After several bad experiences, I'm questioning if this is normal, or is it just our market?

First example:

A buyer was using Bank of America, had a prequal.  The contract was written on a property, with a 17 day loan contingency removal. (which we knew was tight to begin with)  B of A never even ordered the appraisal in the 17 days!  When asked, they said, they didn't realize there was a loan contingency on the contract.  (Did they not read the contract?)  They could not do an actual appriasal for another 7 days.  I advised the buyer to double app with a local broker lender.  We're due to close on Friday with the new local lender.  Guess what?  The buyers STILL have not heard anything back from B of A regarding the other application.

Second Example:

Buyers are using Wells Fargo.  For the past two weeks, we've been told DAILY from the loan officer, "Docs are due out today."  Of course the day ends, and no docs.  We have had to reschedule the moving van now 4 times because we still haven't gotten docs out of Wells Fargo.  Their excuse? "We're really busy and short staffed."  Well, you're 17 days past the contract date.... does that mean anything to them?  We had to esculate this up to a manger's level.  And we're still told we have to wait 24 hours for a response.  Had I had the foresight 2 weeks ago, I would have also insisted that the buyer double app with a local broker.  At this point, I think I may still require that, and chances are, we'll close before Wells Fargo can get loan docs out.

These are only two examples of what is going on whenever these two banks are involved with transactions lately.  So my question is, does ANYONE have success with these?  And what is the incentive for even using these banks anymore? I"m tempted to require all buyers to double app with a local lender if they have a prequalification with Bank of America or Wells Fargo.  What ever happened to customer service?

Open to comments

Just Listed:  Stunning Architectural Home in Palm Desert

After dealing for months and months with some short sale deals (two over 8 months now with B of A), I've made a business decision to no longer work with them.  Fortunately I am too busy with other deals to take the time and effort to deal with short sale transactions, with the risk of only 10% of them actually coming together.  I've used supposed expert "short sale experts" to help with the transactions and quite frankly, haven't seen them any more successful then when I handle them myself.

I just turned down clients again that want to focus on buying just short sale properties.  It feels wierd to do that, but I think in the long run, I'm doing the right thing for my busiess.  I feel it is a better use of my time to focus on other trasactions that have a much better likelihood of coming together. 

 Anyone else feel this way?

Albert Frey, who's probably most noted in Palm Springs for the design of the Tramway Gas Station, (shown in the poster below) will be getting a star on Palm Springs Walk of Fame.  The unveiling will be on Feb. 12th, at 2:00, another event tied in with Modernism Week (www.Modernismweek.com) celebrating the art and architecture from the mid-century era.  Frey has done many other mid-century homes located in the Palm Springs area.

If you're in town, hope to see you there!

Palm Springs will be hosting the annual Modernism Week starting on Friday. 

Over 10,000 architecture aficionados will be flocking to Palm Springs for the annual Modernism Week to discover the largest collection of mid-century modern architecture in the country. The 10-day event is scheduled for February 12-21, 2010, featuring more than 40 events including architectural tours, films, book signings, and film screenings, as well as chic galas and tours of mid-century modern homes. A vintage car and Airstream trailer show are new events this year.

http://palmspringsrealestatenews.com/palm-springs-is-a-mecca-for-mid-century-modern-architecture/

I will be sponsoring a booth at the Modernism Show on Saturday and Sunday and handing out FREE Mid-Century Neighborhood Maps to those that stop by. 

 Another great opportunity, will be a chance to party at the famous Elrod house designed by Lautner (used to film one of the James Bond movies)  One of the most iconic Palm Springs homes.

Hope to see you there!
 

This weekend, I'm proud to be a sponsor of Wexler Weekend, celebrating the life and work of Donald Wexler, FAIA.  Tickets are still available for the event http://www.paulkaplanrealtor.com/WexlerWeekend.php

The tribute to Wexler, sponsored by the Palm Springs Preservation Foundation, will kick off on Friday, Jan. 22, with a 7:30 p.m. screening of the film "Journeyman Architect: The Life and Work of Donald Wexler." A special question and answer session with the famed architect will follow.

The festivities continue on Saturday, Jan 23, Don Wexler's 84th birthday, with a 9 a.m. champagne jazz brunch at Leon's Bar & Grill at the Wexler-designed Indian Canyons Golf Resort. In addition, City Council member Ginny Foat will honor Wexler with a special proclamation -- and the Palm Springs Preservation Foundation will present a $1,000 check to the Palm Springs High School Jazz Band. Other Saturday activities will include tours of Wexler-designed celebrity homes and a 6 p.m. fundraiser at the Wexler-designed Leff-Florsheim House.

The weekend will wrap up on Sunday, Jan. 24 with "Steel Some Time" from 10 a.m. to noon, at several of the famous Wexler steel homes which will be open for viewing in the Racquet Club estates neighborhood. Following the tour, author Patrick McGrew will be available for a special 3 p.m. book signing of the Palm Springs Preservation Foundation's forthcoming book "Donald Wexler: Architect" at Just Fabulous, 515 N. Palm Canyon Drive. For more information, visit www.pspreservationfoundation.org.

One of the homes on the home tour is a new listing I have:  www.3666CaminoRojos.com.  It will be open from 11 to 4 on Saturday, the 23rd.  Hope to see you there!

The City of Palm Springs Bureau of Tourism launched a new webiste, www.VisitPalmSprings.com

Visitors to www.VisitPalmSprings.com  will now have the ability to search for different types of lodging, search activities by interest level, search events, and more.  The site also will feature mapping, video and photos.  The site features shopping, hotels, things to do, upcoming events, including www.ModernismWeek.com as well as a newsletter.  Great job!

 I'm proud to be sponsoring the Palm Springs Preservation Foundation (PSPF) and Wexler Weekend, a three-day event in Palm Springs that will  honor renowned modernist architect Donald A. Wexler. The weekend will kick-off on Friday, January 22nd with Design OnScreen's film Journeyman Architect: The Life and Work of Donald Wexler. Saturday the 23rd (which is also Don Wexler's 84th birthday) will include a five-hour house tour and an evening fundraiser at the Wexler-designed Leff/Florsheim House (1957).

Wexler Weekend will continue on Sunday the 24th with an event at the Wexler Steel Development Houses in the Racquet Club Estates neighborhood.

 A 40-page tribute journal chronicling Wexler's career will be released in conjunction with Wexler Weekend. The journal will be authored by Patrick McGrew, an architect who has written extensively about California's historic architecture. McGrew will draw upon extensive personal interviews with Wexler and will have full access to the architect's archives and photos. PSPF has engaged Wexler's son, graphic artist Gary Wexler, to do the layout and design of the journal.

For more information, click http://www.paulkaplanrealtor.com/WexlerWeekend.php

Hope to see you there!
Paul Kaplan

760-285-8559

www.MidCenturyModernPS.com

At the height of the market in 2005, 2006, many investors were buying up properties and then quickly reselling them, making a hefty profit in the process. Values were increasing so rapicly, I remember some properties valued at $50,000 more then the selling price, by the time escrow closed!!  This "flipping" practice stopped once the market begain to fall, resulting in a surge in foreclosures and tighter lending practices.  Many investors that bought towards the end of the boom, got stuck with properties that quickly decreased in value. 

In the WSJ article, flippers are starting to see a comeback.  Investors are picking up deals at public foreclosure auctions in greater numbers, recently.  They in turn, resell the properties at a profit.  While in the previous market, investors were making purchases with attractive loan programs often requiring 0 down payment, today's investors have to pay cash due to strict lender requirements. 

Even though this is a growing trend, the article explains that this is not for the weak or inexperienced investor.  Often buyers purchase properties sight unseen. 

"Sometimes "you have half an hour to make a half-million-dollar decision," says Damon Lines, an executive at PostedProperties.com, a Phoenix firm that provides information to foreclosure investors and bids on their behalf. "That's something most people can't or aren't willing to do.""

Its rare that investors are buying properties at reduced prices, and renovating them at much higher prices.  Although this still happens occassionally, its not a rampant as it was in the real estate boom.

Although we haven't seen a lot of this practice in the Palm Springs market, it is starting to occur.  Recently a buyer bought a mid-century Alexander home at auction for less then $200,000.  Without doing any repairs or changes to the property, it was relisted and sold for approximately $270,000, with multiple offers pushing the price up beyond the asking price, resulting in a quick profit for the investor. 

To read the full article, check out http://online.wsj.com/article/SB126022588878780861.html?mod=WSJ_hps_MIDDLEThirdNews