INTEREST RATES HAVE LIKELY HIT BOTTOM
Today’s headline news was the release of the reports on job creations and unemployment. Both reports rattled the markets as they have come in MUCH worse than analysts’ expected. Analysts expected to see approximately 130,000 new jobs created, and the report showed a disappointing 39,000. Furthermore, the unemployment
figure jumped to 9.8%, well above the expected 9.6%.
Normally, this kind of bad economic news would send mortgage rates lower. However, today’s jobs report now puts into question, were the recent string of economic reports a false start that the economy was improving? And will future reports coincide with today’s weak jobs report? Or was today’s reading a bump on the road to recovery? Only time will tell.
However, you can bet the Fed will be putting forth a full dose of QE2 into the economy. And now we are hearing rumors that QE3 will be forthcoming. Remember that the goal of QE2 is to create inflation, pump up stock prices and lower the unemployment rate. All of these goals result in higher mortgage rates. It is starting to look like mortgage rates may have hit their bottom and are now on their
way back up!
Friday, December 3, 2010
Thursday, July 29, 2010
More Buyers Pleased With Real Estate Firms
Satisfaction with national real estate companies among home buyers has improved while satisfaction among home sellers has declined in the last year, according to the J.D. Power and Associates 2010 Home Buyer/Seller Study, released Thursday.
J.D. Powers collected 3,000 evaluations from 2,817 respondents who bought or sold a home between March 2009 and April 2010. Overall satisfaction with the buying experience is determined by rating satisfaction with the practitioner, the office they represent, and a variety of additional services. Four factors are examined for the home-selling experience: the quality of the practitioner’s performance, marketing, the office they represent, and other services.
"Among both home buyers and home sellers, the importance of [practitioners] and salespersons has increased substantially in 2010, compared with 2009," said Jim Howland, senior director of the real estate and construction practice at J.D. Power, in a statement.
"Buyers are increasingly relying upon negotiating skills of [practitioners] and seem to be satisfied with the purchase prices they are obtaining. Despite the fact that sales practitioners appear to be doing a good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively impacting their overall satisfaction with real estate companies," Howland added.
On a 1,000-point scale here are the scores in the home buyer segment:
1. Keller Williams, 817
2. Prudential, 811
3. Coldwell Banker, 805
4. Home-Buyer Segment Average, 803
5. RE/MAX, 801
6. Century 21, 798
7. ERA, 785
8. GMAC/Real Living, 765
Satisfaction ratings on a 1,000-point scale from home sellers:
1. Prudential, 760
2. Keller Williams, 751
3. RE/MAX, 744
4. Coldwell Banker, 743
5. Home-Seller Segment Average, 742
6. Century 21, 727
Source: J.D. Power and Associates (07/28/2010)
J.D. Powers collected 3,000 evaluations from 2,817 respondents who bought or sold a home between March 2009 and April 2010. Overall satisfaction with the buying experience is determined by rating satisfaction with the practitioner, the office they represent, and a variety of additional services. Four factors are examined for the home-selling experience: the quality of the practitioner’s performance, marketing, the office they represent, and other services.
"Among both home buyers and home sellers, the importance of [practitioners] and salespersons has increased substantially in 2010, compared with 2009," said Jim Howland, senior director of the real estate and construction practice at J.D. Power, in a statement.
"Buyers are increasingly relying upon negotiating skills of [practitioners] and seem to be satisfied with the purchase prices they are obtaining. Despite the fact that sales practitioners appear to be doing a good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively impacting their overall satisfaction with real estate companies," Howland added.
On a 1,000-point scale here are the scores in the home buyer segment:
1. Keller Williams, 817
2. Prudential, 811
3. Coldwell Banker, 805
4. Home-Buyer Segment Average, 803
5. RE/MAX, 801
6. Century 21, 798
7. ERA, 785
8. GMAC/Real Living, 765
Satisfaction ratings on a 1,000-point scale from home sellers:
1. Prudential, 760
2. Keller Williams, 751
3. RE/MAX, 744
4. Coldwell Banker, 743
5. Home-Seller Segment Average, 742
6. Century 21, 727
Source: J.D. Power and Associates (07/28/2010)
Friday, June 18, 2010
Low Interest And Fuel Costs Are Providing Relief For US Consumers
NuWire Investor: Written by: Jacob Gaffney - Affordable mortgage rates should help the nation's economy avoid a double-dip by freeing up consumer spending money, according to Morgan Stanley. Although mounting European debt and a weak Euro could have global reverberations, a stronger dollar indicates improved fundamentals in the US. See the following article from HousingWire for more on this.
The US economics team at financial firm Morgan Stanley (MS: 25.80 -0.58%) says in their latest research report that recent gains in the nation's economy point to a remote chance of a so-called double dip — where recent upticks in economic activity are only temporary — citing low mortgage rates as a key driver in drawing this conclusion.
"The dip in conventional 30-year mortgage rates to about 4.8% has triggered a minor refinancing boom; reduced debt service will further add to discretionary spending power for many mortgage borrowers," according to the report. "Taking these offsets into account, we expect net financial conditions to be roughly unchanged."
In their latest report, titled "Defying the Double Dip," authors Richard Berner and David Greenlaw look at several macroeconomic factors in coming to this result. Lower fuel costs and greater infrastructure spending, for example, are providing relief to the American economy at-large, something they don't see changing anytime soon.
"To be sure, the recent surge probably overstates the new upswing, but there remains ample unspent Federal funding," the economists write, "and officials are unlikely to turn off the spigot in an election year when incumbents are threatened."
The report cites "powerful offsets" like the strong dollar, along with low mortgage rates, as potential hedges against the risk of a double dip. Indeed, they concede there are large market worries over growing sovereign debt levels, especially in Europe, where higher borrowing is expected to be favored over austerity measures in the short term.
Paul Ashworth, a senior economist for Capital Economics, did not agree totally with the Morgan Stanley assessment in a note on US manufacturing levels today.
"It is possible we will see a more marked decline in the coming months, as Europe's woes start to affect global trade and domestic inventory rebuilding begins to slow," he wrote.
Ashworth adds that the recent appreciation in the dollar, particularly against the euro, and lower commodity prices mean that over the next 12 months the rise in import prices over the past year will be largely reversed.
"This is another reason to suspect that both headline and core consumer price inflation is going to fall to 0.5% by year-end."
The Morgan Stanley economists recognize the concern that a stronger dollar in concert with the sovereign crisis may promote deflation, but aren't on-board with the theory.
"In contrast, we think the fundamentals for pricing power are gradually improving," they conclude, again with the view of stability in the short term. "Climbing rents, accelerating prices at the early stages of the processing pipeline, and rising import prices all are starting to signal that inflation is bottoming."
This article has been republished from HousingWire. You can also view this article at HousingWire, a mortgage and real estate news site.
The US economics team at financial firm Morgan Stanley (MS: 25.80 -0.58%) says in their latest research report that recent gains in the nation's economy point to a remote chance of a so-called double dip — where recent upticks in economic activity are only temporary — citing low mortgage rates as a key driver in drawing this conclusion.
"The dip in conventional 30-year mortgage rates to about 4.8% has triggered a minor refinancing boom; reduced debt service will further add to discretionary spending power for many mortgage borrowers," according to the report. "Taking these offsets into account, we expect net financial conditions to be roughly unchanged."
In their latest report, titled "Defying the Double Dip," authors Richard Berner and David Greenlaw look at several macroeconomic factors in coming to this result. Lower fuel costs and greater infrastructure spending, for example, are providing relief to the American economy at-large, something they don't see changing anytime soon.
"To be sure, the recent surge probably overstates the new upswing, but there remains ample unspent Federal funding," the economists write, "and officials are unlikely to turn off the spigot in an election year when incumbents are threatened."
The report cites "powerful offsets" like the strong dollar, along with low mortgage rates, as potential hedges against the risk of a double dip. Indeed, they concede there are large market worries over growing sovereign debt levels, especially in Europe, where higher borrowing is expected to be favored over austerity measures in the short term.
Paul Ashworth, a senior economist for Capital Economics, did not agree totally with the Morgan Stanley assessment in a note on US manufacturing levels today.
"It is possible we will see a more marked decline in the coming months, as Europe's woes start to affect global trade and domestic inventory rebuilding begins to slow," he wrote.
Ashworth adds that the recent appreciation in the dollar, particularly against the euro, and lower commodity prices mean that over the next 12 months the rise in import prices over the past year will be largely reversed.
"This is another reason to suspect that both headline and core consumer price inflation is going to fall to 0.5% by year-end."
The Morgan Stanley economists recognize the concern that a stronger dollar in concert with the sovereign crisis may promote deflation, but aren't on-board with the theory.
"In contrast, we think the fundamentals for pricing power are gradually improving," they conclude, again with the view of stability in the short term. "Climbing rents, accelerating prices at the early stages of the processing pipeline, and rising import prices all are starting to signal that inflation is bottoming."
This article has been republished from HousingWire. You can also view this article at HousingWire, a mortgage and real estate news site.
Tuesday, June 15, 2010
Forecasts For International Real Estate Markets In Second Half Of 2010
NU Wire Investor - The global property market is moving in a positive direction, however, not all markets are on the upswing and investors should be careful to consider economic, political and other factors before buying into any market. While Latin America and the US overall offer strong upside potential, markets in Europe, the Middle East, North Africa and Asia have markets that are both up and down. See the following article from Global Property Guide for more on this.
Rio de Janeiro, BrazilThe world's property markets are on the road to recovery, but investors will have to be careful about which markets they select. In a new report, the Global Property Guide makes recommendations for residential property investment during 2010 (download the full Global Property Guide Mid-2010 Property Recommendations report).
The world is no longer moving in one direction, as it did during the crash and the bull market of 2006-2007. Some countries' real estate markets are moving down (most notably Bulgaria, Ireland, Iceland, Slovakia, Spain, the Philippines, Greece, the Netherlands and, for political reasons, Thailand). Others are moving up (Hong Kong, Singapore, Taiwan, Australia, Israel, Finland, Norway, Sweden, and the UK) (see The World's Housing Markets at Q1 2010).
However, the general trend is up, due to lower interest rates and higher government spending.
Things are back to normal.
Well, not quite. The world's housing markets will surely be affected by a major long-term trend, the adjustment - deep and powerful - of economic forces which is now impacting everything we do.
For 15 years the loss of momentum of the developed world was disguised by the housing pseudo-boom, but now the issues have become very apparent.
Inevitably property markets will in future reflect these facts. Some ripples on the surface of the waters:
In Latin America:
Our selections for investors: Peru, Panama, Brazil, and Chile
Possible: Colombia
In the US:
Our selections for investors: states whose property markets fell dramatically during the crisis, beginning with Florida
In Europe:
Our selections for investors: Turkey, Hungary
Turkey, because of its young population, the opening to the East, and its competent government.
Possible: Hungary, because its incompetent government may provoke a crisis which would make its low prices and excellent yields even more attractive.
In the Middle East and North Africa:
The Middle East is in a cycle, led by the Gulf. Recovery may take a while, but the underlying dynamic of petro-dollars, pegged currencies, and high domestic inflation, which tends to push property values up. As yield-oriented investors, we are more interested in the marginal markets, but we expect investors to begin to be interested again in the Gulf soon.
Our selections for investors: Egypt, Jordan
Possible: Morocco, Egypt and Jordan's property markets have been hard-hit by the crisis. But in both countries' capitals, there are generous yields. Morocco has less attractive yields, but a long term tourism trend.
In Asia:Property is over-valued in most countries in Asia, with two exceptions
Our selection for investors:
MalaysiaPossible: Thailand
Malaysia is very stable, and has reasonable returns
Thailand has excellent yields. Prices have been falling, because of the political uncertainty. Developers want to reduce risk by unloading stock. Opportunity knocks.
In the Pacific:
Avoid. Australian residential property is quite overvalued, and interest rates are rising. In New Zealand there is less overvaluation, but we do not see a strong investment case.Download the full report here.This article has been republished from Global Property Guide. You can also view this article at Global Property Guide, an international real estate news site.
Rio de Janeiro, Brazil
The world is no longer moving in one direction, as it did during the crash and the bull market of 2006-2007. Some countries' real estate markets are moving down (most notably Bulgaria, Ireland, Iceland, Slovakia, Spain, the Philippines, Greece, the Netherlands and, for political reasons, Thailand). Others are moving up (Hong Kong, Singapore, Taiwan, Australia, Israel, Finland, Norway, Sweden, and the UK) (see The World's Housing Markets at Q1 2010).
However, the general trend is up, due to lower interest rates and higher government spending.
Things are back to normal.
Well, not quite. The world's housing markets will surely be affected by a major long-term trend, the adjustment - deep and powerful - of economic forces which is now impacting everything we do.
- The leading developing countries are growing rapidly and are assuming much greater importance.
- Relatively speaking, the developed world is losing ground.
For 15 years the loss of momentum of the developed world was disguised by the housing pseudo-boom, but now the issues have become very apparent.
Inevitably property markets will in future reflect these facts. Some ripples on the surface of the waters:
In Latin America:
- Interest rates are in long-term decline, due to better Central Bank policies
- Economies are booming
- Tourism is rising
- The residential property boom that began 3 years ago continues
- Rental yields - critical indicators of the health of property markets - are still high
- Latin currencies are rising
Our selections for investors: Peru, Panama, Brazil, and Chile
Possible: Colombia
In the US:
- The economy is recovering
- The dollar is rising
- Residential property valuations are attractive in some states, and are already attracting investors
Our selections for investors: states whose property markets fell dramatically during the crisis, beginning with Florida
In Europe:
- Property markets have not sufficiently adjusted from their 15-year rise. Residential property yields are poor throughout Europe.
- The panic over the Greek and other deficits shows no side of abating
- The Euro is falling. Currency depreciation should somewhat offset increased fiscal stringency - a positive.
- There are buying opportunities for opportunities for non-Euro buyers, but of themselves residential properties are not an appetizing investment in most of Europe.
Our selections for investors: Turkey, Hungary
Turkey, because of its young population, the opening to the East, and its competent government.
Possible: Hungary, because its incompetent government may provoke a crisis which would make its low prices and excellent yields even more attractive.
In the Middle East and North Africa:
The Middle East is in a cycle, led by the Gulf. Recovery may take a while, but the underlying dynamic of petro-dollars, pegged currencies, and high domestic inflation, which tends to push property values up. As yield-oriented investors, we are more interested in the marginal markets, but we expect investors to begin to be interested again in the Gulf soon.
Our selections for investors: Egypt, Jordan
Possible: Morocco, Egypt and Jordan's property markets have been hard-hit by the crisis. But in both countries' capitals, there are generous yields. Morocco has less attractive yields, but a long term tourism trend.
In Asia:Property is over-valued in most countries in Asia, with two exceptions
Our selection for investors:
MalaysiaPossible: Thailand
Malaysia is very stable, and has reasonable returns
Thailand has excellent yields. Prices have been falling, because of the political uncertainty. Developers want to reduce risk by unloading stock. Opportunity knocks.
In the Pacific:
Avoid. Australian residential property is quite overvalued, and interest rates are rising. In New Zealand there is less overvaluation, but we do not see a strong investment case.Download the full report here.This article has been republished from Global Property Guide. You can also view this article at Global Property Guide, an international real estate news site.
Thursday, June 10, 2010
REI BarCamp Provides Blueprint for Successful Real Estate Investing
RISMEDIA, June 10, 2010 - Real Estate Radio USA, a leading real estate multi-media company, is introducing a nationwide free training program, REI BarCamp, for individuals who would like to break free from the chains of what many have deemed a bad economy.
“Experiencing life-changing profits is not beyond anyone’s reach,” said Barry Cunningham, co-host of Real Estate Radio USA. “What has been missing for most people is the training and opportunity. REI BarCamp provides both.”
REI BarCamp is founded on the premise that competent training, coupled with open discussion and active participation from its attendees, creates the right environment for substantial profits.
“Anyone can make money in real estate,” said Barry Johnson, co-host of Real Estate Radio USA. “You just need to be given a blueprint that you can follow, and the support that you need when you have questions.”
REI BarCamp is the formula for successful real estate investing. Here is the information on the next REI BarCamp.
What: REI Barcamp – Fort Lauderdale
When: Saturday, June 19th (9 a.m. to 5:30 p.m.)
Where: Hyatt Place
91 Southwest 18th Avenue
Dania Beach, FL 33004
Who: Everyone and anyone who is interested in generating profits via the purchase and sale of homes and condos. Calling all Real Estate Investors, Realtors, Mortgage Brokers & Lenders, Title Agents, Appraisers, Home Inspectors, Virtual Assistants, Home Stagers and anyone else in the real estate world (or any other world) who wants to learn how to improve their income through successful real estate investing.
Experience Needed: No experience needed, but those interested in the camp who have successful experience should come and share their knowledge with all of the participants. A REI Bar Camp is designed to be an open forum for all.
Why: Everyone is there to help each other. No gurus or pompous experts. Just a group of like-minded individuals and business people who have an interest in networking, learning, and challenging each other to become better at what they do.
Cost: Absolutely FREE!
“The tips and strategies you’ll learn can benefit just about anybody. It doesn’t matter what your experience level is. Whether you are a stay-at-home Mom, a Realtor, or a new real estate investor, you’ll find REI BarCamp to be extremely valuable”, said Robin Sing-Cunningham, a Realtor with Access USA Realty.
Future REI BarCamps are being planned for Orlando, Atlanta and Tampa.
For more information, visit www.realestateradiousa.com.
“Experiencing life-changing profits is not beyond anyone’s reach,” said Barry Cunningham, co-host of Real Estate Radio USA. “What has been missing for most people is the training and opportunity. REI BarCamp provides both.”
REI BarCamp is founded on the premise that competent training, coupled with open discussion and active participation from its attendees, creates the right environment for substantial profits.
“Anyone can make money in real estate,” said Barry Johnson, co-host of Real Estate Radio USA. “You just need to be given a blueprint that you can follow, and the support that you need when you have questions.”
REI BarCamp is the formula for successful real estate investing. Here is the information on the next REI BarCamp.
What: REI Barcamp – Fort Lauderdale
When: Saturday, June 19th (9 a.m. to 5:30 p.m.)
Where: Hyatt Place
91 Southwest 18th Avenue
Dania Beach, FL 33004
Who: Everyone and anyone who is interested in generating profits via the purchase and sale of homes and condos. Calling all Real Estate Investors, Realtors, Mortgage Brokers & Lenders, Title Agents, Appraisers, Home Inspectors, Virtual Assistants, Home Stagers and anyone else in the real estate world (or any other world) who wants to learn how to improve their income through successful real estate investing.
Experience Needed: No experience needed, but those interested in the camp who have successful experience should come and share their knowledge with all of the participants. A REI Bar Camp is designed to be an open forum for all.
Why: Everyone is there to help each other. No gurus or pompous experts. Just a group of like-minded individuals and business people who have an interest in networking, learning, and challenging each other to become better at what they do.
Cost: Absolutely FREE!
“The tips and strategies you’ll learn can benefit just about anybody. It doesn’t matter what your experience level is. Whether you are a stay-at-home Mom, a Realtor, or a new real estate investor, you’ll find REI BarCamp to be extremely valuable”, said Robin Sing-Cunningham, a Realtor with Access USA Realty.
Future REI BarCamps are being planned for Orlando, Atlanta and Tampa.
For more information, visit www.realestateradiousa.com.
Saturday, April 24, 2010
Puget Sound "Urban Peninsula"
When searching for your next real estate purchase, you will find the Puget Sound region is bejeweled with enchantingly attractive, surprisingly diverse areas and neighborhoods. One that has grown up under the very nose of the Seattle core is West Seattle. Just across Elliot Bay or the West Seattle Bridge from downtown, this peninsula extends into the Sound and boasts famous restaurants and coffee shops, hundreds of unique stores, good schools, beaches, parks and, of course, spectacular water and city views. Every ferry leaving the downtown Seattle ferry docks enjoys a view of West Seattle on its port side, dozens of times a day.
I had recently become reconnected to a college friend through the magic of Facebook. When I mentioned to her my wife and I were considering a move to West Seattle, the tone of her notes suddenly turned ebullient. I've asked her permission to post her comments here:
"Until this year I rode the Water Taxi home every day, my bus pass covered it. Sat on the roof soaking up the sun. 12 minute daily vacation. It's moved down to pier 50 this year, and costs a little more, so I may ride it less. One great thing about our surrounding several blocks is how friendly everyone is. We know many of our neighbors--people are way more friendly than in any suburb we lived in. Our house is old too--80 years old. All the houses are interesting, it's a great neighborhood to walk / run in, lots to look at. And the views!!! Wow, even standing at the bus stop I see mountains to the west, today I noticed a snow capped Cascade mountain from our living room I forgot we could see over the house across the street.
"Can you tell we love it here? Oh, and just before Seafair there is a real parade."
West Seattle -- just another great place to buy a home...and really live!
I had recently become reconnected to a college friend through the magic of Facebook. When I mentioned to her my wife and I were considering a move to West Seattle, the tone of her notes suddenly turned ebullient. I've asked her permission to post her comments here:
"Until this year I rode the Water Taxi home every day, my bus pass covered it. Sat on the roof soaking up the sun. 12 minute daily vacation. It's moved down to pier 50 this year, and costs a little more, so I may ride it less. One great thing about our surrounding several blocks is how friendly everyone is. We know many of our neighbors--people are way more friendly than in any suburb we lived in. Our house is old too--80 years old. All the houses are interesting, it's a great neighborhood to walk / run in, lots to look at. And the views!!! Wow, even standing at the bus stop I see mountains to the west, today I noticed a snow capped Cascade mountain from our living room I forgot we could see over the house across the street.
"Can you tell we love it here? Oh, and just before Seafair there is a real parade."
West Seattle -- just another great place to buy a home...and really live!
Monday, April 19, 2010
Now for some national news...
Here are a couple articles from the Washington Post that might be helpful as you consider the real estate market today:
Mortgage Relief for Unemployed
Attempting to overhaul its foreclosure prevention program, the Obama administration took noteworthy steps to help the unemployed stay current on their mortgage through tough times.
While the trouble in the housing market stemmed originally started with loose lending practices, high unemployment and underwater homeowners are now the major factors contributing to foreclosure.
The program will now:
•Require lenders to “slash” payments for the unemployed for 3-6 months. In some cases, payments could be deferred entirely.
•Cut payments to at least 31 percent of previous income, about the same amount that unemployment insurance pays.
•Become effective over the next 6 months.
•Not require new taxpayer funds. The program has only used a small portion of its $75 billion allocation.
Source: The Washington Post
Helping Underwater Homeowners
Underwater borrowers are one of the major driving forces behind foreclosure. It’s estimated that one in four homeowners owes more than their home is worth. Economists categorize these borrowers as “high risk” because they can’t sell or refinance.
The government is taking the following steps to address underwater borrowers:
1.Principal Reduction. Lenders will be asked to reduce the principal loan balance if it is 15 percent or greater than what the home is worth. This will only be available to borrowers who are current on their mortgage payments and they will need to stay current to “earn” the full reduction over three years.
2.FHA Refinancing. The Federal Housing Administration (FHA) offers refinancing alternatives for borrowers who are underwater and offering incentives for lenders who reduce the principal on primary mortgage by at least 10 percent.
3.Second Mortgages. The government will double the incentive amount paid to lenders who help modify second mortgages. Half of all troubled homeowners have second mortgages, which have been an obstacle in providing modifications.
4.Short Sales. Incentives to lenders who help troubled borrowers that don’t qualify for the program, most commonly a short sale, have been increased.
Source: The Washington Post
Mortgage Relief for Unemployed
Attempting to overhaul its foreclosure prevention program, the Obama administration took noteworthy steps to help the unemployed stay current on their mortgage through tough times.
While the trouble in the housing market stemmed originally started with loose lending practices, high unemployment and underwater homeowners are now the major factors contributing to foreclosure.
The program will now:
•Require lenders to “slash” payments for the unemployed for 3-6 months. In some cases, payments could be deferred entirely.
•Cut payments to at least 31 percent of previous income, about the same amount that unemployment insurance pays.
•Become effective over the next 6 months.
•Not require new taxpayer funds. The program has only used a small portion of its $75 billion allocation.
Source: The Washington Post
Helping Underwater Homeowners
Underwater borrowers are one of the major driving forces behind foreclosure. It’s estimated that one in four homeowners owes more than their home is worth. Economists categorize these borrowers as “high risk” because they can’t sell or refinance.
The government is taking the following steps to address underwater borrowers:
1.Principal Reduction. Lenders will be asked to reduce the principal loan balance if it is 15 percent or greater than what the home is worth. This will only be available to borrowers who are current on their mortgage payments and they will need to stay current to “earn” the full reduction over three years.
2.FHA Refinancing. The Federal Housing Administration (FHA) offers refinancing alternatives for borrowers who are underwater and offering incentives for lenders who reduce the principal on primary mortgage by at least 10 percent.
3.Second Mortgages. The government will double the incentive amount paid to lenders who help modify second mortgages. Half of all troubled homeowners have second mortgages, which have been an obstacle in providing modifications.
4.Short Sales. Incentives to lenders who help troubled borrowers that don’t qualify for the program, most commonly a short sale, have been increased.
Source: The Washington Post
Saturday, March 27, 2010
Terms of Encroachment...
Like any vocation, the real estate business is clad in its own unique language. And I have stumped some 30-year real estate veterans with questions concerning some of the words...even they still haven't absorbed the seemingly endless and expanding inventory of terms related to this industry. Some of the terms come from legal and coloquial expressions that are 100's of years old.
You might have thought "effective age" was when you used to be able to play racquetball for 3 hours. Perhaps you thought a "sash" was something you wore around your kimono. Still convinced a "setback" is moss reappearing in your lawn, a "percolation test" is experienced at Starbucks, a "joint liability" is something that can be treated with BenGay, or a "Granny flat" is the last bad experience your grandmother had in a car? You need to go to our glossary and enjoy the ever-growing list of real estate terms our website provides.
You might have thought "effective age" was when you used to be able to play racquetball for 3 hours. Perhaps you thought a "sash" was something you wore around your kimono. Still convinced a "setback" is moss reappearing in your lawn, a "percolation test" is experienced at Starbucks, a "joint liability" is something that can be treated with BenGay, or a "Granny flat" is the last bad experience your grandmother had in a car? You need to go to our glossary and enjoy the ever-growing list of real estate terms our website provides.
Thursday, March 25, 2010
FHA Signals Efforts to Manage Risk
I will continue the investment article soon, but first, this just in:
In an effort to secure its financial health, the Federal Housing Administration plans to require borrowers to have more “skin in the game” soon. Over the past three years, FHA’s market share has boomed from about 2 percent of all new loans to about 30 percent of all new loans this year and 20 percent of refinances. The escalading volume that the administration is currently handling calls for stricter requirements as evidenced by FHA’s capital ratios falling to nearly 0.5 percent well below the minimum of 2 percent.
The agency is still analyzing the levels and time frames it wishes to tighten its standards but they expect to:
Increase minimum down payments
Increase minimum credit scores
Increase insurance premiums
Lower the amount of seller concessions
As one of the major players in the mortgage market, the health of FHA is imperative to the housing market and flow of credit to home buyers, as well as to the health of the overall economy. Taking measures to safeguard the agency from needing a government tax payer-funded bailout is a notable risk management measure.
According to a Keller Williams research study, the typical first-time buyer put down 3.5 percent this year. Those who want to take advantage of the tax credit before the April 30 contract, June 30 closing deadline may want to beef up their savings and check their credit report now in anticipation of any changes.
In an effort to secure its financial health, the Federal Housing Administration plans to require borrowers to have more “skin in the game” soon. Over the past three years, FHA’s market share has boomed from about 2 percent of all new loans to about 30 percent of all new loans this year and 20 percent of refinances. The escalading volume that the administration is currently handling calls for stricter requirements as evidenced by FHA’s capital ratios falling to nearly 0.5 percent well below the minimum of 2 percent.
The agency is still analyzing the levels and time frames it wishes to tighten its standards but they expect to:
Increase minimum credit scores
Increase insurance premiums
Lower the amount of seller concessions
As one of the major players in the mortgage market, the health of FHA is imperative to the housing market and flow of credit to home buyers, as well as to the health of the overall economy. Taking measures to safeguard the agency from needing a government tax payer-funded bailout is a notable risk management measure.
According to a Keller Williams research study, the typical first-time buyer put down 3.5 percent this year. Those who want to take advantage of the tax credit before the April 30 contract, June 30 closing deadline may want to beef up their savings and check their credit report now in anticipation of any changes.
Wednesday, March 24, 2010
Startling Real Estate Advice! (Part 2)
So have we got your attention? Here's more surprising perspective from banker Brent:
The drawback to home ownership as an investment is that (1) buying a house is expensive, maintaining a house is expensive and selling a house is expensive and (2) even if you sell it at a “profit,” (sic) you still have to find a place to live. And, guess what? While your house was going up in value, so were all the others, including the next one you are going to buy!
Beyond the cost of the home and the requisite downpayment, buying a home with a mortgage carries what the industry refers to as “Closing Costs.” These can range from a few hundred dollars up to as much as 5% of the purchase price (remember, the down payment is not included here). Then you have to maintain the home, an expense that has a bit of sticker shock for most first time buyers. There is insurance, utilities, real estate taxes, upgrades, maintenance—no, you can’t call the landlord anymore to fix the leaky pipes—and, eventually, the replacement of most of the major components of the home.
There’s also interest on your loan. Now, yes, we know it’s deductible. But what does that really mean? For sure, it does not mean you reduce your tax bill by the amount of the interest you pay. It only reduces your taxable income dollar for dollar. But, for a lot of first time homeowners, particularly with families, the rate at which their income is being taxed may be less than 20% (your “marginal” tax rate). At the 15% tax rate (think family of four with income of $70,000), every $1,000 you spend on interest only saves you $150. Same goes for real estate taxes. And you thought you were “wasting” that $1,150 a month you were paying for that 2 bedroom apartment.
But the fun really starts when you go to sell. Unless you are clueless enough to believe you can sell your home yourself without taking a big discount in price, you will engage a realtor, and he/she will charge you 6.0% of your selling price. Not to be outdone, the State will get another 2.0% out of you in transfer taxes, recordings, title insurance, etc. Oh, and did we mention the realtor insisted you REPLACE that old roof of yours ($26,769) or they couldn’t sell your house without a big-time disclosure to the buyer. And, about those old carpets in the living room. . . .
So, forgetting about the cost of maintaining the home (hey, you did a lot of the work yourself!) and even ignoring the cost of the new roof, you paid about 2% getting into the home in closing costs and about 8% selling it. So, you needed to have the actual sales price of your home be 10% higher than what you originally paid for it just to BREAK EVEN. (Here’s a good time to go read Rule # 3 again)
By analogy, compare “investing” in a home and “investing” in a company like, say, Boeing. If I spend $10,000 on Boeing common stock, that’s all I ever have to spend. No maintenance, no insurance, no roof! In fact, in good times, they might even send me a dividend. If Boeing stock goes up 10%, I pay a small commission and keep the rest. If it goes down 10%, I can sell and keep 90% of what I started with. But most importantly, I don’t have to own Boeing stock. When I sell, I can put the money in my pocket. If I had to buy the stock back—like I have to buy a house to live in when I sell the one I was living in—I have gained nothing from an investment standpoint.
Compare that to your house purchase. If you put 10% down to buy a home, and it doesn’t go up in value so that you sell it for what you paid, after your 10% selling costs, you lose your entire investment. And we already described what happens when it goes up 10% in value.
So why aren’t houses GREAT investments? While the great social commentator, Will Rogers, was correct in advising his audience to “buy real estate: they aren’t making any more of it!”, the reality is that a home—except in cases of substantial (read: Expensive) additions and improvements—is a static asset. A three bedroom, 2 bath, 2 car attached garage home will always be a three bedroom, 2 bath, 2 car attached garage home. It will just be older! In fact, without all that maintenance stuff we discussed, it eventually will be a three bedroom, 2 bath, abandoned home, with a 2 car attached garage. By comparison, a company, like Boeing, if successful, is a dynamic asset that grows and changes. It can increase its market share, improve its profit margin, add product lines and generally increase its total value. A home, conversely, incurs a change in value primarily through population growth (more people, no more Earth) and the nominal inflation of the value of the currency.
“But,” cries conventional wisdom, “THERE IS ALWAYS INFLATION!”
Actually, that’s not true nor even close to true. If you study a chart of inflation rates in the US going back to the first condo at Jamestown, you will find that, though periodically broken by short term inflationary periods, and, for that matter, short term deflationary—read DEPRESSION--periods, usually resulting from banking panics in the pre-Federal Reserve days, inflation has been the exception, not the rule. Unfortunately for most of today’s observers, one of the most egregious exceptions to the Rule occurred in the 1970’s during the OPEC crisis. Inflation rose to double digits for half a decade, adjustable rate mortgages reached rates in the 20’s, and wage and price controls were effected by none other than your United States, we of the free market system, of America. This was an event that tainted the perspective of many considered to be financial “experts” today.
The crisis also led to the deregulation of oil prices, airlines and the banking system (interest rates on savings accounts used to be regulated by the government). The effect of these deregulations was to begin the wringing out of the inflationary structure that had been created in the US by years of war, social engineering and cold war fears. Since that time, sustained periods of inflation have not existed, culminating in an environment today where “inflation-indexed” benefits from the government are actually scheduled to decline due to deflation (but, don’t bet on it. Congress isn’t very good at letting its constituents whine!)
“Hey, but housing prices did rise during the early 2000’s, in some cases doubling and tripling in value! What about that, smart guy?”
We will give you time to ponder that abrasive question...until next post...
The drawback to home ownership as an investment is that (1) buying a house is expensive, maintaining a house is expensive and selling a house is expensive and (2) even if you sell it at a “profit,” (sic) you still have to find a place to live. And, guess what? While your house was going up in value, so were all the others, including the next one you are going to buy!
Beyond the cost of the home and the requisite downpayment, buying a home with a mortgage carries what the industry refers to as “Closing Costs.” These can range from a few hundred dollars up to as much as 5% of the purchase price (remember, the down payment is not included here). Then you have to maintain the home, an expense that has a bit of sticker shock for most first time buyers. There is insurance, utilities, real estate taxes, upgrades, maintenance—no, you can’t call the landlord anymore to fix the leaky pipes—and, eventually, the replacement of most of the major components of the home.
There’s also interest on your loan. Now, yes, we know it’s deductible. But what does that really mean? For sure, it does not mean you reduce your tax bill by the amount of the interest you pay. It only reduces your taxable income dollar for dollar. But, for a lot of first time homeowners, particularly with families, the rate at which their income is being taxed may be less than 20% (your “marginal” tax rate). At the 15% tax rate (think family of four with income of $70,000), every $1,000 you spend on interest only saves you $150. Same goes for real estate taxes. And you thought you were “wasting” that $1,150 a month you were paying for that 2 bedroom apartment.
But the fun really starts when you go to sell. Unless you are clueless enough to believe you can sell your home yourself without taking a big discount in price, you will engage a realtor, and he/she will charge you 6.0% of your selling price. Not to be outdone, the State will get another 2.0% out of you in transfer taxes, recordings, title insurance, etc. Oh, and did we mention the realtor insisted you REPLACE that old roof of yours ($26,769) or they couldn’t sell your house without a big-time disclosure to the buyer. And, about those old carpets in the living room. . . .
So, forgetting about the cost of maintaining the home (hey, you did a lot of the work yourself!) and even ignoring the cost of the new roof, you paid about 2% getting into the home in closing costs and about 8% selling it. So, you needed to have the actual sales price of your home be 10% higher than what you originally paid for it just to BREAK EVEN. (Here’s a good time to go read Rule # 3 again)
By analogy, compare “investing” in a home and “investing” in a company like, say, Boeing. If I spend $10,000 on Boeing common stock, that’s all I ever have to spend. No maintenance, no insurance, no roof! In fact, in good times, they might even send me a dividend. If Boeing stock goes up 10%, I pay a small commission and keep the rest. If it goes down 10%, I can sell and keep 90% of what I started with. But most importantly, I don’t have to own Boeing stock. When I sell, I can put the money in my pocket. If I had to buy the stock back—like I have to buy a house to live in when I sell the one I was living in—I have gained nothing from an investment standpoint.
Compare that to your house purchase. If you put 10% down to buy a home, and it doesn’t go up in value so that you sell it for what you paid, after your 10% selling costs, you lose your entire investment. And we already described what happens when it goes up 10% in value.
So why aren’t houses GREAT investments? While the great social commentator, Will Rogers, was correct in advising his audience to “buy real estate: they aren’t making any more of it!”, the reality is that a home—except in cases of substantial (read: Expensive) additions and improvements—is a static asset. A three bedroom, 2 bath, 2 car attached garage home will always be a three bedroom, 2 bath, 2 car attached garage home. It will just be older! In fact, without all that maintenance stuff we discussed, it eventually will be a three bedroom, 2 bath, abandoned home, with a 2 car attached garage. By comparison, a company, like Boeing, if successful, is a dynamic asset that grows and changes. It can increase its market share, improve its profit margin, add product lines and generally increase its total value. A home, conversely, incurs a change in value primarily through population growth (more people, no more Earth) and the nominal inflation of the value of the currency.
“But,” cries conventional wisdom, “THERE IS ALWAYS INFLATION!”
Actually, that’s not true nor even close to true. If you study a chart of inflation rates in the US going back to the first condo at Jamestown, you will find that, though periodically broken by short term inflationary periods, and, for that matter, short term deflationary—read DEPRESSION--periods, usually resulting from banking panics in the pre-Federal Reserve days, inflation has been the exception, not the rule. Unfortunately for most of today’s observers, one of the most egregious exceptions to the Rule occurred in the 1970’s during the OPEC crisis. Inflation rose to double digits for half a decade, adjustable rate mortgages reached rates in the 20’s, and wage and price controls were effected by none other than your United States, we of the free market system, of America. This was an event that tainted the perspective of many considered to be financial “experts” today.
The crisis also led to the deregulation of oil prices, airlines and the banking system (interest rates on savings accounts used to be regulated by the government). The effect of these deregulations was to begin the wringing out of the inflationary structure that had been created in the US by years of war, social engineering and cold war fears. Since that time, sustained periods of inflation have not existed, culminating in an environment today where “inflation-indexed” benefits from the government are actually scheduled to decline due to deflation (but, don’t bet on it. Congress isn’t very good at letting its constituents whine!)
“Hey, but housing prices did rise during the early 2000’s, in some cases doubling and tripling in value! What about that, smart guy?”
We will give you time to ponder that abrasive question...until next post...
Friday, March 19, 2010
Startling Real Estate Advice!
We have all heard real estate buying advice -- increasing in both page-count and audio volume over the past few years. I will bet, however, you have never heard advice in the direction or tone of the article I am going to present over the next few days. This advice is both surprising and honest. Though called Selecting the Right House, the article offers perspective on investing, life priorities and our American culture. It comes from a man who graduated in 3 1/2 years in Mathematics and Economics (on the Dean's List) from Brown University. He is an attorney with over 37 years experience in the banking industry. I am proud to say he is also my eldest brother.
Enjoy part 1, and stay tuned in the coming days...
Selecting the Right House (Part 1)
Much advice is offered to the first time homebuyer on choosing the right home. Most of it’s bad! Rather than following the advice of late night infomercials and mortgage brokers operating out of the trunk of their (leased) cars, most homebuyers would have been best served to follow these three easy, common sense rules:
1. Buy a house you like living in;
2. Don’t buy more house than you can afford; and
3. When you’re not sure, go back to rule # 1!
While these rules may seem obvious, we are experiencing a housing crisis today that could not have occurred if these had been followed by most buyers. So why do people use more care picking out an I-Pod than they do purchasing what is probably their most valuable asset? In many cases, it is exactly the fact that the purchase is so significant that buyers don’t trust their own intelligence and, instead, turn to a gaggle of advisors, pundits, self-styled authorities and self-serving promoters to seek advice. The problem is, what you get is quite often a misleading cacophony of half-truths, generalizations, exaggerations and, my favorite, conventional wisdoms.
So why isn’t the conventional wisdom reliable? Well, first of all, if conventional wisdom in the investment area were effective, everybody would be RICH and no one would need advice from experts. Unfortunately, most conventional wisdom is best described as wishful thinking without using any math. Particularly in the areas of finance, economics and investment, where most people feel a bit uncomfortable in DIY mode, a horrendous amount of misinformation gets passed around widely and often enough to become, eventually, so ingrained in our way of thinking that one can hardly be convinced it is total nonsense. Here are a few pertinent examples.
A HOME IS A GREAT INVESTMENT. Hardly. A residence is a necessary investment, like kids’ braces. It can also be a “good” way to preserve capital and keep up with inflation. It can also be a source of great satisfaction and enjoyment, not to mention security and well-being. These are not insubstantial factors and should never be down-played. But purchasing a home because of its investment value is practically never a good decision, even when housing prices rise after the purchase.
Yet, I will always get a room full of dissent and counter-argument when I make this statement, despite the fact that over a quarter of today’s homeowners owe more than the value of their homes, foreclosures are approaching Great Depression volumes and short sales outnumber regular transactions in almost every major market in our country. The argument goes that this market is an “aberration” (yeah, and so was the one in the early 1990’s, the late 1970’s, the 1960’s and from the beginning of the Great Depression until the end of the Korean War, just to trace the last 100 years), or this was caused by Wall Street, or Congress or the neo-Fascist world conspiracy! The fact is it was caused by the same thing that causes all price changes: Supply and Demand. We built too many houses given the number of qualified buyers; hence, prices declined, and, with them went the equity of over-extended (often with second mortgages on top of the firsts) home owner/borrowers who really believed (now I know who watches Survivor and thinks it is real life!) that housing prices always go up.
See what I mean? More soon...
Enjoy part 1, and stay tuned in the coming days...
Selecting the Right House (Part 1)
Much advice is offered to the first time homebuyer on choosing the right home. Most of it’s bad! Rather than following the advice of late night infomercials and mortgage brokers operating out of the trunk of their (leased) cars, most homebuyers would have been best served to follow these three easy, common sense rules:
1. Buy a house you like living in;
2. Don’t buy more house than you can afford; and
3. When you’re not sure, go back to rule # 1!
While these rules may seem obvious, we are experiencing a housing crisis today that could not have occurred if these had been followed by most buyers. So why do people use more care picking out an I-Pod than they do purchasing what is probably their most valuable asset? In many cases, it is exactly the fact that the purchase is so significant that buyers don’t trust their own intelligence and, instead, turn to a gaggle of advisors, pundits, self-styled authorities and self-serving promoters to seek advice. The problem is, what you get is quite often a misleading cacophony of half-truths, generalizations, exaggerations and, my favorite, conventional wisdoms.
So why isn’t the conventional wisdom reliable? Well, first of all, if conventional wisdom in the investment area were effective, everybody would be RICH and no one would need advice from experts. Unfortunately, most conventional wisdom is best described as wishful thinking without using any math. Particularly in the areas of finance, economics and investment, where most people feel a bit uncomfortable in DIY mode, a horrendous amount of misinformation gets passed around widely and often enough to become, eventually, so ingrained in our way of thinking that one can hardly be convinced it is total nonsense. Here are a few pertinent examples.
A HOME IS A GREAT INVESTMENT. Hardly. A residence is a necessary investment, like kids’ braces. It can also be a “good” way to preserve capital and keep up with inflation. It can also be a source of great satisfaction and enjoyment, not to mention security and well-being. These are not insubstantial factors and should never be down-played. But purchasing a home because of its investment value is practically never a good decision, even when housing prices rise after the purchase.
Yet, I will always get a room full of dissent and counter-argument when I make this statement, despite the fact that over a quarter of today’s homeowners owe more than the value of their homes, foreclosures are approaching Great Depression volumes and short sales outnumber regular transactions in almost every major market in our country. The argument goes that this market is an “aberration” (yeah, and so was the one in the early 1990’s, the late 1970’s, the 1960’s and from the beginning of the Great Depression until the end of the Korean War, just to trace the last 100 years), or this was caused by Wall Street, or Congress or the neo-Fascist world conspiracy! The fact is it was caused by the same thing that causes all price changes: Supply and Demand. We built too many houses given the number of qualified buyers; hence, prices declined, and, with them went the equity of over-extended (often with second mortgages on top of the firsts) home owner/borrowers who really believed (now I know who watches Survivor and thinks it is real life!) that housing prices always go up.
See what I mean? More soon...
Thursday, March 4, 2010
Encouraging notes in real estate...
I've always been an optimist, but there seems to be statistical reason to see the real estate cup as half full today. Cases in point:
- Lawrence Yun, Chief Economist for the National Association of Realtors, said recently that unprecedented interest rates, low home prices and tax credits are lifiting the housing market. All these factors combined, he said, are "adding to the buying power of the typical family, with affordability conditions this year at the highest on record dating back to 1970." So far this year, the home price-to-income ratio has fallen well below the historical average of 25% -- the ratio now stands at 15%.
- Fannie Mae is developing new programs to both encourage purchasing their foreclosed properties and improve the neighborhoods where those purchases are made. They are offering 3.5%-of-purchase price, on some properties, toward Whirlpool appliances or closing costs -- or a combination of both. They have also introduced a "First Look" initiative to give home buyers a chance to get the jump on investors, thereby stabilizing neighborhoods. In this program, only buyers who plan to live in the house or public entities committed to the best interests of the community may purchase it for the first 15 days. Once they've made an offer, they have 45 days (up from 30 days) to close and the earnest money requirement may be reduced.
- Only 1.29% of the houses on the market in Washington are foreclosures -- that's tied with Arkansas! It's still tough, but better than the 6.12% in Arizona and 10.17% in Nevada...
Thursday, February 18, 2010
Low Mortgage Rates Clock Is Ticking
I read an interesting series of articles this week on some hints that the Federal Reserve is getting its ducks in a row in order to begin raising interest rates which, of course, will affect your home mortgage rates. They are creating a new "benchmark" for rates and changing other policies so banks will have to stay closer to the Fed's benchmark interest rate.
Also, this article from a local mortgage lender's newsletter seemed to indicate rates will go up soon:
"'IT AIN'T OVER TIL IT'S OVER.' Yogi Berra. And whether you find those words deeply wise or simply puzzling...The Fed has told us repeatedly that their massive purchasing program of Mortgage Backed Securities is just about over - and this translates to home loan rates rising in the near future.
"As you can see in the chart below, the amounts of Mortgage Backed Securities the Fed is purchasing are slowly dwindling, as the program is set to wrap up by March 31st, and are clearly trying to ration out the remaining portion. Last week, the Fed purchased $11 Billion in Mortgage Backed Securities, which leaves them with $66 Billion to spend out of their original $1.25 Trillion allotment. So about 95% of the total has already been spent and has purchased about 3 out of every 4 home loans during the past year. When such a large buyer leaves the market, it is very likely that prices will worsen.
"This is very important because as the Fed has less money to last through the remaining months of the program, their ability to keep home loan rates low via their purchasing power will wane. And those who can take advantage of currently low home loan rates do not wait, as the clock on these historically low rates is ticking."
Just keeping our collective ear to the ground...
Also, this article from a local mortgage lender's newsletter seemed to indicate rates will go up soon:
"'IT AIN'T OVER TIL IT'S OVER.' Yogi Berra. And whether you find those words deeply wise or simply puzzling...The Fed has told us repeatedly that their massive purchasing program of Mortgage Backed Securities is just about over - and this translates to home loan rates rising in the near future.
"As you can see in the chart below, the amounts of Mortgage Backed Securities the Fed is purchasing are slowly dwindling, as the program is set to wrap up by March 31st, and are clearly trying to ration out the remaining portion. Last week, the Fed purchased $11 Billion in Mortgage Backed Securities, which leaves them with $66 Billion to spend out of their original $1.25 Trillion allotment. So about 95% of the total has already been spent and has purchased about 3 out of every 4 home loans during the past year. When such a large buyer leaves the market, it is very likely that prices will worsen.
"This is very important because as the Fed has less money to last through the remaining months of the program, their ability to keep home loan rates low via their purchasing power will wane. And those who can take advantage of currently low home loan rates do not wait, as the clock on these historically low rates is ticking."
Just keeping our collective ear to the ground...
Wednesday, January 27, 2010
HVCC and buying your house
The Home Valuation Code of Conduct (HVCC) is a regulation that attempts to insure the value of a home (on which a mortgage is being issued) is arrived at both independently and objectively. A major challenge with this new legislation is the elimination of the loan originator's ability to discuss the property with the appraiser. In order to comply with HVCC, lenders must use the services of Appraisal Management Companies (AMCs) who then independently select the appraiser from a list of licensed and approved vendors. Only the AMC, homeowner or Realtors may communicate with the appraiser.
With that in mind, your real estate agent should:
• Always insist on meeting the appraiser at the home for the inspection
• Provide the appraiser with any information that you believe would be beneficial in arriving at an accurate value. Examples include any unique features of the subject property, important data regarding comps such as sales that were arm’s length transactions, short sales, bank owned, or comps with poor interior condition, etc.
• Confirm the terms of the contract with the appraiser. Make sure they have the correct sales price, property type (such as SFR or PUD) and are aware of seller credits towards closing costs, etc.
We do that...
With that in mind, your real estate agent should:
• Always insist on meeting the appraiser at the home for the inspection
• Provide the appraiser with any information that you believe would be beneficial in arriving at an accurate value. Examples include any unique features of the subject property, important data regarding comps such as sales that were arm’s length transactions, short sales, bank owned, or comps with poor interior condition, etc.
• Confirm the terms of the contract with the appraiser. Make sure they have the correct sales price, property type (such as SFR or PUD) and are aware of seller credits towards closing costs, etc.
We do that...
Monday, January 25, 2010
$8,000 Tax Credit -- Frequently Asked Questions
The National Association of Realtors has put together a very clear FAQ page on the $8,000 first-time buyers Tax Credit. If you're looking into buying your first home, now's the time to act! Read this article then use the powerful home search tool on my website to start looking!
As I find articles that are more clearly or expertly written than I can do myself, I'll be making them available on this page in the future...keep checking the website to keep up to date on what's happening in Real Estate.
As I find articles that are more clearly or expertly written than I can do myself, I'll be making them available on this page in the future...keep checking the website to keep up to date on what's happening in Real Estate.
Subscribe to:
Posts (Atom)
Posts
