Mortgage Restrictions Eased

Below is a reprint of an article recently featured in my monthly newsletter.

Subsequent to reading this, I asked a lender whom I respect to comment.  His comment was not as positive as I had hoped, as he brought up the fact that with PMI (private mortgage insurance) still being required on loans with less than 20% down, tighter lending restrictions would still apply.

Nevertheless, I share this with you.

_____________________________________________

Source: The National Association of Realtors®; Realtor.com

Existing-home sales slowed in April, partly because restrictive lending practices hampered home buyers. At the same time, a greater number of areas are showing sales gains from a year ago and a recent reversal in mortgage policy means the market is better positioned for a turnaround, according to the National Association of Realtors®.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the good news is that mortgage restrictions have just been eased. "In the past week, Freddie Mac and Fannie Mae announced that they were eliminating their 'declining market policies, effective June 1," he said. "This means consumers across the country will have access to safe, affordable financing with downpayments of only 5 percent on most mortgages, with 100 percent financing available on some loan products, and we could see an upturn in home sales this summer."

Lawrence Yun, NAR chief economist, said eliminating restrictive policies should be a big help to home buyers. "I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant," he said. "Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York."

The unusual mix of market conditions around the country continues, but areas showing healthy price gains include Greenville, S.C., and Springfield, Mo., both with solid local economies. "On the other hand, some markets like San Diego, Calif., and Fort Myers, Fla., are experiencing rising sales after sudden double-digit drops in local home prices, so lower prices and low interest rates are starting to generate results," Yun said.

The national median existing-home price for all housing types was $202,300 in April, which is 8.0 percent below a year ago when the median was $219,900. Because the slowdown in sales from a year ago is greatest in high-cost areas, there is a downward distortion to the national median with relatively more sales in low- and moderate-priced markets.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage slipped to 5.92 percent in April from 5.97 percent in March; the rate was 6.18 percent in April 2007.

Source: The National Association of Realtors®; Realtor.com

This property Sold and Closed yesterday (June 13, 2008)

It took 33 days.

It sold for $320,000.00

This unit was Listed March 13, 2008. It took 33 days for an acceptable offer to come in.  It was shown an average of 1 time a day during that time. There was considerable interest
in this unit. The seller's finally decided to accept an offer lower than usual because the offer came in as cash.

This unit was in the E. Ramapo School District.

There is currently another unit located at 184 Eagle Ridge Way. Originally Listed for $340,000 and reduced to $337,500. It too has an accepted offer, however has not closed as yet, so the price can not be disclosed.

FOR MORE ON THIS POST: GO HERE:

August 2, 2008

Below is a update of my recent article on the importance of properly pricing your Rockland County NY property for sale.   At this writing (8.2.08) the sellers have now reduced their property by $90,000 and the property is STILL sitting there, and we are now in August, one of the slowest market times of the year, plus after that fast approaching the fall market leading up to the winter months (another slower time).  The agent who listed that property so high did a grave disservice to the seller.  This is one of my biggest pet peeves about our industry.  Agents who
knowingly take an overpriced listing just to have inventory.  It's so wrong.

Is your Rockland Listing Overpriced?

Overpriced Rockland County NY listings

June 20, 2008 - An update to the saga below:  The property referenced in the article below STILL HAS NOT SOLD.  It's been almost one month. 

Below is a reprint of my recent article on the importance of properly pricing your
Rockland County NY property for sale.   At this writing (8.2.08) the sellers have
now reduced their property by $90,000 and the property is STILL sitting there, and
we are now in August, one of the slowest market times of the year, plus after that
fast approaching the fall market leading up to the winter months (another slower
time).  The agent who listed that property so high did a grave disservice to the
seller.  This is one of my biggest pet peeves about our industry.  Agents who
knowingly take an overpriced listing just to have inventory.  It's so wrong.

Is your Rockland Listing Overpriced?

Overpriced Rockland County NY listings

June 20, 2008 - An update to the saga below:  The property referenced in the article below
STILL HAS NOT SOLD.  It's been almost one month. 

DO NOT OVERPRICE YOUR LISTING if you really want to sell within 60 days, or you will sit there.

That's the truth.

SOAPBOX MOMENTS !

Last week I met with a local resident who wanted to sell his Rockland home. 
As usual, I did a very thorough "Market Trend" Market Analysis.  These
competitive market analyses take 4-6 hours to prepare and leave absolutely
no doubt in the mind of the analyst (that would be me) exactly what the chances
are of the seller's ability to sell a commodity that is in great supply right now. 
 I can predict quite accurately how much time, and within a few thousand dollars the expected
price point at which the property will sell.  There is an old saying . . .

Facts and Figures don't lie, but "people do".  "Overpricing a listing is good for nobody,"
agrees Rick Landuyt, e-PRO®, an associate broker at Coldwell Banker Schweitzer Real Estate
in Troy, Mich. I whole heartedly agree with this mindset.  This is why I always come prepared
when I meet with a potential client and SHOW THEM what exactly is happening in the Rockland
Real Estate market.  Unfortunately, this poor seller did not listen to my advice . . . he called in
another realtor, who no doubt puffed him up with whatever drivel sounded good to this naive seller.  So .... the seller  "drank the kool-aid" and bought the big lie that "oh your property will sell very high because _________" blah blah blah.

Why would a broker take an overpriced listing anyway?

Mr. and Mrs. homeowner let me tell you a big secret that most real estate brokers
won't tell you.  The reason that they will take an overpriced listing, knowing full well
that they don't' have a snowballs chance in hell of selling it
anywhere near the price they listed it for follows. 

You see, when the calls come in on that overpriced gorilla,  
the caller will exclaim "what are you crazy"... I don't even want
to see that house.  And all of a sudden that "realtor" will inform the
caller that they do have other properties that are available in the
price range they want to see.  

BINGO!  You, Mr. Overpriced Listing Seller person have just been used.  But you didn't even
know it.  This scenario will play out over and over and over.  Within a few weeks you WILL
begin to realize that you were lied to. But now its too late because you signed a 6 month
(or more) listing.  They waxed eloquent about their marketing expertise and their database,
and their thousands of agents, but here your house sits ... lonely and waiting for some poor
slob to come see it, let alone make an offer on it.

So . . . there you have it Mr. Overpriced Listing Seller .... this is why a realtor (who in my
opinion is not even a realtor) would take an overpriced listing.  I'm sick to death of the
unprofessionalism I see day by day around me.

I can tell you Mr. Seller what you want to hear (wow your house is worth gold,
when in my heart I know its not) or I can tell you the truth. 

The TRUTH is that there is a glut of inventory in the Rockland Real Estate market.  Why in
the world would a qualified buyer prance through an overpriced listing when there are countless
well priced properties begging for offers? 

In case you're thinking/wondering if the realtor "thinks" so highly of your property that you'll
certainly have the chance to get more...think again . . . Even "if" a buyer did come through
and offered you your inflated price, 97% of these properties are financed through a bank. 
Guess what Mr. Overpriced Listing Person .... you now have to get through the arduous task
of the appraisal.  The appraisers will use the very same criteria and statistics for their analysis
as I do.  At some point, you will hear the truth, but now it may be too late, for your once
enthusiastic buyer will walk away.  This is the stuff that real estate horror stories are made of,
and our market is rife with them.

So ... I think/hope you get my point.  PLEASE if you are serious about selling your investment,
PLEASE do business with someone who will tell you the truth and support that truth with
facts and figures. 

Don't think I'm not tempted Mr. Seller to do what my competitors do . . . I'm human too. 
I have bills to pay too . . .but I have something more important to maintain and that is INTEGRITY. 
I can put my head on the pillow every single night knowing that I've dealt honestly and in truth. 
And one final thought so you don't think I'm being too frank . . . none of this is really your fault,
Mr. Overpriced Listing Property Person . . . why ???

YOU'VE BEEN LIED TO.  You didn't know any different, because after all . . the realtor said
it was so, and you believed them.

Oh...ps.  I get asked quite often "how many listings do you have" . . . My answer is this.  It's not
how many listings do I have....how many do I not have?  How many of my listings have sold. 
My answer is just about every single one.  There are a couple of exceptions to that ... those small exceptions, in each case are because the seller did not listen to pricing advice supported by facts
and figures readily available to all.  In the case mentioned above, the seller rewarded my honesty
with choosing a realtor who lied to him.  I, (like many sellers and agents gone before me) have had to learn to hard way . . . overpriced listings are a total waste of time, energy and money. 

and p.s.s. - I must hasten to add that not all realtors conduct their business this way.  The
professional agents will, of course, layout the truth for their clients.  Common sense tells us that
business will not thrive in an environment of deception, and referrals will be nonexistent.

Angela Fish Chan
Broker/Owner, Rockland County Real Estate

This property Sold and Closed yesterday (June 13, 2008)
It took 33 days.

It sold for $320,000.00

This unit was Listed March 13, 2008. It took 33 days for an acceptable offer to come in.
It was shown an average of 1 time a day during that time. There was considerable interest
in this unit. The seller's finally decided to accept an offer lower than usual because the offer
came in as cash.

This unit was in the E. Ramapo School District.

There is currently another unit located at 184 Eagle Ridge Way. Originally Listed for $340,000 and reduced to $337,500. It too has an accepted offer, however has not closed as yet.

Check back for further information. I'll keep you posted.

Below is a quck view of currently activity in Eagle Ridge in The Hamlets.

Condos for Sale in Eagle Ridge, Nanuet New York $334,000



Eagle Ridge Beauty!

This is a very popular unit in Eagle Ridge in The Hamlets. Another unit with the same floor plan was listed and sold by us within one week. This seller is asking $334,000. Its very hot right now, so if you have any interest at all, hurry!

Snazzy! Pristine. Mint, Move-In Condition! Come and See what they have done. Baths entirely refurbished. Stainless Appliances. Shows like a dream.

Tons of Extra Parking. Unit is tucked into a cul-de-sac. Walk to pools/tennis.

Click below for further information:
Condos for Sale in Eagle Ridge, Nanuet New York $334,000