Under-Reported Concerns Of Buyers Exposed

by Broderick Perkins
© 2007 DeadlineNews.Com

Deadline Newsroom – A real estate industry trade group that serves only buyers says their constituency isn't getting the straight scoop about housing market conditions and they want to set the record straight.

From delayed agency disclosures and "fake" buyer agents to poor home inspections and shoddy new home construction -- with the media making matters worse -- the National Association of Exclusive Buyer Agents (NAEBA) says it has the full story.

Too often, says the group, media attention is focused on sellers when buyers are besieged by just as many new challenges in the boom-gone-bust housing market.

"When you’re shopping for a new home, you face many challenges. Picking a location, deciding how much you can afford, and securing the right financing are some of the most commonly discussed issues that you must solve," according to "Under-Reported Home Buying Issues" a survey of NAEBA members who were asked to identify the most under-reported issues facing home buyers.

The members also offered solutions for buyers facing those issues.

The report continues, "However, you should also be aware that there are many new and challenging issues which are not as often discussed, but which can be just as important."

While NAEBA claims obviously don't apply to every media outlet, especially those that cover real estate full time, here are some of the issues the group would like to see addressed more often.

• Fake buyer agents. Operating under a strict code of ethics and pledging undivided loyalty, NAEBA members represent buyers exclusively.

Without the dual role as a seller's agent, according to NAEBA, buyers agents are able to address only buyers' needs and concerns without being distracted by the business of managing sellers and their listings.

There's also the potential for a conflict of interest should a single brokerage represent both buyer and seller in the same transaction, something called "dual agency," a practice that's outlawed in some states.

However, according to the NAEBA report, some non-members feign NAEBA affiliation or misrepresent themselves as buyers agents.

Buyers who want exclusive representation should seek NAEBA certification, a written representation service contract and a track record of satisfied customers.

• One-stop shopping. One-stop shopping (a bundle of realty, finance and related services offered by a real estate brokerage) is marketed as a convenience to housing consumers. The bundle may offer the best deal, but consumers won't know that if they don't first shop around individually for all the services they need. Shopping around and comparison shopping is the hallmark of savvy consumerism.

• Poor local news coverage. NAEBA says local news outlets too often don't abide by journalism's code of ethics if much of their ad revenues stem from the real estate community. Unbiased or broad based news coverage can difficult for media outlets that don't want to alienate advertisers, says NAEBA.

Consumers are advised to look for advertisements disguised as news stories and see them for what they are, be aware of the limitations of smaller, local media outlets supported by real estate ad revenues and take time, over time to examine a media outlet's editorial content.

DeadlineNews.Com recently raised related issues in "Finding News That Really Hits Home".

• Buying foreclosed properties. Foreclosures sound like a good deal. Below market prices can be alluring, a cottage industry of infomercials say they are a steal and they are flooding the market right now. However, a foreclosure acquisition doesn't follow the more structured path of a conventional listing purchase. Without a real estate agent or other expert to provide some specialized hand-holding, a novice could lose his or her shirt -- and the 'deal.'

• Websites not providing the full inventory of available property. Not all realty Web sites provide all available listings in a given area, but opt to provide only their agents' listings. Other companies don't manage their Web sites well, causing listings to fall out of date.

Larger Web sites, dedicated to listings and smaller ones that link to the larger pools of listings do a better job at scouring the market. A savvy real estate agent can also root out all listings available in a given area and, in some cases, even find properties that are for sale, but not listed.

• Inadequate home inspections. Pre-inspections offered buyers as a convenience from sellers, says NAEBA, can be quickie inspections rather than a thorough once over.

Even if a seller provides what appears to be an expert inspection that comes with a guarantee, buyers making what's likely to be the largest purchase ever, should always hire their own inspector.

The inspector should be licensed locally or certified by a national trade group like the American Society of Home Inspectors. Local certification offers another layer of protection.

Like choosing any professional, get referrals from family, friends, co-workers, professional associates or others you trust.

• Poor quality in new construction. Professional studies and grassroots action groups repeatedly reveal new homes are always defect-free for a variety of reasons, including the fact they are built by imperfect humans.

Consumers should make every effort to have a new home inspected while it is under construction during several phases, foundation, framing, wiring and plumbing and upon completion. Builders may not make this an easy task, but consumers can have new homes inspected by a professional during or before your final walk through.

Editor's Note: DeadlineNews.Com frequently covers all the issues mentioned in this report. A few recent and timely examples are below. Check out the DeadlineNews.Com Index Page for our complete archives of full coverage of the residential real estate market.

DeadlineNews.Com's founder, publisher and editor, Broderick Perkins has been covering the real estate market for nearly a quarter century.

Check us out for news that really hits home.

• Finding News That Really Hits Home
• It's a Good Time For A Home Inspection
• Many Left Behind In Real Estate School
• Buying Foreclosures Not For The Novice
• Timely Defect Litigation Guide Book Published

© 2007 DeadlineNews.Com

Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

---

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Hagglers Rarely Lose

by Broderick Perkins
© 2007 DeadlineNews.Com

Deadline Newsroom – Go ahead, haggle.

If you do, chances are, you'll get a better deal.

Keep that in mind when you shop for a home, where virtually all costs are negotiable.

A Consumer Reports National Research Center survey of 2,167 households this past summer found that more than 90 percent of those who tried to talk down the price succeeded on furniture, electronics, appliances, even medical bills.

The most successful hagglers shaved an average $50 off the asking price of an individual item or service.

Of those who yakked their way to a better deal, 94 percent scored a lower price at least once during the past three years. Overall, 61 percent of respondents bargained at least once during that time.

Ninety-three percent managed to dicker reductions on medical bills and 92 percent worked out a lower price for home electronics, the report says.

But when they did, the success rate was always high in every category.

Among those who bargained for furniture, 94 percent saved money; for large and small appliances, 92 percent; floor and demo models, 91 percent; bank and credit card fees, 87 percent; jewelry 86 percent; cell-phone plans, 80 percent; collectibles and antiques, 78 percent.

The greatest number of winners were found in furniture where 61 percent of hagglers saved $50 to $100; 58 percent of those haggling over large and small appliance prices also saved $50 to $100; 54 percent of those vying for less on home electronics and jewelry, both saved from $50 to $100; 53 percent of those shopping for floor and demo models saved $50 to $100 when they dickered and 50 percent of those saved from $1 to $49 when they tried to get the price down on cell-phone plans.

Among the dickering group, the biggest winners by dollar amount were the 35 percent of consumers who slashed $100 or more off medical bills; 26 percent who reduced cell-phone plans by $100; 22 percent who knocked $100 off floor or demo model prices and 21 percent who did the same for bank and credit card fees.

On average, 61 percent of shoppers surveyed actually bargained for cheaper prices at least once over a three year period, one in three consumers aren't exercising their negotiating muscle.

Haggling experts reminds consumers, there's nothing wrong with asking for a cheaper price. The worst that will happen is the merchant will say "no" and you won't be any worse off.

On the other hand, make price dickering a regular shopping technique and you are likely to save hundreds of dollars a year, especially if you haggle around just like you should shop around for the best price.

Not for the introverted, shy or withdrawn, negotiating does require a level of assertiveness and the willingness to risk rejection, the report says.

And be aware, that merchants often price items with wiggle room. You aren't forcing them to negotiate, but if you don't, they just rake in more profit.

To improve your negotiating success rate, Consumer Reports' experts also advise:

• Gauge the seller's need. Merchants selling items with a limited shelf life may have extra incentive. Likewise, a home seller with a new job elsewhere or who already has purchased another home is motivated to move.

• Go to the top. Seek out a manager or supervisor if the person on the floor says "I don't have the authority." If your medical plan doesn't cover the entire cost of a procedure, talk to the doctor, not the office manager.

• Negotiate from a position of power. Bargains are most likely when you have the upper hand. It costs cell phone carriers and satellite radio companies large sums of money to lure new customers. When it's time to re-up your service contract, load on requests for more minutes, lower prices and other deals.

• Time is money. Hit the sales. Cars are often on sale in November and December. Consumer Reports indicates when other items hit the sales bins. Get an early-bird discount from your tax preparer by filing before the rush. On floor models and demos use flaws and blemishes, that don't affect the items operation, to put downward pressure on the price.

• Bring cash. Remind the merchant of the transaction fees it won't have to pay to a credit-card company if he or she accepts your wad of dough.

© 2007 DeadlineNews.Com

Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

---

DeadlineNews.Com's Editorial Content Is Intellectual Property - Unauthorized Use Is A Federal Crime

Read more!