Back at it

It has been so long since I posted, I actually forgot how. The site used to be called Blogspot. Now it is Blogger. The only think constant is change. Right now our real estate industry is undergoing change. There are some who are concerned. I am getting weary of the Gloom and Doom meadia posters who are hollaring that the sky is falling. OK, let's talk about the elephant in the room. Burnett v NAR. Yes, it is not yet done. The following quote is from the National Association of REALTORS: Correcting the Record: NAR Does Not Set Commissions Young couple signing real estate contract in broker's office with a pair of agents Following recent inaccuracies in media coverage, including the false representation or suggestion that NAR requires a standard 6% commission, NAR has issued a statement of facts regarding real estate commissions. The rule that has been the subject of litigation requires only that listing brokers communicate an offer of compensation. Other rules throughout the MLS Handbook and NAR policy expressly prohibit setting or suggesting any such amount. Following recent inaccuracies in media coverage, including the false representation or suggestion that the National Association of REALTORS® (NAR) requires a standard 6% commission, NAR has issued the following statement: CHICAGO (March 19, 2024) – The National Association of REALTORS® (NAR) does not set commissions – they are negotiable. The rule that has been the subject of litigation requires only that listing brokers communicate an offer of compensation. That offer can be any amount, including zero. And other rules throughout the MLS Handbook and NAR policy expressly prohibit MLSs, associations, and brokers from setting or suggesting any such amount that should be included in that field. The text of the current rule is linked here and excerpted below, the text of our MLS Antitrust Compliance Policy is linked here and excerpted below, and a notice included in NAR’s MLS Handbook is below. Again, the current rule that has been the subject of litigation does not set commissions. As reflected in our release about the proposed settlement agreement, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. Commissions remain negotiable, as they have been. Excerpt from Handbook on Multiple Listing Policy – Commission/Cooperative Compensation Offers, Section 1: Information Specifying the Compensation on Each Listing Filed with a Multiple Listing Service of an Association of REALTORS® In filing property with the multiple listing service, participants make blanket unilateral offers of compensation to the other MLS participants and shall therefore specify on each listing filed with the service the compensation being offered by the listing broker to the other MLS participants. This is necessary because cooperating participants have the right to know what their compensation will be prior to commencing their efforts to sell. The listing broker retains the right to determine the amount of compensation offered to subagents, buyer agents, or to brokers acting in other agency or nonagency capacities, which may be the same or different. Excerpt from Handbook on Multiple Listing Policy – MLS Antitrust Compliance Policy The purpose of multiple listing is the orderly correlation and dissemination of listing information to participants so they may better serve the buying and selling public. Boards and associations of REALTORS® and their multiple listing services shall not enact or enforce any rule which restricts, limits, or interferes with participants in their relations with each other, in their broker/client relationships, or in the conduct of their business in the following areas. Boards and associations of REALTORS® and their MLSs shall not: Fix, control, recommend, or suggest the commissions or fees charged for real estate brokerage services (Interpretation 14). Fix, control, recommend, or suggest the cooperative compensation offered by listing brokers to potential cooperating brokers. Excerpt from Handbook on Multiple Listing Policy – Notice to Association Members Under the long-established policy of this association, the (state) association of REALTORS®, and the National Association of REALTORS®: The broker’s compensation for services rendered in respect to any listing is solely a matter of negotiation between the broker and his or her client, and is not fixed, controlled, recommended, or maintained by any persons not a party to the listing agreement. The compensation paid by a listing broker to a cooperating broker in respect to any listing is established by the listing broker and is not fixed, controlled, recommended, or maintained by any persons other than the lister broker. (Amended 4/92) About the National Association of REALTORS® The National Association of REALTORS® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.

ACME Instatue Start Your Career Today

Gwyn's Classes, Thoughts & News

Gwyn's Classes, Thoughts & News

Hard to believe it has been four years since I have been active in blogging.  I must do something about that.

If I can do it, so can you.  Once I get this up, I link it to Facebook.  Both the Blog and Facebook are linked to my web.

HUD's RECENTLY PUBLISHED TIMELINE

You can help. People in the foreclosure process are confused and stressed. They are counting on their real estate agent to know what is happening. Put this in your briefcase until you have it memorized. You also need to go to http://www.mshda.info/counseling_search/ and enter your county to learn of the MSHDA-approved counselors that may be able to help your client. Just because someone calls and tells you they need to sell their home, does not mean it is true. There may be a bail out for them, depending upon where they are in the foreclosure process.

Here is the timeline. For a PDF version to print out, go to http://www.theacmeinstitute.com/foreclosure_timeline11.pdf

$8,000 First Time Home Buyer Credit

First-Time Homebuyer Tax Credit

I am getting lots of emails concerning the $8,000 tax credit for first time homebuyers that is part of the The American Recovery and Reinvestment Act of 2009 ...

* Tax credit equals lessor of 10% of the property's value or $8,000

* Effective for properties bought between January 1, 2009 and December 1, 2009

* The property purchased must be single-family (condos & townhouses included) and used as a principal residence for three years.

* There is an income limit of $75,000 per individual (adjusted gross income) or $150,000 if filing a joint reurn. Individuals above these salaries may still receive a portion of the tax credit. IRS Form 5405 will help to determine this.

* Only first-time homebuyers are eligible or the purchaser (and purchaser's spouse) must not have owned a principal residence in the last three years

* This tax credit does not have to be repaid if the property is purchased between 1/1/09-12/1/09 This tax credit can be used on all FSBO.com properties, as long as indviduals meet the federal criteria. This is just a basic summary, AcmeInstitute.com recommends you consult a tax professional for more specific information that may pertain to you, as several states also have local policies.

FAQ

If the seller pays part of the closing cost, does that reduce the basis for the credit?

The credit is based on the purchase price. No where on Form 5405 does the IRS require one reduce the purchase price to calculate the credit.

If the buyer had previously lived in a manufactured home in a park, would they qualify as a first time home buyer.

No, the credit is allowed on a manufactured home, therefore the IRS it a home for the purpose of this act.

If the house has to be sold before three years are the exceptions to paying back the grant?

1. The following are exceptions to the repayment rule. If you sell the home to someone who is not related to you, the repayment in the year of sale is limited to the amount of gain on the sale. When figuring the gain, reduce the adjusted basis of the home by the amount of the credit.

2. If the home is destroyed, condemned, or disposed of under threat of condemnation, and you acquire a new main home within 2 years of the event, you do not have to repay the credit. If, as part of a divorce settlement, the home is transferred to a spouse or former spouse, the spouse who receives the home is responsible for repaying the credit.

3. If you die, repayment of the credit is not required. If you filed a joint return and then you die, your surviving spouse would be required to repay his or her half of the credit.

The 2008, $7500 credit still exists. I will be posting more concerning this as time goes on.

Is your glass half full? Mine is.

Recently, Warren Buffett (yes, I know I usually talk about the other Buffett) was interviewed By CNBC. “We’ve been getting thousands and thousands of emails from our viewers. Warren, we’d like to start with one that echoes a theme we heard again and again. This one comes from Terry in San Antonio, Texas, who asks, ‘Will everything be all right?’”


BUFFETT: “Everything will be all right. We do have the greatest economic machine that man has ever created. We started with 4 million people back in 1790 and look where we’ve come. And it wasn’t because we were smarter than other people. It wasn’t because our land was more fertile or we had more minerals or our climate was more favorable. We had a system that worked. It unleashed the human potential. It didn’t work every year. We had 6 ‘panics’ in the 19th century. In the 20th century we had the Great Depression, World Wars, all kinds of things. But we have a system – largely free market, rule of law, equality of opportunity – all of those things that cause the potential of humans to get unleashed. And we’re far from done. Your kids will live better than mine. Your grandchildren will live better than your kids. There’s no question about that. But the machine gets gummed up from time to time. If you take the bulk of those centuries, probably 15 years were bad years. But we go forward.”

After Buffett’s very upbeat, 3-hour interview? Various meda filtered out all kinds of affirming, positive statements (such as the one above) to create the headline, “Warren Buffett Says ‘The Economy Fell Off a Cliff.”

I cannot look at the world through those gloom and doom lenses. This time shall pass. True, for some it is a sudden shock. Things have changed. In Michigan, perhaps more radically than some of the rest of the country. Our real estate market is different form any we have ever seen. I have friends that have lost their homes. I have friends that have filed for bankruptcy. Even those friends have not lost hope. I prefer to surround myself with positive thinking people.