By Renee Porsia
Short sales, loan modifications and foreclosures oh my! Add in a boat load of new mortgage rules, regulations, restrictions and what you have is a lot of confusing information and if a home owner wants to sell their home, they better have a Realtor who is on the ball. Same holds true for home buyers.
It’s not the same real estate market it was two years ago. You can’t put a home up for sale, guess at a price, (high, I might add) expect it to sell and if by chance you do find a buyer willing to pay what you are asking then have it appraise. Oh no, there’s a new sherif in town now and your Realtor better know the rules or you won’t be selling your home or buying your dream home.
Someone has to be able to make heads or tails out of all the new FHA mortgage guidelines, condominium rules and conventional requirements.
I recently had a bank issue a mortgage commitment to their buyer which had a long list of conditions that needed to be cleared but buried in all those conditions was the whopper of all conditions which was the appraisal. Are you kidding me? A commitment from a bank is their commitment to loan the money to their borrower (which also means, all conditions were met and more importantly removed) so how can they issue the commitment to their own borrower when they don’t even know how much the home is worth yet? So, to add insult to injury the appraisal came in too low which means the bank won’t lend the money the borrower needs to purchase the home that they just committed to do. Commitment my aunt Fannie! So, if you had a Realtor who wasn’t on the ball, you might think this sale was dead in the water but if you have a Realtor who is on the ball and knows how to find a solution rather than whine and complain about what happened, the deal can get done. So, I immediately went to work to find properties that recently sold for the price of the home the buyer wants to offer even though the buyer was not my client and I contacted the bank. In essence, I had to do my job, the job of the buyer’s agent and now the job of the appraiser who clearly was unfamiliar with the area.
Now, so you don’t think that I over price my listings, I want you to know that my listing did appraise for what I listed it for but it didn’t appraise for over what I listed it for which is what the buyer offered in order to get money back from my seller to help with their closing costs.
That is just one in a long list of issues facing each and every real estate transaction these days. Realtors will have to work extra hard to ensure their client gets to the settlement table now and consumers should make sure they have a Realtor who will know what to do when faced with a possible deal breaking situation.
If you don’t already have a family Realtor, do your homework now don’t wait until you are ready to sell your home or buy a home. Find a Realtor and don’t let him/her go once you do. It’s hard to find a “good” Realtor these days but very easy to find a “bad” Realtor and that “bad” Realtor could cost you hundreds of thousands of dollars.