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Top Things A Listing Agent Won't Tell Sellers, (But Really Should...)

September 11th, 2009 11:44 AM

Top Things A Listing Agent
Won't Tell Sellers, (But Really Should...)

Carl Medford, Agent in Fremont, CA

We've all been there. Sometimes you just want to tell your clients what you really think, but common sense and manners stop you dead in your tracks. Carl Medford, an agent in Fremont, CA talks to a lot of Realtors. Here are some of Medford's top things listing agents want to say, but don't. "And, I didn't make ANY of this up," states Medford.

"I know it's hard to believe, but as professional Realtors, we actually do know more about selling your house than you do." You might be an engineer, doctor, lawyer or tribal chieftain ... but as a licensed, highly trained full-time Realtor, we do this all day long every day. We'd never presume to tell you how to do your job, and we really don't like it when you presume to know more about selling houses than we do.

"You have a nice house, but it's not anything really special." As Realtors, we see hundreds and hundreds of homes every year and trust me, yours is ... ok. There is absolutely no reason it should be priced higher than other comparable homes in the area. In fact, it should actually be priced a bit LESS to sell.

"Your upgrades don't deserve the extra amount you want added to the price." We're glad you've added crown molding everywhere, and paid for Ralph Lauren suede paint, and new carpet. Your new toilet seats are great. However, none of your upgrades add a single penny's value to your home. In this economy, new windows, and nice flooring should be considered standard. Buyers today demand designer kitchens with custom cherry cabinets, recessed halogen lighting, new upscale appliances, solid granite counters, upgraded baths with Jacuzzi tubs and more.

"I know what you think your house is worth." Now get real! The seller doesn't set the price, the market does. And the simple truth is that lower priced homes sell while higher priced homes sit and sit and sit.

"We have some issues with your decorating" The CalTrans orange room has to be repainted, and the lime green one too. While you are at it, get the midnight blue room as well. Whatever were you thinking? Did you scrounge through the "oops" bin at Home Depot for leftover paint?

"What is that smell?" Whatever it is... it's gotta go. Please don't cook with curry until you are in your new home. Or, fry fish right before people come to see your home. Or, smoke cigarettes, especially those funny hand-rolled ones.

We phoned and confirmed our 11:00 a.m. appointment, rang your doorbell, knocked very loudly, and announced ourselves as we entered your home." So, please get out of bed before we get to your bedroom. Put some clothes on when you do!

"We're worth our commission, every penny of it." Selling a house is actually hard work. And, for those of us who market extensively, it costs a lot of money that we pay out of pocket up front. You really do get what you pay for.

Link: Top Things

Posted by Customer Service on September 11th, 2009 11:44 AMPost a Comment (0)

Deadline looms for first-time homebuyers

September 17th, 2009 5:20 PM

Deadline looms for first-time homebuyers

St. Louis, MO - First-time homebuyers are entering the final days before the $8,000 Federal Tax Credit deadline expires at the end of the day on November 30, 2009.

That deadline is 74 days away or just a short ten and a half weeks for those buyers to complete a home buying transaction that typically takes anywhere from 30 to 45 days to close. And that's only if there are no problems.

You'll want to add an extra two week cushion to that schedule "in case problems pop up, whether it be issues with the title, the quality of the house, the seller accepting your offer or even credit issues with the borrower that must be resolved before the transaction proceeds," states Ken Wiseman, broker-owner Reno Rancho Realty Broker.

On top of the normal delays that can occur, new regulatory guidelines that became effective July 30, 2009 specify mandatory wait times before a mortgage loan can close. The Mortgage Disclosure Improvement Act (MDIA) requires that the earliest a borrower can close is on the eighth day after initial loan disclosures have been issued.

Changes in the APR (Annual Percentage Rate) outside of allowed tolerances or loan terms or fees that change during the processing of a mortgage will automatically trigger a new Truth-In-Lending (TIL) disclosure. An additional three day wait will ensue.

"We see a perfect storm brewing," states H. John Frank, Jr., President of Paramount Mortgage in St. Louis, Missouri, "where these first-time homebuyers who've been sitting on the fence undecided about whether or not to purchase a home suddenly realize in a panic that there may not be enough time to close on their dream home to meet the deadline. They'll be faced with different sets of time constraints throughout the home purchasing process that must be followed."

"The entire real estate industry including Realtors, appraisers, title companies and lenders could be faced with an unprecedented demand to push last minute deals through the system," continued Frank, Jr. "For those who hold a glimmer of hope that the Congress will extend the deadline, they should look again at the 'Cash for Clunkers' program. It was a very popular and successful stimulus program, but expensive and ultimately was not renewed."

A New York Times article published Wednesday claims "As many as 40 percent of all home buyers this year will qualify for the credit. It is on track to cost the government $15 billion, more than twice the amount that was projected in February."

First-time homebuyers under the greatest pressure to complete their home buying transaction are ones depending upon the Missouri Housing Development Commission's (MHDC) Tax Credit Advanced Loan (TCAL) program. MHDC's TCAL provides an interest-free loan up to $6,750 for their down payment.

Don Brinker, Homeownership Manager with MHDC, expects to cut off application submissions on or around October 15, 2009 in order to process the anticipated backlog of files before the deadline. This action will in effect end the popular MHDC TCAL program.

Link: Deadline Looms

Posted by Customer Service on September 17th, 2009 5:20 PMPost a Comment (0)

Mortgage Bankers Association proposes replacing Fannie, Freddie

September 9th, 2009 11:09 AM

Mortgage Bankers Association proposes replacing Fannie, Freddie

The Mortgage Bankers Association (MBA), a leading industry group wants Fannie Mae and Freddie Mac replaced with private companies that would be able to issue mortgage bonds formally backed by the federal government.

In their proposal released Wednesday, the MBA offers a detailed plan for how to restructure the entire U.S. mortgage market.

The Obama administration is scheduled to announce its plans for the two companies early next year. It has listed several options, including merging them into a federal agency, shutting them down, or have their bad mortgage assets split into a new government-backed company.

Fannie Mae and Freddie Mac own or guarantee about $5.4 trillion in mortgage debt and have needed about $96 billion in federal aid since they were seized by federal regulators last fall.

The mortgage bankers' plan would replace Fannie and Freddie with several federally regulated private companies known as Mortgage Credit Guarantor Entities (nicknamed "McGees"). They would buy loans and sell them as bonds with their own guarantee attached, and would pay the government a fee for its backing.

For investor confidence to return to the market for mortgage-backed securities, "there has to be an explicit government backstop," said John Courson, the MBA president.

Fannie and Freddie could be restructured into the new companies, but they would have to shed their bad mortgage assets first, possibly in the form of a government-owned "bad bank." Major banks like Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co., could also take up this role, provided they create separate subsidiaries to do so.

While Fannie and Freddie made massive bets on mortgages and associated derivatives, their replacements would only be able to have a minimal investment portfolio, according to the mortgage bankers' plan.

Fannie and Freddie in the past had powerful lobbying operations, but are no longer allowed to lobby the government. That opens up the debate to more far-reaching reforms, and is an opportunity for Fannie and Freddie's rivals to pick up business.

"It's an opportunity to take a blank sheet of paper and create a system that will avoid some of the issues that we've had in the past years," Courson said.

Jaret Seiberg, an analyst at Washington Research Group, said in a research note that the "odds are high for enactment" for the Mortgage Bankers Association's proposal or something similar, partly because formal government backing for mortgage securities should keep mortgage rates low.

Link: Fannie and Freddie

Posted by Customer Service on September 9th, 2009 11:09 AMPost a Comment (0)