Special offer

Business is really picking up. Could it be....?

By
Industry Observer with Responsive Pest Control

Hi all: I've noticed a real upsurge in my business lately. Granted, I work for one of the best and largest lenders in the whole area and I'm starting to gain traction after working my rear off for peanuts for the first 3 years. But here's what I'm noticing recently.

We started the year not knowing what was going to happen after a pretty dismal 2008 for most of us. Then the refi. boom hit and, to date, hasn't let up much. The interesting thing lately has been the purchase market. That, for all practical purposes, crashed around our feet in August 2007 after the failure of American Home Mortgage and the subsequent takeover of Countrywide by Bank of America.

Lately, I've been getting a call/day from a realtor with a potential customer. Granted, I can't help them all but am encouraged by the agents' moxie and attitude these days. I think the purchase market is starting to rebound and that's a great sign. Most of the stuff selling up here (35-40% of the market) is still short sale, foreclosure or bank-owned. But, let's face it. Our customer loves a bargain and there are plenty to be had.

I'm helping a couple with financing on a builder short-sale and the bank who holds the note is in trouble. Plus, the realtor is a crackerjack. This doesn't mean it will happen but I think there's a pretty good chance. I encourage all of you to keep your chin up. Better days are definitely right around the corner. How are you doing in your neck of the woods? I'm curious. Thanks for reading!

Posted by

Paul McFadden

Roy Kelley
Retired - Gaithersburg, MD

Business is picking up but agents need to apply street smarts to get the transactions to settlement. We are seeing lots of appraisal issues that are killing transactions.

Follow me on Twitter: http://twitter.com/roykelley

May 22, 2009 02:33 AM
James Wirth
Everett, WA

Roy -- I'm seeing that as more of an issue these days as well. HVCC, this new appraiser code of conduct isn't helping either; having said that, I encourage you to be more involved with the appraiser upfront. Showing up to an appraisal inspection with comps and market data can really make a difference.

Paul, I appreciate the post. It's really bizarre -- I listen to the news on my way in to the office and it's doom and gloom; but then I sit down at my desk and my phone starts ringing off the hook! And you know what -- there's plenty of financing available. It's like all of this science ficiton stuff about alternate realities and such, is actually happening! --James Wirth

May 22, 2009 02:40 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

James: You're welcome! We have to remember how strong consumer sentiment is.

Roy: That's good to know. Our clients have to pay for the appraisal up front now and I'm hopeful the deal goes through for the customer's (and yours) pocketbook sake! Thanks for commenting!

May 22, 2009 02:47 AM
GLENN LEACH
Mortgage - Puyallup, WA

Lots and lots and lots of first time homebuyers - most looking for some sort of down payment assistance.  Make sure your lender knows what's out there and is qualified to offer it.  I'm swamped with deals that other lenders didn't get because they didn't know all the programs.  Does your lender know them?  If you're a lender, do you know them?

May 22, 2009 04:15 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Glenn: Thanks for weighing in. I appreciate it! I would hope most agents are pre-qualifiying their buyers before driving them around to look at stuff. Regarding your questions, I assume they're rhetorical in nature. Especially since we work for the same company!

May 22, 2009 05:59 AM
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"

It's picking up here, but inventory is really getting low and no one wants to sell..it's going to get ineresting.

May 22, 2009 08:15 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Konnie: We still have a lot of inventory. Again, it could be due to the fact we always get hit last! Thanks for commenting!

May 22, 2009 09:19 AM
Sandy Nelson
Riley Jackson Real Estate Inc. - Olympia, WA
your Olympia area Realtor

Paul,

I'm seeing business picking up as well. I can't wait for the May MLS statistics to see if this is a MLS wide phenomenon.

Sandy

May 23, 2009 03:35 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Sandy: I wish you well. I think closings are up. Granted, they're taking longer due to all kinds of issues. I think we'll see increased statistics for the next several months. Keep your fingers crossed!

May 24, 2009 03:02 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Buyer interest is insane here (a good insane) and over 80% of our market is REO/Short Sale.  It's nice to see it filtering up north :)

May 24, 2009 12:20 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Renee: I'll bet it is! It's probably akin to a feeding frenzy since your market was hit so hard. I'm glad you're doing well; it's been a long, long road back. Good luck to you this year!

May 25, 2009 02:54 AM
Esko Kiuru
Bethesda, MD

Paul,

Good to hear that things are pretty good up there. Las Vegas is still having its troubles. The low end of the market is rather busy with investors snapping up property with cash and first-time buyers picking and choosing on the rest. 70 to 80% of resales are REOs. How you like that?

May 26, 2009 07:35 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Esko: I've heard Vegas is a little nuts right now. Hopefully, the investors will get it right this time! Thanks again!

May 26, 2009 08:39 AM