RE/MAX Ranks Highest in Customer Satisfaction in 2011 J.D. Power and Associates Study

Results from the J.D. Power and Associates 2011 Home Buyer/Seller StudySM, recognize RE/MAX for providing the highest overall consumer satisfaction for both home buyers and home sellers. In last year’s study, two different companies ranked the highest in each category, but this year home buyers and sellers both rated RE/MAX the highest.

“It all comes down to professionalism and a commitment to a premier level of customer service,” said RE/MAX Chairman and Co-Founder Dave Liniger. “Because RE/MAX agents average more experience and training than other agents, they are better prepared to deal with home buyers and sellers in any kind of market. And, consumer preferences tell the story . . . nobody sells more real estate than RE/MAX.”

This is the fourth annual study of home buyer and seller satisfaction with the largest national real estate companies, conducted by J.D. Power and Associates. For the home buying experience, three factors were considered: agent/salesperson, office and a variety of additional services. Four factors were examined for the home-selling experience: agent/salesperson, marketing, office and a variety of additional services.

Details from the study indicate that on a scale of 1,000, homebuyer respondents ranked RE/MAX with a score of 805 and home sellers put RE/MAX on top at 791. The 2011 study includes more than 4,200 evaluations from 3,680 respondents who bought or sold a home in the U.S. between March 2010 and April 2011.

In two other 2011 industry surveys of the country’s top real estate brokerages, RE/MAX agents averaged more transaction sides than agents at the other national franchises. The RIS Media Power Broker Survey and the REAL Trends 500 both showed that RE/MAX agents averaged over 14 transactions sides, more than double the average of many competitors.

The success of RE/MAX agents is the result of its comprehensive educational platform, RE/MAX University, which offers over 1,100 educational programs on-demand, and available online, on television, on smart phones and in classrooms around the world.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, spiked up 15.5 percent in the week ended July 15. It was the largest increase since early March.

“Ongoing turmoil in the financial markets primarily due to the sovereign debt crisis in Europe has brought mortgage rates back to their lowest levels of the year,” Michael Fratantoni, MBA’s vice president of research and economics, said in a statement. “Refinance applications have surged in response.”

The MBA’s seasonally adjusted index of refinancing applications soared 23.1 percent, but the gauge of loan requests for home purchases dipped 0.1 percent.

The refinance share of mortgage activity rose to 70.1 percent of total applications from 65.6 percent the week before.

Fixed 30-year mortgage rates averaged 4.54 percent, easing from 4.55 percent.

According to a recent survey, conducted on behalf of the National Association of Home Builders (NAHB), “An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home.”

There is good reason for homeowners to feel this way. Homeownership offers people a wide range of benefits, including many that reside outside your pocketbook. The first benefit is stability. According to the National Association of Realtors (NAR) and their 2010 study named “Social Benefits of Stable Housing,” “Homeownership and stable housing go hand-in-hand. Homeowners move far less frequently than renters, and hence are embedded into the same neighborhood and community for a longer period. ”

This stability has far-reaching affects. Studies have revealed that children of homeowners are more likely to graduate and less likely to live in areas with high crime rates. Responsibility is also passed down to the next generation. Daughters of homeowners have a lower incidence of teen pregnancy.

Read more on the value of homeownership.

Freerateupdate.com’s daily survey of wholesale and direct lenders show that there was little to no impact on mortgage rates this past week which are still at favorable levels. Current 30 year fixed mortgage rates are at 4.250%, 15 year fixed mortgage rates are at 3.500% and 5/1 adjustable mortgage rates are at 2.750%. With good credit and documentation to receive lender approval, borrowers can still obtain these low mortgage rates with 0.7 to 1% origination fee. It is still the best time in many years for consumers to choose home ownership before home prices begin to increase at a steady pace.

Following the trend, current FHA 30 year fixed mortgage rates are at 4.250%, FHA 15 year fixed mortgage rates are at 3.750% and FHA 5/1 adjustable mortgage rates are at 3.000%.

Down payment requirements for FHA mortgage loans are as low as 3.5% which is a bonus considering that FHA allows gifts and housing grants to be used by borrowers. FHA closing costs (APR) do tend to be higher because of the upfront mortgage insurance premium and other FHA fees. Considering all facts, FHA mortgages are still a good choice especially for the first time home buyer.

Read more on Mortgage Rates Remain Steady as Home Prices Improve.

“Despite the economic setbacks Americans have experienced in today’s current climate, it is clear that a strong majority still believe in home ownership and aspire to own a home,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I.

One of the main obstacles to homeownership remains readily available credit and struggles to procure a down payment. The proposed Qualified Residential Mortgage rule, which would require a 20 percent downpayment, has raised concerns from many industry leaders.

The NAR survey revealed that 51 percent of self-described “working class” homeowners who currently own their homes said this new rule would have been a road block to homeownership for them. This same statistic applied to younger non-college graduates, African Americans, and Hispanics.

Read more about Homeownership Remains a Priority.

If you have a family cottage, now is the time to gather everyone together to discuss what will become of it. Without financial planning, there’s a real possibility that your children will have to sell the cottage to pay off the fees and taxes that will come due when you pass away. The other conversation must be about the lifestyles of your children and whether all of them (and their spouses) want to keep the cottage or sell off their share.

“Sentimentality around the family cottage or cabin doesn’t have to calculate into stressful emotions,” says Elaine Blades of Scotia Private Client Group. “There’s no right answer here, so it’s important to look at the destination. Look at what the family wants to happen and work backwards while working with an expert who can anticipate all scenarios to help get there. By starting the succession conversation, adult children often find they’re doing their parents a favour. Have the discussion and have it now.”

The first task is to determine if the children want to continue owning the cottage. What if one sibling wants to keep it but another one wants to sell? Those who want to keep the cottage may not be able to afford going it alone. Can the child who wants out sell his share to a third party? If a sibling dies, does his share of the cottage go to his spouse and children, or to his siblings? What happens if one of the siblings has a marital breakdown and the cottage is part of the division of his assets? Should the spouses be asked to sign a prenuptial agreement that excludes the cottage as one of their shared assets?

Read more about selling the family cottage to your kids.

For the 22 business days ending June 15 — latest DataQuick stats — 78 residences sold in Newport area vs. 72 deals closed in the matching period a year ago — a 8.3% increase over the past 12 months.

At the community level, for this period …

• ZIP 92625 Corona del Mar — median selling price of $1,345,000 that was down 19.0% vs. a year ago. Homes sold were 19 — that was down 13.6% vs. a year ago.
• ZIP 92660 Newport Beach — median selling price of $1,187,500 that was up 2.8% vs. a year ago. Homes sold were 51 — that was up 34.2% vs. a year ago.
• ZIP 92661 Newport Beach — median selling price of $1,927,500 that was up 14.4% vs. a year ago. Homes sold were 7 — that was down 30.0% vs. a year ago.
• ZIP 92662 Newport Beach — median selling price of $1,995,000 that was down 21.4% vs. a year ago. Homes sold were 1 — that was down 50.0% vs. a year ago.
• ZIP 92663 Newport Beach — median selling price of $895,000 that was down 10.5% vs. a year ago. Homes sold were 26 — that was down 3.7% vs. a year ago.
• ZIP 92657 Newport Coast — median selling price of $2,129,500 that was up 20.0% vs. a year ago. Homes sold were 16 — that was down 40.7% vs. a year ago.

Compare those trends with countywide data for the same period: median selling price of $435,000 that was down 3.1% vs. a year ago. Homes sold were 2,845 — that was down 15.6% vs. a year ago.

Local real estate trends to note …

• Newport area home sales were 2.7% of the countywide market in the latest period vs. 2.1% in the year-ago period.
• By the way, Laguna Beach sales were down 48.7% vs. a year ago!
• Of Newport area’s 6 ZIP codes, 1 had sales gains vs. a year ago while 3 had a gain in their median selling price vs. a year ago.
• Medians within the area’s ZIPs ran from $435,000 to $2,129,500 — while the price gap was $809,955 to $1,774,500 a year ago.
• 3 of these 6 Newport area ZIP codes beat the down 3.1% overall performance of the countywide median selling price for the past year.

For the 22 business days ending June 15 — latest DataQuick stats …

• 62 Trabuco/Coto residences sold vs. 40 deals closed in the matching period a year ago — a 55.0% increase over the past 12 months.
• Countywide sales declined 16% in the same period.
• $660,000 was the Trabuco/Coto median selling price. That is up 2% in the year.
• Countywide median selling price of $435,000 was down 3.1% in the year.
• Trabuco/Coto home sales were 2.2% of total Orange County sales in the period vs. 1.2% a year ago.

State Employment Development Dept. stats show Orange County construction bosses reported 67,000 workers in May — up 1,800 from April. That’s the largest month-to-month gain since June 2007.

What’s driving what is at a minimum a stabilization of Orange County construction work?

Read more about 1st gain in O.C. construction jobs in 4 years.

For the 22 business days ending June 15 — latest DataQuick stats …

• 36 Laguna Hills residences sold vs. 33 deals closed in the matching period a year ago — a 9.1% increase over the past 12 months.
• Countywide sales declined 16% in the same period.
• $424,500 was the Laguna Hills median selling price. That is up 32% in the year.
• Countywide median selling price of $435,000 was down 3.1% in the year.
• Laguna Hills home sales were 1.3% of total Orange County sales in the period vs. 1.0% a year ago.