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Posts tagged “buyers

The Changing Face of RESPA

January 1, 2010, the new and improved Real Estate Settlement Procedures Act of 1974 (RESPA) will be fully en force. Considering this is the first sweeping change in the home buying process since 1974, it is worthy of our full attention. The new RESPA means more than new forms-it means major changes in the way real estate closings happen.

The key motive of RESPA’s new rules is to make sure consumers understand loan costs and binding parameters before singing the closing statements.

With mountains of paperwork at the closing table, there is little chance that borrowers are going to spend the many hours necessary to wade through the documents. What’s more, borrowers, especially would-be first-time homeowners, may be intimidated by the process and miss the opportunity to seek competing settlement services that could save them money.

As a real estate broker, here’s what you need to know: the new rules may impact your ability to refer business to title companies, inspectors and others you typically work with as part of the sales process. RESPA wants to make it easier for borrowers to shop for the lowest-cost, most convenient closing services by mandating borrowers receive a written list of settlement service providers. That comprehensive list includes closers, appraisers, real estate brokers, title examiners, attorneys, underwriters, pest inspectors, mortgage insurers, loan processors and other settlement service providers.

Since borrowers will receive a laundry list of competing settlement service providers, they may be inclined to shop around for the best price, even if it only means saving a couple of hundred dollars.

This is the crux of the matter as it relates to real estate practices and comes in the wake of industry abuses. Some in the real estate industry have received kickbacks for referring consumers to mortgage brokers, appraisers and other professionals along the road to homeownership. In some cases, those referrals may not have been in the best interest of the homeowner based on price or serviced provided. In other cases, the real estate agency owned the title firm or the appraisal firm at non-competitive prices.

As we move into 2010, be aware of how you might violate RESPA to avoid any issues. The chief concern is giving the appearance of kickbacks, whether in the form of money, ownership interest, marketing help or other arrangements. There is a fine line between collaboration and violation of RESPA and it can be a complicated issue.

The good news is, HUD announced that that it will be lenient in the first 120 days of enforcement of the new RESPA regulations going into effect January 1, 2010 so long as good faith efforts are made to comply. Still, in order to avoid any confusion, you should consult with an attorney about full compliance with the rules.


KW East Boca Raton’s November Newsletter

THISMONTHATKW

November Newsletter


BOLDly going where no agent has gone before

BOLD-Text-Treatment-Web_00221,000. That’s the number of transactions projected for round two of BOLD, MAPS Coaching’s latest breakthrough program! And with 22 new locations added to the lineup for 2009, living your life by design, not by default is within reach. Here are several more stats that are driving the success of agents and their market centers!

What a difference BOLD can make! In 2008, the Lake Travis market center listed 73 homes. After associates took BOLD the market center’s total listed homes jumped to 283 – a 25 percent increase!

Over the course of the eight-week BOLD program, Tim Heyl, associate with the Austin Southwest market center, took 10 listings and closed three contracts. His most recent listing was for a $2.99 million property. “If it hadn’t been for BOLD, there’s no way I would have gone after such an expensive property,” he says.
Enrolling in the BOLD Program changed everything for Gary Budek. During the eight weeks that he was in BOLD, he took 14 listings and closed 21 buyer transactions, quadrupling his production from the first part of the year. “I was letting the market get to me and getting entrenched in the negative talk,” he says. Getting into BOLD “was like a new lease on life for my business.”
Getting into BOLD is one great way to improve your business. Christian Seemuller took it one step further. Read why he joined Keller Williams Realty after becoming a BOLD student.
I was very comfortable in my real estate career, but that all changed when I started reading the MREA book. Almost at once I realized that the “comfortable” feeling I had was the byproduct of never being challenged. Soon I attended a BOLD seminar, and WOW! What I saw in BOLD was an opportunity to grow my career by challenging myself. I realized that the BOLD sessions were just what I needed! Like a clear sunny day I could now envision my true potential. It wasn’t long before I made a BOLD move and chose KW!”
 

This Month In Real Estate – August 2009

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to provide real information on real estate.

This Month In Real Estate – June 2009

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to provide real information on real estate.

Interested In A Career In Real Estate?

South Florida Real Estate Careers

Ever wonder if you’re right for a career in Real Estate? Here are a few items to consider:

 -Emotional Resilience

            How quickly do you bounce back from disappointments?

-Communication Skills

            Are you a great listener? Are you present when people talk with you?

-Persistence

            Are  you willing to keep trying, no matter what it takes?

-Positive Mindset

            Are you unlimited in your thinking and beliefs about your success?

-Committment

           Are you 100% committed to success and not merely “interested” in it?


Everyone has a story…
Begin the next exciting chapter of yours with KW® East Boca!

Why Not YOU?  Why Not NOW?™

Click HERE for more reasons why Keller Williams Realty is The Real Estate Company of Choice!