We had the opportunity to attend The Norton Agency Advanced Seminar last week. Our President, Frank Norton Jr, gave us a lot of statistics, information, and trends for the national and local real estate market.
Top ten trends, for our area, as identified by The Norton Agency
Expect no upward swing (in regards to prices)
Foreclosures have run their course in Georgia
Lending is invisible (more lending alternatives)
Cash is piled up on the sidelines (folks in a holding pattern)
Value price is in
Healthcare sector is pumping
Agriculture is back (demand for small farms)
Function before glamour (in regards to a home)
Rampant uncertainity is paralyzing!
We are on the edge of a centennial investment opportunity!
With interest rates being the lowest since 1930, owning a home being cheaper than renting, and low pricing, this could very easily be the best opportunity we will have in our lifetime! Take advantage of it!
Saturday, November 19, 2011
Frustration with Appraisals!
I know every agent in this country is feeling the same pain that I feel when it comes to appraisals!
At my weekly Rotary Club meeting I had a friend share his frustration. He recently had his home appraised for refinancing.
His frustration was in the fact that, in his opinion, the appraiser had no idea about the details of the home. When my friend had his home built he spared no expense. Extra insulation, upgraded hardwoods, top of the line fixtures, counter-tops, and extra energy efficiencies throughout.
In a normal market all of these upgrades would weigh on the price of the home. In this market all bets are off!
I told my friend that my home was appraised for $50,000 less than I paid for it in 2001! I have put in a new Kitchen, new Master Bathroom, and screened in the porch! My reward? $50,000 in lower value!
What I saw on my appraisal is that a home is rated excellent, good, fair, or poor. A higher rating is the most you can expect and I do not know how much that adds or subtracts to the value of the home.
Bottom line: I told my friend that I agree with him. Until the appraisers take more factors into account when appraising a home, our values will stay the same
At my weekly Rotary Club meeting I had a friend share his frustration. He recently had his home appraised for refinancing.
His frustration was in the fact that, in his opinion, the appraiser had no idea about the details of the home. When my friend had his home built he spared no expense. Extra insulation, upgraded hardwoods, top of the line fixtures, counter-tops, and extra energy efficiencies throughout.
In a normal market all of these upgrades would weigh on the price of the home. In this market all bets are off!
I told my friend that my home was appraised for $50,000 less than I paid for it in 2001! I have put in a new Kitchen, new Master Bathroom, and screened in the porch! My reward? $50,000 in lower value!
What I saw on my appraisal is that a home is rated excellent, good, fair, or poor. A higher rating is the most you can expect and I do not know how much that adds or subtracts to the value of the home.
Bottom line: I told my friend that I agree with him. Until the appraisers take more factors into account when appraising a home, our values will stay the same
Monday, November 7, 2011
Extension of HUD Property Flipping Exemption
A couple of points:
The FHA is extending the availability of the temporary waiver of its regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, until December 31, 2011
To use an FHA loan on a home that is being flipped: All transactions must be an arms-length transaction. The home cannot have a pattern of previous flipping activity as evidenced by multiple title transfers within the last 12 months. The property must be marketed open and fairly. If the property is being sold for more than 20% of what the seller purchased the home then an appraisal must be done. Also an inspection must be performed.
If you have a client buying or selling a foreclosure property a knowledge of this directive will help especially if an FHA mortgage is involved.
Check with your lender to verify the current rule changes.
Overall this will give you some additional options with FHA financing.
(HUD Docket No. FR-5397-N-03)
The FHA is extending the availability of the temporary waiver of its regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, until December 31, 2011
To use an FHA loan on a home that is being flipped: All transactions must be an arms-length transaction. The home cannot have a pattern of previous flipping activity as evidenced by multiple title transfers within the last 12 months. The property must be marketed open and fairly. If the property is being sold for more than 20% of what the seller purchased the home then an appraisal must be done. Also an inspection must be performed.
If you have a client buying or selling a foreclosure property a knowledge of this directive will help especially if an FHA mortgage is involved.
Check with your lender to verify the current rule changes.
Overall this will give you some additional options with FHA financing.
(HUD Docket No. FR-5397-N-03)
A Wasteful Effort
This recently happened to a friend of mine in the Atlanta area.
A large lending institution advertised that they would be in Atlanta to assist people in modifying, or refinancing, their existing mortgages. Part of this program was a result of the new initiatives passed at the White House.
My friend went online to make an appointment to meet with the lender. No appointments were available. My friend then went to downtown Atlanta on the day of the event to wait in line for three hours! After a long wait my friend finally met with a lender representative. This was one of approximately 7000 such meetings that would take place in one day! As my friend met with the representative, the representative said that they had only approved 3 modification/refinance request all day! A TOTAL OF 3!
Needless to say that my friend was not approved for any help even with a large decrease in home value plus a loss of employment!
After 7 total hours of wasted time my friend received a $10 dollar gift card and had their parking ticket validated!
Based on these results I do not feel very optimistic about this housing market and the chance that the foreclosure mess can be cleaned up!
A large lending institution advertised that they would be in Atlanta to assist people in modifying, or refinancing, their existing mortgages. Part of this program was a result of the new initiatives passed at the White House.
My friend went online to make an appointment to meet with the lender. No appointments were available. My friend then went to downtown Atlanta on the day of the event to wait in line for three hours! After a long wait my friend finally met with a lender representative. This was one of approximately 7000 such meetings that would take place in one day! As my friend met with the representative, the representative said that they had only approved 3 modification/refinance request all day! A TOTAL OF 3!
Needless to say that my friend was not approved for any help even with a large decrease in home value plus a loss of employment!
After 7 total hours of wasted time my friend received a $10 dollar gift card and had their parking ticket validated!
Based on these results I do not feel very optimistic about this housing market and the chance that the foreclosure mess can be cleaned up!
Saturday, October 8, 2011
Trying to Change the Closing Date
Your buyer is anxious to move up the closing. The lender says that they are ready, the buyer is ready, BUT: This is a short sale or a foreclosure!
What does that mean?
It means that the lender has to approve the HUD 48 hours prior to closing. It means having the HUD perfect. It means waiting for the title to arrive, via courier, to the attorney.
When The Wells Team works with a buyer or seller in this situation we become a second set of attorneys. We check on the status of financing, liens, paperwork from the selling institution, paperwork from the buyer's lender, review of bank addendums, inspections, appraisals, surveys and much more.
Bottom line: There are a lot of moving parts that go into a closing. Foreclosures and/or Short Sales make them that more complicated.
The Wells Team prides themselves on keeping up with their clients closing to the point that we also need law degrees!
When you buy or sell a property, especially a short sale or foreclosure, keep in constant contact with your real estate agent. Also realize that there a lot of moving parts to a closing. Trying to change the date can be done but only if everything comes together perfectly.
The key to a successful closing is keeping to a closing date, keeping in constant contact with your realtor, the closing attorney,and your lender.
A lot of work but well worth it at the end!
Friday, October 7, 2011
Relationships Still Work
We were approached by a company offering an internet lead capture system.
I know that they are great systems but The Wells Team obtains their business the old fashioned way: Personal Realtionships.
We are going to have a successful year despite the tough real estate market. The majority of our business is from personal relationships.
The Wells Team has made it a point to be active in the local community, participate in local organizations, and donate to local groups that need assistance.
I realize this is very basic but, after six years in the business, relationships remain a fundamental part of our success.
A simple concept.
I know that they are great systems but The Wells Team obtains their business the old fashioned way: Personal Realtionships.
We are going to have a successful year despite the tough real estate market. The majority of our business is from personal relationships.
The Wells Team has made it a point to be active in the local community, participate in local organizations, and donate to local groups that need assistance.
I realize this is very basic but, after six years in the business, relationships remain a fundamental part of our success.
A simple concept.
Thursday, October 6, 2011
The Norton Agency Has a New App
The Norton Agency is a local company with its dominant presence in North Georgia. Even though we are local, our company keeps up with the latest technology.
If you go the website below, you will be able to download an app that features The Norton Agency. The app will take you to our website where you can search the latest residential and commercial properties available. You will also see the additional services the company provides including property management, Homeworks, insurance, and our affiliations with closing attorneys and title companies.
http://www.wdun.com/accesswdunapp/
The Norton Agency: Local knowledge with both a national and international presence.
If you go the website below, you will be able to download an app that features The Norton Agency. The app will take you to our website where you can search the latest residential and commercial properties available. You will also see the additional services the company provides including property management, Homeworks, insurance, and our affiliations with closing attorneys and title companies.
http://www.wdun.com/accesswdunapp/
The Norton Agency: Local knowledge with both a national and international presence.
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