King5 News: Homeowners using new strategies to sell
It's not exactly a slump, but some of the wind has left the sails of the local real estate market. What used to sell in two weeks is now taking as long as 45 days. That's leading some sellers to employ new strategies.
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http://www.king5.com/localnews/stories/ ... 29452.html
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http://www.king5.com/localnews/stories/ ... 29452.html
Comments
Presumably the same Reba Haas from RCG? She looked a bit like the photo posted there.
Um, isn't that how we got into this mess in the first place?
No silly. It says trustworthy REALTOR, not just any ol' REALTOR. Oh, and btw, there is no "mess". It just a slight buyer's market, just takes a little longer to sell. This isn't the housing crash you're looking for. Move along.
The news reporter ends the segment by saying, "it's illegal to offer cash as an incentive so your best bet is to consult with a trustworthy Realtor."
What's the difference between a seller offering cash and a seller offering to pay a year's worth of homeowner's dues?
In the second example, (HO dues) the seller incentive would be shown on the purchase and sales agreement that the appraiser would likely see. The home still has to appraise. Seller incentives can't be built into the sales price....but they always are.
Is anyone enforcing this yet, or are we still seeing the same kind of corruption from the bubble years? Was the rule ever enforced?
"Excellent employment news and growing wages continue to help strengthen the local real estate economy strangling the "bubble" talk around these parts. We're likely just to stabilize, not start a downward trend."
http://realtytimes.com/rtmcrcond/Washin ... ebeccahaas
She has dropped an earlier claim from March, however:
"As a Seattle real estate agent I get asked all the time by my clients about what's happening in the market and if there is a slow down coming (can you say bubble?). So far there are no signs that this issue is about to hit the Seattle market place like it is in former high flying markets like San Diego."
http://web.archive.org/web/200704280834 ... ebeccahaas
Obviously someone you want to rely upon to forecast the local real estate market...
As far as I know seller incentives have been used for decades. They must be disclosed on the purchase and sales agreement which is given to the appraiser and the lender.
The home still has to appraise. That's the built-in way to catch a home's price that might have incentives pushing up the value.
The appraiser is (suppose to) work for the lender and not the Realtor, seller, buyer, or mortgage broker. The appraiser gives a market value without seller concessions.
The lending industry makes the loan based on the sales price or appraised value, which ever is lower.
The piece of the machine that got mangled during the bubble years is that the appraisers were coerced into hitting the sales price, and were threatened with retaliation if they didn't hit it. Another piece: seller concessions aren't easily found on the MLS. Appraisers needing to know if a comp down the street had a sales price that contained seller concessions has to individually call each agent and ask. Some agents return their calls, some don't. THIS also contributed to artificially inflating prices, IMO.
The appraisers were one of the first groups to be vocal about the industry problems. Not sure if we can call them the canaries, but to their credit, they were VERY LOUD in regulatory meetings about the pressures placed on them to hit those sales prices (including the incentives.)
Now that values are falling (or not seeing double digit appreciation) the appraisers are the first group to, once again, to take the heat from real estate agents and mortgage brokers. You couldn't pay me a million dollars to be an appraiser right now.
You can make a million dollars as an appraiser? Clearly I am in the wrong business. Where do I sign up?
The last time this happened, it was a case of a home being bid up crazy and then the closing costs were stacked on top of the price. My appraiser said NO WAY no how. I did not threaten him--I still work with him and have faith that he appraises based on fair value--not preasure to meet a certain value/price.
Appraisers will be under more scrutiny than before. One of the lenders that I work quite a bit with has been requiring interior photos on all of their appraisals of the kitchen, living and bath (to prevent fraud).