takes you to a number of homes, including some that are themselves listed by Behemoth. You select one of these. Your agent is not the listing agent of the home you picked. It's listed with a different Behemoth agent. So there's no problem, right? Wrong. Your Buyer Broker Agreement is with the broker of Behemoth Realty, not with "your" agent. The Listing Contract is with the broker of Behemoth Realty, not with the seller's agent. Both agents are themselves sub-agents of the broker of Behemoth Realty, who is "your" representative and also the seller's. This is almost always worse than one agent representing both parties. In that circumstance, the agent will usually at least try to be fair. When both parties are represented by two different agents from the same brokerage, it almost always works out that each agent will advocate for "his own" client, which means that broker will be actively betraying the interests of both of his clients – probably without even knowing that this is what is going on.

So why does Dual Agency even exist?
Because brokers want to double-dip on their own listings. In the bad old days, the buyer was not represented at all. "Your" agent would act like your champion, but he was always the sub-agent of the listing broker, even if he worked for another brokerage. Every agent was working for the seller, and nobody was working for the buyer. It made no difference to the buyer who sold the home. The buyer was without representation anyway. But it made a lot of difference to the listing broker. If he could sell his own listings, either he himself or his agents, then he wouldn't have to split the sales commission with a cooperating broker. Now that we finally have true buyer brokerage, full representation for buyers, brokers have invented a fig-leaf called Disclosed Dual Agency in order to cling to the doubled commissions.

A little bit faithful...?
Agency is fidelity. When we act as your agent, we are obliged to put your interests ahead of all others, including our own. How could this ever be possible in a Disclosed Dual Agency? It can't. If we are truly faithful to your interests, we are necessarily betraying those of the other party, and vice versa. If we are mute transactions facilitators, we are robbing you of the expertise of our counsel and advice – which is what you hire an agent for. In ordinary circumstances, the sole purpose of Dual Agency is to make sure that the real estate broker gets paid double for betraying the interests of both of his clients. Whose interests are actually being served ahead of all others? The broker's – and no one else's.

This relationship involves the following limitations:

The Agent will deal with the Buyer and the Seller impartially.

The Agent will have a duty of disclosure to both the Buyer and the Seller.

The Agent will not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the Offer, or that the Seller is willing to accept a price or terms other than those contained in the Listing.

The Agent will not disclose the motivation of the Buyer or the Seller to sell unless authorized by the Buyer or the Seller.

The Agent will not disclose personal information about either the Buyer or the Seller unless authorized in writing.

The Agent will disclose to the Buyer the defects about the physical condition of the Property known to the Agent.

Before receiving an offer both you and the other party will be asked to consent in writing to this new limited agency relationship.

REALTORS TRYING TO BUILD HOMES
You would have to wonder the quality of a home when Realtors are involved in building homes, listing them and selling them all at the same time. Realtors should not be practicing builder duties. A builder has the experience, knowledge and the license to build solely homes verses an inexperience and with the lack of building knowledge a Realtor would. You would have to question who will warranty the construction if problem arises. Each Professional needs to stay within their field of expertise. You would also have to wonder the loyalty of a realtor taking on listings from other home sellers and trying to sell his own built homes.
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What is Total Square Footage:
Some Real estate professionals and Real State Brokers like to use the word total square footage when listing a home। The word (Total Square Footage) is used when the listed properties square footage under heated & cooled is to small for the listed price. The total square footage of heated, cooled, garage, porches and decks are sometimes used to justify the price per square footage of that property. So you need to ask for the total heated & cooled square footage and divide by total price = price per sq. ft. The City and County Requires any addition or unfinished bonus rooms done after the home was built would need to pull a permit. This is not the only real estate company in Thomasville that has the wrong information Advertised on square foot। This information can be found in The Public records. Do Your Homework" Be A Smart Home Buyer!

NOTE:
The purpose of this post is merely informative and gathered information from various sources and licensing law from other states that band the practice to bring awareness in the industry. This is merely an exercise of freedom of speech and beliefs, if you as a reader do not agree you simply have to stop reading and move on. If you agree feel free to post your comments.