Remember the day when builders said you could not sell your home? They put a minimum requirement of how many years you needed to live in it? And often times this would not come up until the closing table? Well how about that? They proved to be serious too, by means of putting a lien on the title of the home so it could not be sold with out their knowledge. So let's see.... You buy a home from them, they do not allow you to sell it while real estate is hot... Why? because they did not want YOU to undersell them after they raised their prices... Think about that for a minute. There was no competition for new homes except amongst the builders themselves. Towards the end of the boom it was almost impossible to find a home that was only 1-2 years old because so many people got tied up in not being able to sell them. So you either had to buy a brand new home or one that was at least a few years old. So putting this into perspective, the builders were the only ones able to sell a brand new home and make a profit on it. So the buyer was forced to wait to sell. That means... they had to wait until the market dclined? They had to wait until there was no equity in their home? Before they could consider selling? Well this would be a good conspiracy theory but most of the iiens had clauses where the builder could look at each case individually and allow the buyers to sell their property in the event of a relocation, call to duty, and yes even a hardship.
If you are interested in buying or selling your house in Gilbert, Phoenix, Scottsdale, Mesa or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Showing posts with label buyer. Show all posts
Showing posts with label buyer. Show all posts
Tuesday, August 25, 2009
Tuesday, August 18, 2009
Appraisers Under Fire?
During the boom years, appraisers were questioned on presenting appraisals that were multiple percentage points higher between similar houses closing within a month's times of each other. Now the tables have turned and the appraisers are being questioned on the de-valuing of houses when they are appraised and under contract. So the house is listed and often as a short sale. A buyer has presented their best offer, the funding lender orders an appraisal and it comes back lower than the offered price. Well now the listing agent must go back to the seller's lenders and ask for further reduction in payoff.
Why is this happening? Well it is the new guidelines the appraisers are having to work under. First, loan officers, mortgage brokers and real estate agents cannot have any role in selecting appraisers. So the lenders are outsourcing the selection process to AMC's or Appraisal Management Companies. These management companies take a hefty fee of nearly half of the appraisers fee for giving them the assignment. Instead of the appraiser working in a specific area of familiarity, they are being asked to work anywhere and everywhere requiring them to travel great distances for an appraisal on a property they are not familiar with. Now when doing an appraisal you make adjustments to the comparable properties. So that requires a little research to figure what the adjustment for an extra garage bay or an extra bedroom or larger lot size should be compared to other properties. So the appraiser has more homework to do for half the pay.
Other considerations or adjustments appraisers need to account for (in my opinion) is properties that are sold as foreclosures versus short sales versus normal transactions. A foreclosed property usually has limited disclosures, no SPDS report, no CLUE report, shortened inspection period (some lenders even requiring the inspection to be done BEFORE presenting the offer). So naturally that would lead someone to present an offer at a discount because they are limited in the knowledge of a property. Whereas in a short sale or normal transaction, you will receive a Seller Property Disclosure Statement, you will receive a Comprehensive Loss Underwriting Exchange report so the buyer knows the claims history on the property and if there are any problems the owner knows about. Also a foreclosed or lender owned property will result in a daily per diem charge if the property does not close in time. A short sale or normal transaction the close of escrow date can usually be extended with no harm to either side.
How about financing, does a cash purchase have as high of closing costs as an FHA loan? No it does not, and therefore in a cash transaction shouldn't there be an adjustment on the price as to what someone would have paid if it were financed? Well just some food for thought.
If you are interested in buying or selling your house in Gilbert, Phoenix, Scottsdale, Mesa or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Why is this happening? Well it is the new guidelines the appraisers are having to work under. First, loan officers, mortgage brokers and real estate agents cannot have any role in selecting appraisers. So the lenders are outsourcing the selection process to AMC's or Appraisal Management Companies. These management companies take a hefty fee of nearly half of the appraisers fee for giving them the assignment. Instead of the appraiser working in a specific area of familiarity, they are being asked to work anywhere and everywhere requiring them to travel great distances for an appraisal on a property they are not familiar with. Now when doing an appraisal you make adjustments to the comparable properties. So that requires a little research to figure what the adjustment for an extra garage bay or an extra bedroom or larger lot size should be compared to other properties. So the appraiser has more homework to do for half the pay.
Other considerations or adjustments appraisers need to account for (in my opinion) is properties that are sold as foreclosures versus short sales versus normal transactions. A foreclosed property usually has limited disclosures, no SPDS report, no CLUE report, shortened inspection period (some lenders even requiring the inspection to be done BEFORE presenting the offer). So naturally that would lead someone to present an offer at a discount because they are limited in the knowledge of a property. Whereas in a short sale or normal transaction, you will receive a Seller Property Disclosure Statement, you will receive a Comprehensive Loss Underwriting Exchange report so the buyer knows the claims history on the property and if there are any problems the owner knows about. Also a foreclosed or lender owned property will result in a daily per diem charge if the property does not close in time. A short sale or normal transaction the close of escrow date can usually be extended with no harm to either side.
How about financing, does a cash purchase have as high of closing costs as an FHA loan? No it does not, and therefore in a cash transaction shouldn't there be an adjustment on the price as to what someone would have paid if it were financed? Well just some food for thought.
If you are interested in buying or selling your house in Gilbert, Phoenix, Scottsdale, Mesa or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Tuesday, August 11, 2009
Investor Short Sales Part Two
Yesterday I gave you five key points to determine whether or not you should list your house with an investor who is ultimately going to purchase your home in a short sale situation. Here are a few more topics.
6). Earnest deposit. Let's face it, an earnest deposit is required on nearly every real estate transaction in the United States. So expect them to open escrow upon your acceptance of the purchase offer and put down a reasonable earnest deposit.
7). What if the offer is cash? Well then you should require to see proof of funds, you may be surprised to find out that some cash offers are really not cash at all. It is just financing and a buyer trying to present a "better looking" offer.
8). You need to know what will happen if the bank does not accept the offer that is presented from the investor. Your home is listed with their preferred listing agent, who has submitted an offer to the bank with an amount they want to pay for it. Remember you as the seller have signed the purchase offer and agreed to sell your home to them. You cannot just back out now, but what if the bank is not accepting the offer? Will they continue to market your home to other potential buyers? Or will they keep your home under contract until it forecloses.
9). As with any transaction, whether it be real property or other, you need to use your best judgment and be sure to do your due diligence.
As with any real property transaction in Maricopa and Pinal counties, we recommend you use us! Marie Zubkoff 480.233.7051 and Andrew Walsh 602.527.2639 with US Preferred Realty. Visit us at http://YourGilbertHome.com Thank you!
6). Earnest deposit. Let's face it, an earnest deposit is required on nearly every real estate transaction in the United States. So expect them to open escrow upon your acceptance of the purchase offer and put down a reasonable earnest deposit.
7). What if the offer is cash? Well then you should require to see proof of funds, you may be surprised to find out that some cash offers are really not cash at all. It is just financing and a buyer trying to present a "better looking" offer.
8). You need to know what will happen if the bank does not accept the offer that is presented from the investor. Your home is listed with their preferred listing agent, who has submitted an offer to the bank with an amount they want to pay for it. Remember you as the seller have signed the purchase offer and agreed to sell your home to them. You cannot just back out now, but what if the bank is not accepting the offer? Will they continue to market your home to other potential buyers? Or will they keep your home under contract until it forecloses.
9). As with any transaction, whether it be real property or other, you need to use your best judgment and be sure to do your due diligence.
As with any real property transaction in Maricopa and Pinal counties, we recommend you use us! Marie Zubkoff 480.233.7051 and Andrew Walsh 602.527.2639 with US Preferred Realty. Visit us at http://YourGilbertHome.com Thank you!
Saturday, August 8, 2009
Taylor Bean to Cease Operations
Here is a link to an article by James R Hagerty regarding the Taylor Bean mortgage lending corporation... http://http://online.wsj.com/article/SB124949523458308423.html
This anouncement will hold up many home purchases that were awaiting to close if they were using Taylor, Bean & Whitaker for lending or funding. Not only that, but many of the borrowers may find themselves having to pay perdiem charges if they were purchasing an REO home. Many sellers may lose their buyers and ultimately end up with their home foreclosed if that buyer cannot get new financing right away. This is not just a secondary purchaser of loans, this is a company that would actually fund the purchase.
Please call Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty to purchase your home in Arizona or if you need to sell your home. We excel in short sales and distressed properties. Visit us at http://YourGilbertHome.com.
This anouncement will hold up many home purchases that were awaiting to close if they were using Taylor, Bean & Whitaker for lending or funding. Not only that, but many of the borrowers may find themselves having to pay perdiem charges if they were purchasing an REO home. Many sellers may lose their buyers and ultimately end up with their home foreclosed if that buyer cannot get new financing right away. This is not just a secondary purchaser of loans, this is a company that would actually fund the purchase.
Please call Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty to purchase your home in Arizona or if you need to sell your home. We excel in short sales and distressed properties. Visit us at http://YourGilbertHome.com.
Sunday, August 2, 2009
First Time Homebuiyer's Tax Credit -CLOSING COSTS
The first-time homebuyer tax credit can be used to pay closing costs or an additional amount over the required 3.5% down on an FHA loan. HUD has strict guidance and regulations on this so you must contact your lender for direction as to how the loan from the tax credit would be repaid and when. Using the tax credit for this purpose is done through what is considered to be a bridge loan or personal loan. For more information on the $8,000 tax credit uses in Arizona, contact Andrew Walsh or Marie Zubkoff for our recommendation of lenders and to ultimately purchase your property here in the valley of the sun.
Wednesday, July 29, 2009
Buyer's Guide
If you are a new buyer in the market, please go to the buyer's page of our website http://www.yourgilberthome.com/contactform.asp and fill in your name, email and request a buyer's guide. We can email one right over to you! There is a ton of great information for you to start familiarizing yourself with the purchase of a home in Arizona. You may also contact Marie Zubkoff 480-233-7051 or Andrew Walsh 602-527-2639 directly.
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