Connections Worcester Regional Association of REALTORS
May 2013 Inside this Issue: President’s Message
1
May Calendar of Events
2
Membership News
3-5
CREST
6-7
Professional Development
8-9
Community Action
10-12
Government Affairs
9
Local Market Update
13
Legal Corner
14
“It is the responsibility of leadership to provide opportunity, and the responsibility of individuals to contribute. – William Pollard
®
President’s Message
Welcome Spring--and not a moment too soon. We especially need a lift and the feeling of renewal after this April’s events. I hope that you and everyone you know were safe on Marathon Monday. As the Commonwealth begins its healing, so too do we begin our own. It feels good to see the flowers blooming, temperatures rising and everyone getting back outside and on with our lives. The Spring Market has arrived, and the buyers are out there looking and ready to buy. We’re seeing the return of Multiple Offers for houses that are priced right. So what’s fueling the ongoing recovery? First, tightened inventory levels combined with strong demand are nudging prices up. Second, consumer demand is shifting from distressed properties to conventional homes. Third, record-low mortgage rates and rising rents are supporting the housing recovery. In the WRAR area, inventory is down over 29% since this time last year. More specifically, Single Family inventory is down -28.5% and Condos are down -31.7%. There is only a 5.6 and 6.0 month’s supply of Inventory for Single Family homes and Condos respectively, down from between 9-10 month supply this time last year. It appears the Market is shifting towards a Sellers Market. The Median sale price for Single Family home rose +6.6% and Condo prices rose a whopping +27.5%, year over year, in March. The Single Family Closed sales dropped slightly from 345 units in 2012 to 332 this year, but Condos went up from 69 units in 2012 to 86 units in 2013. All are indications that April is going to be another strong month. In closing, extend this positive energy to those who need it most; please keep all of the victims of the Marathon bombings in your thoughts and, if you pray, in your prayers. The daughter of one of the agents in my office was severely injured, so please keep Brittany Loring in your thoughts. She’s getting better but still has a way to go. Be Strong.
Rochelle Rochelle Jonswold 2013 President WRAR Worcester Regional Association of REALTORS® 1 www.wrar.org
WRAR MONTH-AT-A-GLANCE May 2013 Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
1
2 2:00-4:00 Thirsty Thursday: Financing Faceoff
3 8:30 - DR Breakfast: Legal Hot Topics
4 9:00-5:00 RE Sales Pre-license Class
9:00 Golf Comm. WRAR Scholarship Deadline
5
6 9:00 YPN Mtg.
7 9:00 Gov’t Affairs Committee
8 9:00 Finance Comm 10:30 Board of Directors
9
10 8:00-4:00 MLS PIN Training 9:30 Membership Comm.
11 9:00-5:00 RE Sales Pre-license Class
12
13
14
15 9:00-3:00 New Member Orientation
16 1:00-4:00 Scholarship Interviews
17 1:00-4:00 Scholarship Interviews
18 9:00-5:00 RE Sales Pre-license Class
25
NAR Mid-Year Meeting, Washington DC 19
20 8:00-4:00 MLS PIN Training
21 9:00-11:00 WCR Meeting
22 10:30-2:30 Wells Fargo Class
23 1:00-3:00 MAR State Directors Meeting
24
29 8:00-8:00 CEU Classes
30 Wells Fargo Seminar
31
11:30-1:30 Fairway Mortgage Financing CEU Class 26
27 MEMORIAL DAY WRAR Offices Closed
28
REALTOR® Build Day Habitat for Humanity
Save the Date! June 4 June 5 June 7 June 20
WRAR Awards Banquet at the Hanover Theatre for the Performing Arts REALTOR® Day on Beacon Hill Beautify Your Board Day WRAR Golf Tournament at Green Hill Golf Club
“Learn everything you can, anytime you can, from anyone you can - there will always come a time when you will be grateful you did.” -Sarah Caldwell Worcester Regional Association of REALTORS® 2 www.wrar.org
MEMBERSHIP COMMITTEE Welcome to Our Newest Members
Welcome
New Applicants
Julius Hernandez.............. Exit Realty Partners......................................Shrewsbury Bella Fox........................... Coldwell Banker Res. Brok. Park.................Worcester Cynthia Grapov................. Coldwell Banker Res. Brok. Park.................Worcester Vanessa Hoenig................ Hope Real Estate Group, Inc........................Webster Shayne Dahlgren.............. Exit Realty Partners......................................Worcester Michael Rivers.................. Keller Williams Realty -Gr. Worc..................Worcester Michael Gough................. Exit Beacon Pointe Realty............................Northboro Melynda Christian............ RE/MAX Professional Associates................Charlton William Rivers................... RE/MAX Professional Associates................Sturbridge Zhuoran Li......................... Coldwell Banker Res. Brok. Park.................Worcester Keith Pentz....................... RE/MAX Advantage1....................................Worcester Judith Frey........................ Susan A. Flynn & Associates........................Westboro Adriana Nunes................. Homestead Realty Solutions, LLC...............Worcester
New Office
Ernie Houde...................... Weichert REALTORS Ernie Houde................Sec.Broker 127 Lakeside Ave, Marlborough MA 01752 Cassandra Rice................ East West Mortgage.....................................Affiliate 171 Locke Drive, Suite 107, Marlboro MA 01752 Mark Spencer East West Mortgage.....................................Affiliate 71 Locke Drive, Suite 107, Marlboro MA 01752
Reinstated Members
Donna Duca...................... RE/MAX Prestige..........................................Northborough
Secondary REALTORS® Tammie Gagner............... Exit Realty Partners......................................Worcester
“Opportunity is missed by most people because it is dressed in overalls and looks like work.” – Thomas Edison Worcester Regional Association of REALTORS® 3 www.wrar.org
MEMBERSHIP COMMITTEE Vote TODAY for the REALTORS® CHOICE AWARD This is the 19th year that this award for professional excellence will be presented to one of our REALTORS®. This award recognizes an individual holding REALTOR® membership in our Board who, in the opinion of his/her peers, is the most professional, courteous and cooperative in the listing and selling of real estate. Service on Board Committees is not required. Only one vote per REALTOR® member is allowed. REMEMBER: It is important that you vote for someone that you have had a real estate transaction with in 2012 and who went above and beyond to provide exceptional service not only to their client, but to YOU, their fellow REALTOR®. THIS IS NOT A COMMITTEE SELECTION. The Board staff will count the votes upon receipt. The recipient of this award will be the REALTOR® member who receives the most votes.
NOMINEES Heather Carbone Kathy Craig Lauren Demerjian Jayne Diliberto Tracey Fiorelli Sarah Gustafson Erika Hall
Svetlanna Harris Lucie Lemke Christine Reilly Judy Reynolds Anne Marie Sorensen Julie Sprindzunas Dave Stead
DEADLINE FOR VOTING: THURSDAY, MAY 16
Please return completed form to lsprague@wrar.org or fax to 508-832-6620. You may register for the Awards Reception using the form on the next page.
My vote for the 2013 REALTORS® CHOICE AWARD IS:_______________________________________ Contact Name:_________________________________________________________________________________________
Company::____________________________________________________________________________________________
Signature (required)_____________________________________________________________________________________
Worcester Regional Association of REALTORS® 4 www.wrar.org
MEMBERSHIP COMMITTEE Each year the Worcester Regional Association of REALTORS® recognizes its members for their professional achievements including involvement with our Association and contribution to our communities. Join us in celebrating those achievements.
R FOOD FO T E P F O D CAN BRING A DRIVE AN D O O F T E P T! LE TICKE OUR CAC F F A R E E A FR WRAR RECEIVE BENEFIT S E L F F A R D SHIP FUN SCHOLAR
Join your fellow REALTORS® as we celebrate the winners of the following awards: *REALTOR® of the Year *Natalie Quinlan Distinguished Service Award *REALTORS® Choice $25 before 5/21/2013 *Affiliate of the Year $30 after 5/21/2013 *Rookie of the Year $35
WRAR 2013 Awards Cocktail Celebration Tuesday, June 4, 2013 The Hanover Theatre for the Performing Arts 5:00-6:00 Cocktail Hour 6:00 Awards & Program Member Early Bird: Member Rate Rate: Non-member Price:
To register, return this form via fax to 508-832-6620 or via email to jdinnocenzo@wrar.org. You may also call the WRAR offices at 508-832-6600. Contact Name:______________________________________________ Company:__________________________________ Billing Address:_______________________________________________ City/State/Zip_______________________________ Phone:___________________________________________ Email:_______________________________________________ Amount Due__________
____Check
____American Express
____Discover
____MasterCard
____Visa
Card No______________________________________________________________ Expiration________________________ Signature_____________________________________________________________________________________________
Worcester Regional Association of REALTORS® 5 www.wrar.org
CENTER FOR REAL ESTATE STUDIES & TRAINING Upcoming CEU Courses for May All classes are held at the Worcester Regional Association of REALTORS® CREST School, 492 Washington Street, Auburn, MA 01501.. We also hold periodic classes at the Fidelity Bank Building, 478 Mechanic Street in Leominster. WRAR Members in good standing receive FREE LOCAL CEU’s! Tuition for non-members is $30 for each 2-hour CEU. You may register for classes online at www.CrestRealEstateSchool.com or by calling the WRAR office at 508-832-6600.
Time
Instructor
Auburn, May 29, 2013 Course Code
Course Title
8:00 - 10:00
Bill Murphy
RE47R05
Residential Mortgage Loan Market & Credit Today
10:00 - 12:00
Brad Roberts
RE07RC01
Closing and Settlement
12:00 - 2:00
Brad Roberts
RE44R05
Understanding Title & Title Concerns
2:00 - 4:00
Bob Falter
RE19RC08
Fair Housing
4:00 - 6:00
Bob Falter
RE24RC08
21 E Brownfield
6:00 - 8:00
Bob Falter
RE02R06
Buyer Agency
Seller Agency Class
lar y Popu b k c a B dDeman y with l r direct ge! e t s i g e R a y Mortg Fairwa
Mortgage Financing Secrets to Get More Homes Sold 2 Continuing Education Credits Granted To All Attendees (RE25RC08)
Wednesday, June 19, 2013 9:00 - 11:00 am CREST School, 492 Washington Street, Auburn FREE to WRAR Members $30 for all others Receive 2 CEU’s Get help with your listing presentations using the latest tools, including RPR, Don’t miss this class!
“Luck is what happens when preparation meets opportunity.” – Seneca
The Worcester Regional Association of REALTORS® 492 Washington Street, Auburn, MA 01501 May 21, 2013 11:30AM to 1:30PM Lunch and Refreshments will be served courtesy of Attorney Christine Zicaro Registration begins at 11:15am
To Pre-Register call Jenn at 508-407-8300 or visit http://www.fairwaymortgagene.com/May-21-Education If you’re like most successful REALTORS® you’ll want to learn how to obtain the strongest pre-approvals available for your buyers and have a competitive advantage in getting your offers accepted. In this highly competitive market we can help you understand the financing nuances to get your offers accepted and your transactions closed. And, if you’re a listing agent you’ll want to know how to screen pre-approvals to make sure your Seller is accepting the best available offer. Here’s what you will learn: - How to get the strongest and best pre-approvals available so you’ll have confidence in presenting your offers. - The little known ways Buyers can avoid PMI with less than 20% down. - The new changes in the FHA financing rules you need to know. - Why conventional loan programs may not be the best choice for your clients. - How to assure your loans will close in 30 days . or less. Hosts: Bill Murphy, Fairway Independent Mortgage – Westcor Land and Title Insurance Company – Triad Real Estate School
Worcester Regional Association of REALTORS® 6 www.wrar.org
CENTER FOR REAL ESTATE STUDIES & TRAINING Registration Form Company Name: _______________________________________
Thursday, May 9, 2013 Worcester Regional Association of REALTORS® 492 Washington Street Auburn, MA 9:30 - 10:00 Guest Speaker: Ashley Stolba, Esq. Staff Attorney Massachusetts Association of Realtors® 10 a.m. -12 p.m “Structure of a Commercial Lease" This class will cover everything you ever wanted to know about a Commercial Lease Earn 2 CEU's
Free For REALTORS® $60 for non REALTORS®
H. Sandy Brown, CCIM, RECS, CBR.
Contact Person: _______________________________________ Address:________________________________ City/State/Zip: _______________________________________ Phone: _________________________________ Email: _________________________________
Please reserve _____ seats Free For REALTORS® $60 for non REALTORS® ___Enclosed is a check for $____________ ___Please charge my: Visa MasterCard
American Express
___Enclosed is a check for $____________ Name on Card: _______________________________________ Card Number: _______________________________________ Expiration Date: _______________________________________ Mail checks to: RCAMA, PO Box 1084 East Longmeadow, MA 01028 Phone: (413) 455-4165 Fax: (888) 649-7077 www.commercialrealtorsofma.com
Insturctor: H. Sandy Brown, CCIM, RECS, CBR. Mr. Brown has an impressive list of business credentials that include entrepreneur, author, marketing, sales management and management consultant with many Fortune 100 companies. He was the Vice President of Marketing at Andover Bank and has owned three of his own businesses, a management-consulting firm, an advertising and marketing firm and a food processing and packaging firm. During his tenure at Andover Bank, his pioneering efforts in sales included articles and films that remain a benchmark for sales programs in banking and many other industries. Over the last 25 years, he has consulted with organizations, such as Raytheon, and Philips Electronics.
Worcester Regional Association of REALTORS® 7 www.wrar.org
PROFESSIONAL DEVELOPMENT WRAR Presents: THIRSTY THURSDAY
THIRST FOR KNOWLEDGE!
May’s Topic:
Financing Face-Off
KNOWLEDGE
A light-hearted debate / roundtable discussion concerning topics in mortgage lending that tend to cause confusion in the real estate world. Three industry leaders will hash out discrepancies and, hopefully, come to a consensus on a variety of topics. Atty Jessica Albino will be keeping the boys in check as our expert MC!
Thursday, May 2, 2013 2:00 - 4:00 pm WRAR’s CREST School, 492 Washington Street, Auburn FREE to WRAR members - $30 for all others 3 ways to Register: Online at www.wrar.org Call the WRAR office at 508-832-6600 Fill out the form below.
OCIAL WINE S KING OR & NETW VENT! E G N I W FOLLO
Presenters:
Our Sponsor and MC:
Bryan Larson, Security First Mortgage Funding Bill Murphy, Fairway Mortgage New England Dave Samara, Prospect Mortgage
Attorney Jessica Albino The Law Office of Jessica Albino 102 Puritan Avenue Worcester, MA 01604 774-641-4201
Sign me up ! Return this form via fax to 508-832-6620 or email to jdinnocenzo@wrar.org. You may also enroll online at www.wrar.org
Name _____________________________________________________________________________________________________________ Billing Address______________________________________________________________________________________________________ City/State/Zip_______________________________________________________________________________________________________ Phone________________________________________________ email________________________________________________________ Credit Card #____________________________________________________________ Expiration___________________________________
Worcester Regional Association of REALTORS® 8 www.wrar.org
PROFESSIONAL DEVELOPMENT The WRAR Professional Development Committee is pleased to present:
2013 Office Leadership Breakfasts A Success Series for Office Leaders
Events designed specifically for Broker-Owners, Managers and Team Leaders
It’s Going to Happen; Will you be Ready? The market is turning; your already busy lives are about to get busier and crazier. We’re here to help you develop the tools you need to balance your life and to be successful. Preparation is the key to success! Series Topic #2 Guest Speaker: Date: Event Sponsor:
Series Topic #3: Guest Speakers: Date:
Series Topic #4: Guest Speaker: Date:
LEGAL HOT TOPICS Ashley Stolba, MAR Attorney Friday, May 3, 8:30 am breakfast 9-10 am program; 10-10:30 Q&A/Vendor Booths Greg Gentile, NMLS #11831 SCHAEFER MORTGAGE CORPORATION 179 Shrewsbury Street, Worcester, MA 01604 TECH TOOLS & RESOURCES FOR OFFICE LEADERSHIP - “Branding” Yourself
Representatives from “Dot Loop, TrueForms, MLS, RPR, MAR Friday, September 6, 8:30 breakfast, 9-10 am program; 10-10:30 Q&A/Vendor Booths
HAPPY HOLIDAYS - Making the Most of Your MAR Membership - MAR Freebies!
MAR Representative & Other Vendors Friday, December 6, 8:30 breakfast, 9-10 am program; 10-10:30 Q&A/Vendor Booths
........................................................................... Register now - $15 each! Fax to 508-832-6620 or email to lwalls@wrar.org. May 3_____($15)
Sept. 6_____($15)
Dec. 6_____($15)
Name:_________________________________________________________________________________________ Firm:_________________________________________________________________________________________ Billing Address:_________________________________________________________________________________ Credit Card/Expiration:___________________________________________________________________________ email:_______________________________________________ phone:____________________________________
Worcester Regional Association of REALTORS® 9 www.wrar.org
BOARD SERVICE / COMMUNITY SERVICE Did you know that Committee service or volunteerism is a mandatory item for Lifetime Membership in your Board. We understand that everyone is busy, so we have a lot of programs that you can volunteer and be “Done in a Day.” Some examples: REALTOR® Build Day for Habitat for Humanity - Thursday, May 30. Get your team together, come on down and make a difference in your community. You’ll feel SO great when you’re done! There will be a morning and an afternoon session. Contact Colleen Pappas to sign up. Beautify Your Board Day - Friday, June 7. Get your team together, come on down and help us plant some flowers and spruce up the building. Make YOUR Association a place to be proud of! If you’d like to get a little more involved, we’ve got some great community events coming up. We CAN ALWAYS USE YOUR HELP! Pet Food Drive - May 1 - June 5. This drive is being held by our wonderful Community Action Committee. Please feel free to join in - they would WELCOME your assistance. Perhaps you can gather some support in your office and generate the spirit of giving. Then drop off the pet food at one of our REALTOR® offices listed on the next page or at your WRAR office. Golf Committee - Thursday, June 20. Come golf with us. Enjoy the game, the networking, the great food and drinks. Even better - help the committee. We need help with gathering golfers, sponsors, and pre-event planning, Call Jacki D’Innocenzo at 508832-6600 if you’re able to help.
COMMITTEE ON GOVERNMENT & LEGISLATIVE AFFAIRS REALTOR® DAY ON BEACON REALTOR® Day on Beacon Hill HILL June 5, 9:30am at the State House
The Annual Realtor® Day on Beacon Hill on June 5, 9:30 am at the Massachusetts State House in Boston is an annual event providing Realtors® with a terrific opportunity to meet with state legislators and relay your views on the issues affecting your business. Featured Speaker: Martha Coakley MAR welcomes Martha Coakley, Massachusetts Attorney General to REALTOR®Day on Beacon Hill. Re-elected to her second term as Attorney General in 2010, Coakley has advocated for consumers and taxpayers, and fighting for equality for all while in office. Under her leadership, her office recovered more than $440 million for Massachusetts homeowners and taxpayers and helped keep more than 15,000 people in their homes. MAR works diligently on your behalf to eliminate efforts to over-regulate the real estate industry. Below are a few of the key issues on this year’s agenda that can be discussed with legislators at Day on Beacon Hill. Mortgage Debt Relief An Act Regulating Secondary Metals Dealing Continuing Education Requirements
Join hundreds of fellow REALTORS® and make your voice heard on current legislative issues affecting home ownership and your business. Featured speaker is Martha Coakley, Massachusetts Attorney General. This is followed by the opportunity to visit your legislators and impress upon them their dedication to private property rights.
WRAR Bus departs TJ Maxx parking lot in Auburn at 7:30 am and returns at 3:30 pm FREE to WRAR Members Join us and make your VOICE HEARD! Seats are Limited - Sign up TODAY!
I want to be heard! Sign me up on the bus to BEACON HILL! Name___________________________________________________________________________ Company________________________________________________________________________ email___________________________________________________________________________ Telephone______________________________________________________________________
Worcester Regional Association of REALTORS®
10 www.wrar.org
COMMUNITY ACTION COMMITTEE The COMMUNITY ACTION COMMITTEE of the Worcester Regional Association of REALTORS® requests your assistance with our
pet food drive to benefit
local animal shelters Baypath Animal Shelter Second Chance Animal Shelter Sterling Animal Shelter
Sweet Pea Animal Shelter Worcester Animal Shelter
Please tell your friends, neighbors and co-workers Help us spread the word! ANIMAL SHELTERS ARE A SAFE HAVEN FOR LOST AND HOMELESS CATS AND DOGS IN OUR COMMUNITY. THE WORK OF THESE ORGANIZATONS IS NEVER DONE. THERE ARE ENDLESS NUMBERS OF LOSt, HOMELESS, ABANDONED AND INJURED ANIMALS THAT NEED THE SERVICES OF SHELTERS. THEY CAN’T DO IT WITHOUT OUR HELP. Please drop off canned or dry cat/dog food at any of the following locations in addition to the wrar headquarters in auburn:
Coldwell Banker, Shrewsbury & Worcester ERA Key Realty Svcs., Worcester Janice Mitchell Real Estate, Holden Open door Real Estate, Sterling Re/MAX Vision, Worcester Ross Mortgage Company, Westboro Worcester Regional Association of REALTORS®
11 www.wrar.org
COMMUNITY AFFAIRS COMMITTEE WRAR 15th Annual Golf Tournament Thursday, June 20, 2013 Green Hill Golf Club Worcester, MA Early Bird Rate (May 20 cut-off): Single: $125.00 * Foursome: $500.00 Regular Rates: Single: $137.50 * Foursome: $550.00
Registration: 9:00 am Shotgun: 10:00 am Luncheon: 2:30 pm
Registration includes 18 holes, cart, continental breakfast, luncheon. Each registered foursome receives certificate for a free future round
INSTANT WINE CELLAR RAFFLE! WRAR INSTANT WINE CELLAR RAFFLE!
WRAR INSTANT WINE CELLAR RAFFLE!
A portion of proceeds will be donated to Worcester area homeless shelters.
WRAR INSTANT WINE CELLAR RAFFLE!
WRAR INSTANT WINE CELLAR RAFFLE!
For more info or to register, contact Jacki D’Innocenzo at 508-832-6600 or via email at jdinnocenzo@wrar.org. You may also send this form to WRAR, 492 Washington Street, Auburn, MA 01501 * FAX 508-832-6620 No. of Players_______
Team Captain:___________________________________________________________
Player 1_______________________________________ Player 2__________________________________________ Player 3_______________________________________ Player 4__________________________________________ Contact Name____________________________________________________________________________________ Billing Address___________________________________ City/State/Zip_____________________________________ Phone__________________________________________ email____________________________________________ Amount Due $______
_____Check
_____American Express
_____Discover
_____Master Card
_____Visa
Card No.____________________________________________________ Expiration___________________________ Signature_______________________________________________________________________________________
Worcester Regional Association of REALTORS®
12 www.wrar.org
LOCAL MARKET UPDATE Local Market Update – March 2013 A RESEARCH TOOL PROVIDED BY THE MASSACHUSETTS ASSOCIATION OF REALTORS®
Worcester Regional Association of REALTORS®
+ 1.0%
+ 7.9%
- 29.2%
Year-Over-Year Change in Closed Sales All Properties
Year-Over-Year Change in Median Sales Price All Properties
Year-Over-Year Change in Inventory of Homes All Properties
March
Single-Family Properties Closed Sales Median Sales Price* Inventory of Homes for Sale Months Supply of Inventory Days on Market Until Sale Percent of Original List Price Received* New Listings
Year to Date
2012
2013
+/–
2012
2013
+/–
345 $210,000 3,174 9.2 142 89.6% 882
332 $223,900 2,268 5.6 141 91.7% 723
- 3.8% + 6.6% - 28.5% - 39.4% - 0.9% + 2.4% - 18.0%
852 $208,000 --131 89.6% 2,065
915 $220,000
+ 7.4% + 5.8% --+ 2.8% + 1.8% - 16.8%
March
Condominium Properties
2012
Closed Sales Median Sales Price* Inventory of Homes for Sale Months Supply of Inventory Days on Market Until Sale Percent of Original g List Price Received* New Listings
69 $149,000 823 10.8 152 86.7% 184
2013 86 $190,000 562 6.0 119 92.7% 182
--135 91.2% 1,718
Year to Date +/–
2012
+ 24.6% + 27.5% - 31.7% - 43.9% - 21.7% + 7.0% - 1.1%
182 $141,500 --153 89.1% 509
2013 237 $177,500 --131 93.2% 466
+/– + 30.2% + 25.4% --- 14.9% + 4.6% - 8.4%
* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.
Change in Median Sales Price from Prior Year (6-Month Average)** Single-Family Properties
Condominium Properties
All MLS Worcester Regional Association of REALTORS®
b
All MLS Worcester Regional Association of REALTORS®
a
+ 40%
+ 15%
+ 30%
+ 10%
+ 20%
+ 5%
+ 10% 0% 0% - 5% - 10% - 10%
- 20%
- 15%
- 20% 1-2008
- 30%
1-2009
1-2010
1-2011
1-2012
1-2013
- 40% 1-2008
1-2009
1-2010
1-2011
1-2012
1-2013
** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during
that period period. | All data from the Berkshire County Multiple Listing Service Service, Cape Cod & Islands Association of REALTORS® REALTORS®, Inc Inc. and MLS Property Information Network Network, Inc Inc. | Provided by MAR MAR. Powered by 10K Research and Marketing Marketing.
Worcester Regional Association of REALTORS®
13 www.wrar.org
LEGAL CORNER MAR Legal Hotline Michael McDonagh, MAR General Counsel, and Ashley Stolba, MAR Staff Attorney
Multiple Offers & the Statute of Frauds Q: A seller verbally accepted my buyer-client’s offer over the phone last night, an44d told me she would email me the signed offer in the morning. When I spoke to the listing broker today, she informed me that her seller had accepted another offer. My buyers are so upset! Isn’t that a breach of contract? A. No. Offers are not binding until they are signed by both the buyer and the seller. In order for a contract for the sale of land in Massachusetts to be enforceable, it must comply with the statute of frauds (M.G.L. chapter 259 section 1), which states that no action shall be brought upon a contract for the sale of real property unless it is in writing and signed by the party “against whom enforcement is sought.” Until you receive an accepted offer signed by the seller, technically no enforceable agreement exists. If the seller accepts another offer, even after verbally accepting your buyer’s, there is very little the buyer can do to enforce the agreement.
It is important to note that although this scenario is frustrating, the listing agent probably has not acted unethically. Under Article 1 of the National Association of Realtors® Code of Ethics, Realtors® are required to promote and protect their client’s best interest. In addition, Standard of Practice 1-7 specifies that listing brokers shall continue to submit offers until closing unless otherwise instructed by their clients. If the seller receives other offer(s) after he or she verbally accepts your buyer’s, the agent has a duty to submit those offer(s), and the seller has the right to accept it. Many brokers cry foul and state that they would have gone back to both buyers and asked for their “best and final” offers. While this is common, it is not required. In this scenario, the listing broker probably acted in their client’s best interest by presenting all offers and ensuring the seller accepted the best one for them. If you receive a verbal acceptance, you should be sure to communicate to your buyer that it is not binding until it is memorialized in writing and signed by the seller. A word of caution on e-mail: a recent Massachusetts district court ruling, Feldberg, et al. v. Coxal, held that e-mail exchanges could satisfy the statute of frauds if the material terms of the agreement were present and the parties, through their conduct, displayed intent to be bound. Thus, when negotiating a transaction via email, it is wise to consider the desires of the client in forming an agreement and to be very clear in your email about the intent of the client to form a binding agreement.
Worcester Regional Association of REALTORS®
Q. I am the listing broker of a property that has received multiple offers. One of the offers is a full price, no contingency, cash offer. Is the seller required to accept that offer? A. No. By simply placing a house in the multiple listing service or an advertisement in the paper, the seller does not create a unilateral contract that requires him to sell his property for the asking price. A full price, cash offer, therefore, does not create a contract between the seller and prospective buyer. In a seller’s market, multiple full price offers can come in and the seller may wish to seek a higher price. If this is the case, make sure your seller understands that if he is attempting to create a bidding war, all prospective purchasers could abandon the property. Q: My seller clients have received offers from two different buyers. They now want to counter both of them in writing. Is this permissible? A. While a seller is legally permitted to counter more than one offer at the same time, doing so is not advisable. If the seller counters in writing both offers and each counter is accepted before the seller is able to communicate an intent to withdraw her counter to one of the two buyers, the seller could be bound to two written contracts and thus have potential liability to those buyers. Even if not in writing, verbal acceptance of both offers could likely raise questions as to whether the seller is negotiating in good faith and treating the buyers fairly.
It is important in any multiple offer situation that the sellers understand their options. Explaining these options ahead of time and working with the sellers to develop a strategy that fits their needs and preferences is always a good idea. Sellers can accept one offer and reject others; they can reject all offers as presented, and make a counteroffer to one; they can reject all offers and continue to market the property to other buyers; or they can reject all offers and give all buyers an opportunity to submit another offer as their “highest and best offer.”
For additional information on multiple offers, visit www.marealtor.com and click on “Legal.” NAR has also produced a paper entitled “Presenting and Negotiating Multiple Offers” which has suggestions on how to handle these situations. This document may be found at www.realtor.org.
14 www.wrar.org