Buyers Agents Move Early To Stop Michigan's Designated Agency Bill

Buyer advocates in Michigan State are up in arms as they rally support from consumers and consumer advocate groups to stop their state from passing "voluntary designated agency" legislation. According to the article, the gist of this law is as follows:

The proposed law, according to the 26,000 + member Michigan Association of REALTORS® president Carol Frick, is designed to eliminate the inherent conflict of interest and confusion over who represents whom in the state's current dual agency statute, and would offer agents the ability to offer "exclusive" representation services under the supervision of their broker/managers.

There's the rub, say the dissenters. "There is nothing new for the consumer, there is no right to exclusive agency if the broker is assigning agents. Is the agent divorcing themselves from the company?" says Renee Knight, chairperson of Realdefenders. "That takes consumer rights away. They (consumers) think they are hiring the whole company when the other agents in the firm can be working against them."

Designated agency occurs when a home buyer is offered agency representation by the firm that is representing the seller of the same property. The firm designates one of its salespeople to act as the buyer's agent and another as the seller's agent, explains a NAEBA release.

Whether buying or selling real estate, consumers need to have options in the market to protect and maintain their interests--especially, since a real estate transaction is a significant life-event and financial investment. Consumers deserve to have the assurance that their agent works exclusively for them and that their agents' company stands behind their agents work 100% without the added conflict of competing interests that is unavoidable with dual or designated agency.

Dual and Designated Agency: A Picture is Worth a Thousand Words

A friend on MySpace found this awesome picture that does a great job illustrating what dual and designated agency is and why they are both a conflict of interest. This picture is definitely worth a thousand words.

Dual agency happens when one agent represents both buyer and seller in the same transaction or when one company assigns two different agents within their company to represent buyer and seller respectively in the same transaction. The effect of designated agency is the same as dual agency because the same broker (company) is "designating" two agents from his or her company to represent buyer and seller respectively in the same transaction. The effect is the all the same. It's dual agency no matter how you color it up. The cartoon above illustrates the effect of dual / designated agency loud and clear.

Merry Christmas to all!

SNOW: And We Thought We Had it Bad

This morning, I was working on my profile (MySpace) and I saw a bulletin posted by a friend that made me feel a little better about the heavy snow we've been having here lately. We thought we had it pretty bad these past few days, but when I saw this photo, it made me appreciate just how bad things could get. Thank goodness we didn't get it this bad. Thanks for the photo, Laurie! :)

New HUD Online Resource: My Money, My Home, My Future

I received news today about a new online resource presented by HUD called, "My Money, My Home, My Future." As I visited the site, I found the following brief description:

"The Department of Housing and Urban Development emphasizes that healthy homeownership depends on a strong foundation of financial knowledge and enables the long-term social, emotional and financial stability of families."

The website centers itself on educating the public about getting ones financial house in order starting with (1) Building a financial foundation (2) Sustaining healthy homeownership, and (3) Achieving financial security.

There seems to be many positive resources emerging in these volitile times. This is all very encouraging to me.

Fed Action Creates Best Interest Rates in 50 Years, Realtors(R) Report

Just received a news alert about a new Realtor Report regarding how action by the Fed is creating best interest rates in 50 years:

"WASHINGTON, Dec 17, 2008 /PRNewswire via COMTEX/ -- The National Association of Realtors(R) applauds the actions of the Federal Reserve Board in lowering interest rates for home buyers and homeowners who need to refinance. This will significantly impact housing sales, home valuations, and the nation's overall economy" (National Association of Realtors)

(photo: hullstudent.com)

Avoiding Foreclosure: New Online Resource by Freddie Mac

Today, I found out about a new online resource center dedicated to the prevention of foreclosures presented by Freddie Mac. As I visited the homepage of this new resource center, I read about Freddie Mac's commitment to helping borrowers to avoid foreclosure and to keep them in their homes whenever possible. According to the website, the resource center provides a one-stop shop for those who interface with consumers - especially the Sellers, Servicers, and community-based organizations working in neighborhoods every day that are helping homeowners avoid foreclosure. Despite the recent troubles Freddie Mac has been facing, it is good to know that they are doing what they can to help homeowners stay in their homes.

The most notable thing I read was their announcement made on November 20, 2008 of their 6-week suspension of all foreclosure sales and scheduled evictions on occupied single family 1-4 unit residences with Freddie Mac-owned mortgages beginning November 26, 2008 through January 9, 2009. Here is a link to the new resource center presented by Freddie Mac:

Avoiding Foreclosure Online Resource Center

(photo: banks.com)

New Low Mortgage Rates May be Out of Reach for Some Buyers!

New lower mortgage rates are out of reach for many buyers because of new stringent qualifying requirements. In a December 3rd article by David M. Dickson, a writer for the Washington Times discusses significantly tighter credit standards, new qualification criteria, and how mortgage rates dramatically dropped after the Fed announced its plan to "spend $600 billion dollars to purchase debt and mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae" (Dickson).

To read entire article, click here: Mortgage Rates May be Out of Reach for Some Buyers