| Linknet Real Estate News Digest -
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| | seems to be cooling, industry observers
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| December 22, 2005 - In spite of worrying
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| | expect many newbies to soon leave the
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| signs that the real estate market is
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| | business.
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| slowing down, a survey of wealthy
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| | As Susan Haskins, president of the
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| Americans indicates most remain confident
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| | Northern Virginia Real Estate Association
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| property values will continue to
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| | said, "What you're seeing now are a lot
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| appreciate.
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| | of people coming into the business
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| In a survey conducted by The PNC
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| | thinking they can make a lot of money
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| Financial Services Group, Inc., 65% of
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| | quickly and easily. But they often have
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| those surveyed said they expect to see
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| | no idea of the hours that you have to put
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| double-digit increases in value over the
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| | in, or the commitment. And they will not
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| next five years. Almost 1 in 3 (31%)
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| | last very long."
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| think they will see an increase of 20% or
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| | ==>Rookie Agents get the smallest
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| more.
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| | commissions
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| According to Nicholas Buss, senior vice
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| | Traditionally, real estate agents across
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| president of PNC, "as an investment, real
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| | the U.S. have made between 6 and 7% of
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| estate has been an increasingly dominant
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| | the sale price of a home. This is usually
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| asset class over the past five years...
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| | split between the buying and the listing
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| In general, wealthy Americans have not
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| | agent. But the hot market and the entry
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| been speculative buyers and they remain
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| | of many hungry new agents into the field
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| solidly confident in the long term..."
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| | has made things more competitive.
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| The survey of almost 1,500 wealthy
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| | The overheated market has been giving
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| individuals across the country showed
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| | sellers the impression that houses almost
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| significant regional differences. New
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| | sell themselves, and this has led to cut
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| Englanders were most conservative in
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| | rate listing. For instance, some
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| their expectations; Californians were
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| | internet-based discount services charge a
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| close to the national average; Floridians
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| | flat fee or as little as 1.5% to get a
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| were twice as bullish as the average,
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| | listing the the local MLS system.
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| reflecting the soaring property values of
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| | And of course there are FSBO sites (For
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| the last few years in their part of the
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| | Sale By Owner) which circumvent real
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| country.
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| | estate agent fees altogether.
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| ==>Agents Aplenty as Market Cools Down
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| | The way real estate commissions are
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| In many regions of North America, the
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| | shared between agents and brokers varies
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| boom in real estate seduced many people
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| | across the country and around the world.
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| to turn to real estate for a chance to
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| | Agents usually pay a portion of their
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| cash in. For example, in Maryland,
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| | commission to their broker to cover
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| Virginia and the DC area, the number of
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| | office and administrative fees. But these
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| licensed agents has almost doubled in the
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| | arrangements vary from office to office
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| last six years. The Northern Virginia
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| | and even from agent to agent. New agents
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| real estate association has been adding
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| | often have to pay their broker as much as
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| about 300 new agents every month. And
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| | half their commission. More experienced
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| across the US there was a record high of
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| | agents can sometimes set their terms. And
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| 2.5 million agents by the end of 2004.
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| | the big producers may get to keep their
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| This has made the agent market much more
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| | entire commission.
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| competitive. And now that the market
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