American Attitudes About Home Ownership

According to a NATIONAL ASSOCIATION OF REALTORS® survey of 3,793 adults conducted by Harris Interactive and released in January 2011, home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.

Among the findings of NAR’s “American Attitudes About Homeownership” survey:

••  The vast majority of both home owners and renters say that owning a home is a smart decision over the long term. Even in today’s challenging economy, 95% of owners and 72% of renters believe that over a period of several years, it makes more sense to own a home.
••  Home owners are much more likely to be satisfied with the quality of their family and community life than renters. While more than half of owners (56%) are “very” or “extremely” satisfied with the overall quality of their family life, only about one-third (36%) of renters report the same levels of satisfaction. Also, 43% of home owners are “very” or “extremely” satisfied with their community life, compared with 30% of renters.
••  An overwhelming majority of home owners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.
••  Most renters aspire to home ownership. The majority of renters (63%) say they are at least somewhat likely to purchase a home at some point in the future. Among them, young adults (18- to 24-years-old) have the strongest aspirations for home ownership.
The survey also confirmed that home owners and renters continue to have concerns about the economy:

••  In today’s market, many aspiring home owners face worries about job security and credit worthiness. Among renters who are “very” or “extremely” likely to buy a home in the future, three out of five consider confidence in job security or creditworthiness to be an obstacle.
••  Home owners and renters both believe that the mortgage interest deduction should not be targeted for change. 74% of owners and 62% of renters say it’s “extremely” or “very” important that the MID remain in place.

Here you’ll find the research results– Enjoy

**Survey Says**

My preferred agency when buying a home:

Thanks to all that voted in the “My preferred agency when buying a home is:” poll.
Buyer’s Agent received the most votes.
When you are a property seller and/or buyer it is important to understand what agency options are available to you. Here is a list as well as an explanation of the agency relationships. Agency is definitely not a one size fits all item. We hope you find this informative.

Understand Agency Relationships

It’s important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask what type of agency relationship your agent has with you:

Seller’s representative (also known as a listing agent or seller’s agent)

A seller’s agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

Buyer’s representative (also known as a buyer’s agent)

A buyer’s agent is hired by prospective buyers to represent them in a real estate transaction. The buyer’s rep works in the buyer’s best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer’s rep may be paid by the seller or through a commission split with the seller’s agent.

Subagent

A subagent owes the same fiduciary duties to the agent’s customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

Disclosed dual agent

Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it’s vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.

Designated agent (also called appointed agent)

This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

Nonagency relationship (called, among other things, a transaction broker or facilitator)

Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

Reprinted from REALTOR® magazine with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 2008. All rights reserved.

Poll results-Is this a good time to buy.

Yes-prices are low.

It is no surprise that this question received the most votes. Any one watching prices have seen the down slide. Being in the trenches everyday I see this first hand. So, yes prices are low and it is a good time to buy.  

Yes-interest rates are low.

This question received the second most votes. I asked Shane LaMacchia with PyraMax Bank his take on this. “Another great reason to buy is because of the historically low interest rates.  Many borrowers are saving 25% on their monthly principal and interest payment from where rates were a few years ago”.

Yes-real estate is still a good investment.

A house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Admittedly, in the early years of the mortgage, this is not much. Over time, however, it accelerates.
Second, your home appreciates. Over time, history has shown that owning a home is one of the very best financial investments.
Owning property can also have tax advantages
 
No-lending rules to strict.
No-can not qualify for a loan.

The fewest votes were for these two questions. Again I asked Shane to chime in.

It is true that guidelines are much tighter than 4 years ago, but I wouldn’t anticipate going back to that lending environment anytime soon.  There are plenty of great loan programs out there for first time homebuyers.  WHEDA has an excellent program that allows for 100% financing.  We also have some great community lending programs that can be used in conjunction with grants to buy foreclosed homes.  Another great reason to buy is because of the historically low interest rates.  Many borrowers are saving 25% on their monthly principal and interest payment from where rates were a few years ago.

All things being considered this is a good time to buy.
Give me a call, email or….
Let’s talk, let’s go shopping.

Special thanks to Shane.
Shane LaMacchia
PyraMax Bank
SLamacchia@pyramaxbank.com
414.238.2952