Experienced Realtors needed on both sides of a distressed property transaction

REO_Short_Sale

The article is a stab at “inexperienced” agents.

A complaint I often hear since the housing downturn is how difficult some REO brokers are to deal with. They are unresponsive, unhelpful, uncommunicative and difficult to transact business with.

I’ll be the first to agree that some REO agents do suck, but I’d like to shed some light on another serious problem in the “real estate owned” and distressed property world. If this issue were properly addressed, it would would dramatically cut down on the headaches and overall angst that go with brokering REOs, short sales, HUD and other distressed properties.

I am a Realtor in Anderson Indiana running into banks that are requesting the properties be listed on the so called “auction sites” that suck. Hubzu in my opinion is one of the sites. It gives the consumer the idea that they are an typical auction site. Normally the bank pay the listing agent a basic fee to list it in the MLS/BLC and do nothing more than put a sign in the yard.

Hubzu then charges the buyer a “technology fee” and sometimes the buyer is responsible to pay the buyers agent fee. The tech fee is paid to Hubzu for processing. Hopefully there are no problems during the transaction because the listing agent can do and knows nothing. They don’t even take listing picture. That is the responsibility of the preservation company.

I make sure to inform all my clients of the pitfalls in dealing with REO properties and especially the ones listed through the crappy auction sites. I just finished a purchase with Hubzu that took 60 days for a cash transaction that should have only taken 14 days. Buyer was ready to close but Hubzu took their sweet time.

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UPDATE: 11/24/2014

Since the original article was written I am glad that a rep. from Hubzu has contacted me for feedback. We have spoken many times and the result was a gift certificate for the buyer to help mend the relationship for the mishap during the transaction.

I am happy to hear that the company is taking the effort to improve the process for Realtors and Buyers.

(NAR Leadership Summit 2014) Economic Forecast Presentation

Lawrence Yun, NAR Senior Vice President & Chief Economist, gives an economic update to the 2014 NAR Leadership Summit.

Lawrence oversees and is responsible for a wide range of research activity for the association including NAR’s Existing Home Sales statistics, Affordability Index, and Home Buyers and Sellers Profile Report. He regularly provides commentary on real estate market trends for its 1 million REALTOR® members. Yun creates NAR’s forecasts and participates in many economic forecasting panels, among them Blue Chip and the Harvard University Industrial Economist Council. He appears regularly on financial news outlets, is a frequent speaker at real estate conferences throughout the United States, and has testified before Congress. USA Today in 2008 listed him among the top 10 economic forecasters in the country and he has been named among the Most Influential Real Estate Leaders by INMAN News over the past several years.

See Video Presentation here

Net Worth of Homeowners vs. Renters

Graph

In the past 15 years, the net worth of the typical homeowner has ranged between 31 and 46 times that of the net worth of the typical renter.

Homeowner equity is a substantial component of homeowner wealth. The Federal Reserve’s Survey of Consumer Finances, conducted once every three years, provides a snapshot of family income and net worth along with basic demographic details and more detailed information on where families keep the wealth they have accumulated.

The most recent survey, conducted in 2013, offers a picture of the situation as home and equity prices normalized for most household balance sheets.

Data shows that median homeowners had nearly $200,000 in net worth or 36 times that of the median renter who had just over $5,000. The median value of owners’ homes was $170,000.

Many households own a primary residence (65.2 percent). It is the most commonly held non-financial assets after vehicles (86.3 percent).

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New Home Sales: Cash Purchases on the Rise

 

New Home Sales: Cash Purchases on the RiseThe onset of the housing crisis in 2007 led to a decline in the share of new home sales due to conventional mortgage financing and increases in the shares due to mortgages backed by the FHA and the Department of Veteran’s Affairs (VA), as well as cash purchases.The second quarter data from the Census Bureau’s Quarterly Sales by Price and Financing indicates that count of cash-based new home sales rose to 10,000 for the quarter, matching a cycle high. During the 2002-2003 period, cash sales made up only 4% of purchases. In contrast, cash purchases constitute a considerably larger share of the existing home market – 32% of sales in June 2014 for example.

It is worth noting that another measure of cash sales for total new construction from CoreLogic shows a higher level of cash sales than the Census: 17% in April 2014.

New home sales due to FHA-backed loans fell to 11% of the market during the second quarter. This is down from 28% in the first quarter of 2010 and is closer to the 10% 2002-2003 average. As the conventional mortgage financing share has risen, the share of new single-family home sales due to FHA-backed mortgages has declined. Falling FHA loan limits will likely place additional downward pressure on this share in 2014.

VA-backed loans were responsible for about 11% of new home sales during the second quarter of 2014.

These sources of financing serve distinct market segments, which is revealed in part by the median new home price allocable to each. For the second quarter, the median new home price due to FHA financing was $212,500. The median price for VA-backed loans rose to $274,800.

Conventional mortgage financing had a median price of $289,500.

Finally, the median price for cash purchases for the fourth quarter was $303,500.

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