Working With a Dual Agency: What You Need to Know - Georgia is a dual Agency State

With a housing market favoring sellers, buyers are resorting to different tactics to get their offer accepted.

Home sales and prices have been on a steady increase over the last few months as the market remains on a stable path of recovery, but low inventory in some markets have created stiff competition—with some areas reporting bidding wars.

To help compete, some buyers are incentivizing agents by offering them the opportunity to represent them as well as the seller. Under these circumstances, dual agents get the full commission as both buyer and seller.

 “One of the best ways to convince the listing agent to take a somewhat- less qualified offer is to let them represent you and give them the commission as well,” says Eric Tan, a RedFin listing agent in Los Angeles. “A lot of buyers are catching on to this.”

In certain real estate markets around the country, inventory is tight and houses are selling above market price. On top of that, foreign investors are jumping into the market and making all-cash offers. If buyers can lure the real estate agent into their corner, experts say the commission potential could help them win a home—even if they don’t have the best offer.  

While it could work in winning a home, working with a dual agent or agency may not always be in the best interest of both the buyer and the seller. After all, if the real estate broker is representing both the buyer and the seller, each party will never fully know whose corner the agent is actually in. 

“In very rare circumstance the dual agency makes sense,” says Tan. “We’ve done a lot of market research and according to the data, on average you lose about $5,000 in the sale of a home when you use a dual agency.”  Even though buyers are losing money, RedFin’s survey, which was conducted last year, found that one in 10 homes in the U.S. are sold by a dual real estate agency.

Although real estate agents are required by law to disclose if they represent both the buyer and the seller, but often that disclosure isn’t so black and white. Every state has its own laws regarding dual agencies according to John Murphy, a realtor in Plymouth, Minn., and that buyers and sellers will often run into dual agencies when dealing with big brokerage firms.

“Real estate is a very entrepreneurial environment and is perfect for small brokers. There are many that are out there, but there also continues to be consolidation like we see in many other industries where the big brokers continue to get bigger and bigger,” says Murphy.  “It's in the big broker environment where you run in to dual agency situations.”

Even in situations where the dual agent is disclosed, home buyers aren’t necessarily informed on what this means. Murphy says he sees a lot of dual listings with new construction sales since most buyers are so focused on purchasing a home and will make sacrifices.

In Minnesota, Murphy says dual agents would go from fully representing one party to having limits placed on the representation of both. For example, agents aren’t allowed to argue to benefit one party over the other. “It is like a boxing match where we would move from being the coach in the corner giving explicit guidance, direction and coaching to our boxing client to becoming the referee where we have to remain impartial, says Murphy. “ I don't think real estate consumers fully understand this aspect of real estate.”

Going with a dual agent arrangement makes  a lot of  sense for buyers looking for an edge, but in a normal real estate market, critics advise homebuyers to avoid that situation if at all possible.

“In today’s market, where the dual agency method can get the property it’s tough to avoid the dual agency but it really does harm the system,” says Tan.  “You jeopardize the rights of the buyer and the seller. You’ll never know if you really got a good deal.”

http://www.foxbusiness.com/personal-finance/2013/06/12/working-with-dual-agency-what-need-to-know/

How to Identify a High Energy Performance Home

Capital Home Builders is the only and first custom and energy smart home builder in South Georgia. Our homes come with more features then any other home built in Georgia and South Georgia. We are also the only builder offering Home Energy Rating System (HERS) Rated homes. We are the only builder with Residential Energy Guarantee. We will guarantee your electrical bill for Two Years and if you go over we will pay you back the difference. NO other builder in South Georgia will stand behind their homes like we do. We do not believe in building to minimum code and our homes are proof of that. You may pay 5% to 10% more for a High-Performance home, but with all of the energy savings you will make it back the first 2 years. 

So you’re looking to buy a new home…but not just any home. You want one that’s easy on the environment and uses less energy. A comfortable home that saves you money while reducing your carbon footprint.

In other words, what you want is a high energy performance home.

But how do you know when you’ve found one? I mean, how can you tell if the house you’re viewing is actually a high energy performance home? Is there a way to differentiate between a home that’s energy efficient from one that’s not?

Luckily there is and increasing numbers of builders are using it to market energy efficient homes. It’s called a HERS Index score and hopefully one day soon every house will have one.

Energy Performance and the HERS Index Score

So what is a HERS Index score anyway? The home energy rating system (HERS) was developed by RESNET to help homebuyers compare homes based on their energy performance. For example, when a certified RESNET Home Energy Rater does a home energy rating, they’ll give the home a HERS Index score based on its energy performance.

A standard new American construction home that adheres to current energy guidelines is awarded a default HERS Index score of 100, which serves as a benchmark against which all other homes are measured. A higher HERS Index score translates into a less energy efficient home, and vice-versa. A typical American resale home scores 130 on the HERS Index, making it 30% less energy efficient than a new construction home. On the other hand, if a house gets a HERS Index score of 50, it means that it’s 50% more energy efficient than a standard new construction home. And in Thomasville, GA. a typical new home has a score of 130.

Why the HERS Index Score is Important to Builders

Thanks to the HERS Index and HERS Index scores, for the first time homebuyers can actually get an true understanding about how energy efficient a home really is. This naturally changes the way people are viewing homes they’re interested in and builders have been quick to understand that. Consequently, many are now actively marketing their homes using HERS Index scores to advertise potential savings that homebuyers could enjoy when purchasing a high energy performance home.

In addition to this, utility companies too are jumping on the bandwagon by offering builders rebates on energy costs based on their homes’ HERS Index scores. In fact, LG&E and KU Energy, a utility company based in Louisville, Kentucky, recently had their Energy-Saving New Homes Program recognized as a RESNET Energy Smart Program. The program rewards enrolled builders with rebates based on the HERS Index scores of their houses. For example, single family dwellings with HERS Index scores of 85 are eligible for a rebate of $440, and it increases up to $1,200 for homes that score 50 or lower. LG&E and KU Energy are the first utility in the U.S. to earn this designation from RESNET.

What Does All This Mean to Homebuyers?

Thanks to increased efforts and awareness, it’s now getting easier for homebuyers to identify and buy high energy performance homes. As the popularity of HERS Index scores continues to grow, and with builders actively promoting energy efficient homes via their scores, the future is starting to look a little…well…greener than it once did!

http://www.trulia.com/property/3136244802-202-Stallion-Cir-At-Summer-Gln-Thomasville-GA-31792

Home Builders Building Homes that Young Buyers Want, Says NAHB!

Capital Home Builders has been advocating green smart healthier low energy bill homes since 2005. We have known for years that green building was better and healthier way of building a home that would outlast typical old building practices.

June 3, 2013 - During National Homeownership Month in June, the National Association of Home Builders (NAHB) is telling young people that the time is right to buy a home, and the nation’s builders are building the homes they want.

“As the economy recovers and young people who had to live at home with their parents move forward with their lives and achieve their dreams of homeownership, home builders are delivering homes that cater to the floor plans, features and affordability that this generation desires,” said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C.

More than 80 percent of Generation Y home buyers—people born in 1977 or later—said inNAHB’s 2012 consumer preference survey they prefer a highly energy efficient home that results in lower utility bills during the home’s lifetime over a lower-priced home without energy efficient features. Today’s new homes feature ENERGY STAR-rated appliances; windows, doors and insulation that better control the home’s interior climate; and other modern components such as tankless water heaters and HVAC systems that save costs on utility bills.

And cost-conscious young buyers will be happy to hear that a new home actually costs less to maintain than an older home. An NAHB study found that homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 averages $241. Plus, mortgage rates are still very low, bolstering affordability for home buyers.

Generation Y buyers favor media and game rooms more than any other specialty rooms for their next home. New homes today not only contain these spaces, they are outfitted with the state-of-the-art electronic and wiring components that can accommodate high-definition televisions, full-house sound systems, hard-wired fire and security alarms and more.  

Young buyers can check out many of the outstanding designs and features being included in homes built by NAHB members at our social media communities facebook.com/homebuildrs, pinterest.com/nahbhome and google.com/+nahb. They can also access home buying and home building information and resources on NAHB’s website at nahb.org/forconsumers.

“The time has never been better for young people to become home owners, whether it be a new home or existing,” said Judson. “There are outstanding opportunities in the current market, with near record low interest rates, competitive prices and new homes being built that include open layouts, energy efficient components and other features that cater to young buyers.”

http://www.nahb.org/news_details.aspx?newsID=16329

Are green building attributes properly valued?

We've been building green custom smart homes since 2005,  Before buying a home in Thomasville, GA. educate yourself on the home you are looking to purchase and the quality construction of that home. The words “minimum code” is dedicate to homes that are not built to green or high performance. A “minimum code” will not have a HERS index of 50 or lower. A “minimum code” will have a HERS Index of 100 to 130 which means it is 80% more costly to operate then a High-performance home. Again, a true energy efficient home is tested by a third-party,

Now Realtors can blow smoke up your keister and tell you that the electrical bill of a minimum code home is $100.00/month when we know that a minimum code home is, again 80% more costly to operate than a true green high performance home.

Now we are sure there are many other creative ways an agent can show a low monthly bill by deciding to show the buyer an off month electrical bill, like from spring where the A/C unit is not used or a vacation month. But the only true way is by having it tested by a third-party Rater.

Do you have a “green” home? Or want to buy or build a green home? You’re not alone. According to the 2012 Yahoo Real Estate Home Horizons Study, Americans say a green or energy-efficient home would be a hallmark of their dream home, taking precedence — for the first time ever — over common favorites like water views or living in a gated community.

If you are looking to refinance, buy or build a home which outperforms typical code-built homes in energy efficiency, you probably have contemplated the question, what is the value of green?

A common belief is that lenders and appraisers cannot put a monetary value on green building features in the loan approval process. Not true. There is growing willingness, on the part of lenders, appraisers and Realtors to reflect the advantage of green in your home value, due in part to increased support from the federal government and the Appraisal Institute, and a willingness amongst homebuyers to pay more for high-performing third-party- certified green homes.

An extensive study conducted by the University of California analyzed 1.6 million single-family home sales from 2007 to 2012, and found that third-party green-certified homes sold for 9 percent more on average than comparable non-green-certified homes.

Residential appraisers often turn to the multiple-listing service (MLS ) for comparable sales data to assist in valuing properties. Santa Fe’s MLS is one of 185 MLS databases nationwide that have green data fields; there are approximately 665 others that do not. Increasing use of these fields by Realtors will assist appraisal values for green homes.

Appraisers can also use the Appraisal Institute’s Residential Green and Energy Efficient Addendum, a nationally recognized document that categorically highlights the energy, water, solar and other green features of a home so as to be monetized in the valuation of the appraisal. There are other valuation techniques available to appraisers; however, a green appraisal requires more training, skill and time than a standard appraisal.

Any owner requesting a green appraisal has the right to require that your lender use an appraiser experienced in green property valuation. Santa Fe has several appraisers with green valuation experience. If you hope to maximize the value of the green features in your appraisal, you should also present your qualified appraiser with easy-to-understand, itemized cost data for the energy, water, solar and other green improvements you made versus a code minimum home.

With the help of a HERS rater, you can also itemize the cost savings of your energy upgrades versus code-minimum construction. It is the responsibility of the builder or homeowner to inform the appraiser of these added value features.

As we emerge from the housing lull and move into a new era of slow but steady growth, we have a golden (and green) opportunity to increase the value of the green home projects we are conducting in the City Different.


http://www.santafenewmexican.com/life/home/article_b3e7dc17-a4c8-57bb-88df-a6625ab3d849.html

202 Stallion Cir. Another Top Quality Custom Built Home by CHB

No one builds custom homes like we do! Our homes appraise higher then any home in South Georgia

Custom High-End Features

Advanced Framing/Extra Insulation 2x6 Framing

High Efficiency Tankless Water Heater

Efficient Household Appliances / stainless steel “top of the line”

Bamboo floors throughout with high-end trim package

Granite throughout

Porcelain tile throughout “not builder’s standard ceramic”

16 SEER A/C

Water Sense Fixtures “Moen”

50 Year limited warranty siding & Soffit

30 Year architectural shingles

Smart Home Wiring

Home surveillance cameras

Pre-wired alarm system

Electronic 7” T.V. front door peephole

Electrical bill on our homes are 57% more energy efficient then any other new home built and 80% more energy efficient then any existing home.

Saving money on utility bills isn’t just smart. It’s guaranteed. CHB Custom Homes are HERS Rated were we guarantee electric utilities that exceed the guaranteed energy usage of our HERS*-rated new homes. We will pay you back the overage for two years. “Standing behind our products”.

http://www.trulia.com/property/3044016852-202-Stallion-Cir-Thomasville-GA-31792

Is Your Real Estate Agent a Double Agent?

Let’s say you walk into an open house and you’re approached by the friendly and knowledgeable real estate agent sitting at the dining room table.  You’re very interested in the house and she says that she can represent you in the transaction.

If you agree, you could be giving up your right to an advocate who solely represents your interests by signing up with a double agent — in real estate parlance, a dual agent.

This exact situation also occurs when you see a property on the internet and call the listing agent directly.  She then offers to represent you in the purchase or refers you to someone else in the office.  You may have given up your right to someone who only represents you.

Dual agency is when one agent represents both sides in a transaction, or when two agents working for the same broker each represent one side.  This type of relationship is very easily abused but is a major source of revenue for agents and their brokerages.

What Just Happened

When you go to an open house, the listing agent or one of her representatives is there to answer any questions about the property.  While the goal as understood by the seller to get exposure for the house, another goal for the agent at the property is to generate new leads for themselves.

Where this relationship becomes dicey is when you express interest in buying the house and the agent offers to represent you on the deal. When the listing (selling) agent offers to represent a buyer, you know to be alert.

But when the person who offers to represent you works at the same firm as the listing agent, the risks are much more subtle.  After all, they have the same boss, who is privy to both sides and your information.

Why Dual Agency Is Controversial

Without going into the legal specifics, dual agents are supposed to protect the interests of both parties.  Since the buyer and seller have diverging goals and are both represented by the same agent or brokerage firm (who has a great incentive to see the deal completed), conflicts of interest in this type of relationship are common.

Obviously, the buyer wants as low a price as possible and the seller wants the opposite.  Who does the agent choose?  The agent doesn’t have to, right?

Not exactly, because the agent knows both sides of the deal.  Let’s say the buyer casually mentions their recent stock options exercise or how much they’re willing to pay, what would a double agent’s move be then?  The best interest of the seller is to have this information; the best interest of the buyer is for it to be a secret.

The perils to consumers are well-documented:

• Debs vs. Coldwell Banker
• Anchorage Dual Agents May Face Avalanche of Lawsuits

Would You Go to Court Using Your Opponent’s Lawyer?

Real estate agency has its roots in the legal system.  There was a point in time, not one that you and I probably remember, when all real estate transactions had to be done by attorneys.  Contracts weren’t always standardized so every deal became a custom job that had to be drafted and vetted: this was expensive and time-consuming.

The success of a free market often depends on how efficiently goods and services are transferred.  Standardized legal forms and state-mandated programs were created so that real estate specialists could legally manage these real property transactions without having to pass the bar.

In general, buyers had one representative in the transaction and sellers had another.  The sides negotiate back-and-forth towards a deal that would be acceptable to both principals but whose outcome depended on the quality of their representation and negotiation.

So, would you go to court with your opponent’s lawyer representing you?  Of course not.  And in this case, buying real estate isn’t mediation or arbitration.  In those cases, the third party is neutral and gets paid no matter what the outcome is.  The double agent, on the other hand, only gets paid if the deal goes through.

Considering Dual Agency

I would not recommend dual agency to my clients.  If you are a buyer and decide to use a dual agent, it’s your responsibility to choose an agent who has earned your trust over time.

If you need to test the double agent, start to tell her a story about how much you’d be willing to pay for the house (but don’t give your real number).  See if she interrupts you or reacts as if you shouldn’t have mentioned that information.  Then ensure that you are adequately compensated for the rights you are giving up.

(c) Alex H. Wang

Recommended Reading:

• Why You Need Real Estate Agents and Why You Don’t Trust Them
• BloodhoundBlog and Dual Agency
• When Not to Buy a House
• Silicon Valley Real Estate Buyer’s Guide

http://www.1siliconvalley.com/is-your-real-estate-agent-a-double-agent/

We are focused on high quality built homes not square footage!

We are focused on high quality built homes not square footage!

Capital Home Builders Designated as a RESNET Energy Smart Homes Builder for Committing to Build Energy Efficient Homes and Marketing Their Homes HERS Index Score

Thomasville, Georgia based home builder Capital Home Builders has entered into an agreement with the Residential Energy Services Network (RESNET) to provide new home buyers an important measurement of long-term energy performance of each new home the company builds.  The intent of the agreement is to raise consumers’ knowledge of new home energy performance by using RESNET’s HERS Index.  Use of the HERS Index will differentiate homes built by Capital Home Builders from other homes for sale in the Thomas County housing.

Capital Home Builders is custom energy efficient home builder. The company was the first homebuilder to acquire the ENERGY STAR designation in South Georgia.  For more information on the company visit their web site at http://www.capitalhomebuilders.com/

The RESNET HERS Index is the industry standard by which a home’s energy efficiency is measured. The HERS or Home Energy Rating System was developed by RESNET and is the nationally recognized system for inspecting and calculating a home’s energy performance. Certified RESNET Home Energy Raters conduct inspections to verify a home’s energy performance and determine what improvements can be made to increase it. For more information go to http://www.resnet.us/home-energy-ratings

Izzy of Capital Home Builders, said RESNET’s HERS provides a quantitative measure of energy efficiency and permits comparisons between homes.   “It is expected that Capital Home Builders’ agreement with RESNET will serve as a model to other local and regional builders that would have positive outcomes for consumers and the new home industry,”

Steve Baden, executive director of RESNET lauded Capital Home Builders’ leadership for improving the energy performance of new homes.  “Today’s new homes are much more efficient in comparison to homes built just a decade ago.  These homes are more affordable to maintain, comfortable and have a higher value.  Thanks to leaders like Capital Home Builders, builders are increasing the energy performance of the homes they build.  This is good for consumers, the environment, the local economy and our national security.  It is great to have such a quality builder like Capital Home Builders educating homebuyers on the RESNET HERS Index.”

In making the commitment Capital Home Builders has been designated by RESNET as an RESNET Energy Smart Builder. RESNET Energy Smart Builders are leading the transformation of the housing towards high energy performance homes. These leading builders are committed to having all of their homes energy rated following RESNET’s stringent standards and marketing their homes HERS Index Score.