Lori Lincoln- Keller Williams Taunton MA- Real Estate Blog Informing the public about Real Estate
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If you're like me you want a plan ahead of time to know exactly where you are going to move next before you decide to sell your house. In my experience in Real Estate working with many home sellers, one big mistake I've seen is home sellers out house shopping for a house without cash before their house in on the market.
Here's what happens: You see five houses with your agent.. then you found "it", the perfect house, perfect yard, perfect living space.. the house of your dreams! You then ask your agent to list your house and you make an offer on the house..
So here's the scenerio:
The listing agent then presents this offer to theirr seller ( the offer has a "house to sell" contingency because you don't have cash and have to sell to buy). The seller thinks about how long houses take to sell and declines your offer .. voila.. now you've just had an emotional breakdown because the listing agent informs your agent that the seller tooka better offer.. which doesn't necessarily mean a higher price. Usually it means another buyer could be non-contingent sooner or not at all.
The best way to be a trade up buyer is to have your home listed.. have your agent that lists your home also be your buyers agent on your next home.. He or She can keep you informed bi-weekly, weekly or even daily on what has come on the market and where they are.. You can drive by them.. but don't see them until your house is under contract. Just keep these homes in mind and when the time comes be ready to make an offer on a house you love... oh and be pre-approved for your next loan too.
Also, I noticed that buyers WILL shy away from "subject to seller finding suitable housing". Just give the buyer and yourself 60 days to close. You should be able to find a suitable home within this time frame. The statement "Subject to suitable housing "just doesn't work in today's market. It causes the buyers to think "Gosh, I could be waiting forever!".
Lori Lincoln is a Realtor/Consultant with Keller Williams Realty. She can help you with your home sale and/or your search for a great deal on a new home. Lori Lincoln is a Top Producer and Educator in an office of 124+ agents that care about its clients and their needs.
8000 tax credit, foreclosure sales, listings, house value, home, first time home buyer, Massachusetts, Dighton, Rehoboth, Easton, Franklin, Milford, Somerset, Attleboro, Lakeville, Middleboro, Top producer, Realtor, agent, local
So are you tired of hearing about whether the $8000 tax creditwill be extended? It is always a great time to buy good real estate. Now is just a bit different. I have never seen home prices and interest rates in line with one another. .and the government giving away so much money. Usually it's one or the other, home prices higher, interest rates lower and vice versa.
My first question is who is going to pay for this. Don't get me wrong, the first time home buyer tax credit has helped many buyers and sellers get real estate up an running again..question is.. can we sustain the market without the credit? Should the credit be extended and even include others? Frankly, I have mixed emotions.
On one hand, it scares me.. bet you never thought I would say this.. "Lori the optimist". One cannot help but wonder.. if the credit is extended, that means millions of people are cashing in their credit instead of paying taxes. So who pays for it.?? I believe that would be us? Our country has so much debt now.
On the other hand, if the tax credit isn't extended, will the economy not recover? Will home buyers not be able to buy? After the expiration on Novemeber 30, will the real estate market tank?
The HVCC or Home Valuation Code of Conduct was recently implemented by Fannie Mae and Freddie Mac as a new system of appraisals in the U.S. Under the rules, many of the appraisals are handled by management companies (some of which are also owned by the lenders themselves). The system is designed to reduce fraud and lower costs with an improved appraisal.
This new system has numerous flaws and has been widely criticized from both the Appraisal Institute (which represents over 20,000 appraisers nationwide), and the National Association of Realtors.
Some of the major criticisms include:
Homeowners don't choose who they want to complete the appraisal of their home or how they calculate the value. The appraisal management companies are actually unregulated and the quality of their appraisals may be inferior to those of an established professional appraiser.
The costs are actually increased since the appraisal management companies charge extra for their role. Typically, an appraiser charges approximately $325, but when consigned by the management company they only receive about $200. The customer is charged $400 and must pay up front for the appraisal instead of during closing. If the deal doesn't go through, the consumer absorbs the cost and the management company still pockets the extra charge.
There doesn't seem to be any fee management and the costs for appraisals have increased dramatically. As reported by the National Association of Mortgage Brokers, one lender, EverBank, advertised its fees as follows: $465 for GHA appraisals and $390 for standard single family appraisals. Flat fees in Hawaii are a hefty $700.
The new system is being extended to FHA mortgages, even though they are not included under the new code of rules.
This new regulation increases the overall closing time and the waiting time before the customer can receive funds.
Appraisal portability is also decreased since each lender will require a new appraisal.
Small business appraisers will be squeezed out even though they may have a better knowledge of the area and may be considerably more qualified than the employees of the designated unregulated appraisal management company. This removes competition and equitable pricing guidelines for the consumer. The larger management companies will distribute orders through a central area which may be located hundreds of miles from the property being appraised. The chances of the consumer of receiving a below standard appraisal by employees who are not familiar with the area are increased.
The HVCC was never required to pass through the Administrative Procedures Act, the regulatory Flexibility Act or any other procedural filter generally required by a federal agency. There are some that consider the HVCC code invalid and unenforceable due to its failure to comply to the Administrative Procedures Act.
The Real Estate Settlement Procedures Act (RESPA) regulates the the way lenders and mortgage brokers close a sale and do business. The HVCC is in violation of rules against up-charging and fee-splitting. Every lender could leave themselves open to a possible HUD lawsuit on each loan they issue.
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In any profession, there should be a code of ethics to adhere, mission statement, and value system that you should adhere to .So now, it's the appraisers.
During the real estate boom, some mortgage companies were assigning appraisals to just a select few, and some were demonstrating unscrupulous behavior, forcing values with questionable comparables, etc..
The change with the new HVCC law that was passed May 1, 2009 now mandates that all appraisals will be assigned by a third party whereby the mortgage company will not even know who the appraiser is.
The most common phrase I hear from sellers is " I'm not giving my house away!" I can certainly understand this statement and know first hand how it feels to sell a home that was once worth much more. It truly is relative, you may sell for less now than in 2004, but what you buy will prove a signifigant gain over time too... I digress..
For home sellers, serious consideration should be given to the listing price of the home. In the past, some realtors and their sellers would price their homes way above current market value. The new challenge here is not just with HVCC, but also other appraisal mandates that require value consideration to be given by subtracting 5-10% for declining market. For all intents and purposes, Bristol County MA is still a declining market, according to the market data.
The Home Valuation Code Of Conduct is a belief system put into place that says real estate appraisers should to be intimidated, coerced, bribed, etc, into coming up with a valuation on a property. Fannie mae and Freddie Mac have joined in with the Attorney General of New York to execute a bill that didn't go to the Senate or House Committees, in that the future of the appraisal business will be regulated by Fannie Mae and Freddie Mac if they will be the ones that will sponsor the financing of the mortgage. As of May1, the bill was implemented nationally.
Over over the past year, appraisals have thrown real estate transactions into a tailspin and many time a cancellation of the sale.
In my opinion, when a home is priced at or close to market value, it will sell and it will appraise.
Hire the right realtor that will consult with you and show you all of the facts of record to insure that this won't happen to you.I
Lori Lincoln is an educated consultant who cares about her clients needs first. She understands the market and knows how to help her clients get what they need and want. Call her today!
serving all of Bristol County and surrouding cities and towns: Rehoboth, Berkley,Assonet, Middleboro, Lakeville, Taunton, Dighton, Swansea, Somerset, Raynham, Easton, Attleboro, North Attleboro, Seekonk and more
WoW! What a month! May was an extremely busy month for me and many agents in my area. Three of my listings had multiple offers.. I never thought I'd see this again.
It just proves a point.. 80% of the homes on the market are priced out of the market 20% will sell in a timely manner. There are homes IN the market.. then there are homes that are just ON the market.
Buyers appreciate homes in great condition, nicely located real estate that is priced fair.
The $8000.00 tax credit with great interest rates for buyers has also helped. Higher end homes do not seem to be moving as quickly.
Lori Lincoln is a Realtor serving Bristol County Massachusetts and surrounding cities and towns. Lori Lincoln consult and educates her clients, helping them achieve their home buying and selling goals.
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