“December’s sales increase reflects buyers taking advantage of rock bottom interest rates and improved affordability since the first half of the year, when prices were higher,” said C.A.R. President Beth L. Peerce. “Most of December’s sales opened escrow in October and November. Rates hit their absolute lowest in October but began edging higher in November, prompting buyers to get off the fence,” she said.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,680 in December. December’s sales were up 5.9 percent from November’s revised pace of 491,590 but were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009.

Following three consecutive monthly declines, the median price of an existing, single-family detached home sold in California increased 1.7 percent from a revised $296,690 in November but was down 1.6 percent from the revised $306,860 median price recorded for the same period a year ago.

Cities overwhelmed by foreclosure filings and unemployment, including many cities in Florida, Arizona, Nevada and central California, typically correspond to more affordable markets for prospective buyers; however, there are exceptions. Oakland and Los Angeles, which are experiencing similar rates of unemployment or foreclosure filings as Phoenix, Miami, and Sacramento, still are more affordable to renters. Moreover, close proximity to economic centers with promising job growth projections has propped up both the demand for homes and costs of homeownership in Oakland and Los Angeles.

http://realtytimes.com/rtpages/20080919_hotmarket.htm

A: Here are several questions you and your spouse can use when hiring a Real Estate Agent or Broker to represent you. Keep in mind these questions are answered more honestly by the agent’s actions than by his or her words:

(1) Does the agent/broker’s motivation reflect a sincere desire to serve?
Does he have a frame of mind and heart to put your best interests at the top of the priority list, even above his need to earn a living?

(2) What business is the agent or broker in? Is he in the real estate business? The money-making business? Or is he firmly grounded in the trust business, making earning and keeping your trust and confidence his highest goal?

(3) How well does your agent/broker communicate? Is he articulate in explaining how the home-buying or selling process works? Is he prompt about returning your phone calls? Is he approachable? Do you feel you can call him nearly any time you have a question or a concern that needs addressing? Is he sensitive to your frame of mind and possible apprehension? Does he encourage you to ask lots of questions or do you feel like an idiot after asking him?

Is frequent communication with you a top priority or relegated to a lower position?

(4) Is he customer-service driven? Does he ensure your appointments are structured around your schedule or do you feel you’re primarily accommodating him? Does he meet with you face-to-face often or are your interactions primarily via telephone, e-mail, or fax? Does he hand-deliver documents so he can explain them in person or do you receive paperwork in the mail that leaves you scratching your head in bewilderment?

(5) Does your agent-to-be have integrity? Is he up front with you? Does he look you straight in the eye when answering your questions? Does he remember your name? Does he have a firm and hearty handshake or is it wimpy and non-committal? Is he candid and forthcoming in answering your questions or do you feel you can’t get him to give you a straight answer about important issues? Does he ever say “I’m not sure” or “I don’t know”? Being honest is risky sometimes as people don’t always want to hear the truth. But above all else, that’s your agent’s job — to tell you the truth.

(6) Does your agent/broker have a positive, “Let’s make it happen” attitude? Is he best described as a problem-solver or a problem-maker? Is he creative in finding ways to make things work instead of looking for reasons why they can’t?

(7) Ask your prospective agent/broker for references from previous clients, both buyers and sellers. Get several names and telephone numbers. Then follow up with those people. Ask, “Would you work with this agent again? If so, why? If not, why not?” How someone conducts himself with others in the past is a good indicator of how he’ll probably treat you in the future. Don’t be afraid to probe a little. Ask, “Do you feel your Agent had your best interests in mind at all times?” “Do you trust your agent?” “Why or why not?”

This set of questions and action items should help you find a true professional by ruling out those who simply don’t measure up. Remember that this is probably the single largest investment you’ll make in your lifetime. Be selective, be careful, and listen to your intuition. Bestow the honor of your trust to one who earns it, not to just anyone who managed to pass the state licensing exam.

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http://www.businessweek.com/lifestyle/content/jul2008/bw2008078_555230.htm

Dual agency is when the broker/agent represents both the buyer and the seller in the same transaction. In California, it is permissible only if both principals are notified of the dual agency and both consent to it. The best way to prove consent is to have them sign the Agency Disclosure. However, many pitfalls are involved in acting as a dual agent. More often than not, in trying to represent the interests of both clients, one ends up representing neither very well. It’s a quick way to lose the trust of both clients. Then one has no hope for referral business from either. An agent must think long and hard about whether the benefit (usually a higher commission) outweighs the risks: a lawsuit or license discipline.

Let’s suppose a few scenarios to illustrate our point:

1) Seller A has disclosed to the agent that the property has a problem that would be a material fact bearing upon the property’s value. However, Seller A confided this information to the agent and has asked for his confidentiality. Yet, under the laws of agency, the agent is obliged to disclose to his client, Buyer B, the existence of said problem. The agent may be violating his duty of disclosure to B if he remains silent and he may be violating his duty of confidentiality to A if he discloses to B. What should the agent do? Unless the agent can obtain express written consent from A to disclose to B the information, and he subsequently discloses it, the law provides no clear solution to this problem.

2) Buyer B has been trying hard to get his loan but he just learned that his loan has been denied. He asks his Agent not to disclose to Seller A the status of his loan. Again, the agent is in a precarious position. He owes the duty of confidentiality to B but the duty of disclosure to A. Once more, the best approach would be to obtain express written consent from B to disclose his loan status to A.

3) Another case comes straight from the California courts. Agent Z wrote a contract involving dual agency between Seller A and Buyer B for B’s purchase of A’s property. A told Agent Z that there were IRS liens and judgments in excess of the sales price but that they were working on an offer in compromise (where the IRS agrees to reduce its judgments and liens). However, they wouldn’t be able to consummate the sale if the offer in compromise wasn’t accepted by the IRS. Agent Z didn’t disclose any of this information to Buyer B. Buyer B learned independently about A’s predicament and they approached Agent Z. He explained that A was working on an offer in compromise and that it wouldn’t be a problem. A was unable to compromise the liens and thus couldn’t transfer title to B. Z didn’t perform his fiduciary duty to B. There was a real risk that A wouldn’t be able to perform and Z failed to inform B. B may have decided against moving forward with the transaction had Z kept B’s interest first and foremost. The court found that Z and his employing brokerage had civil liability in this case.