Fannie Mae’s post-purchase reviews of mortgage loan files have identified issues with appraisals. As a result of those reviews, new policy requirements and clarifications concerning existing lender requirements are being added to a number of appraisal sections of the Selling Guide, including:
Inclusion of interior photographs in the appraisal report B4-1.2-06
• interior photographs, which must, at a minimum, include:
– the kitchen;
– all bathrooms;
– main living area;
– examples of physical deterioration, if present; and
– examples of recent updates, such as restoration, remodeling, and renovation, if present.
The housing bust has made owning a home a lot more affordable -- but in some places, prices are extraordinary; you can buy a nice condo for less than the cost of a new family car.
Some cities have dozens of attractive condominium listings selling for $50,000 or $25,000. There are some selling for less than a new Toyota Corolla. And these are not derelict hovels in crime-ridden communities: These homes are often in move-in condition and located in nice neighborhoods.
"Not to sound like a salesman, but there are some real bargains out there," said Kevin Berman, a broker with Bankers Realty Services in Fort Lauderdale, Fla.
The housing bust has taken down the national median home price by about 23% since 2007, according to the National Association of Realtors (NAR). But condo have fallen even further, down about 25%.
In Sacramento, Calif., condo prices have fallen 59% from what they averaged in 2007, according to NAR. Miami condo prices have plunged 65%, and in Las Vegas they are off 66%.
Prices of individual units are down even more. One condo in Deerfield Beach, Fla., that sold for $115,000 five years ago now lists for $25,000. That's a drop of nearly 80%.
Much of these price drops can be attributed to over development during the boom. Much of that came in Sand State markets such as Las Vegas, Miami and Phoenix, where prices for all properties are have fallen precipitously.
Berman has a one bedroom condo in one of these areas with a listing price of $15,000. He said it needs a little work, and it's in a community that doesn't allow you to rent out the property,, but still, $15,000?
"It's great for a vacation property or a retirement home," he said.
Another of his listings is in North Miami, about three miles from the beach. It's a 900-square foot, one-bedroom, one-and-a-half bath with a community swimming pool, central air and assigned parking that costs just $23,450. That's less than a fully loaded new Camry.
In Las Vegas, there are more than 200 condos listed for $30,000 or less. A two-bedroom, two-bath condo with a covered patio in North Las Vegas can be had for just $30,000.
Of course, condo owners have other expenses, particularly maintaining the grounds and common areas, but these tend to be quite low. And the property taxes are also often modest.
Plus, if these housing markets ever rebound, there's even likely to be some price appreciation for these homes. You can't say that about a new car.
NEW YORK (Reuters) – Foreclosures rose in 3 of every four large U.S. metro areas in this year's first half, likely ruling out sustained home price gains until 2013, real estate data company RealtyTrac said on Thursday.
Unemployment was the main culprit driving foreclosure actions on more than 1.6 million properties, the company said.
"We're not going to see meaningful, sustainable home price appreciation while we're seeing 75 percent of the markets have increases in foreclosures," RealtyTrac senior vice president Rick Sharga said in an interview.
Foreclosure actions -- which include notice of default, scheduled auction and repossession -- in the first half rose in 154 of the 206 metro areas with populations 200,000 or more.
"We're not going to see real price appreciation probably until 2013," said Sharga. "We don't see a double dip in housing but we think it's going to be a long painful recovery for the next three years."
Nine of the 10 areas slammed hardest by the foreclosure tidal wave improved from the first half of 2009, suggesting a peak at rates that are still up to five times the national average, RealtyTrac said in its midyear 2010 metropolitan foreclosure report.
Cities with the 20 highest foreclosure rates were all in Florida, California, Nevada and Arizona.
As long as unemployment hovers near 10 percent and unrelenting foreclosures hang over the market, prices cannot stage a lasting comeback. Home prices are about 29 percent lower, on average, than peaks set four years ago.
"If unemployment remains persistently high and foreclosure prevention efforts only delay the inevitable, then we could continue to see increased foreclosure activity and a corresponding weakness in home prices in many metro areas," RealtyTrac chief executive James J. Saccacio said in a statement.
Home prices rose in May for the second month, still propped up by the crush of demand for homebuyer tax credits that ended April 30, according to Standard & Poor's/Case-Shiller indexes.
But that momentum will not last, economists agree.
Unemployment and wage cuts are chipping away at confidence and could slice average prices as much as 10 percent before a gradual climb resumes, many housing experts predict.
Sharga said the recent nominal price increases suggest that lenders so far have managed the distressed property flow well and buyers are bidding for those houses when they do get listed for sale.
Banks will take over at least a record 1 million mortgages this year, RealtyTrac estimated earlier this month, noting that more than 5 million loans are seriously delinquent and face foreclosure.
More than 3 million households are seen getting at least one foreclosure notice this year, and this record will be surpassed slightly at the peak of next year, RealtryTrac expects.
Las Vegas had the country's highest metro foreclosure rate in the first half of the year, with 6.6 percent of its housing units, or one in 15, getting a filing. The number of properties getting a notice, however, fell 9 percent from the same period last year.
By Lynn Adler
NEW YORK | Wed Jul 14, 2010
(Reuters) - Demand for loans to purchase U.S. homes sunk to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates, the Mortgage Bankers Association said on Wednesday.
Requests for loans to buy homes dropped 3.1 percent in the week ended July 9, after adjusting for the Independence Day holiday, to the lowest level since December 1996, the industry group said.
Refinancing applications fell 2.9 percent, and the mortgage market index that reflects total loan demand also fell 2.9 percent.
Average 30-year mortgage rates edged up 0.01 percentage point to 4.69 percent, but were near the record low of 4.61 percent set in March 2009, based on MBA records dating back to 1990.
Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance.
But high unemployment and foreclosures remain major hurdles, and worries that prices could dip further are also keeping many potential buyers on the sidelines.
The April 30 expiration of homebuyer tax credits has also sapped summer purchasing activity. Buyers had raced to get in under the gun for the tax incentives this spring, and demand for loans to buy homes has fallen in nine out of the 10 weeks since the credit expired.
Refinancings accounted for 78.7 percent of all applications last week, the same as the prior week, the MBA said.
Talk has surfaced of a double-dip in U.S. housing, though most economists doubt a second leg down would be nearly as severe as the first.
"It's sort of a self-fulfilling prophecy, but if there's going to be a double-dip you might as well stay on the sidelines as opposed to coming in to buy," said Taylor Woods, president of Genpact Mortgage Services in Irvine, California, a unit of Genpact Limited (G.N).
"With as much turmoil as there is around loans that need to be modified, short sales, foreclosures -- all of those signs really indicate to buyers and investors that there will be better prices come tomorrow," he said.
Prices have toppled about 30 percent, on average, from their peaks four years ago, according to Standard & Poor's/Case-Shiller indexes. Most estimates are for additional single-digit declines.
"If there's one part of the economy that might suffer some sort of a double-dip it might come out of the housing market," said Cam Albright, economic research director and portfolio manager at Wilmington Trust Investment Management in Wilmington, Delaware.
Housing economists look for the autumn months to tell the story once the ripple effects of the expired tax incentives are in the past.
"There's been an awful lot of demand shifted forward by the first-time homebuyers credit," Albright said. "Once we get into the fall, maybe even sooner, some of that will begin to smooth out."
NEW YORK (Reuters) – Demand for loans to purchase U.S. homes sunk to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates, the Mortgage Bankers Association said on Wednesday.
(Editing by Leslie Adler)
By: Diane Tuman, Zillow Content Manager | June 14, 2010
Another notable home that is on the real estate market (again) is the “Round House” in Wilton, CT and it’s for sale for $1,750,000. The home was listed in 2008 for $2.3 million.
Designed by architect Richard T. Foster, it is a cylindrical masterpiece that sits 12 feet off the ground on its “base” and has the ability to rotate slowly 360 degrees, taking in the nearly four acres of land and a pond. It takes about 50 minutes for the home to complete an entire rotation.
Made of steel, glass and shingles, the 3,000 sq ft home was renovated in 2005 and is completely walled in glass. It features custom ash cabinetry, state-of-the-art Xenon interior lighting, marble and limestone bath finishes, and “Smart House” technology in the main house.” Plus, there is a separate guest house and in-ground lap pool.
WINDERMERE, Fla. – The brochure promises a "monument to unparalleled success."
The 90,000-square-foot home for sale outside Orlando has 23 bathrooms, 13 bedrooms, 10 kitchens and three pools. All that and more for $75 million "as is."
The catch? It's not finished.
Nicknamed "Versailles" by owner and timeshare tycoon David Siegel, the mansion hit the market recently as the largest home for sale in the United States. Construction was halted last year to save money in a recession that proved particularly hard on Siegel's industry.
The home also has a 20-car garage, a bowling alley, an indoor-roller rink, a movie theater, a video arcade, a fitness center, a baseball field and two tennis courts.
But the mansion's interior has no carpet, tile or interior walls.
provided by
We plan to replace our kitchen counters and are interested in using stone. Is granite still a hot choice?
Granite remains the biggest seller, having accounted for 56 percent of kitchen-countertop sales in the past year, according to the NPD Group, a market-research company. Quartz (Caesarstone and Silestone) and laminate (Formica), each with 13 percent of the countertop market, trail granite in popularity, followed closely by solid surfacing (DuPont Corian).
It will be interesting to see whether granite's dominance holds. Consider that about 75 percent of certified kitchen designers specified quartz, according to the National Kitchen & Bath Association's "2010 Kitchen & Bath Style Report," as we recently reported in "What's Cooking in the Kitchen: 7 Trends in Remodeling and Design."Granite earned its spot as the most popular counter courtesy of its good looks and durability. Indeed, in our countertop tests, granite was the only stone that could resist heat, scratches, and, when properly sealed, stains
When it comes to natural stone, marble and limestone also offer aesthetic appeal but have their drawbacks. Marble, more porous than granite, is not as stain or heat resistant and scratches and chips easily. Limestone withstands heat very well, so scorch marks aren't a problem, but this soft, porous material is easily sliced, nicked, and scratched; it also stains easily, even when properly sealed.
When you're shopping for a granite countertop, remember that veining and pattern can vary enormously from slab to slab, so be sure to visit the store or stone yard to find a piece you love. You can save some money by using 3/4-inch-thick stone instead of the typical 11/4-inch-thick material. (Note that our test results are based on a thicker stone.) Granite costs about $45 to $200 per square foot, including installation.
April new home sales shot up 14.8 percent from March and 47.8 percent from a year ago, marking the highest annual pace since May 2008, according to data released by the Commerce Department on May 26.
April’s sales topped March’s revised rate of 439,000 units to a seasonally adjusted annual pace of 504,000 units as buyers took advantage of the federal home buyer tax credit, record-low mortgage rates and falling prices, according to the Commerce Department.
By region, sales in the Midwest surged 31.6 percent in April from the previous month, the West increased 21.7 percent, the South rose 10.8 percent and the Northeast remained steady.
Median new home prices fell to $198,400 in April from March’s upwardly revised figure of $219,600, its weakest annual decline since July 2009, according to a May 27 Hanley Wood Market Intelligence report. That marks a 9.7 percent drop from the previous month and a 9.5 percent drop from a year ago.
New home inventory dropped in April from the previous month on a non-seasonally adjusted basis to 212,000 units, marking 32 consecutive months of declines, Hanley Wood reported. On a seasonally adjusted basis, new home inventory fell to 211,000 units. New home inventory levels are now at levels typically healthy for the housing market. Based on the current sales pace, there is now a 5-month supply of new homes on the market on a seasonally adjusted basis, the lowest level since December 2005.
By: Diane Tuman, Zillow Content Manager | May 19, 2010
Actress Uma Thurman is reportedly selling her Greenwich Village townhouse for $14.2 million and only the fit and energetic should apply as new owners.
Thurman’s townhouse is 25 feet wide and five stories tall — with no elevator in sight. It is now apparent how Uma keeps in such great shape — her home is like a built-in stairmaster!
Located on lower Fifth Avenue in Greenwich Village’s “Gold Coast” (Gothamist explains the gold coast mention), this townhome has 7 bedrooms and 6.5 baths. The “garden level” has a media room, plus guest bedroom with access to the back patio. The first floor has an elegant parlor (photo above), with an oversized bay window at the front and southern exposure in the back. At the back is the kitchen and dining area, which overlooks the south garden. On the entire third floor is the master suite, which contains a sitting area and huge closets. The fourth and fifth floors contain additional bedrooms and a stairway to the rooftop deck.
By: Diane Tuman, Zillow Content Manager | May 11, 2010
Hip-hop producer/rapper Kanye West is selling his Hollywood Hills home for $3,995,000. And, no — that sale price is not a typo, missing an extra digit.
There are a couple of surprises in this listing: #1 is that West, who is #46 on Forbes’ Celebrity 100 list, has a home with a price tag of “only” $4 million; and #2, that the controversial and outspoken rapper has a home with such minimalist tastes. And, therein lies the contradiction of West.
Take a look at the photos of West’s home on this post — they are the work of Italian designer Claudio Silvestrin, whose style is described as “… austere but not extreme, contemporary yet timeless, calming but not ascetic, strong but not intimidating, elegant but not ostentatious, simple but not soulless.” Claudio has a pretty cool website, too.
Built in 2002, the home has 3 bedrooms, 3.5 baths, built-in computers in every room, a theater, and room for a pool. What? No pool?
Bobbi Dempsey, Investopedia.com
You've probably heard it a million times recently: it's a buyer's market right now in real estate. That's actually a big understatement - it's a huge buyer's market. That's bad news for sellers, but good news for you if you're in the market for a new house (and can get financing). While there are attractive deals to be had nationwide, certain areas have a big inventory of affordable homes available now. You can see a full list of such places on HousingTracker.net, but here are some cities our experts have cited as being especially good choices for bargain-minded buyers.
This city has one of the strongest economies in the country right now, according to our experts.
"Good universities in the area have provided a skilled and educated workforce, which has positioned Phoenix as a competitive force in business," says Bill Humphrey, senior vice president and managing director of XONEX Relocation, which provides global relocation services for transferring employees.
Phoenix is projected to see more growth, especially since the technology, green energy and healthcare/life sciences industries have started to put down roots in the area." Humphrey says houses that were selling for $500,000 before the recession are now in the $300,000 range.
"The Houston market has a very diversified economy and is home to numerous industries including technology, energy, aerospace and aviation, logistics and manufacturing," Humphrey says. Humphrey credits Houston's solid employment numbers - and the projected growth - to its business-friendly environment, adding that the city's crime rates have seen double-digit decreases over the past ten years.
"There is lots of inventory available, and prices are still very reasonable."
Needless to say, the Big Easy is in a rebuilding period right now, in the wake of some challenging times. The silver lining: "the city has major growth potential and is on the cusp of a big renaissance," says Humphrey. "The community has really come together to rebuild its infrastructure, pride and spirits, making it a nice place to live. Also, Louisiana has shown the greatest unemployment improvement and New Orleans has the lowest jobless rate of any other metro city in its class."
While Humphrey admits there is still some work to be done, he says the city is headed in the right direction and smart shoppers will buy now. "Prices are low and inventory is available."
"Prices have tumbled dramatically, and there are multiple 'mini-mansions' available at bargain prices," says Robert Eisenstein of HomeRun Homes, which operates the Lease2Buy.com site targeting rent-to-own buyers and sellers.
"Most of the properties are not in need of anything more than a little bit of cosmetic work." Inventory seems to be plentiful in this area. According to HousingTracker, there are currently 87,000 single family homes and condos available in Atlanta.
The central Florida area has always been a hotspot for bargains, says Eisenstein, "but with the recent beating the market has taken, prices are lower than ever. There is a mix of very beautiful homes that don't need any work - and there are also homes that need some renovation, but the prices are reflective of this."
Several experts mentioned the Boston suburbs in general as a good place for great deals, but Haverhill in particular seems to have a lot to offer - no matter what your price range is.
"You can buy a brand new mid-level executive style home in the mid $380,000 to $450,000 range or find a first time buyer move-in condition property at around $170,000," says Lisa Johnson, vice president at Coldwell Banker Residential Brokerage in Haverhill. "Condominiums can be found in the $50,000 to $60,000 range."
Johnson says the area has a lot of great perks, from a thriving bar/club scene to a downtown restaurant district that can rival those of big cities.
"The MLS lists many properties selling for less than $50,000," says Diane Smith, a real estate agent and Lexicon Realty mortgage broker. "In the $100,000 range there are many houses selling for $10,000 to $20,000 under value as a result of foreclosures and other economic issues."
If you're looking for a great deal - and want to explore exciting new areas - focusing on areas with high inventory and low prices can be your ticket to a fantastic bargain on your next home.
http://realestate.yahoo.com/promo/7-cities-with-great-real-estate-deals
Business Columnist
April 30, 2010
One year ago this week a set of sweeping reforms took effect to prevent real estate appraisers from gaming the market with inflated values at the urging of lenders and mortgage brokers.So by now, buyers and sellers should feel sure that the appraisal system is working and won't contribute to another housing crisis, right?I feel about as confident in the reforms as I am that I could sell my house the same day I put it on the market.Don't take my word for it."It's a disaster in many respects," said Frank Gregoire, a 30-year veteran of the appraisal business and former chairman of the Florida Real Estate Appraisal Board who has been a vocal critic of the bad behavior by some appraisers."Borrowers find themselves paying more for an appraisal, and they have a higher likelihood that appraisal is being done by someone with less experience who will spend less time researching the market and actually preparing the report."The biggest complaint about the federal changes known as the Home Valuation Code of Conduct is that it puts too much power in the hands of entities known as appraisal management companies.Because brokers and lenders — who profited handsomely as sales prices escalated — can no longer flip through their Rolodexes and call on a favorite appraiser to go out and evaluate a house, most appraisals now get farmed out to the lowest bidder through these middle-men companies.Talk about solving one problem with another one.These low-bidding appraisers are often less established and may be called in from Ocala to appraise a house in Waterford Lakes. The lack of experience, deficient knowledge about the neighborhood in question and strict requirements by appraisal management companies to turn around reports in just one or two days can contribute to lower quality appraisals.Even worse is that appraisal management companies are unregulated in most states, meaning appraisers who lost their licenses for bad behavior can simply start such a venture and keep the money rolling in.Just last week, Florida lawmakers passed a bill to regulate appraisal management companies, which will for the first time impose some standards, such as preventing people with certain criminal histories or disciplinary records as appraisers from operating them.That law won't take effect until the summer of 2011.And what about all that fraud that was so prevalent during the bubble? There's no indication that it's let up as a result of the federal reforms.A report released last week by the Mortgage Asset Research Institute and Lexis/Nexis said that in 2009 Florida had the highest year-to-year increase in appraisal fraud. The complaints centered on appraisers who intentionally fabricated comparable sales, ignored sales prices on similar properties or incorrectly adjusted the comparable sales of houses with slightly different features than the one being appraised.Complaints of appraisal fraud filed in 2009 jumped 18 percentage points over the number filed in 2008 in Florida. Appraisal complaints increased elsewhere, too, including by 11 points in California and 5 points in New York.The report noted a culture ingrained before the federal changes, in which appraisers were pressured to "make things work" or hit higher price targets."I talk to appraisers every day, and there is plenty of anecdotal evidence that the pressure on appraisers continues," said Gregoire, who is based in St. Petersburg. "Now the pressure has to do with lowering values, just to make sure the values are conservative."For example, in Central Florida where so much of the market is dominated by foreclosures and distressed sales, the buyer, seller and lender could spend months negotiating a short sale only to have an appraisal come in for less than the agreed upon purchase price.That essentially starts the process all over again, compounding the troubles in the market by either keeping prices depressed or halting sales all together. Where's the progress in that?Beth Kassab can be reached at bkassab@orlandosentinel.com or 407-420-5448. Read her blog at OrlandoSentinel.com/thebottomline.
Copyright © 2010, Orlando Sentinel
This was my first time running the Corporate 5k presented by IOA and it was a blast. We had Alex R, Eric, Rachel, Rogi, Juan and Agnes representing Sunbelt Appraisals. The total participants exceeded 12,000.
Check out some pictures from the race below.
12000 people on Central Blvd in Downtown Orlando. Sunbelt Appraisals sponsored some great runners!
Runners & walkers for as far as the eye can see.
My time was 38:20, which is pretty good for a non-runner. The energy from all the runners was a great motivation. Running past St. James Cathedral school was cool. A school I attended 20 years earlier.
The fastest runners gatherer under the winner's tent. We are all winners.
The National Association of Realtors’ pending home sales index jumped 8.2 percent in February to 97.6 from January’s downwardly revised figure of 90.2. The index remains up 17.3 percent from the same period a year ago.
In an April 5 news release, Lawrence Yun, NAR’s chief economist, noted that February’s increase may indicate a second surge in home sales in response to the home buyer tax credit. “The rise in buyer contract activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten,” Yun said in the release. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”
By region, the pending home sales index in the Northeast increased 9 percent to 77.7 in February, up 18.9 percent from a year ago. The Midwest surged 21.8 percent to 97.9, up 18.7 percent from a year ago. The South rose 9.2 percent to 107, up 17.5 percent from a year ago, while the West fell 4.8 percent to 98, but remained up 14.6 percent from a year ago.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year NAR examined as well as the first of five consecutive record years for existing-home sales, according to NAR.
Residents of Flagler County are likely contending with busier highways and more crowded classrooms than they did about 10 years ago. That's because Flagler, like several Florida counties including Sumter County, St. John's County and Lake County, have been magnets for movers over the last decade; here, the balmy climate and a booming housing market drew retirees and families before the bubble burst, according to new population estimates from the U.S. Census Bureau.
Includes:Astatula, Lady Lake
Population, April 2000: 210,509
Population, July 2009: 312,119
Domestic Migration, 2000-2009: 99,084
Domestic Migration, % of Population: 31.7
Includes: St. Augustine, Hastings
Population, April 2000: 123,148
Population, July 2009: 187,436
Domestic Migration, 2000-2009: 59,619
Domestic Migration, % of Population: 31.8
5. Sumter County, Fla.
Includes: Wildwood, The Villages
Population, April 2000: 53,348
Population, July 2009: 77,681
Domestic Migration, 2000-2009: 26,448
Domestic Migration, % of Population: 34.0
Includes: Marineland, Beverly Beach
Population, April 2000: 49,832
Population, July 2009: 91,622
Domestic Migration, 2000-2009: 41,931
Domestic Migration, % of Population: 45.8
Francesca Levy, Forbes.com
Mar 26th, 2010
It's going to be another bad spring for the U.S. housing market-unless you're a buyer.
With prices still falling and more distressed homes hitting the market, many experts are expecting the market to get even worse before it gets better.
There's been some increase in inventory lately, mostly from distressed sales," says Walter Malony, spokesman for the National Association of Realtors. "Buyer's are pretty much in the driver's seat."
Even the Obama administration's new plan to help troubled homeowners, while praised by some economists, won't help the market much right away.
The $14 billion program, announced Friday, will try to stem a rising tide of home foreclosures by giving lenders incentives to erase some mortgage debt and slash mortgage payments for the unemployed. But it will take months before there is any impact, experts say.
"This change by the Obama administration is good news," says Mark Zandi, chief economist at Moodys. "It will help homeowners in a meaningful way. We should see the impact of this by the fall with fewer foreclosures. Housing needs this."
In the meantime, home values are continuing to drop and the amount of distressed property on the market is growing.
"There are still a lot of foreclosures in the pipe line," says Greg McBride, chief economist at Bankrate.com. "They're backed up because of paper work at the banks or moratoriums at the state level. But they are the elephant in room. And who knows what will happen when that inventory hits the market. It will more than likely hurt housing prices even more."
One thing that may help the market this spring: fewer people will be voluntarily putting their homes up for sale. That's partly because prices are still falling-but also because they don't feel they can afford to "trade up" to a bigger house.
"People who might want to sell at this time for a bigger home are worried about their jobs," says Bob Walters, chief economist at QuickenLoans. com. "That's keeping them somewhat in check as to whether they will sell or not."
The April 30 expiration of the first-time homebuyer tax credit is also a factor.
"Buyers took advantage of the $8,000 credit in earlier months and it ate up a lot of the inventory that would be there in spring," Walters says. "That will show up in the weeks ahead with fewer homes on the market than might be."
Concern over the rise in foreclosed and other distressed property remains strong. More homeowners who are "underwater"-or owe more than their home is worth-are expected to just walk away in the coming weeks, leaving more empty homes-and more inventory.
Buyers might be able to get great deals on foreclosed homes, but purchasers are often required to put at least 20 percent down on bank-owned homes-and closings can take up to six months or more due to red tape.
At the same time, a big rise in distressed property could help deflate home prices even further.
Sellers, meanwhile, have learned this spring to lower their expectations when it comes to asking price.
"Since a year ago, (asking) prices are more in line with what will sell and that's good for the market even if sellers wanted to get more money," says Robert Abbott, co-owner VP of Abbott Casert Realtors, a real estate firm in northern New Jersey. "They realize they can't all they expect right now."
Case in point-Jennifer McCoy Bartko and her husband who just put their three bedroom home on the market in Columbus, Ohio, to buy a bigger house so her widowed mother could come live with them.
"We priced our house competitively so that it will sell as quickly as possible," says the 36 year old Bartko, a program assistant at Ohio State University. "We don't expect to get the full asking price ($185,000) but pretty close to it. At this point, we won't be making any real profit off it, but that's OK with us. We want to sell."
But this spring's lower prices are keeping some potential sellers of the market.
"We tried selling our three bedroom home last year at this time but couldn't get our price," says one homeonwer from Morris Township, New Jersey, who fixed the home in order to sell and make a profit. "We are waiting for prices to go up. We really don't want to sell it now."
Angi Stepp
Angi started with a la mode 8 years ago and spent most of those years as a Software Support Technician, but recently took on the role of Product Specialist for our Appraisal Products. Aside from the office, she spends most of her time with her teenage daughter and her 5 year old son.
The professional master’s program in real estate prepares students interested in commercial and residential brokerage and appraisal, development and mortgage brokerage. The curriculum combines a unique business core consisting of finance, accounting and marketing courses with advanced coursework in real estate. Students will earn 30 credit hours during five sessions and will be well-prepared to obtain Florida real estate brokerage and appraisal licenses.
The program is tailored to busy working professionals. Classes will be held on Monday and Wednesday evenings at the EDC. Students will go through the 16-month program as a cohort, taking all courses together.
“The cohort program is beneficial because students not only learn from their professor, they share their experiences with other students as well,” says Thomas L. Keon, dean of the UCF College of Business Administration. “The Central Florida region is a prime spot for commercial and residential real estate development. Graduates from this program will be well-positioned to fill a niche area in this market,” he adds.
An information session on the new program will be held at 6 p.m. Tuesday, March 23 at the EDC, 36 W. Pine St., Orlando. Randy Anderson, the Howard Phillips Eminent Scholar Chair in the Dr. P. Phillips School of Real Estate, will be present to answer questions.
For more information, visit www.bus.ucf.edu/edc, send an e-mail to pmre@bus.ucf.edu, or call 407.UCF.3622.
The Dr. P. Phillips School of Real Estate was established in 2005. Dr. Phillips Inc. committed $2.5 million, which combined with a state matching gift, created a $5 million endowment for the Dr. P. Phillips School of Real Estate. The endowment supports the Howard Phillips Eminent Scholar Chair in Real Estate, the Dr. P. Phillips Institute for Research and Education in Real Estate, and the Dr. P. Phillips scholarship program for real estate students.
With the March 2 launch of its Facebook and Twitter accounts, the Appraisal Institute has entered the realm of social media. Members and others interested in the real estate valuation profession can stay up-to-speed on all the latest news, products and developments from the Appraisal Institute and around the profession by following AI on Facebook and Twitter for daily – and even up-to-the-minute – breaking news.
The Appraisal Institute will utilize Facebook and Twitter in order to keep members and other industry professionals apprised of ‘real-time’ industry developments and to empower them with the information they need to compete successfully in today’s ever-changing market. The Appraisal Institute’s use of social media resources will supplement existing communication vehicles such as Appraiser News Online and is intended to bring a new level of immediacy and responsiveness to AI communications.
To become a Facebook fan, visit the Appraisal Institute fans page at www.facebook.com/pages/Appraisal-Institute/325755437389 . Follow the AI on Twitter by visiting www.twitter.com/AI_National .
Stevens is quoted in National Mortgage Professional Magazine: "I worked for Golden West from 1983 until about 1998. It was a very different program back then because when it started, the loan required a substantial downpayment and there was no secondary financing on those loans. The borrower typically came in with a 25 percent downpayment on those loans. You were dealing with a different sort of clientele. At the institution I worked at, Golden West, all the loans were held in portfolio, so the entire credit risk and interest rate spectrum was held on balance sheets."
"As a manager at World Savings, we rented caravans and loaded them with underwriters and originators, and drove to the properties that had been appraised over the previous month with loan files in hand, to evaluate the quality of loans we were doing. That focus on credit quality that Herb and Marion Sandler instilled in that company over the years is why Golden West was such a darling of Wall Street for decades."
Erick C. Peck of the National Mortgage Professional Magazine asked of Stevens: "Concerning the new appraisal rules coming out of HUD, would you consider permitting a “blind ordering” so that any originator, no matter what channel of origination, can order the appraisal in an effort to accommodate the portability of an appraisal from lender to lender and save the consumer additional expenses?"
Stevens replied: "I do think the blind ordering of appraisals is the one thing that was the strongest piece of the Home Valuation Code of Conduct (HVCC) that everyone universally understands and agrees with … taking away the influence factor in the appraisal ordering is critical. We also believe that portability is important, so controlling the appraisal channel and having it directed is a concern to me because should that loan be turned down and the borrower wants to go somewhere else, do they need that appraisal at the next firm or do they need to pay a new appraisal fee?" "It continues to be an expensive way to complete the transaction. However we get there, I think the idea you presented is the kind of concept that we continue to talk about … how to make the appraisal stay and take away that influence factor, keep it arms-length, but also not make this another setback to the consumer who needs that appraisal and may need an appraisal for a different institution."
Stevens replied: "I do think the blind ordering of appraisals is the one thing that was the strongest piece of the Home Valuation Code of Conduct (HVCC) that everyone universally understands and agrees with … taking away the influence factor in the appraisal ordering is critical. We also believe that portability is important, so controlling the appraisal channel and having it directed is a concern to me because should that loan be turned down and the borrower wants to go somewhere else, do they need that appraisal at the next firm or do they need to pay a new appraisal fee?"
"It continues to be an expensive way to complete the transaction. However we get there, I think the idea you presented is the kind of concept that we continue to talk about … how to make the appraisal stay and take away that influence factor, keep it arms-length, but also not make this another setback to the consumer who needs that appraisal and may need an appraisal for a different institution."
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