Good news during Thanksgiving week for real estate agents…and us!

Standard

thanksgiving 2

Many real estate lawyers rely on their local real estate agent friends for the bulk of their residential closing business. When business is good for them, it’s good for us! Two recent stories in national publications are good signs for all of us.

First, an article from Housing Wire dated November 12, which you can read here, indicates more Americans are using real estate agents than ever before, including Millennials. The article cites a Harris Insights housing consumer study, which shows a full 90% of consumers use real estate agents to buy and sell their homes. These numbers are higher than those shown in previous similar studies, up 5 points from 2014 and 9 points from 2001.

We have all assumed that Millennials, ages 18 – 34, are replacing real estate agents with technology, but this study found the 91% of them use real estate agents in their transactions. According to this article, that number is higher among the Gen X group, ages 35 – 44, at 94%.

Surprising to me, this study indicates the older generations are more likely to cut real estate agents out of their transactions. Only 81% of consumers ages 55 and older indicate they use real estate agents in their transactions. And, apparently, more educated consumers enjoy the use of real estate agents in buying and selling their homes. High school graduates reported 83% use, while college educated consumers reported 94%. Higher income earners were also more likely to use real estate agents (98% of $75,000 – $100,000 earners vs. 79% of $50,000 or less earners.)

Read the article and the underlying study for more insight.

The second article that caught my attention is from Realtor Magazine on November 7. This article, entitled “Big Night of Midterm Wins for Realtors®”, reported that candidates across the country at federal, state and local levels won elections with the promise to benefit the real estate industry’s goals of strong communities and healthy residential and commercial property markets.

This article reports that the National Association of Realtors® supported hundreds of candidates they considered to be real estate champions, regardless of party affiliations.

It’s budget time for me, and our company is predicting a slight softening of residential and commercial markets in 2019. This positive news for our real estate agent partners makes me feel better about the year to come!

Here’s wishing everyone a very happy Thanksgiving with family and friends!

Advertisements

Real estate agent rental scam exposed

Standard

Two agents, one in Texas, and one in NY, allegedly involved

Most successful dirt lawyers have excellent working relationships with the real estate agents who assist their clients in buying, selling and leasing real estate. And most effective real estate agents prove themselves to be trustworthy in their business practices. Recently, two almost identical scams in remote states involved alleged real estate agents, according to a May 4 article in Housing Wire titled, “Two real estate agents caught behaving badly”, by Jacob Gaffney.

house sale fingers crossed

The first story is set in Missouri City, Texas, and was originally reported by the television station, KHOU 11 News. According to this story, police are investigating a woman purporting to be a real estate agent who approached John and Pamela Hall offering to sell their dream home located at the corner of Montego Bay and Palm Harbour. The Halls had already vacated the home, and the alleged real estate agent promised to sell the home quickly. Both homeowners signed the paperwork allowing the culprit to list their home.

Several days later, the Halls were called by someone interesting in renting their attractive waterfront home from a listing they saw on Craigslist. When the Halls investigated the Craigslist entry, they discovered that the alleged real estate agent had actually created fraudulent documents, including a power of attorney and a deed, to take title to their home in the name of an LLC. When the Halls drove by their property, they saw someone moving in! The new “tenant” reported that he had paid $5,000 up front to lease the home.

The television station attempted to find the real estate agent’s name in the records of The Texas Real Estate Commission, but no such agent was found. The culprit used different names in dealing with the Halls and the tenant, and, so far, has been successful in stealing $5,000. The scam has no doubt caused a great deal of inconvenience to the Halls, not to mention the potential expenditure of funds in the form of attorney’s fees necessary to straighten out the public records.

The second story took place in Hampton Bays, New York. Southhampton Town Police said they received two complaints in February involving an alleged real estate agent taking deposits for a rental home. The prospective tenants were told the home was not yet available when the respective move-in dates approached, and the home owners had no relationship with the real estate agent and never received rent. Additional victims came forward, and police arrested Melanie Williams, 54, in April, on three counts of fourth degree grand larceny and three counts of first degree scheme to defraud. Detectives say they believe there may be additional victims in this scheme.

The Russian proverb quoted by President Ronald Reagan seems to be good advice in any situation concerning a real estate agent, or any professional for that matter, who is not known personally. Tell your clients to trust but verify!