REALTOR Code of Ethics - Article 1, Part 2

A Little while ago I began posting the Video series published by NAR on the REALTOR Code of Ethics.

One of the oldest Codes of Ethics in the United States, the Code is a living document which breakes the obligations of REALTORS into three categories, Duties to Clients, Duties to the Public, and Duties to Other REALTORS.

This Video continues the explanation of the First obligation of a REALTOR - the obligation of a professional to their Client. And talks about what happens after an agreement of sale is accepted. In Pennsylvania, the Agreement of Sale form adopted by the Pennsylvania Association of REALTORS addresses that responsibility.

The Video also talks about our obligation to avoid the unauthorized practice of Law.
Finally, the basic relationship of the REALTOR to the customer or Client is also addressed in this video - Enjoy!

More Philly Phyrsts!

Blogging is generally stressful as you try to think of new things to say and new ways to say them . But sometimes keeping up with your blogs can be quite a chore, and some of you may be aware that in addition to writing here, I write REreflections, and contribute to C21AgVoices, and AgentGenius, all different but interesting places to write and read.


That's where living in one of the oldest cities in the United States comes in real handy. If I've been busy in my real estate company all week, all I have to do is drop back and tell you more of the things that happened here first.

We already talked about some real estate firsts, so now let's talk about some historical firsts;

• 1766 - The first permanent theater in North America was started here


• 1769 The first life insurance society was started here


• 1773 - The American Medical Society was founded here


• 1776 -The Declaration of Independence was signed at Independence Hall


• 1777- The first flag for our new nation was sewn at Betsy Ross's House.


• 1784- The Pennsylvania Packet or General Advertiser, the first daily newspaper was published here


• 1792 The first Federal Mint was authorized here by Congress


• 1830 Saw TWO firsts -The first Penny Newspaper, named appropriately enough "The Cent" and the first successful Woman's Magazine, 'Godey's Ladys Book" published on Sixth Street above Chestnut

And with all of that happening, we hadn't even gotten to cheesesteaks, water ice, and soft pretzels.

If A Bank Reduces Your HELOC -Try This..

A Home Equity Line of Credit is bank product that grants homeowners access to the equity in their home at anytime, usually using checks.

Often called a HELOC, these equity-based credit lines function very much like credit cards:

• The rate is adjustable, tied to Prime Rate
  
  
  
• There is a minimum monthly payment
  
  
  
• There is a pre-set spending/credit limit

But different from credit cards is that a HELOC is "guaranteed" by real estate and with real estate values in question nationwide, many banks are exercising a little-known clause in the HELOC contract.

With alarming frequently, banks are reducing the pre-set spending limits on their active equity lines. Via USPS, lenders are notifying homeowner with $100,000 HELOCs that their new HELOC limit is $25,000, for example. This move is part of a trend towards conservative lending that is a response to the too liberal lending policies that have led to the current issues in the credit industry.

And the banks aren't being discriminate based on payment history or local real estate conditions, either -- it's happening everywhere with equal force.

The good news is that banks will accept appeals on HELOC reductions on a case-by-case basis.

One way to appeal a HELOC reduction is:

1. Call your lender's Customer Service line. Do not send an email.
   
   
   
2. Politely ask why the HELOC limit was reduced. Listen carefully to explanation.
   
   
   
3. Explain why you would like your HELOC reinstated. Acceptable reasons may include home improvement projects or improper home valuation by the lender.
   
   
   
4. Be prepared to write a formal letter, if asked. Address the issues explained in #2.

Banks will typically not reinstate a HELOC if a borrower has been delinquent on payments, or lives in a severely depressed neighborhood. However, because lenders rely on computer models to assess risk, it's always a good idea to ask.

The key to the success or failure of your request may lie completely in the manner in which you approach the problem. Remember that the person you're speaking to in the bank may be able to help you, but they are probably not the person who instituted the policy, and its not a good idea to be too aggressive with them if you want their help. After all, its only human to want to help people that are nice to you or be less inclined to help those who are not. And in this case, the Human Element of an appeal may work in your favor.

Why You Should Price Your Home Like Target

Each month, researchers at The University of Michigan survey a small sample of the U.S. population about their thoughts on the economy -- is it improving, it is worsening, is it staying the same.

May's consumer confidence survey registered it's lowest reading since 1980 -- and for good reason:

• Unemployment is spiking
• Gas prices are at an all-time high
• Housing markets keep getting bad press

But despite all of that, it appears that the American Consumer is taking the economy's hiccups in stride.

Last month, retailers around the country reported rising sales levels that doubled economists expectations. This isn't supposed to happen when consumer confidence is falling so fast.

But, a closer look shows that the retail sales data was led by discount retailers such as Target and Wal-Mart. In other words, consumers feel worse about the economy, so when they choose to spend money, they spend it on value items.

For home buyers, this should sound familiar because it's every real estate agent's mantra right now -- "there's a lot of good values to be had." It's why some homes are getting multiple offers within days while other languish on the market for months. And that's why I wrote a post a little while ago called "It's a Great Time to Buy Real Estate in Philadelphia". In our market in Pennsylvania and New Jersey, where prices are stable, and the amount of existing housing inventory is smaller then the national average, careful consideration of your pricing is crucial.

The housing market is showing signs of strength across the country, low consumer confidence notwithstanding. Every buyer is looking for a "good buy" and there's plenty of places to find them.

(Image Courtesy: Wall Street Journal Online)

Real Estate Definitions :PITI

Most homeowners make four housing-related payments each month:

1. Principal on a mortgage
2. Interest on a mortgage
3. Taxes on the real estate owned
4. Insurance for the real estate owned

Collectively, these payments are known by the acronym PITI but don't let it fool you -- a homeowner's monthly expenses are still called PITI even if one or more of the elements doesn't apply.

For example, a homeowner with an interest only mortgage does not pay principal each month. And some homeowner's are not required to pay Insurance or taxes into an escrow account if they are borrowing from a smaller lender or are making a larger down payment.

Additionally, condo owners typically don't pay homeowners insurance -- they pay a monthly assessment and/or maintenance fees to an association instead, and a smaller condominium specific policy insuring the interior elements of their condo and the contents.

In some instances the Insurance company ir taxing authority may send the annual bills directly to the homeowner instead of to the lender. If your lender is escrowing these items, the bills must be forwarded to them. Otherwise your escrow account will accumulate, and you will, in effect be doubling your cost. Eventually it will be reconciled, but typically your money will have been held without interest during that time.

But regardless for what it stands, determining a comfortable PITI should be every homeowner's starting point when looking for a new home. PITI is the monthly housing cost, after all, and by knowing what fits in your budget, it's a lot easier to compare homes and their related expenses.

It's certainly better than asking the bank "how much home can I afford" -- all that's going to tell you is the P and the I. As a homeowner, you need to know all four.

PITI is most commonly pronounced pee-eye-tee-eye.

(Image courtesy: Contractor-Books.com)