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I’ve attached a copy of a document from Pittsburgh’s CB Real Estate’s upcoming marketing campaign. Apparently, CB Real Estate is soliciting their listing clients – en masse – to reduce their sale price by three percent for period of time starting after April 30, 2010 and ending July 31, 2010. This is called the “Buyer Bonus Spring Promotion.”

The pitch to prospective home buyers will go something like this: It’s not too late to avail yourself of the $8,000 credit. All CB Real Estate listings are dramatically reduced for a limited time only. If you purchase one of our listings by July 31, 2010, you’ll receive up to $8,000 (or 3%, whichever is lower) credit from your seller when you buy a CB Real Estate listing. And the best part: this opportunity is available to you EVEN IF YOU’RE NOT A FIRST TIME HOMEBUYER!

Benefits: someone at CB Real Estate thought up a gimmicky idea before “you know who.”

Drawbacks: Attention homebuyers: watch for a possible mass price increase of CB Real Estate listings before the special offer takes effect.

Attention home seller: If you inflate your homeprice to make up for the credit, be forewarned that your house might not appraise for the sale price you agree upon. After all, appraisers are “tighter” than they’ve ever been – gone are the days when properties coincidentally appraise for the sale price. Appraisers are now held to a much higher standard. So you may be stuck selling your house for 3% less after all.

Pitfalls: What happens when the buyer’s lender rejects the credit? Do you think the buyers will just-like-that forgive the $8K credit they were promised? How are CB Real Estate agents going to persuade their sellers to pay the credit “outside of closing” without running afoul of the law?

Now I’m starting to understand why “you know who” didn’t come up with this first.

And the best part of all: home sellers are still obligated to pay commission based upon the full sale price – not on the net price after the credit. So the thanks the sellers get for agreeing to the 3% price reduction is . . . the commission stays the same?!?

On the other hand . . .

buyerbonus.pdf

On April 24, 2009, the Pittsburgh Business Times published their list entitled “Largest Pittsburgh-Area Residential Real Estate Firms.” This list reflects the performance results for 2008 as reported to the PBT by residential real estate brokers throughout Greater Pittsburgh. Achieve Realty has something to celebrate.

For the first time, in its 5 year history, Achieve Realty has cracked the top 10, rising to number 9 on The List. Last year, Achieve was eleventh. This distinction marks a continuation of an upward trend for Achieve Realty, which has risen up The List steadily over the years.

Kristen Stokes, President of Achieve Realty stated, “the PBT list shows that we have been successful in our mission to recruit and retain top professionals. This is a fantastic opportunity to congratulate our agents and our administrative staff for their hard work and their commitment to excellence.”

This year’s list reflects the difficult time our region’s economy experienced during 2008, especially the fourth quarter. Many firms suffered double-digit decreases in revenue. It is one thing to lose market share, but it is quite another to lose colleagues from the industry. We at Achieve Realty understand that the general malaise in the local real estate industry translates into financial hardship for many real estate licensees and their families.

Therefore, as we celebrate our accomplishment, we also offer hope that the real estate market and the broader economy will flourish in the coming months and years so that we may all prosper.

First, you have to read the Post-Gazette article, here. Then come back for my analysis.

There is an old trick they play in politics, justice and business: if you create doubt in people’s minds, they just may not buy into an idea. This doubt is created in many ways. Here are a few examples:

Do you remember the Michael Dukakis tank-helmet disaster? His opposition candidate, George H.W. Bush ran campaign ads showing Dukakis looking “out of character” as he rode around in a tank trying to portray himself as strong on defense issues.

Do you remember the OJ Simpson criminal trial? Defense attorney Johnny Cochran coined a phrase we’ll remember forever: “if it [the glove] doesn’t fit, you must acquit.”

More recently, Gatorade has sued Powerade over claims made by Powerade that Gatorade is nutritionally lacking. (See the details of that suit here.) Regardless of whether Powerade’s assertion is correct, Gatorade couldn’t just sit there and watch Powerade take market share away from them. Instead, Gatorade decided to take the case to the court of public opinion.

In effect Gatorade is saying, “Dear Gatorade drinkers: our drink is not deficient and we’re willing to spend the money to sue someone in hopes that you’ll believe us. Until a judge actually decides whether Powerade’s assertion is correct, Gatorade hopes you will continue drinking our product. Love, Gatorade.”

It is readily apparent that Mr. Hackett is not pleased by Howard Hanna’s recent “Buyer Advantage Program” that features “worry free home buying.” Let’s find out why: according to the Post-Gazette article, Mr. Hackett feels that Hanna is trying to deceive Sellers by hiding contractual language that would require them to pay $329 for an insurance policy that would pay for several mortgage payments in case the buyer loses his/her job after the closing.

Mr. Hackett apparently thinks that Hanna’s buyer agents should be required to verbally notify listing agents that the language is included in the contract.

This is a huge red-herring for the uninitated. You see, real estate law dictates that everything about a contract to convey a house must be in writing. That rule is called the statute of frauds. In a nutshell, the statute of frauds requires that the terms of a contract should be in writing in order to prevent fraud from occurring. (For more explanation, please read here.)

By asserting that Howard Hanna is doing something “sneaky,” you’ve got to accept at least one of three conclusions from Hackett’s criticism:

1. Coldwell Banker agents don’t read the contract when an offer is made to their sellers;
2. Mr. Hackett demands a verbal notice to the listing agent anytime a buyers agent makes any written request to the sellers via the agreement of sale;  or
3. The agreement of sale should be one long, long page – like a scroll – because everything that has consequences that cost $329 or more should be on page one.

Before we analyze Mr. Hackett’s conclusions, remember one thing: there is only one place in the body of the PAR agreement of sale to add additional terms: Page 10. Everybody who practices real estate knows that. There’s ABSOLUTELY NOTHING SNEAKY about putting additional terms, whatever they might be, however they might be (typed or handwritten) on Page 10.

So let’s proceed to the analysis:

1) surely CB agents read the contract thoroughly. That’s their job. It’s the job of every agent.
2) asking for a verbal notice for contractual language inserted by agents is impractical and would make the contractual negotiation process impossible. By the way, CB buyers agents do not now – as a rule – provide verbal notice to listing agents each time they insert additional contractual language into Page 10.
3) Almost every term of the agreement of sale has a financial consequence greater than $329. Plus scrolls don’t fax well. The receiving fax machine has a tendency to cut scrolls into neat 81/2 x 11 sheets.

So why did Mr. Hackett complain to the press about Howard Hanna’s sneaky conduct? My guesses:
1) Hackett is fed up with hearing the buzz about Hanna’s “Buyer Advantage Program.” His only regret is not thinking of the program first. Take heart George: you instituted the Admin fees to consumers before Hoddy did.
2) CB has spent so much money paying Hanna agents to leave Hanna, it would be unthinkable to lose market share to Hanna.
3) Maybe, just maybe, if George goes to the press and complains that Hanna’s practices are deceptive, maybe someone will will actually believe him. Heck “someone” even told George that Hanna agents don’t know that the language is appearing in their own contracts. (Interview with “someone” at 11pm.)

My advice to George: stay credible: create a gimmicky buyer “bailout” program before Northwood or Prudential beat you to it. Quick, call your marketing department in Jersey!

Achieve Realty is proud to announce that Dolly Nicely has joined the firm. A successful professional REALTOR(R) with genuine client empathy – that best describes Dolly Nicely and her approach to real estate. “An advocate for my clients,” is Dolly’s self-described style and business model. Her primary goal is to ensure that clients receive exceptional service and a positive experience. She wants clients to know that she is working in their best interest, and will always be thorough and considerate towards that end. Your Agent Your Advocate is her go-to business strategy and message, and has served her clients for well over ten years.

Since 1999, Dolly has worked hard to establish her business and build her brand in the industry. She has achieved acclaim from clients and peers. Dolly holds designations as an Accredited Buyer Representative (ABR) and a Real Estate CyberSpecialist (RECS). She was a member of the RE/MAX 100% Club and Co-Founder and Past President of the BNI Network Connections Chapter. Her primary focus is Residential and Relocation Sales and Marketing, including Residential Investment Property, in northern Allegheny and southern Butler county.

Prior to real estate, Dolly worked in health care as a RN/BSN. For over twenty years, a “challenging but very satisfying career,” is how Dolly described the experience. “Working with people in stressful situations can be tough, but your job is to help them move ahead and succeed.” When it was time to change direction, the move to Real Estate allowed her to retain that satisfaction from working with people. And that same desire and capability to help people meet their challenges and move forward, has proven the difference in her success.

Dolly says it is very important to make informed decisions for her business and on behalf of her clients. Clients can be assured they will benefit from her advocacy and support through all phases of any transaction, and she will provide education to make informed decisions to ensure a positive outcome. Kristen Stokes, President of Achieve Realty stated, “Dolly perfectly fits the Achieve mold. She has the pragmatism that can only be gained by many years of experience and hundreds of closed transactions. And her time-tested systems make her successful during good economies and bad ones.”

A Pittsburgh native and North Hills resident for over thirty years, Dolly and her husband Mark Nicely, a Civil Engineer, live in Hampton. She is a proud Marine Corps mom with two adult sons, Matthew and Eric, two grandchildren, a third due in May 2009, and a beagle named Buster.

Dolly supports many local organizations, and is particularly active with Children’s Miracle Network. She enjoys her home inside and out, with interests in perennial gardening, interior decorating and antiques. She loves to cook, shop and play with her dog.

Connect with Dolly by phone or online. For Real Estate Nicely Done call her at 412-496-9725 or email her at dollynicely@verizon.net. You can also visit her on the web at www.agentnicelydone.com.

Here’s a great page to read comments from every side of this historic debate.

The revolt started here.

The white house answers the criticism here.

LandAm is the former parent company to Commonwealth Land Title and Lawyers Title.

Click here for article from Richmond Times-Dispatch

And no one has been arrested . . .