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(This is an interesting Graph that Highlights Foreclosure Rates in Different Spots Around the Country..) 

Government launches sweeping new loan aid effort

WASHINGTON – Nov. 12, 2008 – The government and the mortgage industry are launching the most sweeping effort yet to help troubled homeowners by speeding up the process for renegotiating hundreds of thousands of delinquent loans held by Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency, which seized control of the two mortgage finance companies in September, announced the plan Tuesday along with other government and industry officials, including Hope Now, an alliance of mortgage companies organized by the Bush administration last year.

“Foreclosures hurt families, their neighbors, whole communities and the overall housing market,” said James Lockhart, the housing finance agency’s director. “We need to stop this downward spiral.”

The plan could have tremendous importance because Fannie Mae and Freddie Mac own or guarantee nearly 31 million U.S. mortgages, or nearly six of every 10 outstanding. Still, government officials did not have an estimate of how many people would qualify for the new program.

Officials hope the new approach, which goes into effect Dec. 15., will become a model for loan servicing companies, which collect mortgage payments and distribute them to investors. These companies have been roundly criticized for being slow to respond to a surge in defaults.

To qualify, borrowers would have to be at least three months behind on their home loans, and would need to owe 90 percent or more than the home is currently worth. Investors who do not occupy their homes would be excluded, as would borrowers who have filed for bankruptcy.

Borrowers would get help in several ways: The interest rate would be reduced so that borrowers would not pay more than 38 percent of their income on housing expenses. Another option is for loans to be extended from 30 years to 40 years, and for some of the principal amount to be deferred interest-free.

While lenders have beefed up their efforts to aid borrowers over the past year, their earlier efforts have not kept up with the worst housing recession in decades.

And critics were quick to pour water on the latest plan.

“Instead of a massive foreclosure prevention program, we wait for a homeowner to be in a failing position before doing anything, which often is too late,” said John Taylor, president and CEO of the National Community Reinvestment Coalition.

“It’s been the foreclosures that have been driving the economic downturn and we’ve been saying that for 13 months now. To stop the bleeding is to end foreclosures,” he continued. “But now that so many other sectors in the economy have fallen, I’m not sure if we’re past the point of no return. It’s appalling that they don’t get it.”

More than 4 million American homeowners, or 9 percent of borrowers with a mortgage were either behind on their payments or in foreclosure at the end of June, according to the most recent data from the Mortgage Bankers Association.

Indeed, Tuesday’s announcement comes too late for Troy Courtney, a 44-year-old San Francisco police officer.

He moved out of his home in Mill Valley, Calif., at the start of this month – taking his children, three dogs and one cat with him – after failing at several to attempts to get a loan modification or a short sale – where the lender agrees to receive less than the loan is worth.

Courtney worked overtime and tapped into his retirement account to try to catch up with two loans on his home. But in the end he couldn’t convince Countrywide Financial, which managed the loan for Wells Fargo, to modify the loan.

“I feel like I missed the boat,” he said of the new efforts to help more homeowners. “I’m just mad at the whole system.”

One reason the problem has been so tough to solve for borrowers like Courtney is that the vast majority of troubled loans were packaged into complicated investments that have proven extremely difficult to unwind.

Deutsche Bank estimates more than 80 percent of the $1.8 trillion in outstanding troubled loans have been packaged and sold in slices to investors around the world. And it appears the majority of those loans will not be helped by the new plan.

The remaining 20 percent are “whole loans,” which are easier to modify because they have only one owner.

Nevertheless, Tuesday’s announcement coupled with recent and more aggressive strategies from the major retail banks are important steps to fix the housing crisis. After more than a year of slow and weak initiatives, there appears to be a serious effort to get at the heart of the credit crisis: falling U.S. home prices and record foreclosures.

Citigroup announced late Monday it is halting foreclosures for borrowers who live in their own homes, have decent incomes and stand a good chance of making lowered mortgage payments. The New York-based banking giant also said it is also working to expand the program to include mortgages for which the bank collects payments but does not own.

Additionally, over the next six months, Citi plans to reach out to 500,000 homeowners who are not currently behind on their mortgage payments, but who are on the verge of falling behind. This represents about one-third of all the mortgages that Citigroup owns, the bank said.

Citi plans to devote a team of 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal or increasing the term of the loan.

Late last month, JPMorgan Chase & Co expanded its mortgage modification program to an estimated $70 billion in loans, which could aid as many as 400,000 customers. The New York-based bank has already modified about $40 billion in mortgages, helping 250,000 customers since early 2007.

Bank of America, meanwhile, has said that starting Dec. 1, it will modify an estimated 400,000 loans held by newly acquired Countrywide Financial Corp. as part of an $8.4 billion legal settlement reached with 11 states in early October.

Copyright © 2008 The Associated Press, Alan Zibel (AP Real Estate Writer). All rights reserved

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Below is an interesting article that suggests homeowners are anticipating the “Green” trend, and spending extra money to convert their home to be energy savers. Interesting Trend & a definite way to make your home unique & increase marketability..

Study says: 48% of homeowners would spend $2,500 or more to green up for resale

PARSIPPANY, N.J. – Nov. 6, 2008 – A Better Homes and Gardens survey conducted at home shows in 15 cities across the country gauging consumer environmental practices suggests that many Americans are going green when it comes to their homes. Despite “cost” being singled out by 36 percent of respondents as the greatest impediment to going green, half of those surveyed have paid more money for an energy efficient product in the past 12 months and one in three homeowners (30 percent) claim they would be willing to spend $5,000 or more on green improvements to increase a home’s appeal to potential buyers.

The findings are the result of the Better Homes and Gardens Real Estate Living Green Consumer Survey, which looked at responses from over 2,300 consumers. The results are being announced as a part of the Better Homes and Gardens and Green Works Living Green Tour finale – the culmination of an eight-month, 15-city tour promoting healthy and environmentally friendly living. Launched in February 2008 by Better Homes and Gardens magazine and Green Works Natural Cleaners, the tour featured a 2,500 square-foot Living Green Home, which showcased how small changes can impact the energy efficiency of everyday homes.

“As their environmental awareness grows, American homeowners are beginning to take action on green issues and are willing to spend their money accordingly,” explained Sherry Chris, president and CEO, Better Homes and Gardens Real Estate. “These survey results confirm homeowners are identifying greater value in green and when the time comes to sell their homes, they will look to convert high consumer awareness levels on the green issue into a market differentiator.”

Additional survey findings revealed that 82 percent of respondents believe they are informed when it comes to issues pertaining to the environment. When preparing to buy or sell a home, more than half of those surveyed (51 percent) believe in the importance of working with a green certified real estate agent – professionals who can assist in the identification and marketing of homes with high green quotient. This would include knowledge in regards to housing materials and construction, energy efficient appliances and systems, as well as the impact of landscaping on a home’s environmental footprint. In the cities of Hartford, Conn., Greenville, S.C., and San Francisco, two out of three respondents indicated that working with a green agent would be important.

Some of the other factors keeping survey respondents from being greener included convenience, 22 percent; lack of knowledge on how to, 18 percent; and lack of time, 17 percent. However, many consumers reported engaging in “eco-friendly’ or “green” acts in the past six months, including recycling, 73 percent; replacing incandescent lights with CFLs, 69 percent; conserving water, 57 percent; adjusting the thermostat, 51 percent; and purchasing energy efficient appliances, 30 percent.

The Living Green Tour and Exhibit included stops in Jacksonville, Fla.; Hartford, Conn.; Greenville, S.C.; San Francisco; San Diego; Las Vegas; Los Angeles; Phoenix; Houston; Miami; Nashville, Tenn., Boston; Washington, D.C.; Atlanta and New York.

© 2008 FLORIDA ASSOCIATION OF REALTORS

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Anyone looking for advice on how to close a deal in a tough market might get some inspiration from William Bronchick and Ray Cooper, authors of How To Sell A House Fast In A Slow Real Estate Market(2008: John A. Wiley & Sons).

Here are some of their ideas:

Position the house in the right price range. Buyers search by price range. Positioning a property in the middle of the range increases the likelihood people will see it.

Have information available. Deals fall apart when the buyer has unanswered questions. Work with the seller to have key information available, including cost of utilities and taxes, neighborhood liens and covenants, and an evaluation of the schools.

Put out a good flier. People are much more likely to read the flier than they are to call the number on the “For Sale” sign.

Market to the neighbors. Market to people who have just listed their own homes in the same areas. Chances are they like the neighborhood and could be persuaded to stay in the area by the right property.

Consider Creative Financing. For many people these days finding money is the biggest stumbling block.

Explain the first-offer rule to clients. In this market holding out for a better offer is a big mistake.

Source: Forbes, William Bronchick and Ray Cooper (10/21/08)

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(Wonder how long the Foreclosure Process Takes, or Better Yet… How You can Qualify? (Unbelievable we’re discussing this, but I get calls everyday from Mortgagees wondering, “How do I qualify for a Short Sale or Foreclosure”?) Many people just “Want Out” & its unfortunate because they Have the Income to Stay In Their Home and Continue Making Payments.. Above is a Graph of timeline the Bank Follows to Foreclose on Your Home, Get You Out, & Get a New Buyer In.. Banks Have Enormous Amounts of This Type Inventory! This is Why You’re Home Isn’t Valued @ What it Was 3 Years Ago & We Have a “Glut” of Homes on The Market..)

U.S. working on plan to help homeowners refinance

WASHINGTON – Oct. 24, 2008 – Federal regulators told Congress Thursday they’re working on a plan that could help many distressed homeowners escape foreclosure in a global financial crisis that Federal Reserve Chairman Alan Greenspan warned will get worse before it gets better.

Greenspan called the banking and housing chaos a “once-in-a-century credit tsunami” that led to a breakdown in how the free market system functions.

Accused of contributing to the meltdown, but denying that it was his fault, Greenspan told a House panel the crisis left him – an unabashed free-market advocate – in a “state of shocked disbelief.”

The longtime Fed chief acknowledged under questioning that he had made a “mistake” in believing that banks, in operating in their self-interest, would be sufficient to protect their shareholders and the equity in their institutions. Greenspan called it “a flaw in the model that I perceived is the critical functioning structure that defines how the world works.”

His much-anticipated appearance came as committees in both the House and the Senate held competing hearings on the financial crisis. At one such forum, a senior Treasury official said the Bush administration intends to get a program to help struggling homeowners revise mortgages up and running soon.

Neel Kashkari, who is overseeing the government’s $700 billion financial rescue effort, told the Senate Banking Committee that the new plan could include setting standards for changing mortgages to make them more affordable and giving loan guarantees to banks that meet them.

“We are passionate about doing everything we can to avoid preventable foreclosures,” he said.

Sheila Bair, chairman of the Federal Deposit Insurance Corp., told the same Senate panel that the government needs to do more to help tens of thousands of home borrowers avert foreclosure, including setting standards for modifying mortgages into more affordable loans and providing loan guarantees to banks and other mortgage services that meet them.

“Loan guarantees could be used as an incentive for servicers to modify loans,” Bair said. “By doing so, unaffordable loans could be converted into loans that are sustainable over the long term.”

The FDIC is working “closely and creatively” with the Treasury Department on such a plan, she said.

Greenspan told the House Oversight Committee he was wrong in believing that banks would be more prudent in their lending practices because of the need to protect their stockholders.

Greenspan, who stepped down in February 2006 after serving as Fed chairman for 18 1/2 years, was asked to explain his role in the crisis.

Some critics have blamed him for contributing to the problem by leaving interest rates too low for too long and for failing to regulate risky banking practices.

Committee Chairman Henry Waxman, D-Calif., suggested that Greenspan contributed to “irresponsible lending practices” by rejecting appeals that the Fed intervene to regulate a surging subprime mortgage industry.

“The list of regulatory mistakes and misjudgments is long,” Waxman said of oversight by the Fed and other federal regulators.

“My question for you is simple,” Waxman told Greenspan. “Were you wrong?”

“Well, partially,” Greenspan said.

But he went on to assign the blame on soaring mortgage foreclosures on overeager investors who did not properly take into account the threats that would be posed once home prices stopped surging upward.

He said what had been “a critical pillar to market competition and free markets did break down. And I think that, as I said, shocked me. I still do not fully understand why it happened.”

Committee members accused present and past federal regulators for not doing more to stop abusive practices or to go after wrongdoers.

Christopher Cox, chairman of the Securities and Exchange Commission, acknowledged to the House panel that “somewhere in this terrible mess, laws were broken.”

He said the government was doing the best it could to identify and pursue lawbreakers.

In the hearing before the Senate panel, Kashkari, the Treasury official overseeing the government’s $700 billion bailout program, said the administration was making “tremendous progress” in carrying out the bailout program enacted earlier this month.

As a result, there have been “numerous signs of improvement in our markets and in the confidence in our financial institutions,” he asserted.

Still, Kashkari cautioned that “while there have been recent positive developments, the markets remain fragile.”

The administration must move to resolve the deepening financial crisis swiftly and aggressively, said Banking Committee Chairman Sen. Christopher Dodd, D-Conn. Otherwise, “volatility and paralysis” will reign in the markets, he warned.

So far, the government has dealt only with the symptoms of the debacle, Dodd argued.

Sen. Charles Schumer, D-N.Y., said that by not setting conditions on banks in return for the government injections of money, “We’re feeding them a little too much dessert and not making them eat their vegetables.”

Schumer said he’s “still not convinced” that banks receiving the government money should continue paying dividends to their shareholders.

Copyright © 2008 The Associated Press, Martin Crutsinger and Marcy Gordon (Associated Press Writers).

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(I like this graph.. Gives us a visual as to where Real Estate prices are compared to Volume.. I’ll continue to use this site to give us visuals as to what buying trends look like..)

This is a positive market published in the Herald Tribune noting the declining trend in condo inventories in Sarasota and surrounding outlaying markets. Sarasota’s local condo market lead the speculating buying frenzy that occurred in 2001-2003, so seeing these figures down sheds positive light on the overall depressing market. There are many reasons why these figures are down, noted below, but soaking this niche of the market is a Red Flag for positive trends to come. With the upcoming election & Bailout Programs floating around in Washington, its tough to predict what condition our real estate market will be in during the last quarter of 2010. However, Florida is one of the most desirable destinations, US-wide, to retire too which consistently drives demand. Read on..

Bright Spot in Bleak Condo Market

Inventories of unsold homes have been reduced since last year

By Michael Braga
Published: Monday, October 6, 2008 at 1:00 a.m.
Last Modified: Monday, October 6, 2008 at 1:59 a.m.SARASOTA -The Sarasota condominium market, like practically every other condo market in the state, looks pretty bleak right now.Sales fell 30 percent to 1,510 during the nine months ended Sept. 24, from 2,160 during the same period a year ago, according to deeds recorded at the Sarasota County Circuit Court.The drop at the high-end marked was even more pronounced. Only 89 condos sold for more than $1 million during the first nine months of the year, representing a 43 percent decline from 157 in the first nine months of 2007.With the crisis in the financial markets, real estate agents do not expect the situation to improve any time soon.”I see a further drop in sales and prices in the year ahead,” said Steve DuToit, who heads up Team DuToit for Keller Williams Realty in Sarasota. “How can that not happen? When people have uncertainty, whether it’s because of the economy or an upcoming election, they are less likely to spend.”

DuToit added that the drop in sales would impact the upper end of the market most.

“Look at the stock market,” DuToit said. “That’s a major factor. People who own stock are not feeling as rich right now. If declines on the stock market continue, it will mean further declines in buying high-end homes.”

The bright sideStill, there are more optimistic ways of looking at the condo market.Inventories of unsold properties in Sarasota are down 22 percent to 3,718 units from 4,756 a year ago. Though part of the drop is because of the new MLS system that eliminated duplicate listings, and part is because of people pulling their properties off the market after not getting the price they wanted, the descending number still has a positive psychological effect.At the beginning of September, Sarasota had a 106-week supply of unsold condos, compared with a 134-week supply at the same time a year earlier, statistics provided by Team DuToit show.In turn, the 30 percent decline in sales does not look so bad when one considers that no new condos came on the market in 2008.“There were all kinds of complexes that were being completed last year, and those sales were being recorded,” said Cheryl Loeffler, an agent with Sky Sotheby’s International Realty in Sarasota. “This year, we haven’t had any condos come on line.”

Loeffler said that many of the 157 sales that occurred during the first nine months of 2007 were actually people who made their buying decisions two years earlier when the market was crazy.

As to the median price, it fell 6 percent to $220,000 in August from $235,000 during the same month a year earlier, statistics from the Florida Association of Realtors show. But Realtors say that the price drop is not a bad thing. It simply indicates that there are many more bargains to be had, and court records show that investors are out hunting.

Jonathan McCague, for example, bought three units — one at Central Park and two on Golden Gate Point — for a total of $480,000 in 2008, or about half what they were worth two years ago.

Similarly, Charles Vollmer bought units at Admiral’s Walk and Villa Rosa in Sarasota for $412,000, a savings of $140,000 from what previous owners paid.

There is no question investors like them will continue to see bargains in the year ahead, agents say, and they are most likely to find those bargains by following properties that have fallen into foreclosure.

Court records show that 438 condo owners defaulted on loans during the first nine months of 2008, which was more than double the 182 defaults that occurred during the same period a year earlier.

“All these foreclosures are why prices are so low,” DuToit said. “They are also what has created buying interest. If Dillard’s has a 50 percent off sale, you’re going to have a few people lined up at the door.”

Price is king these days.“Only 17 percent of properties listed on the MLS are selling right now compared to over 80 percent in a normal market,” DuToit said. “Unless you’re willing to price at a level that stands out from the market, you’re property is going to sit there for a while.” Foreign influencesReal estate agents have long been saying that Canadians and Europeans, with their stronger currencies, have been descending on Southwest Florida in greater numbers to scoop up the bargains. But that does not seem to be borne out by the numbers.Canadians and Europeans bought 156 properties during first nine months of the year, which represents roughly 10 percent of total condo sales in Sarasota County.Loeffler said Canadians and Europeans usually account for 10 percent of sales, and she has seen only a marginal increase from previous years.Court records show that Canadians and Europeans accounted for 14 sales of more than $1 million in the first nine months of the year compared with 12 during the same period a year earlier.That may change in the year ahead, though, says Barbara Ackerman, a high-end buyer with Coldwell Banker Previews on Longboat Key.

“The Canadian dollar has dropped in value compared with the U.S. dollar,” Ackerman said. “A condo that would have cost them $625,000 last year costs them $675,000 now.”

Compared with U.S. buyers, however, Canadians and Europeans have been the only stable force in the market.

Floridian high-end buyers, for example, bought 54 percent fewer condos during the first nine months of the year compared with a year earlier. Midwesterners bought 56 percent fewer condos, while Northeasterners bought 24 percent fewer.

Agents say it is hard to stay positive about the year ahead given the turmoil in the nation’s financial markets. But they are trying.

“By nature, I’m an optimist,” Loeffler said. “I can’t believe it will stay dormant like this. I know people are out there value hunting.”
This story appeared in print on page D10

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This article from the Inman News, is very critical on the Real Estate Industry’s Commission Structure. Anytime a business niche explodes with profits and benefits from Surplus Spending, a few things will happen. 1) The Media will Exploit the Profits made by this Sales Niche, then Here comes the competition (Everyone went out and got a real estate license front-loading competition) 2) Smaller Business will find ways to outprice the competition & bring more value to the consumer establishing their footprint in the market (This is what Shirley International Realty Inc. has successfully done..) 3) The Media will analyze, breakdown, criticize, & find ways to exploit the negatives in letting this Sales niche make extremely high profits (Hence.. this article..) I still list homes for 6-7%, while still bringing that Value to My Sellers. Sellers need different services for different reasons, so its more important than ever for Real Estate Brokers to communicate value to Real Estate Consumers.. A Discount Broker MAY be your best selling option.. Read on..

Wednesday, October 11, 2006
By Glenn Roberts Jr.
Inman News

The commission structure in the real estate industry is “an anomaly” that may inflate compensation for services rendered by tens of billions of dollars each year, according to an article published by the AEI-Brookings Joint Center for Regulatory Studies, which offers analysis and recommendations on regulatory programs.

The draft paper, “A Critical Assessment of the Standard, Traditional Residential Real Estate Broker Commission Rate Structure, suggests that consumers would benefit most from fee-for-service real estate companies that base compensation on flat fees, hourly fees and other specific payments for services rather than relying on a commission rate that is based on a percentage of the sale price of a home.

“Residential real estate brokers and salespersons have long quoted their fees as a straight percentage of a home’s sale price. This traditional formula, however, ill serves the interests of both home buyers and sellers, and is a primary reason why such fees may be inflated by, on average, more than 100 percent or $30 billion annually,” states the paper, authored by government lawyer Mark S. Nadel.

Not affiliated with the Federal Trade Commission or Justice Department and studying the real estate industry as an independent scholar, Nadel said he has also written about copyright, organ donation, affirmative action, and compensation for travel agents, among other topics.

Traditional real estate industry commission practices have come under fire from discount real estate companies and consumer groups, and government agencies have taken action against perceived anti-competitive behavior in the industry in an effort to preserve the option of low-cost and menu-based real estate services for consumers.

In a typical real estate transaction, the agent who enters into a contract with the seller receives a commission that often ranges from about 5-7 percent of the sale price. This agent typically shares about half of the commission with an agent who brings a buyer to the transaction.

Nadel said that experienced real estate brokers may actually stand to gain income over traditional commission rates by charging a fixed rate or hourly rate for services. “Some brokers are, I have no doubt, worth $500 or more per hour — comparable to the best lawyers, the best accountants,” he said.

Nadel said he agrees with Julie Garton-Good, a real estate educator, author and broker, who has said that agents often give away what is most valuable while charging for relatively routine tasks.

“That’s backwards and should be flipped around,” Nadel said. “Most other groups charge for expertise and their advice. I’d like to consult with somebody who has expertise.”

There are some very big obstacles standing in the way of changes to the structure of real estate compensation, Nadel said. “The National Association of Realtors and traditional brokers understandably want to protect the revenues they are making.”

There is intense competition in the real estate industry, Nadel said, “but it’s not on price.” Citing the example of the airline industry, Nadel said that consumers and new companies are the beneficiaries of price competition while traditional airline companies and their employees have “suffered tremendously.” Traditional real estate brokers, he said, don’t want that to happen in their industry.

“The main point of my article … is that the percentage basis is not defensible in my view. It is both too low and too high,” he said. A percentage-based commission provides an incentive for agents to sell homes quickly because compensation is based solely on the sale price rather than on the time, effort and marketing dollars that agents pumped into the properties, he said.

While the multiple listing service is a valuable tool used to list information about for-sale properties, Nadel said he believes that the MLS should be operated more like a public utility. “If MLSs continue to be operated to favor brokers over consumers, then a new entity, like Google, may displace the current NAR affiliates with a more inclusive MLS,” he states in the draft article.

Consumers are largely unaware of the compensation practices in the real estate industry, Nadel said. “I believe a large portion of buyers still think that their buyer-broker is paid by the seller, not by them … the money is coming from somewhere.” And consumer education about industry compensation practices may be the primary driver for changing the commission-based system, he said. “That will create tremendous market pressure.”

A consumer who earns $30,000 a year in salary might question why the real estate broker who assisted with a home purchase is worth the $15,000 commission collected in the deal, for example, he said.

While some real estate agents working for traditional brokerage companies have in some cases discouraged clients from working with discounters such as limited-service and fee-for-service real estate companies, Nadel contends that the concept of a “full-service” real estate company is ambiguous — especially when the so-called full-service companies work to discourage consumers from considering all available properties rather than those properties that would generate the most compensation, he said.

“Nobody is enforcing this rule that says your fiduciary duty is to the buyer,” Nadel said. “Right now there are new entrants that are using the fee-for-service (model), but there are a couple of problems that they are facing. One is that if I list with a broker who is charging me less and offering less than the 3 percent (commission), you have a lot of traditional buyer’s agents who will not show that property.”

In his article, Nadel compares the real estate industry’s commission practices to those of the funeral industry as exposed in the 1963 book “The American Way of Death,” which found that families arranging for funerals “were regularly asked to pay a single price for a bundle of services, many of which they did not need or want.”

The traditional rate structure in the real estate industry has “serious drawbacks and a lack of economic justification,” Nadel charges in the article. “Consumers would be substantially better off if residential brokers used fee structures similar to those used by professionals in other advisory/consulting service fields, such as law and accounting.”

In making a case for an a la carte rate structure for the real estate industry, Nadel states in the article that the local MLS “appears to be the a la carte offering most desired by sellers,” and “some believe that fixed-price access to MLSs is inevitable” while the National Association of Realtors trade group “and its supporters … are adamant in refusing to permit the MLS to be treated as a public entity, which would facilitate price competition.”

Some newspapers maintain searchable online databases with information about for-sale properties, and these online sites along with others such as craigslist.org or Google could function as quasi-MLSs, Nadel said. Even if a national, aggregated list of for-sale properties is created, “agents will still be valued for their early knowledge about homes about to be listed, particularly agents who monitor local news about divorces, retirements and relocations, and are even willing to contact owners of homes that may be ideal for a buyer even though they are not for sale,” the article states.

Steve Cook, a spokesman for the National Association of Realtors, said in a statement, “MLSs should not be treated as public entities because they are not public entities. They are private databases, and are no more a public Web site than Inman News Service. Most are owned by nonprofit boards of Realtors, which spend millions on their operations. They are legal, comply with antitrust law, and are a vital force for competition in the real estate industry today.”

He added, “MLSs are a powerful force for competition. They level the playing field so that the smallest brokerage in town can compete with biggest multistate firm. The MLS makes it possible for a listing placed by the newest rookie Realtor to reach just as many prospective buyers as a seasoned professional. Buyers and sellers can work with the professional of their choice, confident that they have access to the largest pool of properties for sale in the marketplace.”

As for Nadel’s recommendations about changes to the real estate compensation structure, Cook said, “We don’t comment on different business models or commission structures used by our members.”

The article states that there are many agents who are willing to provide real estate services for flat fees of less than $5,000 per transaction, agent costs per transaction do not appear to be directly proportional to the varying level of house prices and commission compensation, and brokers in other countries charge “much lower fees for providing similar services.”

More price competition in the real estate industry “could very possibly reduce total revenues for brokers precipitously, by $30 billion or more annually,” the article states. “This gives traditional brokers a strong interest in resisting this result.”

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Florida Association of Realtors put out a great article stating the recent numbers of International Buying of Florida Real Estate. Foreign buyers still have a favorable value in currency, compared to the dollar, so blending this fact with Florida’s quality of life makes your most sensible advertising dollar and time spent marketing your home on international websites.. Read on about Florida’s Realtors facts & stats on international buyers new footprinting trend on Florida turf..

Study: Foreign homebuyers favor Florida in greater numbers

ORLANDO, Fla. – Sept. 23, 2008 – While a number of factors have contributed to a home sales decline in Florida, an increase in foreign homebuyers has modified the trend, according to a just-released research paper from the National Association of Realtors (NAR), the 2008 “Profile of International Home Buying in Florida.”

Foreign buyers recognize U.S. real estate as a desirable, profitable and secure investment. In addition, the weak dollar has made U.S. real estate an even more attractive investment.

NAR, in cooperation with the Florida Association of Realtors, conducted a survey of Florida Realtors, asking them about their experience working with international clients. This survey was conducted in August 2008, with a total of 4,859 responses received from Realtors who had completed more than 4,000 transactions involving a foreign buyer during the previous year.

More than half (53 percent) of the Realtors reported that they worked with an international client in the past 12 months. The typical Realtor in this group worked with three international clients, and about one in five (17 percent) worked with six or more international clients in the past year. More than one-quarter (28 percent) had one international client who purchased a property, and 15 percent reported two transactions within the past 12 months. Nearly one in five Florida Realtors who worked with international clients completed at least three home sales transactions.

Significance of the international market

One in 10 Realtors (12 percent) reported that an international client base made up 50 percent or more of their business. Half indicated that international clients accounted for 25 percent or less of their business.

The survey also asked FAR members if they’ve seen any change in their number of foreign clients. One-third of respondents noted an increasing share in the past two years, while just over half (52 percent) said that their share of international clients remained stable, neither increasing or decreasing.

Where they’re from

Although homebuyers come from all over the world, buyers from a few regions and countries had a higher demand for Florida property. FAR members reported that Canada buyers account for 27 percent of recent sales among foreign buyers. Buyers from the United Kingdom accounted for 21 percent; and the rest of Western Europe accounted for an additional 25 percent.

Latin America – defined for the report to include Mexico, the Caribbean nations, Central America and South America – accounted for 17 percent of recent sales to international clients. In addition to Canada and the United Kingdom, countries with a small but significant share of sales included Germany (7 percent), Venezuela (5 percent) and France (4 percent).

Where they bought

The Miami-Fort Lauderdale area was the most frequently reported location of a home purchased by a foreign buyer in Florida. One in five (21 percent) bought a home in the area, followed by one in 10 (11 percent) who purchased a home in the Orlando area. Sarasota, Tampa, Fort Myers and Naples rounded out the top six, accounting for at least 5 percent of purchases by foreign buyers.

The remaining 39 percent of purchases were in other areas of Florida.

The complete 23-page 2008 “Profile of International Home Buying in Florida” survey can be downloaded in PDF format from FAR’s Web site, floridarealtors.org, at: http://www.floridarealtors.org/LegislativeCenter/Research/index.cfm

© 2008 FLORIDA ASSOCIATION OF REALTORS®

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 Shirley International Realty Inc. has made a complete portfolio out of our Flat Fee MLS Listing Service. We are now servicing Flat Fee Listings all over the US! That’s right.. Our Listing capabilities have Spanned outside of Florida and we are now listing homes in every niche & pocket of the country.. Maine, Rhode Island, Vermont, California, & Maryland are the top 5 states, not counting Florida, where we’re listing homes, so FSBO’s from all of the country are now experiencing the benefits of our Flat Fee MLS Listing Service. Discount Brokerage is on the rise as the Economy remains slow, & Shirley International Realty’s growth has never been better.. Expansion will continue as we focus on Macro MLS coverage..

Along with our expansion and growth comes responsibility to offer bigger and better services.. Now, when you list with Shirley International Realty Inc. through the Flat Fee MLS Listing Service, you have the option to upgrade your listing coverage to the top 30 Real Estate Websites on the Web. Developing positive relationships comes easy with the optimistic personality’s in our firm, so we’ve pulled together a syndication of the most highly-searched Real Estate websites on the Web & bring them to your Listing.. Couple your MLS Listing with our “Web Explosion” Package & Sell your home quicker by receiving more traffic.. Marketing is the key to finding a buyer for your FSBO home, & nobody does it better than Shirley International Realty Inc.

Learn more about a few of the Websites we advertise your For Sale By Owner Home on, when you list through our Upgraded Flat Fee MLS Listing Package.

CityCribs is a New York Based marketplace for real estate attracting visitors looking to buy, sell and rent properties. CitiCribs has quickly grown into a national housing marketplace driving thousands of daily visitors.

NyTimes.COM , the No.1 newspaper website in the US, and the Great Homes network of newspaper websites, including The Boston Globe, The International Herald Tribune, The Sarasota Herald Tribune & The Santa Rosa Press Democrat, extends to reach approximately 36 million unique visitors/month.
 

 
Neighborhood-based research, intuitive design, & rich listing content make Point2 Homes a successful and growing source for buyers and sellers to list & sell Real Estate.

SecondSpace, Inc. w web platform and online services company and has a bold yet distinct mission: to connect people with everything they need to make the most of their “home away from home”.

The World’s Largest showcase for homes selling $1 million and above. For Luxury homesellers, it is a marketplace that understands the presentation of luxury homes & estates.

Househunting.ca is part of the Canada.com Network operated by CanWest Interactive, a division of CanWest MediaWorks Publications Inc.

 
CLRSearch.com is a real estate search engine that provides a data rich environment to explore listings, community demographics, & other data relevant to one of the most important decisions in your life.

The World’s #1 search engine, Google’s mission is to organize the world’s information and make it universally accessible and useful. Google Real Estate is searched by homebuyers all over the globe.

Craigslist is a centralized network of online urban communities, featuring free classified advertisements & forums sorted by various topics.

Hotpads is an innovative map-based search site for rental housing.  

 
Oodle is a leading search engine for local classifieds with over 17 million acive listings. Oodle powers the classified search on the following sites: Lycos, Express.com, The Sun, Yell.com, & Local.com

 
Yahoo! Inc. is one of the most tafficked Internet destinations worldwide. View Listings on Yahoo!

Condo.com is a global advertising portal for condos attracting over 15 million views per month.

Vast is a database of classified ads that uses advanced technology to parse and tag ads for better search.

HGTV’s FrontDoor.COM can help you find a place you can truly call home and make informed, smart decisions about buying, selling, relocation, & home finance.

Users are alerted when properties that match their search criteria become available.

TheHousingPages.COM is designed as a central resource center for consumers looking to buyer or sell a home.

Trulia is a residential real estate search engine that helps consumers search for homes for sale, trends, neighborhood insight, and other real estate information directly from real estate agents & broker websites.

Zillow.com is an online real estate service dedicated to helping you get an edge in real estate by providing you with valuable tools & information.

Harness the power of Cyberhomes & AOL Real Estate to display your listing & get more consumer traffic. With access to more than 100 million property records, Cyberhomes delivers the information consumers are looking for—home valuations, neighborhood and school information, aerial and heat maps—with many more hot features added regularly.

The Clickable City Directory provides real estate listings and all zip codes throughout the United States. Its reach is national, its focus: purely local.

VideoHomes.COM LLC developed The Video Homes Network as a GEO Vertical Search portal that brings consumers to georgraphic specific real estate destinations in a media-rich local atmosphere.

Homescape provides local, comprehensive property listings and rich content to home buyers and sellers nationwide, while delivering a suite of advertising solutions that offer choice and results.
 

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