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Credit scores have never mattered quite as much as they do now, says Bob Walters, chief economist for Quicken Loans

In this new era of tight credit, having a big downpayment no longer guarantees you’ll qualify for a mortgage. Starting in mid-December 2009, mortgage finance giant Fannie Mae now requires borrowers with a 20 percent downpayment to have a credit score of at least 620. Previously, the cutoff was 580.

Fannie Mae buys loans, provide an important source of financing for lenders. For that reason, its guidelines are considered the gold standard for mortgage loans. Most banks are expected to adopt the new standards, if they haven’t already.

In addition, Fannie Mae won’t approve loans for borrowers with a 20 percent downpayment if more than 45 percent of their gross monthly income goes toward debt. Fannie Mae didn’t disclose the previous debt limit, but it was higher than 45 percent, says Fannie Mae spokesman Brian Faith.

The higher standards could frustrate buyers hoping to take advantage of low interest rates, depressed home prices and generous tax breaks that were recently extended until May 1, 2010. Even buyers who qualify for a mortgage may find that they’re ineligible for the best rates because lenders have tightened their standards across the board, says Gerri Detweiler, credit adviser for Credit.com.

If you’ve already found a home you’d like to buy, there’s not much you can do to raise your score before you apply for a loan. But if you’re just starting to tour open houses, there are steps you can take to improve your credit profile, including:

Review your credit reports for errors. Go to AnnualCreditReport.com and order your credit reports from the three main credit-reporting bureaus: Experian, TransUnion and Equifax. You’re entitled to a free credit report once a year from all three of the bureaus, but only if you go through this website.

Once you receive your credit reports, go through them and look for inaccurate information, such as accounts you never opened. All of the credit bureaus provide a process to dispute errors, says Craig Watts, spokesman for Fair Isaac, which created the widely used FICO score.

Pay off credit cards and other debts. One of the factors used to calculate your credit score is your credit utilization ratio, which measures the amount of credit you have outstanding vs. your total available credit. This ratio accounts for 30 percent of your score. Paying off balances will increase the amount of unused credit you have available, which will help your score.

But even if you’ve decided never to use credit cards again, don’t close your accounts. Closing a credit card account won’t help your credit score and could hurt it, Watts says. When you close an account, you reduce the amount of your available credit, which could hurt your credit utilization ratio.

Avoid opening any new accounts. Every new account you open is likely to drop your credit score, at least a little.

Filed under: Blog by Kim Bregman
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It is very important to have a qualified home inspection company do a thorough home inspection prior to closing on a home. here are many issues that are not readily apparent when you initially walk through a home that an inspection will uncover. When it is time for you to start looking for a Home Inspector you should ask your Realtor, Banker, or Attorney for a list of names. You can look in the Yellow Pages under Home and Building Inspections, ask friends or co-workers, or check out the directories of top national organizations such as NAHI (National Association of Home Inspectors) for a listing of Inspectors in your area. You will often have contractual time constraints that the inspection must be completed by and will need more than one recommendation to find a service that can meet your dates.

To appropriately vet the companies you have chosen to speak with…

An important question to ask is, “When do I get the report?” The checklist type and the handwritten type are usually delivered to you on-site. Computer-generated reports are also available on-site from a few inspectors who bring a portable computer to the job. Otherwise, the inspector mails the report. You may want to know up front how long you can expect to wait for it

Filed under: Blog by Kim Bregman
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The word condominium refers to a building or residential complex, wherein the units of property, such as apartments, are owned by individuals, and the common areas of the property, like the hallways, grounds, other public amenities and the building itself, are jointly owned and maintained by the unit owners.

Condominiums represent a large sector of the Florida real estate market; yet new owners are often poorly informed about the important elements that are integral to buying and living in a condo in Florida. Condos are most commonly known for being residential, but they can also be commercial or a mixture of both. Each unit/property/home is individually owned but it is purchased with communal rights to use, and pay for, the surrounding areas and grounds, amenities and facilities, plus the upkeep. Condo Associations are NON PROFIT and for the benefit of all owners.

There are many aspects to consider when choosing the right condominium unit, as different properties are right for different personal preferences or budgets. You should properly identifying how and when you intend to use the condo now and in the future; seriously deciding on a whether the unit or building is for residential or second home use, investment, for long-term rentals, or a residential or second home that could be rented out during peak periods. Many condominiums have restrictions on use and you should be sure the building you chose meets the criteria for use you have defined.

When you are buying a condo in Florida, you are required by law to receive a copy of the Declaration of the Condominium or condo docs as they are more commonly known – this is mandatory regardless of whether you are buying a resale condo, key-ready condo or a pre-construction condo. These condo docs are registered with the State and can be over 500 pages in length.

The condo docs will contain lots of specific information, including details about the developer, the formation of the Home Owners Association (HOA) and related fees, plans of the buildings, floor plans for each unit and the all important Rules and Regulations of the condominium.

Some Important information that you look for in the docs or ask for from the Condo Association:

• What exactly are your ownership and voting rights within the association?
• What percentage of the common expenses are you be liable for – many units offer different floor plans of various sizes, with each one making up a percentage
• What restrictions are in place regarding the common elements and your unit?
• Is there planning in place for further units to be constructed? Â If so, how many and when?
• Does the developer have any options NOT to complete any of the facilities or amenities?
Is there a history of resident complaints at the condominium?
• Is the Condominium Association currently involved in any form of litigation?
• Does the Condominium Association have reserved funds set aside for maintenance projects and future capital expenditures?
• What about pets – are there ANY restrictions?
• Can you rent or sell your condo without restrictions?
• Are there any restrictions regarding family and friends using, staying with, or occupying the unit?

When buying a new , key ready or pre-construction condos, you are given, by law, 15 days to review and study the condo docs. Â Buyers of resale condos are given 3 days to do the same. Â If you come across anything within the condo docs that you do not want to abide by you have the right to rescind on the purchase contract, without penalty, as long as it is done within the stipulated contractual time frames.

Many buyers will receive a copy of the condo docs, see how many pages there are and choose not to read them. This can be reckless as information regarding voting rights and rules and bylaws can be very important and often have a direct affect on how you can live in and use the condo.

In Florida, all condominiums are provided with a framework of Florida Statutes in Chapter 718. All owners of condos must pay assessments or maintenance fees which will cover the expenses for the common areas. They must also abide by the Association Rules. If, as a condo owner in Florida, you do not pay your maintenance fees, a lien can be placed on your unit and if your debts are not paid it can lead to foreclosure and eviction.

The condominium association is responsible for the maintenance, protection and repair of ALL amenities and facilities that are integral to the condominium. This will include swimming pools, tennis courts, elevators, landscaping, security, etc.

New condominiums will have a Board of Directors appointed by the developer, but this will normally be handed over to the actual owners once an election has taken place amongst the owners.

If you are buying a new or pre construction condo, the developer is required to provide ALL buyers with a prospectus if the condominium will have more than 20 units or if it is to be part of a larger group of residential condos which will be “served by property “ to be utilized in common, by condo owners of more than 20 units. This prospectus should summarize the main points of the condo docs and it is essential that you read AND understand all of the restrictions AND obligations that come with becoming and owner of the Condominium Association.

If you’re considering buying a condominium in Florida I recommend that you not only read the condo docs but also the following documents prior to writing the contract.

A set of the Condominium Association Documents & Bylaws.

The Declaration of Condominium is the most important document of all the condo docs, because this is the one that actually “creates” the condominium and is recorded in the local county official records. This Declaration of Condominium will specify the voting rights of owners, membership rights, how the common expenses are divided and a host of other important information

The By Laws will show details of the different types of meetings, their frequency and location and notification periods. The duties of the Association, the Directors and the Officers, procedures for amending the By Laws, usage restrictions and financial reporting will also be included here.

A copy of the Condominium Association Budget.

This Operating Budget will include estimates regarding all “common” expenses that are to be shared amongst the owners. Any expected future capital expenditure and maintenance projects over $10,000 should be shown here. (i.e. repainting, roof repairs or replacement, window replacement, etc.).

A list of frequently asked questions – The FAQ’s.

The Florida Condominium Act was amended in 1992 to provide additional disclosure and consumer protection for persons interested in purchasing condominium units. The law was amended to require both developer-controlled associations and unit-owner controlled associations to prepare a “Frequently Asked Questions and Answers” (commonly referred to as a “Q&A Sheet”) to assist and protect potential purchasers. Today, Section 718.504 of the Florida Condominium Act requires the Q&A Sheet to include the following: information regarding unit owners’ voting rights; unit use restrictions, including restrictions on leasing of a unit; information indicating whether and in what amount the unit owners or the association is obligated to pay rent or land use fees for recreational or other commonly used facilities; a statement identifying the amount of assessment which, pursuant to the budget, would believed upon each unit type, exclusive of any special assessments, and which shall further identify the basis upon which assessments are levied, whether monthly, quarterly or otherwise; a statement identifying any court cases in which the association is currently a party of record in which the association may face liability in excess of $100,000; and whether and in what amount the unit owners or the association is obligated to pay rent and land use fees for recreational or other commonly used facilities, and whether membership and recreational facilities association is mandatory and, if so, what fees can be charged per unit type.

The Q&A Sheet must be updated annually and must be kept among the association’s official records. It must be provided to a prospective purchaser of a condominium unit in connection with resales of a unit. Keeping and updating the Q&A sheet is one area where many associations are not diligent, and are often in violation of the law.

A list of Rules and Regulations.

A few important rules may include, but are not limited to:

• Pet restriction – A limit of the amount of dogs/cats/pets you are permitted within the condo and/or within the grounds. This can also include weight restrictions.
• No motorcycles of any description
• No commercial vehicles allowed overnight. This can also mean trucks and pick ups.
• Maximum of 3 leases per year and/or minimum stay options
• Deed restricted age requirements 55+ Active Adult regarding both ownership, occupancy and visiting family and friends.
• For sale, for rent, real estate and even business signs may not be permitted

The Articles of Incorporation

The Articles of Incorporation will explain the powers that are granted to the Association and the Board. It will explain the rights of the members, an indemnification clause for Directors and Officers as well as procedure for amending the Articles.

A copy of the Application to Join the Condominium Association.

Home Owner Association Documents and Condominium Documents are normally available from the County Clerk’s Office; many of them are now offering an online service.   For further and more in-depth information about condo docs and Home Owner Associations, take look at http://www.myFlorida.com/dbpr/lsc/index.html

Filed under: Blog by Kim Bregman
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It’s not too early to file for a property tax exemption for next year; Â filing now will allow property owners to beat the rush that normally occurs early in the year as people try to beat the March 1 deadline.

Local Online Resources

Here are the criteria to see if you qualify and the documentation you will need to provide along with your application:

$25,000 Homestead Exemption

Every person who has legal or equitable title to real property in the State of Florida and who resides thereon and in good faith makes it his or her permanent home is eligible. First time applicants are required to furnish their social security number, and should have available evidence of ownership i.e., deed, contract, etc. If title is held by the husband alone, a wife may file for him, with his consent, and vice versa. If filing for the first time, be prepared to answer these and other questions:
1. In whose name or names was the title to the dwelling recorded as of January 1st?
2. What is the street address of the property?
3. Are you a legal resident of the State of Florida? (A Certificate of Domicile or Voter’s Registration will be proof if dated prior to January 1st.)
4. Do you have a Florida license plate on your car and a Florida driver’s license?
5. Were you living in the dwelling which is being claimed for homestead exemption on January 1st?

Additional $25,000 Homestead Exemption for persons 65 and older

Every person who is eligible for the homestead exemption described above is eligible for an additional homestead exemption up to $25,000 under the following circumstances: (1) the county or municipality adopts an ordinance that allows the additional homestead exemption which applies only to the taxes levied by the unit of government granting the exemption; (2) the taxpayer is 65 years of age or older on January 1 of the year for which the exemption is claimed; (3) the annual household income of the taxpayer (defined as the adjusted gross income as defined in s. 62, United States Internal Revenue Code of all members of a household) for the prior year does not exceed $20,000 (beginning January 1, 2001, this income threshold is adjusted annually by the percentage change in the average cost-of-living index); and, (4) the taxpayer annually submits a sworn statement of household income to the property appraiser not later than March 1.

$500 Widow’s Exemption

Any widow who is a permanent Florida resident may claim this exemption. If the widow remarries, she is no longer eligible. If the husband and wife were divorced before his death, the woman is not considered a widow. You may be asked to produce a death certificate when filing for the first time.

$500 Widower’s Exemption

Any widower who is a permanent Florida resident may claim this exemption. If the widower remarries he is no longer eligible. If the husband and wife were divorced before her death, the man is not considered a widower. You may be asked to produce a death certificate when filing for the first time.

$500 Disability Exemption

Every Florida resident who is totally and permanently disabled qualifies for this exemption. If filing for the first time, please present at least one of the following as proof of your disability: A certificate from a licensed Florida physician or a certificate from the United States Department of Veterans Affairs.

$5000 Disability Veteran

Any ex-service member disabled at least 10% in war or by service-connected misfortune is entitled to a $5000 exemption. If filing for the first time, please present a certificate from the United States Government.

$500 Exemption for blind persons

Every Florida resident who is blind qualifies for this exemption. If claiming exemption based on blindness, a certificate from the Division of Blind Services of the Department of Education or the United States Department of Veterans Affairs or the Federal Social Security Administration certifying the applicant to be blind is required. “Blind person” is defined as an individual having central vision acuity 20/200 or less in the better eye with correcting glasses, or a disqualifying field defect in which the peripheral field has contracted to such an extent that the widest diameter or visual field subtends an angular distance no greater than twenty degrees.

Service-connected total and permanent disability exemption

Any honorably discharged veteran with a service-connected total and permanent disability, surviving spouses of qualifying veterans and spouses of Florida resident veterans who died from service-connected causes while on active duty as a member of the United States Armed forces are entitled to an exemption on real estate used and owned as a homestead less any portion thereof used for commercial purposes.

Persons entitled to this exemption must have been a permanent resident of this state as of January 1st of the year of assessment.

Under certain circumstances the benefit of this exemption can carry over to the veteran’s spouse in the event of the veteran’s death. Consult your appraiser for details.

If filing for the first time, please bring a certificate from the United States Government or United States Department of Veterans Affairs as your proof of a service-connected disability or death of your spouse while on active duty.

Exemption for totally and permanently disabled persons

1. Any real estate used and owned as a homestead, less any portion thereof used for commercial purposes by any quadriplegic shall be exempt from taxation.
2. Any real estate used and owned as a homestead, less any portion thereof used for commercial purposes, by a paraplegic, hemiplegic or other totally and permanently disabled person, as defined in Section 196.012(10), F.S., who must use a wheelchair for mobility or who is legally blind, shall be exempt from taxation.

Persons entitled to the exemption under number two (2) above, must be a permanent resident of the State of Florida as of January 1st of the year of assessment. Also, the prior year gross income of all persons residing in or upon the homestead shall not exceed the amount of income, set forth in section 196.101(4), F.S., adjusted annually by the percentage change of the average cost of living index issued by the United States Department of Labor. Gross income shall include United States Department of Veterans Affairs benefits and any social security benefits paid to the person. A statement of gross income must accompany the application.

If filing for the first time, please bring a certificate from two (2) licensed doctors of this state or a certificate (per s. 196.091, F.S.) from the United States Department of Veterans Affairs.

Filed under: Blog by Kim Bregman
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The price of Short Sales and Foreclosures can be perceived as an opportunity of a lifetime but they can be complicated and come with hidden costs. Real estate industry analysts say there are several factors to consider when making an informed buying decision on these two types of properties.

Buying a foreclosure or short sale is a complicated legal transaction involving contracts, warranties, titles, appraisals, assessments, inspections, a review of property taxes and clearance of liens. “As is” sales often requires help from a real estate attorney, whose fees can range from $750 on up depending on the complexity of the deal. Additionally, buyers of these distressed properties often need an advocate to assist in the closing of the deal, especially if the contract is drafted by a bank and isn’t the standard home sale contract recognized and used by the Florida Association of Realtors and The Florida Bar.

There’s also the risk of buying an “as is” foreclosure that has sat vacant for months without the utilities turned on or has been stripped of all its fixtures, appliances, wires, plumbing, cabinets, pipes and air conditioning units. Be prepared to invest additional monies in repairing a foreclosure property.

With short sales there is often a piggy back or second mortgage on the property. Piggy back mortgages were popular during the housing boom; the two payments stacks one small secondary loan on top of a primary one to make one mortgage payment for the new homeowner. Piggyback mortgages, sometimes from two different lenders, were a way someone could buy a home without the standard 20 percent down payment. Basically, the price set by a seller in a short sale relies on the approval of the home’s lenders. Sometimes the second mortgage holder decides they don’t want to settle for less than the face value of the loan and since both lenders need to agree the deal often ends up in foreclosure in the long run.

“SHORT SALE PRIMER”
A short sale exists when the proceeds from a sale will be insufficient to pay the mortgage(s) and other encumbrances on the property in order for the seller to transfer title free and clear. Basically the seller owes more than the property’s present market value. In order for the sale to take place the institution (usually “The Bank”) must approve all aspects of the sale.

This situation is often also referred to as preforeclosure. The reason is, The Bank will not even consider a short sale unless the mortgagee is 60 or 90 days behind in their payments. When this happens it triggers the process that ultimately will lead to foreclosure. A short sale is the only option prior to foreclosure that will help the Seller and The Bank while possibly being advantageous to the buyer.
In a short sale, the lender agrees to discount a loan balance because of an economic or financial hardship. Negotiation is done through the lender’s loss mitigation or workout department.

Pros:

• Possibly getting the property for less than the home’s fair market value.
• There is more time to get a comparable market analysis, research the title, and have the home inspected in a short sale than a foreclosure.
• The seller may be very accommodating in the sale.
• The home is owner-occupied and isn’t vacant or stripped like some foreclosed properties.
• Since the property was not sitting vacant, there is usually little cost to fix up the property.

Cons:

• Short sales can require more work on the part of the buyer.
• Often the buyer must be able to pay for the transactions entirely in cash.
• The lender (s) ultimately have the final say on whether the sale is approved.
• Weeks can go by without any response from the lender on whether a sale price was accepted.
• Because the seller has a financial hardship they may not have been maintaining the property properly.
• The lender can refuse the final sale price or ask the seller for a promissory note for money at the end of the negotiations, which could be a deal breaker. (A promissory note is a signed legal agreement that guarantees a debt)

“FORECLOSURE PRIMER”
A foreclosure is a legal proceeding in which a lender obtains a court-ordered termination of a mortgagor’s rights and ownership on the property after the borrower defaults on payments. The property is then repossessed and sold by the lender, often below what was owed on the previous mortgage.

Pros:

• Profitability is high because of the highly discounted price and the estimated value for which you can sell the property.
• The bank is not an emotional seller trying to make a profit, so the homes often are priced under market value.
• Banks want to move fast on a transaction, so you may be able to secure a home extremely fast.

Cons:

• The time frame to buy a vacant foreclosed property from the lender is short so appraisals and inspections can’t be scheduled before a closing.
• The home might have been stripped of appliances, wires, plumbing, cabinets, pipes and air conditioning units.
• The home might have costly pest control issues.
• Fixing up the home might be costly if it has sat vacant for a long period of time.
• If you are financing the purchase, the lender might require a working kitchen, no exposed wires and a working pool. If the property is trashed, your lender might back out of the deal.
• “As is” contracts with no warranties are risky and need to be reviewed by professionals in the industry at a cost.

Filed under: Blog by Kim Bregman
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While the tumultuous real estate market has many people hunkered down hoping it will all blow over, proactive homeowners are looking beyond the uncertainty.

They’re weighing a decision about whether to refinance their mortgage or trade up to a house they couldn’t afford three years ago.

Making a move more alluring, interest rates continue to hover at 4 percent to 5 percent and tax credits of up to $8,000 for first-time home buyers and up to $6,500 for buyers who have been in their homes for at least five of the last eight years consecutively are available.

But before you take the leap, here are some questions to ask yourself:

1. How long do I plan to stay in the new home? The rule of thumb is at least five years to make a new mortgage worthwhile.

2. Do I really need to move or just want to grab a deal?

3. Can I cover the costs to close and relocate? With every winner, there’s usually a loser, and you could be both if you find a great deal on a bigger house but can’t sell your current home.

4. If I stay in my current home, does it make sense to refinance and maybe add that extra bedroom or build a deck to improve the property?

Take a deep breath and analyze what you really need, not what the market seems to be telling you to do.

The decision depends on the individual. Are you looking to move because their family has grown or has your job changed locations, or do you want a shorter commute? But don’t move just for the sake of moving; now is a great time to buy, if it makes economic sense and improves your lifestyle.

There are several good reasons to buy a house now.

Rates are historically low; it’s essentially a buyer’s market. And for people moving up, obviously they won’t get as much for their own home as they would have a few years ago. But if they’re reasonable and set a good price and they find another house at a good price, the two together could be a real benefit especially if you are buying and getting a mortgage rate that is better than what you are paying now.

If you are considering buying a condominium in Florida you should be aware of some recent legislation that is designed to assist buyers in identifying potential problem properties. Florida Statute 720 now requires a State Mandated Reserves Study needs to be performed by the Condo Association and prospective condo buyers should receive full disclosure regarding the outcome of this study. You agent should secure the study for you and it will identify if any major repairs are expected, how much the repairs will cost, when the repairs are budgeted and the proposed completion date and if the condo association has enough money in reserves to cover the cost of the repairs of if the they will need to pass a special assessment onto the existing condo owners. I would recommend not considering any condominium property that has not completed the study.

Also be knowledgeable of the Chinese Drywall situation that may occur with any construction that has occurred since 2000. Any knowledge of Chinese drywall needs to be disclosed and you should hire a certified inspector the test for the presence of Chinese drywall if it was not been disclosed.

Filed under: Blog by Kim Bregman
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The U.S. Department of Housing and Urban Development (HUD) has updated and re-released Shopping for Your Home Loan: HUD’s Settlement Cost Booklet.

A large share of content in the 49-page publication, which helps consumers comparison-shop mortgages,
addresses the standardized Good Faith Estimate(GFE) and HUD-1 settlement statement forms that lenders must start using on Jan. 1, 2010.

HUD estimates that consumers could save almost $700 in costs and fees per loan on average as a result
of the new requirement, which is one of several changes to the Real Estate Settlement Procedures Act (RESPA).

In addition to the updated literature, the agency has set up a RESPA FAQ section and other information
on a dedicated RESPA page so that consumers, settlement service providers and lenders can gain a better
understanding of the new rules.

Here is the location of the .pdf of the booklet that you can save or print out for your reference.http://portal.hud.gov/portal/page/portal/HUD/documents/Settlement%20Booklet%20December%2015%20REVISED.pdf

Lenders are now required to provide loan applicants with the following:

• Good Faith Estimate—provided at the time of application to borrowers to outline the loan terms and total settlement costs.
• HUD-1/HUD-1A Settlement Statements—to inform borrowers of final costs at settlement.
• Servicing Disclosure Statement—to inform the borrower whether another financial institution may be servicing their loan.
• Settlement Cost Booklet—provided within three days of application to inform the borrower of fees involved in home purchase settlement.

There are three categories of charges that a consumer will pay at closing. Some of the charges can change
and the Good Faith Estimate is just that ….AN ESTIMATE! Page 17 of the booklet outlines those charges that
are fixed and will not change, those that they have established a limit whereby the charges can only increase
by 10%, and those charges that have no limits. The charges that are limitless are available on the open market
and the borrow can shop for competitive rates or negotiate these charges as a condition of the contract.

Before closing you will be provided with a HUD-1 Settlement Statement listing all charges and credits to the borrower and seller in a transaction. The HUD-1 will often differ from the GFE ( Good Faith Estimate). Question the lender about any changes in fees between you rGFE and the HUD-1. If the lender has exceeded the closing cost “tolerances” established by these new guidelines the must reimburse you.BE AWARE AND INFORMED of your rights.A good real estate agent will also review the HUD-1 and should be knowledgeable enough to discuss it with you
and point out any errors or discrepencies they may find.

Pay special attention to the last section of the HUD-1. This section details the terms of your loan,
including the loan amount, your interest rate, your loan balance or your monthly payments can increase and
whether your loan has a prepayment penalty or balloon payment. Look at this information carefully and
determine if these are the terms of the loan you agreed to and what was shown on your GFE.

Before you consider buying a home, page 36 of the booklet has a very simple worksheet that will assist you indetermining what you can afford before you start to look at homes on the market.

This is an excellent resource for real estate and loan professionals. I feel it may be complicated for the average consumer or first time home buyer who may not have a good understanding of terms people in the industry take for granted. Home buyers should use this resource along with the knowledge of their real estate professionals to navigate through the home loan process.

Exclusive Buyer Brokers provide these services to their clients. To learn more about Exclusive Buyer Brokers and the benefits to home buyers please visit www.OptimaProperties.com

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Today’s definitive online resource, Wikipedia, lists the definition of an Exclusive Buyer Agent (EBA) as one who works solely for the buyer, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transaction. Representing only buyers of real estate, EBA firms never take listings and, therefore, never represent the seller in a real estate transaction. The number of EBAs nationwide is less than ½ of 1 percent of all real estate firms, making their service even more rare at a time the real estate market really needs representatives to help buyers who are pressured to beat the clock, complete their purchase before the now-extended first-time buyer’s tax credit runs out.

Exclusive Buyer Agent (EBAs) work solely for buyers, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transactions. This unique relationship of committed trust and care assures buyers the best possible home buying experience.

The Oklahoma Supreme Court ruled in 1999 that “Sellers’ agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. Sellers’ agents owe their allegiance to the seller. Dual agency invites a conflict of interest. A buyer who relies on the seller’s agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer.”

Exclusive buyer agent firms chose this business model to eliminate the conflict of interest that exists when one firm attempts to represent both buyer and seller in the same transaction. It is the opinion of EBAs that it is not possible to faithfully represent clients with opposing interests simultaneously.
The EBA movement started in the late 1980s and by the early 1990s, as with the rise of buyer agency in general in U.S. states, firms came into being and a national trade association, the National Association of Exclusive Buyer Agents (NAEBA), was formed.

According to NAEBA, EBA firms offer service to buyers in all 50 states. Exclusive Buyer Agents are 100% loyal to Home Buyers 100% of the Time! Exclusive Buyers Agents are located in every state in the United States including: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

The service structure for EBA real estate practitioners is to show buyers all possible listings from other cooperating brokers as well as all other sources, such as for sale by owners. Then, they assist the buyer with evaluation and negotiation and advocate in the buyer’s best interests without restriction.
The National Association of Exclusive Buyer Agents (NAEBA) is pioneering a nationwide effort to give today’s home-buying consumers the level of service they deserve and are increasingly demanding. NAEBA professional members firmly believe that home buyers have the same full and equal representation rights as sellers in any real estate transaction.

Before buying a home or real estate, NAEBA recommends buyers interview several real estate agents, asking each of them the following questions. Exclusive Buyers Agent can answer yes to these questions while other Real Estate agents and Realtors often can’t.

· Do you spend 100% of your time representing Buyers?

· Will you guarantee that you will not represent any seller at any time while you are working for me?

· Do you, or the company you hang your license with, ever list properties for sale?

· Will you point out all negatives of each property you show me as well as the positive aspects, fully informing me so that I can make the best decision?

· Will you provide me data on comparable sales and help me formulate an offering price and negotiating strategy?

· Do you have a resources-lenders, home inspectors, insurance agents and other professionals that you can recommend to me?

· Will you tell me everything you can find out about the seller and their reasons for selling?

· Will you show me all the homes on the market that meet my expressed needs and desires including properties For Sale By Owner, foreclosures, etc?

· Will you guarantee that information I share with you will be kept confidential?

· Will you guarantee me your undivided loyalty?

· Will you guarantee me you will not try to change your relationship with me to “dual agency”, “designated agent”, transactional agent”, or any other form of agency other than Exclusive Buyer Agent?

· Can you guarantee me all of your loyalty, 100% of your loyalty, all of the time, 100% of the time?

Optima Properties has been conducting business as Exclusive Buyer’s Agents for over 20 years. We do not take listings! Please visit www.OptimaProperties.com for more information on how we serve buyers looking for property in South Florida and Western North Carolina.

Filed under: Blog, Uncategorized by Kim Bregman
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The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.

In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.

But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.

Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.

If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a strike interest rate at which to lock in the loan, a good move considering rate volatility.

Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.

Q: So is now the best time to buy a home?
A: It depends on personal situations. Home buyers certainly have a lot of factors working in their favor right now low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.

On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.

Mark Zandi, chief economist at Moody’s Economy.com, recently predicted that housing prices nationally will hit bottom in 2010’s third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.

Start looking now to position yourself to buy in mid-2010. To find out more information on the benefits of using an Exclusive Buyer Broker and how it can save you money please visit the About Buyer Agency section at www.OptimaProperties.com

Filed under: Blog, Uncategorized by Kim Bregman
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