Make a Good Life

Market Trend for the first six months of 2009

Price Range    Active Listings    Pending Listings    Sold Listings

$100-200k            274                    172                        258

$200-300k            641                    336                        583

$300-400k            340                    123                        196

$400-500k            155                      25                          60

$500-600k             97                       12                          20

$600-800k             90                         5                          10                    

 

 

The HVCC won't let us be....

Say I have been a real estate agent for five years.  I have spent considerable time and effort in the cultivation of my database of buyers, sellers, and potential clients.  This database is the now and the future of my real estate business. 

Now, say there were a ruling made that mandated that this database of mine could no longer come directly to me to list their homes or to purchase; instead they would be thrown into a pool of clients that was nationwide.  From this pool, an overseeing body would assign them to a real estate agent.  They would be forced to use this assigned real estate agent because...that's just the way it is. 

Say you are an appraiser who has also been carefully cultivating relationships with lenders and banks over the years to ensure a continued flow of business.  Now, say that those lenders and banks were no longer allowed to "choose" you....but that their appraisers would be assigned to them from a nationwide pool of appraisers...like the scenario above.  Without referrals coming in, it would be necessary for you to take a look at this pool business and get on board, or find a new profession.  So you become an appraiser with this pool and agree to work for (lots) less money and you become a part of a rotation, hoping to receive enough random assignments to make the ends meet.  In this scenario you will need to do twice the number of appraisals to make half the money.  Only this is not a scenario this time...this is real, and it is called the Home Valuation Code of Conduct  (HVCC), which can be seen here.

Seems the Attorney General in New York, Mr. Andrew Cuomo, had enough traffic through his office about mortgage fraud, and had entered into a lawsuit about just that thing.  As part of the settlement the parties, as well as Fannie Mae and Fredie Mac would agree to regulation of the appraisal/banking industry in the form of the HVCC. 

OK, I think we all agree that after the money-throwing, "If you can breathe you can get a loan" days, we need some reform here.  I have been told, back in 2006, not to worry about getting value on an appraisal, the appraiser is "in my pocket".  This did happen, and it is a big part of the mess we are in today.

Unfortunately, as with many new regulations, there are problems.  If you have bought or sold a home since May of this year, you have probably dealt with some of the repercussions of HVCC...whether you know it or not.  Light appraisal?  We used to be able to communicate with the appraiser to discuss his/her valuation....no more with HVCC.  NO ONE can communicate with the appraiser.  And the appraiser may not even be local, he/she lacks what we call "geographic confidence".  "Well...I really don't think you have a good idea of the valuation of my home on Totten Inlet with western exposure with the tidelands leased to Taylor for Geoduck production Mr. Appraiser, since you are from Kent." Tough.

And remember when appraisals were $200.?  Say hello to the $500 appraisal, some in the industry have seen them soar to upwards of $700....and from what I understand, the appraiser is only taking about $150. to $200. of that, the remainder goes to the company managing the pool.  So who is really benefiting from HVCC after all....?

Pressure is being put on Fannie Mae and Freddie Mac to repeal HVCC, in the form of petitions, and the issue has received a lot of press.  But even better, two lawmaker on the House Financial Services Committee have introduced HR 3044, which would impose an 18 month moratorium on the measure....buying some time to get it straightened out.

Yes, obviously reform is needed in the mortgage industry, and how.  Maybe this is a start to what will be a very long road.....

See The Whole World Anew Each Day

Carbaryl on the Beach?

A thread from Griffinneighbors.org reads about a truck loan of the chemical substance Carbaryl being readied for the beach....and the concerns related.  Follow this link  to read more about Carbaryl.  I will find out more soon.

National Realtors Open House tomorrow....Open Houses across the country

Tomorrow the National Association of Realtors (NAR) is hosting open houses across the country!  We will be out in force at open houses in all 50 states.  Visit me tomorrow at 2912 Fishtrap Loop.  This home is a nature lover's paradise:  Jump into your canoe and head out right from your own private cove.  See more HERE.  I will be there from 1:00 until 3:00pm Sunday.

 

Happy Monday

As viewed from my back door....he puts his little hands on the glass!

2210 Pearl Beach Open House Tomorrow

Join me tomorrow from 1:00 until 3:00 pm at this fabulous home.  Deeded access to the water, views of the water and Mt. Rainier, old world style and quality abound.....

Click HERE for details and directions to this gorgeous home. 

Money for vacant land....

Olympia Federal has loans for vacant land....one of the VERY few (read: none) lenders willing to loan money on it now.  They are conservative, you will need good credit scores and 20% down.  Call them at 360-754-3400, or email customer service at customerservice@olyfed.com.

New today-Turn key horse property

3840 160th Lane SW

New today and first time on the market....This home is absolutely turn key....and I do not say that often.  It is spotless, inside and out.  This is the package deal...horse property with a great home.  Usually you get one or the other.

Pasture is fenced and cross-fenced, two stall barn with matted stalls, hot fence, pasture rolls and even has wooded, fenced pasture at rear of property...horses LOVE that!

The home is well-designed with a split bedroom rambler plan.  Master has a custom five piece bath, kitchen is open to living area and sports a huge walk in pantry.

All of this on 6.07 acres of bucolic excellence.  Offered at $375,000.  Call me for more information, or click Here to see more photos and details.

Tax credit as down-payment assistance is Washington not dead yet...

I heard from a reputable source in our office meeting that this may not be a dead issue in Washington...that there will be a special session that will address using the tax credit as down-payment assistance.  This is something FHA was not willing to do, offering the $8000. instead for help with payment of closing costs.  See my previous posts....

I will follow up on this and post whatever new information I find.