In these days when it seems like no one trusts each other, everything has to be in writing, and there's always doubt that someone's not going to live up to their obligations, it's nice when you work with a party that goes out on the limb and gives you the opportunity to actually make something work, when most others wouldn't. . . . . I'm talking about a real estate transaction that I'm currently involved with.
I represent the buyer in this case and we wrote up an offer on a property they fell in love with! The seller accepted, but it wasn't until a week or so into escrow when we found out that there still was an item on the buyer's credit files that could be detrimental in getting their loan approved. So, we went ahead and did our inspections and negotiations on repairs, then asked the seller to extend the loan contingency period until we could be sure this item was off the credit files, and therefore minimize any risk of problems with the loan. While most sellers would snub their noses at any such idea, these sellers, along with the guidance of their agent, decided to give us a chance. They waited a full two more weeks! All in all, we went over 30 days from the date of acceptance before the buyers were assured their credit file was clear!
How many sellers would do this? I doubt any, but this time it worked out because now we have full loan approval and are getting set to close. Now you might be asking why would a seller go out on a limb and do that? Well, the reality is that in this case there were issues with the pool and decking around the pool and my buyers were actually willing to accept this condition (with a negotiated credit from the seller), so most likely the seller knew that they would run into the same issue with another buyer as they did with my buyer (and a previous buyer that bailed after finding out about this condition), and didn't want to risk having to waste more time losing another buyer!
In the end, my buyers are ecstatic! It's difficult situations like these that really make you realize the benefits of having a qualified agent represent your best interests (if I don't say so myself). This is my favorite part of my job, taking a difficult situation and making it work out! Crista :)
Wednesday, October 20, 2010
Saturday, October 9, 2010
Ghost REO inventory. Where is is?
I went to the California Association of Realtors (CAR) convention in Aneheim last week. In my last blog I shared with you Leslie Appleton's real estate market forecast and hope the information was interesting to you. I also sat in on a REO/Distressed property session and remembered a comment that really was helpful in making sense of the ghost REO inventory that we hear about. What is ghost inventory? It's the hundreds of thousands of properties that have been in the foreclosure process, but for one reason or another the banks have not yet completed the foreclosure process which is the trustee sale.
You hear about ghost inventory quite a bit, but you really don't hear about why the banks may be holding off on the trustee sales. The session I attended shed some light on this question! Once a bank disposes of an asset/liability they are required to show this gain/loss on their financials. If a bank forecloses on a large number of properties in a given month, their books would show a tremendous loss! Stockholders would be very unhappy don't you think? So, what have the banks done to prevent this? They have regulated the homes that have been sold at a trustee sale so that they wouldn't show a over zealous loss in a given period.
What does this mean to you and me? It might give us a little bit of better understanding on why a bank may hold off on the trustee sales or not agree to a short sale. One bright side to the story is that regulating the number of foresclosures has created a bit of stability in the market. On the other hand, this behavior will extend the period of time we will see distressed properties as a significant force in our real estate market. Any thoughts? Let me know. Thanks, Crista :)
You hear about ghost inventory quite a bit, but you really don't hear about why the banks may be holding off on the trustee sales. The session I attended shed some light on this question! Once a bank disposes of an asset/liability they are required to show this gain/loss on their financials. If a bank forecloses on a large number of properties in a given month, their books would show a tremendous loss! Stockholders would be very unhappy don't you think? So, what have the banks done to prevent this? They have regulated the homes that have been sold at a trustee sale so that they wouldn't show a over zealous loss in a given period.
What does this mean to you and me? It might give us a little bit of better understanding on why a bank may hold off on the trustee sales or not agree to a short sale. One bright side to the story is that regulating the number of foresclosures has created a bit of stability in the market. On the other hand, this behavior will extend the period of time we will see distressed properties as a significant force in our real estate market. Any thoughts? Let me know. Thanks, Crista :)
Thursday, October 7, 2010
California Association of Realtors 2011 Market Forecast!
I just returned from a CAR (California Association of Realtors) convention yesterday and the Chieft Economist, Leslie Appleton-Young, gave a presentation on current market statistics and 2011 real estate forecasts. Below is a synopsis of the key real estate market indicators. Overall, she said the economy is officially out of a recession (meaning the economy is no longer shrinking), but the recover will be slow and difficult. In relation to real estate opportunities, the homes today are more affordable today since 1939 due to interest rates and home prices. It's a great time to buy a home! Let me know if you have any questions relating to your real estate needs. thanks, Crista :)
California REALTORS® forecast slight rise in 2011 home sales
Sales of existing, single-family homes are expected to decline slightly in 2010 compared with 2009, but are forecast to rise slightly in 2011, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2011 California Housing Market Forecast.” Meanwhile, the median price of homes in California is expected to increase both in 2010 and 2011 compared with the year prior.
MAKING SENSE OF THE STORY FOR CONSUMERS
Following near record-high levels of year-over-year sales increases, home sales are expected to decline 10 percent in 2010 compared with 2009, according to the C.A.R. forecast. C.A.R.’s economists predict home sales will increase 2 percent in 2011 compared with 2010.
Home sales are expected to end the year at 492,000 units, compared with 546,500 in 2009. C.A.R. forecasts sales will come in at 502,000 units in 2011.
The median sales price is forecast to increase 11.5 percent to $306,500 for 2010, and an additional 2 percent in 2011 to $312,500, C.A.R. announced.
According to C.A.R. Chief Economist Leslie Appleton-Young, the Association expects a net jobs increase of approximately 1.4 million jobs in California for 2011 and an improvement in unemployment figures, which many believe are key to the economic recovery.
Ms. Appleton-Young also noted that a lean supply of available homes for sale will drive up prices at the low end ($500,000 and less), but larger inventories and limited, less-attractive financing will cause continued softness at the high end of the market ($1 million and more).
California REALTORS® forecast slight rise in 2011 home sales
Sales of existing, single-family homes are expected to decline slightly in 2010 compared with 2009, but are forecast to rise slightly in 2011, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2011 California Housing Market Forecast.” Meanwhile, the median price of homes in California is expected to increase both in 2010 and 2011 compared with the year prior.
MAKING SENSE OF THE STORY FOR CONSUMERS
Following near record-high levels of year-over-year sales increases, home sales are expected to decline 10 percent in 2010 compared with 2009, according to the C.A.R. forecast. C.A.R.’s economists predict home sales will increase 2 percent in 2011 compared with 2010.
Home sales are expected to end the year at 492,000 units, compared with 546,500 in 2009. C.A.R. forecasts sales will come in at 502,000 units in 2011.
The median sales price is forecast to increase 11.5 percent to $306,500 for 2010, and an additional 2 percent in 2011 to $312,500, C.A.R. announced.
According to C.A.R. Chief Economist Leslie Appleton-Young, the Association expects a net jobs increase of approximately 1.4 million jobs in California for 2011 and an improvement in unemployment figures, which many believe are key to the economic recovery.
Ms. Appleton-Young also noted that a lean supply of available homes for sale will drive up prices at the low end ($500,000 and less), but larger inventories and limited, less-attractive financing will cause continued softness at the high end of the market ($1 million and more).
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