Freddie Mac Hits REO Selling Record
Freddie Mac has sold a record number of single-family REO homes in the first nine months of 2011, and the homes are selling for an average of 94 percent of market value, Tracey Mooney, Freddie Mac’s vice president of single-family servicing and real estate owned properties, said in a blog post.
“Because our homes are well maintained and priced right for the local market and home buyers, most of our homes sell close to full estimated market value,” Mooney says.
Freddie Mac sold more than 80,000 REOs in the first nine months of 2011.
“We are selling more homes than we are taking in through foreclosure,” Mooney wrote in the blog post. Mooney says Freddie’s REOs are selling in about 4 months or about 120 days, on average.
Most of the REO sales are to owner-occupants. "While we have always been open to selling to investors, our strategy is to limit the concentration of investor sales in any given area," Mooney wrote. "In addition, we do not typically consider any offers that require significant discount pricing."
Source: “Freddie Mac Sells Record-Number REO at 94% of Market Value,” HousingWire (Nov. 14, 2011)
Tuesday, November 15, 2011
Monday, October 3, 2011
Low Appraisal Killing a Transaction?
The National Association of REALTORS® reported that 16 percent of real estate professionals surveyed in June reported a cancelation in a sale, mostly due to a large number of low appraisals.
Many real estate professionals are watching transactions unravel, with some appraisals coming in 10 to 20 percent (sometimes more) below the accepted sale price.
“Over the past decade, finding ‘comps’ that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust,” according to a recent article by RISMedia, 5 Ways to Fight a Low Appraisal. “Discounts paid for foreclosures and short sales have created a dual price structure between ‘normal’ and distress sales.”
Obviously one of the easiest solutions when a low appraisal comes in: Ask the seller to agree to a lower price. But when that doesn’t work, RISMedia offers some of the following tips for fighting low appraisals:
Research to Back Up Your Case
If your clients feel the appraisal was completed incorrectly, they have the right to get a copy of the appraisal from their lender and learn more about who performed it and what comparables were used. For example, your client can find out where the appraiser is based (maybe it was an out-of-town appraiser who was unfamiliar with the area).
“If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal,” the RISMedia article notes.
Also, your client should evaluate what comparables were used in the appraisal. If your client feels unfair comps were used, they may ask their real estate agent to pull together a list of recent comparable sales — or possibly even pending sales too — to justify the agreed-to-sales price, which can then be submitted to the loan’s underwriter to help in asking for a review of the appraisal.
Request a New Appraisal
If your clients feel the appraisal wasn’t done fairly or accurately, they can ask their lender for a new appraisal. “Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely,” the article notes.
Get an Independent Appraisal
Your clients may opt to get their own appraisal. (If the loan is an FHA loan, they should ask the lender for a list of approved appraisers.) The bank will generally review the appraisal and ask the previous appraisal if they agree or disagree with the new one, the article notes.
“If the first appraiser disputes your appraisal, the bank may request a third appraisal done by another appraiser, or they may just reject your appraisal,” according to the article. “However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.”
Many real estate professionals are watching transactions unravel, with some appraisals coming in 10 to 20 percent (sometimes more) below the accepted sale price.
“Over the past decade, finding ‘comps’ that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust,” according to a recent article by RISMedia, 5 Ways to Fight a Low Appraisal. “Discounts paid for foreclosures and short sales have created a dual price structure between ‘normal’ and distress sales.”
Obviously one of the easiest solutions when a low appraisal comes in: Ask the seller to agree to a lower price. But when that doesn’t work, RISMedia offers some of the following tips for fighting low appraisals:
Research to Back Up Your Case
If your clients feel the appraisal was completed incorrectly, they have the right to get a copy of the appraisal from their lender and learn more about who performed it and what comparables were used. For example, your client can find out where the appraiser is based (maybe it was an out-of-town appraiser who was unfamiliar with the area).
“If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal,” the RISMedia article notes.
Also, your client should evaluate what comparables were used in the appraisal. If your client feels unfair comps were used, they may ask their real estate agent to pull together a list of recent comparable sales — or possibly even pending sales too — to justify the agreed-to-sales price, which can then be submitted to the loan’s underwriter to help in asking for a review of the appraisal.
Request a New Appraisal
If your clients feel the appraisal wasn’t done fairly or accurately, they can ask their lender for a new appraisal. “Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely,” the article notes.
Get an Independent Appraisal
Your clients may opt to get their own appraisal. (If the loan is an FHA loan, they should ask the lender for a list of approved appraisers.) The bank will generally review the appraisal and ask the previous appraisal if they agree or disagree with the new one, the article notes.
“If the first appraiser disputes your appraisal, the bank may request a third appraisal done by another appraiser, or they may just reject your appraisal,” according to the article. “However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.”
Tuesday, September 20, 2011
Attention: What does the “New” Stimulus & Real Estate have in common?
Note from Scott:
This is going to effect the majority of small business owners. There are additional fees in the fine print of the proposed "pass this" bill that will essentially be applied to those that do not make an "excessive" income.
Saturday, July 23, 2011
WATER TEST COSTS & INFO
Most water testing labs, both those run by your local health department and private water testing labs offer packages of tests for clusters of common private water supply contaminants.
If you want water tests not offered through your local health department don't hesitate to use a private water testing laboratory, provided the lab is licensed by your state. Beware - a few labs offer water tests in states where they have no license to do so, possibly using methods which are not approved by state authorities. Remember to ask.
If you are moving into a home and are testing water for the first time, it is recommended to order one of the more extensive test packages, typically costing $200 to $300.
If that test detects no problems, it is recommended to follow-up testing the water supply annually, using a less costly minimum screen for bacteria or coliform bacteria, typically costing less than $50.
Another tip: if a home is new to you, ask the neighbors, the local health department, and local labs if they are aware of any special contamination issues on your street or near your home. By doing so, you may want to order tests for unusual contaminants which otherwise no newcomer would have thought to look for.
More information such as: Choices of Water Tests & Fees: A Summary of Types of Water Tests, Degrees of Comprehensive Water Testing, Details of Water Test Parameters and Maximum Allowed Drinking Water Contaminant Levels,
Can be found at the below link:
http://www.inspectapedia.com/water/watrtest.htm
Source: The American Society of Home Inspectors
If you want water tests not offered through your local health department don't hesitate to use a private water testing laboratory, provided the lab is licensed by your state. Beware - a few labs offer water tests in states where they have no license to do so, possibly using methods which are not approved by state authorities. Remember to ask.
If you are moving into a home and are testing water for the first time, it is recommended to order one of the more extensive test packages, typically costing $200 to $300.
If that test detects no problems, it is recommended to follow-up testing the water supply annually, using a less costly minimum screen for bacteria or coliform bacteria, typically costing less than $50.
Another tip: if a home is new to you, ask the neighbors, the local health department, and local labs if they are aware of any special contamination issues on your street or near your home. By doing so, you may want to order tests for unusual contaminants which otherwise no newcomer would have thought to look for.
More information such as: Choices of Water Tests & Fees: A Summary of Types of Water Tests, Degrees of Comprehensive Water Testing, Details of Water Test Parameters and Maximum Allowed Drinking Water Contaminant Levels,
Can be found at the below link:
http://www.inspectapedia.com/water/watrtest.htm
Source: The American Society of Home Inspectors
Mold Information
The media sounded an alarm, the public heard the horror stories, and now homebuyers worry about the presence of molds in the homes they purchase.
If the high-profile status of molds is relatively recent, the subject of all the concern has been around forever. According to the United States Environmental Protection Agency (EPA), "Molds can be found almost anywhere; they grow on virtually any substance when moisture is present. Outdoors many molds live in the soil and play a key role in the breakdown of leaves, wood and other plant debris."
EPA says molds are here to stay. "There is no practical way to eliminate all mold and mold spores in the indoor environment; the way to control indoor mold growth is to control moisture."
But homebuyers want to know more than this. Unfortunately, just as when the public first became aware of asbestos, radon and problems with E.I.F.S., the body of knowledge about molds in indoor environments is far from complete.
What is known, according to the EPA, is that "molds can trigger asthma episodes in individuals with an allergic reaction to mold." Because of this health factor, it recommends the Center for Disease Control (CDC) as a source of information.
Here is a link to the EPA: A Brief Guide
http://www.epa.gov/mold/moldguide.html
Source: The American Society of Home Inspectors
If the high-profile status of molds is relatively recent, the subject of all the concern has been around forever. According to the United States Environmental Protection Agency (EPA), "Molds can be found almost anywhere; they grow on virtually any substance when moisture is present. Outdoors many molds live in the soil and play a key role in the breakdown of leaves, wood and other plant debris."
EPA says molds are here to stay. "There is no practical way to eliminate all mold and mold spores in the indoor environment; the way to control indoor mold growth is to control moisture."
But homebuyers want to know more than this. Unfortunately, just as when the public first became aware of asbestos, radon and problems with E.I.F.S., the body of knowledge about molds in indoor environments is far from complete.
What is known, according to the EPA, is that "molds can trigger asthma episodes in individuals with an allergic reaction to mold." Because of this health factor, it recommends the Center for Disease Control (CDC) as a source of information.
Here is a link to the EPA: A Brief Guide
http://www.epa.gov/mold/moldguide.html
Source: The American Society of Home Inspectors
Sunday, March 27, 2011
Thursday, March 24, 2011
Appliance Information
-
Appliance Maintenance: Refrigerators
Keep your refrigerator running efficiently and reliably with this simple maintenance routine. Read
-
Appliance Maintenance: Water Heaters
Keep your water heater running efficiently and reliably with this simple maintenance routine. Read
-
Appliance Maintenance: Heating, Venting, and Air Conditioning (HVAC)
Keep your HVAC systems running efficiently and reliably with this simple maintenance routine. Read
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Appliance Maintenance: Clothes Washer & Dryer
Keep your clothes washer and dryer running efficiently and reliably with this simple maintenance routine. Read
Visit houselogic.com for more articles like this.
Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
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