the pit and the pendulum

for those of you reading this that remember the mortgage industry and real estate in 2005-2007 you may understand the title of this post a little better, for those who don't: A bunch of really "smart" politicians decided that home ownership should increase- never mind that the US had one of the highest home ownership rates in the world, so programs such as no DOCS were created along with lower guidelines and standards - the No DOC was my personal favorite - you tell us what you earn and we'll trust you and loan you money... fast forward 2008 to present a "few" loans went into foreclosure - and despite being on tape and youtube and a myriad of other places that proved our fearless leaders did this they cried out " we need to regulate" so along comes Dodd/Frank and other helpful programs. so we went from a system where an appraisal cost $350 to a system with a middle man - this kept the bad lenders and Realtors from influencing appraisers cost went for the home buyer up to $700 on average. and now instead of being able to use local appraisers who know the market and the schools and such some appraisal desk in the Midwest would assign an appraiser to a house in york county with an appraiser from 2 counties away. imaging the concept of government adding a layer and cost to the home buying process- which I hear over and over again the real estate market is essential to the country's health? so now we went form if you had a pulse you got a mortgage to - hey your grandma spent too much money ad banks that are afraid and appraisers - not all but a lot- who have been beaten into submission and when an appraiser does find value then an underwriter pops up and says "I'm not sure I like these comps" - long story short the pendulum has swung and its not helping us get out of the pit.

Short sales / Distressed properties

Mike Wheeler and myself, Bob Argento, have taken the courses and received our CDPE designation- Certified Distressed Property Expert. After extensive class time and case study we now have the tools to better assist the clients of the Sold Team. What we did learn is that not everyone can qualify for a short sale - there are criteria that must be met, and also the process of dealing with the lenders to effectively execute the short sale- what paperwork, what inspections, and what negotiating techniques are essential to avoid foreclosure and get the property sold at short sale, we also gained more of an insight to programs that may be available to homeowners to avoid the short sale and refi their existing mortgages. It is frustrating that some real estate professionals list homes list them a s a short sale when they do not qualify , or then take an offer and do not prepare the correct package for submittal there by dragging the process out longer and still ending in foreclosure- costing the seller further credit damage, delaying a willing and able buyer and worse yet costing the banks and additional 30-50% on the cost of the lost amount.

Thank you

Since facebook got to this faster than I could, this seems a little late but we wanted to thank everyone; our lenders, our title people, our support team, and most of all the customers for making the Sold Team the #1 team for Pennsylvania as awarded by Century 21. Even through the "tough" times we have maintained with all your help our #1 Standing. It is very humbling when we get accolades from you our clients and even more so from the Real estate professionals themselves. so Thanks again and here's to an even greater 2012

Caution

Well in my January blog I alluded to signs of improvement, and it has continued we are seeing more houses sold, less on the market, the short sale fervor has calmed somewhat - the banks are still not handling them as well as they should so buyers have grown tired of the waiting and the process, some banks are doing a better job but we are still seeing 3-5 months in some cases to get an answer back. Rates are still really low even though rates have gone up somewhat due to fees being charged to buyers and refinancers that are being paid to the treasury to make up for payroll taxes but that didnt seem to get a lot or any press and my fear is when they do "fix" payroll tax they wont repeal the fee being charged - they never pull back once they are getting it. but in spite the market has improved lets hope it continues.

2012 New Year

January 2, 2012: well we are still here and see signs of improvement cash buyers, investors, new construction, rentals etc. rates are still unbeleivably low not sure how long that can remain that way. And the distressed properties are finding their way to investors and selling at a decent pace. It is still troubling that some "experts" are telling people you cant offer list price- when the better agents have already taken into account the drop in prices and time frames, the comparables have to be taken into account because in some cases we are seeing artificial drops due to sentiment of no matter what the list is go less... and we still have to work on appraisals there needs to be some continuity... there used to be a guidleline for appraisers for value of certain items i.e. brick, extra garages, level of finish, etc. but all in all we look forward to a great 2012

Moving On

Well the next phase of Century 21 Heritage Realty has arrived, this weekend the move to our new "home" 41 Cinema Dr. York PA 17402. I find I am excited like any buyer even with the bumps and all the hardwor and the worst part the Moving we are excited. Change is of course tough- we wish Hope all the Luck in her new career but welcome Christina in her new role as leader of First Capital Settlement Services LLC., our shiny new office has all the tools we feel we need, wifi, one floor accomodations, easy access, etc., I want to thank alot of people who made this move possible, some in moving, some in helping getting the office up and running, some in construction, etc. Marty couldn't have done it without you, Patty, George, Glen, Wade, Brock & Christina Warner - wow is allI can say over and above. this is just a short list but, also partners, family etc.

Buyer transaction fees

Coming up on 25 years in Real estate seems surreal when I got here they were moving from paper printed comparable books to MLS computers. We went from picking up keys at the listing office to keyed lock boxes, to electronic lock boxes. Some agents had a CB type radio, and beepers were getting the "thing" to have, then car phones installed in cars and ultimately cell phones big heavy "bag" phones. And we as the real estate industry were going to be green and paperless we went from a 5 page document to approx. 30 pages. and the Internet and email??? all of these changes, other than the long tedious contracts, have been pretty much for the good of the industry and the buyers and sellers, some things not so good like the par forms and inspection language but that's for another blog, We have seen transaction fees I while I understand cost cutting and other competition - THE BUYER, YOU THE BUYER SHOULD NOT HAVE TO PAY A TRANSACTION FEE. most people say the sellers pay the commission I beg to differ without the buyer no one pays anything, the seller has no equity unless someone buys, so then to pay a fee to an agent for selling you a property seems unfair. IF YOU ARE PAYING A BUYERS TRANSACTION FEE YOU ARE DEALING WITH THE WRONG AGENT AND COMPANY. I will not get into the legality, BUT WHAT IS RIGHT.