Business Relationship Disclosure

Pennsylvania law requires Real Estate Licensees to advise the consumer of different types of business relationships permitted by the real estate licensing and registration act.

Monika Nosowski Associate Broker E-mail Office: (215) 379-1100 Direct: (215) 379-1131 Cell: (267) 312-5512 Fax: (315) 379-8533

                                               Consumer Notice

This Is Not a Contract

Pennsylvania Law requires real estate brokers and salespersons (licensees) to advise consumers of the business relationships permitted by the Real Estate Licensing and Registration Act. This notice must be provided to the consumer at the initial interview.

Before you disclose any information to a licensee, be advised that unless you select a business relationship by signing a written agreement, the licensee is NOT REPRESENTING YOU. A business relationship of any kind will NOT be presumed.

Any licensee who provides you with real estate services owes you the following duties:

Exercise reasonable professional skill and care which meets the practice standards required by the Act. 

Consumer Notice

This Is Not a Contract

Pennsylvania Law requires real estate brokers and salespersons (licensees) to advise consumers of the business relationships permitted by the Real Estate Licensing and Registration Act. This notice must be provided to the consumer at the initial interview.

Before you disclose any information to a licensee, be advised that unless you select a business relationship by signing a written agreement, the licensee is NOT REPRESENTING YOU. A business relationship of any kind will NOT be presumed.

Any licensee who provides you with real estate services owes you the following duties:

Exercise reasonable professional skill and care which meets the practice standards required by the Act.

• Deal honestly and in good faith.

• Present, in a timely manner, all offers, counteroffers, notices, and communications to and from the parties in writing. This duty may be waived by the seller where the seller's property is under contract and the waiver is in writing.
• Comply with Real Estate Seller Disclosure Law.
• Account for escrow and deposit funds.
• Disclose, as soon as practicable, all conflicts of interest and financial interests.
• Provide assistance with document preparation and advise the consumer regarding compliance with laws pertaining to real estate transactions.
• Advise the consumer to seek expert advice on matters about the transactions that are beyond the licensee's expertise.
• Keep the consumer informed about the transaction and the tasks to be completed.
• Disclosure financial interest in a service, such as financial, title transfer and preparation services, insurance, construction, repair or inspection, at the time service is recommended or the first time the licensee learns that the service will be used.

A licensee may have the following business relationships with the consumer:
 

NEGOTIABLE CONTRACT TERMS

The following contractual terms are negotiable between the licensee and the consumer and must be addressed in an agreement/disclosure statement:

• The duration of the employment, listing agreement or contract.
• The licensee's fees or commissions.
• The scope of the licensee's activities or practices.
• The broker's cooperation with and sharing of fees with other brokers.

Any sales agreement must contain the zoning classification of a property except in cases where the property is zoned solely or primarily to permit single family dwellings.

A Real Estate Recovery Fund exists to reimburse any person who has obtained a final civil judgment against a Pennsylvania real estate licensee owing to fraud, misrepresentation, or deceit in a real estate transaction and who has been unable to collect the judgment after exhausting all legal and equitable remedies. For complete details about the Fund, call (717)783-3658.
 

October 2011  Market Update

Despite some pessimism pertaining to the global and domestic economies, the U.S. housing sector continues to show promising signs of stability and growth. Low levels of new home construction and gaining sales volume fueled by an inventory of affordable housing since Richard Nixon was president have reduced the number of homes on the market. This means home prices may begin to appreciate again.

While there are many factors that can be barriers to buying a home, such as the tightening of mortgage lending rules by banks, consumer confidence in the job market is among one of the top obstacles to home ownership. In the 2011 Housing Pulse Survey conducted by the National Association of Realtors, 80% of respondents cited job security as their primary concern when deciding to buy.

For only the fourth time since the beginning of 2010, home sales in August were up both year-over-year and month-over-month, posting an 18.6% gain from last year, with first-time home buyers accounting for nearly a third of all homes purchased.  These indications of strength in the housing market may help to add to consumer confidence, which is an integral part of sustained growth. Even though there is still a long road to recovery ahead of us, there are opportunities to be had for both home buyers and sellers.

Home Sales

in millions

August home sales were up 18.6% year-to-year, posting a 7.7% increase in sales activity over July despite Hurricane Irene, which struck the Eastern seaboard and New England regions at the end of the month. As a result of the hurricane, the Northeast experienced the smallest increase in sales. At the same time, persisting restrictions among banks affecting home lending are having the greatest constraint on sales levels. NAR Chief Economist Lawrence Yun stated, “The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy.”

Home Price

in thousands

Homes prices were down, with a 5.1% drop in August compared to a year ago. The national median price for homes in August was $168,300, with distressed properties, foreclosures, and short sales still accounting for 31% of sales. The buyer’s market for residential property continues, as favorable prices, and record low interest rates offer the most affordable conditions for purchasing a home in the last 40 years.

Inventory- Month's Supply

in months

The supply of homes measured in months on the market at their current pace of sales fell 10.5% in the month of August, to an 8.5 month supply of inventory, down from a 9.5-month supply in July. With homes being more affordable than they have been in a generation and the lowest levels of new home construction since World War II, this inventory is projected to continue to fall, which will eventually result in the appreciation of home prices and a move toward a balanced market.

Source: National Association of Realtors

Interest Rates

Home ownership became even more affordable, with the average rate for 30-year fixed mortgages falling to 4.01% the last week in September. This drop came as a result of the Federal Reserve extending the average maturity of its holdings as a part of the Maturity Extension Program, an effort designed to put downward pressure on interest rates and yields on treasury bonds in order to stimulate the economy. It is hoped that this action will encourage banks to loosen lending conditions, as it becomes more attractive to loan money to home buyers, rather than invest in treasury bonds.

Source: Freddie Mac

Topics For Home Owners, Buyers & Sellers

Since affordable pricing tops the list of motivation and criteria for buying, it is no surprise that many first-time home buyers purchase distressed properties, which can be up to 30% below market value. Cost-conscious buyers are the most interested in distressed properties, but it is important for them to take into consideration the additional costs and expenses related to damage or neglect that occurred during the foreclosure process. On average, distressed property prices for first-time home buyers are $185,971 with a median of $153,000.

Another consideration for buyers is the transaction time. Short sales and foreclosures typically take considerably longer to close because buyers deal with institutions rather than individual sellers. Yet buyers who are patient can benefit by paying less.

As a seller, it is important to understand the current real estate market, and a real estate agent is there to guide sellers every step of the way. Agents can help sellers understand what the level of distressed sales and competition look like in their area. This way, they will be able to price their home right and will more than likely be able to attract attention from potential home buyers.

The Clock is Ticking!

Time is Running Out for Significant Savings! 

Economic turmoil and the real estate bubble have created significant opportunity for all those seeking to capitalize on the situation at hand. Let's address the real estate purchase market and what people interested in both buying and selling a home need to know take advantage of the current market conditions.

Before You Buy – Things to Consider
Buyers  should focus on three things that are either expensive to fix later or unable to change without buying another home:  "Location, Lot and Layout."

When considering location, use technology like GoogleMaps™ before visiting a home to save both time and gas. Mapping allows you to view the property from different angles, see if the home is on a busy street, or if it offers the other requirements you need. For example, if you need a large yard where the kids or dogs can play, a tool like GoogleMaps™ will help you eliminate some homes immediately.

While it is relatively easy to get caught up in the aesthetics, don't do it. Overlook items you can change later like paint, carpet and other cosmetic details. Narrow your focus down to two or three homes and "all things being equal, focus on location, lot and layout."

Selling a Home?
If you are selling a home and want to make sure you can get it off the market for time crunched buyers, remember that today Sellers need to be focused on having their home priced competitively and making it most appealing upon inspection. Sellers also should consider paying for a home warranty to alleviate any concerns cash-strapped buyers may have about paying for repairs after closing.

More than anything else, both buyers and sellers this year should not let the money savings opportunities pass them by. Anyone that qualifies is in a no-lose situation – they are buying at the bottom of the market, economically, historically, seasonally, market-wise and interest rate-wise. The perfect storm has arrived and the pearls and treasures have floated to the surface.

What Waiting Will Cost You
On a $200,000 mortgage, a 1.00% increase to interest rates could increase a monthly payment by $125 a month or $10,500 over a seven-year period. Obviously, the longer the loan remains in place, the greater the impact of the potential loss. After 30 years the potential loss could add up to $45,000.

If you have been waiting for the interest rates to drop so you can BUY a new home, now is the perfect time!  Don't wait any longer - make your move now before the rates go up again.

As you can see from the graphs, mortgage interest rates are LOWER than within past couple of years. Now is a great time to refinance your mortgage before the rates go up! Lower your monthly payment, get extra cash you need to pay off high interest debt, or finish remodeling your home. Contact me today for a FREE, no obligation personal analysis of YOUR financial options